Circular No. 01/2005/TT-BCN on guiding the implementation of electricity sale prices

CIRCULAR

Regarding guidance on electricity sale prices

Pursuant to Decree No. 45/2001/NĐ-CP dated August 2, 2001 of the Government on electricity activities and electricity usage;

Pursuant to Decision No. 215/QĐ-TTg dated December 29, 2004 of the Prime Minister on electricity sale prices;

After reaching consensus with the Ministry of Finance and the Ministry of Industry, the following guidance on implementing electricity sale prices is provided:

This technical regulation sets out technical requirements, testing methods, sampling procedures; management requirements; responsibilities of organizations and individuals producing, trading, and importing cigarettes.

1. This Circular guides the implementation of electricity sale prices according to Decision No. 215/QĐ-TTg dated December 29, 2004 of the Prime Minister.

The electricity sale prices set forth in Decision No. 215/QĐ-TTg apply to entities using electricity for production purposes; business and service activities; household consumption; administrative and public service agencies; rural electricity management organizations entering into direct power purchase and sale contracts with units selling electricity from the national grid that have permits to operate in the distribution and retail electricity sectors.

The electricity sale prices stipulated in Decision No. 215/QĐ-TTg are prices excluding value-added tax and based on the quality standards of electricity as prescribed in Decree No. 45/2001/NĐ-CP dated August 2, 2001 of the Government on electricity activities and electricity usage.

2. When purchasing and selling electricity, metering devices must be used and contracts must be executed. The signing of power purchase and sale contracts shall be carried out in accordance with Articles 26, 27, and 28 of Decree No. 45/2001/NĐ-CP dated August 2, 2001 of the Government on electricity activities and electricity usage.

3. If the electricity buyer uses electricity for multiple purposes at different rates, the electricity seller must install separate metering devices for each rate category; if separate meters cannot be installed, both parties must determine the specific ratio of each rate based on actual electricity usage and include it in the power purchase and sale contract.

4. If the electricity buyer consumes less than 15 kWh per month, meter readings may be conducted quarterly. If the electricity buyer consumes less than 15 kWh over three months, the correct meter reading will be recorded, and the electricity seller may collect a fixed fee equivalent to the value of 15 kWh according to the electricity sale price table specified in Decision No. 215/QĐ-TTg and record it as revenue from electricity sales.

5. The retail price of electricity directly supplied to rural households by rural electricity management organizations continues to be implemented according to Circular No. 1303/CP-KTTH dated November 3, 1998 of the Prime Minister, Joint Circular No. 01/1999/TT-LT/BVGCP-BCN dated February 10, 1999, and Joint Circular No. 02/2000/TTLT-BVGCP-BCN dated February 15, 2000 of the State Price Control Board and the Ministry of Industry.

Electricity sale prices must be applied strictly according to the intended use of electricity.

The electricity buyer is responsible for declaring the intended use of electricity accurately to calculate the electricity sale price in accordance with Section III of this Circular.

If the electricity buyer changes the intended use of electricity leading to a change in price, they must notify the electricity seller fifteen days in advance to adjust the price in the contract. The electricity seller shall verify and promptly apply the correct electricity sale price according to the designated user.

Misapplication of electricity sale prices due to incorrect classification of electricity use, causing loss to either the buyer or the seller, will result in recovery or refund of electricity charges upon discovery. In cases where the period of misapplication cannot be clearly determined, it will be calculated as twelve months prior to the date of discovery.

7. The purchase and sale of reactive power capacity shall be carried out in accordance with Joint Circular No. 09/2001/TTLB-BCN-BVGCP dated October 31, 2001 of the Ministry of Industry and the State Price Control Board.

8. In this Circular, the following terms are understood as follows:

a) "Electricity buyer" refers to organizations or individuals who have signed a contract to purchase electricity from the electricity seller for direct use or resale to other organizations or individuals.

b) "Electricity seller" refers to units selling electricity directly from the national grid that have permits to operate in the distribution and retail electricity sectors.

