Circular No. 24/2019/TT-BCT amending and supplementing certain Articles of Circular No. 45/2018/TT-BCT dated November 15, 2018 of the Minister of Industry and Trade on the operation of the competitive wholesale electricity market and amending and supplementing certain Articles of Circular No. 56/2014/TT-BCT dated December 19, 2014 of the Minister of Industry and Trade on the method for determining the electricity generation price, the procedure for inspecting power purchase and sale contracts.

           

CIRCULAR

Amending and supplementing certain Articles of Circular No. 45/2018/TT-BCT dated November 15, 2018, issued by the Minister of Industry and Trade, stipulating the competitive wholesale electricity market, and amending and supplementing certain Articles of Circular No. 56/2014/TT-BCT dated December 19, 2014, issued by the Minister of Industry and Trade, stipulating the method for determining electricity generation prices and the procedure for inspecting power purchase and sale contracts. operation
The Minister of Industry and Trade issues this Circular to amend and supplement certain Articles of Circular No. 45/2018/TT-BCT dated November 15, 2018, issued by the Minister of Industry and Trade, stipulating the operation of the competitive wholesale electricity market, and to amend and supplement certain Articles of Circular No. 56/2014/TT-BCT dated December 19, 2014, issued by the Minister of Industry and Trade, stipulating the method for determining electricity generation prices and the procedure for inspecting power purchase and sale contracts.
Amending and supplementing certain Articles of Circular No. 45/2018/TT-BCT dated November 15, 2018, issued by the Minister of Industry and Trade, stipulating the operation of the competitive wholesale electricity market, and amending and supplementing certain Articles of Circular No. 56/2014/TT-BCT dated December 19, 2014, issued by the Minister of Industry and Trade, stipulating the method for determining electricity generation prices and the procedure for inspecting power purchase and sale contracts as follows:

 

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;

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;

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;

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

Amending Clause 13 of Article 3 as follows:

Article 1. 13. Ancillary services

1. are services for secondary frequency control, rapid start-up, operational reserve to ensure system security, voltage adjustment, and black start.”

“Amending Clause 14 of Article 3 as follows: Ancillary service for frequency regulation

2. is an ancillary service serving secondary frequency control according to the Power System Regulation issued by the Ministry of Industry and Trade.”

“14. Amending Article 7 as follows: "Article 7. Registration to participate in the electricity market

3. 1. For Electricity Generation Units

a) An Electricity Generation Unit participates in the electricity market when it meets the following requirements:

- Valid power business license in the field of electricity generation;

- Completion of acceptance and commissioning of systems as prescribed in Clause 5, Article 4 of this Circular;

- Completion of signing power purchase and sale contracts and the certificate of commercial operation date of the power plant;

- Agreement on the representative unit for bidding price for a cascade hydropower plant group (in case the Electricity Generation Unit represents a cascade hydropower plant group).

b) Seven working days before the latest date required to participate in the electricity market as stipulated in Article 6 of this Circular, the Electricity Generation Unit shall submit one set of registration documents for each power plant to the System Operator and Market Operator through the electronic market information website. The System Operator and Market Operator shall guide units on the components of the registration documents for Electricity Generation Units.

2. For Wholesale Electricity Purchasers

a) A Wholesale Electricity Purchaser participates in the electricity market when it meets the following requirements:

- Valid power business license;

- Compliance with regulations on metering at the boundary points of the purchaser's facilities as prescribed;

- Completion of acceptance and commissioning of remote data collection systems at the boundary metering points within the management scope of the unit, internal market information network, and digital signature.

b) Seven working days before the latest date required to participate in the electricity market as stipulated in Point b, Clause 2, Article 6 of this Circular, the Wholesale Electricity Purchaser shall submit one set of registration documents to the System Operator and Market Operator through the electronic market information website. The System Operator and Market Operator shall guide units on the components of the registration documents for Wholesale Electricity Purchasers.”

Amending Article 16 as follows:

"Article 16. Determination of Contract Volume

4. a) The Electricity Generation Unit and the Electricity Purchaser shall agree and specify in the power purchase and sale contract the ratio of electricity volume settled at the contract price within the framework prescribed in Point b, Clause 1 of this Article or the annual contract volume (or each year within a multi-year cycle);

Based on the agreed annual contract volume in the power purchase and sale contract, the Electricity Generation Unit and the Electricity Purchaser shall calculate and agree on the allocation of the contract volume to each month of the year. In case the parties cannot agree on the monthly contract volume, the System Operator and Market Operator shall calculate the monthly contract volume according to the provisions of this Circular.

1. General Provisions

b) The ratio of electricity volume settled at the contract price shall not exceed 100% and shall not be less than 60%;

c) For power plants with fuel consumption obligations and have a document from the competent state management agency allowing the transfer of fuel consumption obligations from the fuel supply contract to the power purchase and sale contract: The Electricity Generation Unit and the Electricity Purchaser shall agree on the annual contract volume, where the annual contract volume shall not be lower than the corresponding electricity volume based on the annual fuel consumption obligation of the power plant and taking into account the availability of the power plant in the year.

