Circular No. 21/2020/TT-BCT on the procedures and formalities for issuing power business licenses

CIRCULAR

Regulations on the Procedures for Issuing Licenses for Electricity Business Activities

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Pursuant to Decree No. 98/2017/NĐ-CP dated August 18, 2017, of the Government stipulating 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;

Pursuant to Decree No. 08/2018/NĐ-CP dated January 15, 2018 of the Government amending certain Decrees related to investment conditions in the field under the management of the Ministry of Industry and Trade;

Pursuant to Decree No. 17/2020/NĐ-CP dated February 5, 2020 of the Government amending and supplementing certain provisions of Decrees related to investment conditions in the field under the management of the Ministry of Industry and Trade;

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

The Minister of Industry and Trade issues this Circular stipulating the procedures for issuing licenses for electricity business activities. 

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular stipulates the procedures for issuing licenses for electricity business activities, the validity period of the license for electricity business activities in the following fields:

1. Specialized consulting services in electricity, including:

a) Design consulting for projects: Hydro power, wind power, solar power, thermal power (coal, gas, oil, biomass, solid waste), transmission lines and substations;

b) Construction supervision consulting for projects: Hydro power, wind power, solar power, thermal power (coal, gas, oil, biomass, solid waste), transmission lines and substations.

2. Power generation.

3. Transmission of electricity.

4. Distribution of electricity.

5. Wholesale of electricity.

6. Retail of electricity.

Article 2. Applicability

This Circular applies to organizations and individuals participating in electricity business activities in the following fields: specialized consulting services in electricity, power generation, transmission of electricity, distribution of electricity, wholesale of electricity, retail of 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. Power generation with installed capacity up to 1 MW for selling electricity to other organizations or individuals.

3. Electricity trading in rural, mountainous, and island areas purchasing electricity with capacity less than 50 kVA from the distribution grid to sell directly to end-users in rural, mountainous, and island areas.

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

Article 4. Principles for Issuing Licenses and Validity Periods of Licenses for Electricity Business Activities

1. Prior to the competitive retail electricity market phase, the license for electricity business activities in the retail electricity field shall be issued concurrently with the distribution electricity field, except in cases provided for in Clause 2 of this Article.

2. For power generation units registering to engage in retail electricity business without purchasing electricity from the national grid and having their own grid to conduct retail electricity business: The license for electricity business activities in the retail electricity field shall be issued concurrently with the power generation field.

3. The power generation license shall be issued to organizations that are owners of power plants for each individual power plant.

4. The maximum validity period of the license for electricity business activities issued to entities engaged in electricity business activities is specified as follows:

6. Organizations and individuals requesting a shorter validity period for the license for electricity business activities than the period prescribed in Clause 4 of this Article shall have it issued according to the requested period, except in cases provided for in Clause 7 of this Article.

7. Based on actual conditions regarding project components, the licensing authority may issue a license for electricity business activities with a shorter validity period than that prescribed in Clause 4 of this Article.

Article 5. Scope of activities in the licensed power sector

1. The scope of activities in the field of specialized power consulting covers the entire country.

2. The scope of activities in the fields of power transmission and distribution is within the management and operation range of specific power grids.

3. The scope of activities in the fields of wholesale and retail electricity is within a specific area.

4. The scope of activities in the field of power generation is for each power plant.

Chapter II

APPLICATION DOCUMENTS, PROCEDURES FOR GRANTING LICENSES FOR POWER ACTIVITIES

Article 6. Application Documents for Granting License in the Field of Specialized Power Consulting

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 or Decision on Establishment, Certificate of Establishment (for organizations without a Business Registration Certificate) of the organization requesting the license.

Article 7. Application Documents for Granting License in the Field of Power Generation

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 or Decision on Establishment, Certificate of Establishment (for organizations without a Business Registration Certificate) of the organization requesting the license.

5. A copy of the Decision approving the Environmental Impact Assessment Report or a document confirming the Environmental Protection Plan for the power plant investment project by the competent authority in accordance with environmental laws.

6. A copy of the Decision approving the Reservoir Operation Procedures by the competent authority (for hydropower plants).

7. A copy of the completion acceptance record of the installation of the power generator or solar panel system; a copy of the documentation determining the main parameters of the power plant (turbine, generator or solar panel, converter; main transformer).

8. A copy of the completion acceptance record of the installation of the information technology infrastructure and telecommunications infrastructure serving the operation of the electricity market; a copy of the completion acceptance record of the installation of the SCADA system serving the operation of the power system and electricity market (for power plants participating in the electricity market).

10. In cases where the power plant or backup generator does not connect to the grid and only generates electricity to sell to customers during national grid power outages, the application for a license does not include the content stipulated in Clause 8 of this Article.

Article 8. Documents for application to obtain a license in the field of electricity transmission and distribution

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 or Decision on Establishment, Certificate of Establishment (for organizations without a Business Registration Certificate) of the organization requesting the license.

5. Copies of Agreements on Connecting to the National Power System as prescribed; maps of power grid boundaries and operational areas.

