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THE
PRIME MINISTER
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SOCIALIST
REPUBLIC OF VIETNAM
Independence– Freedom – Happiness
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No.:
24/2011/QD-TTg
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Hanoi,
April 15, 2011
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DECISION
ON
THE ADJUSTMENT OF ELECTRICITY SELLING PRICE ACCORDING TO MARKET MECHANISM
THE PRIME MINISTER
Pursuant to the Law on the
Government Organization dated 12/25/2001;
Pursuant to the December 03, 2004 Law on Electricity; the August 17, 2005
Decree No.105/2005/ND-CP of the Government detailing and guiding the
implementation of a number of articles of the Law on Electricity;
Pursuant to the April 26, 2002 Price Ordinance; the June 09, 2008 Decree
No.75/2008/ND-CP of the Government providing for the modification,
supplementation of a number of articles of the December 25, 2003 Decree
No.170/2003/ND-CP of the Government detailing the implementing and
supplementing of a number of articles of the Price Ordinance;
Pursuant to the February 24, 2011 Resolution No.11/NQ-the Government of
the Government on main solutions focusing on containing inflation, stabilizing
the macro economy, guaranteeing the social security;
At the proposal of Minister of Industry and Trade,
DECIDES:
Article 1. The scope of adjusting
This Decision
provides for the adjustment of electricity selling price according to market
mechanism.
Article 2. Subjects of application
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Article 3. Interpretation of terms
In this
Decision, the hereinafter terms are construed as follows:
1. Average
electricity selling price means the price is defined in accordance with
principle of average calculation per 01 KWh of electricity, including 04
components: price of electricity generation, price of electricity transmission,
price of electricity distribution, cost of management and administration and
electricity system supporting services; hereinafter called as electricity
selling price.
2. Current
electricity selling price means the price being applied for use as a basis of
the calculation to the next adjustment time.
3. Fund of
electricity price stability means the fund is established in order to implement
the aim of electricity price stability.
4. Basic input
parameter means the elements directly influencing on the cost of electricity
generation that the electricity generation organizations are unable
to control, including: price of material, foreign exchange and structure of
generation output.
Article 4. Principle for the adjustment of electricity selling price according to market mechanism
1. In the
financial year, electricity selling price is adjusted just when the basic input
parameter changing compared to the parameter which is used to define the
current electricity selling price. Other input parameter of electricity selling
price are considered to adjust electricity selling price only after having
accounting, audit reports according to the provisions.
2. Duration for
electricity selling price adjusting between the two consecutive times is at
least 03 months.
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Article 5. Mechanism and competence for the electricity selling price adjustment
1. In case
material price, foreign exchange at the time of calculation changing compared
to the parameter which is used to define the current electricity selling price
and the structure of generation output changing compared to the plan of
generation approved by the Ministry of Industry and Trade, leads to the
electricity selling price at the time of calculation reducing 5% or more
compared to the current electricity selling price, the Vietnam Electricity
Corporation shall decide to adjust to reduce the correlative electricity selling
price, concurrently reports to the Ministry of Industry and Trade, the Ministry
of Finance for supervision.
2. In case
material price, foreign exchange at the time of calculation changing compared
to the parameter which is used to define the current electricity selling price
and the structure of generation output changing compared to the generation plan
approved by the Ministry of Industry and Trade, leads to the electricity
selling price at the time of calculation raising up to:
a) 5%, the
Vietnam Electricity Corporation is entitled to adjustice to raise electricity
selling price at the correlative rate after registering with and being approved
by the Ministry of Industry and Trade. Within 05 working days, the Ministry of
Industry and Trade is responsible for replying enabling the Vietnam Electricity
Corporation to deploy the implementation. If after longer than 05 working days
but the Ministry of Industry and Trade has not replied yet, the Vietnam
Electricity Corporation is entitled to adjust to raise 5% of the electricity
selling price and report to the Ministry of Industry and Trade, the Ministry of
Finance for the supervision.
b) Over 5%, the
Vietnam Electricity Corporation reports to the Ministry of Industry and Trade
and send to the Ministry of Finance for appraisal. Within 05 working days since
the date of receiving the statement of the Vietnam Electricity Corporation, the
Ministry of Finance is responsible for appraising and sending its appraisal
opinion to the Ministry of Industry and Trade. The Ministry of Industry and
Trade is responsible for the synthesis and submission to the Prime Minister for
consideration, approval after 05 working days since the date of receipt of the
Ministry of Finance’s appraisal opinion.
