THE MINISTRY
OF INDUSTRY AND TRADE
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|
SOCIALIST
REPUBLIC OF VIETNAM
Independence – Freedom - Happiness
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|
No.:
16/2014/TT-BCT
|
Hanoi, May 29,
2014
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CIRCULAR
REGULATIONS ON ELECTRICITY PRICE
Pursuant to the Government’s Decree No.
95/2012/NĐ-CP dated November 12 defining the functions, tasks, entitlements and
organizational structure of The Ministry of Industry and Trade
Pursuant to Law on Electricity dated December
03, 2004 and the Law on amendments and supplements to Law on Electricity dated
November 20, 2012;
Pursuant to the Government’s Decree No.
137/2013/NĐ-CP dated October 21, 2013 detailing the implementation of a number
of articles of Law on Electricity and the law amending and supplementing a
number of articles of the Law on Electricity;
Pursuant to the Prime Minister’s Decision
No.69/2013/QĐ-TTg dated November 19, 2013 regulating average retail price of
electricity;
Pursuant to the Prime Minister’s Decision No.
28/2014/QĐ-TTg dated April 07, 2014 regulating framework of retail price of
electricity;
At the proposal of General Director of
Electricity Regulatory Authority
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Chapter I
GENERAL PROVISIONS
Article 1. Scope and regulated
entities
1. This Circular regulates retail price of
electricity (hereinafter referred to as retail price) for electricity users and
retailers (specific retail price is stipulated in the Decision on electricity
price promulgated by the Ministry of Industry and Trade).
2. This Circular applies to organizations and
individuals that purchase and sell electricity from the national electricity
system; in rural, mountainous, borderline, island areas where connection with
national grid is not yet established, and other relevant organizations,
individuals.
Article 2. Interpretation of
terms
In this Circular, some terms are construed as
follows:
1. Wholesale price of electricity means
the price of electricity applied to electricity retailers by Power Corporations,
power companies or any organization affiliated to Vietnam Electricity
2. Limit of domestic electricity use means
limit of used electricity by level as stipulated in Section 4.1 in the Appendix
enclosed together with the Prime Minister's Decision No. 28/2014/QĐ-TTg dated
April 07, 2014 on structure of electricity price (hereinafter referred to as
the limit of electricity).
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1. Electricity price shall be applied to right
subjects with power using purposes (hereinafter referred to as the using
purposes) as regulated in this Circular.
Buyers (those who purchase electricity) shall
declare their using purpose for the application of electricity price under this
Circular.
In case there is some change to the using purposes
that results in change to the electricity price, buyers must make a written
notice to the seller (One who generates electricity for the purpose) 15 days in
advance for adjustment to the contract in accordance with the using purpose.
The seller must carry out the examination to apply the price appropriately. In
case the application of electricity price deviating the using purpose has
caused some loss to both buyer and seller, recovery of arrears or refund of
electric bills must be made. In case the point of time when the application of
wrong price starts is not determined, a period of 12 months (from the point of
detection of wrong application and earlier) shall be applied for the
calculation of recovery of arrears and refund of electric bills.
2. In case the buyer uses electricity for
multiple purposes:
a) As for customers who register one electric
meter for domestic purpose but use part of the amount of electricity from such
meter for other purposes (production, business and services…), retail price for
domestic purpose shall be applied for all the amount of electric energy
measured by such meter;
b) As for customers who register one electric
meter for purposes other than domestic purpose (hereinafter referred to as
non-domestic purposes), the two sides shall negotiate the proportion of
electricity used for each using purpose in reliance on real-life usage.
3. On the date when electricity price is changed
according to the Decision promulgated by the Ministry of Industry and Trade,
the seller must finalize readings from all electric meters except domestic one.
Finalization of electric meter readings from all
electric meters must be confirmed by customers, third party or agreed by the
two sides.
Article 4. Voltage-level
based electricity price
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Customers who use electricity for production,
business, services and public services;
b) Electric retailers (or retailers) in
industrial parks
2. Electricity price shall be based on voltage
level of each electric measurement systems.
Article 5. “Time of day”
based electricity price
1. Time of day in this context is defined as
follows:
Normal time: From Mondays to Saturdays+ From
04:00 to 09:30 (Five hours and 30 minutes);
+ From 11:30 to 17:00 (Five hours and 30
minutes);
+ From 20:00 to 22:00 (two hours)
- Sunday
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b) Peak time: from Mondays to Saturdays
+ From 09:30 to 11:30 (two hours);
+ From 17:00 to 20:00 (three hours).
