This viewpoint was given by the Ministry of Planning and Investment in a report sent to the Prime Minister, appraising the Project to separate the National Power System Dispatch Center (A0) from Vietnam Electricity Group (EVN) to establish a Company.
According to the project of the Committee for Management of State Capital at Enterprises, after separating from EVN (part of capital and assets), A0 will establish National Electricity System and Market Operation Company Limited (NSMO).
The financial mechanism is one of the key points for NSMO to operate stably and continuously after separating from EVN.
The Ministry of Planning and Investment requested the Capital Management Committee and the Ministry of Industry and Trade to clearly determine the time to complete the development of a circular guiding the costs of dispatching the electricity system and operating electricity market transactions.
`The separation of A0 from EVN to establish a limited liability company should only be considered and decided when there are financial mechanisms to ensure stable operation and operation,` the appraisal report of the Ministry of Planning and Investment stated.
Officer of the National Power System Dispatch Center (A0) is on duty to operate the power system.
Previously, in the conclusion announcement issued in early August, Deputy Prime Minister Tran Luu Quang requested ministries to build financial mechanisms and revenue sources for A0 to operate continuously and effectively after separating from EVN and establishing
Two months ago, when submitting to the Government a plan to separate A0, the Ministry of Industry and Trade asked for a special financial mechanism to maintain salaries and allowances for dispatching engineers of this unit.
To handle this problem, the Ministry of Industry and Trade proposed that NSMO will recover costs of dispatching and managing electricity market transactions through signing a service provision contract with EVN, from the date of separation from this group.
Next, when applying dispatch prices and managing electricity market transactions, according to the project, NSMO signs unit price contracts with electricity buying and selling units.
The Ministry of Industry and Trade will be the unit to provide specific guidance on dispatching prices for power system operations, according to the Electricity Law.
Also according to the appraisal report, the Ministry of Planning and Investment is concerned about the charter capital of the independent dispatching company after separating from EVN, which is 735 billion VND according to the project.
However, in the financial report of the first quarter of 2023, A0’s equity is about 385 billion VND and currently the remaining value of the asset portfolio handed over at the end of June 2023 is over 578 billion VND.
The Ministry also proposed adding bases and asset categories to form A0’s equity and charter capital and reviewing operating costs, working capital, and investment so that NSMO operates stably until the end of 2023.
Previously, the Ministry of Finance stated that there was not enough basis for comments on NSMO’s charter capital because the equity on the financial statements did not have a basic depreciation target.
The appraisal agency is also concerned about whether the capital of VND 735 billion is enough for NSMO to operate, implement production and business plans, and invest and develop for 5 years after its establishment.
A0 was established in 1994, operating power transmission and distribution stages to ensure the safe and stable operation of the power system.
The transfer of A0 to the Ministry of Industry and Trade was carried out at the request of the Prime Minister, in order to facilitate the operation of the market mechanism in the relationship between the national electricity system dispatching unit and the electricity generation, transmission and distribution units.
Mr. Minh