|
MINISTRY OF
INDUSTRY AND TRADE OF VIETNAM
-------
|
SOCIALIST
REPUBLIC OF VIETNAM
Independence - Freedom – Happiness
---------------
|
|
No. 05/VBHN-BCT
|
Hanoi, February
01, 2023
|
CIRCULAR
METHODS OF
DETERMINING ELECTRICITY GENERATION PRICES AND POWER PURCHASE AGREEMENT PRICES
Circular No. 57/2020/TT-BCT dated December
31, 2020 of the Minister of Industry and Trade on methods of determining
electricity sale prices and procedures for inspecting power purchase
agreements, which comes into force from February 22, 2021, is amended by:
1. Circular No. 31/2022/TT-BCT dated
November 08, 2022 of the Minister of Industry and Trade on amendments to
Circular No. 57/2014/TT-BCT dated December 19, 2014 of the Minister of Industry
and Trade on methods and procedures for developing, promulgating electricity
generation price range and Circular No. 57/2020/TT-BCT dated December 31, 2020
of the Minister of Industry and Trade on methods for determining electricity
generation price and power purchase agreement price, which comes into force
from December 28, 2022.
2. Circular No. 02/2023/TT-BCT dated
January 19, 2023 of the Minister of Industry and Trade on annulment of certain
regulations in Circular No. 57/2020/TT-BCT dated December 31, 2020 of the
Minister of Industry and Trade on methods for determining electricity
generation price and power purchase agreement price, which comes into force
from January 19, 2023.
Pursuant to Law on Electricity dated
December 3, 2004 and Law on amendments to Law on Electricity dated November 20,
2012;
Pursuant to Decree No. 98/2017/ND-CP dated
August 18, 2017 of the Government of Vietnam on function, tasks, powers and
organizational structure of the Ministry of Industry and Trade of Vietnam;
Pursuant to Decree No. 137/2013/ND-CP dated
October 21, 2013 of the Government of Vietnam elaborating implementation of
certain Articles of the Law on Electricity and the Law on amendments to certain
Articles of the Law on Electricity;
...
...
...
Please sign up or sign in to your
TVPL Pro Membership to see English documents.
Minister of Industry and Trade hereby
promulgates a Circular on methods of determining electricity sale prices and
procedures for inspecting power purchase agreements. 1
Chapter I
GENERAL PROVISIONS
Article 1. Scope and regulated entities
1. This Circular provides for:
a) Methods of determining electricity sale
prices and power purchase agreement price for various forms of power plants
specified under Clause 2 of this Article.
b) Procedures for conducting
self-inspection of power purchase agreements.
2. This Circular applies to:
a) Power plants connecting to national
electrical grids with more than 30MW of gross installed capacity and power
plants with 30MW of installed capacity or lower participating in electricity
market on a voluntary basis;
...
...
...
Please sign up or sign in to your
TVPL Pro Membership to see English documents.
c) This Circular does not apply to small
hydroelectric power plants adopting schedules of avoidable costs,
multi-objective strategic hydroelectric power plants independent power plants
invested in form of BOT, power plants providing solely auxiliary services,
biomass power plants, wind power stations, solar power plants, waste-to-energy
plants and municipal solid waste-to-energy plants;
Other power plants not specified by Prime
Minister and Ministry of Industry and Trade shall conform to Article 9 of this
Circular.
Article 2. Term interpretation
For the purposes of this Circular, the
terms below are construed as follows:
1. “Seller” refers to a
generating entity owning power plants.
2. “Buyer” refers to Vietnam
Electricity (EVN) (or representatives thereof by authorization), Northern Power
Corporation, Central Power Corporation, Southern Power Corporation, Hanoi Power
Corporation, Ho Chi Minh Power Corporation, primary energy consumers and other
electricity traders according to regulations of power market.
3. “project developer” refers to an
organization or individual directly managing, utilizing capital to invest in
power plant construction projects, power line and electrical substation
construction investment projects.
4. “connection costs” refer to costs for
construction of power lines and electrical substations from power plants to
connection points.
5. “specific connection costs” refer to costs
implemented by project developers or allocated for:
...
...
...
Please sign up or sign in to your
TVPL Pro Membership to see English documents.
b) Constructing power lines and electrical
substations from power plants to connection points according to agreements
between project developers and the Buyer.
6. “connection point” refers to a point
at which electrical equipment, electrical grids and power plants are connected
to national electrical grid. Depending on electrical grid structure and
connecting lines, connection points are determined to be:
- The final points of ceramic
insulators holding transmission lines connecting to disconnector switches of
power stations or power plants in case of overhead power lines.
- The ceramic insulators of
disconnector switches of power stations or power plants in case of underground
cable.
In case of connection points other than
those specified above, substitute connection points shall be agreed upon by the
Seller and power distributors or transmitters.
7. “delivered and received electricity”
refers
to electricity provided to the Buyer by the Seller to serve payment for
electricity sale between the Buyer and the Seller.
8. “generating entity” refers to an
organization or individual owning at least a power plant as per Vietnam laws.
9. “electrical system and national
electricity market operator” (hereinafter referred to as “operator”) refers to National
Load Dispatch Center or other load dispatch centers depending on level of
development of electricity market.
10. “parties” refer to the Buyer
and the Seller under power purchase agreements.
...
...
...
Please sign up or sign in to your
TVPL Pro Membership to see English documents.
12. “power purchase
agreement (PPA)” refers to a contract serving power purchase of each power
plant and is specified under Annex 3 of this Circular.
13. “gas sale and
purchase agreement (GSPA)” refers to a gas purchase agreement between gas seller
and mine owner to purchase natural gas extracted domestically and provide to
gas buyer (downstream consumers).
14. “gas sale agreement
(GSA)” refers
to gas sale agreement between gas seller and downstream consumers.
15. “fuel (coal,
natural gas, LGN) sale contract” refers to an agreement between a generating
entity and a fuel trading entity to provide fuel for power plants, is signed
according to applicable law and guarantees legitimate fuel origin, competitive
price and transparency.
16. “fuel (coal,
natural gas, LGN) transportation agreement” refers to an agreement between a
generating entity or a fuel trading entity and a fuel transport service
provider to transport fuel to power plants, is signed according to applicable
law and guarantees competitive price and transparency.
17. “base year” refers to a year in
which total investment or total revised project investment for calculating
electricity generation price is approved.
18. “other power
plants” refer
to power plants not specified under Points a and c Clause 2 Article 1 hereof.
19. “new power plants” refer to power
plants that have not signed first time PPA.
20. “construction
commencement date” refers to the date on which the Seller is eligible for
commencing construction according to Construction Law.
...
...
...
Please sign up or sign in to your
TVPL Pro Membership to see English documents.