2. For power plants that have signed contracts with Vietnam Electricity Corporation:

a) Annual contract volume:

- In case the Electricity Generation Unit and Vietnam Electricity Corporation agree on the ratio of electricity volume settled at the contract price for year N+1 (without agreement on the annual contract volume and monthly contract volume in year N+1) as stipulated in Point a, Clause 1 of this Article: Before November 15 of year N, the units shall provide this information to the System Operator and Market Operator to calculate the annual contract volume for year N+1 according to Clause 1, Article 27 of this Circular;

- In case the Electricity Generation Unit and Vietnam Electricity Corporation agree on the annual contract volume for year N+1 (without agreement on the monthly contract volume in year N+1) as stipulated in Point a, Clause 1 of this Article: Before November 15 of year N, the units shall provide this information to the System Operator and Market Operator to calculate the monthly contract volume in year N+1 according to Clause 2, Article 27 of this Circular;

- In the case where the Power Generation Unit and the Vietnam Electricity Group agree on the electricity quantity payment ratio according to the contract price for year N+1 (without agreement on the annual contract volume and monthly contract volumes within year N+1) pursuant to Point a Clause 1 of this Article: Before November 15 of year N, the units shall provide such data to the System Operation Unit and the electricity market to calculate the annual contract volume for year N+1 in accordance with Clause 1 of Article 27 of this Circular;

- In the case where the Power Generation Unit and the Vietnam Electricity Group agree on the annual contract volume for year N+1 (without agreement on the monthly contract volumes within year N+1) pursuant to Point a Clause 1 of this Article: Before November 15 of year N, the units shall provide such data to the System Operation Unit and the electricity market to calculate the monthly contract volumes within year N+1 in accordance with Clause 2 of Article 27 of this Circular;

- In case the Power Generation Unit and Vietnam Electricity Corporation do not reach an agreement on the electricity volume to be settled at the price of the N+1 year contract and the contracted electricity volume for the N+1 year to supply to the System Operation Unit and the electricity market before November 15 of year N: Implement according to the provisions of Clause 5 of this Article.

b) Monthly contracted volume:

- In case the Power Generation Unit and Vietnam Electricity Corporation agree on the monthly contracted volume for each month of the year as stipulated in Point a of Clause 1 of this Article: Before November 15 of year N, the units provide the monthly contracted volume data for year N+1 to the System Operation Unit and the electricity market for allocation into each trading cycle as prescribed in Article 38 of this Circular. During year N+1, if the Power Generation Unit and Vietnam Electricity Corporation reach an agreement on adjusting the monthly contracted volume for month M, the units are responsible for providing the adjusted monthly contracted volume to the System Operation Unit and the electricity market before the 20th day of month M-1;

- In case the Power Generation Unit and Vietnam Electricity Corporation do not reach an agreement on the monthly contracted volume for each month of the year: Based on the annual contracted volume as stipulated in Point a of this Clause, the System Operation Unit and the electricity market calculate the monthly contracted volume according to the provisions of Clause 2 of Article 27 of this Circular for the Power Generation Unit and Vietnam Electricity Corporation to implement.

c) Contracted volume for each trading cycle: The System Operation Unit and the electricity market calculate the contracted volume for each trading cycle based on the monthly contracted volume as stipulated in Point b of this Clause and according to the principles prescribed in Article 38 of this Circular.

3. For power plants that have signed contracts with Vietnam Electricity Corporation and allocated to the Wholesale Purchasing Unit and power plants that have signed contracts with the Wholesale Purchasing Unit:

a) The annual and monthly contracted volumes of the power plant comply with the provisions of Clause 1 of this Article and are calculated according to the principles prescribed in Clause 2 of this Article;

b) In case the Power Generation Unit and the Electricity Purchasing Unit do not reach an agreement on the electricity volume to be settled at the contract price and the annual contracted volume of the power plant: Implement according to the provisions of Clause 5 of this Article;

c) The contracted volume for each trading cycle of the power plant is determined by the System Operation Unit and the electricity market in the monthly operation plan based on the allocation of the monthly contracted volume into trading cycles during the month as prescribed in Article 40 of this Circular;

4. For new power plants (commercial operation after the effective date of this Circular):

a) Ninety days before the expected commercial operation date of the power plant, the Power Generation Unit and the Electricity Purchasing Unit are responsible for agreeing and reaching consensus in the power purchase and sale contract regarding the ratio of electricity volume to be settled at the contract price or the annual contracted volume as stipulated in Point a of Clause 1 of this Article;

b) Monthly contracted volume:

- In case the Power Generation Unit and the Electricity Purchasing Unit agree and reach consensus in the power purchase and sale contract on the monthly contracted volume for each month of the year: Before the 20th day of month M, the units provide the monthly contracted volume data for month M+1 to the System Operation Unit and the electricity market for allocation into each trading cycle in month M+1;

- In case the Power Generation Unit and the Electricity Purchasing Unit do not reach an agreement on the monthly contracted volume for each month of the year: Based on the annual contracted volume as stipulated in Point a of this Clause, the System Operation Unit and the electricity market calculate the monthly contracted volume according to the provisions of Clause 2 of Article 27 of this Circular.

c) Contracted volume for each trading cycle: Except where otherwise agreed in the power purchase and sale contract, the contracted volume for each trading cycle of the power plant is determined by the System Operation Unit and the electricity market in the monthly operation plan based on the allocation of the monthly contracted volume into trading cycles during the month as prescribed in Articles 38 and 40 of this Circular.

