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MINISTRY
OF INDUSTRY AND TRADE
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SOCIALIST REPUBLIC OF VIETNAM
Independence – Freedom – Happiness
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No.
21/2015/TT-BCT
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Hanoi,
23 June 2015
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CIRCULAR
ON REGULATING THE PRICING METHOD FOR ELECTRIC POWER SYSTEM'S
ANCILLARY SERVICES AND THE PROCEDURE FOR SCRUTINIZING A CONTRACT FOR PROVISION
OF ELECTRIC POWER SYSTEM’S ANCILLARY SERVICES
Pursuant to the Government’s
Decree No. 95/2012/NĐ-CP dated 12 November 2012 on regulating the functions,
missions, authority and organizational structure of the Ministry of Industry
and Trade;
Pursuant to the Law on
electricity dated 03 December 2004 and the Law on amendments to the Law on
electricity dated 20 November 2012;
Pursuant to the Government’s
Decree No. 137/2013/NĐ-CP dated 21 October 2013 on detailing the enforcement of
certain articles of the Law on electricity and the Law on amendments to the Law
on electricity;
At the request of the Head
of the Electricity Regulatory Authority of Vietnam,
Minister of Industry and
Trade issues the Circular on regulating the pricing method for electric power
system’s ancillary services and the procedures for scrutinizing
a contract for provision of electric power system’s ancillary services.
Chapter
I
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Article
1. Scope of regulation and regulated entities
1. This
Circular regulates the procedure for an entity's calculation, assessment and
endorsement of electric power system’s ancillary service price at discretion
and the procedure for scrutinizing a contract for provision of electric power
system’s ancillary services.
2. This
Circular is applicable to Vietnam Electricity Corporation, electricity trading
companies, the operator of electric power system and market, and providers of
electric power system’s ancillary services.
3. This
Circular amends Article 68 of the Circular No. 30/2014/TT-BCT dated 02 October
2014 by Ministry of Industry and Trade on regulating the operation of the
competitive power generation market.
Article
2. Terminology
In this Circular, the
following terms are construed as follows:
1. Scheduled
available output of an electric generator is
the anticipated maximum output gained during the electric generator's
continuous and stable generation of electric power for at least 8 hours.
3. Provider
of ancillary services is a power generation enterprise that owns one or several
power plants and is mobilized to provide ancillary services as per dispatching
orders. For the services providing fast boot or cold boot reserve,
mandatory maintenance of electric power system security during power
generation, the providers of ancillary services from Electricity Regulatory
Authority's list shall engage in contracts for provision of ancillary services
with Vietnam Electricity Corporation. Fees
for provision of ancillary services as parts of power generation costs are
settled as per current regulations.
4. The
operator of electric power system and market governs and controls
the generation, transmission and distribution of electric power through
national power grids while managing transactions in the electric power market.
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6. The
limit of forced outage hours due to unexpected factors refers
to the total annual sum of forced outage due to unexpected factors subject to
particular characteristics of each generator and power plant. It includes the
amount of outage hours originating from errors or repairs or maintenance of
equipment outside the plans approved.
7. Year
N refers to the year when ancillary service pricing takes
effect, from the 1st of January to 31st of December.
8. Year
N-1 immediately precedes year N.
9. Year
N-2 precedes year N-1
Chapter
II
METHOD FOR PRICING OF ANCILLARY SERVICES
Title
1. PRINCIPLES FOR PRICING OF ANCILLARY SERVICES
Article
3. Principles for pricing of ancillary services
1. The
pricing of services for fast boot reserve, cold boot reserve and mandatory
maintenance of electric power system security during power generation adopts
the principles of adequately compensating for reasonable and valid actual
expenses and generating rational annual profit for thermal power plants
providing ancillary services. Price is exclusive of value added tax and
environmental protection fee levied on solid waste. The price of ancillary
service for the said entity consists of:
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b) Variable price for
ancillary service providers’ recovering of fuel and material costs for
production of electricity as per a dispatching order by the operator of
electric power system and market;
c) Generator booting price
for the recovery of the power generator's costs of fuel and electricity consumed
when a generator in hot, warm or cold shutdown condition is switched on to
produce electricity as per a dispatching order by the operator of electric
power system and market.
2. For
frequency control service, the principles for mobilization and pricing are:
a) The operator of electric
power system and market mobilizes strategic multi-target hydroelectric plants
of Vietnam Electricity Corporation to provide frequency control service. Reasonable
and valid actual costs for providing frequency control service are posted into
the electricity production and trading costs of strategic multi-target
hydroelectric plants;
b) For the plants
participating directly in the electric power market, the frequency control
service provision cost is settled as per the regulation of the operation of
competitive power market as issued by the Ministry of Industry and Trade, and
relevant regulations.
3. For
spinning reserve service, the providers of spinning reserve service are power
plants participating directly in the power market. The
method for pricing of spinning reserve service is governed by Title 3 of this
Chapter.
Title
2. METHOD FOR PRICING OF ANCILLARY SERVICES FOR FAST BOOT RESERVE, COLD BOOT
RESERVE AND MANDATORY MAINTENANCE OF ELECTRIC POWER SYSTEM SECURITY
Article
4. Fixed pricing method
1. Fix
priced (gcd) for a provider of ancillary services is calculated by
the following formula:
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Including:
gcd
Fixed price
(VND/(kW.month));
Gcd,N:
The ancillary service
provider’s total fixed income (in VND) in the year N;
Planned annual coefficient
of availability of the provider of ancillary services is determined as per
section 2 of this Article;
Pkd,i
Scheduled available output
of generator i in the year N (kW);
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Quantity of power
generators of the provider of ancillary services.
The provider of ancillary
services are responsible for defining the scheduled available output of a
generator in the year N, which shall be negotiated and stipulated in the
contract for provision of ancillary services with Vietnam Electricity
Corporation. Such parameter is a factor for the calculation of the fixed price
for the provider of ancillary services.
2. Planned
annual coefficient of availability of the provider of ancillary services is calculated
by the following formula:
Including:
The number of hours for
repairs of the generator i according to the repair plan in the year N (hour);
HDMCB,i
The limit of hours of
forced outage of the generator i due to unexpected factors in the year N
(hour), according to the parties' negotiations;
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The quantity of generators
of the provider of ancillary services.
Article
5. Method for calculation of total fixed income
Total fixed income in the
year N (Gcd,N) of the provider of ancillary services is
determined by the following formula:
Gcd,N
= CKH + COM,N + CLVDH + LNN
Including:
CKH:
Total fixed asset
depreciation cost of the provider of ancillary services in the year N is
calculated according to section 1 of this Article (VND);
COM,N:
Total fixed operational
cost in the year N is ascertained according to Section 2 of this Article
(VND);
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Total sum of interest cost
and lending fees payable in the year N for the ancillary service provider's
investments in assets (VND);
LNN:
Rated profit in the year N
(VND).
1. Total
fixed asset depreciation cost (CKH) of the provider of ancillary
services in the year N is determined subject to the depreciation method and
service time of fixed assets as per the Circular No. 45/2013/TT-BTC dated 25
April 2013 by the Ministry of Finance on issue the regulations on the
management, use and depreciation of fixed assets and written amendments.