22. “total investment” refers to total
construction investment of a project identified according to applicable laws
and satisfactory to fundamental design and other details under construction
investment feasibility reports. Total investment includes: compensation,
assistance and relocation costs (if any); construction cost; equipment cost;
project management cost; construction investment and consultancy cost; other
costs; backup costs for additional workload and inflation.
23. “total revised
investment” refers to total investment valid at the time of negotiating
electricity price, in which total investment is revised to calculate
electricity price when revising construction investment projects in following
cases:
+ Natural disasters, environmental
emergencies, conflicts, fire and other force majeure;
+ Appearance of factors that introduce
higher effectiveness for the projects once project developers have proven the
financial and socio-economic efficiency brought upon by revising the projects;
+ Direct impact on the projects due to
changes to construction planning;
+ Construction price indices publicized by
Ministry of Construction, People’s Committees of provinces during project
execution period exceeding construction price indices employed to calculate for
inflation scenario under approved total project investment;
+ Project revision as a result of
investment guideline revision.
24. “investment for
settlement” refers to all legitimate costs required in investment process
to bring projects into use. Legitimate costs are all costs within the scope of
approved projects, designs, estimates; construction contracts signed as per the
law, including approved amendments thereto. Investment for settlement must be
within total approved (or revised) investment as per the law.
25. “Circular No.
56/2014/TT-BCT” refers to Circular No. 56/2014/TT-BCT dated December 19, 2014
of Minister of Industry and Trade on methods of determining electricity
generation price; procedures for inspecting power purchase agreements.
...
...
...
Please sign up or sign in to your
TVPL Pro Membership to see English documents.
METHODS OF DETERMINING ELECTRICITY
GENERATION PRICE
Section 1. METHODS OF DETERMINING
ELECTRICITY GENERATION PRICE FOR NEW POWER PLANTS
Article 3. Principles of determining
electricity generation price
1. Electricity generation price of
power plants shall be developed on the basis of:
a) Legitimate costs of project developers
throughout economic life of projects;
b) Internal rate of return (IRR), which does
not exceed 12%.
2. Electricity generation price of
power plants consists of:
a) PPA price: Agreed upon by both parties
and developed according to Article 4 of this Circular;
b) Specific connection price: Agreed upon
by both parties and determined according to Article 8 of this Circular.
...
...
...
Please sign up or sign in to your
TVPL Pro Membership to see English documents.
4.2 Power purchase agreement
price for comparing with electricity generation price range in the base year
a) Power purchase agreement (PPA) price
must be within price range for electricity generation in the base year of power
plants issued by Minister of Industry and Trade, in which, PPA price of thermal
power plants for comparing with price range for electricity generation in the
base year shall be calculated on the basis of cost components corresponding to
cost components serving calculation of price range for electricity generation.
In case the base year of a thermal power
plant lacks electricity generation price range, PPA price of the thermal power
plant shall be calculated on the basis of corresponding cost components in
order to compare with electricity generation price range of the latest year
applied to the power plant;
b) In case projects have commenced without
entering into PPA before the effective date hereof:
PPA price must vary within electricity
price range in the PPA negotiation year, in which PPA price of thermal power
plants for the purpose of comparing with electricity generation price range
shall be calculated on the basis of cost components corresponding to cost
components serving calculation of electricity generation price range.
Article 4. Methods of determining PPA price
in the base year of power plants
PPA price, or PC, (VND/kWh) shall be
determined using following formula:
PC = PCD
+ PBD
1. PCD (VND/kWh) refers to
fixed price in the base year and is determined using following formula:
...
...
...
Please sign up or sign in to your
TVPL Pro Membership to see English documents.
Where:
FC: Fixed cost determined under Article 5
of this Circular (VND/kWh);
FOMCb: Operational and
maintenance costs in the base year determined under Article 6 of this Circular
(VND/kWh);
2. PBĐ (VND/kWh) refers to
variable prices in the base year.
a) For thermal power plants, PBD shall be
determined using following formula:
Where:
: Variable price revised according to
variation of cost of primary fuel (coal, natural gas, LNG) of power plants in
the base year, determined using method under Clause 1 Article 7 of this
Circular (VND/kWh);
: Variable price revised according to
variation of cost of secondary fuel (oil) of power plants in the base year,
determined using method under Clause 2 Article 7 of this Circular (VND/kWh);
...
...
...
Please sign up or sign in to your
TVPL Pro Membership to see English documents.
: Transportation cost for primary fuel for
generating electricity in the base year, determined using method under Clause 4
Article 7 of this Circular (VND/kWh).
b) For thermal power plants, regular
maintenance cost in the base year is calculated in operational and maintenance
cost according to major repair cost and other costs of the base year, thus, PBD
equals 0.
3. Costs for experimenting, testing
operation and inspecting for acceptance of power plants:
a) For costs for experimenting, testing
operation and inspecting for acceptance deriving before commercial operation
date (COD): payment for such costs before the COD shall be agreed upon by both
parties on the basis of total approved project investment;
b) For costs for test operation deriving
during operation of power plants: Agreed upon by both parties.
Article 5. Methods of determining average
fixed cost of power plants
1. Average fixed cost (FC) of power
plants is determined on the basis of financial analysis of projects in
Schedules 1 and 2 under Annex 2 attached to this Circular. Input indices to
determined FC of power plants are determined according to Clause 2 of this
Article.
2. Input indices used for calculating
FC of power plants
a) Total investment:
...
...
...
Please sign up or sign in to your
TVPL Pro Membership to see English documents.
- Power plants;
- Infrastructure, wharfs for power
plants, LNG import ports (for power plants utilizing LNG), other relevant costs
and costs allocated to projects (if any);
Specific connection costs shall conform to
Article 8 of this Circular.
b) Economic life: Conform to Annex 1 of
this Circular, unless otherwise prescribed by competent authority;
c) Electricity generated on average over
multiple years at generator terminals:
- For thermal power plants: Determine
according to capacity of generator terminals according to approved design and
average number of hour in which power plants are operating at maximum capacity
(Tmax) over several years. Tmax of power plants is
determined according to approved design but must not be lower than Tmax specified
under Annex 1 hereof, unless otherwise approved by competent authority in
writing. Average capacity
degradation rate for economic life of power plants shall be agreed upon by both
parties on the basis of technical documents of equipment manufacturers (kWh);
- For hydroelectric power plants:
Determine according to approved fundamental design or written approval of
competent agencies (kWh).
d) Percentage of used electricity and
depreciation of step-up transformers of power plants, depreciation of power
lines from step-up transformers of power plants to points of connection (if
any): Is a value smaller than value determined according to approved
fundamental design of power plants or according to technical documents of
equipment manufacturers (%);
dd) Period in which depreciation of each
primary fixed asset category is accounted for: Determined on the basis of
period in which depreciation of each primary fixed asset category is accounted
for based on the period regulated by Ministry of Finance from time to time or
based on written permission of competent regulatory authority (if any) (year);
...