5. For power plants that have signed contracts but cannot reach an agreement on the ratio of electricity volume to be settled at the contract price or the annual contracted volume for year N+1 with Vietnam Electricity Corporation or the Wholesale Purchasing Unit as stipulated in Clause 1 of this Article to supply to the System Operation Unit and the electricity market before November 15 of year N:

a) The Power Generation Unit and the Electricity Purchasing Unit are responsible for reporting to the Electricity Regulatory Authority and providing to the System Operation Unit and the electricity market before November 20 each year the following contents:

- Issues that the two units have not reached an agreement on, arguments of the unit regarding issues not yet agreed upon;

- Summary of actual generated electricity volume and contracted electricity volume over the past five years;

- Expected abnormalities in the next year;

- Proposals of the unit regarding the ratio of electricity volume to be settled at the contract price and the annual contracted volume.

b) Based on the reports from the Power Generation Unit and the Electricity Purchasing Unit, the System Operation Unit and the electricity market are responsible for proposing options for the ratio of electricity volume to be settled at the contract price for the coming year as stipulated in Point b of Clause 1 of this Article and report to the Electricity Regulatory Authority;

c) The Electricity Regulatory Authority takes the lead and organizes meetings with the Power Generation Unit and the Electricity Purchasing Unit for the units to negotiate and reach an agreement on the ratio of electricity volume to be settled at the contract price or the annual contracted volume as stipulated in Clause 1 of this Article;

d) In case the parties still do not reach an agreement on the ratio of electricity volume to be settled at the contract price or the annual contracted volume: Before December 10 of year N, based on the calculation results of the System Operation Unit and the electricity market as stipulated in Point b of this Clause, the Electricity Regulatory Authority announces the ratio of electricity volume to be settled at the contract price for year N+1 for the parties to implement during the period of disagreement in the power purchase and sale contract:

- The ratio of electricity volume to be settled at the contract price announced by the Electricity Regulatory Authority within the framework prescribed in Point b of Clause 1 of this Article;

- BASED ON THE OUTPUT QUANTITY RATIO FOR CONTRACT PRICE PUBLISHED BY THE Electricity Market Regulation Agency, the System Operator and Electricity Market shall be responsible for calculating the annual and monthly contract quantities in accordance with Article 27 of this Circular and notify the Power Generation Unit and the Power Purchasing Unit to implement in accordance with the market operation regulations set forth in this Circular;

d) DURING THE PERIOD OF APPLYING THE OUTPUT QUANTITY RATIO FOR CONTRACT PRICE PUBLISHED BY THE Electricity Market Regulation Agency, the Power Generation Unit and the Power Purchasing Unit continue to negotiate the remaining monthly contract quantities for the year. In case the Power Generation Unit and the Power Purchasing Unit reach an agreement on the remaining monthly contract quantities for the year and provide such information to the System Operator and Electricity Market: The Units shall report to the Electricity Market Regulation Agency about the agreed contract quantity and implementation time;

e) BEFORE JUNE 15 OF THE OPERATING YEAR, the Electricity Market Regulation Agency shall take the lead in organizing meetings with Power Generation Units and Power Purchasing Units that have not reached an agreement on the contract quantity to clarify each party's proposals, negotiate, and reach an agreement on the remaining monthly contract quantities for the year. In case the Power Generation Unit and the Power Purchasing Unit still fail to reach an agreement:

- CONTINUE TO APPLY THE TEMPORARY OUTPUT QUANTITY RATIO FOR CONTRACT PRICE PUBLISHED BY THE Electricity Market Regulation Agency AT POINT d OF THIS CLAUSE until both parties reach an agreement or until the end of the operating year, whichever comes first;

- CONTINUE TO NEGOTIATE THE OUTPUT QUANTITY RATIO FOR CONTRACT PRICE AND THE CONTRACT QUANTITY. IN CASE BOTH PARTIES REACH AN AGREEMENT, THE UNITS SHALL NOTIFY THE SYSTEM OPERATOR AND ELECTRICITY MARKET ACCORDING TO THE SCHEDULE OF THE MONTHLY MARKET OPERATION PLAN AND REPORT TO THE ELECTRICITY MARKET REGULATION AGENCY.";

6. ADJUSTMENT OF CONTRACT QUANTITY:

a) ADJUSTMENT OF MONTHLY CONTRACT QUANTITY:

- IN CASE THE POWER GENERATION UNIT AND THE POWER PURCHASING UNIT HAVE AGREED IN THE POWER PURCHASE AND SALE CONTRACT ON THE MONTHLY CONTRACT QUANTITY OR THE CONTENTS REGARDING THE ADJUSTMENT OF MONTHLY CONTRACT QUANTITY (ADJUSTMENT CASES, PRINCIPLES OF ADJUSTMENT) PRIOR TO THE OPERATING MONTH: THE ADJUSTMENT OF MONTHLY CONTRACT QUANTITY SHALL BE IMPLEMENTED IN ACCORDANCE WITH THE POWER PURCHASE AND SALE CONTRACT, AND IS NOT WITHIN THE SCOPE OF APPLICATION OF THIS CIRCULAR. THE UNITS SHALL BE RESPONSIBLE FOR NOTIFYING THE SYSTEM OPERATOR AND ELECTRICITY MARKET ABOUT THE AGREEMENTED CONTENTS TO SERVE THE MARKET OPERATIONS;

- IN CASE THE MONTHLY CONTRACT QUANTITY IS CALCULATED BY THE SYSTEM OPERATOR AND ELECTRICITY MARKET IN ACCORDANCE WITH CLAUSE 2 OF ARTICLE 27 OF THIS CIRCULAR AND THERE IS NO OTHER AGREEMENT IN THE POWER PURCHASE AND SALE CONTRACT REGARDING THE ADJUSTMENT OF MONTHLY CONTRACT QUANTITY: THE ADJUSTMENT OF MONTHLY CONTRACT QUANTITY SHALL BE IMPLEMENTED IN ACCORDANCE WITH THE PRINCIPLES SET FORTH IN ARTICLE 37 OF THIS CIRCULAR.

b) ADJUSTMENT OF CYCLE TRADING CONTRACT QUANTITY:

