Circular No. 03/2002/TT-BCN guiding the implementation of electricity selling prices

CIRCULAR

On guiding the implementation of electricity selling prices

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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. 124/2002/QĐ-TTg dated September 20, 2002 of the Government Prime Minister on electricity selling prices;

After reaching consensus with the Government Price Board and Vietnam Electricity Corporation, the Ministry of Industry guides the implementation of electricity selling prices as follows:

I. GENERAL PROVISIONS

1- This Circular guides the implementation of electricity selling prices according to Decision No. 124/2002/QĐ-TTg dated September 20, 2002 of the Government Prime Minister.

The electricity selling prices mentioned above apply to production, business, household consumption, administrative and public service agencies that have direct electricity purchase contracts with units under Vietnam Electricity Corporation (specific prices for each category are detailed in the attached Appendix).

The electricity selling prices stipulated in the attached Appendix are prices excluding value-added tax and based on the quality standards for 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 transactions must be conducted through contracts. The signing of electricity 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- When the electricity buyer uses electricity for multiple purposes at different rates, the electricity seller must install separate meters for each rate; in cases where separate meters cannot be installed, both parties must base their determination of specific proportions for each rate on actual electricity usage and include this in the electricity purchase and sale contract.

4- An electricity buyer who is a Vietnamese citizen residing abroad or a foreigner permanently residing in Vietnam investing under the Law on Encouraging Domestic Investment (investment license issued by the competent authority) shall be subject to the same electricity selling price as a Vietnamese citizen.

5- If the electricity buyer consumes less than 15 kWh per month, meter readings may be taken once every three months. If the electricity buyer consumes less than 15 kWh over a three-month period, the correct meter reading will be recorded, and the electricity seller may charge a fixed fee equivalent to the value of 15 kWh according to the electricity selling price table attached to this Circular and record it as revenue from electricity sales.

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

7- Electricity selling prices must be applied strictly according to the category of electricity usage.

The electricity buyer is responsible for declaring the purpose of electricity usage accurately to calculate the electricity selling price according to the category specified in Section III of this Circular.

If the electricity buyer changes the purpose of electricity usage leading to a change in price, they must notify the electricity seller 15 days in advance to adjust the price in the contract. The electricity seller shall inspect and promptly apply the electricity selling price according to the specified category.

Misapplication of electricity selling prices due to incorrect categorization of electricity usage causing loss to either the buyer or seller, upon discovery, will result in recovery or refund of electricity charges. In cases where the time period of misapplication cannot be clearly determined, it will be calculated as one year.

8- The purchase and sale of reactive power capacity shall be implemented according to Joint Circular No. 09/2001/TTLB-BCN-BVGCP dated October 31, 2001 of the Ministry of Industry and the Government Price Board.

9- In this Circular, the following terms are understood as follows:

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

b) "Electricity seller" refers to electricity supply entities under Vietnam Electricity Corporation.

II- ELECTRICITY SELLING PRICES BASED ON VOLTAGE LEVELS AND TIME OF USE IN A DAY

1- Electricity selling prices based on voltage levels

Electricity selling prices based on voltage levels apply to all electricity buyers and are specified in the Appendix attached to this Circular, except for electricity buyers subject to monthly tiered residential electricity selling prices, wholesale electricity selling prices for rural areas, collective housing complexes, and community clusters. The electricity meter is placed at which voltage level, the price is calculated according to the regulations at that voltage level. Electricity charges are calculated based on the volume recorded by the electricity meter, regardless of whether the transformer belongs to the electricity buyer or seller, without adding any additional costs. If the electricity buyer requests to move the location of the electricity meter from one voltage level to another, they must reach agreement with the electricity seller and bear the cost of moving the meter.

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

a) Electricity selling prices are defined based on the time of electricity usage in a day (hereinafter referred to as the three-tier pricing system). The time of electricity usage in a day for applying the three-tier pricing system is defined as follows:

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

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

- Low peak hours: from 10 PM to 4 AM the next morning (6 hours), applicable to the following categories:

- Electricity buyers using electricity for production and business purposes, supplied through dedicated transformers of 50 KVA or higher or having average monthly electricity consumption of 5000 kWh or more over a continuous three-month period.

