CIRCULAR

(vi) Agreement on the amount of reserve left behind and the deadline for selling the purchased cash foreign currency to the authorized credit institution. method for determining and level of costs for stopping and resuming power supply

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 promulgated on December 3, 2004 and the Law amending and supplementing certain provisions of the Electricity Law on November 20, 2012;

Pursuant to Decree No. 137/2013/NĐ-CP dated October 21, 2013 of the Government detailing implementation of certain provisions of the Law 3. Amend Clause 3 Article 2 as follows:enters into force and the Law amending and supplementing certain Articles of the Law 3. Amend Clause 3 Article 2 as follows:"3. A pumped-storage hydropower plant is a hydropower plant that uses water storage systems at different elevation levels to store hydro energy and generate electricity, where water is pumped from low-elevation storage areas to higher-elevation storage areas during non-generation periods to store hydro energy and released through turbines to generate electricity when the power system requires it."

At the proposal of the Director of the Electricity Regulatory Authority under the Ministry of Industry and Trade;

The Minister of Industry and Trade issues this Circular to prescribe the method for determining and level of costs for stopping, resuming power supply.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular prescribes the method for determining and level of costs for stopping and resuming power supply that organizations and individuals related must pay to the electricity seller to implement stopping and resuming power supply in the following cases:

1. Non-emergency stopping and reducing power supply includes:

a) Stopping power supply at the request of organizations and individuals related to ensure safety for construction works;

b) Stopping or reducing power supply levels at the request of the electricity buyer.

2. Stopping power supply due to violations of laws by organizations and individuals, where the electricity seller stops power supply in cases prescribed in the Regulations on Conditions and Procedures for Stopping and Reducing Power Supply Levels issued by the Minister of Industry and Trade.

Article 2. Applicability

1. Electricity seller.

2. Electricity buyer requesting the electricity seller to stop power supply.

3. Organizations and individuals requesting the electricity seller to stop power supply to ensure safety for construction works.

4. Organizations and individuals violating laws, where the electricity seller stops power supply in cases prescribed in the Regulations on Conditions and Procedures for Stopping and Reducing Power Supply Levels issued by the Minister of Industry and Trade.

5. Vietnam Electricity Corporation Group.

Article 3. Explanation of Terms

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

1. The seller of electricity is the power unit implementing stopping and resuming power supply, including: Distribution companies, Distribution and Retail Companies.

2. The buyer of electricity is an organization or individual purchasing electricity for use or for retailing electricity to end-users, including:

a) Distribution and Retail Companies;

b) End-users.

3. Unit 分级 distribution is a power unit licensed to operate in the distribution and sale of electricity sector, including:

1. State-owned Enterprise of Electricity;
2. Provincial Electricity Company under the State-owned Enterprise of Electricity directly under the Central Government (hereinafter referred to as Provincial Electricity Company);
3. District-level Electricity Company under the Provincial Electricity Company of Hanoi City, Ho Chi Minh City.

4. Distribution and Retail Companies is a power unit licensed to operate in the distribution and retail of electricity, purchasing wholesale electricity from Distribution Companies to sell retail electricity to end-users.

Article 4. Collection and accounting of costs for stopping and resuming power supply

1. The electricity seller is permitted to collect costs for stopping and resuming power supply as prescribed in this Circular. These costs aim to compensate the electricity seller for implementing stopping and resuming power supply. Revenue from collecting costs for stopping and resuming power supply is recorded in the business revenue of the electricity seller (other production and business revenue) and subject to tax as prescribed.

2. Costs for stopping and resuming power supply are collected as follows:

a) Collected before stopping power supply for the subjects prescribed in Clause 2 and Clause 3, Article 2 of this Circular;

b) Collected before resuming power supply for the subjects prescribed in Clause 4, Article 2 of this Circular.

