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MINISTRY OF INDUSTRY AND TRADE
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SOCIALIST REPUBLIC OF VIETNAM
Independence – Freedom – Happiness
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No: 14/2025/TT-BCT
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Hanoi, February 01, 2025
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CIRCULAR
METHODS FOR FORMULATION, DOCUMENTS
AND PROCEDURES FOR APPROVAL OF ELECTRICITY TRANSMISSION PRICE
Pursuant to Law on Electricity dated November 31, 2024;
Pursuant to Government’s Decree No. 96/2022/ND-CP dated
November 29, 2022 defining functions, tasks, powers and organizational
structure of the Ministry of Industry and Trade of Vietnam; Government’s Decree
No. 105/2024/ND-CP dated August 01, 2024 on amendments to Decree No.
96/2022/ND-CP and Decree No. 26/2018/ND-CP dated February 28, 2018 on Charter
of organization and operation of EVN;
At the request of the Director of Electricity Regulatory
Authority of Vietnam;
The Minister of Industry and Trade promulgates Circular on
methods for formulation, documents and procedures for approval of electricity
transmission price.
Chapter I
GENERAL PROVISIONS
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1. This Circular provides guidelines on methods for formulating electricity
transmission price, documents and procedures for approving electricity
transmission price; methods for guiding and determining price for transmission
grids invested in and built by non-State economic sectors in accordance with
points a and b Clause 6 Article 51 of the Law on Electricity No. 61/2024/QH15.
2. This Circular shall apply to Vietnam Electricity (EVN), electricity
transmission units, electricity traders, Power Corporation, and customers who
directly buy electricity from transmission system.
Article 2. Interpretation of terms
For the purposes of this Circular, the terms below shall be
construed as follows:
1. Electricity authority refers to a unit affiliated to the Ministry of
Industry and Trade which is assigned functions, tasks, and powers related to
electricity management in accordance with regulations.
2. CPI refers to the consumer price index provided by central statistics
authority.
3. Electricity delivery point refers to a connection point between
electricity
transmission units or with Power Corporation or with customers who directly buy
electricity from transmission system and are equipped with an electricity
metering system as regulated.
4. Electricity transmission cost payers refer to EVN, electricity traders, Power
Corporation and customers who directly buy electricity from transmission system.
5. Electricity transmission unit refers to any electric unit which is
granted the electricity license and responsible for managing and operating the
national transmission grid, including: National
Power Transmission Corporation and other electricity transmission units
belonging to non-State economic sectors which invest in transmission grids.
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7. Year N refers to the Gregorian calendar year from January 1 to December 31 of
the year Where the price and price bracket is applicable.
8. Year N-1 refers to the Gregorian calendar year immediately preceding
Year N.
9. Year N-2 refers to the Gregorian calendar year immediately preceding Year N-1.
10. Electricity transmission assets include transmission grids,
construction works, and other auxiliary equipment used for electricity
transmission and owned by electricity transmission units.
11. Power Corporation refers to the member Power Corporation of EVN, including: Power Corporation refers to the member Power Corporation of EVN,
including Northern Power Corporation, Southern Power Corporation, Central Power
Corporation, Hanoi Power Corporation, and Ho Chi Minh City Power Corporation.
Chapter II
METHODS FOR DETERMINING ELECTRICITY TRANSMISSION
PRICE
Article 3. Rules and methods for determining electricity
transmission price
1. Electricity transmission price shall be determined annually on the basis
of reasonable and legitimate costs and reasonable profit margin for the
electricity transmission operation of electricity transmission units.
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Where:
a)
:
Total permissible electricity transmission revenues in year N of Electricity
transmission units (VND), which shall be determined in accordance with Article
4 of this Circular;
b)
:
Total generation output expected in year N (kWh), which shall be determined as
follows:
b1) National Power Transmission Corporation: Total electricity transmission output expected at the
delivery point with Power Corporation or with customers who directly buy
electricity from transmission system;
b2) Other electricity transmission units: Total electricity transmission output expected through the
transmission grid owned by the unit at electricity delivery points with
electricity transmission units or Power Corporation or customers who directly
buy electricity from transmission system;
b3) The determination of electricity delivered at
electricity delivery points shall be carried out in accordance with the
regulations on electricity metering.
3. Electricity transmission price shall be revised according to the actual
changes of input parameters, including: foreign
exchange rates, interest rates, electricity transmission output, fixed asset
depreciation costs, taxes, fees, other payments to the state budget, or in case of accidents,
crisis, force majeure events as regulated by the laws on state of emergencies
and relevant regulations causing changes in electricity transmission costs.