- IN CASE THE POWER GENERATION UNIT AND THE POWER PURCHASING UNIT HAVE AGREED IN THE POWER PURCHASE AND SALE CONTRACT ON THE CYCLE TRADING CONTRACT QUANTITY OR THE CONTENTS REGARDING THE ADJUSTMENT OF CYCLE TRADING CONTRACT QUANTITY (ADJUSTMENT CASES, PRINCIPLES OF ADJUSTMENT): THE ADJUSTMENT OF CYCLE TRADING CONTRACT QUANTITY SHALL BE IMPLEMENTED IN ACCORDANCE WITH THE POWER PURCHASE AND SALE CONTRACT. THE UNITS SHALL BE RESPONSIBLE FOR NOTIFYING THE SYSTEM OPERATOR AND ELECTRICITY MARKET ABOUT THE AGREEMENTED CONTENTS TO SERVE THE MARKET OPERATIONS;

- IN CASE THE CYCLE TRADING CONTRACT QUANTITY IS CALCULATED BY THE SYSTEM OPERATOR AND ELECTRICITY MARKET IN ACCORDANCE WITH ARTICLES 38 AND 40 OF THIS CIRCULAR AND THERE IS NO OTHER AGREEMENT IN THE POWER PURCHASE AND SALE CONTRACT REGARDING THE ADJUSTMENT OF CYCLE TRADING CONTRACT QUANTITY: THE ADJUSTMENT OF CYCLE TRADING CONTRACT QUANTITY SHALL BE IMPLEMENTED IN ACCORDANCE WITH THE PRINCIPLES SET FORTH IN ARTICLE 39 OF THIS CIRCULAR.

5. AMEND CLAUSE 1 OF ARTICLE 20 AS FOLLOWS:

“1. TYPES OF AUXILIARY SERVICES FOR SYSTEM OPERATION IN THE ELECTRICITY MARKET INCLUDE:

a) SECONDARY FREQUENCY CONTROL;

b) FAST START;

c) VOLTAGE REGULATION;

d) BLACK START;

đ) OPERATIONAL RESERVE TO ENSURE SYSTEM SECURITY.”

6. AMEND CLAUSE 2 OF ARTICLE 23 AS FOLLOWS:

“2. THE CEILING PRICE OF THE ELECTRICITY MARKET FOR YEAR N SHALL NOT EXCEED 115% OF THE HIGHEST BID PRICE IN THE THERMAL POWER PLANTS THAT DIRECTLY BID ON THE ELECTRICITY MARKET.”

7. AMEND CLAUSE 1 OF ARTICLE 27 AS FOLLOWS:

“1. DETERMINATION OF ANNUAL CONTRACT QUANTITY

THE TOTAL ANNUAL CONTRACT QUANTITY OF THE POWER PLANT IS DETERMINED AS FOLLOWS:

a) DEVELOP THE SYSTEM OPERATING PLAN FOR THE NEXT YEAR USING THE CONSTRAINED SCHEDULING METHOD. INPUT PARAMETERS USED IN THE SYSTEM OPERATING PLAN FOR THE NEXT YEAR ARE THE VARIABLE PRICES OF THERMAL POWER PLANTS, HYDROLOGICAL CHARACTERISTICS, AND TECHNICAL SPECIFICATIONS OF THE POWER PLANT;

b) CALCULATE THE TOTAL PLANNED ANNUAL QUANTITY OF THE POWER PLANT ACCORDING TO THE FOLLOWING FORMULA:

AGO = EGO IF a × GO ≤ EGO ≤ b × GO

AGO = a × GO IF EGO < a × GO

AGO = b × GO IF EGO > b × GO

Where:

AGO: TOTAL PLANNED ANNUAL QUANTITY N OF THE POWER PLANT (KWH);

EGO: PROJECTED ANNUAL QUANTITY N OF THE POWER PLANT DETERMINED FROM THE SYSTEM OPERATING PLAN FOR THE NEXT YEAR CONVERTED TO THE MEASUREMENT POINT (KWH);

GO: AVERAGE MULTIPLE-YEAR GENERATION QUANTITY OF THE POWER PLANT AS STATED IN THE POWER PURCHASE AND SALE CONTRACT (KWH);

a, b: ANNUAL QUANTITY ADJUSTMENT FACTORS ANNOUNCED BY THE MINISTRY OF INDUSTRY AND TRADE, EXCEPT IN CASES WHERE THE POWER GENERATION UNIT AND THE POWER PURCHASING UNIT HAVE AGREED OTHERWISE AND REACHED AN AGREEMENT IN THE POWER PURCHASE AND SALE CONTRACT.

c) CALCULATE THE TOTAL ANNUAL CONTRACT QUANTITY OF THE POWER PLANT ACCORDING TO THE FOLLOWING FORMULA:

 

Where:

Qc: TOTAL ANNUAL CONTRACT QUANTITY N (KWH);

AGO: PLANNED ANNUAL QUANTITY N OF THE POWER PLANT (KWH);

: THE OUTPUT QUANTITY RATIO FOR CONTRACT PRICE APPLIED FOR YEAR N (%)”

8. AMEND POINT b OF CLAUSE 2 OF ARTICLE 29 AS FOLLOWS:

“b) CONFIRM IN WRITING VIA ELECTRONIC DOCUMENTS OR PAPER DOCUMENTS (IN CASE THE ELECTRONIC DOCUMENT SYSTEM IS DOWN) THE ANNUAL AND MONTHLY CONTRACT QUANTITIES OF THE POWER PLANT BETWEEN THE POWER GENERATION UNIT AND THE VIETNAM ELECTRICITY CORPORATION.”

9. Amend Point b Clause 3 Article 29 as follows:

“b) The power generation unit and the bulk electricity purchasing unit shall confirm in writing, either electronically or on paper (in case the electronic document system fails), the total annual and monthly contract volume of the power plant.”

