Circular No. 10/2015/TT-BCT stipulates the procedures and conditions for issuing and revoking power operation licenses and the validity period of such licenses.

CIRCULAR

Regulations on procedures for issuing and revoking and the validity period of the electricity business license.specialized agency under the People's Committee of the province/city.

_________________________

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;

Pursuant to 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 shall issue a Circular to regulate the procedures for issuing and revoking the electricity business license and its validity period.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular stipulates the procedures for issuing and revoking the electricity business license; its validity period and format.

Article 2. Applicability

This Circular applies to organizations and individuals participating in the following electricity business areas:

1. Specialized consulting services in electricity, including:

a) Consulting on national power development planning; consulting on provincial and centrally-administered city power development planning and hydropower planning;

b) Consulting on investment construction of power plant projects; consulting on investment construction of transmission lines and transformer substations;

c) Consulting on construction supervision of power plant projects; consulting on construction supervision of transmission lines and transformer substations.

2. Power generation.

3. Transmission of electricity.

4. Distribution of electricity.

5. Wholesale of electricity.

6. Retail of electricity.

7. Importing and exporting electricity.

Article 3. Cases Exempted from License for Electricity Business Activities

1. Power generation for self-use without selling electricity to other organizations or individuals.

2. Generating electricity with installed capacity under 50 kW to sell electricity to other organizations and individuals.

3. Operating electricity in rural, mountainous, and island areas by purchasing electricity from the distribution grid with a capacity less than 50 kVA to directly supply electricity to end-users in these areas.

4. System dispatching of national electricity and market operation of electricity trading.

Article 4. Principles for Issuing Electricity Business Licenses

1. An electricity business license shall only be issued to organizations and individuals who meet all conditions specified for each area in Decree No. 137/2013/ND-CP dated October 21, 2013, detailing certain provisions of the Electricity Law and the Law Amending and Supplementing Certain Provisions of the Electricity Law, and comply with the regulations set forth in this Circular.

2. An electricity business license shall be issued to organizations and individuals to carry out one or more of the following electricity business areas: specialized power consulting, power transmission, power distribution, wholesale electricity sales, retail electricity sales, and importing and exporting electricity.

3. Prior to the competitive retail electricity market phase, an electricity business license for the retail electricity business area shall be issued concurrently with the power distribution business area.

4. A power generation license shall be issued to organizations to conduct power generation activities for each power plant.

Article 5. Principles for Revoking Electricity Business Licenses

1. The Power Generation Business License shall be revoked in the following cases:

a) The power generation unit violates Article 37 of the Electricity Law;

b) The power generation unit requests to cease operations or transfer the licensed activities to another unit;

c) When there is a request from a competent state agency due to violations of relevant laws by the power unit.

2. An electricity business license shall be revoked according to the specific business area and scope of operation.

3. The licensing authority has the right to revoke the Power Generation Business License within its licensing jurisdiction.

Article 6. Validity Period of Electricity Business Licenses

The validity period of an electricity business license varies depending on the scope of operation, type of power project, registration period, capability, and professional qualifications of the operating entity but shall not exceed the maximum period specified in the Table below:

Article 7. Scope of Operation of Electricity Business Licenses

1. A specialized power consulting license has a nationwide scope of operation.

2. A power generation license has a scope of operation for each power plant.

3. A power transmission and distribution license has a scope of operation within the specific power grid management and operation area.

4. A wholesale and retail electricity sales license has a scope of operation within a specific administrative boundary.

5. An importing and exporting electricity license has a scope of operation within the specific area of electricity delivery and receipt points.

Article 8. Fees for examination and licensing fees for power operation permits

1. Organizations and individuals granted power operation permits must pay the examination fee and licensing fee for power operation permits in accordance with the provisions of the law.

2. The agency issuing power operation permits may use the examination fee for power operation permits to serve the work of examining, issuing permits, inspecting, and managing the use of power operation permits. The collection, payment, and use of the examination fee and licensing fee for power operation permits shall be carried out in accordance with the provisions of the law.