When the electricity transmission price is updated based on
the actual changes of input parameters mentioned above (other parameters remain
unchanged), or in case of accidents, crisis, force majeure events causing
changes of ±1% or more compared to the approved electricity transmission price
of the year, the electricity transmission price shall be considered and
adjusted following the procedures specified in Article 10 of this Circular.
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Total permissible electricity transmission revenues in year
N
, which
includes permissible capital costs
, permissible operation and maintenance costs
, permissible profit
(LNN) and adjustments to revenue in Year N
, shall be determined using
the formula below:

Where:
1.
: Total permissible electricity transmission capital cost in
year N of Electricity transmission units (VND), determined in accordance with
Article 6 of this Circular;
2.
: Total permissible operation and maintenance costs in year
N of Electricity transmission units (VND), determined in accordance with
Article 7 of this Circular;
3. LNN: Total permissible profits in year N of electricity
transmission units (VND), determined in accordance with Article 5 of this
Circular;
4.
: adjustments to revenue in Year N including expected
deposit interests in Year N of electricity transmission units (based on deposit
interests in year N), expected income from the liquidation and sale of fixed
assets, materials and equipment in year N (based on the liquidation and sale
plan of fixed assets, materials and equipment in year N).
Article 5. Methods for determining permissible profit
The expected permissible profit in year N (LNN)
of electricity transmission units shall be determined using the formula below:
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Where:
1.
: equity capital of electricity transmission units as of
June 30 of year N-1 (VND), where the equity capital of the National Power
Transmission Corporation is state capital invested by EVN for electricity
generation and business operations according to the financial report of the
second quarter of year N-1, equity capital of other electricity transmission
units is capital formed from the investment in electricity transmission assets
according to the regulations of relevant laws;
2. ROEN : Pre-tax interest rate on equity capital in year N applied to
electricity transmission units (%), determined in accordance with Clause 1
Article 3 of this Circular, without exceeding the pre-tax interest rate as
specified in the Government’s Decree on the mechanism and time for revision of
average retail electricity prices.
Article 6. Methods for determining total permissible capital
costs for electricity transmission
1. Total permissible capital costs for electricity transmission in year N
shall be determined using
the formula below:

Where:
a)
:
Total expected costs of depreciation of fixed assets in year N (VND)
b)
:
Total expected
financing costs including short-term and long-term interests, bonds, financial
leases, and loan-related fees payable in Year N for electricity transmission
assets (VND)
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d)
: expected revaluation of exchange rate in
year N (VND);
dd )
: expected allocation in year N of the
unrealized exchange rate loss from previous years.
2. Total depreciation costs of fixed assets in year N (
) shall be determined based on the
value of existing fixed assets and projected assets to be put into operation in
Year N, following the regulations on the management, utilization, and
depreciation of fixed assets issued by the Ministry of Finance or other
competent authorities.
3. Total expected financing costs in year N
shall be determined based on the
existing credit agreements, financial lease contracts, and projected loans to
serve electricity transmission in year N. The floating interest rate of loans
shall be estimated based on loan agreements, documents, dossiers, and proposals
from credit institutions and banks, which should not exceed the corresponding
foreign and domestic currency interest rates as follows:
a) The interest rate of capital borrowed in foreign currency
shall be determined using 180-day average SOFR (Secured Overnight Financing
Rate) of 36 consecutive months prior to the establishment of price bracket announced
by Fed (website: www.newyorkfed.org) plus an average
annual loan arrangement fee charged by the bank (3% per year)
b) The interest rate for capital borrowed in VND currency
shall be determined by the average interest rate for 12-month deposits in VND,
applicable to individual customers, of 05 consecutive years prior to the
establishment of annual price bracket determined on September 30th of each year
and announced by 04 commercial banks (Vietnam Bank for Foreign Trade, Joint
Stock Commercial Bank for Industry and Trade of Vietnam, Joint Stock Commercial
Bank for Investment and Development of Vietnam, Agriculture and Rural
Development Bank of Vietnam, or their lawful successors) plus the average
annual loan arrangement fee charged by the bank, which is 3% per year.
4. The exchange rate difference expected to arise from repayment of foreign
currency loans in year N
shall be determined according to
regulations on finance and accounting.
5. The exchange rate difference expected to arise from revaluation in year
N
shall be
determined according to regulations on finance and accounting.
