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Power distributors equitisation ceases
11:15', 19/9/ 2007 (GMT+7)

The Prime Minister on Sept. 18 orders a temporary stop to equitisation efforts at distributing companies under the Electricity of Viet Nam group (EVN).

Under the decision, EVN remains to be the sole power buyer while conducting seperately accountings of electricity purchase and sales as a step towards a competitive wholesale market.

The Government leader ordered a thorough assessment of the equitisation process at EVN companies so as to work out plans on restructuring and changing the ownership status of companies under the EVN by 2010.

The plans should be submitted to the Prime Minister in the fourth quarter of the year, according to his decision.

Earlier, the Ministry of Industry and Trade has proposed in its submission to the Prime Minister for not approving an EVN-initiated project on establishing a joint-stock electricity trading company.

Such a company will benefit a small number of shareholders, causing the electricity less transparent and increasing the pressure to skyrocket power prices, said the Ministry.

  • Source: VNA
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