II. ELECTRICITY SALE PRICES BASED ON VOLTAGE LEVELS AND TIME OF USE IN A DAY

1. Electricity sale prices based on voltage levels

Electricity sale prices based on voltage levels apply to all electricity buyers except those purchasing electricity under tiered residential tariffs, bulk electricity sales to rural areas, collective housing complexes, and residential clusters. The applicable tariff corresponds to the voltage level. Electricity charges are calculated based on the measured consumption from the metering system without additional fees.

2. Electricity sale prices based on time of use in a day.

2.1. Electricity sale prices are defined based on the time of electricity usage in a day (referred to as the three-tier pricing system).

a) The time periods for applying the three-tier pricing system are as follows:

- Normal hours: from 04:00 to 18:00 (14 hours)

- Peak hours: from 18:00 to 22:00 (4 hours)

- Off-peak hours: from 22:00 to 04:00 (6 hours) the next morning.

b) The three-tier pricing system applies to the following entities:

- Electricity buyers using electricity for production and business services, supplied through dedicated transformers of 25 kVA or more, or with average monthly consumption of 2,000 kWh or more over three consecutive months.

- Electricity buyers using electricity for irrigation purposes serving production: rice, vegetables, short-cycle industrial crops intercropped.

c) Encouragement is given to adopt the three-tier pricing system for:

+ Customers using electricity for production and business services with transformers and consumption below the specified thresholds;

+ Residential customers with average monthly consumption of 300 kWh or more over three consecutive months;

The electricity seller has the responsibility to create conditions and provide guidance for these customers to install three-tier meters.

2.2. The electricity seller must prepare sufficient metering devices to install for electricity buyers subject to this pricing system. Until three-tier meters are installed, the normal hour pricing will be applied.

2.3. In case the metering device is lost, malfunctions (including timing issues), or stops functioning, the electricity consumption will be calculated according to Clause 1, 2, and 3 of Article 40 of Decree No. 45/2001/NĐ-CP dated August 2, 2001 of the Government on electricity activities and electricity usage, and the electricity sale price will be calculated based on normal hours.

2.4. In case the electricity buyer falls under the application scope of the three-tier pricing form and there are organizations and individuals sharing the meter who do not fall under this scope, the electricity seller must separate the meters of these organizations and individuals sharing the meter into individual households to sign direct electricity purchase and sale contracts.

If due to technical conditions, separate contracts have not yet been established with organizations and individuals sharing the meter, the electricity seller shall install a three-tier meter for organizations and individuals sharing the meter to deduct actual electricity consumption.

In case a three-tier meter cannot be installed for those shared households, the electricity buyer shall apply the normal hour electricity price.

Example: The electricity buyer is Factory A with a transformer capacity of 560 kVA, which falls under the application scope of the three-tier pricing form but has organizations and individuals sharing the meter that do not fall under this scope, including:

- Collective housing area of the factory using electricity for daily life at the wholesale electricity price for residential use.

- Vocational Training Center B applying the electricity price for administrative and public institutions.

These shared units shall be equipped with a three-tier meter for deduction, so the production volume price of Factory A according to time of day is calculated as follows:

Unit of measurement: kWh

III. ELECTRICITY SALES PRICE BASED ON USAGE OBJECTIVE

1. Electricity sales price for production

1.1. Electricity sales price for general production industries:

Applied to all electricity buyers using electricity for production in the following industries:

- Agriculture: crop cultivation (including electricity for industrial crops, fruit trees on areas without water management fees, high-yield fruit tree lighting stimulation); livestock breeding, aquaculture and other types of breeding; production of preservatives and disease control agents;

- Forestry;

- Aquaculture;

- Mining;

- Industry;

- Construction;

- Transportation;

- Office of State-owned Enterprises, companies managing production and business applying the electricity sales price according to the corresponding industry production price;

- Warehouses for goods (finished products, semi-finished products) in the production process;

- Public utility enterprises;

- Other production activities;

