CIRCULAR

CỦA MINISTRY OF INDUSTRY NUMBER 112006/TT-BCN OF DECEMBER 20, 2006

GUIDELINES FOR IMPLEMENTATION OF ELECTRICITY PRICES

 

Pursuant to Decree No. 55/2003/NĐ-CP dated May 28, 2003 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Industry;

 

Pursuant to the Electricity Law on December 3, 2004; Decree No. 105/2005/NĐ-CP dated August 17, 2005 of the Government detailing and guiding the implementation of certain provisions of the Electricity Law;

Pursuant to Decision No. 276/2006/QĐ-TTg dated December 4, 2006 of the Prime Minister on electricity prices; Decision No. 45/2006/QĐ-BCN dated December 14, 2006 of the Minister of Industry on rural wholesale electricity prices and wholesale electricity prices for collective residential areas and clusters;

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 Decision No. 276/2006/QĐ-TTg of the Prime Minister on electricity prices (hereinafter referred to as Decision 276/2006/QĐ-TTg), and Decision No. 45/2006/QĐ-BCN dated December 14, 2006 of the Minister of Industry on rural wholesale electricity prices and wholesale electricity prices for collective residential areas and clusters (hereinafter referred to as Decision 45/2006/QĐ-BCN). rural and wholesale electricity prices for collective residential areas and clusters 45/2006/QĐ-BCN).

2. Retail electricity prices specified in Clause a and Clause b, Article 3 of Decision 276/2006/QĐ-TTg and rural wholesale electricity prices, wholesale electricity prices for collective residential areas and clusters specified in Decision 45/2006/QĐ-BCN apply to entities that have signed direct electricity purchase and sale contracts with electricity selling units from the national power system. Electricity prices according to quality standards specified in Decree No. 105/2005/NĐ-CP dated August 17, 2005 of the Government detailing and guiding the implementation of certain provisions of the Electricity Law.

3. The signing of electricity purchase and sale contracts shall be carried out in accordance with the Electricity Law and other current regulations.

4. Electricity prices must be applied strictly in accordance with the object and purpose of electricity use as guided in this Circular.

The electricity buyer is responsible for declaring the correct purpose of electricity use to calculate electricity prices in accordance with this Circular.

If the electricity buyer changes the purpose of electricity use leading to a change in price, they must notify the electricity seller at least 15 days in advance to adjust the pricing object in the contract. The electricity seller shall inspect and promptly apply electricity prices in accordance with the prescribed pricing object.

In case of incorrect application of electricity prices to the object of electricity use causing damage to either the electricity buyer or the electricity seller, the amount of electricity charges will be recovered or refunded. In cases where the time period of incorrect pricing cannot be clearly determined, it will be calculated over a period of 12 months from the date of discovery back.

5. When the electricity buyer uses electricity for different purposes with different prices, the electricity seller must install separate meters for each type of price; if separate meters cannot be installed, both the buyer and seller of electricity shall base their agreement on the actual usage situation to determine the specific ratio of electricity consumption for each type of price and include it in the electricity purchase and sale contract.

6. In cases where the electricity buyer uses electricity during periods when the meter is missing or not functioning, the quantity of electricity used shall be determined in accordance with Clause 3, Article 14 of Decree No. 105/2005/NĐ-CP of the Government and in the Electricity Purchase and Sale Contract. The electricity price shall be applied according to the purpose of electricity use recorded in the Electricity Purchase and Sale Contract. For the three-tier pricing system, the electricity price is the average price of the three consecutive meter readings prior to the current reading, and if there are fewer than three readings, the normal hour rate applies.

7. Retail electricity prices set by independent power producers directly selling electricity to organizations and individuals for use shall be implemented in accordance with Point c, Article 3 of Decision 276/2006/QĐ-TTg.

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

a)The buyer of electricity"is an organization or individual that has signed an electricity purchase contract with the electricity seller for direct use or resale to other organizations or individuals.

b)The seller of electricity"are wholesale and retail electricity selling units holding licenses to operate in the wholesale and retail electricity sectors.

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

Retail electricity prices based on voltage levels are stipulated in Decision No. 276/2006/QĐ-TTg and apply to all electricity buyers, except those purchasing electricity for residential use, rural wholesale electricity, and collective residential and cluster areas.