Chapter II

APPLICATION DOCUMENTS FOR GRANTING AN ELECTRICITY BUSINESS LICENSE

Article 9. Documents for requesting issuance of power consulting specialty permits

1. A request for granting a power activity license according to Model 01 stipulated in the Appendix issued together with this Circular.

2. A copy of the Business Registration Certificate, Decision on Establishment, or Certificate of Establishment of the organization requesting the license.

3. A list of key management staff and main consulting experts according to Model 7a prescribed in the Appendix issued together with this Circular; Certified copies of graduation certificates, professional certificates, and signed labor contracts of persons listed in the list with the consulting organization.

4. A list of projects of similar scale that the consulting organization or main consulting experts have implemented.

5. A list of equipment, technical means, and application software serving the consulting work of the organization ensuring adequacy for consulting activities.

6. In case of changes in the name or headquarters address of the entity granted the permit, the application file shall only include the contents prescribed in Clause 1 and Clause 2 of this Article.

Article 10. Documents for requesting issuance of power generation permits

1. A request for granting a power activity license according to Model 01 stipulated in the Appendix issued together with this Circular.

2. A copy of the Business Registration Certificate of the organization requesting the license.

3. A list of key technical managers and shift leaders of power plants according to Model 7b in the Appendix issued together with this Circular; Certified copies of graduation certificates and dispatch control authorization certificates issued to persons listed in the list according to the National Power System Dispatch Procedures issued by the Ministry of Industry and Trade.

4. A certified copy of the Decision approving the investment project of the power plant by the competent authority.

5. A certified copy of the Decision approving the Environmental Impact Assessment Report or the Confirmation Document of the Environmental Protection Plan of the investment power plant project by the competent authority.

6. A certified copy of the Power Purchase Agreement.

7. A list of equipment with strict safety requirements and the commitment of the investor to fully comply with the legal regulations on the use of such equipment.

8. A certified copy of fire prevention and firefighting assurance documents in accordance with the regulations.

9. A certified copy of the Decision approving the Reservoir Operation Procedure by the competent authority (for hydropower plants).

10. A certified copy of the final acceptance record of the information technology and telecommunications infrastructure system; the acceptance record of the completion of signal connection with the SCADA/EMS, SCADA/DMS systems of the dispatch authority with control rights for power system operation and electricity market operations in accordance with the regulations.

11. A certified copy of the acceptance record of the hydropower dam, energy transmission line; the Safety Dam Registration submitted to the competent authority; the plan to ensure dam safety and downstream safety area in accordance with the regulations; the inspection report results (for dams that have reached the inspection period).

12. A certified copy of the final acceptance record or confirmation document ensuring commercial operation conditions for each unit.

13. A certified copy of the Coordination Operation Procedure of the power plant with the System Dispatch Unit.

14. In case of changes in the name or headquarters address of the entity granted the permit, the application file shall only include the contents prescribed in Clause 1 and Clause 2 of this Article.

Article 11. Documents for Application for Issuance of Electricity Transmission and Distribution License

1. A request for granting a power activity license according to Model 01 stipulated in the Appendix issued together with this Circular.

2. A copy of the Business Registration Certificate, Decision on Establishment, or Certificate of Establishment of the organization requesting the license.

3. A list of technical managers and shift leaders according to Model 7b stipulated in the Appendix attached hereto; certified copies of graduation certificates and operation control authorization certificates issued to individuals listed in the list, pursuant to the National Power System Dispatching Procedures issued by the Ministry of Industry and Trade.

4. A list of main power grid projects managed or about to be taken over by the organization in accordance with the decision of the competent authority.

5. Certified copies of fire prevention and firefighting compliance documents as prescribed.

6. Certified copies of Interconnection Agreements or Interconnection Contracts.

7. Map of the power grid boundary and operational scope.

8. In case of change in the name or address of the headquarters of the licensed entity, the application shall only include contents specified in Clause 1 and Clause 2 of this Article.