- Sunday: No peak time
c) Low time
All days of week: from 22:00 to 04:00 the
following morning (six hours).
2. “Time of day” based electricity price
(hereinafter referred to as the three-rate manner) shall be applied to the
following subjects:
Buyers who use electricity for production,
business and services supplied via 25kVA+ transformer or pledge to use at least
2,000 kWh per month on average in three consecutive months;
b) Retailers in industrial parks;
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Buyers are encouraged to use electricity under
the three-rate meter (hereinafter referred to as three-rate meter buyers) for
production, business and services with a transformer and an amount of
electricity consumed below the limit as defined in Point a of this Clause. The
seller shall be responsible for creating favorable conditions and providing
guidance to such buyers on the installation of a three-rate meter.
3. The seller must ensure adequate provision of
electric meters to three-rate meter buyers. During the period when a three-rate
meter is not yet installed due to some difficulty faced by the seller,
electricity price shall be based on the normal time frame.
4. In case the seller has adequate conditions
for the installation of three-rate meters and has issued a written notice about
the schedule of installation to three-rate meter buyers, such buyers must
cooperate with the seller in the installation of a three-rate meter as soon as
possible.
In case three-rate meter buyers refuse the installation
of a three-rate meter after two times of notice issued by the seller (the
minimum interval between the two notices is 10 days), after 15 days since the
final notice is issued, the seller shall impose the price of peak time frame
for all the consumed amount consumed on such buyers until a three-rate meter is
installed.
5. In case a three-rate meter buyer shares an
electric meter with other organizations and individuals that do not pledge to
use a three-rate meter, such buyer must cooperate with the seller in installing
a separate meter for these organizations and individuals with a price
appropriately imposed.
6. In case a buyer who uses electricity for
production, business and services is not a three-rate meter buyer as defined in
Clause 2 of this Article, normal-time based price shall be applied.
Article 6. Conditions for
application of wholesale price
1. Retailers in rural, collective, residential
areas, commercial, service and domestic complexes and industrial parks must
meet the following conditions:
Have a licence to distribute and sell
electricity granted by the competent agency except the cases of exemption as
defined in Point c, Clause 1, Article 34 of the Law on Electricity;
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c) Have a power purchase agreement (PPA) and
electric meters installed to individual households as stipulated in Article 24
of the Law on Electricity and Clause 10 of Article 11 of the Law on Amendments
and Supplements to a number of articles to the Law on Electricity;
d) Have invoices to be issued to customers under
the PPA as stipulated by the Ministry of Finance.
2. If any retailer who fails to meet the
conditions as defined in Clause 1 of this Article, Vietnam Electricity or its
affiliates shall be responsible for making report to the Services of Industry
and Trade who then makes submission to the People’s Committee of provincial
level for consideration and decision on handing over the electricity network
within the management of this retailer to Vietnam Electricity or its affiliates
for retailing electricity to customers.
Chapter II
RETAIL PRICE
Article 7. Retail price for
production
Retail price for production shall be applied to
buyers who use electricity for production in the following industries:
1. Industry
2. Construction; transport; mining; forestry;
aquatic and seafood production
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4. Production of clean water for domestic,
production and business purposes.
5. Production management offices situated in the
area shared with the production area.
6. Stores for commodities (raw materials, finished
products, semi-finished products) that are in production process and locations
are in proximity to production area.
7. Enterprises producing and supplying public
products and services except public lighting activities.
8. Drainage pumping, waterlogging fighting pump
in cities, communes; wastewater treatment station.
9. Operators, transmission network, receiver
& transmitter stations that belong to telecommunication companies or
broadcasting companies.
10. Facilities in textile, breeding, poultry egg
hatching, husking, ice production, welding, sawing, woodwork, rice drying, and
agricultural product preservation.
11. Printing activities related to processing
and manufacturing industries; printing activities of media agencies and
publishing houses.
12. Industrial sewing, embroidering, laundry,
food processing, agricultural, forestry and sea food production.
