CIRCULAR

Prescribes the contents and procedures for implementing

programs to adjust electricity demand

Pursuant to Decree No. 9/2016/NĐ-CP dated July 1, 2016 of the Government detailing and guiding the implementation of certain provisions of the Statistics Law;8/2017/NĐ-CP dated January 18 the 8 Article 2. The receipt, handling of reflections and petitions from individuals and organizations concerning administrative regulations shall be carried out in accordance with Decree No. 20/2008/NĐ-CP dated February 14, 2008 of the Government on the receipt, handling of reflections and petitions from individuals and organizations concerning administrative regulations (amended and supplemented by Decree No. 48/2013/NĐ-CP dated May 14, 2013 on amending and supplementing certain articles of decrees related to administrative procedure control and Decree No. 92/2017/NĐ-CP dated August 7, 2017 on amending and supplementing certain articles of decrees related to administrative procedure control).7 /NĐ-CP dated March

Pursuant to the Electricity Law on December 3, 2004 and the Law Amending and Supplementing Certain Provisions of the Electricity Law on November 20, 2012; đcontents and procedures for implementing programs to adjust electricity demand

Pursuant to Decree No. 137/2013/NĐ-CP dated October 21, 2013 of the Government detailing the implementation of certain provisions of the Electricity Law and the Law Amending and Supplementing Certain Provisions of the Electricity Law; The Minister of Industry and Trade issues this Circular prescribing conditions and procedures for stopping and reducing the level of electricity supply.

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

The Minister of Industry and Trade issues this Circular to provide guidance on 1. This Circular prescribes the contents and procedures for implementing programs to adjust electricity demand..

PART I

GENERAL PROVISIONS

Article 1.Scope of application

2. This Circular does not apply to emergency cases of stopping or reducing electricity supply levels as prescribed in the Regulations on Conditions and Procedures for Stopping or Reducing Electricity Supply Levels issued by the Ministry of Industry and Trade.

Customers using electricity.

Article 2.Applicability

This Circular applies to the following subjects:

1. Power distribution units.
2. Power distribution and retail units.
3. Service providers adjusting electricity demand.
4. The National Dispatch Center (National Power System Dispatch Center).
5. is the ability of power sources to ensure electricity supply that meets the electricity demand at a given point in time or during a specified period, taking into account constraints within the power system.
6. Vietnam Electricity Corporation.
7. Other organizations and individuals related.

Article 3.Definitions

In this Circular, the following terms shall be understood as follows: 

1. is the ability of power sources to ensure electricity supply meeting the load demand at a given time or within a specified period taking into account constraints in the electricity system. Load Duration Curve (LDC).
2. (in English: Load Duration Curve) is a chart depicting power levels in descending order and the operating duration of each power level over a specific period of time. Adjusting electricity demand
3. is one of the demand management programs aimed at encouraging customers to proactively reduce their electricity consumption from the national power system based on price signals or incentive mechanisms when requested by the entity implementing the electricity demand adjustment program, contributing to reducing peak power demand in the power system, alleviating grid overload conditions, or enhancing the economic efficiency of the power system. Distribution and retail electricity companies
4. is an electricity unit licensed to operate in the field of distribution and sale of electricity, including: are entities licensed to operate in the distribution and sale of electricity, including:

a) State Corporation of Electricity;

b) Provincial or centrally-administered city electricity companies (hereinafter referred to as provincial electricity companies).

5. Distribution and Retail Companies are entities licensed to operate in the distribution and retail sale of electricity, purchasing wholesale electricity from distribution companies to sell to electricity users.
6. Entities implementing electricity demand adjustment programs are entities responsible for implementing electricity demand adjustment programs, including:

a) Distribution companies;

b) Service providers adjusting electricity demand.

7. National Power System Dispatch Unit is the command and control center for power generation, transmission, and distribution in the national power system, comprising dispatch centers at different levels:

a) National-level dispatch center;

b) Regional-level dispatch center.

8. Service providers adjusting electricity demand are entities established and registered for business operations in accordance with the law, possessing adequate infrastructure, information technology facilities, and suitable personnel to act as intermediaries between electricity users and electricity suppliers to implement electricity demand adjustment programs as agreed upon with electricity users and electricity suppliers.
9. Baseline load curve of the electricity demand adjustment event (hereinafter referred to as baseline load curve) is the electricity load curve of electricity users constructed and forecasted from historical metering data collected every 30 minutes. The baseline load curve characterizes the trend and habits of electricity consumption by electricity users on a specific day or at a particular time expected to occur during the electricity demand adjustment event. The baseline load curve is used to calculate the reduced power and energy consumption of users after the completion of the electricity demand adjustment event.
10. Management system for implementing electricity demand adjustment programs is a tool consisting of software, hardware, and electronic information portals built and managed by entities implementing electricity demand adjustment programs to support and monitor the implementation of these programs.
11. Load factor is a coefficient used to evaluate the efficiency of electricity usage by loads or power systems and is determined according to the following formula:

 

Where:

- k_pt: Load factor;

- P_tb: Average load capacity of the load or power system during the calculation cycle;

- P_max: Maximum load capacity of the load or power system during the calculation cycle.

