This Circular stipulates the method for determining and the procedures for approving the price of ancillary services of the power system, as well as the main contents of the contract for providing ancillary services. It applies to Vietnam Electricity Corporation, Electricity Trading and Dispatch Corporation, Power System Operation Unit and electricity market, and units providing ancillary services of the power system.
Đối tượng áp dụng
Vietnam Electricity Corporation, Electricity Trading and Dispatch Corporation, Power System Operation Unit and electricity market, units providing ancillary services of the power system.
Các điểm cốt lõi
- For power plants on the list of providers of rapid start-up ancillary services, ancillary services that must be continuously provided by power plants to ensure power supply capacity: The price of ancillary services is determined according to the principle of ensuring sufficient compensation for reasonable and legitimate costs for operations in the year.
- For frequency regulation ancillary services and voltage regulation ancillary services, the price of ancillary services is determined based on specific provisions of the Minister of Industry and Trade.
- The method for determining fixed prices, total fixed revenue, depreciation costs of fixed assets, fixed operating costs, interest payment costs, and profit is detailed.
- The procedure for establishing, reviewing, and approving the price of ancillary services is clearly defined, from November 25 of year N-1 to 25 days after receiving the application.
- The main contents of the contract for providing ancillary services include fixed cost components and variable cost components.
🌐 Tác động xã hội từ văn bản này
- Positive impact: Creates a clear legal basis for determining the price of ancillary services of the power system, helping to ensure fairness and transparency in the negotiation process.
- Negative impact: May impose a cost burden on units providing ancillary services if not managed effectively.
❓ Câu hỏi thường gặp
Who does this Circular apply to?
This Circular applies to Vietnam Electricity Corporation, Electricity Trading and Dispatch Corporation, Power System Operation Unit and electricity market, and units providing ancillary services of the power system.
What principle is used to determine the price of ancillary services?
The price of ancillary services is determined according to the principle of ensuring sufficient compensation for reasonable and legitimate costs for operations in the year of the unit providing ancillary services.
By what date must Vietnam Electricity Corporation submit the price of ancillary services for review by the competent state management agency for electricity at the Ministry of Industry and Trade?
Before November 25 of year N-1, Vietnam Electricity Corporation must submit for review by the competent state management agency for electricity at the Ministry of Industry and Trade.
What are the main contents of the contract for providing ancillary services?
The main contents of the contract for providing ancillary services include fixed cost components and variable cost components.
Toàn văn
|
MINISTRY OF INDUSTRY AND TRADE __________ |
SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom - Happiness _______________________ |
| Number: 11/2025/TT-BCT | Hanoi, on Example 5: Comrade Hoang Tuan Manh, aged 32, Senior Lieutenant, Company Commander, with 14 years and 02 months of service in the military (calculated as 14% seniority), due to unit merger and unable to be reassigned, was discharged to his place of origin from April 1, 2025. The monthly social insurance contribution wage of the month immediately preceding discharge (March 2025) for Comrade Manh is: 02 years 2025 |
CIRCULAR
||| Regulations on the method for determining and the procedures for approving the price of ancillary services for the power system ||| ancillary services for the power system; ||| main contents of ||| contracts for supplying||| ancillary services for the power system
__________________
Pursuant toElectricity Law||| dated November 30, 2024;
||| Pursuant to Decree No. 96/2022/NĐ-CP dated November 29, 2022 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Industry and Trade; Decree No. 105/2024/NĐ-CP dated August 1, 2024 amending and supplementing certain articles of Decree No. 96/2022/NĐ-CP and Decree No. 26/2018/NĐ-CP dated February 28, 2018 of the Government on the Charter of Organization and Operation of the Vietnam Electricity Corporation;
At the proposal of the Director of the Electricity Regulatory Authority;
||| The Minister of Industry and Trade issues the Circular ||| prescribes the method ||| for determining and the procedures for approving the price of ancillary services for the power system; ||| main contents of ||| contracts for supplying ancillary services for the power system.
PART I
GENERAL PROVISIONS
Article 1. Scope of Regulation and Applicability
1. This Circular provides detailed regulations on some provisions of the Electricity Law No. 61/2024/QH15, including:
a) Clause 5, Article 44 on the main contents of contracts for supplying ancillary services for the power system;
b) Point a, Clause 6, Article 51 on the method of establishment, dossier, procedures, and formalities for approving the price of ancillary services for the power system.