10. Amend Article 36 as follows:

“Article 36. Calculation of Monthly Contract Volume for New Power Plants Joining the Electricity Market Mid-Year

Except where the contract volume is agreed upon and confirmed in the electricity purchase and sale contract, the contract volume of new power plants joining the electricity market mid-year shall be determined according to the following steps:

1. Before the 20th day of month M, the power generation unit planning to put the power plant into commercial operation in month M+1 shall provide information on the economic and technical aspects of the power plant to the system operator and the electricity market for calculating the operational plan for the next month and subsequent months in year N.

2. The system operator and the electricity market shall be responsible for calculating the monthly contract volume for the power plant (from the month the power plant joins the electricity market until the end of year N) in the operational plan for the next month's electricity market.

3. The monthly contract volume of this power plant shall be determined according to the following formula:

 

Where:

: Monthly contract volume of the power plant (kWh);

: Planned volume according to the updated system operation method for the upcoming month and remaining months of year N of the power plant, converted to the delivery point (kWh);

: Ratio of electricity volume paid at the contract price applicable for year N (%).”

11. Amend Clause 3 Article 37 as follows:

“3. Adjustment of Monthly Contract Volume for Hydropower Plants with Reservoirs Over One Week:

a) The monthly contract volume of hydropower plants with reservoirs over one week may be adjusted if there are differences between the following data:

- Average past inflow volume and forecasted inflow volume used in the preparation of the next year’s operational plan;

- Actual generated volume of the power plant converted to the delivery point and the contract volume;

- Initial useful capacity forecasted for month M+1 and initial useful capacity calculated in the annual plan;

- Month M+1 contract volume and the expected mobilized volume converted to the delivery point in the approved month M+1 operational plan;

- Expected initial water level for month M+1 and the minimum water level specified in the Reservoir Operation Procedure issued by the competent authority.

b) The monthly contract volume of hydropower plants with reservoirs over one week can only be increased if the total monthly contract volume of all participating power plants in the planned annual operation is lower than 95% of the total expected generation volume (converted to the delivery point) of the power plants in the planned monthly operation.

c) Specific conditions for considering adjustments to the contract volume and principles for adjustment shall be carried out according to the calculation and settlement procedures in the electricity market issued by the Electricity Regulatory Authority.”

12. Amend Clause 5 Article 37 as follows:

“5. If the approved available volume for month M+1 of the power plant does not meet the monthly contract volume, the monthly contract volume shall be adjusted to the available volume for that month. The power generation unit shall be responsible for providing the system operator and the electricity market with information about the fuel supply plan (confirmed by the fuel supplier) for thermal power plants in the coming month before the 20th day of month M to serve as the basis for calculating the next month's operational plan and considering adjustments to the contract volume if necessary.”

13. Supplement Point d Clause 1 Article 39 as follows:

“d) In the event that a coal-fired thermal power plant experiences a fuel shortage leading to the actual electricity generation corresponding to the announced capacity in the next day's bid being lower than the plant's contract volume.”

14. Amend Clause 4 Article 39 as follows:

“4. For cases stipulated in Points c and d Clause 1 of this Article, adjust the contract volume of gas turbine plants and coal-fired thermal power plants during trading cycles based on the actual volume at the delivery point of the power plant.”

15. Amend Clause 1 Article 42 as follows:

“1. The system operator and the electricity market shall be responsible for calculating and announcing the weekly contract volume and allocating the weekly contract volume to each trading cycle of hydropower plants with regulating reservoirs from two days to one week according to the following principle:

1. By 15:00 every Wednesday, the system operator and the electricity market shall calculate the weekly contract volume of hydropower plants with regulating reservoirs from two days to one week according to the following formula:

 

Where:

: Next week's contract volume (kWh);

EGO_T : Next week's planned volume of the power plant according to the system and market operation plan for the next week (kWh);

α: Ratio of contract price payment volume (%) of the power plant agreed upon and confirmed by the power generation unit and the electricity purchasing unit in the electricity purchase and sale contract stipulated in Point b Clause 1 Article 16 of this Circular. In case the power generation unit and the electricity purchasing unit cannot agree and confirm, the ratio of contract price payment volume shall be determined according to Clause 5 Article 16 of this Circular.”

2. By 15:00 every Wednesday, the system operator and the electricity market shall allocate the weekly contract volume of hydropower plants with regulating reservoirs from two days to one week according to the following formula:

 

Where:

i: Trading cycle i in the week;

I: Total number of trading cycles in the week;

: Contract volume of the power plant in trading cycle i (kWh);

: Planned generation volume of the power plant in trading cycle i according to the system and market operation plan for the next week (kWh);

: Weekly contract volume of the power plant determined at Point a Clause 1 (kWh).

3. If the contract volume of small hydropower plants is less than the lowest stable generation capacity, it may be adjusted to 0 MW or the lowest stable generation capacity.
4. During the flood prevention and irrigation phase, if the contracted production volume of the hydropower plant in the first trading cycle is lower than the power generation capacity required to ensure the minimum water discharge requirement, then the contracted production volume of the power plants in these cycles will be adjusted accordingly to ensure that the hydropower plant fully meets the requirements for flood prevention and irrigation.

d) The total difference in production volume resulting from the adjustment as stipulated in Point c of this Clause shall be allocated according to the load ratio on the principle of ensuring that the weekly contracted production volume remains unchanged.”

16. Amend Article 43 as follows:

"Article 43. Ceiling price of bid offers of hydropower plants

1. Except in the case provided for in Clause 3 of this Article, the ceiling price of bid offers of hydropower plants with regulating reservoirs over one week is determined based on the value of the next week's water of such plants as published in accordance with Article 41 of this Circular, specifically as follows:

a) The ceiling price of bid offers equals the highest value of:

- 120% of the water value of the hydropower plant;

- The average of the ceiling prices of bid offers of thermal power units participating in the electricity market in the monthly operation plan.

b) Monthly, the System Operation Unit and Electricity Market are responsible for publishing the average of the ceiling prices of bid offers of thermal power units for the upcoming month for hydropower plants at the same time as the publication of the ceiling prices of bid offers of thermal power units in the upcoming month.