12. Contract to participate in electricity demand adjustment programs is a contract between electricity users and entities implementing electricity demand adjustment programs to participate in electricity demand adjustment programs.
13. Contract for providing electricity demand adjustment services is a contract between distribution companies and service providers adjusting electricity demand to provide electricity demand adjustment services.
14. Participants in electricity demand adjustment programs are electricity users who have signed a contract to participate in electricity demand adjustment programs with entities implementing electricity demand adjustment programs to join these programs.
15. Demand management is a set of technical, technological, economic, and social solutions aimed at assisting electricity users, power producers, and distributors to use electricity efficiently and economically, thereby contributing to optimizing the balance between supply and demand for electricity and improving the overall efficiency of electricity usage in the power system.
16. Electricity demand adjustment event is a period during which participating electricity users reduce their electricity consumption after receiving notification from the entity implementing the electricity demand adjustment program.
17. Insufficient power supply refers to situations where the power system lacks either electrical energy or power capacity, or both, to meet electricity demand.

Article 4.Principles for implementing electricity demand adjustment programs

Chapter I regulates the load adjustment program based on the following principles:

1. Balancing supply and demand in cases where the power system lacks power sources.

2. Reducing overload conditions or exceeding transmission limits, eliminating the risk of grid overload (except in emergency load shedding situations).

3. Enhancing the economic efficiency of the power system.

Chapter II

ASSESSING NEEDS AND DEVELOPING PLANS

IMPLEMENTATION OF THE LOAD ADJUSTMENT PROGRAM

Section 1

ASSESSING NEEDS FOR IMPLEMENTATION

LOAD ADJUSTMENT PROGRAM

Article 5.Assessing needs for implementing the load adjustment program

The National Power System Dispatch Unit and Distribution Units are responsible for assessing the needs to implement load adjustment programs for the national power system, regional power systems, or power systems within their management scope, with the main contents as follows:

1. Analyzing and evaluating the load curves of the national power system, regional power systems, or managed power systems for the preceding consecutive years as stipulated in Article 6 of this Circular.
2. Studying loads as prescribed in Article 7 of this Circular.
3. Forecasting load requirements according to the Transmission System Regulations and Distribution System Regulations issued by the Ministry of Industry and Trade.
4. Analyzing and evaluating the current status of the power system, investment plans for power sources and grids, and assessing power system security as prescribed in Article 8 of this Circular.
5. Determining the needs to implement load adjustment programs.

Article 6.Analyzing and evaluating load curves system

Implementing the construction, analysis, and evaluation of load curves for the power system of the preceding consecutive years (at least three years) to determine information and characteristics about loads, specifically as follows:

1. Constructing and analyzing load curves for the national power system, regional power systems, or managed power systems, and statistical diagrams of LDC capacity.
2. Analyzing and evaluating the growth rate of loads for the national power system, regional power systems, or managed power systems.
3. Determining the load factor of the power system by month and year.

4. Evaluating the load reduction needs in load adjustment programs to improve the load factor of the power system, reduce new investment pressure or upgrade the power system.

Article 7.Studying loads

1. Conducting load studies according to the content, methods, and procedures for conducting load studies issued by the Ministry of Industry and Trade to assess the potential for implementing load adjustment programs, including the following contents:

a) Constructing load curves for each load component, load group, sub-group of loads;

b) Analyzing load curves for each load component, load group, sub-group of loads, and evaluating the following contents:

- Evaluating the contribution ratio of each load component, load group, sub-group of loads during peak times of the power system. Identifying load components, load groups, sub-groups of loads that significantly contribute to the maximum capacity during peak times of the power system;

- Evaluating the trend of changes in load curves for load components, load groups, sub-groups of loads with significant contribution ratios during peak times of the power system;

- Evaluating the growth rate of load components, load groups, sub-groups of loads.

2. Identifying load components, load groups, sub-groups of loads with potential to participate in load adjustment programs based on the results of load studies.

Article 8.Analyzing and evaluating the current status of the power system, investment plans for power sources and grids, and assessing power system security

1. Analyzing and evaluating the current status of the power system and electricity supply situation; statistics and evaluation of the operation status of the power grid, load condition of transmission lines, substations including: number of occurrences, hours, and percentage of full load (load level from 90% to 100%), overload cycles (load level from over 100% to 110% and load level over 110%), load factor.
2. Analyzing and evaluating power source and grid investment plans, progress. Establishing and evaluating power system operation plans to meet load requirements.
3. Conducting power system security assessments or the ability to ensure electricity supply for the national power system, regional power systems, or managed power systems.
4. Determining the needs to implement load adjustment programs based on the results of power system status evaluations, power source and grid investment plans, power system operation plans, and power system security assessments:

a) Needs to implement load adjustments when the national power system or regional power system lacks power sources to meet load requirements, including:

- Areas of the power grid that may experience a lack of power sources;

- Time periods that may experience a lack of power sources;

- Capacity and energy levels that need to be reduced to ensure power system security.

b) Needs to implement load adjustment programs due to grid overload or exceeding transmission limits, including:

- Areas of the power grid (substations, transmission lines) that may experience overload or exceed transmission limits;

- Time periods that may experience overload or exceed transmission limits;

- Overload rates, capacity and energy levels that need to be reduced to alleviate grid overload or exceed transmission limits.

c) Needs to implement load adjustment programs to minimize overall system electricity purchase costs or improve the load factor of the power system, including:

- Areas of the power grid that can implement load adjustments;

- Time periods that require load adjustment events;

- Capacity and energy levels that need to be reduced to enhance the economic efficiency of the power system.

Article 9.Determining the needs to implement load adjustment programs

Summarizing, evaluating, and determining the needs to implement load adjustment programs based on the results of implementing the provisions of Articles 5, 6, 7, and 8 of this Circular, including the following contents:

1. Total capacity and electricity required to be reduced from load adjustment programs.

2. Power grid areas (transformer stations, transmission lines) capable of implementing load adjustment.

3. Anticipated time and duration for the implementation of load adjustment events.

4. Customer categories with potential to participate in load adjustment programs.

5. Reasons for implementing load adjustment according to cases stipulated in Clause 4, Article 8 of this Circular.

Article 10.Responsibilities of units in assessing the need to implement load adjustment programs.

