EVN separates service units from production operations

10:53 | 31/10/2018 Energy

(VEN) - To promote the restructuring of Vietnam’s power sector, the state-owned Electricity of Vietnam (EVN) is stepping up the separation of its services from its trade and production activities.

evn separates service units from production operations

Another one of the tasks of the restructuring project of the power sector and a master plan on restructuring enterprises under the EVN for the 2017-2020 period is to separate power distribution costs and retail costs towards increasing transparency in the pricing mechanism.

Accordingly, five power corporations and the National Power Transmission Corporation (EVNNPT) will separate repair services and power grid management to improve efficiency of trade and production activities, as well as to promote the leading role of the EVN in general and enterprises in particular.

However, the restructuring of EVN and its member units together with the application of science and technology in management and operation have made some workers redundant.

According to experts, the establishment of power service companies is an initiative that benefits not only the power sector but also society, creating jobs for redundant workers, meeting the requirements of the restructuring, providing diversified services for customers, and adapting to the market economy.

Under the direction of EVN, three of its six units have completed the establishment of service companies, including the EVNNPT, the Hanoi Power Corporation (EVN Hanoi), and the Ho Chi Minh City Power Corporation (EVN HCMC). According to the plan, in early 2019, the Northern Power Corporation (EVNNPC) will put its service companies into operation. These companies will provide services such as design consultancy, electrical installation, overhauling, and repair.

The practical experience of the established service companies shows that the separation of services from management faced many difficulties at the beginning. However, in the long run, it has proven efficient.

EVNNPT Chairman Dang Phan Tuong said the separation has contributed to improving the quality of the national power transmission system, enhancing efficiency of trade and production activities, and raising labor productivity.

Experts also say that the establishment of service companies will provide greater revenues for power corporations.

Service companies will ensure EVN’s service-oriented operations in the short term, and provide electricity-related

services for customers in the long term.

Vu Son