The Electricity Law (amended) creates a favorable legal framework for the development of the electricity market.

According to Associate Professor Dr. Ngo Tri Long, the amended Electricity Law, recently passed by the National Assembly , has created a favorable legal framework for the development of Vietnam's electricity market.

As an economic expert, Associate Professor Dr. Ngo Tri Long - former Director of the Institute for Market and Price Research ( Ministry of Finance ) - shared his views and highly appreciated the amended Electricity Law immediately after it was passed by the National Assembly on the afternoon of November 30th.

Associate Professor Dr. Ngo Tri Long shared insights on the new points of the amended Electricity Law recently passed by the National Assembly. Photo: HT

Dear Associate Professor Ngo Tri Long, the amended Electricity Law was passed by the National Assembly on the afternoon of November 30th. In your opinion, what are the most noteworthy new points of the amended law?

The amended Electricity Law was passed by the National Assembly on the afternoon of November 30th. In my assessment, and that of many experts, one of the major changes in the amended Electricity Law is the adjustment of the electricity market structure, aiming for a more efficient and transparent electricity market. Regulations on the electricity market, distribution, and trading of electricity between parties, especially enhancing the role of organizations and businesses participating in the electricity market, will help increase competition and reduce monopolies.

A key new feature in the amended Electricity Law is the promotion of renewable energy development. This includes, in particular, policies encouraging investment in solar, wind, and other renewable energy sources. This aligns with the current global trend towards sustainable development and climate change adaptation.

The amended law also introduces new regulations aimed at managing electricity prices in a more reasonable, open, and transparent manner. This will protect consumer rights and promote flexible electricity price adjustment mechanisms that are consistent with the actual situation of the economy and the electricity market.

At the same time, the Law also focuses on protecting national energy security, effectively managing electricity resources, safeguarding national interests, and ensuring a stable electricity supply for socio-economic development.

In addition, the amended law also stipulates preferential policies for electricity infrastructure development projects, especially in disadvantaged areas, remote areas, and mountainous regions. This will help improve access to electricity for people in these areas.

In summary, the new features of this revised Electricity Law not only create a favorable legal framework for the development of the electricity market but also contribute to enhancing the sustainability of Vietnam's energy development.

According to him, what bottlenecks in electricity development over the past period has the amended Electricity Law addressed?

In my opinion, this revised Electricity Law has addressed several key bottlenecks in Vietnam's electricity development over the past period, specifically:

Prior to the amendments, Vietnam's electricity market still faced many limitations in terms of competition, leading to monopolies and a lack of transparency in electricity distribution. The amended law has clearly stipulated the expansion and development of the electricity market, particularly the establishment of mechanisms allowing for the participation of various economic sectors.

The amended Electricity Law has encouraged investment in renewable energy. Photo: TH

In recent years, the development of renewable energy (such as solar and wind power) in Vietnam has faced numerous difficulties due to a lack of clear and effective support mechanisms and policies. The amended Electricity Law has created policies to encourage investment in renewable energy, such as establishing a reasonable pricing mechanism, supporting renewable energy projects, and promoting the participation of domestic and foreign investors. This will help increase the supply of renewable energy while reducing dependence on foreign sources.

Prior to the amendments, electricity pricing was difficult, lacking flexibility and transparency. This sometimes led to unfairness between consumer and business groups, and made it difficult for investors to forecast and plan their business. The amended law has introduced more flexible electricity pricing mechanisms, helping to adjust electricity prices to match market supply and demand.

One of the major bottlenecks is the uneven development of electricity infrastructure, especially in remote and rural areas. These areas often face difficulties in accessing electricity, affecting socio-economic development. The amended Electricity Law has introduced strong support policies to develop electricity infrastructure in these areas, thereby ensuring stable and equitable electricity supply for all regions nationwide.

With increasing electricity demand and dependence on imported energy sources, energy security is a major challenge. The amended law has introduced stricter regulations to protect national energy security, ensuring a stable supply and minimizing the risk of power supply disruptions from external factors.

Thus, the amended Electricity Law has addressed many fundamental issues in Vietnam's electricity development, helping the electricity sector operate more efficiently, ensuring sustainable development, and meeting the growing needs of the economy.

To ensure that the amended Electricity Law is implemented and put into practice from February 1, 2025, what tasks, according to you, should the Ministry of Industry and Trade prioritize?

In order for the amended Electricity Law to be implemented and come into effect on February 1, 2025, the Ministry of Industry and Trade needs to take the following important steps:

The Ministry of Industry and Trade needs to issue and finalize decrees and circulars providing specific guidance on the implementation of the provisions of the Electricity Law. This includes regulations on electricity pricing mechanisms, licensing procedures for power projects, as well as the rights and obligations of relevant parties.

In the coming period, it is necessary to upgrade and improve the power infrastructure system, especially the national power grid projects, to ensure the stability and operational capacity of the power system when the new regulations are applied.

The amended Electricity Law has removed many bottlenecks in the development of Vietnam's electricity market. Photo: Manh Hung

In addition, the Ministry also needs to organize training programs for officials and civil servants, especially those working in the management, operation, and inspection and supervision of electricity activities, to help them understand and correctly apply the new regulations.

It is necessary to strengthen communication efforts so that people, businesses, and relevant organizations understand and comply with the regulations of the new Electricity Law. This will help minimize difficulties in applying the law in practice.

The Ministry of Industry and Trade needs to coordinate closely with other agencies and localities such as the Ministry of Finance, the Ministry of Planning and Investment, and local authorities to synchronize policies and implement appropriate support measures during the implementation process.

The Ministry needs to establish a mechanism to monitor and evaluate the implementation of the Electricity Law in order to make timely adjustments and amendments if necessary. This will help ensure the effectiveness and appropriateness of the law in practice.

These steps will help create a transparent and stable operating environment, while enhancing the competitiveness and sustainability of the power industry.

Thank you very much, sir!

Source: https://congthuong.vn/pgsts-ngo-tri-long-luat-dien-luc-sua-doi-tao-ra-khung-phap-ly-thuan-loi-cho-phat-trien-thi-truong-dien-361830.html