1. Responsibilities of Vietnam Electricity Corporation

a) Directing the National Power System Dispatch Unit and Distribution Units to assess the need to implement load adjustment programs as prescribed in this Circular;

b) Submitting through the results of the assessment of the need to implement load adjustment programs in the national power system for the upcoming year, month, and week, prepared by the National Power System Dispatch Unit and submitted in accordance with Clause 2 of this Article;

c) Reporting to the Electricity Regulatory Authority the results of the assessment of the need to implement load adjustment programs in the national power system for the upcoming year within the national power system operation plan for the upcoming year, established in accordance with the Transmission System Regulations and the National Power System Dispatch Procedures issued by the Ministry of Industry and Trade.

2. Responsibilities of the National Power System Dispatch Unit

a) Assessing the need to implement load adjustment programs for the national power system and regional power systems for the upcoming year, month, and week. The content of the assessment of the need to implement load adjustment programs for the national power system and regional power systems is part of the national power system operation plan for the upcoming year, month, and week, established in accordance with the Transmission System Regulations and the National Power System Dispatch Procedures issued by the Ministry of Industry and Trade;

b) Notifying Distribution Units and reporting to Vietnam Electricity Corporation the results of the assessment of the need to implement load adjustment programs for the national power system and regional power systems within the national power system operation plan or operational mode for the upcoming year, month, and week, established in accordance with the Transmission System Regulations and the National Power System Dispatch Procedures issued by the Ministry of Industry and Trade.

3. Responsibilities of Distribution Units

Assessing the need to implement load adjustment programs within their jurisdiction based on the results of the assessment of the need to implement load adjustment programs provided by the National Power System Dispatch Unit and the specific characteristics of the power system within their jurisdiction. The content of the assessment of the need to implement load adjustment programs is part of the distribution system operation plan or operational mode established in accordance with the Distribution System Regulations issued by the Ministry of Industry and Trade.

4. Responsibilities of Load Adjustment Service Providers, Distribution and Retail Units

Load Adjustment Service Providers, Distribution and Retail Units are responsible for coordinating with Distribution Units during the process of assessing the need to implement load adjustment programs.

Section 2

DEVELOPMENT OF IMPLEMENTATION PLANS FOR PROGRAMS

ARTICLE ADJUSTMENT OF ELECTRIC LOAD OF THE DISTRIBUTION UNIT

Article 11. GENERAL PROVISIONS ON THE PLAN TO IMPLEMENT THE PROGRAM FOR ADJUSTING ELECTRIC LOAD

1. The distribution unit shall be responsible for developing plans to implement electric load adjustment programs for the upcoming year, month, and week based on an assessment of the requirements for implementing the electric load adjustment programs stipulated in Section 1 of Chapter II herein;
2. The plan to implement electric load adjustment programs for the upcoming year, month, and week is part of the distribution system operation plan established and published by the distribution unit in accordance with the Distribution System Regulation issued by the Ministry of Industry and Trade.
3. Before December 1st each year, the distribution unit shall be responsible for:

a) The Electricity Corporation shall complete the development and consolidation of the plan to implement electric load adjustment programs for the upcoming year for the entire Electricity Corporation and provincial Electricity Corporations to report to the Electricity Regulatory Authority;

b) The Electricity Corporation of Hanoi City, the Electricity Corporation of Ho Chi Minh City, and provincial Electricity Corporations shall complete the plan to implement electric load adjustment programs for the upcoming year for their units to report to the Department of Industry and Trade of the locality.

4. The distribution unit shall be responsible for developing plans to implement electric load adjustment programs for the upcoming month and week based on the plan to implement the electric load adjustment program for the upcoming year. The plan to implement electric load adjustment programs shall be continuously updated based on input data until the time before sending the notification to implement the electric load adjustment program to participating customers.

Article 12.CONTENT OF THE PLAN TO IMPLEMENT THE PROGRAM FOR ADJUSTING ELECTRIC LOAD

1. Requirements for implementing the electric load adjustment programs as stipulated in Section 1 of Chapter II of this Circular.
2. Scope and specific objectives for implementing electric load adjustment, including:

a) Areas of the power grid, substations, and transmission lines expected to implement electric load adjustment;

b) Level of power capacity and energy savings; time points and periods expected to implement and total number of load adjustment events expected to be implemented;

c) Reasons for implementing electric load adjustment according to the cases prescribed in Clause 4, Article 8 of this Circular.

3. IMPLEMENTATION PLAN FOR THE PROGRAM FOR ADJUSTING ELECTRIC LOAD

a) Analyze and select appropriate electric load adjustment programs in line with the load adjustment objectives, customer participants, and current state of the power grid;

b) Content of each planned electric load adjustment program to be implemented, including:

- Name and content of the program;

- Target group and number of customers expected to participate in the program;

- Expected power capacity and energy savings;

- Time points and periods expected to implement;

- Total number of load adjustment events expected to be implemented;

- Incentive mechanisms of the program issued by the competent authority (if any).

Chapter III

LOAD ADJUSTMENT PROGRAMS AND SEQUENCE OF IMPLEMENTATION

LOAD ADJUSTMENT PROGRAMS

Section 1

LOAD ADJUSTMENT PROGRAMS AND SEQUENCE OF IMPLEMENTATION

Article 13.Load adjustment programs

Load adjustment programs are classified based on the incentive mechanism of the program, including:

1. Load adjustment program under direct financial incentive mechanism

a) Load reduction program;

b) Emergency load reduction program.