6. Expected allocation in year N of the unrealized exchange rate loss from
previous years
shall
be determined according regulations promulgated by competent authorities.
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1. Total permissible operation and maintenance costs for electricity
transmission in year N shall be determined using the formula below:

Where:
a)
:
total material costs expected in year N (VND);
b)
:
total personnel costs expected in year N (VND);
c)
:
total major repair costs expected in year N (VND);
d)
:
total outsourced service costs expected in year N (VND);
dd)
:
total other monetary costs expected in year N (VND).
2. Methods for determining material costs:
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a1) Material costs within norms: Costs of engine oil, lubricants, grease, materials, tools,
equipment using directly and indirectly for workshops, laboratory tests,
materials for regular repairs and maintenance, tools, equipment, machines, and
supplies for management, operation, and maintenance of power lines,
substations, transformers, office works, and other relevant costs determined
according to the norms issued by competent authorities;
a2) Material costs in case of incidents: costs of materials
used for unforeseen and objective incidents, determined according to legal
regulations.
b) Total material costs expected in year N (VND) shall be
determined using the following formula:

Where:
b1)
: Total generation output expected
in year N (kWh), which shall be determined as follows:
b2)
:
Norm of material costs determined according to the regulations issued by
competent authorities (VND/kWh);
b3)
:
Indexation rate in year N determined by the average CPI of the 03 most recent
years prior to the price establishment, Where years with significant CPI
fluctuations shall be excluded (%).
b4)
:
Material costs in case of incidents expected in year N (VND);
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Total personnel costs expected in year N
of electricity transmission
units including total payroll cost and salary-related cost, which shall be
determined according to legal regulations.
Payroll costs of the National Power Transmission Corporation
shall be determined according to regulation on personnel management, salaries,
bonuses for employees, and salaries, remunerations, bonuses for managers. Salary-related costs of the National Power Transmission
Corporation include: costs of electrical safety
regulations, health insurance, social insurance, unemployment insurance, and
union fees according to relevant legal regulations.
For other electricity transmission units, personnel costs
shall be determined according to legal regulations or using the following
formula:

Where:
a) NGTSN : Historical costs of fixed
assets for transmission expected in year N of electricity transmission units
(VND);
b) knc : Ratio of personnel costs (%).
4. Methods for determining major repair
costs
Total major repair costs expected in year N
includes major repair
costs on structures serving electricity transmission process, determined
according to the norms issued by competent authorities.
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a) Total outsourced service costs expected in year N
, including:
a1) Costs paid to organizations, individuals outside the
unit providing the following services: electricity,
water, telecommunications services, newspapers; hiring of audit consultants;
property rental; property insurance;
a2) Costs for other services with service contracts to serve
the management, operation and maintenance of power transmission stations and
lines.
b) Total outsourced service costs expected in year N (VND)
shall be determined using the following formula:

Where:
b1)
: Total transmission output expected in year
N (kWh)
b2) ĐGMN: Norm of outsourced service costs
determined according to the regulations issued by competent authorities
(VND/kWh);
b3)
:
Indexation rate in year N determined according to the provisions of point b
Clause 2 of this Article (%).
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a) Total other monetary costs expected in year N
includes: other monetary costs within norms, other monetary costs in
case of incidents, taxes, fees, land rents, shift meal costs, and other costs
stipulated by law;
b) Total other monetary costs expected in year N (VND) shall
be determined using the following formula:

Where:
b1)
:
Total transmission output expected in year N (kWh);
b2) DGK: Norm of other monetary costs determined
according to the regulations issued by competent authorities (VND/kWh);
b3)
:
Indexation rate in year N determined according to the provisions of point b
Clause 2 of this Article (%).
b4)
:
other monetary costs in case of incidents in year N (VND);
b5)
:
taxes, fees, land rents in year N (VND);
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c) Other monetary costs within norms in year N include: Work-trip costs, conference and guest reception costs;
training costs; scientific research and innovation costs; costs for
self-defense, protection, disaster prevention, fire fighting; costs for labor
safety, workwear, occupational safety, industrial and environmental hygiene;
costs for drinking water during work hours, perquisites for employees working
in night shift or in hazardous conditions, first aid for occupational
accidents, common medicine, rehabilitation for workers; recruitment costs, and
other costs stipulated by law;
d) Other monetary costs in case of incidents
: Other monetary costs used for
unforeseen and objective incidents, determined according to legal regulations.
dd) Taxes, fees, land rents in year N
shall be determined on the
basis of expectation in year N;
e) Shift meal costs in year N
shall be determined according to the applicable regulations.
