The Ministry of Industry and Trade stated that, based on Vietnam's electricity market model and international experience from countries with established electricity markets, the roles of A0 (including System Operator (SO) and Market Operator (MO)) and the Transmission Owner (TO) of the National Power Transmission Corporation are closely related functions, as these are fundamental services of the electricity system with a natural monopoly nature. Therefore, the combination of these three services (TO-SO-MO) will determine the organizational model of A0. However, to implement the Prime Minister 's directive, priority is given to transferring A0 (SO and MO) to the Ministry of Industry and Trade in its current state.

The transfer of management and direction of A0 from EVN to the Ministry of Industry and Trade can be implemented according to one of two options. Option 1: A0 becomes a public service unit providing electricity system operation and electricity market management services directly under the Ministry of Industry and Trade. Option 2: A0 becomes a wholly state-owned limited liability company (LLC) for electricity system operation and electricity market management, directly under the Ministry of Industry and Trade.

Both of the above options ensure the criteria of independence and objectivity of A0 compared to the current situation, the ability to coordinate with relevant units, and the ability to be flexible, innovative, and creative.

Operations at the National Power System Control Center. Photo: VNA

Under current conditions, to meet the objective of transferring the A0 system to the direct control of the Ministry of Industry and Trade, the model of a public service unit providing electricity system operation and electricity market management services is appropriate. In the next phase, after the amended Law on Prices and the Law on Electricity are promulgated, option 2 may be considered.

Regarding its specific characteristics, the newly established unit under the Ministry of Industry and Trade is responsible for the operation of the power system and the electricity market. To ensure the safe and reliable operation of the power system, this unit employs personnel holding positions involved in the operation of the power system and electricity market under immense pressure. They must control and operate the entire power system, encompassing hundreds of power plants and hundreds of thousands of different high-voltage electrical devices. Their work requires quick, accurate decisions, and no room for error, as each mistake can result in damage to valuable equipment, widespread power outages, or even endanger the health and lives of other employees. The aforementioned workforce is recruited with high requirements (having a university degree at a good or excellent level or higher), undergoes intensive training (12 to 18 months), and must pass rigorous examinations. Only those who meet the requirements are allowed to be assigned to positions such as: National power system dispatcher, national power system calculation engineer, electricity market transaction operation engineer, regional power system dispatcher, regional power system calculation engineer, SCADA engineer, etc.

Furthermore, because electricity is a special commodity that requires a constant balance between production (supply) and consumption (demand), these positions are responsible for ensuring the operation of the power system every second, every minute, 24 hours a day, 7 days a week. The electricity market also executes order matching every 30 minutes/cycle on all days, including weekends and holidays (this cycle can be reduced to 15 minutes or 5 minutes, as in countries with developed electricity markets when the infrastructure is adequate).

This is a crucial technical workforce for the safe and economical operation of the power system. It needs to be maintained stably and is not easily replaced, as it takes approximately two years (including recruitment, training, and probationary periods) to acquire new personnel. Therefore, qualified personnel are assigned jobs with high, competitive salaries (according to reports, the average salary for those directly involved in production is around 40 million VND per person per month).

Therefore, if A0 is transformed into a public service unit under the Ministry of Industry and Trade, a specific financial mechanism is needed to ensure that salaries and allowances are maintained at levels equivalent to the current ones. This is to avoid disruptions to A0's workforce, which could lead to risks to the stable, safe, and efficient operation of the power system, especially during the transition and refinement of the organizational model.

Currently, based on a review of existing legal regulations and infrastructure, the Ministry of Industry and Trade does not have the function of directly managing and operating A0. Therefore, to adjust the management and direction of A0 to the Ministry of Industry and Trade in accordance with the regulations of the Party and the State, it is necessary to amend the relevant legal documents.