To contribute to balancing the load curve and reducing investment costs for power sources, electricity buyers with transformers and electricity consumption below the aforementioned threshold are encouraged to adopt the three-tier pricing system. Vietnam Electricity Corporation has the responsibility to create conditions and guide these households to install three-tier meters.

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

b) The electricity seller must prepare sufficient three-tier electricity meters for installation for electricity buyers within the scope of application of this pricing system. While the electricity seller has not installed three-tier meters, the normal hourly pricing system shall be applied.

c) In cases where the electricity meter is lost, operates inaccurately (including inaccurate timing) or stops operating, the volume of electricity consumed shall be calculated according to Article 40, Clause 1, 2, and 3 of Decree No. 45/2001/NĐ-CP dated August 2, 2001 of the Government on electricity activities and electricity usage, and the electricity selling price shall be calculated according to the normal hourly pricing system.

d) In case the electricity buyer falls under the application form of three-tier pricing and has organizations, individuals sharing the same meter that do not fall under this category, the electricity seller must separate the meters of these organizations and individuals into individual accounts to sign direct electricity purchase and sale contracts.

If technical conditions prevent the separation of contracts for organizations and individuals sharing the same meter, the electricity seller shall install a three-tier meter for these organizations and individuals to deduct actual electricity consumption. In cases where a three-tier meter cannot be installed, 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 form of three-tier pricing but shares meters with organizations and individuals that do not fall under this category, 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 USE PURPOSE

1- Electricity sales price for production

a) 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 plant irrigation, fruit tree irrigation in areas without water fee collection, high-yield fruit tree lighting stimulation); livestock breeding, aquaculture and other types of animal husbandry; production of disease control and prevention drugs;

- Forestry;

- Aquaculture;

- Mining;

- Industry;

- Construction;

- Transportation;

- Offices of State-owned Enterprises, management companies operating production and business activities shall be charged according to the production price corresponding to their industry;

- Warehouses containing raw materials and semi-finished products during the production process;

- Public utility enterprises;

- Other production activities;

b) Electricity sales price for certain special production industries:

b1) Electricity sales price for irrigation pumps applies to electricity buyers using it for irrigation purposes serving rice, vegetable, short-term industrial crop cultivation (ramie, rush, peanuts, soybeans...), seedling cultivation, fruit trees, seedling cultivation with water fee collection, including electricity used at offices managing and operating water conservancy works.

b2) Electricity sales price for clean water production, drainage, urban wastewater treatment; steelmaking, ferroalloy, chlorine, caustic soda, urea, apatite ore processing, phosphorus gold production, applicable to the following entities:

- Electricity buyers for clean water production (including electricity used at clean water business offices) supplied for domestic and production needs, ensuring conditions such as: having a business license for clean water supply; selling clean water according to prices set by provincial/municipal People's Committees directly under the central government, or district/municipal town/city People's Committees authorized by provincial People's Committees.

In cases where electricity buyers are organizations or individuals producing clean water in villages for sale to consumers, if they use electricity after the main meter, it will be calculated based on the non-production purpose wholesale price for rural areas; if they use electricity under a separate contract, it will be calculated based on the clean water production price.

Clean water producers who wish to apply time-of-use pricing shall have the electricity seller install a three-tier meter and implement time-of-use pricing.

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

- Electricity buyers for steelmaking, ferroalloys, chlorine; caustic soda, urea, apatite ore processing, phosphorus gold production, may only apply this tariff to the following electricity usage: steelmaking (including auxiliary processes for steelmaking, pig iron making, oxygen production within integrated facilities); ferroalloy and chlorine production lines; urea, apatite ore processing, phosphorus gold production lines; caustic soda production lines with a concentration of 32% or higher.