2. Total
fixed operational cost (COM,N) of the provider of ancillary services
in the year N is calculated by the following formula:
COM,N
= CVLcđ + CTL + CSCL + CMN + CK
In which:
CVLcd:
Total fixed material cost
in the year N (VND);
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Total salary cost in the
year N (VND):
CSCL:
Total major repair cost in
the year N (VND);
CMN:
Total outsourced service
cost in the year N (VND);
CK:
Total sum of other costs
in monetary unit in the year N (VND).
a) Method for calculation of
total material cost (CVLcd)
Total fixed material cost (CVLcd)
of the provider of ancillary services in the year N is determined subject to
the provider’s audited fixed material cost in the year N-2, exclusive of
unusually variable costs, at the slippage rate of 2.5% per year.
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Total salary cost in the
year N (CTL) is composed of total salary cost and salary-related
costs such as expenses for medical insurance, social insurance and unemployment
insurance and labor union's expenditure, according to relevant laws.
c) Method for calculation of
major repair cost (CSCL)
The parties negotiate total
major repair cost (CSCL) subject to the values approved by competent
authorities. If a year's repair schedule,
due to objective reasons, is delayed to the following year, the parties adjust
the following year's major repair cost to have the cycle-based major repair
cost unchanged or slightly changed.
d) Method for calculation of
total outsourced service cost (CMN)
Total outsourced service
cost in the year N (CMN) includes all payables for outsourced
entities' services on request, such as water, telephone, outsourced
electricity, hiring of audit advisor and other service expenses for the
ancillary service provider's managerial and operational activities in the year
N.
Total outsourced service
cost in the year N is determined subject to the provider’s audited outsourced
service cost in the year N-2, exclusive of unusually variable costs, at the
slippage rate of 2.5% per year.
dd) Method for calculating
total sum of other costs in monetary unit (CK)
Total sum of other costs in
the year N (CK) includes expenses for business trips, travel on
leave, meetings, guests, trainings, scientific research, initiatives, meal
break, self-defense militia, guards, recovery from aftermaths of flood or
storm, fire fighting, labor protection, work clothing, labor safety, industrial
and environmental sanitation, water at work, material incentive for night
shift, hazard allowance, first aid for work accidents, ordinary medicine,
workers' physical rehabilitation, unemployment aid, recruitment, land tax, and
exchange differences and other costs in monetary unit in the year N according
to current regulations.
Total sum of other costs in
the year N (exclusive of land tax and exchange differences) is determined
subject to the provider’s total sum of other audited costs in monetary unit in
the year N-2 (in case the figures in the year N-1 have been audited, the data
in the year N-1 is used), exclusive of unusually variable costs, at the
slippage rate of 2.5% per year.
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4. The
profit in the year N (LNN) is determined by the following formula:
LNN
= ROE x VCSH
In which:
ROE:
The ancillary service
provider’s return on equity in the year N is determined subject to the
general return rate of Vietnam Electricity Corporation in the electrical
power retail plan currently in force. For
the ancillary service providers capitalized prior to the effect of this Circular,
the parties negotiate the return rate subject to power plants' commitments
towards shareholders in the former's capitalization plan previously approved
by competent authorities;
VCSH:
The equity of the provider
of ancillary services is determined subject to equity investments in power
plants, to the 31st of December of the year N-2, according the
audited financial statement (VND).
Article
6. Variable pricing method
1. The
following formula determines the variable price for the provider of ancillary services
supplying supporting services at the request of the operator of electric power
system and market:
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In which:
:
The variable price of the
generator i at its maximum output j (VND/kWh);
bi,j
Refined fuel consumption
rate of the generator i at the power j is determined subject to the fuel
consumption characteristics of the generator (kg/kWh or BTU/kWh);
Gnl:
The price of fuel for
production of electricity (VND/kg or VND/BTU);
CvIp,i:
Auxiliary material cost
rate for the generator i to produce 01 kWh of electricity (VND/kWh);
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Generator i of the
provider of ancillary services.
2. Ancillary
service providers are responsible for establishing fuel consumption
characteristics of the generators and auxiliary material cost rate for
production of electricity, which shall be negotiated and stipulated in the
contracts for provision of ancillary services with Vietnam Electricity
Corporation. Such parameters are factors for the calculation of the generators’
variable prices. Characteristics and rates in the year N-1 can be utilized for
the year N, if necessary.
Article
7. Method for start-up pricing
1. The
booting price of the generator, defined for every start of the generator at
each booting mode, is calculated by the following formula:
Including:
:
The booting price of the
generator i at the booting mode j (VND);
Mi,j:
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Gnlkd:
The cost of fuel consumed
to start the generator (VND/kg or VND/BTU);
:
The rate of electric power
internally consumed to start the generator i at the booting mode j (kWh);
gkd:
The price of electric
power purchased by the provider of ancillary services for the starting the
generator, which is determined subject to the electric power retail price (a
week's average hourly charge) currently imposed on customers generating
electricity at the voltage level for generators' internal consumption of
power (VND/kWh);
:
The rate of auxiliary fuel
consumption for starting the generator i at the booting mode j in a
coal-fired thermal power plant (kg);
gnlp:
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:
The cost of auxiliary
materials used to start the generator i at the booting mode j in a coal-fired
thermal power plant (VND);
j:
The booting mode of the
generator (hot, warm or cold);
i:
The generator i of the
provider of ancillary services.
2. Providers
of ancillary services are responsible for establishing the consumption rates
for fuel and auxiliary materials and the rate of electric power internally
consumed for hot boot, warm boot and cold boot of each generator, which shall
be negotiated and stipulated in the contracts for provision of ancillary
services with Vietnam Electricity Corporation. Such parameters are factors for
the calculation of generators' booting price. The
rates established in the year N-1 can be used for the year N, if necessary.
Title
3. METHOD FOR PRICING OF SPINNING RESERVE SERVICE
Article
8. Method for pricing of spinning reserve power
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SRj
= Max [SMPi, bid] - bid
In which:
SRi:
The price for 01 kW of
spinning reserve power produced by the generator G in the trading cycle i
(VND/kW);
SMPi:
The price of electricity
in the power market during the trading cycle i (VND/kWh);
bid:
The highest bid price for
the generator providing spinning reserve service in the power market during
the trading cycle i (VND/kWh).
2. The
spinning reserve power determines the payables in the trading cycle i, which
the operator of electric power system and market examines, compiles and
announces according to the Ministry of Industry and Trade's Regulation on the
operation of the competitive power market. Only the power contributing to the
spinning reserve service is remunerated.
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THE PROCEDURE FOR CALCULATION, ASSESSMENT AND APPROVAL OF
ANCILLARY SERVICE PRICE
Article
9. The procedure for calculation, assessment and approval of ancillary service
price
1. Prior
to the 1st of November of the year N-1, Vietnam Electricity
Corporation is responsible for pricing the services for fast boot reserve, cold
boot reserve, mandatory maintenance of electric power system security for the
providers of ancillary services on power grids according to Article 4, Article
5, Article 6 and Article 7 of this Circular. Later, prices are reported to
Electricity Regulatory Authority, which present the figures to the Minister of
Industry and Trade for approval.
2. Before
the 15th of December of the year N-1, the Ministry of Industry and
Trade ratifies the prices of ancillary services in the year N for the providers
of services for fast boot reserve, cold boot reserve and mandatory maintenance
of electric power system security.
Article
10. Documents for ratification of ancillary service pricing
The following documents
shall be presented to the Electricity Regulatory Authority for assessment and
transfer of such to the Ministry of Industry and Trade for ratification of
prices of services for fast boot reserve, cold boot reserve and mandatory
maintenance of electric power system security:
1. The
application for ratification of ancillary service prices.