Specifically, regarding Government Decrees, it is necessary to review and amend Decree No. 26/2018/ND-CP regulating the Charter on the Organization and Operation of Vietnam Electricity Group (EVN) to remove the content "commanding and operating the system of electricity production, transmission, distribution and allocation in the national power system" from the list of main business sectors of EVN, and to remove the National Power System Dispatch Center from the list of units under EVN. At the same time, it is necessary to review and amend Decree No. 96/2022/ND-CP regulating the functions, tasks, powers and organizational structure of the Ministry of Industry and Trade to add and clarify the function of "commanding and operating the system of electricity production, transmission, distribution and allocation in the national power system" within the tasks of the Ministry of Industry and Trade.

To ensure the continued stable operation of AO and avoid disruptions that could affect electricity supply security, a suitable roadmap is needed to transfer the current assets and personnel to the Ministry of Industry and Trade in accordance with the legal regulations on the management of public assets, public service units, and civil servants.

The Ministry of Industry and Trade also proposed that the Prime Minister issue a decision to transfer the National Power System Dispatch Center to the Ministry of Industry and Trade in its entirety; assign the Ministry of Industry and Trade to lead the coordination with relevant agencies and units to review and report to the Government on amendments and additions to Decree No. 96/2022/ND-CP regulating the functions, tasks, powers and organizational structure of the Ministry of Industry and Trade; assign the State Capital Management Committee at enterprises to lead the coordination with relevant agencies and units to review and report to the Government on amendments and additions to Decree No. 26/2018/ND-CP regulating the Charter on organization and operation of Vietnam Electricity Group; revise, finalize and submit to the Prime Minister for approval the electricity sector restructuring plan towards transforming the operating model of the National Power System Dispatch Center to be under the direct control of the Ministry of Industry and Trade based on transferring the entire personnel, assets and capital from EVN to the newly established unit. The newly established unit will sign contracts to provide electricity system dispatching services and operate electricity market transactions with EVN or market members according to the plan approved in the A0 model transformation project.

Furthermore, it is recommended that the Prime Minister assign the Ministry of Finance to take the lead in coordinating with the Ministry of Labour, Invalids and Social Affairs, the Ministry of Industry and Trade, the State Capital Management Committee at enterprises, and other relevant units to review current legal regulations; issue or submit to competent authorities for issuance regulations on the operating price of the power system and the operating price of electricity market transactions, specific mechanisms on the operating costs of the unit, salary and allowance regimes for direct production personnel of public service units providing power system operation and electricity market management services under the Ministry of Industry and Trade; and direct the Ministry of Finance to provide additional funding to the Ministry of Industry and Trade to maintain the unit's operations and pay salaries to direct production personnel at public service units providing power system operation and electricity market management services under the Ministry of Industry and Trade, ensuring that financial regimes and salary levels remain as they are currently.

A0 is the unit responsible for two functions stipulated in the Electricity Law: the National Power System Dispatching Unit and the Electricity Market Transaction Operating Unit. To ensure fairness and transparency in electricity market operation, Decision No. 168/QD-Tg dated February 7, 2017, of the Prime Minister approving the Electricity Sector Restructuring Plan for the period 2016-2020, with orientation to 2025, stipulates that A0 will be transformed into a Limited Liability Company for Electricity System Operation and Market Management, operating independently within EVN during the 2019-2020 period, and subsequently into an independent unit in terms of personnel, legal aspects, and finance, with no shared interests with electricity sellers or buyers, and with 100% state-owned capital during the 2021-2025 period.

Since the State Capital Management Committee at Enterprises was established in September 2018, the task of restructuring A0 has been assigned to this unit. However, to date, the restructuring of A0 has not yet been approved and implemented.

Currently, A0 comprises the National Power System Dispatch Center headquartered in Hanoi and regional power system dispatch centers (A1 in the North, A2 in the South, and A3 in the Central region). A0 has a total of 454 personnel. The majority of A0's staff are highly qualified (91% hold a university degree or higher) and are directly involved in production (62% of the total workforce).

VNA