Detailed content of load adjustment programs under the direct financial incentive mechanism is specified in Appendix 1A attached to this Circular.

2. Load adjustment program through electricity price mechanism

a) Two-part tariff program;

b) Real-time maximum demand tariff program.

Detailed content of load adjustment programs through the electricity price mechanism is specified in Appendix 1B attached to this Circular.

3. Load adjustment program through non-commercial incentives.

Detailed content of load adjustment programs through non-commercial incentives is specified in Appendix 1C attached to this Circular.

4. Voluntary load adjustment program.

Detailed content of voluntary load adjustment programs is specified in Appendix 1C attached to this Circular.

5. In addition to the load adjustment programs prescribed in Clauses 1, 2, 3, and 4 of this Article, Vietnam Electricity Group and entities implementing load adjustment programs may study and propose other load adjustment programs to be submitted to the Ministry of Industry and Trade for consideration and decision.

Article 14.Participants in electricity demand adjustment programs

1. Based on the content of each load adjustment program, infrastructure conditions, and business operations of customers, customers decide to choose and register to participate in the load adjustment program.

2. When participating in the load adjustment program, customers shall be responsible for:

a) Cooperating and providing full information to the entity implementing the load adjustment program to assess the potential for load adjustment of the customer;

b) Negotiating and signing a participation contract in the load adjustment program with the entity implementing the load adjustment program;

c) Implementing load adjustment according to the content in the signed participation contract in the load adjustment program.

Article 15.Service providers adjusting electricity demand

The service provider for load adjustment has the following rights and responsibilities:

1. Representing one or a group of customers to negotiate and sign contracts with electricity suppliers to meet the needs of large-scale load adjustment implementation.

2. Acting on behalf of the customers they represent to fulfill the obligations of customers in load adjustment programs.

3. Enjoy benefits from the implementation of load adjustment programs according to agreements with customers.

4. Fulfilling the rights and obligations stipulated in the load adjustment service provision contract.

Article 16.ENCOURAGEMENT FOR IMPLEMENTING LOAD ADJUSTMENT PROGRAMS

1. Customers participating in the implementation of load adjustment programs shall enjoy one of the following incentives:

a) The incentive amount based on the electricity consumption or reduced capacity of the customer after implementing load adjustment events;

b) Encouragement through the electricity pricing mechanism;

c) Prioritizing the improvement of power supply reliability and service quality for customers in accordance with the actual conditions of the power system.

2. Customers participating in the load adjustment program shall enjoy specific benefits for the load adjustment program that they have registered to join, implemented, and specifically determined in the Load Adjustment Program Participation Contract.

3. The encouragement mechanisms at Point a and Point b Clause 1 of this Article shall be implemented in accordance with the regulations of the competent authority.

Section 2

IMPLEMENTATION PROCEDURE

LOAD ADJUSTMENT PROGRAM

Article 17.Implementation procedure for the load adjustment program ;

1. The financial incentive-based load adjustment program shall be carried out according to the following main steps:

a) Customers register and sign a contract to participate in the load adjustment program;

b) The entity implementing the load adjustment program develops plans, calculates the baseline load curve for participating customers, and collaborates with customers to implement load adjustment events;

c) The entity implementing the load adjustment program calculates the reduced electricity consumption and the incentive amount for customers during load adjustment events.

2. The load adjustment program through the electricity pricing mechanism and the priority enhancement of power supply reliability and service quality for customers shall be carried out according to the following main steps:

a) Customers register to participate in the load adjustment program;

b) The entity implementing the load adjustment program collaborates with customers to implement load adjustment events.

Article 18.Registration to participate in the load adjustment program

1. Customers register to participate in the program for the entity implementing the load adjustment program.
2. The entity implementing the load adjustment program is responsible for conducting an initial assessment of the information of customers registering to participate, deciding to accept or advising customers further about their ability to participate in the program.
3. In cases where customers are assessed as having potential to participate in the program through the initial assessment, the entity implementing the load adjustment program is responsible for coordinating with customers to conduct surveys and actual assessments at the customer's production and business premises.
4. After completing the survey and actual assessment at the customer's production and business premises, the entity implementing the load adjustment program and the customer will reach an agreement and sign the Load Adjustment Program Participation Contract. The Load Adjustment Program Participation Contract applies the financial incentive mechanism as specified in Appendix 2 of this Circular.
5. After the customer and the entity implementing the load adjustment program sign the Load Adjustment Program Participation Contract, the entity implementing the load adjustment program is responsible for updating all customer information into the Load Adjustment Program Management System.

Article 19.Developing plans and implementing load adjustment events

1. Based on the implementation plan for load adjustment programs as stipulated in Section 2 Chapter II of this Circular, updating the operation mode of the power system and specific requirements of the Power System Dispatching Unit, the entity implementing the load adjustment program is responsible for developing plans and assessing the feasibility of implementing load adjustment events based on the following contents:

1. Data stored in the Load Adjustment Program Management System;
2. Specific agreements in the signed Load Adjustment Program Participation Contract.

2. The entity implementing the load adjustment program decides to implement load adjustment events and calculate the baseline load curve for participating customers according to the provisions of Article 20 of this Circular.
3. Before the expected time of the load adjustment event, the entity implementing the load adjustment program is responsible for sending notifications of the event and the calculated baseline load curve of the load adjustment event (if applicable) to participating customers. The form and content of the notification are specified in the signed Load Adjustment Program Participation Contract with the customer.
4. The entity implementing the load adjustment program is responsible for notifying the start and end times of the load adjustment event to participating customers.
5. After the completion of the load adjustment event, the entity implementing the load adjustment program is responsible for calculating the reduced capacity and electricity consumption and the incentive amount for customers (if applicable).