2. 05
(five) copies of the written description for the calculation of ancillary
service prices, including these essential particulars:
a) The report on power
plants' past and planned enforcement of economic-technical norms to the 30th
of September and 31st of December of the year N-1, respectively;
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- The
report on business and production results, such as power plants' revenues and
costs to the 30th of September and their anticipated revenues, costs
and profits to the 31st of December in the year N-1/
b) The description and
calculation of ancillary service prices in the year N consist of:
The detailed description and
calculation sheet of the business plan, including depreciation cost, interest
cost, salary cost, auxiliary material cost, major repair cost, outsourced
service cost, other costs in monetary unit, drying cost, exchange differences,
rated profit. Such parameters are factors for the determination of power
plants’ fixed costs and price in the year N.
c) Documents enclosed:
- The
general financial statement for the year N-2 and the cost price report, audited
by an independent auditing entity (if available), in consonance with each
factor of the production of electricity in the year N-2;
- The
plan for major repairs of generators of the provider of ancillary services in
the year N;
- The
ancillary service provider's registration of electricity generators’ available
output anticipated in the year N;
- The
fuel consumption characteristics of the ancillary service provider's
generators;
- The
ancillary service provider’s auxiliary material rate for production of
electricity;
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- The
rate of electric power for drying generators in standby shutdown condition;
- The
anticipated price of fuel and materials in the year N for production of
electricity and regular repairs.
Chapter
IV
CONTRACT FOR PROVISION OF ANCILLARY SERVICES
Article
11. Sample contract for provision of ancillary services
1. The
sample contract, as stipulated in the appendix of this Circular, is applicable
to the provision of ancillary services for fast boot reserve, cold boot
reserve, mandatory maintenance of electric power system security for generation
of electricity, between the designated provider of ancillary services and
Vietnam Electricity Corporation.
2. The
parties, on annual basis, are responsible for unanimously executing amendments
to the clauses on ancillary service pricing in their contracts, according to
the decisions by Ministry of Industry and Trade. The amended contract shall be
submitted to the Electricity Regulatory Authority.
Article
12. Procedures for inspection of a contract for provision of ancillary services
1. In
05 working days' time upon the parties' affixture of their initial signatures
on the contract for provision of ancillary services, Vietnam Electricity
Corporation is responsible for send the draft contract to the Electricity
Regulatory Authority for the latter’s inspection.
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3. Vietnam
Electricity Corporation, no later than 30 working days upon the official
signing of a contract for provision of ancillary services, is responsible for
submitting 01 copy of the contract to the contract to the Electricity
Regulatory Authority.
Chapter
V
ENFORCEMENT
Article
13. Amendments to Article 68 of Circular No. 30/2014/TT-BCT
The following amendments
redress Article 68 of Circular No. 30/2014/TT-BCT dated 02 October 2014 by
Ministry of Industry and Trade regulates the operation of the competitive power
generation market:
Article 68. Calculation of
electric power output billed for payables
1. The
principles for determining the electric power output billed for each trading
cycle’s payables
a) In each cycle, the
pricing of market output is scheduled for the generators producing electricity
to the market, except for slow generators in reserve shutdown condition and
those in forced outage condition;
b) For the generators not
providing spinning reserve and frequency control services, their billed output
equals their output of electricity at measuring points during trading cycles;
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2. The
spinning reserve output billed for payables in the trading cycle i is
formulated as follows:
Qdpq
= Min [{Min[(Qdd,i (QĐ) + Qdpqcb),
Qcb] - Qmq}, Qdpqcb]
Including:
Qdpq:
The generator’s spinning
reserve output in the trading cycle i at measuring points (kW);
Qdđ i (QĐ)
The output demanded as per
a dispatching order and interpreted to that at measuring points in the
trading cycle i (kWh);
Qdpqcb:
The generators’ spinning
reserve output announced for successive days and interpreted to that at
measuring points in the trading cycle i (kW);
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The generator’s output
announced in its schedule offer and interpreted to that at measuring points
of the trading cycle i (kW);
Qmq:
The generator’s
electricity output measured in the trading cycle i (kWh).
3. The
following formula determines the frequency control output for calculation of
payables in the trading cycle i:
Qđt
= Min [{Min[(Qdd,i (QĐ) + Qđtcb), Qcb] - Qmq},
Qđtcb]
Including:
Qđt:
The generator’s frequency
control output billed in the trading cycle i, interpreted to that at
measuring points (kW);
Qdd,i (QĐ):
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Qđtcb:
The generator’s frequency
control output announced for successive days, interpreted to that at
measuring points of the trading cycle i (kW);
Qcb:
The generator’s output
announced in its schedule offer, interpreted to that at measuring points of
the trading cycle i (kW);
Qmq:
The generator’s
electricity output measured in the trading cycle i (kWh).
4. By 9
o'clock on the day D+2, the operator of electric power system and market is responsible
for announcing each generator's output billed for payables in trading cycles of
the former day D.
Article
14. Enforcement
1. Electricity
Regulatory Authority is responsible for:
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b) Inspecting and presenting
the pricing of ancillary services provided by power plants to the Minister of
Industry and Trade for approval;
c) Inspect contracts for
provision of ancillary services;
d) Guide and inspect the
enforcement of this Circular and settle relevant disputes.
2. Vietnam
Electricity Corporation is responsible for:
a) Listing power plants
providing services for fast boot reserve, cold boot reserve, mandatory
maintenance of electric power system security, and providing the list to the
Electricity Regulatory Authority for ratification and release on annual basis;
b) Negotiating and setting
prices of ancillary services with the providers of such;
c) Negotiating and entering
contracts or authorizing power trading companies to negotiate and engage in
ancillary service contracts with the providers; and presenting contracts to the
Electricity Regulatory Authority for contract inspection;
d) Presenting ancillary
service prices in providers’ agreements to the Electricity Regulatory Authority
for assessment, which submits such data to Ministry of Industry and Trade for
approval.
3. The
providers of services for fast boot reserve, cold boot reserve and mandatory
maintenance of electric power system security are responsible for:
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b) Providing sufficient
information, assuming liabilities and maintaining accuracy, logic and validity
of data and documents submitted to relevant entities and authorities during
negotiation and inspection of contracts for provision of ancillary services.
Article
15. Effect
1. This
Circular comes into force as of 07 August 2015.
2. It
amends Article 68 of Circular No. 30/2014/TT-BCT dated 02 October 2014 by
Ministry of Industry and Trade on the operation of the competitive power
generation market.
3. Vietnam
Electricity Corporation and the providers of services for services for fast
boot reserve, cold boot reserve and mandatory maintenance of electric power
system security shall negotiate and setting ancillary service prices in 2015
according to the methods in this Circular. Upon the effect of this Circular,
such prices shall be presented to the Electricity Regulatory Authority for
assessment before transferred to Ministry of Industry and Trade for approval.
4. Relevant
entities must submit their inquiries on difficulties to the Electricity
Regulatory Authority that provides solutions under its jurisdiction or reports
to Ministry of Industry and Trade for settlement of matters./.
pp.
