Official transfer of the National Power System Control Center from EVN to the Ministry of Industry and Trade

Specifically, approving the policy of transferring the right to represent the state capital ownership at the National Electricity System and Electricity Market Operation Company Limited (NSMO) from the State Capital Management Committee at Enterprises to the Ministry of Industry and Trade after completing the separation and establishment of NSMO in accordance with the law and Decision No. 752/QD-TTg dated August 1, 2024 of the Prime Minister.

Regarding implementation, the Government requests relevant ministries, agencies, localities and enterprises to, based on their functions, tasks and authority, be responsible for organizing the implementation of this Decision in accordance with legal provisions, including:

The State Capital Management Committee at Enterprises and the Ministry of Industry and Trade are responsible for the content of the report and proposal; decide and implement the transfer of the right to represent the State capital owner at NSMO from the State Capital Management Committee at Enterprises to the Ministry of Industry and Trade in accordance with the provisions of law immediately after completing the separation and establishment according to Decision No. 752/QD-TTg dated August 1, 2024 of the Prime Minister .

The Ministry of Industry and Trade is primarily responsible for preparing all necessary conditions to receive the NSMO, including a mechanism to ensure working capital for the NSMO in accordance with legal regulations, ensuring that the NSMO continues to operate stably, continuously and effectively after the transfer. Preside over and coordinate with relevant ministries and branches to issue, within their authority, or submit to competent authorities for issuance, legal documents serving the operation of the NSMO, ensuring that the NSMO operates stably, continuously and effectively.

NSMO Company proactively researches, proposes, and forecasts difficulties and problems during operations, has specific proposals, and clearly states the authority to amend, supplement, and issue new legal documents and related instructions to serve the effective and safe operation of the power system.

The Ministry of Finance provides comments on the financial management regulations of NSMO as well as other relevant regulations.

The Ministries of Industry and Trade, Planning and Investment, and Finance, according to their functions, tasks, and authority, shall consider and handle according to their authority or propose and submit to competent authorities mechanisms to support investment capital arrangement for NSMOs, supplement charter capital for NSMOs, guarantee or support loan mechanisms for projects implemented by NSMOs, mechanisms for NSMOs to access low-interest loans, grace periods, and long-term principal repayment in accordance with the provisions of law; in case of arising problems beyond their authority, promptly propose and report to the Prime Minister, ensuring that NSMOs operate stably, continuously, and effectively, and perform assigned tasks.

The Ministry of Labor, War Invalids and Social Affairs shall coordinate with the representative agency of the NSMO owner to determine the salary of employees and managers of NSMO according to the salary mechanism prescribed for LLCs with 100% charter capital held by the State in accordance with the specific characteristics of operations, ensuring the salary and income of employees and managers of NSMOs, in which NSMOs are temporarily ranked as Grade I to serve as the basis for salary classification for managers until the Government issues a Decree on labor management, salary, remuneration, and bonuses for state-owned enterprises in the spirit of Resolution No. 27-NQ/TW dated May 21, 2018 of the 7th Conference of the 12th Central Executive Committee on reforming salary policies for cadres, civil servants, public employees, armed forces and employees in enterprises.

Relevant ministries, branches, agencies and localities, according to their assigned functions and tasks, authority and legal regulations, shall handle difficulties and recommendations of the Ministry of Industry and Trade and NSMO during their operations.

The People's Committees of Hanoi, Ho Chi Minh City, and Da Nang consider allocating land funds to build independent headquarters of NSMO and regional power system dispatch centers according to regulations to ensure stable, long-term and secure operations for the national power system dispatch and electricity market transaction management.

The Chairman of the State Capital Management Committee at Enterprises, the Ministry of Industry and Trade, the Enterprise Manager of NSMO, the Chairman of the People's Committee of provinces and centrally-run cities, and the Ministers, heads of ministries, agencies, organizations and individuals concerned are responsible for implementation.

* Previously, the Prime Minister also issued Decision No. 752/QD-TTg on separating the National Power System Dispatch Center (A0) from Vietnam Electricity Group (EVN) and the policy of establishing the National Power System and Electricity Market Operation Company Limited under the State Capital Management Committee at Enterprises.

Accordingly, a new enterprise was established under the name of National Electricity System and Market Operation One Member Limited Liability Company (NSMO). NSMO is a state-owned enterprise in which the State holds 100% of the charter capital, organized under the model of a single-member limited liability company (LLC) with the State Capital Management Committee at Enterprises as the representative agency of the owner. The head office address is at 11 Cua Bac Street, Truc Bach Ward, Ba Dinh District, Hanoi City.

The deadline for separating A0 from EVN is within a maximum of 7 days from August 1, 2024.

NSMO will perform the task of being the national power system dispatching unit, operating electricity market transactions according to the provisions of the Electricity Law and related laws, including the following tasks:

Establish a method for commanding and operating the national power system with the goal of safety, stability, and reliability; operate electricity market transactions to ensure fairness and transparency; contribute to ensuring the goal of providing safe, stable, and continuous electricity for economic, political, social, security, and defense activities.

Investing, managing, operating, maintaining and servicing specialized information technology telecommunications system infrastructure serving power system operations, conducting electricity market transactions and renewable energy.

NSMO ensures sustainable and effective operations; optimizes costs, manages and uses state capital and assets invested at NSMO effectively and in accordance with regulations; and performs other tasks as prescribed by law.

The charter capital of NSMO at the time of establishment was VND 776,000,000,000. The additional charter capital and the source of additional charter capital for NSMO during its operation will be determined by the owner's representative agency based on the provisions of the Law on Management and Use of State Capital Invested in Production and Business at Enterprises and other relevant legal provisions, based on reviewing the actual progress of NSMO's investment projects.

NSMO receives the current status of A0's workforce from EVN at the time this Decision takes effect, including receiving the current status of A0's management apparatus (continuing to arrange A0's leadership and management staff into corresponding leadership positions of NSMO).

Regarding the method, the assets, rights and obligations of EVN that are currently being managed and implemented by A0 will be separated and transferred to NSMO according to regulations. At the same time, the value of assets and capital currently being transferred to A0 belonging to EVN will be transferred to NSMO according to the data in EVN's financial statements at the time of separation. EVN will record the reduction of EVN's capital and assets corresponding to the value transferred to NSMO according to regulations of law.

NSMO inherits all rights, obligations and legitimate interests of A0 that A0 and EVN are performing related to A0 according to the provisions of law.

For the two loans under Loan Agreement No. 4107-VN (New National Power System Dispatch Center project) and Loan Agreement No. 4711-VN (Information Infrastructure Project for Competitive Power Generation Market), EVN continues to be responsible for repaying the loan to the Authorized Relending Agency according to the provisions of the Relending Agreement signed with the Authorized Relending Agency and the Sub-loan Agreement signed with the Ministry of Finance.

NSMO is responsible for repaying to EVN the debt repayment to the Authorized Lending Agency.

The authorized re-lending agency, EVN, and NSMO sign an appendix to the Asset Mortgage Contract for the assets mortgaged to the authorized re-lending agency.

The Ministry of Finance coordinates with the authorized re-lending agency, EVN, NSMO in the work of recovering re-loaned debt from the authorized re-lending agency, EVN, NSMO...

This Decision takes effect from the date of signing. Relevant ministries, branches and agencies are responsible for completing the separation and establishment of NSMO before August 10, 2024 and related tasks as prescribed in Article 2.

This Decision also abolishes Point d, Section II.2, Article 1, Decision No. 168/QD-TTg dated February 7, 2017 of the Prime Minister approving the Project on restructuring the electricity sector for the 2016-2020 period, with a vision to 2025.

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