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14. Sterilization irradiation
15. Other production activities
Article 8. Retail price of
electricity for business
Retail price is applied to buyers who use
electricity for business and service purposes including:
1. Shops, service establishments, supermarkets,
trade fairs, wholesale & retail trade establishments.
2. Currency and stock trading establishments,
commercial banks, saving funds, financial and securities companies
3. Business operation establishments of media,
telecommunication and broadcasting companies; communications and postal
services providers (except universal and compulsory postal services).
4. Lottery companies
5. Insurance organizations (except social and
medical insurance)
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7. Food and beverage shops, beauty salons,
laundry, clothing and bike repair services.
8. Advertising activities of production,
business and service establishments.
9. Motor vehicle, transport vehicles, consumer
products and household appliances repair and renovation facilities.
10. Hotels, guest-houses by organizations and
individuals; houses for hire for non-domestic purposes with electricity
purchase agreements signed by owners;
11. Booking offices, commodity delivery station,
lounges (including halls) in airports, train stations, bus stops and wharves.
12. Tollbooths, vehicle parking zones.
13. Commodity storage areas during circulation.
14. Offices, head offices of economic groups,
corporations and companies except electricity users as defined in Clause 5,
Article 7 hereof.
15. Representative offices of business
organizations, customer service centers; consulting companies and notary
offices;
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17. Sports business establishments
18. Theaters, performance organizer companies;
movies companies and cinemas; circuses;
Article 9. Retail price of
electricity for administrative and non-profit establishments
1. Retail price is applied to hospitals,
kindergartens, nursery schools, schools including:
a) Kindergartens, nursery schools, general
schools of all levels, continuing education centers (general education only)
and ethnic minority boarding-schools;
b) Hospitals (including funeral parlors and
medical waste incinerators within hospital premises); medical facilities
(including amount of electricity used for medical examination and treatment
provided by preventive medical centers); treatment and rehabilitation
facilities, professional disease treatment facilities; retirement homes,
orphanages; drug rehabs, social labor education centers; detoxification,
HIV/AIDS control and family planning counseling offices.
2. Retail price for public lighting,
administrative and non-profit organizations shall be applied to the following
subjects:
a) Public lighting at city streets, parks,
hamlet gates; temples, pagodas, churches; ranked historical remains; martyrs’
cemetery; collective quarters or stairs of tenements;
b) Electricity used for lifts of multi-story
apartment building; water pumps serving daily activities in collective quarters
and residential blocks.
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d) Head offices of state administrative
agencies; public service providers; armed forces unit; political, political and
social organizations; professional associations;
dd) Head offices of embassies, diplomatic
agencies, representative offices of international organizations (not intended
for commercial purposes);
e) Head offices of media agencies, sport
training centers: radio and television stations, houses of culture and
information, sports stadiums; museums, memorial houses, exhibition houses, libraries,
funeral parlors and crematorium;
g) Trade fairs, market management board,
guest-houses that are supported in expenditure by the state budget. The buyers
must provide legal documents concerning expenditure from the state budget as
the basis for determination of pro rata price;
h) Healthcare insurance organizations, social
insurance organizations;
i) Research agencies; universities, colleges,
and vocational schools (public and private), other training establishments
(except the cases as defined in Point a, Clause 1 of this Article);
k) Central and local publishing agencies, school
and medical equipment suppliers, charity organizations;
l) Reserve warehouses defined as national
reserve warehouses by competent authorities
m) Vietnam bank for social policies (not for
profits);
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o) Head offices of project management boards
with respect to the projects using capital from the state budget;
3. In case administrative and non-profit
agencies use electricity for goods production, or for business and services,
the price of electricity shall be applied in proportion to the amount used for
respective purposes;
Article 10. Retail price
for domestic purpose
1. Retail price for domestic purpose is applied
to households who use electricity for domestic purpose with a PPA signed with
the seller. One limit of electricity is applied to each household using
electricity in a month.
2. If a buyer is a group of separate households
sharing the same meter, total amount of electricity to be billed to such buyer
shall be determined by multiplying amount of electricity of each level by the
number of households sharing the same meter.
3. Electricity used for domestic purpose by
collective houses for officials, public servants, armed forces, houses for
monks, nuns, priests; dormitories, price of electricity shall be applied as
follows:
a) In case number of occupants is able to be
declared (based on temporary residency register or the lists of officers,
soldiers with confirmations from heads of the units with respect to the armed
forces), every four occupants shall be considered as one household as the basis
for application of retail price;
b) In case the number of occupants can not be
declared, retail price (level 3) shall be applied: From 101-200 kWh for the
entire amount of electricity measured at the meter.