Chapter II

METHODS FOR DETERMINING AND LEVELS OF COSTS

STOPPING, RESTORATION OF POWER SUPPLY

Article 5. Principles for calculating the level of costs for stopping and restoration of power supply

1. The formula for calculating the level of costs for one instance of stopping and restoration of power supply is as follows:

Where:

- T: The amount that the electricity seller is permitted to collect to carry out the stopping and restoration of power supply;

- M: The base level of costs for stopping and restoration of power supply as stipulated in Article 6 of this Circular;

- k: Adjustment factor according to distance as stipulated in Article 7 of this Circular;

- n: Adjustment factor according to region as stipulated in Article 8 of this Circular.

2. The level of costs for one instance of stopping and restoration of power supply prescribed in this Article does not include value-added tax (VAT).

Article 6. Base level of costs for stopping and restoration of power supply (M)

1. Formula for calculating the base level of costs for stopping and restoration of power supply (M)

The base level of costs for stopping and restoration of power supply (M) is the level of costs for one instance of stopping and restoration of power supply in the plain area, with a distance from the direct implementing unit's office to the implementation location being 5 km or less, determined by the following formula:

Where:

- Labor cost is calculated based on factors: the basic salary of Vietnam Electricity Corporation for one day's work, wage coefficient for skilled workers, mobility allowance coefficient, and the number of days for one instance of switching off and restoring power supply according to voltage levels;

- Travel expenses: Determined as the travel expenses for one instance of stopping and restoration of power supply in the plain area, with a distance from the direct implementing unit's office to the implementation location being 5 km or less.

2. The base level of costs for stopping and restoration of power supply (M) is specified as follows:

a) At points with voltage up to 0.38 kV: M = 98,000 VND;

b) At points with voltage above 0.38 kV to 35 kV: M = 231,000 VND;

c) At points with voltage above 35 kV: M = 339,000 VND.

Article 7. Adjustment factor according to distance (k)

1. The adjustment factor according to distance (k) is determined based on the distance from the direct implementing unit's office to the implementation location for stopping and restoration of power supply.

2. For customers using electricity for living purposes, the adjustment factor according to distance k = 1, regardless of the distance from the direct implementing unit's office to the implementation location for stopping and restoration of power supply.

3. For customers purchasing electricity for non-living purposes and organizations or individuals requesting the cessation of power supply, the adjustment factor according to distance is applied as follows:

a) Up to 5 km: Factor k = 1;

b) Over 5 km to 10 km: Factor k = 1.14;

c) Over 10 km to 20 km: Factor k = 1.28;

d) Over 20 km to 30 km: Factor k = 1.42;

e) Over 30 km to 50 km: Factor k = 1.56;

f) Over 50 km: Factor k = 1.70.

Article 8. Adjustment factor according to region (n)

1. The adjustment factor according to region (n) is determined based on the area where stopping and restoration of power supply takes place.

2. For customers using electricity for living purposes, the regional factor n = 1, regardless of whether it is a plain, mountainous, or island area.

3. For customers purchasing electricity for non-living purposes and organizations or individuals requesting the cessation of power supply, the adjustment factor according to region (n) is applied as follows:

a) In plain areas: Factor n = 1;

b) In mountainous and island areas: Factor n = 1.15.

Chapter III

IMPLEMENTATION

Article 9. Implementation Organization

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

2. In cases where changes in salary policy lead to the costs for stopping and restoration of power supply changing by 30% or more compared to the current level, Vietnam Electricity Corporation shall be responsible for updating and recalculating the costs for stopping and restoration of power supply according to Chapter II of this Circular, reporting to the Electricity Regulatory Authority for research, proposal, and submission to the Minister of Industry and Trade for appropriate revision of the costs for stopping and restoration of power supply.

Article 10. Effective Date

1. This Circular takes effect from October 30, 2020. Circular No. 25/2014/TT-BCT dated August 6, 2014 of the Minister of Industry and Trade prescribing methods for determining the level of costs for stopping and restoration of power supply ceases to be effective from the date this Circular takes effect.

2. During the implementation of this Circular, if there are difficulties or new issues arising, relevant units shall be responsible for reporting to the Electricity Regulatory Authority for research, proposal, and submission to the Minister of Industry and Trade for appropriate amendment and supplementation of this Circular.