MINISTER
DEPUTY MINISTER
Hoang Quoc Vuong
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APPENDIX
SAMPLE CONTRACT FOR PROVISION OF ELECTRIC POWER SYSTEM’S
ANCILLARY SERVICES
(Enclosed to the Circular No. 21/2015/TT-BCT date 23 June 2015 by Minister
of Industry and Trade)
SOCIALIST
REPUBLIC OF VIETNAM
Independence – Freedom – Happiness
ANCILLARY SERVICE
CONTRACT
POWER PLANT OF …
Between
COMPANY
[Name of the company]
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-
and -
VIETNAM
ELECTRICITY CORPORATION
(BUYER)
CONTRACT
NO. …/20…/DVPT/[Company’s name]-[EVN]
Hanoi,
… [month] / 20 …
TABLE
OF CONTENTS
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Article 2. Effect and term
of contract
Article 3. Sale and purchase
of ancillary services
Article 4. Commitments
Article 5. Responsibilities
for establishing connections and electricity measurement system
Article 6. Power plant
dispatch and operation
Article 7. Invoicing and
payment for electricity
Article 8. Events affecting
the Contract and legal remedies
Article 9. Termination and
postponement of contract
Article 10. Compensation for
damages
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Article 12. Settlement of
disputes
Article 13. Restructuring of
electricity sector and transfer of rights and duties
Article 14. Document
retention and provision of information
Article 15. Other expenses
Article 16. Authorized
representative and exchange of information
Article 17. Confidentiality
Article 18. Other
stipulations
Appendix 1. MAIN PARAMETERS
OF THE POWER PLANT
Appendix 2. MEASUREMENT
SYSTEM AND COLLECTION OF DATA
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Appendix 4. INFORMATION
REQUIRED BY SCADA/EMS SYTEM
Appendix 5. PRICE AND
PAYMENT FOR ANCILLARY SERVICES
SOCIALIST
REPUBLIC OF VIETNAM
Independence – Freedom – Happiness
ANCILLARY
SERVICE CONTRACT
Pursuant to the Law on
electricity dated 03 December 2004 and the Law on amendments to Electricity Law
dated 20 November 2012;
Pursuant to the Commercial
Law dated 14 June 2005;
Pursuant to the Government’s
Decree No. 137/2013/NĐ-CP dated 21 October 2013 on detailing the enforcement of
certain articles of the Law on electricity and the Law of amendments to
Electricity Law.
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As per the parties' demands
for sale and purchase of ancillary services,
As of … , at …
The parties include:
Vendor:
___________________________________________________________________
Address:
___________________________________________________________________
Telephone:
_____________________________ Fax:________________________________
Tax code:__________________________________________________________________
Account:
_____________________________ Bank: ________________________________
___________________________________________________________________________
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Position:
__________________________________ as authorized by __________
____________________________________________ according
to the letter of authorization
no_______________________________,
dated ________
Buyer: Vietnam Electricity
Corporation
Address:
___________________________________________________________________
Telephone:
_____________________________ Fax: _______________________________
Tax code:
__________________________________________________________________
Account: _____________________________
Bank:________________________________
___________________________________________________________________________
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Position:
__________________________________ as authorized by __________
_______
__________________________________________ according
to the letter of authorization
no_______________________________,
dated ________
The parties agree to enter
the Ancillary service contract on the following terms:
Article 1. Definitions
In this contract, the
following terms are construed as follows:
1. Vendor
refers to … [Company] that
owns the Power plant of …
2. Buyer
refers to Vietnam Electricity Corporation.
3. The
available output announced by the Vendor is the readily
attainable output of a generator or power plant at a definite point of time.
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5. Connection
point is a site for the Vendor's connection of equipment, power
grids and power plant's facilities to the National power system.
6. Point
of electricity delivery is a site for the measurement of the
amount of Vendor's electricity sold to the Buyer.
7. National
power system consists of electric power generation equipment, power grids
and ancillary equipment jointly connected and unanimously controlled on
nation-wide scale.
8. Primary
measurement system is composed of measurement equipment (meters, measurement
current transformers, measurement transformers) and secondary circuits
connected to the said equipment. The system is installed at the parties' agreed
locations to set firm basis for the calculation of the amount of electricity
delivered.
9. Backup
measurement system comprises every measurement equipment (meters, measurement
current transformers, measurement transformers) and secondary circuits
connected to the said equipment. The system is installed at the parties’ agreed
locations for testing and backing up the primary measurement system.
10. Contract
refers to this ancillary service contract and its appendices
and amendments.
11. Dispatching
order is an order for real-time steering and control of electric
power system’s operations.
12. Day refers
to a day in Gregorian calendar.
13. Power
plant refers to the Power plant [name of Power plant] with the maximum established
output of … MW, including … generators at [power plant's location], each of
which has an output of … MW.
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15. Connection
equipment refers to power transmission lines, measurement equipment
system, control devices, protective relay, circuit breakers, information and
communication system and buildings synchronized for power plants' linkage with
points of connection.
16. Competitive
power generation market is the first-level electricity market as
defined in Article 18 of the Electricity Law and operates according to the
Ministry of Industry and Trade’s regulation on the operation of the competitive
power generation market.
Article 2. Effect and term
of contract
1. Effect
of Contract
This contract comes into
force upon the parties’ authorized representatives’ official signing of the
contract or according to the parties' stipulation in this contract.
2. Term
of Contract
The contract, unless
extended or terminated according to Article 9 of this contract, takes effect
from its effective date to the closing date of the competitive power market
according to competent governmental authorities.
Article 3. Sale and purchase
of ancillary services
1. Vendor
undertakes to provide ancillary service(s) for (fast boot reserve), (cold boot
reserve), (mandatory maintenance of electric power system security) according
to the dispatching orders and the Ministry of Industry and Trade’s regulation
on power transmission system.
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3. Ancillary
service price is defined on annual basis in Appendix 5 of the contract. By
the 31st of December each year, Buyer and Vendor share the duty to
execute written amendments to the contract’s clause on ancillary service price
upon Ministry of Industry and Trade’s decision on approval of electric power
system’s ancillary service price.
4. Buyer
undertakes to pay for the Vendor's provision of ancillary services on monthly
basis according to Article 7 and Appendix 5 of the contract/
Article 4. Commitments
The parties undertake that:
1. Each
party's signing and execution of the contract do not violate its corporate
regulations, relevant laws or other contracts that it engages in.
2. The
parties’ signing and execution of the contract abide by their electrical
operating licenses as issued by competent authorities and relevant laws.
3. The
parties are not defendants in a lawsuit, whose result may remarkably alter
contract parties’ financial capacities or ability to execute their contracted
duties or the validity and effect of contract, in a court, commercial
arbitration or before a competent governmental authority.
4. The
parties undertake to execute precisely the duties and contents in this
contract.
Article 5. Responsibilities
for establishing connections and electricity measurement system
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Vendor is responsible for:
a) Investing, managing and
operating the equipment for connection, transmission and delivery of
electricity to Buyer at points of delivery according to Ministry of Industry
and Trade’s regulation on power transmission system and relevant technical
regulations and standards of the electricity sector;
b) Investing, installing,
managing, operating and maintaining the power plant’s system equipment for
collection, transmission of data and automatic control for the power plant’s
connection to SCADA/EMS system of the operator of national electric power
system and electricity market. Such connection facilitates the operation of the
power plant.