2. This Circular applies to the Vietnam Electricity Corporation, the Electricity Purchasing Company, the Power System Operation Unit and Market, and service providers of ancillary services for the power system.
Article 2. Interpretation of Terms
Strategic multi-purpose hydropower plant
1. Expected available capacity of the generating unitis the largest capacity expected to be achieved when the generating unit operates continuously and stably over a period agreed upon by both parties, consistent with the technical specifications of the generating unit.
2. Ancillary services||| are technical services necessary to maintain the stable and reliable operation of the national power system, including:
a) Frequency regulation services;
b) Fast start services;
c) Mandatory generation services including regular mandatory ancillary services provided by power plants to ensure power supply capability and mandatory ancillary services of gas turbine power plants according to orders from the Power System Operation Unit and Market to ensure power supply capability (hereinafter referred to as mandatory ancillary services of gas turbine power plants) when the plant operates in simple cycle or lacks the primary fuel and uses part or all of the secondary fuel.
d) Voltage regulation services;
đ) Black start services and other related technical services as prescribed by the Minister of Industry and Trade.
3. Ancillary service provider||| is a power generation unit owning one or more power plants that are mobilized to provide ancillary services according to the requirements of the Power System Operation Unit and Market.
4. Power System Operation Unit and Market||| is the entity performing the functions of the National Power System Dispatching Unit and the Market Operations Unit as stipulated in the Electricity Law (currently the Joint Stock Company for National Power System Operation and Market - NSMO).
5. Dispatch order||| is an order for commanding and controlling the operational mode of the power system in real time.
6. Limit on hours of forced shutdown due to unforeseen factors||| is the total number of hours required for shutdown in a year due to unforeseen factors, depending on the characteristics of each generating unit and power plant, including hours of shutdown due to accidents and hours of shutdown for unplanned maintenance or repair of equipment.
7. Year Nis the year for applying the price of ancillary services, from January 1 to December 31.
8. Year N-1||| is the year immediately preceding Year N.
9. Year N-2||| is the year immediately preceding Year N-1.
Chapter II
METHOD FOR DETERMINING THE PRICE, COSTS||| OF ANCILLARY SERVICES
Article 3. Principles for Determining the Price of Ancillary Services
1. For power plants listed to provide rapid start-up ancillary services and ancillary services that must be provided continuously by power plants to ensure electricity supply capacity: The price of ancillary services shall be determined according to the principle of ensuring sufficient compensation for reasonable and legitimate costs incurred by the ancillary service provider unit in a year, with a reasonable profit margin. The price of ancillary services does not include value-added tax, other types of taxes, and payments required under relevant laws. The price of ancillary services for this unit includes the following components:
a) Fixed price;
b) Variable price;
c) Start-up price;
d) Other expenses (if any).
2. For frequency regulation ancillary services, the pricing principles are as follows:
a) For power plants directly under the Vietnam Electricity Corporation as stipulated in the Method for Determining Power Generation Costs of Power Plants during the Period Before Joining the Competitive Electricity Market for Certain Types of Power Plants issued by the Minister of Industry and Trade, which are listed to provide frequency regulation ancillary services: Reasonable and legitimate costs incurred due to providing frequency regulation ancillary services shall be included in the annual costs of such power plants according to the provisions of the Method for Determining Power Generation Costs of Power Plants during the Period Before Joining the Competitive Electricity Market for Certain Types of Power Plants issued by the Minister of Industry and Trade;
b) For power plants directly participating in the competitive electricity market and listed to provide frequency regulation ancillary services: Revenue shall be calculated according to the Operation Regulations of the Competitive Wholesale Electricity Market issued by the Minister of Industry and Trade.
3. For voltage regulation ancillary services, ancillary services that must be provided continuously by gas turbine power plants, and black-start ancillary services, the pricing principles are as follows:
a) For power plants directly under the Vietnam Electricity Corporation as stipulated in the Method for Determining Power Generation Costs of Power Plants during the Period Before Joining the Competitive Electricity Market for Certain Types of Power Plants issued by the Minister of Industry and Trade, which are listed to provide voltage regulation ancillary services and black-start ancillary services: Reasonable and legitimate costs incurred due to providing voltage regulation ancillary services and black-start ancillary services shall be included in the annual costs of such power plants according to the provisions of the Method for Determining Power Generation Costs of Power Plants during the Period Before Joining the Competitive Electricity Market for Certain Types of Power Plants issued by the Minister of Industry and Trade;
b) For power plants listed to provide voltage regulation ancillary services, ancillary services that must be provided continuously by gas turbine power plants, and black-start ancillary services, which are not power plants directly under the Vietnam Electricity Corporation as stipulated in the Method for Determining Power Generation Costs of Power Plants during the Period Before Joining the Competitive Electricity Market for Certain Types of Power Plants issued by the Minister of Industry and Trade: The ancillary service provider unit is responsible for negotiating the price of ancillary services, conducting negotiations, and signing contracts for the provision of ancillary services with the Vietnam Electricity Corporation. The method for determining the cost of voltage regulation ancillary services, ancillary services that must be provided continuously by gas turbine power plants, and black-start ancillary services shall be carried out according to the provisions of Section 2 Chapter II of this Circular.