Article 12. Documents for Application for Issuance of Wholesale and Retail Electricity Licenses

1. A request for granting a power activity license according to Model 01 stipulated in the Appendix issued together with this Circular.

2. Copies of the Enterprise Registration Certificate, Establishment Decision, or Establishment Certificate of the organization requesting the issuance of a license.

3. A list of management staff according to Model 7b stipulated in the Appendix attached hereto; certified copies of graduation certificates or graduation certification documents of individuals listed in the list.

4. In case of change in the name or address of the headquarters of the licensed entity, the application shall only include contents specified in Clause 1 and Clause 2 of this Article.

Article 13. Documents for Application for Issuance of Import and Export Electricity Licenses

1. A request for issuance of electricity business license according to Model 01 stipulated in the Appendix attached hereto.

2. A copy of the Business Registration Certificate of the organization requesting the license.

3. Certified copies of the Decision approving the policy of buying and selling electricity with foreign countries and the approved interconnection plan for buying and selling electricity with foreign countries.

4. Certified copies of export and import electricity contracts or certified copies of requests for purchasing electricity or approval for selling electricity from the foreign side.

5. Schematic diagrams of the related power grid concerning the purchase and sale points and procedures for coordinated operation and handling of power grid incidents between the buyer and seller (if applicable).

6. Certified copies of documents implementing fire prevention and firefighting regulations at transformer stations as prescribed.

7. In case of change in the name or address of the headquarters of the licensed entity, the application shall only include contents specified in Clause 1 and Clause 2 of this Article.

Chapter III

PROCEDURE FOR ISSUANCE AND REVOCATION OF ELECTRICITY BUSINESS LICENSES ELECTRICITY BUSINESS LICENSES

Article 14. Procedure for Issuance of Electricity Business Licenses

1. Organizations and individuals applying for issuance of electricity business licenses shall submit one set of documents as prescribed in Chapter II of this Circular to the licensing authority and bear responsibility for the accuracy and truthfulness of the application documents. The documents may be submitted directly, through postal service, or online via the licensing authority's electronic information website (if available).

2. Within three working days from the date of receipt of the application for issuance of electricity business licenses, the licensing authority shall notify in writing the organizations and individuals applying for issuance of the license if the application is incomplete or invalid. The notification must clearly state the reasons and request supplementation or modification of data, documents, and relevant information to complete the application.

3. Within five working days from the date of receipt of the request for supplementation or modification of data, documents, and relevant information from the licensing authority, the organizations and individuals applying for issuance of the license must supplement or modify the data, documents, and relevant information and respond in writing.

If within sixty days from the date the licensing authority issues a written request for supplementation or modification, the organizations and individuals applying for issuance of the license fail to supplement the application or respond in writing, the licensing authority has the right to return the application for issuance of the electricity business license.

4. Within fifteen working days from the date of receipt of complete and valid documents, the licensing authority shall be responsible for reviewing the documents, inspecting on-site (if necessary), and issuing the electricity business license.

5. During the review process and actual inspection, if the licensing authority finds that the organizations and individuals do not meet the required conditions, it has the right to require them to supplement the conditions or refuse to issue the license in writing, stating the reasons.

6. The power business license issued includes three original copies: one copy handed over to the unit granted the license, two copies retained at the agency issuing the power business license.

7. The procedure for issuance of electricity business licenses shall be applied as follows:

a) For applications submitted directly or through postal service: Follow the provisions of Clauses 2, 3, 4, 5, and 6 of this Article;

b) For applications submitted online via the Vietnam Electricity Regulatory Authority's electronic information website: Follow the guidance of the Vietnam Electricity Regulatory Authority;

c) Provincial People's Committees and Municipalities under the Central Government shall guide the issuance of licenses within their jurisdiction through online procedures (if applicable) in accordance with this Circular.

8. Sixty days before the expiration of the electricity business license, the power company holding the license wishing to continue operations must prepare an application for issuance of the electricity business license as prescribed in Clause 1 of this Article and follow the procedure for requesting issuance of the electricity business license as prescribed.

