Circular No. 25/2014/TT-BCT stipulates the method for determining the level of costs for stopping and resuming power supply

CIRCULAR

Specifies the method for determining the level of costs for stopping and resuming power supply.

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Pursuant to Decree No. 95/2012/NĐ-CP dated November 12, 2012, of the Government, detailing the functions, tasks, powers, and organizational structure of the Ministry of Industry and Trade;

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;

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

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

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular stipulates the method for determining the 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 cases prescribed in Clause 2, Clause 3, Article 5, and Article 7 of Circular No. 30/2013/TT-BCT dated November 14, 2013, issued by the Minister of Industry and Trade, which stipulates conditions and procedures for stopping and reducing electricity supply (hereinafter referred to as Circular No. 30/2013/TT-BCT).

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 legal provisions shall be subject to the electricity seller's cessation of power supply in cases prescribed in Article 7 of Circular No. 30/2013/TT-BCT.

Article 3. Explanation of Terms

Strategic multi-purpose hydropower plant

1. The seller of electricity is an electricity company holding a license for electricity business operations or authorized in the distribution and retail electricity sector, directly implementing the cessation and resumption of power supply, including:

a) State Corporation of Electricity;

b) Electricity Company;

c) Distribution and Retail Electricity Unit.

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.

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 stipulated in this Circular. These costs aim to compensate the electricity seller for implementing the cessation and resumption of power supply. Revenue from collecting costs for stopping and resuming power supply is recorded in the seller's revenue (other production and business revenue) and taxed according to regulations.

2. The collection of costs for stopping and resuming power supply is carried out specifically as follows:

a) Collected once before ceasing 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

DETERMINATION METHOD FOR THE LEVEL OF COSTS FOR STOPPING AND RESUMING POWER SUPPLY

Article 5. Principles for Calculating the Level of Costs for Stopping and Resuming Power Supply

The formula for calculating the level of costs for stopping and resuming power supply is as follows:

Where:

1. Labor cost is calculated based on factors such as the average minimum wage for one day's work, skill-level wage coefficient, mobility allowance coefficient, and the number of workdays for one stop and resume operation at different voltage levels.

2. Travel cost is determined based on the distance from the direct implementation unit's headquarters to the location where stopping and resuming power supply takes place.

3. k: adjustment factor based on distance.

4. n: adjustment factor based on region.

Article 6. Basic Level of Costs for Stopping and Resuming Power Supply (M)

The basic level of costs for stopping and resuming power supply (M) is the cost for one stop and resume operation in the plain area, with a distance from the direct implementation unit's headquarters to the location where stopping and resuming power supply takes place up to 5 km, and is determined correspondingly with different voltage levels as follows:

1. At points with voltage up to 0.4 kV.

2. At points with voltage above 0.4 kV to 35 kV.

3. At points with voltage above 35 kV.

Article 7. Adjustment Factors Based on Distance and Region

1. The adjustment factor based on distance (k) is determined based on the distance from the direct implementation unit's headquarters to the location where stopping and resuming power supply takes place and is applied specifically 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;

đ) Over 30 km to 50 km: factor k = 1.56;

e) Over 50 km: factor k = 1.70.

2. The adjustment factor based on region (n) is determined based on the area where stopping and resuming power supply takes place and is applied specifically as follows:

a) In the plain area: factor n = 1;

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

Article 8. Classification of cost levels for power outage and restoration according to the applicable subjects

1. For electricity customers using electricity for living purposes, the cost level for one (1) power outage and restoration (T) is the basic cost level for power outage and restoration (M), regardless of the region being plains, mountains, islands, and independent of the distance from the direct implementation unit's office to the location where the power outage and restoration is carried out, and is determined according to the following formula:

T = M

Where:

a) T: The amount that the electricity seller is permitted to collect to carry out the power outage and restoration;

b) M: The basic cost level for power outage and restoration prescribed in Article 6 of this Circular.

2. For electricity customers purchasing electricity for non-living purposes and individuals or organizations requesting power outage to ensure safety during construction works, and in cases where the electricity buyer requests the electricity seller to stop supplying electricity, the cost level for one power outage and restoration (T) is adjusted according to regions and distances from the direct implementation unit's office to the location where the power outage and restoration is carried out, and is determined according to the following formula:

T = M x k x n

Where:

a) T: The amount that the electricity seller is permitted to collect to carry out the power outage and restoration;

b) M: The basic cost level for power outage and restoration prescribed in Article 6 of this Circular;

c) k: The adjustment factor based on distance prescribed in Clause 1, Article 7 of this Circular;

d) n: The adjustment factor based on regions prescribed in Clause 2, Article 7 of this Circular.

3. The cost level for power outage and restoration prescribed in this Article does not include VAT.

Chapter III

IMPLEMENTATION

Article 9. Implementation Organization

1. Vietnam Electricity Corporation is responsible for calculating specifically the cost level for power outage and restoration according to the provisions of Chapter II of this Circular, and submitting it to the Electricity Regulatory Authority for review.

2. The Electricity Regulatory Authority is responsible for:

a) Submitting to the Ministry of Industry and Trade to issue a Decision prescribing the cost level for power outage and restoration;

2.  Provincial People's Committees shall be responsible for monitoring and supervising the development of solar power projects in their localities in accordance with approved provincial and national solar power development plans, in compliance with the provisions of this Circular.

3. In case there is a change in wage policy leading to a change in the cost of power outage and restoration by 30% or more compared to the currently applied level, Vietnam Electricity Corporation is responsible for updating and recalculating the cost level for power outage and restoration according to the provisions of Chapter II of this Circular, and submitting it to the Electricity Regulatory Authority for review. The Electricity Regulatory Authority is responsible for submitting to the Ministry of Industry and Trade to issue a Decision adjusting the cost level for power outage and restoration.

4. The electricity seller is responsible for collecting the cost for power outage and restoration according to the provisions of this Circular.

Article 10. Effective Date

1. This Circular takes effect from September 25, 2014. Decision No. 08/2007/QĐ-BCN dated January 30, 2007 of the Minister of Industry prescribing the cost level for power outage and restoration ceases to be effective from the date this Circular takes effect.

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