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

c) 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:

c1) The electricity seller sells to the Industrial Zone Management Board according to the electricity sales price specified at the metering voltage level, depending on each type of price (with and without foreign investment capital). The calculation of electricity volume according to each type of price at the main meter is determined as follows:

- The electricity volume calculated according to the price for organizations and individuals using electricity with foreign investment capital is the volume recorded at the meter of the organization or individual directly using electricity for production and business operations, confirmed by representatives from both parties (electricity seller, buyer, and end-user).

- The electricity volume calculated according to the price for organizations and individuals using electricity without foreign investment capital equals the total volume recorded at the main meter minus the total volume calculated according to the price for organizations and individuals using electricity with foreign investment capital.

c2) The Industrial Zone Management Board sells electricity to users within the industrial zone: applying the electricity sales price table attached hereto.
3. For discounting transferable instruments and other securities:

Example: The Industrial Zone Management Board A purchases electricity from the electricity seller at 110KV voltage level to resell to production users within the industrial zone, the payment price of Industrial Zone Management Board A to the electricity seller is calculated as follows:

Unit of measurement: đ/KWh

- The Industrial Zone Management Board A sells electricity to production users within the industrial zone at 6KV voltage level as follows:

Unit of measurement: đ/KWh

2- Electricity sales price for administrative agencies and public service units:

a) Electricity sales price for administrative agencies and public service units applies to electricity buyers as follows:

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

- Units operating in cultural, artistic, press, sports fields (including swimming pools, tennis courts...); Radio and Television stations; theaters, performance companies; Cinema and circus companies, cultural information centers, sports stadiums; museums, memorials, exhibition halls, funeral parlors, crematoriums; parts funded from the state budget of trade fairs, market management boards; parts funded from the state budget of guesthouses and rest houses belonging to administrative agencies and public service units. The electricity buyer must provide legal documents regarding the use of state budget funds to serve as the basis for determining the pricing ratio.

Example: The Guest House No. 8 Chu Van An, Hanoi is a unit under the Office of the Government: the portion of its activities funded by the Office of the Government shall be calculated based on the administrative service price, while the commercial operation portion shall be calculated based on the commercial price, and services according to the ratio.

- Health insurance agencies, social insurance agencies.

- Research, design, planning agencies; vocational training and educational institutions (excluding those mentioned in point b, Clause 2, Section III of this Circular).

- Central and local book and newspaper publishing organizations (including retail stores), school equipment suppliers, medical equipment providers (including retail stores), foreign charitable organizations.

- Consulting facilities, except for those consulting facilities mentioned in point b, Section 2, Part III of this Circular.

- Storage facilities under the National Reserve Bureau.

- Banks serving the poor.

- Project management boards.

Administrative agencies' and public service units' production activities shall be calculated based on the electricity selling price for production; commercial and service activities shall be calculated based on the electricity selling price for commerce and services.

b) The electricity selling price for hospitals, kindergartens, primary schools, secondary schools applies to the following entities:

Kindergartens, primary schools, secondary schools at all levels: elementary, middle, high school, and regular education centers (the cultural education part), boarding schools for ethnic minorities.

Hospitals (including hospital funeral homes), healthcare facilities (including the healthcare part of preventive health 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 from competent authorities or operating licenses. In cases where there are no establishment decisions from competent authorities or operating licenses, they shall be calculated based on the commercial service price.

c) The electricity selling price for public lighting applies to buyers using electricity for public street, park, alley, temple, church, historical site, martyrs' cemetery, residential area, building staircase, apartment elevator, water pumping for residential areas or community clusters.

3- Residential electricity selling price

a) Tiered residential electricity selling price:

Applies to electricity buyers using it for household needs.

Monthly electricity bill calculation is as follows:

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

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

Of which: Electricity cost for 60 kWh x 550 VND/kWh = 33,000 VND

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

Example 2: The electricity buyer uses 370 kWh in a month.

The amount the electricity buyer has to pay is: 431,750 VND

Of which: - 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

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

- Remaining 70 kWh: 70 kWh x 1,400 VND/kWh = 98,000 VND

- Total electricity cost = 392,500 VND

- VAT 10% = 39,250 VND

Electricity buyers with households sharing a meter (with separate household registration) should request the electricity seller to install individual meters for each household to sign direct purchase and sale contracts.