Article 9. Documents for application to obtain a license in the field of wholesale and retail electricity

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 or Decision on Establishment, Certificate of Establishment (for organizations without a Business Registration Certificate) of the organization requesting the license.

1. In case of changes in the name or address of the headquarters of the entity holding the license, the application documents shall include the following contents:

a) A request for issuance of an electricity business license according to Model 01 prescribed in the Appendix attached hereto;

b) Copies of the Enterprise Registration Certificate or Establishment Decision, Establishment Certificate (for organizations without an Enterprise Registration Certificate) of the entity applying for the license.

2. In case the entity applying for the license receives asset transfer from an entity already holding an electricity business license, the application documents for the electricity business license of the receiving entity shall include:

a) A request for issuance of an electricity business license according to Model 01 prescribed in the Appendix attached hereto;

b) Copies of the Enterprise Registration Certificate or Establishment Decision, Establishment Certificate (for organizations without an Enterprise Registration Certificate) of the entity applying for the license;

c) Documents proving the asset transfer; documents proving personnel transfer or information about the direct technical management team, operation management team, and consulting experts as prescribed in Clause 3 of Articles 6, 7, 8, and 9 of this Circular in case of personnel change.

Article 11. Procedure and formalities for issuing, amending, or supplementing an electricity business license

1. At least 15 working days before the official commercial operation date, entities participating in power generation activities must submit complete application documents for an electricity business license.

2. Organizations and individuals applying for issuance, amendment, or supplementation of an electricity business license 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.

3. The method of submitting documents is regulated as follows:

a) For documents within the licensing authority of the Ministry of Industry and Trade and the Electricity Regulatory Authority: Submit online through the Government Public Service Portal at https://dichvucong.moit.gov.vn

In cases where electronic documents have large file sizes or materials that cannot be sent via the internet as prescribed by law, they may be submitted directly or through postal services.

b) For documents within the licensing authority of provincial People's Committees: Submit directly, through postal services, or online on the website of the licensing authority (if available).

4. The procedure and formalities for issuing, amending, or supplementing an electricity business license online are carried out as follows:

a) Online documents are implemented according to the guidelines on the Government Public Service Portal of the Ministry of Industry and Trade, specifically as follows:

- Entities and individuals applying for licenses must register accounts on the Government Public Service Portal of the Ministry of Industry and Trade and use the registered account to declare and submit online documents;

- Within 60 working days from the date of receipt of requests for supplementary or amended data, materials, and related information from the licensing authority, entities and individuals applying for licenses must supplement or amend data, materials, and related information on the Government Public Service Portal of the Ministry of Industry and Trade. If the deadline passes and the entity or individual does not amend or supplement the documents as requested, the licensing authority has the right to return the application documents for an electricity business license;

- Within 15 working days from the date of receipt of complete and valid documents on the Government Public Service Portal of the Ministry of Industry and Trade, the licensing authority is responsible for reviewing the documents and issuing an electricity business license;

- In cases of amending or supplementing an electricity business license, within 7 working days from the date of receipt of complete and valid documents on the Government Public Service Portal of the Ministry of Industry and Trade as prescribed in Article 10 of this Circular, the licensing authority is responsible for reviewing the documents and issuing an electricity business license.

b) Provincial People's Committees guide the issuance of licenses within their jurisdiction in an online form (if applicable) in accordance with the provisions of this Circular.

5. The procedure and formalities for issuing, amending, or supplementing an electricity business license without using online methods are carried out as follows:

a) Within 3 working days from the date of receipt of the application documents for issuance, amendment, or supplementation of an electricity business license, the licensing authority shall notify in writing the entity or individual applying for the license if the documents are incomplete or invalid. In the notification, the reasons must be clearly stated and requests for supplementary or amended data, materials, and related information to complete the documents must be specified.

b) Within sixty working days from the date of receipt of the request for supplementation and modification of data, documents, and related information from the agency issuing the power business license, the organization or individual requesting the license must supplement, modify the data, documents, and related information and respond in writing. Upon expiration of this period, if the organization or individual does not amend or supplement the application file according to the requirements, the agency issuing the power business license has the right to return the application file for the issuance of the power business license;

c) Within fifteen working days from the date of receiving complete valid files, the agency issuing the power business license shall be responsible for examining the file and issuing the power business license, except in cases provided for in point d of this Clause;

d) In case of supplementation and modification of the power business license, within seven working days from the date of receiving complete valid files as prescribed in Article 10 of this Circular, the agency issuing the power business license shall be responsible for examining the file and issuing the power business license.

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. In case the license is lost or damaged, the power unit must submit a written request according to Model 01 stipulated in the Appendix promulgated together with this Circular, clearly stating the reason.

Chapter III

AUTHORITY TO ISSUE AND MANAGE THE USE OF POWER BUSINESS LICENSES

1. The authority to issue power business licenses of the Ministry of Industry and Trade and the Electricity Regulatory Agency is specified in Clause 19, Article 3 of Decree No. 17/2020/NĐ-CP dated February 5, 2020 of the Government amending and supplementing certain provisions of decrees relating to investment conditions in the field under the management of the Ministry of Industry and Trade.