...
...
Please sign up or sign in to your
TVPL Pro Membership to see English documents.
Determined according to decision on
approving investment projects and capital mobilization situation at the time of
negotiating, conforming to regulations and law issued by competent authority. Minimum owner’s
equity shall be 15% of total investment of projects;
g) Interest rate and repayment period
during operation period: Based on loan agreements, documents between project
developers and credit institutions, lending banks;
h) Corporate income tax rate, other taxes,
fees: Determined according to relevant law provisions.
Article 6. Methods of determining
operational and maintenance costs of power plants
Operational and maintenance cost in the
base year FOMCb (VND/kWh) is determined using following formula:
Where:
: Operational and maintenance cost according
to major repair cost and other costs of the base year, determined according to
Clause 1 of this Article (VND/kWh);
: Operational and maintenance cost according
to personnel cost in the base year, determined according to Clause 2 of this
Article (VND/kWh).
...
...
...
Please sign up or sign in to your
TVPL Pro Membership to see English documents.
(VND/kWh)
Where:
TCscl: : Total major repair cost
and other costs in the base year including major repair cost, secondary
material costs, externally purchased material cost, other monetary cost (VND).
In case of failure to determine total major
repair cost and other costs after using formula under this Clause, TCscl
in the base year is calculated using following formula:
TCscl =
VĐTXD+TB x kscl
Where:
VĐTXD+TB : Total construction
costs and equipment costs determined on the basis of total investment specified
under Point a Clause 2 Article 5 of this Circular (VND);
kscl: Percentage of major repair
cost and other costs (%) of power plants agreed upon by both parties and not
exceeding value under Annex 1 hereof;
AGN : Average power generated
over multiple years at delivery points between the Buyer and the Seller (kWH) and
calculated as follows:
...
...
...
Please sign up or sign in to your
TVPL Pro Membership to see English documents.
Where:
Pt: Generator terminal capacity
under approved design (kW);
Tmax : Average hours in which
power plants operate at maximum capacity, determined according to Point c
Clause 2 Article 5 hereof (hour);
ttd: Percentage of electricity
used and depreciation of step-up transformers of power plants, power line
depreciation from step-up transformers to connection points with national
electrical grids, determined according to Point d Clause 2 Article 5 hereof
(%);
kCS: Average percentage of
capacity degradation for economic life of power plants determined according to
Point c Clause 2 Article 5 hereof (%).
- For hydroelectricity power plants:
Where:
...
...
...
Please sign up or sign in to your
TVPL Pro Membership to see English documents.
ttd: Percentage of
electricity used and depreciation of step-up transformers of power plants,
power line depreciation from step-up transformers to connection points with national
electrical grids, determined according to Point d Clause 2 Article 5 hereof
(%).
2. Operational and maintenance cost
based on personnel cost in the base year 
(VND/kWh) is determined using following
formula:
(VND/kWh)
Where:
TCnc: Total personnel cost in
the base year include cost for salary, social insurance, health insurance,
union fee and other allowances (VND);
Total personnel cost TCnc of the
base year is determined on the basis of total personnel cost of power plants
and calculation to covert to the base year as follows:
- In case salary for calculating
personnel cost of power plants equals region-based minimum wage of the year in
which electricity price is calculated: Conversion rate conforms to
region-based minimum wage;
- In case of inability to determine
total personnel cost as specified above: Adopt following formula to calculate
the total personnel cost TCnc of the base year:
TCnc=
VĐTXD+TB x knc
...
...
...
Please sign up or sign in to your
TVPL Pro Membership to see English documents.
VĐTXD+TB : Total construction
costs and equipment costs determined on the basis of total investment specified
under Point a Clause 2 Article 5 of this Circular (VND);
knc: Percentage of personnel
cost (%) of power plants agreed upon by both parties without exceeding value
under Annex 1 hereof;
AGN : Average power generated
over multiple years at delivery points between the Buyer and the seller and
calculated according to Clause 1 of this Article (kWh);
Article 7. Methods of determining variable
price of thermal power plants
Variable price, PBD, of thermal
power plants in the base year (VND/kWh) is determined using following formula:
Where:
: Variable price revised depending on
variation of primary fuel price of power plants in the base year, determined
using method under Clause 1 of this Article (VND/kWh);
: Variable price adjusted depending on
variation of secondary fuel price (oil) of power plants in the base year,
determined using method under Clause 2 of this Article (VND/kWh);
...
...
...
Please sign up or sign in to your
TVPL Pro Membership to see English documents.
: Transportation cost for primary fuel for
generating electricity in the base year, determined using method under Clause 4
of this Article (VND/kWh).
1. Variable price adjusted depending on
variation of primary fuel price of power plants in the base year 
, is determined using the following
formula:
(VND/kWh)
Where:
: Average net heat loss rate of primary fuel
agreed upon by both parties and not greater than fundamental design/technical
design corresponding to total investment for calculation of electricity price
or specifications of equipment manufacturers, determined corresponding to load
level under Annex 1 hereof;
: Primary fuel price in the base year is
determined as follows: Primary fuel price in the base year is calculated by
weighted average of PPA or written agreements (VAT not included), unit of
measurement: VND/kcal or VND/kJ or VND/BTU.
2. Variable price adjusted depending on
variation of secondary fuel price of power plants in the base year 
, is determined using the
following formula:
(VND/kWh)
Where:
...
...
...
Please sign up or sign in to your
TVPL Pro Membership to see English documents.
: Price of secondary fuel (oil) in the base
year includes costs for transporting to power plants and other fees as per the
law (VAT not included) (VND/kg).
3.3 Variable price adjusted
depending on other variations of power plants in the base year 
is determined using the following
formula:
(VND/kWh)
Where:
: Total annual auxiliary material cost of power
plants determined based on quantity and unit price of auxiliary materials used
for electricity generation in the base year (VND); If data required
for the calculation of total annual auxiliary material costs in the base year
is insufficient, the costs components can be calculated using data from a year
with sufficient data and converted to the base year at a rate of 2,5%/year;
Ckd: Total initiation costs
include fuel costs, other costs serving initiation (VND); number of initiation
sessions agreed upon by both parties on the basis of electrical grid demand and
operational characteristics of power plants; If data required for the calculation of
total initiation costs in the base year is insufficient, these costs can be
calculated using data from a year with sufficient data and converted to the
base year at a rate of 2,5%/year;
Ck: Annual regular repair and
maintenance costs including regular repair and maintenance costs calculated on
the basis of total construction and equipment investment of power plants,
percentage of regular repair and maintenance costs agreed upon by both parties
without exceeding value under Annex 1 hereof and costs for dredging port entry
agreed upon by both parties (if any) (VND). If data required for the calculation of
navigation channel dredging costs in the base year is insufficient, these costs
can be calculated using data from a year with sufficient data and converted to
the base year at a rate of 2,5%/year;
AGN : Average electricity
generated over multiple years at delivery points between the Buyer and the
Seller and calculated according to Clause 1 Article 6 hereof (kWh).