2. Except in the case provided for in Clause 3 of this Article, the ceiling price of bid offers of hydropower plants with regulating reservoirs from two days to one week is determined as the highest value of:

- 120% of the highest water value of hydropower plants participating in the market;

- The average of the ceiling prices of bid offers of thermal power units participating in the electricity market in the monthly operation plan.

3. Ceiling price of bid offers of hydropower plants in special cases

a) The ceiling price of bid offers of hydropower plants in the cases provided for in Points b and c of this Clause is determined according to the following formula:

"5. The pre-tax weighted average cost of capital i (%) is determined according to the formula below:_tr = 1,2 × max (P_gtn ; P_DOmax)

Where:

"5. The pre-tax weighted average cost of capital i (%) is determined according to the formula below:_tr: Ceiling price of bid offers of hydropower plants applicable in special cases (VND/kWh);

"5. The pre-tax weighted average cost of capital i (%) is determined according to the formula below:_gtn: Water value of the hydropower plant (VND/kWh);

"5. The pre-tax weighted average cost of capital i (%) is determined according to the formula below:_{Domestic air passenger transport service on regular basic economy classOmax}: Variable cost of the most expensive oil-fired thermal power unit in the system (VND/kWh).

b) In the case where the reservoir of the hydropower plant violates the water level limit in the first week: The ceiling price of bid offers of this hydropower plant for the following week is determined according to the provisions of Point a of this Clause. Once it ensures not to violate the water level limit in the week, the plant continues to apply the ceiling price of bid offers according to the provisions of Clause 1 or Clause 2 of this Article from Wednesday of the following week. Monthly, the System Operation Unit and Electricity Market are responsible for publishing the variable cost of the most expensive oil-fired thermal power unit in the system.

c) In the case where the hydropower plant located in a region with reserve power lower than 5% as announced in accordance with the Procedure for Implementing Security Assessment of the Medium-Term and Short-Term Power System issued by the Electricity Regulatory Authority guiding the Implementation of the Power Transmission System Regulation issued by the Ministry of Industry and Trade: The ceiling price of bid offers of hydropower plants in this region during the evaluation period is determined according to the provisions of Point a of this Clause. When the reserve power of the region is equal to or higher than 5%, the power plants in this region continue to apply the ceiling price of bid offers according to the provisions of Clauses 1 and 2 of this Article.

4. Weekly, the System Operation Unit and Electricity Market are responsible for:

a) Calculating the ceiling prices of bid offers of hydropower units of hydropower plants participating in the electricity market according to the provisions of Clauses 1, 2, and 3 of this Article;

b) Publishing the results of calculating the ceiling prices of bid offers of each hydropower unit of hydropower plants participating in the electricity market applicable for the upcoming week and the input parameters for calculation including: Water value, variable cost of the most expensive oil-fired thermal power unit in the system, the average of the ceiling prices of bid offers of thermal power units participating in the electricity market in the monthly operation plan.

5. Hydropower plants participating in the electricity market are responsible for:

a) Offering prices in compliance with the regulations on ceiling prices and floor prices of bid offers;

b) Meeting the requirements for downstream water usage constraints and other hydrological constraints.”

17. Amend Point d of Clause 1 of Article 46 as follows:

“d) Information on technical parameters of the unit, including:

- Published capacity of the unit for day D;

- The lowest stable generating capacity of the unit;

- Maximum rate of increase and decrease in capacity of the unit;

- Technical constraints when operating multiple units simultaneously;

- Fuel status of the thermal power plant.”

18. Amend Point g of Clause 1 of Article 46 as follows:

“g) Hydropower plants may offer the first power range in each trading cycle at 0 MW. For hydropower plants with regulation capability over two days, the last power range offered must be equal to the published capacity; in the case where the water level of the hydropower reservoir has reached the dead water level, the plant is allowed to adjust the published capacity to 0 MW;”

19. Amend Point b of Clause 2 of Article 46 as follows:

“b) Bid offers of hydropower plants with two consecutive weeks violating the water level limit:

- The portion of production corresponding to the downstream water flow requirement as required by the competent authority shall be offered at the floor price;

- The remaining portion of production shall be offered at the ceiling price applicable to hydropower plants violating the water level limit for two consecutive weeks as stipulated in Point a of Clause 3 of Article 43 of this Circular.”

20. Amend Point c of Clause 1 of Article 47 as follows:

“c) Generating units that have suffered failures causing shutdown or reduction in available capacity or unplanned maintenance approved by the System Operation Unit and Electricity Market according to the Power Transmission System Regulation issued by the Ministry of Industry and Trade: The bidding entity may revise the published capacity and resubmit the bid offer for this unit;”

21. Amend Clause 1 of Article 54 as follows:

“1. Forecasted dispatchable capacity, including dispatchable capacity for frequency regulation services of units in each trading cycle of the next day. Price band for each region in each trading cycle of the next day.”

22. Amend Article 59 as follows:

“Article 59. Adjustment of announced production capacity of power plants

Prior to establishing the dispatch schedule for the upcoming trading cycle, the System Operation Unit and Electricity Market may adjust the production volume of multi-purpose strategic hydropower plants and self-controlled power plants that generate reactive power according to the National Power System Dispatching Procedure issued by the Ministry of Industry and Trade for the upcoming trading cycle as stipulated in Clause 1, Article 54 of this Circular.