Section 1
METHOD FOR DETERMINING THE PRICE OF RAPID START-UP ANCILLARY SERVICES AND CONTINUOUSLY REQUIRED OPERATIONAL ANCILLARY SERVICES TO ENSURE ELECTRICITY SUPPLY CAPACITYOF POWER PLANTS
Article 4. Method for Determining Fixed Price
1. The fixed price (denoted as "P")cđ) of the Service Support Unit is determined according to the following formula:
Where:
|
gcđ: |
Fixed price (VND/(kW.month)); |
|
GTd,N: |
Total fixed revenue year N of the Service Support Unit (VND); |
|
|
The planned availability factor of the Service Support Unit for year N is determined in accordance with Clause 2 of this Article; |
|
"5. The pre-tax weighted average cost of capital i (%) is determined according to the formula below:kd,i: |
Expected available capacity of unit i in year N (kW); |
|
d |
Number of generating units of the Service Support Unit. |
The Service Support Unit is responsible for determining the expected available capacity of the unit in year N to negotiate and include it in the service support supply contract with Vietnam Electricity Corporation as the basis for determining the fixed price of the Service Support Unit.
2. The planned availability factor () of the Service Support Unit for year N is determined according to the following formula:
Where:
|
|
Number of hours for planned maintenance of unit i in year N (hours); |
|
Hnam : |
Number of hours in year N (hours); |
|
HDMCB,i: |
Limit on the number of hours of forced shutdown due to unforeseen factors of unit i in year N (hours), agreed upon by both parties; |
|
d |
Number of units of the Service Support Unit. |
Article 5. Method for Determining Total Fixed Revenue
Fixed revenue year N (Rcđ) of the Service Support Unit is determined according to the following formula:
GcđVLSCL(VND) from direct and indirect power plants participating in the electricity market;OM,N(VND) from direct and indirect power plants participating in the electricity market;Depreciation expense+ GDC+ NN |||
Where:
|
CSCL: |
Total depreciation expense of fixed assets year N of the Service Support Unit is determined according to Clause 1 of this Article (VND); |
|
COM,N: |
Total fixed operating cost year N is determined according to Clause 2 of this Article (VND); |
|
CDepreciation expense: |
Total interest payment and other fees for borrowing funds payable in year N for the investment in assets of the Service Support Unit (VND); |
|
GDC: |
Adjusted fixed revenue year N (VND); |
|
LNN |||: |
Prescribed profit year N (VND). |
1. Total depreciation expense of fixed assets (DSCL) of the Service Support Unit in year N is determined based on the value of existing fixed assets and those expected to be put into use in year N in accordance with regulations on management, use, and depreciation of fixed assets issued by the Ministry of Finance or authorized agencies. Total depreciation expense is the estimated depreciation value of fixed assets to be accrued in year N at the time when both parties negotiate the pricing plan for the approval of the service support price of the power plant providing service support.
In case there is a difference between the estimated depreciation value of fixed assets in the service support pricing plan for year N-1 and the actual implementation in year N-1, this difference will be considered and adjusted in the depreciation expense in the service support pricing plan for year N.
2. Total fixed operating cost year N (OOM,N) of the Service Support Unit is determined according to the following formula:
COM,NVLVLcđ(VND) from direct and indirect power plants participating in the electricity market;TL(VND) from direct and indirect power plants participating in the electricity market;MNĐMTBTK(VND) from direct and indirect power plants participating in the electricity market;signing and implementing Agreements
Where:
|
CKHcđ: |
Total fixed material cost year N (VND); |
|
CTL: |
Total fixed labor cost year N (VND); |
|
CMN: |
Total major repair cost year N (VND); |
|
CBTK: |
Total external service cost year N (VND); |
|
Csigning and implementing Agreements: |
Total other costs in cash year N (VND). |
a) Method for Determining Total Fixed Material Cost (MVLcđ)
Total fixed material cost year N (MVLcđ) of the Service Support Unit is determined based on the data audited independently in year N-2, excluding abnormal expenses in year N-2, adjusted annually based on the average Consumer Price Index (CPI) of the three years immediately preceding the pricing construction period announced by the central statistical agency, and supplemented with reasonable anticipated costs for year N that were not included or fully included in year N-2.