1.2. Electricity sales price for special production industries:

a) Electricity sales price for irrigation pumping applied to electricity buyers using electricity for irrigation purposes serving rice, vegetable, short-term industrial crop rotation (ramie, rush, soybean, pea...), fruit seedling, fruit tree planting, fruit seedling planting with water management fees, including electricity used at offices managing and operating water conservancy works.

b) Electricity sales price for other special production industries applied to the following entities:

- Electricity buyers producing clean water (including electricity used at clean water business offices) supplied for daily living and production business needs ensuring conditions such as: having a business license for clean water; selling clean water for residential use to community clusters according to the price regulations of the People's Committee of provinces and centrally-administered cities.

In case the electricity buyer is an organization or individual producing clean water in villages and towns for sale to consumers, if using electricity after the main meter, it will be calculated based on the other purpose price of the wholesale price for rural areas; if using electricity under a separate contract, it will be calculated based on the clean water production price.

- Electricity buyers using electricity for drainage, flood prevention, and wastewater treatment in cities and towns.

- Electricity buyers using electricity for steel smelting, ferroalloy, chlorine, caustic soda, urea, apatite ore beneficiation; phosphorus gold, only applicable to the electricity consumption for: steel smelting (including auxiliary processes for steel smelting, ironmaking including: charging materials into furnaces, ventilation, oxygen production in integrated plants); ferroalloy and chlorine smelting production lines; urea, apatite ore beneficiation, phosphorus gold production lines; caustic soda production lines with a concentration of 30% or higher.

Not applicable to electricity consumption for other processes or purposes of the buyer.

1.3. Electricity sales price for industrial zones:

The industrial zone management board signs an electricity purchase contract with the electricity seller at the main meter, reselling electricity to organizations and individuals using electricity within the industrial zone, the electricity sales price shall be applied as follows:

a) The electricity seller sells to the industrial zone management board at the main meter according to the electricity sales price for production industries specified in Decision No. 215/QĐ-TTg (except for the cases stipulated in item b, point 1.3 below).

b) In the case where the industrial zone management board purchases electricity from the electricity seller and resells electricity to organizations and individuals using electricity for production purposes within the industrial zone at the same voltage level: The electricity seller sells to the industrial zone management board at the main meter according to the electricity sales price for production industries specified in Decision No. 215/QĐ-TTg minus 2%. The electricity volume for the reduced price calculation is based on the actual monthly electricity consumption of customers within the industrial zone purchasing the same voltage level as the industrial zone management board purchases from the electricity seller.

c) The industrial zone management board sells electricity to households using electricity within the industrial zone according to the electricity sales price specified in Decision No. 215/QĐ-TTg.

Example: Industrial Zone Management Board A purchases electricity from the electricity seller at the 110 kV voltage level to resell to households using electricity for production within the industrial zone:

+ In the case where Industrial Zone Management Board A sells electricity to ordinary production households within the industrial zone at the 6 kV voltage level:

The electricity sales price that Industrial Zone Management Board A pays to the electricity seller is calculated as follows:

Industrial Zone Management Board A sells electricity to ordinary production households within the industrial zone at the 6 kV voltage level as follows:

+ In the case where Industrial Zone Management Board A sells electricity to ordinary production households within the industrial zone at the 110 kV voltage level:

The electricity sales price that Industrial Zone Management Board A pays to the electricity seller is calculated as follows:

Industrial Zone Management Board A sells electricity to ordinary production households within the industrial zone at the 110 kV voltage level as follows:

2. Electricity sales price for administrative and public institutions:

2.1. Electricity sales price for administrative and public institutions:

The price of electricity sold to administrative and public service organizations applies to the following buyers:

- State administrative agencies; public service units; military forces; political organizations; political-social organizations; professional associations;

- Embassies, diplomatic missions, representative offices of international organizations (not engaged in business management);

- Units operating in cultural, artistic, press, sports fields (including swimming pools, tennis courts...); radio and television stations; theaters, performance companies; film companies and cinemas, circuses, cultural information centers, sports stadiums; museums, memorials, exhibition halls, funeral homes, crematoriums;

- Parts funded from the state budget of trade fairs, market management boards; parts funded from the state budget of guesthouses and lodges under administrative agencies and public service units. The buyer of electricity must provide legal documents regarding the use of state budget funds to serve as the basis for determining pricing according to the ratio.