1. The production volume of multi-purpose strategic hydropower plants for the upcoming trading cycle shall be adjusted in the following cases:

a) There is an abnormal hydrological fluctuation;

b) There is a warning of insufficient capacity according to the next day's dispatch schedule;

c) There is a document from the competent state management agency regarding the regulation of the reservoir of the multi-purpose strategic hydropower plant to serve flood control and irrigation purposes.

2. The scope of adjustment of the announced production volume of multi-purpose strategic hydropower plants in the cases specified in Point a and Point b of Clause 1 of this Article is ±5% of the total installed capacity of multi-purpose strategic hydropower plants in the power system excluding the portion of capacity reserved for frequency regulation standby service.
3. For self-controlled power plants generating reactive power as prescribed in the National Power System Dispatching Procedure issued by the Ministry of Industry and Trade: The announced production volume shall be adjusted in accordance with the actual operating conditions of the power plant and the power system.

23. Amend Point a of Clause 2, Article 60 as follows:

"a) The System Operation Unit and Electricity Market establish the dispatch schedule for units in the following order:

- According to the bidding price list;

- Multi-purpose strategic hydropower plants based on adjustable capacity;

- Units providing fast-start reserve services according to the next day's dispatch schedule;

- Units providing operational services required to ensure power system security;

- Reducing the frequency regulation standby service capacity to the lowest permissible level."

24. Amend Clause 3, Article 60 as follows:

"3. Establishing the dispatch schedule for the upcoming trading cycle in case of excess capacity

The System Operation Unit and Electricity Market are responsible for adjusting the dispatch schedule for the upcoming trading cycle through the following measures in sequence:

a) Stopping units voluntarily ceasing power generation;

b) Minimizing the generation capacity of units providing frequency regulation standby services;

c) Gradually reducing the generation capacity of units in the order established in the unit list according to the provisions of Article 53 of this Circular;

d) Stopping slow-start units in the order established in the unit list according to the provisions of Article 53 of this Circular."

25. Amend Clause 2, Article 63 as follows:

"2. In case the reservoir of a power plant exceeds the weekly water level limit for two consecutive weeks, starting at 00:00 on Tuesday of the following week, the System Operation Unit and Electricity Market will establish the dispatch schedule for this power plant based on the default bid form specified in Point b, Clause 2, Article 46 of this Circular to bring the reservoir water level back to the weekly water level limit."

26. Amend Clause 2, Article 64 as follows:

"2. In case of market intervention, the System Operation Unit and Electricity Market are responsible for dispatching units to ensure the following objectives in priority order:

a) Ensuring balance between generation capacity and load;

b) Meeting the requirements for frequency regulation standby services;

c) Meeting the requirements for voltage quality."

27. Amend Point c of Clause 2, Article 74 as follows:

"c) Before 12:00 on day D+4, the Transmission Unit, Generation Unit, and Purchasing Unit shall check and reconcile measurement data, identify any discrepancies or events leading to production volume differences, and send them to the System Operation Unit and Electricity Market for feedback confirmation on the reconciliation of measurement data. After this time, the System Operation Unit and Electricity Market will not accept feedback related to measurement data discrepancies of day D. If there is no feedback from these units on the electricity market information website before 12:00 on day D+4, it will be considered that the units have confirmed their agreement, and the System Operation Unit and Electricity Market will not be responsible for handling subsequent feedback;"

28. Amend Clause 2, Article 92 as follows:

"2. The cost of purchasing electricity on the spot market by Wholesale Purchasing Unit l in the payment cycle for power plant g with a power purchase and sale contract with the Wholesale Purchasing Unit is determined according to the following formula:

 

Where:

i: Trading cycle i in the payment cycle;

I: Total number of trading cycles in the payment cycle;

g: Power plant with a power purchase and sale contract with the Wholesale Purchasing Unit;

TCm2(l,g,M): Cost of purchasing electricity on the spot market by Wholesale Purchasing Unit l in the payment cycle M from power plant g with a power purchase and sale contract with the Wholesale Purchasing Unit (in dong);

Cm2 (l,g,i): Total cost of purchasing electricity at spot market prices by Wholesale Purchasing Unit l in trading cycle i from power plant g with a power purchase and sale contract with the Wholesale Purchasing Unit (in dong);

UpliftM(g): Price adjustment component applied to the spot market price for Wholesale Purchasing Unit of power plant g in the payment cycle M calculated by the System Operation Unit and Electricity Market based on data provided by the Generation Unit after the month of operation according to the following formula:

                     Uplift_{Briefly describe technical improvements, production processes, raw materials, designs; new technology applications such as automation, digitalization, clean technology; management, marketing, distribution solutions; products winning awards or certifications related to innovation…):…}(g) =

In which:

g: Power plant with a power purchase and sale contract with the wholesale purchasing unit;

i: Trading cycle i in the payment cycle M;

I: Total number of trading cycles in the payment cycle M;

L: Total number of Wholesale Purchasing Units;

Rg (M): Total electricity payment amount in the payment cycle M of power plant g according to the monthly electricity market settlement statement issued by the System Operation Unit and Electricity Market, as stipulated in Article 88 of this Circular (in dong);

R^g_can (M): The total revenue of power plant g according to capacity price in payment cycle M as listed in the electricity market settlement statement issued by the System Operator and Electricity Market Unit shall be determined in accordance with Article 89 of this Circular (in dong);

Cm₂(l,g,i): The cost of electricity purchased from power plant g by wholesale electricity purchaser unit l in trading cycle i at the spot market price shall be determined in accordance with Point b, Clause 3, Article 91 of this Circular (in dong);

Qm₂ (l,g,i): The amount of electricity purchased from power plant g by wholesale electricity purchaser unit l in trading cycle i at the market price shall be determined in accordance with Point c, Clause 2, Article 91 of this Circular (kWh).”