For the Service Support Unit owning a newly operational power plant participating in service support provision without an independent audit financial report for the first two years, the Service Support Unit is responsible for building, negotiating, and agreeing with Vietnam Electricity Corporation on the total fixed material cost year N (MVLcđ).
b) Method for Determining Total Fixed Labor Cost (LTL)
Total fixed labor cost year N (LTL) includes total labor cost and related costs such as electricity safety, health insurance, social insurance, unemployment insurance, and trade union fees, as stipulated by relevant laws.
If there is a difference between the estimated total labor cost and related costs such as electricity safety, health insurance, social insurance, unemployment insurance, and trade union fees in the service support pricing plan for year N-2 and the actual implementation in year N-2 according to the regulations of competent state authorities, both parties will consider adjusting these costs in the service support pricing plan for year N.
c) Method for Determining Total Major Repair Cost (RMN)
Total major repair cost (RMN) year N is agreed upon by both parties based on the approved value by the competent authority. If there is a difference between the estimated major repair cost in the service support pricing plan for year N-2 and the actual implementation in year N-2 due to changes in repair items, schedules, and contents, both parties will consider adjusting the major repair cost in the service support pricing plan for year N.
d) Method for Determining Total External Service Cost (SBTK)
Total external service cost of year N (SBTK) includes:
Costs paid to organizations and individuals outside the unit for providing the following services: electricity, water, software, telephone, telecommunications, books; expenses for purchasing and using technical documents; software maintenance costs; auditing consulting fees; security and protection service costs (if any); office rental and working premises costs; asset insurance costs;
Costs for other services provided under contracts for the management and operation of the Service Support Unit in year N.
Total external service cost of year N is determined based on the data audited independently in year N-2, excluding abnormal expenses in year N-2, adjusted annually based on the average CPI of the three years immediately preceding the pricing construction period announced by the central statistical agency, and supplemented with reasonable anticipated costs for year N that were not included or fully included in year N-2.
For Service Support Units owning newly commissioned power plants that participate in providing ancillary services and have not yet had financial statements audited by independent auditors, during the first two years, such Service Support Units shall be responsible for establishing, negotiating, and agreeing with Vietnam Electricity Corporation on the total cost of purchased ancillary services for year N.
d) The method for determining other monetary costs (Csigning and implementing Agreements)
Other monetary costs for year N (Csigning and implementing Agreements) shall be determined excluding taxes and fees.
Meal allowances and land rental fees for year N shall be determined according to regulations. Other monetary costs for year N (Csigning and implementing Agreements) shall exclude meal allowances and land rental fees based on data from the independent auditor's audit for year, excluding abnormal one-off costs in year, excluding abnormal expenses of year N-2, adjusted annually based on the average Consumer Price Index (CPI) of the three most recent years prior to the pricing establishment date published by the central statistical agency, and supplemented with reasonable anticipated expenses for yearN |||but not yet accounted for or fully accounted for in year N-2.
For Service Support Units owning newly commissioned power plants that participate in providing ancillary services and have not yet had financial statements audited by independent auditors, during the first two years, such Service Support Units shall be responsible for establishing, negotiating, and agreeing with Vietnam Electricity Corporation on other monetary costs for year N.
e) Exchange rate differential costs for year N shall be calculated based on foreign currency loan contracts, actual principal repayment plans for foreign currency loans, and the expected exchange rate payable for year N. In case there is a difference between the projected exchange rate differential in the ancillary service pricing plan for year N-2 and the actual implementation in year N-2, both parties may consider adjusting the exchange rate differential costs in the ancillary service pricing plan for year N.
For Service Support Units owning newly commissioned power plants that participate in providing ancillary services and have not yet had financial statements audited by independent auditors, during the first two years, such Service Support Units shall be responsible for establishing, negotiating, and agreeing with Vietnam Electricity Corporation on exchange rate differential costs for year N.
g) Where material costs, external service purchase costs, and other monetary costs for year N-1 have been audited and settled, both parties may agree to use these figures to calculate corresponding costs for year N.