4. Transportation cost for primary fuel
of power plants in the base year 
is determined using following formula:
...
...
...
Please sign up or sign in to your
TVPL Pro Membership to see English documents.
Where:
: Average net heat loss rate determined
according to Clause 1 Article 7 hereof.
: Transportation price for primary fuel for
generating electricity in the base year (VAT not included), unit of
measurement: VND/kcal or VND/kJ or VND/BTU and determined as follows:
- For coal-fired thermal power plants:
weighted average according to coal transportation agreements or written
agreements;
- For gas-fired thermal power plants:
weighted average according to fees for collecting, transporting and
distributing gas approved by competent authority as per the law or according to
written agreements.
- For LNG-fired thermal power plants:
weighted average according to LNG transportation agreements, LNG storage,
regasification and distribution contracts (if any) or other written agreements.
For fuel sale contracts in which primary
fuel price, 
, has
inlcuded transportation price for primary fuel, fees for collection,
transportation, distribution, storage and regasification, respective 
shall equal 0.
Article 8. Methods of determining specific
connection prices of power plants
1. Specific connection prices (PDT)
serve to salvage specific connection costs implemented by project developers of
power plants or is allocated and agreed upon with the Buyer on the basis of
specific connection costs, investment capital components, loan interest during
operation period according to loan agreements, costs for managing, operating
and maintaining and other factors according to agreement between both parties
to ensure that project developers recover costs for constructing, managing,
operating and maintaining as per the law. Unit of measurement: VND/kWh or VND/kW or
VND/month.
...
...
...
Please sign up or sign in to your
TVPL Pro Membership to see English documents.
3. Specific connection costs shall be
considered legitimate costs and included in electricity purchase costs in formulating
average electricity retail pricing plans of EVN.
Article 9. Methods of determining
electricity generation price for other power plants
For other power plants, based on principles
under Section 1 of this Chapter, the Buyer and the Seller shall develop
electricity generation pricing plans and PPA depending on practical situations
of power plants, request Electricity Regulatory Authority of Vietnam and report
to Ministry of Industry and Trade for consideration and decision.
Section 2. METHODS OF DETERMINING
ELECTRICITY GENERATION PRICE OF POWER PLANTS ENTERING COMMERCIAL OPERATION
Article 10. Methods of determining
electricity generation price for power plants with expired PPAs and power
plants with unexpired economic life
For power plants with expired PPAs and
unexpired economic life: Electricity generation price under current PPAs shall
continue to apply to subsequent years until economic life expires.
Article 11. Methods of determining
electricity generation price for power plants with expired economic life
1. Fixed price of power plants with
expired economic life is determined in a manner that enables power plants to
recover costs serving electricity production, according to period for
calculation shall conform to frequency of major repair of primary equipment and
according to agreement on reasonable interest. In case competent regulatory authority
approves period for calculation in writing, comply with written approval of
competent regulatory authority.
2. Variable price of power plants with
expired economic life is determined according to Article 7 hereof.
...
...
...
Please sign up or sign in to your
TVPL Pro Membership to see English documents.
Article 12. Methods of determining electricity
generation price for power plants under renegotiation based on settled
investment capital
For power plants where both parties have
the rights to renegotiate electricity price based on settled investment capital
according to Clause 2 Article 28 hereof: After determining settled investment
capital, the Seller is responsible for sending documents related to settled
investment capital to the Buyer. Both parties shall renegotiate electricity
price based on following principles:
1. Methods of determining PPA value
according to Article 4 hereof.
2. Indicators for calculating PPA price
shall conform to Article 4 hereof and input indicators are updated at the same
time settled investment capital is determined.
3. PPA price for comparing with price
range for electricity generation must be within the price range of the year in
which settled investment capital is approved.
4. Electricity generation price shall
be applied from the commercial operation date of power plants, fixed price of
each year according to Article 13 hereof; do not revise annual fixed price of
years preceding the date on which parties sign contracts for revising PPA based
on electricity price identified on the basis of settled investment capital.
5.4 The base year of power
plants negotiating electricity price under finalized investment capital shall
be the year in which the investment capital is finalized.
Section 3. METHODS OF DETERMINING POWER
PURCHASE AGREEMENT VALUE BY EACH YEAR OF PPAs
Article 13. Principles of determining
annual fixed price of power purchase agreements
...
...
...
Please sign up or sign in to your
TVPL Pro Membership to see English documents.
In case both parties agree on converting
average fixed price to fixed price of each year, these fixed prices must be
determined in a manner satisfactory to Clause 2 of this Article.
2.5 On the basis of practical
loan capacity and financial capacity of projects, both parties shall negotiate
about average fixed price of power plants and convert to annual fixed cost (FCj:
fixed cost of year j) as long as average fixed cost does not change compared to
mutually agreed value and following principles are complied:
a) Financial discount rate when calculating
annual fixed price agreed by both parties using the IRR of power plants;
b) Projects developers shall return loans
for investment and construction of power plants according to deadline for
repaying loan capital.
Article 14. Principles of adjusting
electricity generation price of each year under power purchase agreements
1. Operational and maintenance costs of
power plants shall be adjusted according to following principles:
a) Operational and maintenance costs
according to major repair costs and other costs shall be adjusted based on
inflation rate of average costs under Annex 1 hereof. Both parties shall
conduct research, propose solutions for adjusting operational and maintenance
costs according to major repair costs and other costs for items in foreign
currency;
b) Operational and maintenance costs
according to personnel costs shall be adjusted based on variation of minimum
region-based wages at the time of payment or based on CPI publicized by General
Statistics Office of Vietnam without exceeding 2.5%/year.
2. On an annual basis, based on total
loan in foreign currency, plans for repaying loan in foreign currency, figures
on principle debt paid in practice, conversion rate agreed upon by both parties
in electricity pricing plan and conversion rate of the previous year, both
parties shall calculate difference in rates, propose payment solutions, send to
Electricity Regulatory Authority of Vietnam and request Ministry of Industry
and Trade to consider approving payment solutions.
...
...
...
Please sign up or sign in to your
TVPL Pro Membership to see English documents.
Where:
m: Number of foreign currency in
electricity pricing plan on which both parties agree (number);
n: Number of times principle debt in
foreign currency i paid in calculating year (time);
Di,j: Number of
principle debt in foreign currency paid for the jth time foreign
currency i in practice in calculating year. Principle debt in foreign currency i paid
in practice in calculating year must not be greater than principle debt in
foreign currency i in respective year in the electricity pricing plan agreed
upon by both parties;
Conversion rate in the jth
payment of foreign currency i in the year (.../VND);
Base conversion rate of foreign currency i
agreed upon by both parties under the electricity pricing plan (.../VND).