Article 20.Calculating the baseline load curve for participating customers in the load adjustment program

1. The entity implementing the load adjustment program is responsible for calculating the baseline load curve of the load adjustment event according to the method prescribed in the Procedure for Calculating and Notifying the Baseline Load Curve for Participating Customers in the Load Adjustment Program issued by the Electricity Regulatory Authority.

2. The entity implementing the load adjustment program is responsible for daily updating the metering data from the electronic meters of participating customers in cycles of 30 minutes each and storing it in the database system and the Load Adjustment Program Management System.

3. The entity implementing the load adjustment program is responsible for synchronizing the time of the electronic meters of participating customers with the system for collecting and storing metering data.

4. After completing the calculation of the baseline load curve for customers participating in the demand response program, the entity implementing the demand response program shall be responsible for sending the calculation results to the participating customers according to the agreement in the Demand Response Program Participation Contract.

Article 21.Calculation of electricity savings and incentive amount for customers during demand response events

1. The entity implementing the demand response program shall be responsible for collecting, checking, compiling, and storing data on the Demand Response Program Management System to calculate the electricity savings and power reduction of participating customers in each demand response event.

2. After verifying complete data, the entity implementing the demand response program shall perform calculations for the electricity savings and power reduction, and the incentive amount (if applicable) for participating customers according to the agreed plan in the Demand Response Program Participation Contract.

3. The entity implementing the demand response program shall be responsible for notifying the calculation results of the electricity savings and power reduction, and the incentive amount (if applicable) to participating customers in the demand response program.

4. Participating customers in the demand response program shall be responsible for reviewing and confirming the calculation results as the basis for the entity implementing the demand response program to settle the incentive amount (if applicable).

Chapter IV

MONITORING, EVALUATION AND REPORTING RESULTS

IMPLEMENTATION OF THE LOAD ADJUSTMENT PROGRAM

Article 22.Monitoring and evaluating the implementation of the demand response program

1. The Electricity Regulatory Authority shall be responsible for organizing the monitoring and evaluation of the implementation of demand response programs.

2. The entity implementing the demand response program shall be responsible for storing information and data serving the monitoring and evaluation of the implementation of the demand response program, including the following main contents:

a) Customer registration files for participation in the demand response program;

b) Demand Response Program Participation Contracts between the entity implementing the demand response program and participating customers;

c) Service provision contracts for demand response between the distribution company and the demand response service provider;

d) Notifications to customers regarding the baseline load curve and the execution of demand response events;

đ) Measured data for calculating the electricity savings and power reduction of participating customers in each demand response event;

e) Statistical data of the power system under management at various points before, during, and after the occurrence of demand response events such as power capacity, electricity consumption, load factor, and grid loading level;

g) Calculation results and settlement of incentive amounts for customers.

Article 23.REPORTING THE RESULTS OF IMPLEMENTATION OF THE DEMAND RESPONSE PROGRAM

1. Before January 31 each year, the State Grid Corporation shall report to the Electricity Regulatory Authority, Vietnam Electricity Group, and notify the National Power Dispatch Center about the results of the implementation of demand response programs in the previous year, including the following contents:

a) Details of implemented demand response programs: objectives, content, scope of the demand response program;

b) Details of tariff structures, incentive amounts, or mechanisms encouraging customer participation in the demand response program;

c) Statistics and compilation of results of demand response events implemented in the previous year;

d) Compilation of actual incentive amounts implemented for each demand response program in the year;

đ) Comparison assessment between objectives and results achieved; effectiveness of demand response programs; ratio (%) of power reduction achieved in demand response events compared to the power capacity of the system without implementing demand response programs.

2. Before the 10th day of each month, the State Grid Corporation of Hanoi City, the State Grid Corporation of Ho Chi Minh City, and provincial power companies shall be responsible for supplementing the results of demand response program implementation into the previous month's power system operation reports and reporting to the local Department of Industry and Trade, including the following contents:

a) Statistics and compilation of results of demand response events implemented in the previous month;

b) Compilation of actual incentive amounts implemented for each demand response program of the previous month.

3. Before the 15th day of each month, the State Grid Corporation shall be responsible for supplementing the results of demand response program implementation into the previous month's power system operation reports and reporting to the Electricity Regulatory Authority, Vietnam Electricity Group, and notifying the National Power Dispatch Center, including the following contents:

a) Statistics and compilation of results of demand response events implemented in the previous month;

b) Compilation of actual incentive amounts implemented for each demand response program of the previous month.

Chapter V

IMPLEMENTATION

Article 24.Implementation

1. The Electricity Regulatory Authority shall be responsible for guiding and inspecting the implementation of this Circular.

2. Vietnam Electricity Group, State Grid Corporations, and power companies shall be responsible for promoting and introducing the content, objectives, and benefits of demand response programs issued with this Circular to electricity users within their jurisdiction.

3. Within three months from the date this Circular takes effect, Vietnam Electricity Group shall be responsible for organizing the development and submitting to the Electricity Regulatory Authority for issuance of guidance procedures for implementing demand response programs, including:

a) Registration process for participation in the demand response program;

b) Calculation and notification process of the baseline load curve for participating customers in the demand response program;

c) Implementation process of demand response events;

d) Calculation process of electricity savings and incentive amounts for customers after the execution of demand response events.

Article 25.EFFECTIVE DATE

1. This Circular takes effect from January 2, 2018.

2. During the implementation of this Circular, if there are any issues or difficulties, relevant units are requested to directly reflect them to the Electricity Regulatory Authority for consideration and resolution within their authority, or report to the Ministry of Industry and Trade for resolution.

