Circular No. 11/2008/TT-BCT guiding the procedures and formalities for electricity trading with foreign countries

CIRCULAR

Guidelines for the procedures and formalities of electricity purchase and sale with foreign countries

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Pursuant to Decree No. 189/2007/ND-CP dated December 27, 2007, issued by 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;

Pursuant to 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;

The Ministry of Industry and Trade guides the preparation of documents and procedures for electricity purchase and sale with foreign countries as follows:

I. SCOPE OF REGULATION AND APPLICABLE OBJECTS

1. This Circular provides guidelines for the preparation of documents and procedures for electricity purchase and sale with foreign countries for each export-import electricity project and applies to electricity units.

2. Customers using electricity in border areas who directly purchase electricity from abroad at a voltage level of 0.4kV without going through the national power grid and use it for household or business and production purposes with a capacity under 50kVA are not subject to this Circular.

II. CONTENTS OF THE APPLICATION DOCUMENT FOR APPROVAL OF ELECTRICITY PURCHASE AND SALE WITH FOREIGN COUNTRIES

Electricity purchase and sale with foreign countries must be approved in terms of policy. The plan for electricity purchase and sale with foreign countries must be consistent with the approved power development planning.

Documents for electricity purchase and sale with foreign countries include:

1. Application documents for approval of the policy on electricity purchase and sale with foreign countries at voltage levels of 110kV and above

a) The application for approval of the policy on electricity purchase and sale with foreign countries from the electricity unit.

b) Written request for electricity purchase or consent for electricity sale from the foreign side.

c) Plan for electricity purchase and sale with foreign countries (five copies), including the following contents:

- A brief description of the current state of the power grid in the area;

- Electricity demand (capacity, energy, annual load curve, typical day load curve) expected to be purchased or sold to foreign countries for each year during the period consistent with the national or local power development planning phase that has been approved;

- Scheme for connecting the Vietnamese power grid with the foreign power grid to be purchased or sold electricity:

+ Development plan for the power grid in the area already approved by the competent authority;

+ Connection scheme including: capacity, energy, time of expected electricity purchase and sale, connection point, metering equipment installation point, voltage level for electricity purchase and sale, showing the electricity purchase and sale scheme on maps and diagrams of the power grid in the area;

- Preliminary analysis and selection regarding technology, technical aspects, land clearance, resettlement if applicable, impacts of the project on the environment, ecology, fire prevention, security, defense;

Investment form, preliminary determination of construction volume, total investment cost, project implementation time, capital mobilization plan according to progress and economic-social efficiency of the project and phased investment if applicable from the Vietnamese side;

- Conclusions and recommendations for organizational implementation measures.

d) In case the electricity unit uses the power grid managed by another unit, there must be a written opinion from that unit.

2. Application documents for approval of the policy on electricity purchase and sale with foreign countries at voltage levels up to 35kV

a) The application for approval of the policy on electricity purchase and sale with foreign countries from the electricity unit.

b) Written request for electricity purchase or consent for electricity sale from the foreign side.

c) Plan for electricity purchase and sale with foreign countries (five copies), including the following contents:

- A brief description of the current state of the power grid in the area;

- Electricity demand (capacity, energy) expected to be purchased or sold to foreign countries for each year during the period consistent with the local power development planning phase that has been approved;

- Scheme for connecting the Vietnamese power grid with the foreign power grid to be purchased or sold electricity:

+ Development plan for the power grid in the area already approved by the competent authority;

+ Connection scheme including: capacity, energy, time of expected electricity purchase and sale, connection point, metering equipment installation point, voltage level for electricity purchase and sale, showing the electricity purchase and sale scheme on maps and diagrams of the power grid in the area.

- Preliminary determination of construction volume and investment cost from the Vietnamese side;

- Conclusions and recommendations for organizational implementation measures.

d) In case the electricity unit uses the power grid managed by another unit, there must be a written opinion from that unit.

III. PROCEDURES FOR REVIEW AND APPROVAL OF POLICIES ON ELECTRICITY PURCHASE AND SALE WITH FOREIGN COUNTRIES

1. For electricity purchase and sale with foreign countries at voltage levels of 110kV and above

a) The electricity unit submits the application documents for review of the policy on electricity purchase and sale with foreign countries to the Electricity Regulatory Authority for review.

b) Within five working days from the date of receipt of the documents, the Electricity Regulatory Authority must notify the electricity unit in writing about the validity of the application documents for electricity purchase and sale with foreign countries.

c) Within ten working days from the date of receipt of valid documents, the Electricity Regulatory Authority must organize the review and seek opinions from relevant ministries and sectors on the plan for electricity purchase and sale with foreign countries.

d) If necessary, the electricity unit must provide explanations or organize for the reviewing unit to examine and evaluate on-site.

đ) Within fifteen working days from the date of receipt of official written opinions from relevant ministries and sectors on the plan for electricity purchase and sale with foreign countries, the Electricity Regulatory Authority must complete the review report for submission to the Minister of Industry and Trade for consideration and submission to the Prime Minister for approval.

2. For electricity purchase and sale with foreign countries at voltage levels up to 35kV

a) The electricity unit submits the application documents for review of the policy on electricity purchase and sale with foreign countries to the Electricity Regulatory Authority for review.

b) Within five working days from the date of receipt of the documents, the Electricity Regulatory Authority must notify the electricity unit in writing about the validity of the application documents for electricity purchase and sale with foreign countries.

c) Within thirty working days from the date of receipt of valid documents, the Electricity Regulatory Authority must complete the review report and submit it to the Minister of Industry and Trade for consideration and approval.

IV. IMPLEMENTATION PROVISIONS

1. This Circular takes effect fifteen days after its publication in the Official Gazette.

2. The Director of the Ministry's Office, the Inspector General of the Ministry, the Heads of Departments and Bureaus under the Ministry, the Directors of Provincial Departments of Industry and Trade under central cities, the Heads of related agencies, and organizations and individuals participating in activities in the field of electricity import and export shall be responsible for implementing this Circular.

3. During the implementation process, if any difficulties arise, the relevant units shall reflect them to the Ministry of Industry and Trade for supplementation and amendment to ensure appropriateness./.