Circular No. 19/2013/TT-BCT on electricity sale prices and guidance on implementation

CIRCULAR

Provisions on electricity selling prices and guidance for implementationFor power plants invested under the Build-Operate-Transfer (BOT) model, n is determined according to the operational period of the power plant stipulated in the BOT contract.

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Pursuant to Decision No. 268/QĐ-TTg dated February 23, 2011 of the Prime Minister on the retail electricity price list applicable from 2011Deputy ministers of ministerial-level agencies, based on the market mechanism;policies The Minister of Industry and Trade issues this Circular to provide provisions on electricity selling prices and guidance for implementation as follows:

1. This Circular provides detailed provisions on retail electricity prices for various customer groups based on the average electricity selling price determined according to the mechanism stipulated in Decision No. 24/2011/QĐ-TTg dated April 15, 2011 of the Prime Minister on adjusting electricity selling prices according to the market mechanism, the approved structure of retail electricity price lists by the Prime Minister, and the wholesale electricity prices for retail electricity units purchasing electricity directly from State-owned Power Corporations or affiliated power units.Deputy ministers of ministerial-level agencies, 3. Electricity selling prices in areas not connected to the national grid shall be approved by the People's Committee of the province after obtaining written comments from the Electricity Regulatory Authority.;

Article 2. Average Electricity Selling Priceon The average electricity selling price is VND 1,508.85/kWh (excluding VAT).FUNCTIONS, DUTIES, POWERS, ORGANIZATIONAL STRUCTURE, OPERATIONAL REGULATIONS, AND RELATIONSHIPS OF MANAGEMENT BOARDS; DUTIES, POWERS OF THE CHAIRPERSON, VICE CHAIRPERSON (IF ANY), SECRETARY, AND MEMBERS OF MANAGEMENT BOARDSArticle 3. Electricity Selling Prices by Voltage Level

Chapter I

GENERAL PROVISIONS

Article 1. Scope of Regulation and Applicability

1. Electricity selling prices by voltage level apply to customers using electricity for production, business services, irrigation pumping, administrative and public services, and other purposes in high-rise residential buildings in cities and new urban areas.

2. This Circular applies to organizations and individuals purchasing and selling electricity from the national power system and related organizations and individuals.

Article 4. Electricity Selling Prices Based on Time of Day Usage

Electricity selling prices are defined based on time of day usage (hereinafter referred to as three-tier pricing) as follows:

1. Normal hours

a) From Monday to Saturday

- From 04:00 to 09:30

2. The electricity metering system installed at which voltage level determines the electricity selling price according to the price prescribed at that voltage level.

(05 hours and 30 minutes)

- From 11:30 to 17:00

- From 20:00 to 22:00

(02 hours)

b) Sunday From 04:00 to 22:00;

(18 hours) From 04:00 to 22:00;

2. Peak hours - From 09:30 to 11:30.

- From 17:00 to 20:00

(03 hours) b) Sunday: no peak hours..

3. Off-peak hours

(02 hours)

All days of the week: from 22:00 to 04:00 the following morning - From 09:30 to 11:30;

(06 hours) Article 5. Conditions for Applying Wholesale Electricity Selling Prices.

1. The wholesale electricity selling prices stipulated in Article 15, Article 16, and Article 17 of this Circular shall apply to retail electricity units meeting the following conditions

a) Holding a Power Business License in the distribution and retail sectors issued by the competent authority, except for cases exempted from the Power Business License according to point c, Clause 1, Article 34 of the Electricity Law;

c) Having a power purchase and sale contract and individual electricity meter installed for each household user as stipulated in Article 24 of the Electricity Law; issuing VAT invoices for electricity charges to each customer according to the payment period specified in the power purchase and sale contract as prescribed by the Ministry of Finance. (2. For retail electricity units that do not meet the conditions stipulated in Clause 1 of this Article, the wholesale electricity unit shall report to the Department of Industry and Trade for submission to the People's Committee of the province to decide on revoking the Power Business License and transferring the power grid under its management to the Power Company to sell electricity directly to end-users. During the waiting period for the completion of the transfer procedures, the wholesale electricity unit may apply the tiered residential electricity selling price to the entire measured electricity consumption at the total meter according to the household usage quota indicated on the latest electricity bill..