1. Electricity sale prices based on voltage levels

The electricity meter is placed at which voltage level, the electricity price is calculated according to the price specified at that voltage level.

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

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

Normal hours: from 04:00 to 18:00 (14 hours)Peak hours: from 18:00 to 22:00 (4 hours)).

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

Off-peak hours: from 22:00 to 04:00 (6 hours) the following morning.14 hours)

- Peak hours: from 18:00 to 22:00 (04 hours)

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

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

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

- Electricity buyers using electricity for irrigation purposes serving rice, vegetable, and short-term industrial crop cultivation.

c) Encouraging the adoption of the three-tier pricing system for electricity buyers using electricity for production, business, and service purposes with transformers and electricity consumption below the aforementioned threshold;

The electricity seller is responsible for creating conditions and providing guidance for electricity buyers to install three-tier meters.

 

2.2. The electricity seller must prepare sufficient meters to install for electricity buyers subject to the three-tier pricing system.. While the electricity seller does not have the conditions to install three-tier meters, the normal hour rate shall be applied.

2.3. In cases where the electricity seller has the conditions to install three-tier meters and has notified in writing the electricity buyers subject to mandatory three-tier pricing about the installation plan, the electricity buyers are responsible for cooperating with the electricity sellers to implement the installation of three-tier meters.

In cases where the electricity buyers subject to mandatory three-tier pricing refuse to install three-tier meters despite being notified three times by the electricity seller, the electricity seller may apply peak hour rates to the entire electricity consumption until the installation of three-tier meters, 15 days after the first notification.

2.4. In case the Buyer of electricity falls under the application scope of the three-tier pricing form and has organizations or individuals sharing the same meter but not falling under this scope, the Seller of electricity must separate the meters of these organizations or individuals into individual households to sign direct electricity purchase and sale contracts.

If technical conditions prevent the separation of contracts for organizations or individuals using shared meters, the Seller of electricity shall install three-tier meters for these organizations or individuals to deduct actual electricity consumption. In cases where three-tier meters cannot be installed for organizations or individuals using shared meters, the normal electricity price shall apply.

Example : The Buyer of electricity is Factory A with a transformer capacity of 560 kVA, which falls under the application scope of the three-tier pricing form, but it includes organizations or individuals sharing the same 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 RETAIL PRICES BY USE CATEGORY

1. Electricity sales price for production

1.1. Electricity prices for production sectors

Applied to all Buyers of electricity for use in production in the following sectors:

- Industry (including steel smelting, ferroalloys, clindon; caustic soda, urea, apatite concentrate, yellow phosphorus production);

- Construction; Transportation; Mining; Forestry; Fisheries and Aquaculture;

- Agriculture: crop cultivation (including electricity for irrigation of industrial crops, fruit trees on areas without water management fees, and lighting to stimulate high-yield fruit trees); animal husbandry, fisheries and aquaculture, and other types of livestock farming; production of preservatives and disease control agents;

- Water supply production (including electricity used at water supply business offices) for domestic consumption and production activities.

In case the Buyer of electricity is an organization or individual producing clean water in villages for sale to households, if electricity is used after the main meter, it will be calculated based on the wholesale price for rural areas for other purposes; if electricity is used according to a separate contract, it will be calculated based on the production electricity price.

- Offices of conglomerates, state-owned enterprises, and production management companies;

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

- Public utility enterprises;

- Pumping stations for drainage, flood control, and urban wastewater treatment;

- Radio and telecommunications company's transmission stations;

- Other production activities.

1.2. Electricity prices for irrigation pumps

Electricity prices for irrigation pumps apply to Buyers of electricity using electricity for pumping water for irrigation to serve rice, vegetable, short-term cash crop cultivation (such as ramie, rush, peanuts, soybeans...), seedling production, fruit tree cultivation, and fruit tree seedling production with water management fees, including electricity used at offices responsible for managing and operating water conservancy works or confirmed by such offices as being used for irrigation pumping to serve rice and short-term cash crop cultivation.