2. Measurement
system
a) Vendor is responsible for
investing, installing, managing, operating, maintaining and inspecting the
equipment of the primary and backup measurement systems on annual basis. Competent
or authorized organizations shall inspect the measurement equipment or verify
the precision of such equipment. The
measurement equipment must be secured with lead seal after the inspection;
b) Each party can request
additional or random inspection of measurement equipment and system, if
necessary. Vendor is responsible for organizing inspections at Buyer’s
request. If random inspection detects measurement equipment’s
deviations higher than the permissible limit, Vendor must pay for the random
inspection. If deviations fall within the permissible limit, the requesting
party incurs inspection fees.
c) Vendor's duty is to
inform Buyer of the result of the inspection of measurement equipment. Vendor's
duty is to inform Buyer in advance of the inspection of measurement equipment. Buyer
is responsible for assigning its witness of the process of seal removal,
inspection and lead sealing of the meters;
d) If measurement
equipment's deviations exceed the permissible limit according to the Regulation
on electricity measurement, Vendor is liable for adjusting or replacing such
equipment. If one of the parties considers a meter damaged or not
functional, it must promptly inform the other party. Vendor bears the duty of
inspection and repair;
dd) The amount of
electricity traded by Buyer and Vendor is defined according to the method of
delivery in Appendix 2 of the contract.
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(i) If the primary
measurement system functions but generates deviations higher than the regulated
precision level, the amount of electricity traded is determined by the primary
measurement system and interpreted to an equivalent value of electricity at the
deviation rate of 0%. According to the adjusted result of measurement agreed by the
parties, Vendor bears the duty to calculate the payables that one of the
parties owes to the other. Such payables arise during the measurement system’s
inaccurate time.
(ii) If the primary
measurement system does not function, the parties consider the problematic
conditions and actual deviations of measurement systems according to the
inspecting entity’s records and figures approved by the parties to unanimously
consent to a method for calculating the amount of electricity to be adjusted
during the time of inaccurate measurement. If
the parties fail to agree to a method and the amount of electricity trade
requires adjustment, the parties are responsible for settling disputes
according to Article 12 of the contract.
e) If the measurement
equipment burns or breaks down, Vendor is responsible for having it replaced or
repaired in the shortest time to make the equipment abide by technical
requirements and resume to work. The replacements or repaired equipment, before
used, must be inspected according to regulations.
Article 6. Power plant
dispatch and operation
1. The
duty to register a method of mobilization
Vendor bears the duty to
register the method for mobilizing each of the power plant's generators,
according to the Electricity Regulatory Authority's procedure for planning the
operation of the national power grids, with the operator of the national power
system and electricity market. Buyer also receives a written copy of the
method. The method shall include:
a) Available output announced,
electricity output anticipated and monthly repair plan for the subsequent year;
b) Available output
announced, electricity output anticipated and repair plan for the following
month;
c) Available output
announced, electricity output anticipated and plan of repair and maintenance
for the ensuing week;
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2. Operation
of Power plant
a) Vendor is responsible for
conforming to the regulations on power plant dispatch and operation according
to the Ministry of Industry and Trade’s regulations on power transmission
system, electricity sector’s technical regulations and standards and relevant
documents. Vendor bears the duty to operate the power plant’s generators
according to technical specifications in Appendix 1 and Appendix 3 of the
contract;
b) Vendor bears the duty to
install, operate and maintain the equipment to synchronize the power plant with
the national power grids. Vendor is responsible for conforming to the Ministry of
Industry and Trade’s regulation on power transmission system, electricity
sector’s technical regulations and standards and other dispatch regulations
upon the synchronization of the power plant with the national power grids;
c) If the national power
grid operation methods bring threats to the power plant's primary equipment,
cause injury, fatality or equipment damages, Vendor is allowed to disconnect
the generators.
Article 7. Invoicing and
payment for electricity
1. Invoicing
and payment for electricity
a) By the … [date] of each
month, Vendor informs Buyer in writing of the latter’s payables for the
former’s provision of ancillary services with the immediate preceding month’s
payment documents.
The documents for payment of
the immediate preceding month’s ancillary services (referred to as payment
documents) include: the confirmation of meter-based amount of electricity, the
sheet of available output announced and implemented on daily basis, the request
of the confirmation of availability coefficient used and boot times billable,
the summary of payables with the detailed calculation sheets of payables as
defined in Article 5 of the contract and relevant documents.
b) In 03 working days’ time
upon receiving the payment documents, Buyer verifies the accuracy of such
documents. Buyer, if detecting errors, informs Vendor in writing for the
latter's correction of payment documents. If
Buyer does not inform Vendor by the 15th of each month, payment
documents shall be deemed unanimously agreed;
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d) Buyer bears the duty to
transfer all amounts invoiced for the immediate preceding month’s ancillary
services through banks, no later than the … [day] (payment deadline). Buyer
incurs bank transfer fees;
dd) If data for invoicing is
insufficient upon the release of a payment invoice, Vendor is allowed to
temporarily calculate the payables for its provision of ancillary services by
rationally estimating missing figures. The
adjusted payables constitute deductibles for the month when official data is
available.
2. Payment
disputes
a) If Buyer does not consent
to parts or all payables invoiced, it must inform in writing of the amounts
invoiced and reasons of its disapproval prior to the payment deadline. Buyer
bears the duty to settle all undisputed payables by or on the due date of
payment;
b) In 15 days’ time upon
receiving the notice of payment dispute, Vendor must respond to Buyer
officially in writing. If the parties fail to resolve payment disputes, one of the
parties can settle disputes according to Article 12 of the contract;
c) If Buyer does not
complain in writing about the amounts invoiced before the payment deadline, it
is deemed to waive its rights to complain about the payables invoiced. If
Vendor does not respond to Buyer official in writing about payment disputes in
15 days’ time upon the former’s receipt of the latter’s notice of payment
disputes, the former is deemed to abandon its rights to complain about the
payables invoiced.
3. Calculation
of interest
Interest is imposed on:
a) The monthly payables for
electricity deferred after the deadline according to point d, section 1 of this
Article;
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c) The adjusted payables for
monthly electricity according to point dd, section 1 of this Article.
Interest accumulates on
monthly basis from the day immediately following the payment deadline to the
actual date of payment fulfillment. The rate of such interest equals a 12-month
deposit’s accrual interest rate for Vietnamese currency plus an annual interest
margin rate of 3%, on the due date of the invoice, as defined by four
commercial banks including Vietcombank, Vietinbank, BIDV and Agribank or
legitimate successors of such banks.
4. Deductibles
The parties may deduct
debts, disputed amounts settled, adjusted amounts and monthly interest from the
monthly payables for electricity in the nearest month’s invoice.
Article 8. Events affecting
the contract and legal remedies
1. The
following events affect Buyer’s execution of the contract.
a) The events related to
Vendor’s dissolution or bankruptcy:
(i) Vendor is dissolved
(except for pre-merger or pre-consolidation dissolution);
(ii) Vendor fails to settle
due debts;
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(iv) A court issues its
rulings on the bankruptcy procedure against Vendor.
b) Vendor commits serious
violations of its duties as stated in the contract and fails to correct such
violations in 90 days upon Buyer's notice of such violations.
c) Vendor is suspended by
competent authorities’ decisions.
2. The
following events affect Vendor’s execution of the contract
a) The events related to
Buyer’s dissolution or bankruptcy:
(i) Buyer is dissolved
(except for pre-merger or pre-consolidation dissolution);
(ii) Buyer fails to settle
due debts;
(iii) A court issues its
decision on the bankruptcy procedure against Buyer.
b) Buyer commits serious
violations of its duties as defined in the contract and fails to correct such
violations in 90 days upon Vendor’s notice of such violations.