While the electricity seller has not yet installed individual meters for each household, temporarily apply as follows: For electricity buyers with less than 10 households in towns, townships, county seats, suburban areas of cities, and less than 15 households in urban areas of cities, the tiered residential electricity selling price shall be applied to each household sharing a meter based on the principle that the tier level of the total electricity consumption equals the maximum electricity consumption level of each tier specified in the electricity tariff multiplied by the number of households sharing a meter.

Example: The electricity buyer consists of 4 households sharing a meter to measure electricity usage, the tiered residential electricity selling price is calculated as follows:

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

- 50 kWh x 4 households = 200 kWh for the next tier priced at 900 VND/kWh

- 50 kWh x 4 households = 200 kWh for the next tier priced at 1,210 VND/kWh

- 100 kWh x 4 households = 400 kWh for the next tier priced at 1,340 VND/kWh

- Subsequent electricity usage from the 1,201st kWh onward will be priced at 1,400 VND/kWh

For electricity buyers with multiple residential electricity purchase contracts (each contract having a separate meter) for electricity usage at one location, the tiered residential electricity selling price calculation is based on the total electricity consumption recorded on the meters at that location.

In cases where tenants renting houses for residence and the landlord is the electricity buyer signing a direct purchase and sale contract with the electricity seller, every four people (based on temporary residence registration) are considered one household applying the tiered residential electricity selling price.

If the electricity buyer signs a contract to purchase electricity for residential purposes at the tiered residential electricity selling price and also engages in other activities (production, business...) sharing the same meter, if the monthly electricity consumption measured by the meter is 50 kWh or less per household (with separate household registration), then calculate the residential electricity selling price; if it exceeds 50 kWh per household, calculate the electricity price for each purpose of use according to the ratio agreed upon in the contract.

Example: The electricity buyer signs a contract to purchase electricity for residential purposes at the tiered residential electricity selling price, with production, business, and service activities sharing the same meter measuring residential electricity usage. Both parties agree in the contract that residential electricity usage accounts for 80%, production electricity usage accounts for 10%, and business and service electricity usage accounts for 10%.

If the household uses 45 kWh in a month, then calculate 100% of the residential electricity selling price at the first tier of 100 kWh priced at 550 VND/kWh.

If the household uses 150 kWh in a month, the calculation is as follows:

- Residential electricity usage calculated at the tiered price: 150 kWh x 80% = 120 kWh

First 100 kWh priced at 550 VND/kWh

Next 20 kWh priced at 900 VND/kWh

- Production electricity usage calculated at the production price (895 VND/kWh): 150 kWh x 10% = 15 kWh

- Business and service electricity usage calculated at the business and service price (1,410 VND/kWh): 150 kWh x 10% = 15 kWh

b) Wholesale price:

b1) Rural electricity price:

- Price for electricity serving rural residential needs:

Applies to electricity consumption for residential purposes by households, cooperatives, villages, hamlets purchasing electricity through a master meter installed at the transformer station, regardless of whether the transformer station belongs to the electricity buyer or seller, and regardless of voltage level.

- Price for electricity serving 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.

The electricity consumption volume calculated according to each type of price (domestic use, irrigation water pumping, other purposes) is the volume recorded on the meter installed at the transformer. In cases where there is no separate meter for each type of price, the specific ratio for each type of price shall be determined based on actual electricity usage conditions and included in the power purchase contract.

- The selling price of electricity applied to the volume of electricity used for irrigation water pumping for rice cultivation, vegetable production, and short-cycle industrial crops intercropping, as recorded on the total meter, is the normal hourly selling price of electricity.

- In cases where the electricity buyer's proportion of electricity usage for other purposes (production, business...) is 50% or more for one meter, it will be calculated according to the production electricity price corresponding to the voltage level listed in the Appendix attached to this Circular, reduced by 10%.

