MoIT provides two alternatives for modifying the NLDC model

On June 14, the MoIT sent Report No.3711/TTr-BCT to the prime minister regarding the transfer of the NLDC to the MoIT in one of two ways.

Option 1: The NLDC becomes a public non-profit organisation under the MoIT that provides electricity infrastructure and operational services.

Option 2: The NLDC becomes a single-member limited liability corporation fully funded by state capital and responsible for operating the grid infrastructure and electricity market under the MoIT.

According to the MoIT, both of the aforementioned alternatives satisfy the criteria of the NLDC's independence and objectivity compared to the current structure, its capacity to collaborate with related entities, and its flexibility in terms of innovation and creativity.

To achieve the objective of transferring the NLDC status quo to the MoIT, the model of a governmental non-business unit providing services for managing the power system and the electricity market is acceptable.

"Option 2 may be considered in the subsequent phase, following the promulgation of the revised Law on Price and the Electricity Law," the MoIT proposed.

According to this agency, the newly constituted entity under the MoIT would be responsible for the administration of power infrastructure and managing the market.

The electricity market matches orders every 30 minutes per cycle, seven days a week, including during holidays. If the NLDC is transformed into a public service entity under the MoIT, this cycle can be shortened to 15 minutes, or even as little as five minutes, similar to nations with more developed electricity markets.

The MoIT holds that it is essential to have a particular financial mechanism that is sufficient to guarantee the maintenance of salaries and allowances at the current level in order to prevent a disruption to the NLDC's human resources, which could pose a threat to the stable, safe, and effective operation of the power system, particularly during the transition of the organisational model.

According to the MoIT, electricity is a unique commodity where supply and demand must always be harmonious, so these roles are vital to guarantee the continuously smooth functioning of the power system.

The current NLDC status comprises the Hanoi-based NLDC A0 and NLDCs in other regions (A1 in the north, A2 in the south, and A3 in the central region). The total number of NLDC employees is 454.

The MoIT stated in its submission, "This is the minimum number of technical staff for the safe and economical operation of the power system, which must be maintained steadily and is difficult to increase since it takes roughly two years (including recruitment, training, and the probationary period) to introduce new personnel."

In a development pertaining to the NLDC, on June 14, EVN issued Decision No.603/QD-EVN suspending Nguyen Duc Ninh from the position of NLDC director while it inspects the leadership and management of the power system.

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