Decision No. 15/2008/QĐ-BCT on amending and supplementing certain provisions of the regulations on conditions, procedures, and formalities for issuing, amending, supplementing, revoking, and managing the use of power business licenses issued together with Decision No. 32/2006/QĐ-BCN dated September 6, 2006, of the Minister of Industry.

Pursuant to …;

Regarding the amendment and supplementation of certain provisions on conditions, procedures, and processes for issuing, amending, supplementing, revoking, and managing the use of power business licenses issued together with Decision No. 32/2006/QĐ-BCN dated September 6, 2006 of the Minister of Industry ngày 06 tháng 9 năm 2006 của Bộ trưởng Bộ Công nghiệp

THE MINISTER OF INDUSTRY AND TRADE

Pursuant to the Electricity Law dated December 3, 2004;

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 Decree No. 105/2005/NĐ-CP dated August 17, 2005 of the Government detailing and guiding the implementation of certain articles of the Electricity Law;

Pursuant to Decision No. 258/2005/QĐ-TTg dated October 19, 2005 of the Prime Minister regarding the establishment and functions, tasks, powers, and organizational structure of the Electricity Regulatory Authority under the Ministry of Industry;

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

DECISION:

Article 1. Amending and supplementing certain provisions of the Regulations on Conditions, Procedures, and Processes for Issuing, Amending, Supplementing, Revoking, and Managing the Use of Power Business Licenses issued together with Decision No. 32/2006/QĐ-BCN dated September 6, 2006 of the Minister of Industry as follows:

1. Amend Clause 1 of Article 3 as follows:

"1. The power business license shall be granted to organizations and individuals to carry out one or more of the following power business activities: transmission, distribution, wholesale electricity sales, retail electricity sales, import and export of electricity, and specialized consulting services in the power sector. The power generation business license shall be granted to organizations and individuals to carry out investment construction and power generation activities for each power plant project."

2. Amend Articles 8, Article 9, Article 10; Clause 3 of Article 16 and Appendix 3a:

Replace the phrases "Leading expert in major technical fields", "Leading consultant in major technical fields", "Leading consultant in major consulting fields", and "Leading consultant" with the phrase "Main consultant".

3. Supplement Clause 1 of Article 11 as follows:

"1. Possess a feasible power plant investment project consistent with the approved power development plan. Have equipment, technology, service facilities, workshops, and architectural works according to the approved technical design, constructed, installed, inspected, and accepted in accordance with current technical standards and regulations."

Có trang thiết bị công nghệ, phương tiện phục vụ, nhà xưởng, công trình kiến trúc theo đúng thiết kế kỹ thuật đã được duyệt, được xây dựng, lắp đặt, kiểm tra và nghiệm thu đạt tiêu chuẩn và quy phạm kỹ thuật hiện hành”.

4. Amend and supplement Article 15 as follows:

Article 15. Wholesale and Retail Electricity Sales Activities

Organizations and individuals registering for wholesale and retail electricity sales activities, in addition to the conditions stipulated in Article 7 of this Regulation, must also meet the following conditions:

1. The person directly managing the wholesale and retail electricity sales business must have a diploma or higher in economics, finance, or a related field and at least five years of work experience in the electricity trading business.

2. Organizations and individuals engaged in rural retail electricity sales must meet the condition that the person directly managing the retail electricity sales business must have been trained in economics, finance, or a related field and have at least two years of work experience in the electricity trading business."

5. Amending and supplementing Article 17 as follows:

"Article 17. Application Documents for Issuing, Amending, and Supplementing Power Generation Business Licenses

The power generation business license is issued in two stages to implement investment construction and commercial operation of the entire power plant. Specific documents for each stage are as follows:

1. Application documents for obtaining permission to implement investment projects for power plants and operate individual units commercially, including:

a) A formal request for issuance, amendment, or supplementation of the power business license (as per Appendix 1 attached to this Decision);

b) A certified copy of the legal status confirmation document of the organization or individual, along with an organizational chart and list of subordinate units and branches;

c) A certified copy of the decision approving the power plant investment project by the competent authority, accompanied by project documentation;

d) A certified copy of technical documents determining the installed capacity of each unit, the official connection plan of the power plant to the grid, and the operating mode of the power plant within the grid;

đ) A certified copy of the water resource usage permit (for hydropower plants). A certified copy of the water resource usage permit and fuel supply plan (for thermal power plants);

e) A certified copy of the environmental impact assessment report of the power plant investment project and a certified copy of the approval document for the environmental impact assessment report by the competent authority;

g) A certified copy of the most recent financial report.