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3. Legal
remedies
a) If fundamental violations
occur and continue, the affected party has the right to enforce the legal
remedies, as stated in Article 9 of this contract, against the violating party;
b) Legal remedies in this
contract do not nullify each other or obstruct other remedies.
Article 9. Termination and
postponement of contract
1. Termination
of contract by agreement
The parties can enter a
written agreement on early termination of contract.
2. Unilateral
termination of contract
a) If an affecting event, as
defined in point a, point b, section 1 or point a, point c, section 2, Article
8 of the contract, occurs, continues and affects one of the contract parties,
the affected party is allowed to unilaterally terminate the contract 90 days
after its delivery of a written notice to the other party;
b) If force majeure affects
one party and continues in at least 180 days, the other party is allowed to unilaterally
terminate the contract 30 days after its delivery of written notice;
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3. Postponement
of contract
Buyer is allowed to postpone
the contract, after informing Vendor, if Electricity Regulatory Authority
suspends Vendor from participating in the competitive power market or by
competent authorities from operating in the power generation sector. Contract
postponement time must not exceed the duration of the suspension of
participation in the competitive power generation market or operation in the
electricity sector.
Article 10. Compensation for
damages
1. The
violating party is responsible for compensating the affected party for damages
caused by the former's violations. Damages include losses, damages or costs
that the affected party has incurred while executing its contracted rights and
duties. The method for calculation of damages is governed by the
Civil Law.
2. The
affected party, if claiming for damages, shall promptly inform the violating
party in writing of the nature of the events for damage claims. The
affected party's deferral of its notices shall not impinge on the violating
party’s duties of compensation, unless the violating party suffers from actual
damages due to the affected party’s delay.
Article 11. Indemnity
1. The
violating party is exempt from liabilities in the following events:
a) An event of indemnity, as
agreed by the parties, occurs;
b) One party's faults cause
all of the other's violations;
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d) Force majeure occurs
Force majeure is unavoidable
beyond one party’s control and obstructs or delays that party’s execution of
its contracted duties, partly or fully, despite its implementation of rational
measures.
Force majeure obstructing or
delaying the parties' execution of their contract duties must overwhelm the
affected party's reasonable control and derive from none of its faults or
negligence. Moreover, the affected party fails to avoid such events despite its
implementation of reasonable solutions, practices, procedures and standards.
Such events include but are not limited to:
i) A decision by a court or
competent authority adversely affecting one party’s execution of its contracted
duties;
ii) Natural disasters
including fire, explosion, drought, flood, volcanic eruption, earthquake,
landslide, tide, storm, tornado, hurricane or similar events;
iii) Riot, demonstration,
revolt, insurgency, war activities whether war is declared or not, opposition,
terrorism, sabotage, embargo, blockade, quarantine or similar events;
iv) Vendor’s power plants or
assets are nationalized, deprived or seized according to competent governmental
authorities' decisions;
v) Vendor is not licensed by
competent authorities or fails to obtain written approvals necessary despite
its fulfillment of all duties according to the laws related to the said
licenses and written approvals.
2. Announcement
and endorsement of indemnity
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b) When indemnity ends, the
violating party must immediately inform the other. If the violating party fails
or delays its announcements to the other party, it must compensate for damages
caused.
c) The violating party bears
the duty to evidence its indemnity with the affected party.
3. Indemnity
and refusal to execute the contract in force majeure
a) The party committing
violations due to force majeure is responsible for regularly reporting to the
other party about the former’s implementation of solutions against force
majeure or information reasonably requested by the other party. Such reports
shall evidence the violating party's adducing of force majeure. The other party
must be informed of force majeure' end time in 48 hours from the finis of such
events, unless loss of communication occurs;
b) The party affected by
force majeure is only excused for its non-execution or delay of contracted
duties due to such events after it release notices and executes duties of
recovery according to point a of this Article;
c) If force majeure
obstructs one party's execution of its contracted duties in at least 180 days,
one of the parties is allowed to unilaterally terminate the contract.
Article 12. Settlement of
disputes
1. If
disputes between the contract parties arise, the party provoking disputes must
inform the other party in writing of the contents of such disputes. The
parties are responsible for discussing solutions against disputes in 60 days
upon the date of the notice from the party raising such disputes. The
parties are responsible for discussing disputes over payments in 15 days. The
parties are allowed to negotiate and execute an extension of dispute settlement
time in writing.
2. If
the parties fail to settle disputes through discussions within the time limit
as per section 1 of this Article, the parties shall agree to forward their
disputes to the Electricity Regulatory Authority or other authorities as
unanimously selected by the parties to settle disputes according to relevant
laws.
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1. Restructuring
of electricity sector and transfer of Buyer’s rights and duties
The parties agree that Buyer
may be reorganized, restructured, dissolved or gradually deprived of its sole
capacity of purchasing electricity for the conversion of the electricity
sector's model to that of the competitive power market according to the pathway
approved by Prime Minister or subsequent written amendments. When
a competent governmental authority issues a decision on reorganizing,
restructuring or dissolution, Buyer is allowed to assign all or parts of its
contracted rights and duties without Vendor's consent to one or many
successors, which are defined by the competent governmental authority. Such
successors are responsible for executing Buyer’s legal rights and duties
according to the laws.
Vendor must approve in
writing all of Buyer’s assignment or relegation of its rights and duties from
this contract.
2. Transfer
of Vendor’s rights and duties
Vendor is only allowed to
assign its rights and duties from this contract to successor(s) after obtaining
Buyer’s written consent. Buyer cannot reject Vendor’s assignment or relegation without
a reason. However, Vendor can relegate or assign parts or all of its contracted
rights and duties on financing or financial arrangements for the power plant
without Buyer’s agreement. The effect of this contract
survives to continue the benefits and duties of Vendor's successors, assignees
or relegated entities.
3. Transition
to the competitive wholesale market
If the wholesale market or
other models as per competent governmental authorities' decisions replace the
competitive power market during the term of this contract, the parties are
responsible for negotiating changes or replacements of this contract in
consonance with the new electricity market structure on the condition that the
parties' economic values from the contract remain unaffected.
Article 14. Retention of
documents and provision of information
1. Retention
of documents
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2. Provision
of information
Each party is responsible
for providing the other party with figures, materials or papers necessary at
reasonable level to evince the accuracy of payment invoices, pricing formulas
or calculations as per the contract or verify the parties' abidance by the
contract.
Article 15. Other expenses
Each party is responsible
for paying taxes and fees or settling debts arising during its execution of the
contract. The parties agree that this contract is not inclusive of
expenses for power transmission, power distribution, connection or similar
expenses. Each party is responsible for covering such expenses according to
regulations.
Article 16. Authorized
representative and exchange of information
1. Authorized
representative
The authorized
representatives of the contract parties are:
Vendor:
Buyer:
________________________ ________________________
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2. Exchange
of information
a) Notices, invoices or
essential information exchanged during the enforcement of this contract must be
executed in writing. Their issue dates and relation to the contract must be
clearly specified. The original of a fax must be sent by pre-paid post. Notices,
invoices or information must be delivered to the following addresses:
Vendor: _________________________________
________________________________
Buyer: _________________________________
________________________________
b) Notices, invoices or
information sent as per point a of this Section are deemed received:
(i) when delivered by hand;
or:
(ii) when proof of delivery
by guarantee post is signed; or:
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(iv) when a regular
postage's arrival is confirmed.