Article 15. Methods of determining PPA
price of power plants at the time of payment
PPA price of a power plant at the time of
paying electricity bill in month t, year j: PC,j,t (VND/kWh) is
determined using following formula:
...
...
...
Please sign up or sign in to your
TVPL Pro Membership to see English documents.
Where:
FCj: Fixed cost in year j
determined according to Clause 1 of this Article (VND/kWh);
FOMCj,t: Operational and
maintenance cost in month t, year j determined according to Clause 2 of this
Article (VND/kWh);
: Variable price in month t, year j
determined according to Clause 3 of this Article (VND/kWh).
1. Fixed cost in year j FCj
determined according to Article 13 hereof.
2. Operational and maintenance cost in
month t, year j is determined using following formula:
Where:
: Operational and maintenance cost according
to the major repair cost and other costs in year j (VND/kWh);
...
...
...
Please sign up or sign in to your
TVPL Pro Membership to see English documents.
a) Operational and maintenance cost
according to the major repair cost and other costs 
, is determined using the following formula:
Where:
: Operational and maintenance cost according
to the major repair cost and other costs in the base year determined according
to Clause 1 Article 6 hereof;
i: Inflation rate of the operational and
maintenance cost according to the major repair cost and other costs specified
under Annex1 hereof;
Order of payment year from the base year
(for base year, 
=1)
b) Operational and maintenance cost
according to the personnel cost in month t, year j 
, is determined as follows:
- In case the wage calculated in the
electricity pricing plan equal the minimum region-based wage, apply the
following formula:
...
...
...
Please sign up or sign in to your
TVPL Pro Membership to see English documents.
: Operational and maintenance cost according
to the personnel cost in the base year determined according to Clause 2 Article
6 hereof;
: Minimum region-based wage at the time of
payment in month t, year j (VND/month);
: Minimum region-based wage in the base year
(VND/month).
- In case the total personnel cost TCnc
is calculated based on construction and equipment investment, apply following
formula (VND/kWh):
Where:
: Operational and maintenance cost
according to the personnel cost in the base year, determined according to
Clause 2 Article 6 hereof;
: Inflation rate of the operational and
maintenance cost according to the personnel cost, determined based on consumer
price index (CPI) in year (j-1) compared to year (j-2) publicized by General
Statistics Office of Vietnam in December of year (j-1) without exceeding
2.5%/year;
Order of payment year starting from the
base year (for the base year: = 1, 
= 0).
...
...
...
Please sign up or sign in to your
TVPL Pro Membership to see English documents.
Where:
: Variable price adjusted according to
variation of the primary fuel price of the thermal power plant in month t, year
j, determined according to Point a of this Clause (VND/kWh);
: Variable price adjusted according to
variation of the secondary fuel (oil) price of the thermal power plant in month
t, year j, determined according to Point b of this Clause (VND/kWh);
: Variable price adjusted according to
variation of other variations of the power plant in the base year, determined
according to Point c of this Clause (VND/kWh).
: Transportation cost for primary fuel of the
power plant in month t, year j, determined according to Point d of this Clause
(VND/kWh).
a) Variable price adjusted according to
variation of the primary fuel price of the power plant in month t, year j 
, is determined using the
following formula:
Where:
...
...
...
Please sign up or sign in to your
TVPL Pro Membership to see English documents.
kHR: Coefficient for average net
heat loss rate for actual operating conditions depending on temperature of
coolant and ambient temperature agreed upon by both parties;
kHS: Percentage of capacity
reduction in year j (%);
Year of commercial operation of the power
plant;
: Primary fuel price for electricity
generation at the time of payment in month t, year j, determined by weighted
average based on quantity of invoices under fuel sale contracts at the time of
calculation.
b) Variable price adjusted according to
variation of the secondary fuel (oil) price of the power plant in month t, year
j 
, is determined
using the following formula:
Where:
: Variable price adjusted according to
variation of secondary fuel (oil) prices of power plants in the base year,
determined under Clause 2 Article 7 hereof;
kHS: Percentage of capacity
reduction in year j (%);
...
...
...
Please sign up or sign in to your
TVPL Pro Membership to see English documents.
: Secondary fuel (oil) price for electricity
generation including the fee for transporting to the power plant at the time of
payment in month t, year j;
: Secondary fuel (oil) price for electricity
generation in the base year determined under Clause 2 Article 7 hereof.
c)6 Variable cost adjusted
according to other variations of the power plant in the year j 
, is determined using the following
formula:
Where:
: Variable cost adjusted according to other
variations of the power plant in the base year determined under Clause 3
Article 7 hereof;
i: Inflation rate of the variable price
adjusted according to other variations based on the rate under Appendix I
hereof;
kHS: Percentage of capacity
reduction in year j (%);
Year of commercial operation of the power
plant (starting from commercial commencement date of the power plant). The first
commercial operation year of the power plant starts from commercial
commencement date of the first genset to the end of the first commercial
operation year, 
);
...
...
...
Please sign up or sign in to your
TVPL Pro Membership to see English documents.
d) Fee for transporting primary fuel of the
power plant in month t, year j 
(VND/kWh), is determined using following
formula:
Where:
: Average net heat loss rate determined
according to Clause 1 Article 7 hereof.
kHR: Coefficient for average net
heat loss rate for actual operating conditions depending on temperature of
coolant and ambient temperature agreed upon by both parties;
kHS: Percentage of capacity
reduction in year j (%);
Year of commercial operation of the power
plant;
: Fee for transporting primary fuel at the
time of payment in month t, year j, determined by weighted average based on
quantity of invoices according to fuel transport agreements, LNG storage,
regasification and distribution contracts (if any) (VATnot included), to be
specific:
- For coal-fired thermal power plants:
weighted average according to coal transportation agreements;
...
...
...
Please sign up or sign in to your
TVPL Pro Membership to see English documents.
- For LNG-fired thermal power plants:
weighted average according to LNG transportation agreements, LNG storage,
regasification and distribution contracts (if any).
For fuel sale contracts already including
primary fuel transportation prices, primary fuel transportation prices 
shall equal 0.
4. Total cost for initiation in month t
of the thermal power plant 
(VND), is determined using following
formula:
Where:
u: Genset order of the power plant;
U: Number of gensets of the power plant;
f: Type of fuel (for primary fuel f = 1;
secondary fuel f = 2);
s: Initiation status of genset;
...
...
...