Article 5. Conditions for applying wholesale electricity prices

1. The wholesale electricity prices prescribed in Articles 15, 16, and 17 of this Circular shall be applied to retail electricity units that meet all of the following conditions:

a) Possessing a Power Business License in the distribution and retail electricity sectors issued by the competent authority, except for cases exempted from obtaining a Power Business License as provided for in point c, Clause 1, Article 34 of the Electricity Law;

b) Maintaining accounting books in accordance with regulations, with the retail electricity business portion being separately accounted for from other business activities;

c) Having a power purchase and sale contract and electricity meter installed for each electricity consumer as stipulated in Article 24 of the Electricity Law; issuing value-added tax invoices for electricity charges for each electricity consumer according to the payment periods specified in the power purchase and sale contract, in accordance with regulations of the Ministry of Finance.

2. For retail electricity units that do not meet the conditions set forth in Clause 1 of this Article, the Wholesale Electricity Unit shall be responsible for reporting to the Department of Industry and Trade to submit to the People's Committee of the province for a decision to revoke the Power Business License and transfer the power grid under the management of such unit to the Electricity Company to sell electricity directly to electricity consumers. During the waiting period for the completion of the handover procedures, the Wholesale Electricity Unit is permitted to apply the tiered residential electricity price for the entire measured electricity output at the total meter according to the consumption level of the most recent electricity bill.

Article 6. Guidelines for Implementing Electricity Sales Prices

1. The time of applying the price list: from August 1, 2013.

2. The electricity sales prices stipulated in this Circular do not include value-added tax.

3. Detailed guidelines for implementing the price list are specified in the Appendix of this Circular.

4. In cases where the average electricity sales price is adjusted according to Decision No. 24/2011/QD-TTg dated April 15, 2011 of the Government on adjusting electricity sales prices under market mechanisms and Circular No. 31/2011/TT-BCT dated August 19, 2011 of the Ministry of Industry and Trade on adjusting electricity sales prices based on basic input parameters, the Vietnam Electricity Corporation shall be responsible for adjusting detailed electricity sales prices for different customer groups.

Chapter II

ELECTRICITY RETAIL PRICE LIST

Article 7. Retail Electricity Price for Production Sectors

The retail electricity price for production sectors is as follows:

Article 8. Retail Electricity Price for Irrigation Pumping

The retail electricity price for irrigation pumping is as follows:

Article 9. Retail Electricity Price for Administrative and Public Service Entities

The retail electricity price for administrative and public service entities is as follows:

Article 10. Retail Electricity Price for Business Purposes

The retail electricity price for business purposes is as follows:

Article 11. Retail Electricity Price for Domestic Use

1. The tiered retail electricity price for domestic use is as follows:

2. The price for the first tier (0 - 50 kWh) only applies to poor households and low-income households that regularly have monthly electricity usage not exceeding 50 kWh and have registered with the electricity supplier. Poor households and low-income households to qualify for purchasing electricity at the first-tier price must register according to the supplier's guidelines.

3. The price list from the second tier onwards applies to general households and to poor and low-income households that have registered for electricity usage starting from the 51st kWh.

4. The retail electricity price for domestic use for temporary and short-term electricity purchasers using prepaid cards is: 1,997 VND/kWh (price excluding value-added tax).

Article 12. Retail Electricity Price in Areas Not Connected to the National Grid

1. The retail electricity price for domestic use in rural, mountainous, and island areas not connected to the national grid is approved by the provincial People's Committee but must not exceed the ceiling and floor prices set as follows:

a) Floor price: 2,263.27 VND/kWh;

b) Ceiling price: 3,772.12 VND/kWh.

2. The retail electricity supplier in rural, mountainous, and island areas not connected to the national grid shall be responsible for developing a pricing plan for customers in these areas based on the principle of ensuring commercial viability and clearly identifying the subsidy amount due to selling electricity at the ceiling price but lower than the approved commercial viability price. The plan must be reviewed by the Department of Industry and Trade, reported, and submitted in writing for the Electricity Regulatory Authority's comments before being presented to the provincial People's Committee for annual approval.

Article 13. Retail electricity prices in areas connected to the national power grid that simultaneously have local power generation sources

Electricity retail units in areas connected to the national power grid with local power generation sources shall combine their own power generation with purchasing electricity from the national power system to sell electricity to end-users and shall be responsible for developing a proposal on electricity selling prices for customers in the area, which shall be submitted to the Department of Industry and Trade for review and reported to the Electricity Regulatory Authority for comments in writing to be submitted annually to the People's Committee of the province for approval.