Example 1: The electricity buyer has an electricity meter installed at the substation, with a voltage level of 6 kv, supplying domestic electricity to 100 rural households accounting for 45% of the volume, irrigation water pumping accounting for 5% of the volume, and electricity for other purposes accounting for 50% of the volume, priced as follows:

- 45% of the electricity volume is priced at the wholesale rural domestic electricity rate of 390 VND/kWh.

- 5% of the electricity volume is priced at the normal hourly irrigation water pumping rate of 600 VND/kWh.

- 50% of the electricity volume is priced at the production electricity rate minus 10%, which is 774 VND/kWh (860 x 0.9 = 774).

Example 2: The electricity buyer has an electricity meter installed at the substation, with a voltage level of 6 kv, supplying domestic electricity to 100 rural households accounting for 55% of the volume, irrigation water pumping accounting for 5% of the volume, and electricity for other purposes accounting for 40% of the volume, priced as follows:

- 55% of the electricity volume is priced at the wholesale rural domestic electricity rate of 390 VND/kWh.

- 5% of the electricity volume is priced at the normal hourly irrigation water pumping rate of 600 VND/kWh.

- 40% of the electricity volume is priced at the electricity rate for other purposes of 730 VND/kWh.

- In cases where a substation supplies separately to different communes, cooperatives, villages, hamlets to enjoy the wholesale rate, it must ensure that the total electricity meter measuring device is installed at the substation.

- In cases where the substations of agricultural farms and forestry farms supply electricity both to staff and workers of the agricultural and forestry farms and to farmers along individual lines without being able to measure separately for each group, the pricing is as follows:

The portion of electricity supplied to the collective living area of staff and workers is priced at the wholesale rate for collective living areas and residential clusters.

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

- In cases where the substations of agricultural farms and forestry farms supply electricity both to staff and workers of the agricultural and forestry farms and to farmers mixed together without being able to identify specific groups, the domestic electricity is priced at the wholesale rural electricity rate; for electricity used for other purposes, it is priced at the rate for other purposes of collective living areas and residential clusters.

b2) Selling price of electricity for collective areas and residential clusters:

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

Collective areas of agencies, enterprises, factories, construction sites, agricultural farms, forestry farms, stations, camps... where the electricity buyer includes ten households or more using electricity in towns, townships, county seats, suburban areas of cities, and fifteen households or more using electricity in cities.

Collective housing for students, trainees, agency staff, enterprise employees, military forces, elderly care facilities, disabled people, orphanages...

Housing of religious practitioners at temples, churches, mosques...

- Selling price of electricity for other purposes of use: applicable to the amount of electricity used for purposes other than domestic use.

The wholesale domestic electricity rate for the above residential clusters only applies to places where Vietnam Electricity Corporation does not have the conditions to sell directly to households. Where Vietnam Electricity Corporation has the conditions to sell directly to households, the Corporation is allowed to remove the total meter and install individual meters for direct sales to households.

4- Selling price of electricity for organizations and individuals engaged in business services, tourism, trade

This applies to the following users:

- Companies, stores, commercial trading establishments, wholesalers, retailers of materials and goods, including pesticide, veterinary drug, seed, and livestock stores.

- Financial service establishments: Commercial banks, savings funds, financial companies, securities companies.

- Cable TV company MMDS.

- Lottery companies belonging to all economic sectors.

- Insurance organizations (excluding social insurance, health insurance).

- Tourist establishments, photography shops, nightclubs, karaoke bars, massage parlors.

- Restaurants, refreshment shops, hair salons, dry cleaners, tailor shops, car and motorcycle washing shops...

- Repair and refurbishment shops for consumer goods.

- Hotels, guesthouses, inns, guesthouses of various industries and localities serving domestic and foreign guests.

- The electricity buyer is a Vietnamese person who signs a power purchase contract for foreigners to use at rented accommodation, offices.

- Electricity used in ticket sales rooms, cargo handling stations, waiting rooms (including waiting halls) of stores, product counters at airports, railway stations, bus terminals, ports...

- Electricity used at toll collection points for transportation, parking lots for cars.