Please sign up or sign in to your
TVPL Pro Membership to see English documents.
pu,f,s: Number of
ignitions of genset u, use fuel f, in initiation status s in the month;
Mu,f,s: Consumption mass of coal
fuel (kg) for coal-fired power or dissipated heat of gas (BTU) for gas turbines
for a single instance of initiation of genset u, using fuel f in initiation
status s;
Du,f,s: Fuel unit price for a
single instance of initiating genset u, using fuel f, in initiation status s,
determined in VND/kg for coal and VND/BTU for gas;
: Total of other costs for a single
instance of initiation, calculated in VND.
Payment for the initiation cost of the
thermal power plant shall comply with regulations on electricity market
promulgated by Ministry of Industry and Trade.
Chapter III
PROCEDURES FOR NEGOTIATING AND
INSPECTING OF POWER PURCHASE AGREEMENTS
Article 16. Adoption of model power
purchase agreements
1. For new power plants and power
plants negotiating according to Article 10 hereof, on the basis of model power
purchase agreements under Annex 3 hereof, the Buyers and the Sellers shall
negotiate and add clauses depending on practical situations of power plants (if
necessary).
...
...
...
Please sign up or sign in to your
TVPL Pro Membership to see English documents.
Article 17. Procedures for negotiating
power purchase agreements
1. 7 (annulled)
2. The Sellers are responsible for
preparing applications for power purchase agreement negotiation and send them
to the Buyers for negotiation and adoption of procedures for signing power
purchase agreements.
3. Within 15 working days from the date
on which adequate written applications from project developers are received,
the Buyers are responsible for organizing power purchase agreement negotiation
with the Sellers. At the end of negotiation process, both parties shall initial
the draft power purchase agreements.
4. After draft power purchase
agreements have been initialed, the Buyers and the Sellers shall agree and be
responsible for reporting to Electricity Regulatory Authority of Vietnam.
Article 18. Applications for power purchase
agreement negotiation
1. Applications for power purchase
agreement negotiation applied to new power plants include but are not limited
to:
a) Official Dispatches requesting power
purchase agreement negotiation;
b) Draft power purchase agreements using
form under Annex 3 hereof and proposed revisions depending on practical
conditions of power plants (if any);
...
...
...
Please sign up or sign in to your
TVPL Pro Membership to see English documents.
d) Decisions on investing in construction,
attached explanations and reports on appraisal of power plant investment
projects of independent consultants, enclosures;
dd) Decisions on approving total investment
for the first time or revised total investment of projects valid at the time of
negotiating electricity price and primary contents in fundamental designs of
investment projects relating to power purchase agreement negotiation, appraisal
reports on fundamental designs;
e) Agreements on connecting power plants to
national grids together with connection solutions; agreements on SCADA/EMS and
regulating information systems; agreements on protective and automatic relay
systems;
g) Loan agreements or documents between
project developers and creditors, plans or facts of disbursement of loans;
h) Fuel supply contracts for power plants,
specifying fuel prices for electricity generation, fuel transportation costs,
LNG storage, regasification and distribution costs and additional costs, fuel
delivery points and deadlines for fuel supply;
i) Documents on calculating capacity and
electricity loss of transformers and power lines from step-up transformers to
connection points with national electrical grids and documents on electricity
used in power plants;
k) Documents on calculating net heat loss
rates for thermal power plants;
l) Power sales pricing plans determined
according to Section 1 and Section 3 Chapter II hereof;
m) Other relevant documents.
...
...
...
Please sign up or sign in to your
TVPL Pro Membership to see English documents.
a) Official Dispatches requesting power
purchase agreement negotiation;
b) Draft power purchase agreements using
form under Annex 3 hereof;
c) Available documents on power purchase
agreements;
d) Technical documentation of power plants,
technical specifications of SCADA/EMS systems, protective and automatic relays,
machine P-Q operational characteristics;
dd) Fuel supply contracts for power plants;
e) Power sales pricing plans of power
plants determined according to Section 1, Section 2, and Section 3 Chapter II
hereof;
g) Audited financial statements of power
plants of the nearest year from the date of negotiating power purchase
agreements.
Article 19. Procedures for inspecting power
purchase agreements
1. After negotiating power purchase
agreements, both parties shall agree and be responsible for submitting reports
on inspection of power purchase agreements and documents under Article 18
hereof to Electricity Regulatory Authority of Vietnam.
...
...
...
Please sign up or sign in to your
TVPL Pro Membership to see English documents.
3. Within 30 working days from the date
on which adequate applications for inspection of power purchase agreements are
received, Electricity Regulatory Authority of Vietnam is responsible for
examining and providing feedback on power purchase agreements.
4. Within 30 working days from the date
on which feedback on power purchase agreements are provided, both parties are
responsible for officially signing the power purchase agreements. In case Electricity
Regulatory Authority of Vietnam fails to provide feedback on power purchase
agreements before the deadline under Clause 3 of this Article, both parties may
officially sign the power purchase agreements based on clauses agreed upon. The Buyers are
responsible for sending 1 copy of signed power purchase agreements to
Electricity Regulatory Authority of Vietnam for storage and implementation
monitoring.
5. In case electricity prices under
Clause 4 Article 3 hereof according to recommendations of the Sellers exceed
the electricity generation price range promulgated by Minister of Industry and
Trade, both parties are responsible for reporting, explaining and proposing
solutions to enable Electricity Regulatory Authority of Vietnam to consider and
report to Minister of Industry and Trade.
Article 20. Revision of power purchase
agreements in case of changes to regulations and policies promulgated by
competent authority
1. In case changes to regulations and
policies promulgated by competent authorities affect legal benefits of the
Buyers or the Sellers in a negative manner, both parties hold the right to
renegotiate electricity generation prices.
2. In case the Sellers are assigned to
invest in upgrade and renovation of power lines and electrical substations
according to planning, both parties hold the right to negotiate additional
specific connection costs to enable project developers of power plants to
recover construction, management, operation and management costs as per the
law.
3. In case active power plants must be
invested for renovation and upgrade to meet national technical regulations on
environment, the Sellers and the Buyers must add these costs to electricity
prices of power plants. Calculation of electricity prices shall conform to methods
agreed upon by both parties under signed power purchase agreements, and be
reported to Ministry of Industry and Trade and Electricity Regulatory Authority
of Vietnam.
4. In case solutions developed by power
plants for disposing, selling ashes and slags are approved by competent authorities
to be satisfactory to refuse, emission and environmental protection standards,
the Buyers and the Sellers shall add these costs to costs for disposing,
selling ashes and slags which are specific costs for disposing, selling ashes
and slags under power purchase agreements following these principles: (i)
Investment scope, procedures for ash and slug disposal must be approved by
competent authorities; (ii) Selection of entities for disposing ashes and slags
of power plants must conform to regulations and law, ensure competitiveness and
transparency; (iii) Both parties shall settle costs for disposing ashes and
slags according to practical situations of the previous year. Revenues generated
from sale of ashes and slags of power plants shall be utilized to reimburse
costs for disposing ashes and slags and reduce electricity price of power
plants.