2. Electricity prices for administrative and public service institutions

2.1. Electricity prices for administrative and public service institutions

Electricity prices for administrative and public service institutions apply to the following Buyers of electricity:

- 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 of fairgrounds, market management boards funded from the budget; parts of guesthouses and hotels belonging to administrative agencies and public service units funded from the budget. The Buyer of electricity must provide legal documents regarding the use of budget funds to determine pricing ratios;

Example : Guesthouse A, a unit under a government agency, uses electricity for its operations funded from the government agency's budget at the electricity price for administrative and public service institutions, while commercial operations are priced at the commercial and service rate.

- Health insurance and social security agencies;

- Research, design, planning agencies; vocational training and educational institutions (excluding entities mentioned in Point 2.2, Section 2, Part III of this Circular);

- Organizations and agencies issuing books and newspapers at central and local levels (including stores), providing school equipment and medical equipment (including stores), foreign charitable organizations; - Consulting organizations (excluding entities mentioned in Point 2.2, Section 2, Part III of this Circular);

- National reserve warehouses designated by competent authorities, both within and outside the National Reserve Administration;

- Non-profit social policy banks;

- Project management boards;

- Production activities of administrative agencies and public service units are priced at the production electricity price; commercial and service activities of administrative agencies and public service units are priced at the commercial electricity price.

2.2. Electricity prices for hospitals, kindergartens, and primary schools

Applied to the following entities:

June 2024;- Kindergartens, primary schools, secondary schools, general education centers (part-time education), ethnic minority boarding schools of various forms of public, semi-public, and private;

- Hospitals (including electricity usage for mortuaries and medical waste incineration), health care facilities (including electricity usage for preventive healthcare centers), rehabilitation centers, functional recovery centers, occupational disease treatment centers, drug rehabilitation centers; offices for drug rehabilitation counseling, HIV counseling, family planning;

These entities must have establishment decisions or practice licenses from competent authorities. In cases where there are no establishment decisions or practice licenses from competent authorities, they will be priced at the commercial service rate.

2.3. Electricity prices for public lighting

2.3. Price for electricity sold for public lighting

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

3. Retail Electricity Tariff for Tiered Residential Consumption

3.1. The tiered retail electricity tariff applies to households with direct purchase contracts for electricity used for daily living purposes with the electricity seller.

Example of monthly electricity bill calculation:

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

The amount the electricity purchaser must pay is 36,300 VND, including:

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

+ Value Added Tax (10%) = 3,300 VND

Case 2: The electricity purchaser uses 500 kWh in a month.

The amount the electricity purchaser must pay is 763,400 VND, including:

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

- Next 50 kWh: 50 kWh x 1,110 VND/kWh = 55,500 VND

- Next 50 kWh: 50 kWh x 1,470 VND/kWh = 73,500 VND

- Next 100 kWh: 100 kWh x 1,600 VND/kWh = 160,000 VND

- Next 100 kWh: 100 kWh x 1,720 VND/kWh = 172,000 VND

- Next 100 kWh: 100 kWh x 1,780 VND/kWh = 178,000 VND

Total electricity charge = 694,000 VND

VAT 10% = 69,400 VND

3.2. Electricity purchasers with shared meters (with separate household registrations) need to request the electricity seller to install individual meters for each household to sign direct purchase contracts.

While the electricity seller has not yet installed individual meters for each household, temporarily apply as follows: For electricity purchasers with less than 10 households using electricity in towns, townships, district centers, suburban areas of cities, and less than 15 households in urban areas of cities, apply the tiered electricity tariff for each household based on the principle that the tier level of the electricity purchaser equals the maximum electricity consumption level of each tier specified in the electricity price table multiplied by the number of households sharing the meter.

Example : An electricity purchaser with four households using electricity through a single meter, the tiered retail electricity tariff for residential consumption is calculated as follows:

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

- 50 kWh x 4 households = 200 kWh second tier at 1,110 VND/kWh

- 50 kWh x 4 households = 200 kWh third tier at 1,470 VND/kWh

- 100 kWh x 4 households = 400 kWh fourth tier at 1,600 VND/kWh

- 100 kWh x 4 households = 400 kWh fifth tier at 1,720 VND/kWh

- From the 1,601st kWh onwards at 1,780 VND/kWh

3.3. For electricity purchasers with one household having multiple residential electricity purchase contracts (each contract with a separate meter) for residential use at one location, the quantity for calculating the tiered residential electricity tariff is the total quantity recorded on the meters at that location.