Article 15. Procedure for Revoking Power Business Operation Licenses

1. Procedure for Issuing Decisions to Revoke Power Business Operation Licenses

a) In cases where power business units violate Article 37 of the Electricity Law and the decision-making authority imposing penalties is the licensing authority for power business operations, the licensing authority for power business operations shall issue a decision to revoke the power business operation license simultaneously with the penalty decision.

b) In cases where power business units violate Article 37 of the Electricity Law and the decision-making authority imposing penalties is not the licensing authority for power business operations, the licensing authority for power business operations shall issue a decision to revoke the power business operation license within the time limit specified in the penalty decision. If the license is not revoked, the licensing authority for power business operations shall provide a written response (specifying the reasons) to the person issuing the penalty decision.

c) In cases where power business units request to cease operations or transfer the licensed activities to other organizations or individuals, within thirty working days from the date of receipt of the written request from the power business unit or the proposal from the competent authority and related documents, the licensing authority for power business operations shall issue a decision to revoke the power business operation license.

2. Within two working days from the date of issuance of the decision to revoke the power business operation license, the licensing authority for power business operations shall send the revocation decision to the power business unit whose license has been revoked and relevant agencies and units; publish information on the revocation of the license on the electronic information website of the licensing authority for power business operations.

3. In cases where the power business operation license is revoked in specific fields or scope of activities, the licensing authority for power business operations shall require the power business unit to follow the procedures and formalities for issuing a power business operation license in accordance with the revocation decision for each field or scope of activities.

4. In cases where power business units violate the provisions of Clause 7, Article 18 of this Circular, the licensing authority for power business operations has the right to issue a decision to revoke the power business operation license and publish information on the electronic information website of the licensing authority for power business operations.

Chapter IV

AUTHORITY TO ISSUE AND MANAGE USE OF LICENSES ELECTRICITY BUSINESS LICENSES

Article 16. Authority to Issue Power Business Operation Licenses

1. The Ministry of Industry and Trade issues Power Generation Business Licenses for the following sectors:

a) Power generation activities for large-scale power plants that are particularly important for economic and social development, national defense, and security, as approved by the Prime Minister;

b) Transmission of electricity;

c) Import and export of electricity.

2. The Electricity Regulatory Authority issues Power Generation Business Licenses for the following sectors:

a) Power generation activities for power plants with capacity of three megawatts or more, excluding those covered by Point a, Clause 1 of this Article;

b) Power distribution activities;

c) Wholesale electricity sales activities;

d) Retail electricity sales activities;

đ) Specialized electricity consulting services.

3. Provincial People's Committees, municipalities directly under the Central Government shall issue or authorize the Department of Industry and Trade to issue power business operation licenses for the following areas:

a) Power generation activities for power plants with capacity below 3 MW located in the locality;

b) Power distribution activities up to 35 kV voltage level in the locality;

c) Retail power sales activities up to 0.4 kV voltage level in the locality;

d) Specialized power consulting services, including:

- Consulting on investment and construction of power transmission lines and substations up to 35 kilovolts, registered as enterprises in localities.

- Supervision consulting on construction of power transmission lines and substations up to 35 kV voltage level, registered enterprises in the locality.

4. In cases where organizations or individuals apply for licenses for multiple activities in the specialized electricity consulting sector, including at least one activity within the jurisdiction of the Electricity Regulatory Agency, the power business operation licenses for these activities shall be issued by the Electricity Regulatory Agency.

Article 17. Responsibilities of the Licensing Authority for Power Business Operations

1. Accepting, examining, inspecting, and managing applications for power business operation licenses. Guiding organizations and individuals applying for licenses to properly implement the contents, procedures, and formalities for applying for power business operation licenses as stipulated in this Circular.

2. Resolving complaints about power business licenses within its jurisdiction.

3. Inspecting and supervising the maintenance of conditions specified in the power business license.

4. Revoking power business operation licenses within its jurisdiction according to the procedures prescribed in Article 15 of this Circular.