2. Provincial People's Committees, or municipal people's committees directly under the central government, shall issue or authorize the Department of Industry and Trade to issue power business 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 design of power transmission lines and substations up to 35 kV voltage level, registered enterprises in the locality;

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

Article 13. Responsibilities of the agency issuing power business licenses

1. Receiving, examining, inspecting, and managing application files for the issuance of power business licenses. Guiding organizations and individuals requesting the license to comply with the contents, procedures, and formalities for requesting the issuance of power business licenses as prescribed in this Circular.

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

3. Amending the License in case of errors in the contents recorded in the issued license.

4. Inspecting and supervising the compliance with power business operation conditions by licensed units.

5. Revoking power business licenses within its licensing authority.

6. Sending the decision to revoke to the power unit whose license was revoked and relevant agencies and units; publishing information on the revocation of the power business license on the website of the agency issuing the power business license within two working days from the date of the decision to revoke the power business license.

Article 14. Responsibilities of power units licensed to operate electricity

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

3. Prepare a dossier to request modification of the electricity operation license in case part of the field or scope of operation is revoked.

4. Ensure all conditions for operating electricity as prescribed by law throughout the duration of operation and comply with relevant legal provisions. Adhere to fire prevention and firefighting regulations applicable to electricity generation, transmission, and distribution operations.

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

6. Do not lease, lend, or self-modify the content of the electricity operation license.

a) Signing Power Purchase Agreements as prescribed (except for hydropower plants listed in the Register of large-scale power plants with significant economic, social, defense, and security importance approved by the Prime Minister, and the Register of power plants coordinating operations with large-scale power plants with significant economic, social, defense, and security importance approved by the Ministry of Industry and Trade; hydropower plants affiliated with Electricity Corporations according to the Proposal Document of the Vietnam Electricity Corporation);

b) The SCADA system serving the operation of the power system and electricity market as prescribed;

c) Information technology infrastructure and telecommunications infrastructure serving the operation of the electricity market (for power plants participating in the electricity market);

d) Other management and operation requirements for power plants stipulated in relevant legal documents.

8. Accept inspection, audit, and comply with decisions on handling issued by competent state agencies regarding the use of the license and ensuring conditions for operating electricity as prescribed by law.

9. Retain the original copy of the issued electricity operation license at the unit's headquarters and keep a copy of the electricity operation license at the unit's trading office.

10. Within thirty days from the date of issuance of the electricity operation license, the unit receiving the license shall be responsible for sending a copy of the issued electricity operation license to the competent state management agency in the electricity sector at the local level.

11. Reporting responsibilities

b) Report to the issuing authority of the electricity operation license within sixty days before ceasing electricity operations or transferring electricity operations, either directly or through postal service;

c) Provide full and accurate information when requested by the issuing authority or competent authority.

Article 15. Provisions on management and operation of power plants in cases of leasing power plants, renting or entrusting management and operation

1. The investor of the power plant shall be responsible for all obligations related to the investment and operation processes of the power plant in accordance with the provisions of the law.

2. The unit that leases the power plant, rents or is entrusted with the management and operation of the power plant, or is authorized to manage and operate the power plant shall be responsible for fully performing all obligations related to the operation process of the power plant according to the contents of the lease, rental, or entrusted management and operation contract of the power plant.

Chapter IV

IMPLEMENTATION

Article 16. 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 to report to the Ministry of Industry and Trade for amending and supplementing 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 17. Responsibilities for Implementation

1. The Electricity Regulatory Authority is the agency receiving and processing procedures for reviewing applications for issuance of electricity business licenses within its authority and that of the Ministry of Industry and Trade.

2. The Department of Industry and Trade is the agency receiving and processing procedures for reviewing applications for issuance of electricity business licenses within the authority of the People's Committee of provinces and centrally governed cities when authorized.

3. Before March 1st each year, the Department of Industry and Trade shall report to the Ministry of Industry and Trade and the People's Committee of provinces and centrally governed cities on the situation of issuing electricity business licenses in the locality of the previous year according to Model 5 of the Appendix issued together with this Circular by direct submission, postal service, or electronic mail system.

Article 18. Effective Date

1. This Circular takes effect from October 26, 2020. Circular No. 36/2018/TT-BCT dated October 16, 2018, of the Minister of Industry and Trade on the procedures and formalities for issuing and revoking electricity business licenses, and Circular No. 15/2019/TT-BCT dated August 26, 2019, of the Minister of Industry and Trade amending Clause 1 and Clause 4 of Article 12 of Circular No. 36/2018/TT-BCT dated October 16, 2018, of the Minister of Industry and Trade on the procedures and formalities for issuing and revoking electricity business licenses shall cease to be effective from the date this Circular takes effect.

2. In cases where electricity business licenses are amended and supplemented due to changes in name, address of headquarters, and asset transfer of units already holding licenses, the previously issued licenses shall remain valid until new electricity business licenses are issued.

3. Power units that have been granted electricity business licenses before the effective date of this Circular shall continue to implement according to the contents and deadlines specified in the licenses and shall be responsible for complying with the provisions of this Circular and relevant laws promulgated after the issuance of the licenses./.