Example: House No. 8 Chu Van An, Hanoi, which is a unit under the Government Office: the part of its activities funded from the Government Office shall be priced according to the administrative and public service rate, while the part of its commercial activities shall be priced according to the commercial and service rate, based on the ratio.

- Health insurance agencies, social insurance agencies.

- Research, design, planning agencies; vocational training and educational institutions (excluding those mentioned in Point 2.2, Section III of this Circular).

- Organizations and agencies issuing central and local books and newspapers (including bookstores), providing school equipment and medical equipment (including stores), foreign charitable organizations.

- Consulting facilities, except those specified in Point 2.2, Section III of this Circular.

- Storage facilities designated by competent authorities with national reserve functions, whether under or outside the National Reserve Bureau.

- Banks serving the poor.

- Project management boards.

Production activities of administrative agencies and public service units shall be priced according to the production electricity selling price; commercial and service activities of administrative agencies and public service units shall be priced according to the commercial and service electricity selling price.

2.2. Electricity selling price for hospitals, kindergartens, primary schools, and secondary schools:

applicable to the following entities:

- Kindergartens, primary schools, secondary schools at all levels: elementary, middle, high schools, and regular education centers (the cultural education part), residential schools of all types: public, semi-public, and private.

- Hospitals (including the portion used for funeral homes and medical waste incineration), healthcare facilities (including preventive health care centers), rehabilitation centers, functional recovery centers, occupational disease treatment centers, drug rehabilitation centers, counseling offices: drug rehabilitation, HIV, family planning.

These facilities must have establishment decisions or practice licenses issued by competent authorities. In cases where there are no establishment decisions or practice licenses issued by competent authorities, they shall be priced according to the commercial service rate.

2.3. Electricity selling price for public lighting:

applicable to electricity buyers using it for street lighting; parks; alleys; temples; churches; historical sites that have been ranked; martyrs' cemeteries; communal areas or staircases in communal buildings; elevators in apartment complexes; water pumps serving daily life in communal residential clusters.

3. Retail electricity price for household consumption:

3.1. Tiered retail electricity price for household consumption:

a) The tiered retail electricity price for household consumption is applied to households using electricity for living needs and having direct purchase and sale contracts with the electricity seller.

Example: Regarding monthly electricity bill calculation as follows:

Case 1: The electricity buyer uses 60 kWh in a month.

The amount the electricity buyer has to pay is 36,300 VND, including:

+ Electricity cost for 60 kWh x 550 VND/kWh = 33,000 VND

+ Value-added tax (10%) = 3,300 VND

Case 2: The electricity buyer uses 300 kWh in a month.

The amount the electricity buyer has to pay is 323,950 VND, including:

- First 100 kWh: 100 kWh x 550 VND/kWh = 55,000 VND

- Next 50 kWh: 50 kWh x 900 VND/kWh = 45,000 VND

- Next 50 kWh: 50 kWh x 1,210 VND/kWh = 60,500 VND

- Remaining 100 kWh: 100 kWh x 1,340 VND/kWh = 134,000 VND

Total electricity cost = 294,500 VND

Value-added tax 10% = 29,450 VND

Case 3: The electricity buyer uses 470 kWh in a month.

The amount the electricity buyer has to pay is 658,900 VND, including:

- First 200 kWh: 200 kWh x 1,100 VND/kWh = 220,000 VND

- Next 100 kWh: 100 kWh x 1,340 VND/kWh = 134,000 VND

- Next 100 kWh: 100 kWh x 1,400 VND/kWh = 140,000 VND

- Remaining 70 kWh: 70 kWh x 1,500 VND/kWh = 105,000 VND

Total electricity cost = 599,000 VND

Value-added tax 10% = 59,900 VND

b) For electricity users sharing a meter (with separate household registration), the buyer must request the seller to install individual meters for each household to sign direct purchase and sale contracts.