3. Interest payment costs and fees for borrowing (CDepreciation expense): Based on loan agreements or legally binding documents between the project owner and lending financial institutions or banks.
4. Adjusted fixed revenue (GDC) of Service Support Units for year N shall be determined based on the difference between the actual availability factor and the planned availability factor in the pricing scheme due to changes in maintenance schedules and downtime for maintenance in year N-2 (excluding shortened downtime required by the system operator to ensure electricity supply efforts).
5. Profit for year N (LNN |||VL
LNN ||| = ROE x VCSH
Where:
|
ROE: |
Pre-tax return on equity for year N applicable to Service Support Units (%), not exceeding the pre-tax return rate specified in the Government Decree on the mechanism and timing for adjusting average retail electricity prices. |
|
VCSH: |
Equity capital of Service Support Units shall be determined based on the equity investment in the power plant as of December 31, year N-2, according to the audited financial statements (in currency). For Service Support Units owning newly commissioned power plants that participate in providing ancillary services, such Service Support Units shall be responsible for providing documentation regarding the formation of equity capital for the power plant participating in providing ancillary services. |
Article 6. Method for Determining Long-term Ancillary Service Prices
1. The long-term pricing cycle is equal to the term of the long-term ancillary service supply contract:
The long-term ancillary service price is determined annually from year N (the first year in the pricing cycle) until the end of the contract term.
2. Principles for Annual Price Determination:
a) Fixed prices, total fixed revenue, depreciation costs of fixed assets, interest payment costs, fixed material costs, labor costs, major repair costs, purchased service costs, other monetary costs, and profit for each year within the pricing cycle shall be determined according to similar provisions set forth in Article 5, Section 1, Chapter II of this Circular.
b) Material costs, purchased service costs, and other monetary costs (excluding meal allowances and land rental fees) for year N shall be determined according to similar provisions set forth in Clause 2 of Article 5, Section 1, Chapter II of this Circular. From year N+1 to the end of the contract term, these costs shall be adjusted annually based on the average Consumer Price Index (CPI) of the three most recent years prior to the pricing construction period announced by the central statistical agency starting from year N. Meal allowances and land rental fees shall be determined according to relevant laws.
3. Mechanism for Adjusting Annual Ancillary Service Prices
a) Before November 1st each year, upon having final settlement data and audit results of the previous year, if there are discrepancies between the planned ancillary service price scheme and actual implementation regarding major repair costs, labor costs, exchange rate differences, and availability factors in the previous year, both parties shall consider adjusting these discrepancies into the ancillary service price plan for the following year.
b) Before November 1st each year, if there are discrepancies in depreciation costs of fixed assets between the planned ancillary service price scheme and actual figures of that year, both parties shall consider adjusting these discrepancies into the ancillary service price plan for the following year.
c) Before November 1st each year, upon having audit data of the immediately preceding year for material costs, purchased service costs, and other monetary costs, both parties shall consider updating these costs into the ancillary service price plan for the following year.
Article 7. Method for Determining Variable Prices
1. The variable price of the ancillary service provider when providing ancillary services at the request of the system operator and electricity market is determined according to the following formula:Variable price of unit i operating at level j (VND/kWh);
Where:
|
|
Fuel consumption rate t of unit i at level j is determined according to the fuel consumption curve of the unit (kg/kWh or BTU/kWh); |
|
The Standing Office of the Council for International Cooperation on Non-Governmental Organizations (Vietnam Friendship Association) is the agency responsible for receiving registration dossiers, leading, and coordinating with member agencies of the Council to examine dossiers and return results of reviews of registration dossiers of foreign non-governmental organizations in Vietnam.i,j: |
nf |
|
GFuel price for power generation (VND/kg or VND/BTU);: |
vlp,i |
|
CAuxiliary material cost rate for producing 1 kWh of electricity by unit i (VND/kWh);: |
Unit i of the ancillary service provider; |
|
× (n − n |
Energy consumed for energy storage (kWh); |
|
Att: |
Retail electricity price corresponding to peak, off-peak, and normal hours for production sectors by voltage level (VND/kWh); |
|
Gsx: |
CSPK |
|
CCost of purchasing reactive power capacity (VND/kWh).: |
2. The ancillary service provider is responsible for establishing the fuel consumption curve of the unit and auxiliary material cost rates based on production volume for electricity generation to negotiate and include in the ancillary service supply contract with Vietnam Electricity Corporation, serving as the basis for determining the variable prices of units. In necessary cases, the application of the curve and rates of year N-1 for year N is allowed. |
2. The service support provider shall be responsible for establishing the specific fuel consumption curve of the power unit and the material cost rate per unit of electricity production used for electricity generation to negotiate and include in the service support supply contract with Vietnam Electricity Corporation as the basis for determining the variable price of the power units. In cases where necessary, it is permitted to apply the specific curve and rate from year N-1 for year N.