7. In cases where costs within norms cannot be determined as stipulated in
Clauses 2, 4, 5, and 6 of this Article, the total major repair costs and other
costs within norms (including material costs, outsourced service costs, other
monetary costs) shall be determined using the following formula:

Where:
a)
:
total major repair cost and other costs within norms norms (including material costs,
outsourced service costs, other monetary costs) of electricity transmission
units (VND);
b) kscl,k : ratio of major repair costs
and other costs within norms (%).
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PROCEDURES FOR FORMULATING, APPRAISING, AND APPROVING
ELECTRICITY TRANSMISSION PRICE
Article 8. Procedures for approving electricity transmission
price
1. Before November 20th of each year (year N-1), electricity transmission
units shall formulate and submit their electricity transmission price in year N
to electricity authorities for appraisal; electricity authorities shall report
them to Minister of Industry and Trade for approval.
2. Electricity authorities shall review documents for electricity
transmission price within 07 days from the receipt of such documents from
electricity transmission units. In
cases where the documents are unsatisfactory as specified in Article 9 of this
Circular, electricity transmission units shall complete, supplement such documents
within 5 working days from the date of receiving the request from the
electricity authority.
3. Electricity authorities shall submit documents on electricity transmission
price in year N and solicit relevant ministries, authorities for feedback (if
any). Relevant ministries, authorities
shall respond in writing within 05 working days from the date on which they
they receive the request from electricity authorities.
4. Within 25 working days from the date on which electricity transmission
units provide satisfactory documents specified in Article 9 of this Circular,
the electricity authority shall appraise the documents on electricity
transmission price in year N or employ consultants to appraise the documents (if
necessary), and submit it to the Minister of Industry and Trade for approval.
The Minister of Industry and Trade shall approve the electricity transmission
price within 07 working days from the date of document submission.
5. During the time when the electricity transmission price in year N has
not been approved, parties may agree to make advance payment according to the
electricity transmission agreement until the electricity transmission price in
year N is approved. The price for advance payment is
based on the electricity transmission price in year N-1. Any difference between
the temporarily calculated price and the electricity transmission price of the
year shall be settled by the parties after the electricity transmission price
in year N is approved
Article 9. Documents on electricity transmission price
1. Written approval for electricity transmission price in year N.
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a) Analysis and evaluation of the implementation of
electricity transmission, transmission loss rates, and revenues in year N-1
b) Explanatory documents and calculation of normal profit in
year N (LNN) of electricity transmission units, including:
b1) Equity capital at June 30 of year N-1;
b2) Expected profit rate on equity capital in year N.
c) Explanatory documents and calculation of total capital
costs in year N
of
electricity transmission units, including:
c1) Total depreciation costs in year N: Table of fixed asset depreciation costs in year N and
detailed calculation of basic depreciation costs by fixed asset type in year N;
c) Total financial costs and exchange rate differences in
year N: Detailed calculation of financing
costs, detailed interest rates, and exchange rate differences in year N.
c) Explanatory documents and calculation of total
operational and maintenance costs in year N
of electricity transmission units,
including:
d1) Total material costs for year N: Explanatory documents and calculation of estimated material
costs in year N-1 and expected material costs in year N stipulated in Clause 2,
Article 7 of this Circular;
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d3) Total major repair costs in year N: Explanatory documents and calculation of major repair costs
stipulated in Clause 4, Article 7 of this Circular;
d4) Total outsourced service costs for year N: Explanatory documents and calculation of estimated major
repair costs in year N-1 and expected major repair costs in year N stipulated
in Clause 5, Article 7 of this Circular;
d5) Other monetary costs in year N: Explanatory documents and calculation of estimated other
monetary costs in year N-1 and expected other monetary costs in year N
stipulated in Clause 6, Article 7 of this Circular;
dd) Explanatory documents and calculation of total
electricity transmission revenue in year N of each electricity transmission
unit.
3. Supporting documents:
a) List and value of completed investment projects,
scheduled to be put into operation by December 31 of year N-1 and year N
(monthly) in accordance with the National power development planning and the
approved annual electricity transmission grid expansion plans of electricity
transmission units.
b) Table of the number of employees in year N-1 and expected
number of employees in year N;
c) Report on the implementation of major repairs of fixed
assets in year N-1 and expected major repairs in year N;
d) Financial statement in year N-2 audited by an independent
auditor: Balance sheet, business performance
report, cash flow statement, explanatory report;
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4. In case there is an audited financial statement in year N-1, the cost
data for Year N-1 specified in Clause 2 of this Article shall be updated based
on the audited financial statement for Year N-1.
