Circular No. 09/2015/TT-BCT stipulates the procedures and formalities for approving the policy on buying and selling electricity with foreign countries.

CIRCULAR

Regulations on the procedures and formalities for approving the principle of purchasing and selling electricity with foreign countries with foreign countriesi

________________________

Pursuant to Decree No. 95/2012/NĐ-CP dated November 12, 2012, of the Government, detailing the functions, tasks, powers, and organizational structure of the Ministry of Industry and Trade;

Based on the Electricity Law dated December 3, 2004, and the Law Amending and Supplementing Certain Provisions of the Electricity Law dated November 20, 2012;

Based on Decree No. 137/2013/NĐ-CP dated October 21, 2013, issued by the Government, detailing the implementation of certain provisions of the Electricity Law and the Law Amending and Supplementing Certain Provisions of the Electricity Law;

At the proposal of the Director of the Electricity Regulatory Authority,

The Minister of Industry and Trade issues this Circular to regulate the procedures and formalities for approving the principle of purchasing and selling electricity with foreign countries.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

1. This Circular stipulates the application dossier and the procedures for assessing and approving the principle of purchasing and selling electricity with foreign countries for each export-import electricity project.

2. The case of directly purchasing electricity from foreign countries by electricity consumers in border areas as prescribed in Clause 2, Article 22 of Decree No. 137/2013/NĐ-CP dated October 21, 2013 of the Government detailing certain provisions of the Electricity Law and the Law Amending and Supplementing Certain Provisions of the Electricity Law is not within the scope of regulation of this Circular.

Article 2. Applicability

This Circular applies to the following entities:

1. Vietnam Electricity Corporation.

2. Electricity units that have been granted licenses to operate in the field of export-import electricity.

Article 3. General Requirements

1. Purchasing and selling electricity with foreign countries for each export-import electricity project must be approved by the competent authority before implementation.

2. The plan for purchasing and selling electricity with foreign countries of the export-import electricity project must be consistent with the approved Power Development Plan or Regional Grid Development Plan serving interconnection purposes of both countries, which has been approved or adjusted and supplemented by the competent authority; ensuring security and safety of power supply for the national power system as well as local power supply.

3. In cases where the purchase and sale of electricity with foreign countries involves the use of another grid management unit's power grid to carry out such activities, the Electricity Unit must reach a written agreement with that grid management unit.

Chapter II

PROCEDURES FOR ASSESSING AND APPROVING THE PRINCIPLE OF PURCHASING AND SELLING ELECTRICITY WITH FOREIGN COUNTRIES

Article 4. Documentation for Approval of the Purchase and Sale of Electricity with Foreign Countries

1. The application dossier for approving the principle of purchasing and selling electricity with foreign countries for the project includes:

a) A proposal requesting approval of the principle of purchasing and selling electricity with foreign countries;

b) A copy of the request for electricity purchase or approval for electricity sale from the foreign side;

c) A copy of the agreement document of another grid management unit as prescribed in Clause 3, Article 3 of this Circular;

d) The proposed plan for purchasing and selling electricity with foreign countries of the export-import electricity project including the following contents:

- A brief description of the current state of the interconnection power grid in the connection area of both countries;

- The expected electricity demand (capacity, energy, annual load curve, typical day load curve) of the export-import electricity project for each year during the period corresponding to the national Power Development Plan or the provincial Power Development Plan approved by the competent authority;

- The interconnection plan between the Vietnamese power system and the foreign power grid to supply electricity for the export-import electricity project including:

+ A copy of the Regional Grid Development Plan serving interconnection purposes of both countries, which has been approved or adjusted and supplemented by the competent authority;

+ The interconnection plan including the following contents: Capacity, energy; time schedule for purchasing or selling electricity; interconnected grid and connection point; metering installation location for purchasing or selling electricity; voltage level for purchasing and selling electricity; geographic map and interconnection diagram of the two countries' regional grids showing the electricity purchase and sale plan for the project;

- For export-import electricity projects connected at voltage levels of 110 kV or higher: Preliminary analysis and selection of technology and technical aspects of the interconnection plan; land clearance, resettlement plans (if applicable), impacts of the project on the environment, ecology, fire prevention, national defense (if applicable);

- Investment form, preliminary estimate of construction volume, total investment amount, project implementation time, capital mobilization plan according to the project's economic and social progress and phased investment if applicable by the Vietnamese side;

- Recommendations and organizational measures.

2. Number of dossiers: 05 (five) sets.

Article 5. Procedure for Reviewing and Approving Proposals on Electricity Purchase and Sale with Foreign Countries

1. The Vietnam Electricity Corporation shall be responsible for preparing and submitting directly to the Electricity Regulatory Authority the dossier prescribed in Article 4 of this Circular for review.

2. In case the dossier is not valid, the Electricity Regulatory Authority shall be responsible for issuing a written notice requesting the Vietnam Electricity Corporation to supplement the dossier within five working days from the date of receipt of the dossier.

3. Within ten working days from the date of receiving a valid dossier, the Electricity Regulatory Authority shall be responsible for:

a) Taking the lead in organizing the review of the dossier proposing approval of the proposal on electricity purchase and sale with foreign countries for export and import electricity projects;

b) Soliciting written opinions on the plan for electricity purchase and sale with foreign countries of export and import electricity projects from the following agencies and units:

 - Relevant ministries and sectors for export and import electricity projects connected at voltage levels of 220 kV or higher;

- Relevant power units for export and import electricity projects connected at voltage levels below 220 kV;

c) Requesting the Vietnam Electricity Corporation to provide explanations on the review opinions or organizing the Reviewing Agency to examine and evaluate the export and import electricity project on-site if necessary.

4. Within fifteen working days from the end of the period for soliciting written opinions from relevant ministries, sectors, and power units on the plan for electricity purchase and sale with foreign countries, the Electricity Regulatory Authority shall be responsible for completing the review report to submit to the Minister of Industry and Trade for consideration to:

a) Submit to the Prime Minister for approval of export and import electricity projects connected at voltage levels of 220 kV or higher;

b) Approve export and import electricity projects connected at voltage levels below 220 kV.

Chapter III

ORGANIZATION AND IMPLEMENTATION

Article 6. Implementation Organization

1. The Electricity Regulatory Authority shall be responsible for disseminating, guiding, and supervising the implementation of this Circular.

2. The Vietnam Electricity Corporation shall be responsible for directing subordinate units to implement this Circular.

Article 7. Effective Date

1. This Circular takes effect from July 10, 2015. Circular No. 11/2008/TT-BCT dated October 22, 2008, issued by the Minister of Industry and Trade guiding the procedures for electricity purchase and sale with foreign countries shall cease to be effective from the date this Circular takes effect.

2. During the implementation of this Circular, if there are any difficulties or new issues arising, relevant units shall be responsible for reporting to the Electricity Regulatory Authority for research, proposal, and submission to the Minister of Industry and Trade for amendment and supplementation of this Circular as appropriate./.