4. Electricity used for domestic purposes by
tenants, the price of electricity shall be applied as follows:
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b) In case tenant is a household: the house
owner shall sign a PPA or authorize the household to sign the agreement (with
payment commitment included), each household as tenant shall be applied with a
limit of electricity;
c) In case tenants are students or employees
(not a household):
- The seller shall apply a limit of electricity
to the house owner based on temporary residency register or any document
confirming temporary residency of such tenant issued by police authorities in
the administrative division; Every four occupants shall be grouped as a
household for application of domestic electricity price, specifically: one
occupant is calculated as a forth of the limit, two occupants half of the
limit, three occupants three-fourths of the limit and four occupants one limit;
- In case tenants are employees or students with
validity period of temporary residency register being at least 12 months, the
house owner or representative of the tenants (authorized by house owner) shall
sign a power purchase agreement (enclosed with a payment commitment by the
house owner). In case a renting period is less than 12 months, the house owner
must sign a power purchase agreement;
- In case a tenant does not sign a power
purchase agreement with the seller, the house owner shall charge the tenant for
electric bills issued by the retailer plus 10% for the loss of electricity,
expenses for lighting and pumping water for common use;
- When the number of occupants as tenants
changes, the house owner shall make a written notice to the seller for making
adjustment to the limit of electricity. The seller has the right to investigate
and request the buyer to present temporary residency register on the monthly
basis to determine the number of occupants for application of the limit of electricity;
- b) In case the number of occupants can not be
declared, domestic electricity price (level 3) shall be applied: From 101-200
kWh for the entire amount of electricity measured at the meter.
5. Buyers who buy electricity via a transformer
for domestic purpose, domestic electricity price shall be applied.
6. In case the seller is forced to shift the
time for recording meter readings (due to some irresistible events), the amount
of electricity of each level shall be adjusted according to the actual number
of days of a recording period.
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a) Actual amount of electricity used by
customers during the meter readings recording;
b) Number of actual days of electricity use (the
number of days between the two meter recordings, number of days for application
of old price and new price)
c) Used amount of electricity of each level is
calculated between the two meter readings recordings
8. Domestic electricity price (using prepaid
card meter) shall be applied to temporary and short-term buyers for domestic
purposes. When technical and legal conditions permit, the retailer shall be
responsible for installing prepaid card meters in places where customers have
demand for electricity for domestic purpose.
Article 11. Electricity price in industrial
parks that buy electricity from the national grid and have a power plant
constructed in-site
Retailers in the industrial parks with a power
plant constructed in-site in combination with purchase of electricity from the
national grid for re-sale to customers in the area shall be responsible for
constructing an electricity price plan and making submission to the Services of
Industry and Trade for appraisal, to Electricity Regulatory Authority for
opinions and then to the People’s Committees of provinces for approval (on the
annual basis).
Chapter III:
WHOLESALE PRICE
Article 12. Wholesale price
in rural areas
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2. Wholesale price in rural areas
a) Wholesale price in rural areas is applied for
amount of electricity used for domestic purpose by households that use the
electricity in communes, hamlets, and villages purchased by retailers in rural
areas from the general electric meter installed in a transformer station
regardless of whom the transformer station belongs to or what voltage-level is;
b) Total amount of electricity with wholesale
price for domestic purpose from the general electric meter shall be billed by
amount of electricity of each level by the number of households behind such
general electric meter;
c) Number of households that use electricity for
domestic purpose behind the general electric meter is the number of households
that have permanent residency register or long-term temporary residency
register within scope of supply of the general electric meter and the limit of
electricity specified in a power purchase agreement signed with retailers in
rural areas;
Billing of wholesale price in rural areas in a
month when changes to electricity price take place is done as follows: Amount
of electricity of each level with old and new price being applied shall be
determined by multiplying the amount of electricity of each level in a day by
the actual number of days before and after price adjustment in that month.
Amount of electricity of each level in a day is equal to the amount of
electricity of each level divided by (:) actual number of days in the month of
billing.