While the seller has not yet installed individual meters for each household, the following temporary measures apply: if the buyer includes fewer than 10 households in towns, townships, county seats, suburban areas of cities, and fewer than 15 households in urban areas of cities, then the tiered electricity price for household consumption will be applied to each household sharing a meter based on the principle that the total tier level of the buyer equals the maximum electricity consumption level of each tier multiplied by the number of households sharing a meter.

Example: If the buyer includes four households sharing a meter, the retail electricity price for household consumption will be calculated as follows:

Case 1: Total usage of four households up to 1,200 kWh

- First 100 kWh x 4 households = 400 kWh at 550 VND/kWh

- Next 50 kWh x 4 households = 200 kWh at 900 VND/kWh

- Next 50 kWh x 4 households = 200 kWh at 1,210 VND/kWh

- Next 100 kWh x 4 households = 400 kWh at 1,340 VND/kWh

Case 2: Total usage of four households over 1,200 kWh

- First 200 kWh x 4 households = 800 kWh at 1,100 VND/kWh

- Next 100 kWh x 4 households = 400 kWh at 1,340 VND/kWh

- Next 100 kWh x 4 households = 400 kWh at 1,400 VND/kWh

- From the 1,601st kWh onwards at 1,500 VND/kWh

c) The buyer of electricity includes a household using electricity with multiple residential electricity purchase contracts (each contract having a separate meter) for use at one location, the quantity of electricity to calculate the tiered residential electricity price is the total amount of electricity recorded on the meters at that household's location.

d) In cases where students and workers rent housing (with a lease term of six months or more), if the landlord is the buyer of electricity and signs a direct electricity purchase contract with the seller, then every four people (based on temporary residence registration certificates and rental agreements confirmed by local authorities) shall be considered as one household applying the tiered residential electricity price.

đ) In cases where the buyer of electricity signs a contract to purchase electricity for residential purposes under the tiered residential electricity price, and engages in other activities (production, business...) sharing the same meter: if the monthly electricity consumption measured by the meter is less than or equal to 50 kWh per household (with a separate household registration), then the tiered residential electricity price will apply; if it exceeds 50 kWh per household, then the price for each purpose of electricity usage will be calculated according to the ratio specified in the contract.

Example: The buyer of electricity who signs a contract to purchase electricity for residential purposes under the tiered residential electricity price, and engages in production, business, and service activities sharing the same meter measuring residential electricity. In the unified contract between both parties, the ratio of residential electricity is 80%, production electricity is 10%, and business electricity is 10%.

If in a month, this household uses 45 kWh, then the residential electricity price for the first 100 kWh tier at 550 VND/kWh will be applied.

If in a month, this household uses 150 kWh, the price will be calculated as follows:

Quantity of electricity calculated for residential tiered pricing: 150 kWh x 80% = 120 kWh

First 100 kWh at 550 VND/kWh

Next 20 kWh at 900 VND/kWh

Quantity of electricity calculated for production pricing (895 VND/kWh): 150 kWh x 10% = 15 kWh;

Quantity calculated for business pricing (1,410 VND/kWh): 150 kWh x 10% = 15 kWh;

e) Customers purchasing electricity through their own transformer for residential purposes shall be charged based on the residential retail electricity price.

g) In cases where the seller of electricity changes the meter reading time (as stipulated in point c, Section 1, Article 37 of Decree 45/2001/NĐ-CP), the quantity of electricity for each tiered pricing level will be adjusted accordingly based on the number of days shifted.

3.2. Residential electricity prices based on time-of-use rates:

Encourage customers using residential electricity within the scope defined in point 3.1 above, with average monthly usage over three consecutive months of 300 kWh or more, to purchase electricity under the three-tier pricing system. The seller of electricity has the responsibility to create conditions and guide these households to install three-tier meters.