29. Amend Clause 1 of Article 96 as follows:

“1. Payments under the electricity market: To be implemented in accordance with the provisions of Clause 2 and Clause 6 of Article 88 and Article 89 of this Circular.”

30. Amend Clause 2 of Article 97 as follows:

“2. Thermal power units that are required to cease operation in accordance with Point d, Clause 3, Article 60 of this Circular or must shut down one boiler to reduce capacity in accordance with Point b, Clause 3, Article 60 of this Circular shall be compensated for start-up costs in accordance with the power purchase agreement between Vietnam Electricity Corporation and the Power Generation Unit. The System Operator and Electricity Market Unit shall be responsible for confirming this event for the thermal power unit announced by the Power Generation Unit for the Purchaser Unit to base its start-up cost payment on.”

31. Amend Clause 7 of Article 97 as follows:

“7. In cases where hydropower units are required to generate more power than the capacity declared in the bidding schedule for the trading cycle due to system security reasons as requested by the System Operator and Electricity Market Unit, the entire generation output of the power plant during this period shall be paid according to the power purchase agreement with Vietnam Electricity Corporation.”

32. Add Clause 9 to Article 97 as follows:

“9. In cases where gas turbine power plants operating in simple cycle or lacking primary fuel must use part or all of the secondary fuel upon the order of the System Operator and Electricity Market Unit to ensure system security, the compensation shall be made in accordance with the ancillary service supply contract.”

33. Amend Point b of Clause 1 of Article 98 as follows:

“b) Thermal power units that are required to cease operation in accordance with Point d, Clause 3, Article 60 of this Circular or must shut down one boiler to reduce capacity in accordance with Point b, Clause 3, Article 60 of this Circular shall be compensated for start-up costs in accordance with the power purchase agreement between the wholesale electricity purchaser unit and the power generation unit. The System Operator and Electricity Market Unit shall be responsible for confirming this event for the thermal power unit announced by the Power Generation Unit for the Purchaser Unit to base its start-up cost payment on;”

34. Amend Clause 3 of Article 109 as follows:

“3. The payment amount according to the wholesale electricity selling price of Vietnam Electricity Corporation to the wholesale electricity purchaser unit for the remaining volume of delivered electricity after deducting the volume of electricity paid according to Article 91, Point c, Point d, Clause 1, Article 98, Article 99, and Article 100 of this Circular.”

35.  Amend Article 124 as follows:

“Article 124. Reporting regime for electricity market operations

1. Monthly reporting regime for electricity market operations of the System Operator and Electricity Market Unit

1. Report name: Monthly electricity market operation report M;
2. Content of the report: As prescribed in Appendix 6 of this Circular;

c) Reporting entity: The System Operator and Electricity Market Unit;

d) Receiving authority: Electricity Regulatory Authority;

đ) Method of submitting the report: Submit via email system;

e) Deadline for submission: Before the 20th day of month M+1, submit the monthly electricity market operation report M;

g) Frequency of submission: Monthly.

2. Annual reporting regime for electricity market operations of the System Operator and Electricity Market Unit

a) Report name: Annual electricity market operation report N;

b) Content of the report: As prescribed in Appendix 6 of this Circular;

c) Reporting entity: The System Operator and Electricity Market Unit;

d) Receiving authority: Electricity Regulatory Authority;

đ) Method of submitting the report: The report shall be submitted to the receiving authority through one of the following methods:

- Submission via electronic mail system;

- Submission via postal service.

e) Deadline for submission: Before March 1st of year N+1, submit the annual electricity market operation report N;

g) Frequency of submission: Annually.

3. Annual reporting regime for electricity market operations of direct trading power generation units

a) Report name: Annual electricity market operation report N;

b) Content of the report: As prescribed in Appendix 6 of this Circular;

c) Reporting entity: Direct trading power generation units;

d) Receiving authority: Electricity Regulatory Authority;

đ) Method of submitting the report: The report shall be submitted to the receiving authority through one of the following methods:

- Submission via electronic mail system;

- Submission via postal service.

e) Deadline for submission: Before March 1st of year N+1, submit the annual electricity market operation report N;

g) Frequency of submission: Annually.

4. Annual reporting regime for electricity market operations of electricity purchasers

a) Report name: Annual electricity market operation report N;

b) Content of the report: As prescribed in Appendix 6 of this Circular;

c) Reporting entity: Electricity purchasers participating in competitive wholesale electricity markets;

d) Receiving authority: Electricity Regulatory Authority;

đ) Method of submitting the report: The report shall be submitted to the receiving authority through one of the following methods:

- Submission via electronic mail system;

- Submission via postal service.

e) Deadline for submission: Before March 1st of year N+1, submit the annual electricity market operation report N;

g) Frequency of submission: Annually.

5. Ad hoc reports

a) Ad hoc report when market intervention occurs

- Report name: Report on market intervention situation.

- Content of ad hoc report on market intervention: Detailed report on the market intervention event (time, cause of occurrence, measures taken, impact assessment...);

- Reporting entity: The System Operator and Electricity Market Unit;

- Receiving authority: Electricity Regulatory Authority;

- Method of submitting the report: Submit via email system;

- Deadline for submission: Within 24 hours from the time of market intervention.

b) The System Operator and Electricity Market Unit, Power Generation Units, and Electricity Purchasers shall be responsible for submitting ad hoc reports on market operations as required by the Electricity Regulatory Authority.”

36. Supplement Appendix 6 promulgated together with this Circular.

Article 2. Effective Date

1. This Circular takes effect from January 1, 2020.

2. During implementation, if any issues arise, relevant units shall 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./.