Appendix 1A

PROGRAM FOR ADJUSTING ELECTRICITY LOAD

APPLYING DIRECT FINANCIAL INCENTIVE MECHANISM

 (Annexed to Circular No. 23/2017/TT-BCT

dated 16 month 11 of the Minister of Industry and Trade in 2017 stipulating the contents and procedures for implementing electricity load adjustment programs)

 

I. CURTAILABLE LOAD PROGRAM (CLP)

(In English: Curtailable Load Program)

1. Customer Objectives

a) The customer objectives of the Curtailable Load Program (CLP) are industrial and commercial customers with flexible production and business chains, medium to large-scale electricity consumption, and equipped with electronic meters capable of remote data collection and storage at 30-minute intervals.

b) Customers participating in the Curtailable Load Program (CLP) do so voluntarily.

2. Program Content

a) The Curtailable Load Program (CLP) operates based on the flexibility of the production and business chains of electricity users. Customers can prioritize retaining critical loads or production lines while actively stopping or reducing electricity usage of other loads during load adjustment events upon request. Customers participating in the Curtailable Load Program (CLP) independently decide the scale and type of loads to stop or reduce when implementing load adjustment events. Customers may adjust their loads automatically or manually depending on agreements with the entity implementing the load adjustment program and the capabilities of their infrastructure and energy management systems.

b) Customers are notified before the implementation of load adjustment events, with at least 24 hours' notice prior to the expected event time. This notification is sent to customers before the event according to the agreed method in the Contract for Participation in the Load Adjustment Program with the entity implementing the load adjustment program.

c) The maximum duration for each load adjustment event does not exceed three hours, depending on the specific load adjustment event and the notification from the entity implementing the load adjustment program. The total number of planned load adjustment events in a year is specified in the Contract for Participation in the Load Adjustment Program based on the conditions of the power system and the customer's production and business activities.

3. Incentive Mechanism

The incentive mechanism for the Curtailable Load Program (CLP) is based on the actual reduced capacity and electricity consumption of customers, as prescribed by competent state authorities.

II. EMERGENCY DEMAND RESPONSE PROGRAM (EDRP)

(In English: Emergency Demand Response Program)

1. Customer Objectives

a) The customer objectives of the Emergency Demand Response Program (EDRP) are industrial and commercial customers with flexible production and business chains, large-scale electricity consumption, rapid ability to change or reduce electricity demand, and equipped with electronic meters capable of remote data collection and storage at 30-minute intervals.

b) Customers participating in the Emergency Demand Response Program (EDRP) do so voluntarily.

2. Program Content

a) The Emergency Demand Response Program (EDRP) operates based on the flexibility of the production and business chains of electricity users. Customer loads must be able to quickly adjust and reduce electricity demand after receiving notifications of load adjustment events from the entity implementing the load adjustment program. Customers can prioritize retaining critical loads or production lines while actively stopping or reducing electricity usage of other loads during load adjustment events upon request. Customers participating in the Emergency Demand Response Program (EDRP) independently decide the scale and type of loads to stop or reduce when implementing load adjustment events. Customers may adjust their loads automatically or manually depending on agreements with the entity implementing the load adjustment program and the capabilities of their infrastructure and energy management systems.

b) Customers are notified before the implementation of load adjustment events, with at least two hours' notice prior to the expected event time. This notification is sent to customers before the event according to the agreed method in the Contract for Participation in the Load Adjustment Program with the entity implementing the load adjustment program.

c) The maximum duration for each load adjustment event does not exceed three hours, depending on the specific load adjustment event and the notification from the entity implementing the load adjustment program. The total number of planned load adjustment events in a year is specified in the Contract for Participation in the Load Adjustment Program based on the conditions of the power system and the customer's production and business activities.

3. Incentive Mechanism

Customers participating in the Emergency Demand Response Program (EDRP) will receive higher incentive mechanisms compared to those for customers participating in the Load Reduction Program (CLP), as established by competent state authorities.

 

 

ANNEX 1B

PROGRAM FOR ADJUSTING ELECTRICITY LOAD

APPROVAL OF THE ELECTRICITY PRICING MECHANISM

 (Adopted along with Circular No.23/2017/TT-BCT dated 16  month   11                    year 2017 issued by the Minister of Industry and Trade stipulating the contents and procedures for implementing demand response programs)

I. TWO-PART ELECTRICITY PRICE PROGRAM

1. Customer Objectives

The target customers for the two-part electricity price program include those using electricity under the Time-of-Use (TOU) pricing scheme and have installed smart meters capable of remote data collection.

2. Program Content

The two-part electricity price program is designed to provide customers with an electricity price structure consisting of two components (energy price and capacity price). This pricing structure aims to enhance price signals, encourage customers to change their electricity consumption habits, and shift their electricity usage demands to flatten the load curve and reduce peak system loads.

The capacity used to calculate the capacity price is the highest recorded consumption capacity of the customer during the billing cycle.

3. Electricity Pricing Mechanism

a) The two-part electricity price program uses an incentive mechanism through pricing, allowing customers to decide on their own level of electricity demand reduction, particularly during peak hours, to lower electricity purchase costs. There are no direct financial incentives in this program;

b) The electricity pricing mechanism for the two-part electricity price program is established by competent state authorities.

II. REAL-TIME MAXIMUM CAPACITY PRICE PROGRAM

1. Customer Objectives

a) Industrial and commercial electricity users who have installed smart meters capable of remote data collection every 30 minutes can participate in the program;

b) Participation in the real-time maximum capacity price program is entirely voluntary on the part of the customer.

