The electricity market is about to end its "monopoly", people can choose their supplier.

The electricity market is about to end its

Resolution 70 has strengthened customers' rights to access and choose suitable electricity suppliers. Photo: EVN

General Secretary To Lam, on behalf of the Politburo, signed Resolution 70 on ensuring national energy security to 2030, with a vision to 2045.

Resolution 70 requires the development of the electricity market in the direction of increasing competitiveness, transparency, efficiency, and synchronization with ensuring energy security. In particular, effectively implementing the direct electricity trading mechanism, while enhancing the right of choice of electricity customers in accessing and selecting electricity suppliers that suit their needs.

According to Dr. Nguyen Xuan Quang - Institute of Energy Technology ( Hanoi University of Science and Technology), Resolution 70 has placed customers at the center of the electricity market, giving them the right to choose the right electricity supplier for their needs instead of just passively receiving electricity from EVN. This is a breakthrough orientation, opening up opportunities to restructure the Vietnamese electricity market, which has long been in a "monopoly" state.

For many years, Vietnam’s electricity market has operated under a centralized wholesale mechanism, in which EVN plays the role of “sole buyer” from power plants and then distributes to customers. This mechanism has the advantage of being easy to manage, but also has many shortcomings such as: lack of price transparency, limited customer choice, easy to create a mechanism of asking and giving, privileges and even negative management…

Resolution 70 also requires the construction and completion of an electricity trading system, including a transparent, stable, long-term power purchase agreement (PPA) mechanism, ensuring the legitimate and legal rights and interests of investors.

Encourage private enterprises to participate in investment projects in energy storage infrastructure such as storage batteries, LNG warehouses, gasoline and oil warehouses both on land and at sea. Innovate the electricity transmission price mechanism to strongly attract the private sector to invest in developing the transmission grid.

Along with that, Resolution 70 also requires a breakthrough mechanism and policy to attract all social resources to participate in energy development, ensuring capital sources to implement energy development plans, especially the national power development plan for the period 2021 - 2030, with a vision to 2050. There is a mechanism to allocate preferential credit sources or government guarantees for important national energy projects that need priority investment, including large-scale, important and urgent BOT power projects. Encourage and create conditions for enterprises to increase capital mobilization through domestic and foreign bond issuance.

At the same time, the Resolution also emphasizes the need to promote the delegation of autonomy, self-determination, and self-responsibility to enterprises; review and supplement appropriate specific mechanisms and policies to create favorable conditions and ensure sufficient capital for corporations and state-owned enterprises to implement large-scale, important, and urgent energy projects.

Continue restructuring, innovating, improving the operational efficiency and leading and competitive role of state-owned enterprises in the energy sector; strongly applying science, technology, and digital transformation in corporate governance.

Promote the attraction of private and foreign investment, remove obstacles to take advantage of ODA capital, international support capital, especially capital within the framework of the Just Energy Transition Partnership (JETP) for energy projects. Develop the green bond market, deploy green credit.

The Resolution encourages businesses and people to participate in investing in developing small and medium-sized renewable energy projects, projects that both produce and consume energy. Urgently complete the legal system for contract enforcement and dispute resolution; have a specific mechanism to thoroughly handle long-standing energy development projects and contracts that cause waste of social resources; and end the situation where state-owned enterprises are slow to fulfill payment obligations under contracts signed with private enterprises.

Laodong.vn

Source: https://laodong.vn/kinh-doanh/thi-truong-dien-sap-cham-dut-doc-quyen-nguoi-dan-duoc-chon-don-vi-cung-cap-1569322.ldo