The seller of electricity has the responsibility to guide and establish incentive mechanisms for other residential electricity users who wish to purchase electricity under the three-tier pricing system.

4. Wholesale electricity prices:

4.1. Wholesale electricity prices for rural areas:

- Prices for electricity serving rural residential needs: Apply to the quantity of electricity used for residential purposes by households, cooperatives, villages, hamlets purchasing electricity via the main meter installed at the substation, regardless of whether the substation belongs to the buyer or seller of electricity, and irrespective of voltage level.

- Prices for electricity serving other purposes: Apply to the quantity of electricity used outside residential purposes and for pumping water for irrigation to serve rice cultivation, vegetable crops, and short-cycle industrial crops intercropped.

The quantity of electricity calculated under each price category (residential, pumping water, other purposes) is determined from the electricity metering system installed at the substation. In cases where there is no separate meter for each price category, the specific ratio for each category will be determined based on actual electricity usage and included in the electricity purchase contract.

- Prices for electricity used for pumping water for irrigation to serve rice cultivation, vegetable crops, and short-cycle industrial crops intercropped, based on the ratio at the main meter, are the normal time-of-use irrigation water pumping electricity prices.

- In cases where the buyer of electricity uses more than 50% of the electricity for other purposes (production, business...) from one meter, the price will be calculated based on the production electricity rate corresponding to the voltage level specified in Decision No. 215/QĐ-TTg, reduced by 10%.

Example 1: The buyer of electricity with a meter installed at a substation with a 6 kV voltage level, supplying residential electricity to 100 rural households accounting for 45% of the total quantity, pumping water for irrigation accounting for 5% of the total quantity, and electricity for other purposes accounting for 50% of the total quantity, will be priced as follows:

+ 45% of the electricity quantity priced at the wholesale rural residential electricity rate of 390 VND/kWh.

+ 5% of the electricity quantity priced at the normal time-of-use irrigation water pumping rate of 600 VND/kWh.

+ 50% of the electricity quantity priced at the production electricity rate reduced by 10%, which is 774 VND/kWh (860 x 0.9 = 774).

Example 2: The buyer of electricity with a meter installed at a substation with a 6 kV voltage level, supplying residential electricity to 100 rural households accounting for 55% of the total quantity, pumping water for irrigation accounting for 5% of the total quantity, and electricity for other purposes accounting for 40% of the total quantity, will be priced as follows:

+ 55% of the electricity quantity priced at the wholesale rural residential electricity rate of 390 VND/kWh.

+ 5% of the electricity quantity priced at the normal time-of-use irrigation water pumping rate of 600 VND/kWh.

+ 40% of the electricity quantity priced at the rate for other purposes of 730 VND/kWh.

- In cases where a substation has separate feeders for different villages, cooperatives, hamlets to enjoy wholesale prices, it must ensure the condition of the main meter installed at the substation.

- In cases where substations of farms and forestry farms supply electricity to both farm and forestry staff and farmers along separate lines without being able to measure separately for each group, the pricing will be as follows:

+ The portion of electricity supplied to collective living quarters of farm and forestry staff will be priced at the wholesale price for collective living quarters and clusters of residents.

+ The portion of electricity supplied to farmers will be priced at the wholesale rural electricity price.

- In cases where substations of farms and forestry farms supply electricity to both farm and forestry staff and farmers intermixed without being able to identify specific groups, residential electricity will be priced at the wholesale rural electricity price; electricity for other purposes will be priced at the rate for other purposes of collective living quarters and clusters of residents.

4.2. Wholesale electricity prices for collective living quarters and clusters of residents:

- The price of electricity for residential use shall apply to the amount of electricity for residential purposes of:

+ Residential complexes, collective areas of agencies (including diplomatic agencies, international organizations), factories, plants, construction sites, farms, forest stations, stations, camps... where the electricity buyer includes ten households or more using electricity for villages, hamlets, communes (not meeting the conditions for rural wholesale electricity sales); district towns, townships, county seats, suburban areas of cities, and fifteen households or more using electricity for cities.