3. Wholesale price for purposes other than the
abovementioned purposes shall be applied for amount of electricity used for
non-domestic purposes;
4. Amount of electricity with the wholesale
price for non-domestic purposes shall be determined by multiplying the total
amount of commercial electricity used for other purposes measured at retail
meters by coefficient 1.1.
5. Amount of electricity with wholesale price
for domestic purpose in rural areas shall be determined by subtracting the
amount of electricity used for other purposes from the total amount of
electricity measured at the general electric meter.
6. Within three days since the recording of
general electric meter readings starts, the retailer in rural areas must
provide the followings to the wholesaler:
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b) Number of households using electricity after
the general electric meter for domestic purpose with confirmations from legal
representative of the retailer;
c) List of increase or decrease (if any) in the
number of households confirmed by police authorities of communes;
After this time limit, if the retailer fails to
provide documents as mentioned above, the wholesaler shall be permitted to
impose level 4 of the wholesale price in rural areas (from 201-300kWh for the
entire amount of electricity measured at general electric meter).
7. In case transformers in farms, plantations in
rural areas supply electricity for domestic and other purposes, domestic
electricity wholesale price shall be applied for the entire amount of
electricity measured at general electric meter.
Article 13. Wholesale price
in collective quarters and residential areas
1. Wholesale price in collective quarters and
residential areas shall be applied to the following subjects:
a) Retailers in the collective quarters of
agencies, companies, factories, construction sites, farms and plantations
(regardless of whether geographical position of the collective quarter is in
rural or urban area);
b) Retailers in rural areas that purchase
electricity via the general electric meter installed at the shunt of a
low-voltage line;
c) Retailers in residential areas in cities,
towns, communes.
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a) Total amount of electricity with wholesale
price for domestic purpose at general electric meter shall be determined by
multiplying the amount of electricity of each level by the number of households
behind such general electric meter;
b) Number of households that use domestic
electricity in collective quarters, residential areas behind the general
electric meter is the number of households that have permanent residency
registers or long-term temporary residency registers within scope of supply of
the general electric meter and the limit of electricity specified in a power
purchase agreement signed with retailers in collective quarters, residential
areas;
Billing of wholesale electricity price in
collective quarters and residential areas in a month when changes to
electricity price take place is done as follows: Amount of electricity of each
level with old and new price being applied shall be determined by multiplying
amount of electricity in a day by the actual number of days before and after
price adjustment in that month. Amount of electricity of each level in a day is
determined by dividing the amount of electricity of each level by the actual
number of days in the month of billing.
3. Wholesale price of electricity (behind
general electric meter) for other purposes in collective quarters, residential
areas shall be applied according to electricity price for non-domestic
purposes;
4. Amount of electricity with wholesale price
for non-domestic purposes applied shall be billed by multiplying total amount
of commercial electricity used for other purposes measured at retail meters by
coefficient 1.1.
5. Amount of electricity with wholesale price
for domestic purpose applied in collective quarters, residential areas shall be
billed by subtracting the total amount of electricity measured at general
electric meter from the total amount of electricity with wholesale price for
non-domestic purposes.
6. Within three days since the recording of
general electric meter readings starts, the retailer in collective quarters and
residential areas must provide the followings to the wholesaler:
a) Enumeration of amount of commercial
electricity used for other purposes;
b) Number of households using electricity after
general electric meter for domestic purpose with confirmations from legal
representative of electricity retailer;
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After this period, if the retailer fails to
provide adequate documents mentioned above, the wholesaler is permitted to
impose level 4 of the wholesale price applied in collective quarters,
residential areas (from 201-300kWh for the entire amount of electricity
measured at the general electric meter).
7. For the administrative divisions that are
converted from rural division into town, commune, or city divisions, or from
town into commune and city divisions according to the competent authorities’
decision, retailers in aforesaid divisions are permitted to temporarily retain
the price applied to old divisions within less than 12 months since the
decision to adjust division is issued. After this period, retailers must apply
the price applied to new divisions.
Article 14. Wholesale price
in commercial, service and domestic complexes
1. Wholesale price in commercial, service and
domestic complexes shall be applied to retailers in apartment buildings, urban
zones, shopping mall; office buildings for rent (regardless of whether
geographical positions of the commercial, service and domestic complexes are in
rural or urban areas).