Chapter IV
...
...
...
Please sign up or sign in to your
TVPL Pro Membership to see English documents.
Article 21. Responsibilities of Ministry of
Industry and Trade
1. Guiding natural gas consumption
mechanisms in power purchase agreements conforming to regulations under gas
sale and purchase agreements and gas sale agreements approved by competent
authorities.
2. Deciding on paying for differences
in rates of power plants.
Article 22. Responsibilities of Electricity
Regulatory Authority of Vietnam
1. Examining and providing feedback on
power purchase agreements and revisions of power purchase agreements of power
plants.
2. Guiding and dealing with
difficulties arising during negotiation on power purchase agreements between
parties.
3. On an annual basis, consolidating feedback
of entities regarding input figures for calculating power purchase agreement prices
specified under Annex 1 hereof and proposing to Minister of Industry and Trade
for consideration, decision and revision (if any).
4. Dealing with conflicts that arise
during execution of power purchase agreements in case both parties agree to
settle conflicts at Electricity Regulatory Authority of Vietnam.
5. Examining, consolidating and
reporting to Ministry of Industry and Trade to consider paying for difference
in rates among power plants after receiving reports of EVN.
...
...
...
Please sign up or sign in to your
TVPL Pro Membership to see English documents.
1. Before January 31 each year, taking
charge and cooperating with the Buyers and the Sellers in calculating difference
in rates in execution of power purchase agreements of the previous year
according to Clause 2 Article 14 hereof, and reporting to Electricity
Regulatory Authority of Vietnam.
2. On an annual basis, considering and
requesting Electricity Regulatory Authority of Vietnam to revise input figures
for calculating power purchase agreement prices according to Annex 1 hereof and
other contents in this Circular (if any).
Article 24. Responsibilities of the Buyers
1. Agreeing with the Sellers on
redistributing specific connection costs to project developers of power plants
connecting to power lines, electrical substations and revising specific
connection costs (if any) to enable the Sellers to recover construction,
management, operation and maintenance costs for power lines and electrical
substations as per the law.
2. Negotiating power purchase
agreements with the Sellers; being responsible and guaranteeing accuracy,
legitimacy of provided figures and documents. Agreeing with the Sellers on submitting
reports on inspection of power purchase agreements to Electricity Regulatory
Authority of Vietnam as per the law
3. Before January 15 each year, taking
charge and cooperating with the Sellers in calculating difference in rates in
execution of power purchase agreements of the previous year according to Clause
2 Article 14 hereof, providing to EVN and reporting to Electricity Regulatory
Authority of Vietnam.
Article 25. Responsibilities of the Sellers
1. Negotiating with the Buyers,
reporting to Electricity Regulatory Authority of Vietnam regarding inspection
and signing of power purchase agreements as per the law8; being
responsible and ensuring accuracy, legitimacy of provided figures and
documents.
2. Developing construction investment
projects for power lines and electrical substations to load capacity of power
plants when assigned to implement construction investment by competent
authorities according to national electricity development plannings and
provincial plannings (if any). Power lines and electrical substations must operate and load
all capacity and electrical production of power plants in vicinity according to
approved plans.
...
...
...
Please sign up or sign in to your
TVPL Pro Membership to see English documents.
4. Agreeing with project developers of
power plants on distributing and revising specific connection costs to enable
project developers to recover construction, management, operation and
maintenance costs for power lines and electrical substations as per the law.
5. Being responsible for managing,
operating and maintaining power lines and electrical substations within their
investment and construction capacity as per the law.
6. Providing adequate information,
being responsible, ensuring accuracy and legitimacy of figures and documents
provided to relevant entities and agencies during power purchase agreement
negotiation and inspection process.
7. The Sellers is responsible for
selecting fuel suppliers and/or transporters according to bidding laws, other
regulations and law and legally responsible for ensuring equality,
competitiveness and transparency except for following cases:
(i) The Sellers have signed mid-term or
long-term fuel supply contracts with fuel suppliers;
(ii) Natural gas supply contracts and fees
for collecting, transporting and distributing natural gas conform to
regulations of competent authorities.
In case of inability to select fuel
transporters via bidding due to special reasons (other than exceptions 7.i and
7.ii above), the Sellers are responsible for negotiating with fuel suppliers or
fuel transporters (depending on cases under Article 26 of this Circular)
according to unit prices promulgated by competent authorities; if unit prices
have not been promulgated by competent authorities, the Sellers are responsible
for negotiating with fuel suppliers or transporters (depending on cases under
Article 26 of this Circular) according to unit prices calculated on the basis of
internal unit prices of selected fuel transporters, ensuring effectiveness,
competitiveness and not exceeding unit prices of other transport service
providers within the same means of transport (if any), and prices of fuel
transported to warehouses of the Sellers not exceeding price of the same fuel
at warehouses of the Sellers provided by other providers (if any).
Prior to signing fuel transport contracts
without bidding, the Sellers must provide the Buyers with documents agreed upon
under power purchase agreements. Within 20 days from the date on which the
Sellers provide adequate documents and the Buyers have not provided feedback on
selection of fuel transporters, the Sellers and/or fuel transporters (depending
on delivery conditions) may sign fuel transport contracts based on terms agreed
upon.
The Sellers are responsible for signing
fuel purchase, sale and transport agreements according to applicable laws while
ensuring competitive price and transparency.
...
...
...
Please sign up or sign in to your
TVPL Pro Membership to see English documents.
9. Before January 15 of each year, the Sellers
shall submit reports on execution of power purchase agreements of the previous
year with the Buyers, difficulties that arise during execution of power
purchase agreements and proposed solutions (if any) to Electricity Regulatory
Authority of Vietnam.
10. Before January 15 each year,
cooperating with the Buyers in calculating difference in rates in execution of
power purchase agreements of the previous year according to Clause 2 Article 14
hereof, sending to EVN and reporting to Electricity Regulatory Authority of
Vietnam.
Article 26. Responsibilities of fuel
suppliers and transporters
1. For gas fuel
(i) Domestic natural gas suppliers and
transporters sign GSPA, GSA, gas transport agreements (GTA) as per relevant
laws, in which:
- Price of domestically extracted
natural gas is price of gas extracted from gas mines.
- 9
(ii) Fuel suppliers and transporters for
fuel imported by pipes and for LNG shall provide gas according to relevant law
provisions, in which:
- 10
...
...
...
Please sign up or sign in to your
TVPL Pro Membership to see English documents.
- In case of delivery at gas
distribution stations or LNG warehouses in Vietnam, gas price includes costs
for purchasing import gas, LNG and legitimate costs related to import
activities (if any) namely import tariffs, financial expenses, insurance, norm
interest and other costs related to import activities of fuel suppliers.