3.4. In cases where electricity purchasers sign contracts for residential electricity use at tiered retail electricity tariffs and also engage in other activities (such as production, business...) using the same meter: if the monthly electricity consumption measured by the meter is less than or equal to 50 kWh per household (with separate household registration), calculate the residential electricity tariff; if it exceeds 50 kWh per household, calculate the electricity cost according to the purpose of use as stipulated in the contract.

Example: An electricity purchaser signs a contract for residential electricity use at tiered retail electricity tariffs and engages in production, business, and service activities using the same meter for residential electricity measurement. Both parties agree in the contract that 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 at residential tiered tariff 120 kWh (150 kWh x 80%)

+ First 100 kWh at 550 VND/kWh

+ Next 20 kWh at 1,110 VND/kWh

- Quantity of electricity calculated at production tariff 15 kWh (150 kWh x 10%)

- Quantity calculated at business tariff 15 kWh (150 kWh x 10%)

3.5. Customers purchasing electricity through their own transformer for residential use shall be charged according to the tiered retail electricity tariff for residential consumption.

3.6. The signing of electricity purchase contracts for tenants using electricity for residential purposes shall be carried out as follows:

a) At each rental address (based on property ownership documents of the landlord), the electricity seller only signs one sole electricity purchase contract. The signing of the contract is conducted among three parties: the electricity seller, the person directly signing the rental contract or a representative of the tenants (in case multiple people sign the rental contract at the same location), and the landlord. In the event that the tenant fails to pay the electricity bill on time for any reason, the landlord is responsible for paying the electricity bill on behalf of the tenant.

b) In cases where there is already an electricity purchase contract at the rental address (signed by the landlord or previous tenants), the electricity seller will only sign a new electricity purchase contract after terminating the old contract.

c) In cases where students and workers rent houses for residence (with a lease term of 12 months or more) and the landlord is an electricity purchaser who signs an electricity purchase contract with the electricity seller, every four people (based on temporary residence registration certificates and rental contracts confirmed by local authorities) are considered as one household applying the tiered retail electricity tariff for residential consumption.

3.7. In cases of force majeure leading to the electricity seller having to shift the meter reading date, the usage quota for each tier of the residential electricity tariff will be adjusted accordingly to the number of days shifted.

4. Retail Electricity Tariff for Business Purposes

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

a) Enterprises, shops, supermarkets, wholesale and retail trade establishments selling materials and goods, including pesticide, veterinary drug, seed, and livestock shops;

b) Financial institutions and securities companies including commercial banks, savings funds, financial companies, and stock companies;

c) Cable television and terrestrial digital television companies;

d) Lottery companies belonging to all economic sectors;

đ) Insurance organizations (excluding social health insurance and medical insurance);

e) Tourist facilities, photography shops, nightclubs, karaoke bars, massage parlors;

g) Food and beverage shops, hair salons, laundry services, tailoring shops, car and motorcycle washing services;

h) Advertising activities (including advertising by television stations) according to the needs of production, business, and service establishments;

i) Repair and refurbishment shops for cars, motorcycles, transportation equipment, and consumer goods.

k) Hotels, hostels, guesthouses, and reception houses of organizations and individuals; houses rented for residence or office use by the landlord who enters into a power purchase contract.

l) Electricity used in ticket sales rooms, cargo handling stations, waiting rooms (including waiting halls) of airports, railway stations, bus terminals, and port shops and counters.

m) Electricity used at toll collection stations and parking lots for automobiles.

n) Electricity used in warehouses during the circulation process.

o) Offices and headquarters of corporations, state-owned enterprises, and companies directly managing business and services.

p) Offices, customer service centers;

q) Organizations and individuals that use electricity both for production and for business operations in the postal and telecommunications sectors shall be charged for electricity purchases as follows:

+ Postal offices in Bac Kan, Cao Bang, Dien Bien, Dak Lak, Dak Nong, Gia Lai, Ha Giang, Ha Tinh, Kon Tum, Lang Son, Lao Cai, Lai Chau, Nghe An, Quang Binh, Quang Tri, Son La, Tuyen Quang, Hue, Yen Bai:

* 97% of electricity consumption at production prices.