2. Program Content

- The real-time maximum capacity price program is a pricing scheme that includes a significantly higher electricity price component than the Time-of-Use (TOU) pricing during system peak times, directly influencing customer electricity usage habits and encouraging customers to proactively adjust or reduce their electricity demand during peak system times;

- Participating customers actively and independently determine the scale of load they can adjust or reduce to avoid being charged extremely high prices when using electricity during peak system times. By reducing electricity usage during peak times, customers avoid higher charges and reduce their monthly electricity bills.

3. Electricity Pricing Mechanism

a) The real-time maximum capacity price includes the Time-of-Use (TOU) pricing based on daily usage and a special price component applied during system peak times as announced by the program implementation unit;

b) The electricity pricing mechanism for the real-time maximum capacity price program is established by competent state authorities.

ANNEX 1C

PROGRAM FOR ADJUSTING ELECTRICITY LOAD

USE OF NON-COMMERCIAL INCENTIVES

AND VOLUNTARY LOAD MANAGEMENT PROGRAMS

 (Attached to Circular No.  23/2017/TT-BCT dated16  month   11   year 2017 issued by the Minister of Industry and Trade stipulating the contents and procedures for implementing demand response programs)

I. LOAD MANAGEMENT PROGRAM USING NON-COMMERCIAL INCENTIVES

1. Customer Objectives

Industrial and commercial electricity users with medium to large-scale loads who have been equipped with smart meters capable of remote data collection, especially those with internal power supply sources. Eligible participants must be able to reduce electricity consumption by up to 30 minutes from receiving notification from the program implementation unit and must be capable of reducing consumption by 10% to 20% compared to their actual load requirements under normal operating conditions.

2. Program Content

Chapter I regulates the load adjustment program using non-commercial incentives, which is entirely dependent on the cooperation and voluntary participation of electricity consumers. When participating in an agreement with the entity implementing load adjustment, based on the conditions of the power system, electricity consumers may be prioritized to apply one of the following contents: improving service quality, priority in electricity supply, and exemption from rotating outages when the power system experiences a shortage of sources or overload, except in cases of accidents or automatic load shedding.

3. Incentive Mechanism

There is no specific financial incentive mechanism for customers participating in this program. The benefit for customers participating in the program is the priority in enhancing the reliability of electricity supply and customer service quality in accordance with the actual conditions of the power system.

II. VOLUNTARY LOAD ADJUSTMENT PROGRAM

1. Customer Objectives

All electricity consumers can voluntarily register to participate in the voluntary load reduction program.

2. Program Content

The voluntary load reduction program is a call for customers to voluntarily reduce their electricity consumption during harsh weather conditions or shortages in power supply, leading to an imbalance between supply and demand.

3. Incentive Mechanism

There is no specific financial incentive mechanism for customers participating in this program. Customers voluntarily adjust their electricity usage habits or proactively reduce their load during peak times for the common good of the power system and society as a whole.

DIRECTOR OF THE STATE BANK OF VIETNAM

MODEL CONTRACT

PARTICIPATION IN THE LOAD ADJUSTMENT PROGRAM

APPLYING DIRECT FINANCIAL INCENTIVE MECHANISM

 (Attached to Circular No.  23/2017/TT-BCT dated 16November 2017 of the Minister of Industry and Trade stipulating the content and procedures for implementing load adjustment programs)

 

CONTRACT

PARTICIPATION IN THE LOAD ADJUSTMENT PROGRAM

Between

THE ENTITY IMPLEMENTING THE LOAD ADJUSTMENT PROGRAM

And

[CUSTOMER]

……………..

 

 

 

 

…, day … month … year …

 

 

 

 

SOCIALIST REPUBLIC OF VIETNAM

Independence - Freedom - Happiness

 

CONTRACT

Participation in the Load Adjustment Program

 

Number: … / … & …

 

Based on the Civil Code on … day … month … year …;

Based on 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;

Based on Circular No. ……/2017/TT-BCT dated … day … month … year 2017 of the Ministry of Industry and Trade stipulating the content and procedures for implementing load adjustment programs

Based on the capacity and needs of both parties,

Today, on … day … month … year … at …, we include:

Party A: [Name of the entity implementing the load adjustment program]

Represented by: ...

Position: ...

Address: …

Telephone: ...; Fax: ...

Tax code: ...

Account number: ...

Party B: [Name of participating customer]

Represented by: ...

Position: ...

Address: ...

Telephone: ...; Fax: ...

Tax code: ...

Account number: …

Both parties agree to enter into a Contract for Participation in the Load Adjustment Program with the following contents:

Article 1. Interpretation of terms

In this Contract, the following terms are understood as follows:

1. Participating Parties are the entity implementing the load adjustment program and the electricity consumer participating in the load adjustment program.

2. List of Participating Loads is a list of loads of the electricity consumer, the maximum capacity that can be reduced, and the time of participation in the load adjustment program.

3. Baseline load curve of the electricity demand adjustment event (hereinafter referred to as baseline load curve) is the electricity load curve of electricity users constructed and forecasted from historical metering data collected every 30 minutes. The baseline load curve characterizes the trend and habits of electricity consumption by electricity users on a specific day or at a particular time expected to occur during the electricity demand adjustment event. The baseline load curve is used to calculate the reduced power and energy consumption of users after the completion of the electricity demand adjustment event.

4. Load Adjustment Limit is the maximum load reduction capacity determined separately for each participant in the load adjustment program. The load adjustment limit is agreed upon by the entity implementing the load adjustment program and the customer in the Contract for Participation in the Load Adjustment Program.

5. Management system for implementing electricity demand adjustment programs is a tool consisting of software, hardware, and electronic information portals built and managed by entities implementing electricity demand adjustment programs to support and monitor the implementation of these programs.