+ Collective housing for students, employees, military forces, nursing homes, disabled persons, orphanages...

+ Housing of monks and nuns at temples, pagodas, churches...

- Electricity prices for other purposes: shall apply to the amount of electricity used outside residential purposes.

Wholesale electricity prices for residential complexes and residential areas shall only be applied in places where the electricity seller has not yet had the conditions to sell retail to individual consumers.

In places where the electricity seller has the conditions to sell retail directly to individual consumers but the customer does not agree to buy retail, the electricity seller is permitted to apply the stepped residential electricity price according to the actual number of households using electricity as stipulated in Point b Clause 3.1 Section III of this Circular.

5. Electricity prices for business purposes:

Electricity prices for business purposes shall apply to entities using electricity for business and service purposes including:

- Companies, shops, supermarkets, commercial trading establishments selling wholesale and retail goods, including pesticide shops, veterinary drug shops, seed and livestock shops;

- Financial institutions including commercial banks, savings funds, financial companies, securities companies;

- Cable television companies, terrestrial digital television companies;

- Lottery companies belonging to all economic sectors;

- Insurance organizations (excluding social insurance and health insurance);

- Tourist facilities, photography shops, nightclubs, karaoke shops, massage parlors;

- Food and beverage shops, hair salons, laundry services, tailoring shops, car washing services;

- Advertising activities according to the needs of production, business, and service establishments.

- Shops for repairing and refurbishing cars, motorcycles, transportation means, and consumer goods;

- Hotels, hostels, guesthouses of organizations and individuals; houses rented for living or office use by the owner who signs an electricity purchase contract;

- Electricity used in ticket sales rooms, cargo handling stations, waiting rooms (including waiting halls) of stores and counters selling goods at airports, railway stations, bus stations, ports;

- Electricity used in traffic toll stations, parking lots for cars;

- Electricity used in warehouses during circulation;

- Offices and headquarters of joint-stock companies under all economic sectors responsible for managing business and service operations;

- For postal and telecommunications activities of all organizations and individuals:

Based on the purpose of electricity usage to determine the appropriate electricity price category (production, business, or administrative and public service).

Example: Electricity used in Post Equipment Factory falls under the production price category; electricity used in Postal Supplies Company falls under the business price category; electricity used in Post and Telecommunications University falls under the administrative and public service price category.

- Organizations and individuals using electricity both for production and business in the postal and telecommunications sector shall calculate the electricity purchase price as follows:

+ Post offices in the provinces of Cao Bang, Bac Can, Lang Son, Lao Cai, Yen Bai, Ha Giang, Tuyen Quang, Lai Chau, Son La, Thanh Hoa, Nghe An, Ha Tinh, Quang Binh, Quang Tri, Gia Lai, Kon Tum, Dak Lak, Dak Nong:

* 97% of electricity consumption at the production price.

* 3% of electricity consumption at the business price.

+ General Office of Vietnam Posts and Telecommunications and post offices in the provinces and cities of Dong Nai, Ba Ria-Vung Tau, Hanoi, Hai Phong, Da Nang, Ho Chi Minh City, and other postal business units:

* 70% of electricity consumption at the production price.

* 30% of electricity consumption at the business price.

+ Post offices in the remaining provinces, inter-provincial telecommunication companies, and Stamp Company:

* 90% of electricity consumption at the production price.

* 10% of electricity consumption at the business price.

IV. IMPLEMENTATION

1. This Circular guides the implementation of the electricity pricing table issued pursuant to Decision 215/2004/QD-TTg, effective from January 1, 2005 throughout the country. Previous regulations contrary to this Circular are hereby abolished.

2. Vietnam Power Corporation and all other electricity selling units shall implement this Circular.

3. The Ministry of Industry shall coordinate with the Finance Departments of provinces and centrally governed cities to inspect the implementation of electricity selling prices, particularly residential electricity prices in rural areas.

4. Any difficulties encountered during implementation should be reported to the Ministry of Industry and the Ministry of Finance for timely consideration and resolution./.