2. Wholesale price in commercial, service and
domestic complexes
a) Wholesale price of electricity in commercial,
service and domestic complexes shall be applied with respect to the amount of
electricity used for domestic purpose by households purchased by retailers from
the general electric meter installed in a transformer station regardless of
what voltage-level is;
b) Total amount of electricity at the general
electric meter shall be billed by multiplying the amount of each level by the
number of households using electricity for domestic purpose after such general
electric meter;
c) Number of households that use electricity for
domestic purpose behind the general electric meter in commercial, service, and
domestic complexes is the number of households that have permanent residency
registers or long-term temporary residency registers within scope of supply of
the general electric meter and the limit of electricity specified in a power
purchase agreement signed with retailers in rural areas;
d) Billing of amount of electricity based on the
wholesale price in commercial, service and domestic complexes in a month when
changes to electricity price take place is done as follows: The amount of
electricity of each level with old and new price applied shall be billed by
multiplying amount of electricity in a day by the actual number of days before
and after price adjustment in that month. Amount of electricity of each level
in a day is determined by dividing the amount of electricity of each level by
the actual number of days in the month of billing.
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4. Billing of amount of electricity from the
general electric meter shall be done as follows:
a) Both the seller and buyer in reliance on
real-life usage shall carry out negotiations on application of prices for
domestic or non-domestic purposes as the basis for application of price at the
general electric meter;
b) In case the commercial, service and domestic
complexes have their own meter for domestic and non-domestic electricity behind
the general electric meter, the billing of amount of electricity used for
domestic and non-domestic purposes shall be based on their own meter installed
behind the general electric meter;
a) In case the commercial, service and domestic
complexes do not use electricity for domestic purpose, the wholesale price for
other purposes shall be applied for the entire amount of electricity measured
from the general electric meter;
5. Within three days since the recording of
general electric meter readings, retailers must provide the followings to the
wholesaler:
a) Enumeration of amount of commercial
electricity used for other purposes;
b) Number of households using electricity behind
the general electric meter for domestic purpose with confirmations from legal
representative of electricity retailer;
c) List of increase or decrease (if any) in the
number of households confirmed by police authorities of communes;
After this period, if the retailer fails to
provide the documents mentioned above, the wholesaler is permitted to impose
the wholesale price for other purposes on the entire amount of electricity
measured from the general electric meter).
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1. The wholesale price at 110kV busbar of the
110kV transformer in the industrial park shall be applied to retailers who
purchase electricity from the 110kV busbar (110kV transformer invested by the
buyer) of the industrial park for resale to customers using electricity in the
industrial park. The wholesale price applied to each 110kV transformer shall be
determined by referring to total capacity of the 110kV transformer installed in
the industrial park.
2. The wholesale price at medium-voltage busbar
of the 110kV transformer or at the shunt of a medium-voltage line leading to
the industrial park shall be applied to retailers who purchase electricity for
resale to customers using electricity in the industrial park at medium-voltage
level.
3. The wholesale price applied to retailers at
medium-voltage level of the low-voltage transformers shall be equal to the
retail price applied to production industries at corresponding medium-voltage
level.
Chapter IV:
IMPLEMENTATION
Article 16. Implementation
1. Electricity Regulatory Authority shall be
responsible for making submission to the Ministry of Industry and Trade for
issuing decision on electricity price applied to customers and to retailers in
reliance on the Prime Minister’s Decision No. 28/2014/QĐ-TTg dated April 07,
2014 on structure of retail price of electricity.
2. the Service of Industry and Trade shall:
a) Inspect and oversee the compliance with
electricity price as defined hereof by retailers within the management
division. Upon detecting that retailers fail to meet the conditions as defined
in Article 6 hereof, the Services of Industry and Trade shall make report to
People’s Committee of provincial level for decision on handing over the
electric grid under the management of this retailer to Power Corporations or
its affiliates for retailing electricity to customers.
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Article 17. Effect
1. This Circular takes effect since June 01,
2014 and replaces the Ministry of Industry and Trade’s Circular
No.19/2013/TT-BCT dated July 31, 2013 on regulations and guidance on electricity
price.
2. Difficulties that arise during the
implementation of this Circular should be reported to Electricity Regulatory
Authority or the Ministry of Industry and Trade for consideration and
handling./.
PP THE
MINISTER
DEPUTY MINISTER
Le Duong Quang