5. Recommending competent authorities to handle violations by power units in accordance with the law.

Article 18. Responsibilities of power units licensed to operate in the electricity sector

1. Operate electricity in accordance with the contents specified in the license.

2. Apply for a license in cases where there are changes in name, head office address, type of operation, scope of operation, or duration of the license.

3. Maintaining the operational conditions registered and licensed throughout the period of operation.

4. Adhering to relevant legal regulations.

5. Pay all types of fees and charges related to the electricity operation license as prescribed by law.

6. Report to the licensing authority 60 days before ceasing electricity operations or transferring electricity operations.

7. Report to the licensing authority within 30 days from the date of change in the head office address specified in the electricity operation license.

8. Not lease, lend, or alter the contents of the electricity operation license.

9. Be subject to inspection, audit, and comply with decisions on handling issued by competent state agencies regarding the use of the license and registered operating conditions.

10. Before March 1st each year, report to the licensing authority on maintaining operating conditions in the licensed field of the previous year according to Forms 8a, 8b, 8c, and 8d stipulated in the Appendix attached to this Circular.

Chapter V

IMPLEMENTATION

Article 19. Implementation of inspection work

1. The Electricity Regulatory Authority shall be responsible for inspecting the implementation of this Circular throughout the country; resolving difficulties and proposing contents for reporting to the Ministry of Industry and Trade to amend and supplement this Circular.

2. The People's Committee of provinces and centrally governed cities shall inspect the implementation of this Circular within their jurisdiction; resolving difficulties and recommending the Ministry of Industry and Trade to amend and supplement this Circular.

Article 20. Responsibilities for implementation

1. The Electricity Regulatory Authority is the agency receiving and processing procedures for reviewing applications for electricity operation licenses and implementing the procedure for revoking electricity operation licenses within its licensing authority and that of the Ministry of Industry and Trade.

2. Departments of Industry and Trade are the agencies receiving and processing procedures for reviewing applications for electricity operation licenses and implementing the procedure for revoking electricity operation licenses within their licensing authority of provincial People's Committees and municipal People's Committees directly under the central government.

3. Units licensed to operate in the electricity sector have the responsibility to send copies of the issued electricity operation license to the state management agency in the local electricity sector for reporting within 30 days from the date of issuance of the license.

4. Before January 15th each year, Departments of Industry and Trade report to the Ministry of Industry and Trade, provincial People's Committees, and municipal People's Committees directly under the central government on the situation of issuing and revoking electricity operation licenses in the locality of the previous year.

Article 21. Effective Date

1. This Circular takes effect from July 12, 2015. Circular No. 25/2013/TT-BCT dated October 29, 2013, of the Minister of Industry and Trade prescribing the procedures and formalities for issuing, amending, supplementing, revoking, and validity period of electricity operation licenses, shall cease to be effective from the date this Circular takes effect.

2. Electricity operation licenses issued according to Circular No. 25/2013/TT-BCT dated October 29, 2013, of the Minister of Industry and Trade prescribing the procedures and formalities for issuing, amending, supplementing, revoking, and validity period of electricity operation licenses, and Decisions No. 32/2006/QD-BCN dated September 6, 2006, of the Minister of Industry promulgating regulations on conditions, procedures, and formalities for issuing, amending, supplementing, revoking, and managing the use of electricity operation licenses, Decision No. 15/2008/QD-BCT dated July 1, 2008, of the Minister of Industry and Trade amending and supplementing certain provisions of the regulations on conditions, procedures, and formalities for issuing, amending, supplementing, revoking, and managing the use of electricity operation licenses promulgated together with Decision No. 32/2006/QD-BCN dated September 6, 2006, of the Minister of Industry continue to be valid according to the content and validity period specified in the licenses.

3. During the implementation of this Circular, if there are any difficulties, relevant units shall have the responsibility to report to the Electricity Regulatory Authority for research, proposal, and reporting to the Ministry of Industry and Trade to amend and supplement this Circular appropriately./.