6. Encouragement Payment is the amount of money received by the electricity consumer from the entity implementing the load adjustment program after each load adjustment event and is calculated based on the amount of electricity reduced by the customer during that event according to the encouragement mechanism applied to the program and regulated by the competent state management agency.

7. Reduced Electricity Consumption of the customer is the amount of electricity reduced by the customer participating in the load reduction program during each load adjustment event.

8. Electricity demand adjustment event is the period during which the customer participating in the load adjustment program reduces their electricity consumption after receiving notification from the entity implementing the load adjustment program.

9. Notification of Load Adjustment Event is the notification sent by the entity implementing the load adjustment program to participating customers about the content of an upcoming load adjustment event.

10. Contract to participate in electricity demand adjustment programs is the Contract between the electricity consumer registering to participate in the load adjustment program and the entity implementing the load adjustment program to participate in the load adjustment program.

Article 2. General Obligations

Party A and Party B shall implement the load adjustment program in accordance with the contents stipulated in the following documents:

1. Circular No. .../2017/TT-BCT dated ..., ..., 2017 on the contents and procedures for implementing load adjustment programs.

2. The guidance procedures for implementing the load adjustment program issued by the Electricity Regulatory Authority, including:

a) Registration process for participation in the demand response program;

b) Calculation and notification process of the baseline load curve for participating customers in the demand response program;

c) Implementation process of demand response events;

d) Calculation process of electricity savings and incentive amounts for customers after the execution of demand response events.

3. Legal documents related to the load adjustment program issued by competent authorities and the agreed contents in this Contract.

Article 3. Rights and Obligations of Party A

1. Coordinate and guide Party B to determine the list of loads participating in the program based on Party B's registration according to the form specified in Appendix No. 5 attached to this Contract.

2. Develop plans and schedules for load adjustment events.

3. Establish the Baseline Load Curve according to the form specified in Appendix No. 2 attached to this Contract and notify Party B at least (…) hours before the expected time of the load adjustment event.

4. Send the load adjustment event notification according to the form specified in Appendix No. 1 of this Contract to Party B at least (…) hours before the expected time of the load adjustment event.

5. Notify Party B about the amount of electricity saved by Party B according to the form specified in Appendix No. 3 and the incentive payment that Party B receives according to the form specified in Appendix No. 4 attached to this Contract during the load adjustment event.

6. Arrange staff to coordinate with Party B in participating in the load adjustment program as specified in Appendix No. 6 attached to this Contract.

7. Monthly, notify and fully pay the incentive payments to Party B.

8. Other rights and obligations agreed upon by both parties.

Article 4. Rights and Obligations of Party B

1. Adjust and reduce loads in accordance with the contents in Party A's load adjustment event notification.

2. Party B shall notify Party A at least (…) hours before the expected time of the load adjustment event whether it will participate in the load adjustment event.

3. Coordinate to perform tasks related to the load adjustment program as guided by Party A.

4. Arrange staff to coordinate with Party A in participating in the load adjustment program as specified in Appendix No. 7 attached to this Contract.

5. Have the right to request Party A to fully pay the incentive payments as notified by Party A.

6. Other rights and obligations agreed upon by both parties.

Article 5. Financial Mechanism and Payment Method

1. Apply the financial mechanism of the load adjustment program issued by competent authorities.

2. Party A shall be responsible for notifying and fully paying monthly incentive payments to Party B.

3. The method and deadline for paying incentive payments shall be mutually agreed upon by both parties in compliance with current laws.

Article 6. List of Loads Participating in the Load Adjustment Program

1. Before implementing the load adjustment program, Party B shall submit the list of loads participating in the load adjustment program according to the form specified in Appendix No. 5 attached to this Contract to Party A.

2. During the implementation of the program, the parties may agree to adjust and supplement the list of loads participating in the program through a mutual agreement document which is an appendix to this Contract.

Article 7. Dispute Resolution

1. The penalty mechanism for breach of contract shall not be applied when Party B does not participate in adjusting the electricity load as notified by Party A.

2. In case of disputes arising, both parties shall resolve them through negotiation. If they cannot resolve the dispute themselves, they may request the Electricity Regulatory Authority to intervene. Should one party or both parties disagree with the resolution provided by the Electricity Regulatory Authority, they have the right to refer the matter to the Court or Commercial Arbitration in accordance with the provisions of the law.

Article 8. Forms of Communication

1. All notifications or communications between the parties during the implementation of the Load Adjustment Program shall be made using one of the following methods:

a) Postal mail to the specific addresses listed in Appendix No. 8 attached hereto;

b) Telephone or SMS to the specific telephone number listed in Appendix No. 8 of this Contract;

c) Facsimile to the specific facsimile number listed in Appendix No. 8 attached hereto;

d) Email to the specific email address listed in Appendix No. 8 attached hereto.

2. The parties may change their contact addresses, telephone numbers, facsimile numbers, or email addresses if necessary and must immediately notify the other party thereof.

3. Besides the communication methods prescribed in Clause 1 of this Article, the parties may also communicate through the Load Adjustment Program Management System during the implementation of the Program or other specific methods that ensure the most convenient information exchange for both parties during the implementation. Party A is responsible for guiding Party B on how to use the Load Adjustment Program Management System before officially implementing the Load Adjustment Program.

Article 9. Implementation Provisions

1. This Contract shall be effective from the date of … month … year … until the date of … month … year ….

2. During the implementation period, if either party wishes to terminate, amend, or supplement the contents already signed in the Contract, they must notify the other party at least 15 days in advance to jointly resolve the matter.

3. This Contract shall be made in four copies, each having equal legal force, with each party retaining two copies./.