Equitization of power generation companies

Equitization of power generation companies - 

Prime Minister (PM) Nguyen Xuan Phuc has agreed as a policy equitization of power generation corporations (Gencos) under EVN, PVN and Vinacomin. By 2018, the groups are still in charge and holding dominant shares of equitized Gencos.

This issue was stated in information of conclusions of PM Nguyen Xuan Phuc on project of Restructure of Power Sector in 2016-2020 period and outlook to 2025 at a meeting of Government Permanent Council.

According to the information, PM directed to supplement the content on reducing rate of state shares to below dominant level and separate Gencos from the groups. PM also noted that the competitive electricity bulk sale market and restructure of power sector must guarantee the aim to promote production and business efficiency of power sector, connect closely with continuous changing activities by market mechanism, enhance openness, transparency, equality and fair competition in condition of international integration. The implementing measures must contribute in ensuring sufficient electricity supply for socio-economic development of the country without any risk of electricity shortage due to the institutions and operation mechanisms of the power sector.

The solutions for power sector restructure in coming period must have roadmap suitable with schedule of the competitive electricity bulk sale market and considering preparation for following competitive electricity retail sale market. Restructure must ensure: to attract reasonable social investment resources in power sector, that the state to hold 100% share in power transmission, national power system dispatching activities, and construct and operate the large power projects which have a specially important meaning for socio-economic development and national defensive security.

PM asked to supplement the data on the current situation to the end of 2015 of power sector including infrastructure, organization and operation of competitive electricity generation market, check and add the data on power planning development up to 2020 and 2025.

PM assigned Ministry of industry and Trade (MoIT) in co-ordination with EVN to check additionally equitization of corporations and companies directly under EVN and the option on equitization in retail sale but distribution chain of electricity.

PM also assigned MoIT to check current situation of state management organization at the ministry office to propose measures for improving apparatus with a goal to enhance state management efficiency for activities of the power sector, pay attention to activities of implementing national power planning development, supervising power supply -demand balances in the whole country and regions, check calculating power demand and power generation mix with careful considering renewable energy development and environmental protection in coal-fired thermal power plants.

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