Article 8. Method for Determining the Starting Price
1. The starting price ( ) of the unit is determined for each start-up of the unit under each start-up mode, according to the following formula:
Where:
|
|
The starting price of unit i under start-up mode j (VND) |
|
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The fuel consumption quota used to start up unit i under start-up mode j (kg or BTU); |
|
Gnlkđ: |
The fuel price used for starting up the unit (VND/kg or VND/BTU); |
|
|
The electricity consumption quota used to start up unit i under start-up mode j (kWh); |
|
gkđ: |
The price of unit electricity purchased from the power system to start up the unit, determined according to the current retail electricity tariff schedule (average weekly price per hour) for production customers at the self-use voltage level of the unit (VND/kWh); |
|
|
The auxiliary fuel consumption quota used to start up unit i under start-up mode j for coal-fired power plants (kg); |
|
gnlp: |
The auxiliary fuel price used for starting up the unit for coal-fired power plants (VND/kg); |
|
|
The cost of auxiliary materials used to start up unit i under start-up mode j for coal-fired power plants (VND); |
|
j: |
Start-up mode of the unit (hot, warm, or cold); |
|
× (n − n |
Unit i of the Ancillary Service Provider. |
2. The Ancillary Service Provider is responsible for establishing the fuel consumption quotas, auxiliary material costs, and self-used electricity consumption quotas for starting up hot, warm, and cold units for each unit to negotiate and include in the ancillary service supply contract with Vietnam Electricity Corporation, serving as the basis for determining the starting prices of the units. In necessary cases, the quota of year N-1 may be applied for year N.
Section 2
METHOD FOR DETERMINING THE COST OF BLACK START ANCILLARY SERVICES, VOLTAGE REGULATION ANCILLARY SERVICES, AND MUST RUN ANCILLARY SERVICES OF GAS TURBINE POWER PLANTSBLACK, SERVICE SUPPORT FOR ELECTRICITY VOLTAGE REGULATION AND SERVICE SUPPORTOPERATING PENALTIES OF GAS TURBINE POWER PLANT
Article 9. Method for Determining the Cost of Black Start
1. For thermal power plants:
The total black start cost (Gk,i,j) of the Ancillary Service Provider is determined as follows:
a) The black start cost () for each start-up of the unit under each start-up mode is determined according to the following formula:
Where:
|
|
The black start cost of unit i under start-up mode j for start-up l (VND); |
|
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The fuel consumption quota used for black start of unit i under start-up mode j (kg or BTU); |
|
Gnlkđ: |
The fuel price used for black start of the unit (VND/kg or VND/BTU); |
|
|
The auxiliary fuel consumption quota used for black start of unit i under start-up mode j (kg); |
|
gnlp: |
The auxiliary fuel price used for black start of the unit (VND/kg); |
|
|
The cost of auxiliary materials used for black start of unit i under start-up mode j (VND); |
|
j: |
Start-up mode of the unit (hot, warm, or cold); |
|
× (n − n |
Energy consumed for energy storage (kWh); |
|
Face value of the bond |
Total number of black starts; |
|
l: |
Black start l. |
b) The black start maintenance cost (Cdt) includes the cost of black start rehearsal as stipulated in the National Black Start and System Restoration Regulations issued by the Ministry of Industry and Trade, and the cost of maintaining equipment for black start (if any).
2. For hydropower plants:
a) For power plants directly under Vietnam Electricity Corporation as provided in the Method for Determining Power Generation Costs of Power Plants in the Non-Market Competition Stage for Certain Types of Power Plants issued by the Minister of Industry and Trade: Reasonable and legitimate costs incurred due to providing black start ancillary services are included in the annual costs of strategic multi-purpose hydropower plants according to the Method for Determining Power Generation Costs of Power Plants in the Non-Market Competition Stage for Certain Types of Power Plants issued by the Minister of Industry and Trade;
b) For power plants not directly under Vietnam Electricity Corporation as provided in the Method for Determining Power Generation Costs of Power Plants in the Non-Market Competition Stage for Certain Types of Power Plants issued by the Minister of Industry and Trade: The total black start cost (Gk,i,j) of the Ancillary Service Provider is determined by the black start maintenance cost (Cdt) as stipulated in point b, Clause 1 of this Article.