5. Documents on electricity transmission price shall be made in written
form, or as a legally valid electronic message in accordance with legal regulations. Electricity transmission units shall submit 01 set of
documents in electronic form or directly submit 01 set of documents in written
form (if necessary) to the electricity authority.
Article 10. Adjustment on electricity transmission price
1. At the end of the third quarter every year, based on the fluctuations of
input parameters stipulated in Clause 3 Article 3 of this Circular, electricity
transmission units shall formulate adjusted electricity transmission price plans
and submit calculation reports to electricity authorities for appraisal in
accordance with Article 5 of this Circular.
2. Electricity authorities shall review documents on adjusted electricity
transmission price within 07 working days. In
cases where the documents on adjusted electricity transmission price are
unsatisfactory as specified in Article 5 of this Circular, the electricity
transmission unit shall complete, supplement such application within 5 working
days from the date of receiving the request from the electricity authority. Electricity authorities shall submit documents on adjusted
electricity transmission price and solicit relevant ministries, authorities for
feedback (if any). Relevant ministries, authorities
shall respond in writing within 05 working days from the date on which they
they receive the request from electricity authorities.
3. Within 25 working days from the date on which the electricity
transmission unit provide satisfactory documents as specified in Clause 5 of
this Article, the electricity authority shall appraise the documents on
adjusted electricity transmission price in year N or employ consultants to
appraise the documents (if necessary), and submit the documents to the Minister
of Industry and Trade for approval. The adjusted electricity transmission price
in year N shall be applied in year N after approval.
4. Within 7 working days from the date on which the electricity authority
submit the documents on adjusted electricity transmission price, the Minister
of Industry and Trade shall approve the adjusted electricity transmission
price.
5. Documents on adjusted electricity transmission price in year N include:
a) Written approval for adjusted electricity transmission
price;
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c) Other relevant documents (if any).
6. Documents on adjusted electricity transmission price shall be made in
written form, or as a legally valid electronic message in accordance with legal
regulations. Electricity transmission units shall
submit 01 set of documents in electronic form or directly submit 01 set of
documents in written form (if necessary) to the electricity authority.
7. Any difference between the payable based on the approved electricity
transmission price in year N and payable based on the adjusted electricity
transmission price in year N shall be settled by the parties after the approval
of the adjusted electricity transmission price in year N in accordance with the
electricity transmission agreement.
Chapter IV
IMPLEMENTATION
Article 11. electricity transmission agreements
1. Electricity transmission agreement shall be signed between and
transmission grid users.
2. Transmission grid users shall pay electricity transmission fees to the
electricity transmission units according to the signed agreement.
Article 12. Responsibilities of relevant units
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2. Responsibilities of electricity transmission units:
a) Formulate annual electricity transmission price in
accordance with this Circular;
b) Cooperate with competent authorities and relevant
electricity suppliers and recipients in negotiation and agreement on technical
design of metering systems, data collection systems for metering electricity
consumption, metering boundaries, electricity supply and delivery methods in
accordance with regulations on electricity metering issued by the Minister of
Industry and Trade to determine the electricity transmission output;
c) Negotiate with EVN about electricity transmission
agreements in accordance with regulations;
d) Formulate or employ specialized consultants to formulate
personnel cost ratio, major repair cost ratio, and other cost norms in the
calculation of electricity transmission price;
dd) Negotiate with relevant units about connection points,
investment boundaries, and operational management boundaries in accordance with
the regulations on the electricity transmission system issued by the Minister
of Industry and Trade;
e) Report to electricity authorities on adjusting electricity
transmission price in year N stipulated in Clause 3 Article 3 and Article 10 of
this Circular within 7 working days from the end of year N.
3. EVN shall review and provide feedback on documents on electricity
transmission price formulated by electricity transmission units at request of
electricity authorities for consideration and decision of the Ministry of
Industry and Trade.
Article 13. Implementation
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2. The following Circulars are abrogated:
a) Circular No. 02/2017/TT-BCT dated February 10, 2017 of
the Minister of Industry and Trade;
b) Circular No. 14/2022/TT-BCT dated September 30, 2022 of
the Minister of Industry and Trade;
3. Difficulties that arise during the implementation shall be reported to
Ministry of Industry and Trade for consideration./.
PP. MINISTER
DEPUTY MINISTER
Truong Thanh Hoai