* 3% of electricity consumption at business operation prices.

+ Postal offices in Ba Ria-Vung Tau City, Dong Nai Province, Da Nang City, Hanoi, Hai Phong City, Ho Chi Minh City, and other postal and telecommunications businesses:

* 70% of the electricity volume used is priced at the production rate.

* 30% of electricity output shall be priced according to the business rate.

+ Postal offices in remaining provinces, inter-provincial telecommunications companies, and Stamp Company:

* 90% of electricity output shall be priced according to the production rate.

* 10% of electricity output shall be priced according to the business rate.

 

IV. ELECTRICITY SALES PRICES FOR RURAL AREAS

1. Wholesale electricity prices for rural areas

1.1. Wholesale electricity prices for rural household use

Applies to the quantity of electricity used for household purposes by households purchasing electricity from the transformer station through a master meter, regardless of whether the transformer station belongs to the buyer or seller, and irrespective of voltage level.

1.2. Wholesale electricity prices for other purposes

This applies to the amount of electricity used for purposes other than domestic use and irrigation water pumping for rice cultivation, vegetable production, and short-cycle industrial crops intercropping.

1.3. The quantity of electricity calculated under each price category (household use, water pumping, other purposes) is determined based on the electricity metering system installed at each transformer station.

1.4. In cases where there is no separate meter for each purpose of electricity usage, the following applies:

a) The buyer and seller shall base their determination of specific electricity usage ratios for each purpose on actual electricity usage conditions. The determination of electricity usage ratios for each purpose is as follows:

+ Before the tenth day of each month, the buyer is responsible for providing the seller with a list and the quantity of electricity sold directly to households for household use and other purposes in the previous month. Based on the list and the quantity of electricity sold directly according to usage purposes provided by the buyer, the seller and buyer will jointly determine the specific electricity usage ratio for each purpose to serve as the basis for setting wholesale electricity prices for the following month.

+ If the bulk electricity buyer fails to provide the required list and quantity of electricity sold directly according to usage purposes without a valid reason, the seller has the right to charge electricity prices based on the other purposes rate for 100% of the electricity sold.

+ In necessary cases and for households using more than 100 kWh/month for household use (based on the list provided by the buyer), the seller has the right and the buyer has the responsibility to cooperate with the seller to inspect electricity usage to ensure it is efficient and appropriate. If it is proven that electricity is being used beyond household purposes (such as small-scale production or service provision), the seller has the right to reassess the electricity usage ratio for each purpose to ensure accurate wholesale electricity pricing according to intended use.

b. If the buyer and seller cannot agree on specific electricity usage ratios for each purpose, they should report to the local Industry Department for review and resolution. In necessary cases, the Industry Department may coordinate with the Finance Department to decide on specific electricity usage ratios for each price category to be included in the electricity purchase and sale contract.

1.5. The electricity sales price applicable to the quantity of electricity used for irrigation water pumping to support rice, vegetable, and short-cycle industrial crop cultivation, measured at the master meter, is the normal time-of-use irrigation water pumping electricity price.

1.6. If the buyer's electricity usage for other purposes (production, business...) exceeds 50% for a single meter, the price will be calculated based on the production electricity price corresponding to the voltage level specified in Appendix 276/2006/QĐ-TTg, reduced by 10%.

Example 1: For the buyer with an electricity meter installed at a transformer station with a 6 kV voltage level, supplying electricity for the daily living needs of 100 rural households accounting for 45% of the total consumption, irrigation water pumping accounting for 5%, and other purposes accounting for 50%, the calculation is as follows:

+ 45% of the electricity consumption is priced at the wholesale rural household electricity price of 390 VND/kWh.

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

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

Example 2: For the buyer with an electricity meter installed at a transformer station with a 6 kV voltage level, supplying electricity for the daily living needs of 100 rural households accounting for 55% of the total consumption, irrigation water pumping accounting for 5%, and other purposes accounting for 40%, the calculation is as follows:

+ 55% of the electricity consumption is priced at the wholesale rural household electricity price of 390 VND/kWh.

