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THE PRIME
MINISTER
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SOCIALIST
REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
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No. 168/QD-TTg
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Hanoi, February
7, 2017
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DECISION
ON APPROVAL FOR PROJECT
FOR RESTRUCTURING OF ELECTRICITY SECTOR IN THE PERIOD OF 2016 – 2020 WITH AN
ORIENTATION TO 2025
THE PRIME MINISTER
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,
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Article 1. To approve the Project for
restructuring of electricity sector in the period of 2016 – 2020 with an
orientation to 2025, in particular:
I. OBJECTIVES
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
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- 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.
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- 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.
dd) Management of power measurement data in the
electricity market
- National Load Dispatch Center shall be in charge
of management of power measurement data in the wholesale electricity market.
- National Power Transmission Corporation, Power
Corporations, Electric Power Trading Company, Center of Communications and
Information Technology shall be in charge of collecting, managing, and storing
power measure data within their scope of management as prescribed by the
Ministry of Industry and Trade.
e) Electricity regulation authority
Renovate the model of Electricity Regulatory
Authority affiliated to the Ministry of Industry and Trade in such a manner as
to meet requirements pertaining to management and supervision of the wholesale
electricity market and enhance the effectiveness of electricity regulation.
2. From 2019 to 2020
a) Consider divesting state capital in Power
Generation Corporations to under the dominance rate and separate Power
Generation Corporations from the Groups according to a report on evaluation of
performance given within 2 years of equitization in accordance with the
Decision of the Prime Minister on criteria and list of state-owned enterprise
classification.
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- Power plants that have entered into BOT contracts
are encouraged to participate in the wholesale electricity market.
- Power plants that have not entered into BOT
contracts are encouraged to decrease capacity and guaranteed output, and
participate in the wholesale electricity market.
c) Initiate plans for putting large power plants
which are extremely important in respect of socio-economic, national defense
and security aspects into operation of wholesale electricity market.
d) Continue separating costs of distribution and
retailing incurred by Power Corporations as preparation step for operation of
the retail electricity market. Initiate the regulatory mechanism between Power
Corporations that meet requirements of wholesale electricity market.
dd) Convert the National Load Dispatch Center into
an electricity market and electricity system operation single-member limited
liability company which has legal status and eligible for independent
accounting in EVN and to be completed before the operation of the wholesale
electricity market.
III. ORIENTATIONS OF ELECTRICITY SECTOR
STRUCTURE IN THE PERIOD OF 2021 - 2025
1. Keep separating and doing accounting of costs of
distribution and retailing in Power Corporations and create a competitive
environment that is equal and transparent in retailing between participants of
the market.
2. Equitize Power Corporations in line with the
road map that has been decided by the Prime Minister, in particular:
- Ensure the state-owned capital rate in Power
Corporations in accordance with the Decision of the Prime Minister on criteria
and list of state-owned enterprise classification
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3. Formulate and initiate a plan that convert the
electricity market and electricity system operation single-member limited
liability company into an independent entity in terms of personnel, legality,
finance, without shared benefits with the electricity seller and the
electricity purchaser, of which the whole charter capital is held by the state.
4. Keep conducting the regulatory mechanism between
Power Corporations and mechanism of retail prices that meet requirements of
retail electricity market.
IV. IMPLEMENTATION
1. The Ministry of Industry and Trade
a) Take charge and cooperate with relevant agencies
in reviewing Law on Electricity, Law on amendments to Law on Electricity and
relevant legislative documents so as to request competent authorities to
approve necessary amendments to the Project for restructuring of electricity
sector in the period of 2016 – 2020 with an orientation to 2025.
b) Expedite and direct relevant units to execute
the Project for restructuring of electricity sector in the period of 2016 –
2020 with an orientation to 2025 that has been approved.
c) Take charge and cooperate with relevant agencies
in requesting the Prime Minister to consider plans for equitization of Power
Generation Corporations, in accordance with the schedule of restructuring of
electricity sector that has been approved.
d) Research and propose incentives for BOT power
plants to participate in the electricity market.
d) Approve and initiate the project for putting
large power plants which are extremely important in respect of socio-economic,
national defense and security aspects into operation of wholesale electricity
market.
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g) Direct the separation of costs between the
distribution and retailing according to applicable regulations.
h) Research and change policies for electricity
prices of the phases in accordance with electricity market levels; propose policies
for electricity distribution prices in accordance with the orientations of
retail electricity market development.
i) Formulate policies for regulation among Power
Corporations in the wholesale electricity market; formulate a system of
electricity prices according to market mechanism with the state regulation.
k) Direct the formulation of 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 and submit it to the Prime Minister
for consideration.
l) Send the Prime Minister a plan for renovating
the structure model of Electricity Regulatory Authority affiliated to the
Ministry of Industry and Trade; take charge and cooperate with the Ministry of
Finance in formulating and submitting collecting policies for regulation of
wholesale electricity market and retail electricity market to competent
authorities for approval.
m) Create and submit a design of the retail
electricity market to the Prime Minister.
2. The Ministry of Finance
a) Cooperate with the Ministry of Industry and
Trade in considering the plan for equitization of Power Generation
Corporations, and then submitting it to the Prime Minister for consideration.
b) Take charge and cooperate with the Ministry of
Industry and Trade in considering difficulties arising during the restructuring
of electricity sector and equitization of Power Generation Corporations, and
then submitting it to the Prime Minister for consideration, including:
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- Decrease of proportion of state-owned
shareholding in Power Generation Corporations after the equitization.
- Plans for converting the borrowers in a loan
agreement with Government guarantees as the Groups into the Power Generation
Corporations after the equitization.
c) Cooperate with the Ministry of Industry and
Trade in formulating regulation mechanism among Power Corporations in wholesale
electricity market, and collecting mechanism for the regulation of wholesale
electricity market and retail electricity market.
Article 2. This Decision comes into force
from the date on which it is signed.
Article 3. Ministers, Heads of ministerial-level
agencies, Heads of Governmental agencies, the Presidents of People’s Committees
of provinces and central-affiliated cities, Chief of Steering Committee of
enterprise renovation and development, Presidents of the Member assembly, and
General Directors of EVN, PVN, Vinacomin, and relevant agencies shall implement
this Decision./.
PP. PRIME
MINISTER
DEPUTY PRIME MINISTER
Trinh Dinh Dung
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