- Electricity used in warehouses during circulation.

- Offices and headquarters of State-owned Enterprises, Companies of all economic sectors performing management, business, and service functions.

- For postal and telecommunications activities under the Ministry of Posts and Telecommunications, Ministry of National Defense:

Based on the purpose of electricity use to determine the appropriate electricity selling price object: production; business, service or administrative, public institution.

Example: electricity used in the Post Equipment Factory falls under the production price category; electricity used in the Post Material Company falls under the business, service price category; electricity used in the University of Posts and Telecommunications falls under the administrative, public institution price category.

Vietnam Post and Telecommunications Corporation, post offices in provinces and cities (including affiliated units), stamp companies that use electricity for both production and business operations are priced as follows:

- Office of Vietnam Post and Telecommunications Corporation, Dong Nai Province Post Office, Ba Ria-Vung Tau Province Post Office, and Ho Chi Minh City, Hanoi, Hai Phong, Da Nang City Post Offices, Mobile Information Company, International Telecommunication Company:

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 services in provinces: Cao Bằng, Bắc Cạn, Lạng Sơn, Lào Cai, Yên Bái, Hà Giang, Tuyên Quang, Lai Châu, Sơn La, Thanh Hoá, Nghệ An, Hà Tĩnh, Quảng Bình, Quảng Trị, Gia Lai - Kon Tum, Dak Lak:

97% of electricity output shall be priced according to the production rate.

3% of electricity output shall be priced according to the business rate.

- Postal services in other provinces, inter-provincial telecommunications companies, and stamp companies:

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

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

5- Electricity selling price for foreign-invested enterprises and foreigners:

a) The electricity selling price for production and certain activities below shall apply the electricity price for production:

- Applies to production facilities with foreign investment capital (100% foreign capital or joint ventures) under the Law on Foreign Investment in Vietnam (including cases of water production and joint venture passenger transport); regardless of whether such facilities are located within or outside industrial zones or export processing zones.

- Electricity used for basic construction projects funded by foreign investment capital or joint ventures with foreign investment, regardless of which party signing the electricity purchase contract is the project investor or the construction contractor.

- Electricity used by foreign entities (Party B) constructing domestic investment projects.

- In the case where the electricity buyer is a Vietnamese enterprise - a subcontractor of a foreign Party B - directly signing an electricity purchase contract with the seller, the price shall be calculated as for a Vietnamese enterprise.

- Electricity sold to foreign ships entering Vietnamese ports.

- Electricity used for film projection, teaching, vocational training, medical examination and treatment activities invested in or operated as joint ventures by foreign entities.

b) Electricity selling price for business, service, tourism, and trade activities:

Applies to the amount of electricity used for service, tourism, commercial, and hotel purposes by facilities operating under the Law on Foreign Investment in Vietnam.

c) Electricity selling price for residential consumption:

- Applies to residential electricity consumption by embassies, trade offices, representative offices (consulates, government-level representative offices), international organizations, diplomatic missions.

- Applies to electricity used at representative offices of companies, organizations, and individual foreigners not engaged in business activities. If such activities are carried out (such as signing purchase and sale contracts, managing business operations...), the electricity selling price for business and services as stipulated in point b, Clause 5, Section III of this Circular shall apply.

- Applies to residential electricity consumption in collective housing areas of foreigners, private residences, and family homes of foreigners residing in Vietnam (foreigners directly sign electricity purchase contracts).

IV- IMPLEMENTATION

1- This Circular takes effect from October 1, 2002 and is uniformly implemented throughout the country. Previous regulations contrary to this Circular are hereby abolished.

2- The Vietnam Electricity Corporation shall direct electricity companies to coordinate with provincial finance and price departments, provincial industry departments of centrally governed cities and provinces to implement this Circular.

3- Industry departments shall coordinate with provincial finance and price departments to inspect the implementation of electricity selling prices, particularly residential electricity prices in rural areas. During the implementation process, if there are any difficulties, they should report to the Ministry of Industry and the Government Price Board for timely consideration and resolution.