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

+ 40% of the electricity consumption is priced at the other purposes electricity price of 795 VND/kWh.

1.7. If a transformer station supplies electricity separately to different villages, cooperatives, hamlets, and neighborhoods to qualify for wholesale prices, it must ensure that a master meter is installed at the transformer station.

1.8. In cases where agricultural and forestry stations supply electricity to both staff and farmers along different lines without separate metering for each group, the pricing is as follows:

- The portion of electricity supplied to collective staff housing is priced at the wholesale price for collective residential areas.

- The portion of electricity supplied to farmers is priced at the wholesale rural electricity price.

1.9. In cases where the substations of agricultural farms and forest farms supply electricity both to the staff of the agricultural and forest farms and to farmers living interspersed without being able to determine specific recipients, the price shall be calculated based on the wholesale price for rural household electricity for residential purposes; for electricity used for other purposes, it shall be calculated based on the wholesale price for other purposes for collective residential areas.

2. Retail prices for rural electricity

2.1. The retail prices for electricity in rural, mountainous, and island areas shall be implemented according to the retail electricity pricing schedule prescribed in Decision 276/2006/QĐ-TTg and in Parts I, II, and III of this Circular, except for the cases specified in Points 2.2 and 2.3 of this Section.

2.2. The retail price for rural household electricity purchased by rural electricity management organizations through the national power system at the rural wholesale electricity price to sell directly to electricity customers in areas where power investment and operation are not economically viable, as defined by the provincial People's Committee, but shall not exceed the ceiling price for rural household electricity as stipulated in Clause b of Article 3 of Decision 276/2006/QĐ-TTg.

The provincial People's Committee is responsible for ensuring that power units operating in areas where power investment and operation are not economically viable receive support policies as prescribed by the Electricity Law.

2.3. The retail price for electricity sold directly by independent power generation units to electricity customers in rural, mountainous, and island areas shall be established and submitted to the provincial People's Committee for approval by the seller, but shall not exceed the retail electricity pricing range prescribed in Clause c of Article 3 of Decision 276/2006/QĐ-TTg.

2.4. In areas where the retail price for rural household electricity purchased by rural electricity management organizations through the national power system to sell directly to electricity customers is still higher than the ceiling price for rural household electricity as prescribed in Decision 276/2006/QĐ-TTg, the provincial People's Committee shall direct relevant departments and rural electricity management organizations to continue implementing necessary measures to reduce costs and losses in order to bring the electricity selling price below the ceiling price for rural household electricity.

 

V. PRICES FOR COLLECTIVE RESIDENTIAL AREAS AND COMMUNITY GROUPS

1. Wholesale prices for collective residential areas and community groups

1.1. Wholesale prices for electricity serving residential needs for collective residential areas and community groups apply to the electricity consumption serving residential needs of the following entities:

a) Community groups, collective residential areas of agencies (including diplomatic agencies, international organizations), factories, plants, construction sites, agricultural farms, forest farms, stations, camps... where the buyer includes ten households or more using electricity for villages, hamlets, communes (which do not meet the conditions for rural wholesale electricity sales); towns, townships, district capitals, suburban areas of cities, and fifteen households or more using electricity for cities.

b) Collective student and trainee housing, agency housing, factory housing, military housing, elderly care facilities, disabled person housing, orphanages...

c) Housing of religious practitioners in temples, pagodas, churches...

1.2. Wholesale prices for electricity for other purposes apply to electricity usage outside residential purposes.

1.3. Wholesale prices for electricity for collective residential areas and community groups only apply to places where the seller does not have the conditions to sell directly to individual consumers.

1.4. In places where the seller has the conditions to sell directly to individual consumers but the customer disagrees with such direct sales, the seller may apply the stepped retail price for household electricity as guided in Section 3.2 of Part III of this Circular, based on the actual number of households using electricity.

2. Retail prices for electricity for collective residential areas and community groups

The retail price for electricity that the electricity management organization (representing the management board of the collective residential area or independent electricity business organization) contracts to purchase from the seller at the main meter according to the wholesale price for collective residential areas and community groups to resell to electricity users shall be applied according to the retail electricity pricing schedule prescribed in Decision 276/2006/QĐ-TTg and as guided in this Circular.

