Decision No. 258/2005/QĐ-TTg On the establishment and definition of functions, tasks, powers, and organizational structure of the Electricity Regulatory Agency under the Ministry of Industry

DECISION OF THE PRIME MINISTER

Regarding the establishment and provisions on functions, tasks, powers,

organizational structure of the Electricity Regulatory Authority under the Ministry of Industry

PRIME MINISTER

Pursuant to the Law on Organization of the Government dated December 25, 2001;

Pursuant to the Electricity Law dated December 3, 2004;

Considering the proposal of the Minister of Industry,

DECISION:

Article 1. On establishment, position and function

1. Establish the Electricity Regulatory Authority under the Ministry of Industry.

2. The Electricity Regulatory Authority shall have the function of assisting the Minister of Industry (hereinafter referred to as the Minister) in performing regulatory functions over the electricity industry and electricity market activities to contribute to safe, stable, quality power supply, efficient and economical power consumption, and ensuring fairness, transparency, and compliance with legal regulations.

3. The Electricity Regulatory Authority has legal personality, its own seal and separate account; operating funds from the state budget and various fees and charges from electricity activities; its main office is located in Hanoi city and branch offices in various regions; its trading name in English is Electricity Regulatory Authority of Vietnam (ERAV).

Article 2. Tasks and Powers

The Electricity Regulatory Authority shall have the following tasks and powers:

1. To develop planning for the development of the electricity sector at the national level; to develop restructuring programs for the electricity industry in line with the formation and development process of the electricity market in Vietnam for the Minister to submit to the Prime Minister for approval.

2. To develop retail electricity price lists for the Minister to review and submit to the Prime Minister for decision.

3. To propose the Minister to issue regulations:

a) Conditions, procedures, and formalities for issuing, amending, supplementing, and revoking licenses for electricity operations;

b) Rules of operation of competitive electricity markets; grid connection, system dispatching in competitive electricity markets, quality of electricity supply services, and other relevant regulations concerning the electricity market;

c) Review various fees related to electricity market activities; transmission fees, distribution fees, market participation fees, market transaction fees, regulation fees, fees for ancillary services, and other fees;

d) Review the framework for electricity generation prices, wholesale electricity prices;

đ) Procedures and steps for selecting investors for new power sources based on minimum costs;

e) Methods of support and encouragement for investment in demand-side management (DSM) projects and energy efficiency applications;

g) Competition rules, anti-collusion and price-cutting practices, ensuring fair competition, and protecting the interests of market participants;

h) Procedures for handling complaints and disputes in competitive electricity markets;

i) Handling entities violating electricity market activity regulations;

k) Conditions, procedures, and formalities for suspending or reducing power supply to electricity sellers; cutting off or reducing power consumption for electricity customers.

4. To review financial support methods for DSM projects and energy efficiency; results of selecting investors for new power sources based on minimum costs.

5. To review the issuance, amendment, supplementation, and revocation of licenses for electricity operations for organizations and individuals participating in electricity activities.

6. To inspect the implementation of:

a) Regulations on the electricity market;

b) Contents stipulated in electricity operation licenses of power units;

c) Long-term power purchase and sale contracts (PPA) that have been signed;

d) Programs and projects implementing demand-side management (DSM) and energy efficiency (EE) approved;

đ) Power units and entities participating in electricity activities regarding pricing and fee regulations, operational procedures of the electricity market, and other legal regulations concerning electricity market activities.

7. To perform tasks related to retail electricity price lists, fee frameworks:

a) Organize consultations with relevant agencies and organizations on retail electricity price lists, report to the Minister of Industry for review and submission to the Prime Minister for decision, and organize implementation after approval;

b) Implement bilateral long-term power purchase and sale contracts (PPA) to ensure compliance with established electricity pricing calculation methods and minimum control principles;

c) Results of selecting investors for new power sources based on minimum costs reported by power units.