Article 17. Confidentiality
Each party bears the duty to
maintain confidentiality of information and documents given by the other party
as per the contract. Each party shall not disclose, publicize or exploit such
information and documents for any purposes save the execution of its contracted
duties. Exceptions are:
Documents and information
are publicized or exploited according to the laws.
2. Documents
and information are demanded by competent authorities.
3. Documents
and information are announced or publicized by entities outside the contract.
Article 18. Other
stipulations
1. Amendments
to the contract
Every amendment to the
contract must be executed in writing.
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This contract is the final
complete agreement between the parties and replaces all previous discussions,
information and correspondences arising prior to the signing of this contract.
3. Third
party
This contract only benefits
its parties and does not constitute any benefits or duties for a third party.
4. Constitution
of no joint venture
This contract does not
constitute a joint venture or association between the parties or impose any
legal duty or liability related to a joint venture or association on any of the
parties. None of the parties is allowed to engage in or represent the
other party to engage in an agent contract or act as a representative to
perform duties against the other party.
5. Waiver
of rights
One party's relinquishment
of its contracted duties must be executed in writing and endorsed by its
authorized representative’s signature. One
party's non-execution or deferral of its rights from this contract is not construed
as its abnegation of such rights.
6. Execution
of remaining duties
Termination, closure or
expiration of contract does not end the parties’ execution of their remaining
duties as per the contract.
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The contract is interpreted
and executed as per the laws of Vietnam.
8. Separability
of contents
If a part of the contract
does not correspond with the laws or becomes void as per a competent government
authority’s decision, other parts of the contract sustain effect on the
condition that remaining parts constitute sufficient contents without the
ineffectual part.
9. Titles
Titles in this contract are
for the purpose of convenience without influence on the interpretation of the
contract and do not constitute any duties on any of the contract parties.
This contract is executed
into 09 equally valid originals. Each party retains 04 originals. Vendor
is responsible for sending one original to the Electricity Regulatory
Authority.
BUYER'S
REPRESENTATIVE
(Professional title)
(Sign and seal)
(Full name)
VENDOR'S
REPRESENTATIVE
(Professional title)
(Sign and seal)
(Full name)<
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APPENDIX 1
PRIMARY PARAMETERS OF THE POWER PLANT
(Enclosed to the Contract No. ... dated ...)
This
includes description, charts and technical specifications of the power plant
1. Turbine
a) Quantity
b) Type
c) Manufacturer
2. Boiler
a) Quantity
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c) Steam pressure
d) Temperature of saturated
steam in steam drum
dd) Temperature of
superheated steam
e) Temperature of water
filtered and supplied
g) Boiler's output
h) Fuel consumption
i) Temperature of heated air
k) Temperature of exhaust
gases
3. Electric
generator
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b) Type
c) Generator’s output (MVA)
d) Output voltage (kV)
dd) Cosj
e) Rotations (per minute)
g) Frequency
h) Supplier
4. Transformer
a) Quantity
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c) Transformer ratio
d) Wiring diagram
dd) Short-circuit voltage Uk
e) Type (Technical
description of the transformer)
5. Electricity
distributor and breaker
a) Breaker for … kV
- Quantity
- Type
b) Disconnector switch for …
kV
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- Type
c) Current transformer for …
kV
- Quantity
- Type
d) Voltage transformer for …
kV
- Quantity
- Type
dd) Lightning arrester for …
kV
- Quantity
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e) Capacitor and
high-frequency choke
- Quantity
- Type
g) Protective relay and
automatic control system, ancillary equipment system
6. Connection
to the national power grids
a) Connection line
b) Type of connection line
c) Rated voltage
d) Conductor
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e) Circuit length
APPENDIX 2
MEASUREMENT AND DATA COLLECTION SYSTEM
(Enclosed to the Contract No. … dated …)
I. Measurement points
The parties agree to employ
the power plant’s current measurement points as follows:
Generator
Primary
measurement system
Backup
measurement system
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[...]
[...]
[...]
[...]
[...]
[...]
II. Method
for the calculation of the amount of electricity delivered
On the 1st of
each month, the parties' legal representatives shall record and confirm the
meters' indicators at 0 o'clock on the first of the month and the immediate
preceding month’s amount of electricity delivered in writing.
a) The following formula
defines the amount of electricity delivered by Vendor to Buyer in a billed
month:
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Including:
AG,i:
The relevant amount of
electricity outward at the measurement point i of the primary measurement
system in the month;
AG:
The amount of electricity
that Buyer pays to Vendor in the billed month (kWh).
b) The following formula
defines the amount of electricity that Vendor receives from the national power
grids in a billed month:
Including:
AN,i:
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AN:
The amount of electricity
that Vendor pays for ... [power corporation] according
to the electricity selling price list for industrial customers as per
competent governmental authorities’ regulations (kWh).
c) Vendor and Buyer augment
the amount of reactive electricity for generators running in rotary
compensation mode.
APPENDIX 3
AGREEMENT ON OPERATIONAL CHARACTERISTICS
(Enclosed to the Contract No. ... dated ...)
The parties agree to the
following main operational characteristics of the power plant:
1. Generator's
generative output
a) Minimum generative
output: … MW.
...
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2. Time for start and
synchronization
The following table defines
the time for start and synchronization of generators with the national power
grids from generators’ shutdown conditions:
Condition
Shutdown
time
Time
from start to synchronization
Cold boot
From
… hours
...
hours
Warm boot
...
...
...
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...
hours
Hot boot
Less
than … hours
...
hours
3. Load
variation speed
a) Average load reducing
speed: … MW per minute
b) Average load increasing
speed: ... MW per minute
4. Power
plant's output power factor, voltage regulation and frequency limit in normal
operational conditions.
a) The power plant operates
according to the dispatching regulations applicable to the power plant's
technical specifications.
...
...
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Frequency limit: The power
plant operates with the frequency range of 49.8 to 50.2 Hz.
APPENDIX 4
DATA REQUIRED FOR SCADA/EMS SYSTEM
(Enclosed to the Contract No. … dated …)
APPENDIX 5
ANCILLARY SERVICE PRICE AND PAYMENT
(Enclosed to the Contract No. … dated …)
I. Ancillary service price
1. Fixed
price gcđ:
...
...
...
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Year
Output
annually announced (kW)
Fixed
price gcđ
(VND/kW/month)
Generator
1
....
Generator
n
Total
...
...
...
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2. Variable
price gbđ:
The power plant’s variable
price (gbđ,i,j) is defined according to each generator's output
level through the following formula:
Including:
:
The variable price of the
generator i at the output level j (VND/kWh);
...
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Refined fuel consumption
rate of the generator i at the power j is determined subject to the fuel
consumption characteristics of the generator (kg/kWh or BTU/kWh)
Gnl:
The average fuel price in
the month (exclusive of value added tax) (VND/kg or VND/BTU);
Cvip,i,j:
Auxiliary material cost
rate for the generator i’s production of 1 kW of electricity per hour at the
output level j (VND/kWh);
i:
The generator i of the
power plant.
Table 2. Refined fuel
consumption and auxiliary material cost rate
Generator
...
...
...
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Refined
fuel consumption bi,j (g/kWh)
Auxiliary
material cost cvlp,i (VND/kWh)
...
