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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.:
25/2018/TT-BCT
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Hanoi, September
12, 2018
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CIRCULAR
AMENDING
AND SUPPLEMENTING THE CIRCULAR NO. 16/2014/TT-BCT DATED MAY 29, 2014 OF THE
MINISTER OF INDUSTRY AND TRADE ON ELECTRICITY PRICES
Pursuant to the Government’s Decree No.
98/2017/ND-CP dated August 18, 2017 defining the functions, tasks, powers and organizational
structure of the Ministry of Industry and Trade;
Pursuant to the Law on electricity dated
December 03, 2004 and the Law on amendments to the Law on electricity dated
November 20, 2012;
Pursuant to the Government’s Decree No.
137/2013/ND-CP dated October 21, 2013 detailing the implementation of a
number of articles of the Law on electricity and the Law on amendments to the
Law on electricity;
Pursuant to the Decision No. 24/2017/QD-TTg
dated June 30, 2017 on mechanism for adjustment of average retail electricity
price;
Pursuant to the Decision No. 28/2014/QD-TTg
dated April 07, 2014 by the Prime Minister on structure of electricity retail
tariff;
At the request of the General Director of the
Electricity Regulatory Authority of Vietnam;
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Article 1. Amendments and supplements to the Circular No.
16/2014/TT-BCT dated May 29, 2014 of the Minister of Industry and Trade on
electricity prices (hereinafter referred to as “Circular No. 16/2014/TT-BCT”)
1. The following Point c is added to Clause 2
Article 3:
“c) With regard to an urban area or a multistory
building of which houses and apartments have been transferred to clients but
the electrical grid is not yet transferred to the competent electricity agency
because of failure to complete property statement procedures: Pending the
transfer of the electrical grid and electric consumption by clients, the buyer
and the seller shall, based on the actual consumption of electricity, carry out
an agreement on the amount of electricity to which the retail price for
domestic purpose is applied and the amount of electricity to which the retail
price for non-domestic purposes (such as production, business, service
provision, etc.) is applied; this agreement shall be used as the basis for
application of electricity prices. The price of electricity used for domestic
purpose shall be applied to total amount of electricity used by the buyer which
is determined by the amount of electricity of each level multiplied by the
number of households using electricity for domestic purpose (based on actual
purposes of electricity consumption, apartment sales agreement, record of
apartment transfer, family register, temporary residence register or document
certifying registered temporary residence granted by local police
agency)."
2. Title of Article 6 is amended and Clause 1a is
added to Clause 1 Article 6 as follows:
“Article 6. Principles for determining wholesale
price and conditions for application of wholesale price
1a. Principles for determining wholesale price
When adjusting the retail prices of electricity,
the wholesale price of electricity sold to retailers shall be also adjusted by
multiplying the decrease in the current wholesale price by the planned increase
in the consumer price index (CPI) adopted by the National Assembly in the year
of adjustment of retail prices. The Ministry of Industry and Trade shall
provide guidance for determining the decrease in wholesale prices, which is not
yet available, of new retailers buying wholesale electricity.”
3. Clause 1 Article 12 is amended as follows:
“1. The wholesale price of electricity in rural
areas shall apply to retailers of electricity to consumers in rural areas
(except the cases prescribed in Article 13, Article 14 and Article 15 of the
Circular No. 16/2014/TT-BCT and Clause 4 Article 1 hereof) for the amount of
wholesale electricity measured by the summation meter installed at the
electrical substation, regardless of the electrical substation installed by
either the buyer or the seller.”
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“Article 15a. Wholesale price of electricity in
markets
1. The wholesale price of electricity in markets
shall apply to retailers of electricity to consumers in markets in accordance
with the criteria set forth in the Government's Decree No. 02/2003/ND-CP dated
January 14, 2003 and the Government's Decree No. 114/2009/ND-CP dated December
23, 2009 (regardless of geographic locations of the market).
2. Retailers of electricity in markets are not
eligible for application of voltage-level based electricity price as regulated
in Article 4 of the Circular No. 16/2014/TT-BCT and “time of day" based
electricity price as regulated in Article 5 of the Circular No. 16/2014/TT-BCT.
3. The wholesale price of electricity in markets
shall be the retail price of electricity for business in normal hours at a
voltage level of less than 6 kV as regulated by Article 8 of the Circular No.
16/2014/TT-BCT, deducting 10.6%.”
5. Point c Clause 4 Article 10 is amended as
follows:
“c) In case tenants are students or workers (not a
household):
- If a tenant enters into a lease agreement with a
lease period of at least 12 months and has completed procedures for
registration of temporary residence, the house owner or the tenant's
representative shall enter into a power purchase agreement (accompanied by the
house owner's commitment to make electricity bill payment);
- If the lease period is less than 12 months and
the house owner fails to declare the number of occupants using electricity as
regulated, the retail price of electricity for domestic purpose at level 3 (from
101 kWh to 200 kWh) shall apply to total amount of electricity measured by the
electric meter.
If the house owner has completed procedures for
declaration of the number of occupants using electricity in the house, the
electricity seller shall decide the limit on amount of electricity based on the
temporary residence register or the document certifying registered temporary
residence granted by local police agency; Every four occupants shall be
considered as a household for deciding the limit on amount of electricity. To
be specific: 01 occupant, 02 occupants, 03 occupants and 04 occupants are
regarded as 1/4 of a household, 1/2 of a household, 3/4 of a household and a
household respectively. In case of change in the number of occupants, the house
owner shall inform the seller to adjust the limit on amount of electricity for
calculating electricity bill.
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6. The following Clause 9 is added to Article 10:
“9. If the buyer provides false information in the
declaration of the number of occupants with the aims of achieving a higher
limit on amount of electricity for domestic purpose, the seller is entitled to claim
compensation and impose penalty for breach of the power purchase agreement in
conformity with regulations in the Circular No. 27/2013/TT-BCT dated October
31, 2013 by the Ministry of Industry and Trade or its amending or superseding
documents.”
Article 2. Effect
1. This Circular shall come into force from October
26, 2018.
2. Difficulties that arise during the
implementation of this Circular should be reported to the Electricity
Regulatory Authority of Vietnam for consideration and resolution within its
competence or reporting the Ministry of Industry and Trade for solving./.
MINISTER
Tran Tuan Anh