3. The payment period for the black start cost shall be agreed upon and unified in the Black Start Ancillary Service Supply Contract.
Article 10. Method for determining the cost of reactive power service to adjust voltage
1. The total cost of reactive power service to adjust voltage shall be determined by the make-up running costs of power plants providing auxiliary services during the time when units are mobilized for make-up running (R), as follows:cbThe amount that the Buyer must pay to the Seller for the quantity of electricity received for make-up running (in dong);
Where:
|
Rcb: |
The total number of days in the month; |
|
D: |
The transaction day on which the quantity of electricity received for make-up running; |
|
d: |
The quantity of electricity received for make-up running shall be determined according to the list of quantities of electricity received for make-up running issued by the Dispatching Unit (in kWh); |
|
Acb: |
The retail price of electricity corresponding to peak, off-peak, and normal hours for production sectors supplied at the voltage level for make-up running, as prescribed by competent state agencies (in dong/kWh); |
|
Gsx: |
Maintenance costs for make-up running equipment (if any). |
|
Cbd: |
2. The payment period for make-up running costs to adjust voltage shall be agreed upon by both parties in the Contract for Supply of Reactive Power Auxiliary Services. |
Article 11. Method for determining the cost of reactive power service for forced operation of gas turbine power plants
1. The cost of reactive power service for forced operation of gas turbine power plants shall be paid for fuel costs, operating costs, and maintenance costs of the forced operation equipment in the Contract for Supply of Reactive Power Auxiliary Services. Fixed costs (or capacity fees) and other costs shall be agreed upon by both parties to ensure they are not double-counted in accordance with the law.
2. The payment period for the cost of reactive power service for forced operation of gas turbine power plants shall be agreed upon by both parties in the Contract for Supply of Reactive Power Auxiliary Services.
PROCEDURE FOR ESTABLISHING, REVIEWING AND APPROVING THE PRICE OF AUXILIARY SERVICES
Chapter III
PROCEDURE FOR ESTABLISHMENT, REVIEW, APPROVAL
PRICE OF SERVICE SUPPORT
Article 12. Procedure for establishing, reviewing and approving the price of auxiliary services
1. Before November 25 of year N-1, the Vietnam Electricity Corporation shall be responsible for submitting to the State management agency under the Ministry of Industry and Trade for review the price of auxiliary services for rapid start-up and continuous forced operation of power plants to ensure the supply capability for year N (for annual contracts) or each year within the contract period (for long-term contracts) to ensure the supply capability of auxiliary service providers in the power system as stipulated in Articles 4, 5, 6, 7, and 8 of this Circular.
2. The State management agency under the Ministry of Industry and Trade shall be responsible for checking the validity of the dossier and issuing a document requesting the Buyer and Seller to supplement missing documents as required. The Vietnam Electricity Corporation and the auxiliary service provider in the power system shall be responsible for completing and supplementing the dossier within five working days from the date of receipt of the request from the State management agency under the Ministry of Industry and Trade.
3. Within twenty-five days from the date of receipt of the valid application for review of the price of auxiliary services, the State management agency under the Ministry of Industry and Trade shall be responsible for reviewing the price of auxiliary services as stipulated in Clause 1 of this Article and submitting to the Minister of Industry and Trade for approval of the price of auxiliary services for year N for rapid start-up and continuous forced operation of power plants to ensure the supply capability.
Article 13. Documents for Approval of Service Support Prices
The documents submitted to the State Management Agency under the Ministry of Industry and Trade for review and then to the Minister of Industry and Trade for approval of the prices of standby rapid start-up services and continuous power generation services of power plants to ensure electricity supply capacity shall include the following contents:
1. Request for approval of service support prices;
2. Explanation and calculation of service support prices, including the following main contents:
a) Report on the implementation of economic and technical indicators of power plants up to September 30 and estimated implementation until December 31 of year N-1, including:
Report on electricity production and consumption volume, average fuel consumption rate implemented in year N-1;
Report on business results: Revenue, costs of the service support system provider unit implemented up to September 30 and estimated revenue, costs, and profit of the power plant until December 31 of year N-1.
