THE PRIME MINISTER
Decision No. 168/QD-TTg dated February 7, 2017 of the Prime Minister on approving the project for restructuring the electricity sector in the 2016 – 2020 period with the orientation to 2025
Pursuant to the Law on Government organization dated June 19, 2015;
Pursuant to Law on Electricity dated December 3, 2004; Law on amendments to the Law on Electricity dated November 20, 2012;
Pursuant to Decision No. 63/2013/QD-TTg dated November 8, 2013 of the Prime Minister on road map, conditions, and structure of electricity sector for formulation and development of electricity market levels in Vietnam;
Pursuant to Decision No. 2146/QD-TTg dated December 1, 2014 of the Prime Minister on approval for Project for restructuring the industry and trade sector to serve national industrialization, modernization and sustainable development until 2020, with a vision to 2030;
At the request of the Minister of Industry and Trade,
Article 1. To approve the Project for restructuring of electricity sector in the period of 2016 – 2020 with an orientation to 2025, in particular:
1. Enhance effectiveness in business of the electricity sector associated with continuation of its restructuring in line with market mechanism, and strengthen the transparency, equality, and fair competition in the international integration background.
2. Establish the organizational structure of the electricity sector in such a manner as to facilitate the operation of wholesale electricity market in conformity with development orientations of retail electricity market.
3. Improve the effectiveness of the electricity regulation for the purpose of ensuring the sustainable electricity system and meeting requirements for providing electricity safely, stably, and efficiently.
4. Apply electricity prices in line with market mechanism under the state’s management and electricity market levels.
II. RESTRUCTURING OF ELECTRICITY SECTOR IN THE PERIOD OF 2016 - 2020
1. From 2016 to 2018
a) Generation stage
- Equitize Power Generation Corporations affiliated to Vietnam Electricity (EVN), Vietnam National Oil and Gas Group (PVN), Vietnam National Coal and Mineral Industries Group (Vinacomin) in accordance with the plan that has been approved by the Prime Minister. The Power Generation Corporations shall keep being affiliated to the Groups and have at least 51% of their shares held by the Groups.
- The Power Generation Corporations shall, after the equitization, carry out new projects for power sources as specified in the Planning for development of national electricity in the period of 2011 – 2020 with a vision to 2030 that has been approved by the Prime Minister.
- The Power Generation Corporations shall formulate and implement projects for enhancing the enterprise administration, ensuring the high competitive capacity, profitable operation, and increasing the ratio of equity for development investment upon the request of domestic and international financial institutions.
- Encourage plants using renewable energy that meet given requirements to participate directly in the pilot wholesale electricity market.
b) Transmission stage
Maintain the structure model of National Power Transmission Corporation in the form of single-member limited liability company of which the whole charter capital is held by EVN.
c) Distribution – retailing stage
- Maintain the structure model of Power Corporations in the form of single-member limited liability company of which the whole charter capital is held by EVN.
- Formulate a regulatory mechanism between Power Corporations that meet requirements of wholesale electricity market.
- Gradually separate the costs of distribution and retailing incurred by Power Corporations.
d) Electricity market and electricity system operation stage
- National Load Dispatch Center shall keep performing the function of electricity market and electricity system operation.
- Formulate a project for converting the National Load Dispatch Center into an electricity market and electricity system operation single-member limited liability company which is eligible for independent accounting in EVN.
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