Chapter III

RETAIL ELECTRICITY PRICES

Article 14. Wholesale electricity prices for the Power Corporation

1. The wholesale electricity price for the Power Corporation from Vietnam Electricity Group (Electricity Trading Company) at delivery points shall be determined in accordance with the guidelines of the Ministry of Industry and Trade, in compliance with the provisions of Decision No. 24/2011/QD-TTg dated April 15, 2011 of the Prime Minister on adjusting electricity selling prices according to market mechanisms and Circular No. 31/2011/TT-BCT dated August 19, 2011 on adjusting electricity selling prices based on basic input parameters.

2. The average transmission price at delivery points corresponding to the volume of electricity transmitted to the distribution network at those points is 83.3 dong/kWh. The average transmission price will be adjusted in accordance with the guidelines of the Ministry of Industry and Trade.

Article 15. Wholesale electricity prices for rural areas

1. Determination of the volume of wholesale electricity for rural areas

The wholesale electricity price for rural areas applies to electricity retail units purchasing wholesale electricity measured by total metering devices installed at transformer stations.

2. Wholesale electricity prices for rural residential use are as follows:

The wholesale electricity price for rural residential use and the price at the total meter are set by the Power Corporation, Electricity Corporation, or authorized units under the Vietnam Electricity Group when selling to rural electricity retail units.

The principle for determining the quota of electricity usage for households using residential electricity after the total meter is stipulated in Point b Clause 1 Section IV of the Appendix issued together with this Circular.

3. Wholesale electricity prices for purposes other than residential use (at the total meter for rural areas) is 1,230 dong/kWh.

Article 16. Wholesale electricity prices for collective housing areas and clusters of residents

1. Determination of the volume of wholesale electricity for collective housing areas and clusters of residents

The wholesale electricity price for collective housing areas and clusters of residents applies to electricity retail units purchasing wholesale electricity measured by total metering devices installed at transformer stations or at the branch point of the low-voltage line.

2. Wholesale electricity prices for residential use in collective housing areas and clusters of residents are as follows:

The wholesale electricity price for residential use in collective housing areas and clusters of residents is the price at the total meter set by the Power Corporation, Electricity Corporation, or authorized units when selling to electricity retail units in collective housing areas and clusters of residents.

Wholesale electricity prices for high-rise apartment buildings in cities and new urban areas are as follows:

The principle for determining the quota of electricity usage for households using residential electricity after the total meter is stipulated in Point b Clause 1 Section V of the Appendix issued together with this Circular.

3. Wholesale electricity prices for purposes other than residential use in collective housing areas and clusters of residents are as follows:

Article 17. Wholesale electricity prices for industrial zones

1. The wholesale electricity price at the 110kV busbar of the 110kV substation in the industrial zone shall apply to cases where the electricity retailer purchases wholesale electricity at the 110kV busbar of the industrial zone (the 110kV station invested by the buyer) to sell retail to electricity consumers within the industrial zone, as follows:

2. The wholesale electricity price sold by the Electricity Company to the electricity retailers at the medium voltage busbar of the 110/35-22-10-6kV substation or at the branch point of the medium voltage transmission line entering the industrial zone shall be set at the retail electricity price for production sectors at the corresponding medium voltage level prescribed in Article 7 of this Circular minus 2%.

3. The wholesale electricity price sold by the Electricity Company to the electricity retailers at the medium voltage side of the low voltage substations shall be set at the retail electricity price applicable to production sectors at the corresponding medium voltage level prescribed in Article 7 of this Circular.

Chapter IV

IMPLEMENTATION

Article 18. Responsibility for inspection

1. The Department of Industry and Trade shall be responsible for inspecting and supervising electricity retailers under its jurisdiction in implementing electricity selling prices as prescribed in this Circular. In case of discovering that units do not meet the conditions stipulated in Article 5 of this Circular, the Department of Industry and Trade shall take responsibility for suspending the operations of violating organizations, reporting to the People's Committee of the province to revoke the power business operation license issued by the provincial People's Committee, or reporting to the Electricity Regulatory Authority to revoke the power business operation license issued by the Electricity Regulatory Authority for direct sale of electricity to end-users by the Electricity Company.

2. The Department of Industry and Trade shall be responsible for inspecting and supervising the implementation of household usage quotas and retail electricity prices at rental housing locations to ensure that tenants are correctly applying the retail electricity prices for residential use as prescribed in this Circular.

Article 19. Effective Date

1. This Circular takes effect from August 1, 2013, replacing Circular No. 38/2012/TT-BCT dated December 20, 2012, of the Ministry of Industry and Trade on electricity selling prices and guidance on their implementation.

2. During the implementation period, if there are any difficulties, relevant units shall directly reflect them to the Electricity Regulatory Authority for examination and resolution within their authority, or report to the Ministry of Industry and Trade for resolution./.