 

VI. PRICES FOR INDUSTRIAL ZONES

1. Wholesale prices for industrial zones

1.1. The price of electricity purchase and sale between the Industrial Zone Management Board and the seller shall be agreed upon in the electricity purchase and sale contract with a term, but shall not exceed the wholesale electricity pricing range prescribed by the Ministry of Industry.

In the absence of a wholesale electricity pricing range, the price of electricity purchase and sale between the Industrial Zone Management Board and the seller shall be agreed upon by both parties on the principle of ensuring the legitimate interests of both parties.

1.2. The negotiation and agreement on wholesale electricity prices shall be carried out in accordance with Article 20 of Decree No. 105/2005/NĐ-CP dated August 17, 2005 of the Government detailing and guiding the implementation of certain provisions of the Electricity Law.

1.3. While the buyer and seller have not reached an agreement on the wholesale electricity price, unless otherwise specified by the competent authority, the wholesale electricity price for industrial zones shall be applied as follows:

a) The seller sells electricity to the Industrial Zone Management Board at the main meter according to the electricity price applicable to production industries as prescribed in Decision 276/2006/QĐ-TTg, except when the Industrial Zone Management Board purchases electricity from the seller and resells it to organizations and individuals using electricity for production within the same voltage level in the industrial zone.

b) In the case where the Industrial Zone Management Board purchases electricity from the seller and resells it to organizations and individuals using electricity for production within the same voltage level in the industrial zone:

The seller sells electricity to the Industrial Zone Management Board at the main meter according to the electricity price applicable to production industries as prescribed in Decision 276/2006/QĐ-TTg, reduced by 2%. The quantity of electricity for calculating the reduced price is based on the actual monthly consumption of customers within the industrial zone purchasing the same voltage level from the seller.

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

- If Industrial Zone Management Board A sells electricity to households producing within the industrial zone at 6 kV:

The price that Management Board A of Industrial Park pays to the Electricity Seller shall be calculated as follows:

	Electricity sales price (VND/kWh)
- Normal hours - Low-demand hours - Peak hours	785 425 1.590

Management Board A of Industrial Park sells electricity to production households within the industrial park at 6 kV as follows:

	Electricity sales price (VND/kWh)
- Normal hours - Low-demand hours - Peak hours	860 480 1.715

- In the case where Management Board A of Industrial Park sells electricity to production households within the industrial park at 110 kV:

The price that Management Board A of Industrial Park pays to the Electricity Seller shall be calculated as follows:

	Electricity sales price (VND/kWh)
- Normal hours - Low-demand hours - Peak hours	785 * 98% = 769,3 425 * 98% = 416,5 1.590 * 98% = 1.558,2

 

Management Board A of Industrial Park sells electricity to production households within the industrial park at 110 kV as follows:

	Electricity sales price (VND/kWh)
- Normal hours - Low-demand hours - Peak hours	785 425 1.590

2. Retail prices for electricity customers in the industrial park:

The retail prices for electricity customers in the industrial park shall be implemented according to the prescribed objects and rates set forth in the Appendix attached to Decision No. 276/2006/QĐ-TTg and the guidance provided in Parts I, II, and III of this Circular.

VII. EFFECTIVE DATE OF IMPLEMENTATION

1. This Circular takes effect from January 1, 2007 (as per the effective date of Decision No. 276/2006/QĐ-TTg) and applies nationwide.

2. This Circular replaces Joint Circular No. 01/1999/TT-LT/BVGCP-BCN dated February 10, 1999, Joint Circular No. 02/2000/TTLT-BVGCP-BCN dated February 15, 2000, issued by the Ministry of Industry and the Government Price Control Board on guiding the implementation of residential electricity consumption prices for rural households, and Circular No. 01/2005/TT-BCN dated January 7, 2005, issued by the Ministry of Industry on guiding the implementation of electricity sales prices.

3. Relevant power units and electricity customers nationwide are responsible for implementing this Circular.

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

 

DEPUTY MINISTER

DEPUTY MINISTER

Châu Huệ Cẩm