8. To perform tasks related to managing power supply-demand relationships:

a) Monitor fluctuations in electricity load demand, promptly propose solutions to ensure power supply-demand balance;

b) Monitor the implementation of power generation and grid development projects in annual investment portfolios to ensure development in line with approved electricity development plans;

c) Propose measures to encourage or restrict investment in power generation and grid construction projects to ensure long-term power supply-demand balance and stable, safe, reliable system operation with appropriate reserve levels and lowest production and operation costs;

d) Determine and announce the ratio of capacity and energy between bilateral long-term power purchase and sale contracts and spot market transactions for power generators in accordance with different stages of electricity market development;

đ) Update and systematize price fluctuations on the market according to supply-demand relations to address issues promptly;

e) Announce annual investment plans for power generation and transmission grids needed for development according to approved planning to ensure supply-demand balance;

g) Determine the loading status of the grid network upon request from power units.

9. To regulate competition among market participants in the electricity market in accordance with competition regulations. Resolve complaints and disputes in the electricity market. Propose competent authorities solutions regarding mergers or divisions of power operation units to ensure transparent competition in the electricity market.

10. To design proposals for building and developing various levels of electricity markets. Participate in developing the electricity market and international electricity trade.

11. To cooperate internationally in the field of electricity regulation and market development, activities related to regional grid interconnection and market development in the Greater Mekong Subregion (GMS) and ASEAN countries.

12. Organize research and application of scientific and technological advancements in electricity regulation activities.

13. Organize training and development of human resources to meet the requirements of electricity regulation activities and market operations at various levels of market development.

14. Prepare annual reports summarizing the regulatory and operational activities of the electricity market as prescribed.

15. Utilize state budget allocations, licensing fee revenues, regulatory fees, and other fees as stipulated by law.

16. Suspend and propose disciplinary measures for electricity units and entities participating in electricity activities that violate laws governing electricity activities, licensing conditions, tariff setting procedures, and other legal provisions regarding electricity activities.

17. Engage with relevant state agencies in accordance with the law and the management hierarchy designated by the Minister.

18. Require electricity units to provide materials and information related to their business operations.

19. Manage organizational structure, staffing, and personnel within the scope of authority as prescribed by law; implement salary systems and policies for officers, civil servants, and employees under the jurisdiction of the Bureau.

20. Fulfill other tasks assigned by the Minister.

Article 3. Organizational Structure and Staffing

1. Leadership of the Bureau

The leadership of the Bureau consists of the Director and Deputy Directors.

The Director is appointed and relieved from duty by the Prime Minister upon the recommendation of the Minister and is responsible to the Minister and the law for all activities of the Bureau.

Deputy Directors are appointed and relieved from duty by the Minister upon the recommendation of the Director and are responsible to the Director and the law for the areas of work they are assigned.

2. Staff Supporting the Director:

a) Office (including organization, planning, administration, accounting);

b) Legal Department;

c) Tariff and Fee Department;

d) Regulation and Market Development Department;

đ) Planning and Licensing Department;

e) Customer Relations Department

g) Information Technology Department

3. Sub-bureaus

a) Central Vietnam Electricity Regulation Sub-bureau;

b) Southern Vietnam Electricity Regulation Sub-bureau.

4. Affiliated Public Service Units

Center for Electricity Market Development Research and Human Resource Training.

5. Staffing of the Electricity Regulation Bureau includes administrative management staff and public service staff.

a) Administrative staff include Bureau leadership, supporting staff, and sub-bureaus directly under it, totaling 90 people;

b) Public service staff total 10 people.

Based on work requirements and tasks, the Director of the Electricity Regulation Bureau annually develops and submits to the Minister for decision specific staffing arrangements for officers, civil servants, and employees in accordance with the law.

Article 4. Effectiveness

The Standard Measurement Quality Control Department shall be responsible for organizing and guiding the implementation of the Regulations adopted herein.

Article 5. Responsibility for Implementation

Ministers, Heads of Ministries equivalent to ministries, Heads of government-affiliated agencies, Chairpersons of provincial People's Committees under central city administrations, and the Director of the Electricity Regulation Bureau are responsible for implementing this Decision./.