2. Application documents for putting the entire power plant into commercial operation, including:

a) List of main electrical works of the power plant;

b) List of key management personnel such as directors, deputy directors, technical managers, and main consultants for managing and operating the power plant, accompanied by certified copies of graduation certificates or graduation certificates;

c) Documentation on training and labor utilization;

d) A certified copy of the long-term power purchase agreement (PPA) signed;

đ) A certified copy of the confirmation document ensuring compliance with strict safety requirements for equipment;

e) A certified copy of the environmental standard compliance certificate for the power generation project by the competent authority;

g) A certified copy of the fire prevention and firefighting compliance certificate issued by the competent authority;

h) Hydropower reservoir operation procedures approved by the competent authority (for hydropower plants);

i) A certified copy of the connection agreement or contract;

k) Procedures for coordinating the operation of the power plant with the System Operation Unit;

l) Certified copies of acceptance records for each part of the main electrical works of the power generation project, no-load and load test acceptance records for each unit, and full-load integrated acceptance records for each unit.

3. After completing the construction of the entire power plant, the power enterprise that has obtained the power generation business license must supplement a certified copy of the overall acceptance record for the power plant construction project."

6. Supplement Clause 11 of Article 18 as follows:

"11. For distribution enterprises with voltage levels up to 35kV, the application documents must include the following additional contents:

a) A certified copy of the power purchase agreement;

b) A certified copy of the connection agreement or contract;

c) Map of the distribution network boundary and operational scope."

7. Amend and supplement Article 23 as follows:

"Article 23. Competent Authority for Issuing Power Business Licenses

The authority to issue power business licenses is specified as follows:

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

a) Power generation activities for large power plants with significant economic and social importance, national defense, and security, which are included in the list approved by the competent authority;

b) Transmission of electricity;

c) Electricity import and export activities;

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

a) Power generation activities for power plants with capacity of 3MW or more and not falling under the provisions of point a, Clause 1, Article this;

b) Wholesale electricity sales activities;

c) Electricity distribution activities;

d) Retail electricity sales activities;

d) Specialized power consulting services, including the following areas:

- Consulting on national power development planning, local power development planning, and cascade hydropower planning for rivers;

- Consulting on investment and construction of power plants, consulting on investment and construction of transmission lines and substations;

- Consulting on supervision of construction of power plant projects, transmission line projects, and substation projects;

3. Provincial People's Committees directly or delegate the Department of Industry and Trade to issue power business licenses for the following fields:

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

b) Consulting on investment and construction of transmission lines and substations with voltage up to 35kV registered for business in the locality;

c) Consulting on supervision of construction of transmission line and substation projects with voltage up to 35kV registered for business in the locality;

d) Rural electricity distribution activities in the locality;

e) Rural retail electricity sales activities in the locality.”

Article 2. Attached to this Decision are model appendices for power business licenses for the following fields of activity:

1. Model appendix for power generation licenses from 3MW or more;

2. Model appendix for power generation licenses below 3MW;

3. Model appendix for power transmission licenses;

4. Model appendix for power distribution and retail licenses;

5. Model appendix for wholesale electricity sales licenses;

6. Model appendix for specialized power consulting licenses.

Article 3. This Decision takes effect fifteen days from the date of publication in the Official Gazette. Decree No. 09/2007/QĐ-BCN dated February 6, 2007, issued by the Minister of Industry amending and supplementing point a, Clause 2, Article 23 of the Regulations on Conditions, Procedures, and Formalities for Issuing, Amending, Supplementing, Revoking, and Managing the Use of Power Business Licenses promulgated together with Decree No. 32/2006/QĐ-BCN dated September 6, 2006, issued by the Minister of Industry, is hereby repealed.

Article 4. The Director of the Electricity Regulatory Authority, the Head of the Ministry’s Office, the Inspector General of the Ministry, Heads of Departments, Directors of Agencies under the Ministry, People's Committees of provinces and centrally governed cities, and organizations and individuals engaged in power activities are responsible for implementing this Decision./.