After 15 working
days since the date of submission to the Prime Minister by the Ministry of
Industry and Trade but has not yet replied, the Vietnam Electricity Corporation
is permitted to adjust electricity selling price at the rate of 5%.
3. Annually,
after having independent audit, accounting report according to provisions, the
Vietnam Electricity Corporation reports to the Ministry of Industry and Trade,
the Ministry of Finance the cost price of electricity business production of
phases of generation, electricity transmission, electricity distribution,
management-administration and electricity system supporting services and the
electricity selling price of the financial year.
4. Based on the
accounting, audit data and result of implementing technical-economic norms of
the Vietnam Electricity Corporation, the Ministry of Industry and Trade
presides over, coordinates with the Ministry of Finance for the inspection,
definition of the cost of electricity business, production of the financial
year and public promulgation of implementation result. On the basis of such
data, the Ministry of Industry and Trade presides over, coordinates with the
Ministry of Finance for the decision on the adjustment of electricity selling
price and deduction for the Fund of electricity price stability according to
the provisions. In case of exceeding its powers, must report to the Prime
Minister.
Article 6. Fund of electricity price stability
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2. The source of
establishing the Fund of electricity price stability is deducted from the
electricity selling price and is calculated to the electricity business,
production expenditure.
Article 7. Inspection, supervision of the implementation of the electricity selling
price adjustment
1. The Ministry
of Industry and Trade inspects, supervises the implementation of electricity
selling price adjusting. When considered necessary, the Ministry of Industry
and Trade issues written request to the Vietnam Electricity Corporation for
temporarily suspension of raising electricity selling price or the adjustment
for the next adjustment time. The Ministry of Industry and Trade is entitled to
invite independent advisory for the appraisal of dossier of electricity selling
price adjustment.
2. The Ministry
of Finance supervises the implementation of electricity selling price
adjustment; to joint in, coordinate with the Ministry of Industry and Trade to
inspect the difference of regular, suitable cost compared to calculated data in
the project of electricity selling price after having accounting, audit data.
Article 8. Implementation organization
1. The Ministry
of Industry and Trade is responsible for:
a) Guiding the
implementation of detail electricity selling price index to the group of client
objects.
b) Approving
plan of producing electricity and annual technical-economic norms.
c) Presiding
over, coordination with the Ministry of Finance providing for the costs of
management and administration and electricity system supporting services;
publicizing cost of annual electricity business, production.
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đ) Guiding the
electricity selling price calculation according to basic input parameter.
e) Guiding to
compile, approve dossier of electricity selling price calculation, adjustment.
g) Issuing other
necessary instructions for the implementation of this Decision.
2. The Ministry
of Finance is responsible for:
a) Presiding
over coordination with the Ministry of Industry and Trade guiding mechanism of
establishment, management and the usage of Fund of electricity price stability.
b) Appraising
scheme of electricity selling price adjusting according to provisions in
Article 5 of this Decision.
3. Vietnam
Electricity Corporation is responsible for:
a) Implementing
the adjustment of electricity selling price according to the right power and in
compliance with the provisions in clause 1 Article 5, point a clause 2 Article
5 of this Decision.
b) Reporting to
the Ministry of Industry and Trade for the submission to the Prime Minister the
adjustment of electricity selling price according to provision in clause
2 Article 5 of this Decision.
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Article 9. Effect of implementing
1. This Decision
takes effect on June 01, 2011.
2. Any
organizations, individuals have acts violating of provisions of this Decision,
depending on the nature and seriousness of their violations, are sanctioned
according to provisions on sanction of law violation in the field of
electricity or examined for penal liability under regulations of law.
3. The
Ministers, Heads of Ministerial-level agencies, Heads of Governmental agencies,
Heads of power units and relative organizations are responsibility for the
implementation of this Decision.
THE
PRIME MINISTER
Nguyen Tan Dung