State Monopoly Reinforcement in Nuclear Power and Hydropower Projects Proposed by New Law

During the 36th session of the National Assembly’s Standing Committee on August 19th, the draft amendment to the Electricity Law was deliberated.

The draft includes significant updates, with the recognition of nuclear power as a new form of energy.The proposed amendment emphasizes the State’s monopoly on the investment and construction of nuclear power plants, along with its existing monopoly on multi-purpose hydropower plants and emergency power projects.

Le Quang Huy, Chairman of the National Assembly’s Committee on Science, Technology, and Environment, highlighted the potential for nuclear power development in Vietnam and its importance in the global energy landscape for achieving energy security and the Net Zero target by 2050.

The Standing Committee emphasized the alignment of nuclear power regulations with the Atomic Energy Law and the necessity of providing justifications for political, scientific, technological, and technical aspects of nuclear power projects.

Offshore wind power and its implications on national defense, security, and sovereignty were also addressed. Strict regulations on project transfers and responsibilities of relevant ministries were recommended by the Standing Committee.

The draft law incorporates Resolution 55 of the Politburo to eliminate cross-subsidies in electricity pricing, aiming to rationalize retail electricity pricing structures and eliminate cross-subsidies between regions and customer groups not partaking in the competitive retail electricity market.

The Committee acknowledged the need to align pricing policies with market dynamics but called for clearer steps to reduce cross-subsidies, ensuring social equity and encouraging energy conservation.

The draft law shifts the authority to adjust retail electricity prices from the Prime Minister to the Government, with a decree specifying the adjustment mechanism, intervals, and frameworks for electricity generation and power agreements.

The reviewing agency suggested additional regulations to ensure transparency and accountability in electricity pricing and explore mechanisms for price stability through a stabilization fund.

The draft amendment on Electricity Law comprises nine chapters with 121 articles, slated for its initial discussion in the National Assembly in October.