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3. Booting
price Ckđ
a) The booting price (Ckđ,i,j),
calculated when a generator of the power plant is started, is defined by the
following formula:
Including:
:
Fuel price for the start
of the generator i at the booting mode j (VND);
Mi,j:
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Gnl:
Average price of fuel
consumed in the month m (exclusive of value added tax) (VND/kg or VND/BTU);
Auxiliary fuel consumption
rate for the start of the generator i at the booting mode j in a coal-fired
thermal power station (kg);
gnlp:
The price of auxiliary
fuel consumed to start the coal-fired thermal power station’s generators
(VND/kg);
The cost of auxiliary
materials for the start of the generator i at the booting mode j in a
coal-fired thermal power station;
j:
...
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i:
The generator i of the
provider of ancillary services.
Table
3. Fuel consumption rate for the start of a generator (kg/time)
Generator
Booting
mode
Hot
boot
Warm
boot
Cold
boot
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b) This contract validates
generator starts in the following events:
- Generators
are started after repaired according to registered plans;
- Generators
are started at Buyer’s request;
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If a generator is started at
Buyer’s request but is not connected to the grids then is shut down on request,
each start shall be billed through Vendor's sufficient documents specifying
dispatching orders that Vendor has received during the start of the generator
(start order receipt time, shutdown order receipt time ...) and relevant
documents evidencing the activation of the start process (generators marked).
All restarts due to
subjective or unplanned issues shall not be billed.
II. Payment
for ancillary services:
Buyer makes payments, on
monthly basis, for Vendor's provision of ancillary services. The following
formulate specifies such payments:
Tm
= (Tcđ,m + Tbđ,m + Tkđ,m + Tk,m) x
(1+VAT)
Including:
Tm:
Total payment (VND) for
ancillary services, which Buyer gives to Vendor in the month m;
Tcđ,m:
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Tbđ,m:
Total variable cost in the
month m (VND);
Tkđ,m:
Total cost for generator
start in the month m (VND);
Tk,m:
The sum of other payables
(VND);
VAT:
Valued added tax
1. Total
fixed cost
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Including:
TCđ,m:
Total fixed cost in the
month m (VND);
gcđ:
The fixed price as defined
in section 1, title 1 of this Appendix (VND/(kw.month));
:
Available output realized
by the generator i at the hour h (MW);
H:
...
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n:
Number of generators in
the power plant
b) The available output
realized by the generator I at the hour h in the month m is calculated as
follows:
- The
available output announced (or the valid adjusted available output announced,
if available) when the actual average generative output of the generator i at
the hour h equals or exceeds 95% of the output actually demanded at Buyer's
request.
- The
actual generative output of the generator i at the hour h (or the valid
adjusted available output, if available) when the actual generative output of
the generator i is lower than 95% of the output actually demanded at Buyer’s
request.
2. Total
variable cost
The following formula
specifies total monthly variable cost (Tbđ,m) that Buyer pays to
Vendor:
Including:
...
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Total variable cost in the
month m (VND);
:
The variable price of the
generator i at the output level j in the hour h, as defined in section 2,
title 1 of this Appendix (VND/kWh);
:
The effective amount of
electricity of the generator i at the hour h at the delivery point (VND/kWh);
H:
Number of hours in the
month m;
n:
Total quantity of the
power plant’s generators
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The following formula regulates
total monthly generator start cost (Tkđ,m) that Buyer pays to
Vendor:
Including:
Tkđ,m:
Total generator start cost
in the month m (VND).
:
The price for the start of
the generator i at the booting mode j is defined in section 3, title 1 of
this Appendix (VND);
:
Rate of electricity
internally consumed for the start of the generator i at the booting mode j
(kWh);
...
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The price of electricity,
purchased by the ancillary service provider from the power system to start
the generator, is defined according to the electricity retail price list
(hourly average price) for customers producing electricity at the voltage
level for internal consumption by generators in the month m (VND/kWh);
k:
Number of billed starts of
the generator i at the booting mode j;
j:
The generator’s booting
mode;
n:
Number of generators in
the power plant
Table
4. Rate of electricity internally consumed for generator start (kWh/start)
Generator
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Hot
boot
Warm
boot
Cold
boot
...
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4. Other payables
The sum of other monthly
payables that Buyer pays to Vendor is composed of:
a) Total drying cost (Txs,m)
is calculated by the following formula:
Including:
cxs,i:
Electricity consumption
rate for drying the generator I in standby shutdown condition in 1 hour
(subject to the duration of standby shutdown) (kWh/hour);
ge,xs:
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Hi:
Total number of hours, in
which the generator i is dried, in the month m (hours)
b) The amount balancing fuel
cost difference due to the use of alternative fuel other than the primary one;
c) The following formulate
defines total payables for generators providing reactive electricity Tpk,m
(generators only running in rotary compensation mode) at the request of the
operator of electric power system and electricity market:
Tpk,m
= Tkdpk + Tpkp + Tpkn + Txs,m
Including:
Tkdpk:
Fixed sum of the generator
producing reactive electricity in the month m (VND), determined via the
following formula:
Tkdpk = Qpk
x Gpk x Hpk
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Total variable cost of the
generator producing reactive electricity in the month m (VND), as defined by
the following formula:
Tpkn:
Total variable cost of the
generator receiving reactive electricity in the month m (VND), through the
following formula:
Txs,m:
Total drying cost of the
generator producing reactive electricity in the month m (VND), through the
following formula:
Qpk:
Total reactive output, as
announced, of generators producing reactive electricity in the month m
(kVar);
...
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Fixed price subject to
available reactive output (VND/kVAr/th), as negotiated according to actual
contract value;
Hpk:
Coefficient of
availability of generators producing reactive electricity in the month m;
AGpkp,i,j:
The amount of reactive
electricity generated by the generator i at the hour h in the month m at the
point of delivery (kVarh);
Gpkp,i,j:
The price of reactive
electricity generated by the generator i (VND/kVArh), as defined by the
following formula:
Gpkp,ij - cvlp,i
+ cep,i,j x ge
cvlpi:
...
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cep,i,j:
Electricity consumption
for the generation of 01 kVArh by the generator i providing reactive
electricity at the output level j (kWh/kVArh);
ge:
The price of electricity,
purchased by the ancillary service provider from the power system to generate
or receive reactive power, is defined according to the electricity retail
price list (price in normal hours) for customers producing electricity at the
voltage level for internal consumption by generators in the month m (VND/kWh)
AGpkn,i,j:
The amount of reactive
electricity that the generator i receives at the hour h at the point of
delivery (kVArh);
Gpkn,i,j:
The price of reactive
electricity that the generator i receives (VND/kVarh), as determined by the
following formula:
Gpkn,i,j = cvlp,i
+ cen,i,j x ge
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Electricity consumption
for the rotary compensation generator to receive 01 kVarh at the output level
j (kWh/kVArh);
cxs,i:
Electricity consumption
rate for drying the reactive output generator i in standby shutdown condition
in 1 hour (kWh/hour);
ge,xs:
The price of electricity,
purchased by the ancillary service provider from the power system to dry
reactive output generators, is defined according to the electricity retail
price list (price in normal hours) for customers producing electricity at the
voltage level for drying generators in the month m (VND/kWh);
Hi:
Total number of hours, at
which the generator I is dried, in the month m (hours).
d) The cost of generators
for ancillary services running on no load at the request of the operator of
electric power system and electricity market;
dd) Taxes and other payables
according to current regulations and the contract (if any);
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