The Committee for Management of State Capital at the Enterprises proposes to terminate operations of the A0 and a number of the TP companies
14:56 | 27/02/2023
According to the Committee, The objective of the project is to develop EVN into a strong economic group with a sustainable, efficient, profitable business and to keep the State investment capital in order to ensure and EVN investment capital to other enterprises in order to save and stable electricity supply for socio-economic development.
On the basis of the EVN project, opinions and proposals of the Ministers and Agencies, the Committee proposes the Prime Minister approve the following contents:
1/The EVN is continuously a Single Limited Company by 100% of the State Charter Capital and EVN is a parent company of the:
- Son La, Hoa Binh, Italy, Tri An, Tuyen Quang, Se San, Huoi Quang and Ban Chat Hydropower plants.
- Power Project Management Boards 1, 2, 3.
- EVN Technology and Construction Investment Project Management Boards.
- Electricity Trading Company.
- Electricity Telecommunication, and IT Companies.
- EVN Repair Service Center.
- Electricity Information Center.
The Enterprises with 100% charter capital of EVN include:
- The General Power North, Center, South, Ha Noi and Ho Chi Minh Cities corporations.
- Thu Duc Thermal Power Single Member Company Limited.
With the National Load Dispatch Center (A0), the project provides a roadmap for continuing to carry out the necessary procedures to establish the Single Limited Company for operating the Power System and Electricity Market and terminating A0 operation.
The Committee considers that the proposal of EVN to establish the Single Limited Company in this period for meeting to restructure the electricity industry to serve the competitive electricity retail market in Vietnam and to comply with the direction of the Prime Minister.
Thai Binh Thermal Power Company will be terminated and replaced with Thai Binh Limited Thermal Power Company.
Vinh Tan 4 Thermal Power Plant also will be terminated and replaced by Vinh Tan 4 Limited Thermal Power Company.
Limited will be established, terminating the operation of the National Power Transmission Company Thermal Plant.
The Enterprises for which EVN holds more than 50% of the charter capital include the Power Engineering Consulting Joint Stock Companies (PECCs) 1, 2, and 4. The project sets out a plan to implement equitization for companies with 51% of Charter Capital as the Power Generation Joint Stock Corporations 1,2,3.
The companies with less than 50% charter capital include the joint Stock PECC 3, Dong Anh Power Equipment Joint Stock Corporation and Vinh Tan 3 Energy Joint Stock Company.
Regarding the reconstruction of the financial management plan, the Committee proposed to develop a financial restructuring plan and strengthen the financial management at EVN, which there is required to study of the financial mechanism of EVN in the period of the competitive retail electricity market, developing a plan to separate the organization and cost accounting of the distribution and retail divisions of the general electricity corporations. On the other hand, to develop the mechanism for the wholesale electricity prices between EVN - a Parent Company and electricity distribution enterprises in accordance with the mechanism of adjusting electricity retail prices according to the market mechanism. Develop a plan to increase charter capital suitable to each period to meet capital requirements for production, business, and development. For the personnel restructuring plan, the Committee requested the pilot implementation of the centralized model at the parent company - EVN and the parent company - the corporations, focusing on the focal points, reducing indirect management labor at the middle management level, and subordinate units to ensure streamlining the apparatus.