b) Explanation and calculation of service support prices for year N, including:
Explanation and detailed plan table for business operations including: depreciation cost components, interest payment costs, wage costs, auxiliary material costs, major repair costs, purchased service costs, other monetary costs, drying costs, exchange rate differences, standard profit margin to determine the fixed costs of the power plant, fixed price of year N of the power plant.
c) Attached documents include:
Consolidated financial report of year N-2, production cost report by each factor of electricity business in year N-2 audited by an independent auditing agency (if available);
Major repair plan in year N of the units of the service support provider;
Registration of expected available capacity in year N of the power generation unit and the service support provider unit;
Fuel consumption curve of the units of the service support provider;
Auxiliary material usage standards for electricity production of the service support provider;
Fuel and electricity consumption standards for starting up units according to different startup modes;
Electricity consumption standards for drying units when on standby;
Expected fuel and material prices in year N for electricity production and regular maintenance.
3. The service support price documents shall be prepared in paper form or in data message form with equivalent legal value as stipulated by law. Vietnam Electricity Corporation has the responsibility to send one set of paper documents or one set of data message documents to the State Management Agency under the Ministry of Industry and Trade.
Chapter IV
MAIN CONTENTS OF THE SERVICE SUPPORT CONTRACT
Article 14. Main Contents of the Service Support Contract
1. The main contents of the service support contract specified in the Appendix issued together with this Circular serve as the basis for the Buyer and Seller to negotiate and sign the contract. The Buyer and Seller may agree to modify and supplement the main contents and add other terms in the service support contract in accordance with Vietnamese laws.
2. The language of the contract is Vietnamese. The Buyer and Seller may agree to supplement the contract using English.
Chapter V
IMPLEMENTATION
Article 15. Implementation Organization
1. Responsibilities of the State Management Agency under the Ministry of Industry and Trade:
a) Review and submit to the Minister of Industry and Trade for approval of the service support prices of power plants providing rapid start-up services and continuous power generation services to ensure electricity supply capacity;
b) Guide and inspect the implementation of this Circular.
a) Compiling the list of power plants providing ancillary services according to the transmission system regulations and the national black start and system recovery regulations issued by the Ministry of Industry and Trade;
a) Negotiate and agree on service support prices with the service support provider unit based on the list of power plants providing service support published according to the Regulation on System Operation, Operation, Manipulation, Fault Handling, Black Start, and System Restoration issued by the Minister of Industry and Trade, and submit to the State Management Agency under the Ministry of Industry and Trade for review of the agreed service support prices with the service support provider unit.
b) Negotiate prices, costs, and sign contracts for service support provision with the service support provider unit.
3. The rapid start-up service support provider unit, continuous power generation service support provider unit to ensure electricity supply capacity, frequency adjustment service support, voltage adjustment service support, black start service support shall have the responsibilities:
a) Negotiate and sign service support provision contracts;
b) Provide complete information; ensure the accuracy, reasonableness, and legality of the data and documents provided to related units and agencies during the negotiation of prices, costs, and service support provision contracts.
Article 16. Effective Date
1. This Circular takes effect from February 1, 2025.
2. Repeal Circular No. 21/2015/TT-BCT dated June 23, 2015, issued by the Minister of Industry and Trade on the method of determining system service support prices, procedures for checking system service support provision contracts, and Circular No. 46/2018/TT-BCT dated November 15, 2018, issued by the Minister of Industry and Trade amending and supplementing some articles of Circular No. 21/2015/TT-BCT dated June 23, 2015, issued by the Minister of Industry and Trade on the method of determining system service support prices, procedures for checking system service support provision contracts.
3. Repeal Article 8 of Circular No. 12/2024/TT-BCT dated August 1, 2024, issued by the Minister of Industry and Trade amending and supplementing some Circulars of the Minister of Industry and Trade related to national power system operation and dispatching and electricity market.
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Place of Receipt: - President's Office; - National Assembly's Office; - Prime Minister, Deputy Prime Ministers; - Supreme People's Procuracy, Supreme People's Court; - State Audit Agency; - To be filed: VT, DTDL. |
Signed. THE MINISTER DEPUTY MINISTER (Signed) Clause 3. During the implementation process, if any issues arise, organizations and individuals are responsible for reflecting them to the Ministry of Industry and Trade for guidance within their authority or for review and supplementation as appropriate./. |
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