2. For coal fuel
(i) In case of delivery at warehouses and
ports of the Sellers, selected coal suppliers are responsible for:
- Organize selecting coal transporters
as per bidding laws and relevant law provisions on the basis of equality,
competitiveness, transparency and legal responsibility.
- In case coal suppliers are unable to
select coal transporters via bidding due to special causes, coal suppliers are
responsible for selecting coal transporters following similar principles
applied to the Sellers under Clause 7 Article 25 hereof.
- Signing coal transport agreements
with selected coal suppliers as per the law. Prior to signing coal transport contracts
not via bidding, selected coal suppliers are responsible for providing relevant
documents to the Sellers.
(ii) In case of delivery at warehouses and
ports of coal suppliers:
- The Sellers shall organize selection
of coal transporters according to Clause 7 Article 25 hereof.
- Coal transporters selected by the
Sellers shall sign coal transport agreements as per the law with the Sellers. Prior to signing
coal transport contracts not via bidding, selected coal suppliers are
responsible for providing relevant documents to the Sellers.
...
...
...
Please sign up or sign in to your
TVPL Pro Membership to see English documents.
Article 28. Transitional clauses
1. For power purchase agreements signed
before the effective date hereof, both parties shall execute signed power
purchase agreements until said agreements expire.
2. For electricity projects entering
into power purchase agreements using methods under Circular No. 56/2014/TT-BCT,
Circular No. 51/2015/TT-BCT dated December 29, 2015 and electricity projects
executed before September 19, 2017, when settled investment capital is
approved, both parties hold the rights to request recalculation of electricity
prices according to Article 12 hereof.
3. For power plants entering into power
purchase agreements, if necessary, both parties shall negotiate and add kHR
according to Article 15 hereof.
4. For power plants entering into power
purchase agreements, in case agreements on upstream consumption of gas are
approved by competent authorities, Ministry of Industry and Trade shall provide
guidelines on gas consumption mechanisms for power plants and permit both
parties to revise power purchase agreements.
5. 12 (annulled)
6. 13 In case power
plants have entered into PPAs, if necessary, the parties shall negotiate in
order to revise formula of variable costs adjusted according to other
variations of power plants specified under Point c Clause 3 Article 15 hereof.
Article 29. Effect 14
1. This Circular comes into force from
February 22, 2021 and replaces following Circulars:
...
...
...
Please sign up or sign in to your
TVPL Pro Membership to see English documents.
b) Circular No. 51/2015/TT-BCT dated
December 29, 2015 of Minister of Industry and Trade on amendments to Circular
No. 30/2014/TT-BCT dated October 2, 2014 of Minister of Industry and Trade on
operation of competitive electricity generation market and Circular No.
56/2014/TT-BCT;
2. Annuls Article 1 of Circular No.
13/2017/TT-BCT dated August 3, 2017 of Minister of Industry and Trade on
amendments of Circular No. 56/2014/TT-BCT; Circular No. 30/2014/TT-BCT on
operation of competitive electricity generation market and Circular No.
57/2014/TT-BCT on methods and procedures for developing and issuing price range
for electricity generation;
3. Annuls Article 134 and Annex 5 of
Circular No. 45/2018/TT-BCT dated November 15, 2018 of Minister of Industry and
Trade on operation of competitive electricity generation market and amendments
to Circular No. 56/2014/TT-BCT;
4. Difficulties that arise during the
implementation of this Circular should be reported to the Ministry for
consideration./.
CERTIFIED BY
PP. MINISTER
DEPUTY MINISTER
Dang Hoang An
...
...
...
Please sign up or sign in to your
TVPL Pro Membership to see English documents.
“Decree No. 96/2022/ND-CP dated November
29, 2022 of the Government on functions, tasks, powers, and organizational
structure of the Ministry of Industry and Trade;
Law on Electricity date December 3, 2004;
the Law on amendments to the Law on Electricity dated November 20, 2012; and
the Law on amendments to the Law on Electricity dated January 11, 2022;
Decree No. 137/2013/ND-CP dated October 21,
2013 of the Government of Vietnam elaborating implementation of certain
Articles of the Law on Electricity and the Law on amendments to certain
Articles of the Law on Electricity;
At request of the Director of Electricity
Regulatory Authority of Vietnam;”
Circular No.02/2023/TT-BCT on annulment to
certain regulations in Circular No. 57/2020/TT-BCT dated December 31, 2020 of
Minister of Industry and Trade on methods of determining electricity generation
price and power purchase agreement price, is promulgated pursuant to:
“Law on Promulgation of Legislative Documents
dated June 22, 2015; The Law on amendments to certain Articles of Law on
Promulgation of Legislative Documents dated June 18, 2020;
Electricity Law No. 28/2004/QH11 dated
December 03, 2004; Law on amending some articles of the Electricity Law dated
November 20, 2012;
Decree No. 96/2022/ND-CP dated November 29,
2022 of the Government on functions, tasks, powers, and organizational
structure of the Ministry of Industry and Trade;
Decree No. 137/2013/ND-CP dated October 21,
2013 of the Government of Vietnam elaborating implementation of certain
Articles of the Law on Electricity and the Law on amendments to certain
Articles of the Law on Electricity;
...
...
...
Please sign up or sign in to your
TVPL Pro Membership to see English documents.
9 The paragraph “Đối với khí
thiên nhiên khai thác trong nước qua hệ thống đường ống thu gom, vận chuyển,
phân phối có tính độc quyền tự nhiên thì cước phí thu gom, vận chuyển, phân phối
khí phải được cơ quan nhà nước có thẩm quyền phê duyệt.” (“For natural gas
domestically extracted via pipelines for collecting, transporting and
distributing that are exclusive in nature, fees for collecting, transporting
and distributing emission must be approved by competent authority.”) is annulled according to Clause 3 Article 1 of Circular
No. 02/2023/TT-BCT of the Minister of Industry and Trade on annulment of
certain regulations in Circular No. 57/2020/TT-BCT dated December 31, 2020 of
the Minister of Industry and Trade on methods for determining electricity
generation price and power purchase agreement price, which comes into force
from January 19, 2023.
10 The paragraph ““Trong trường hợp hạng
mục tồn trữ, phân phối khí có tính độc quyền tự nhiên, cước phí tồn trữ, tái
hóa và phân phối khí phải được cơ quan nhà nước có thẩm quyền phê duyệt.” (“In
case clauses of gas storage and distribution are exclusive in nature, fees for
storage, regasification and distribution must be approved by competent
authority.”) is annulled according to Clause 3
Article 1 of Circular No. 02/2023/TT-BCT of the Minister of Industry and Trade
on annulment of certain regulations in Circular No. 57/2020/TT-BCT dated
December 31, 2020 of the Minister of Industry and Trade on methods for
determining electricity generation price and power purchase agreement price,
which comes into force from January 19, 2023.