Circular No. 36/2018/TT-BCT stipulates the procedures and formalities for issuing and revoking power business licenses.

CIRCULAR

PROVISIONS ON THE PROCEDURE AND PROCEDURES FOR GRANTING AND REVOKING ELECTRICITY BUSINESS LICENSES

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 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;

Decree No. 08/2018/NĐ-CP dated January 15, 2018 of the Government amending certain Decrees related to business conditions under the management of the Ministry of Industry and Trade;

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

The Minister of Industry and Trade issues this Circular to provide for the procedures and procedures for granting and revoking electricity business licenses.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular provides for the procedures and procedures for granting and revoking electricity business licenses, the validity period of electricity business licenses in the following fields:

1. Specialized consulting services in the electricity sector

a) Consulting on investment and construction of electricity projects, including: Thermal power (including biomass power plants and waste-to-energy power plants), hydropower, and other renewable energy sources; transmission lines and substations;

b) Supervision consulting during construction of electricity projects, including: Thermal power (including biomass power plants and waste-to-energy power plants), hydropower, and other renewable energy sources; transmission lines and substations.

2. Power generation.

3. Transmission of electricity.

4. Distribution of electricity.

5. Wholesale of electricity.

6. Retail of electricity.

Article 2. Applicability

This Circular applies to organizations and individuals participating in electricity business activities in the following fields: specialized consulting services in electricity, power generation, transmission of electricity, distribution of electricity, wholesale of electricity, retail of electricity.

Article 3. Cases Exempted from License for Electricity Business Activities

1. Power generation for self-use without selling electricity to other organizations or individuals.

2. Power generation with installed capacity below 01 MW (01 MWp for solar power plants installed at one location and one point of interconnection) to sell electricity to other organizations and individuals.

3. Electricity retailing in rural, mountainous, and island areas purchasing electricity from the distribution grid with a capacity of less than 50 kVA to directly supply electricity to end-users in these areas.

4. System dispatching of national electricity and market operation of electricity trading.

Article 4. Principles for Issuing Licenses and Validity Periods of Licenses for Electricity Business Activities

1. Prior to the competitive retail electricity market phase, the electricity business license for the retail electricity field is granted simultaneously with the distribution electricity field.

2. For power generation units registering to operate in the retail electricity field without purchasing electricity from the national grid and having their own grid to carry out retail activities: The electricity business license for the retail electricity field is granted simultaneously with the power generation field.

3. The power generation license is issued to organizations that are owners of power plants for each individual plant. In cases where the owner leases the operation of the power plant, manages its operation, or transfers its management, the electricity business license must clearly state the entity receiving the lease or managing the operation.

4. The maximum term of the electricity business license granted to entities operating in the electricity sector is specified in the table below:

5. If an organization or individual requests a shorter term for the electricity business license than the term prescribed in Clause 4 of this Article, it will be granted according to the requested term.

6. Based on actual conditions regarding the components of the electricity project, the licensing authority may grant an electricity business license with a shorter term than the term prescribed in Clause 4 of this Article.

Article 5. Scope of activities in the licensed power sector

1. The scope of activities in the field of specialized power consulting covers the entire country.

2. The power generation field has a scope of operation defined for each power plant.

3. The transmission and distribution electricity fields have a scope of operation within the specific management and operation of the power grid.

4. The wholesale and retail electricity fields have a scope of operation within specific administrative boundaries.

Chapter II

APPLICATION DOCUMENTS FOR GRANTING AN ELECTRICITY BUSINESS LICENSE

Article 6. Application Documents for Granting License in the Field of Specialized Power Consulting

1. A request for granting a power activity license according to Model 01 stipulated in the Appendix issued together with this Circular.

2. A copy of the Business Registration Certificate, Decision on Establishment, or Certificate of Establishment of the organization requesting the license.

3. A list of key consultants according to Model 3a stipulated in the Appendix attached to this Circular; copies of graduation certificates, professional qualifications, and employment contracts signed by key consultants listed with the consulting organization.

4. A list of similar projects that the key consultants have undertaken.

5. A list of equipment, technical means, and software applications serving consulting work.

Article 7. Application Documents for Granting License in the Field of Power Generation

1. A request for granting a power activity license according to Model 01 stipulated in the Appendix issued together with this Circular.

2. A copy of the Business Registration Certificate of the organization requesting the license.

3. A list of key technical managers and shift leaders of power plants according to Model 3b stipulated in the Appendix attached to this Circular; copies of graduation certificates, electrical safety cards, and dispatch control authorization certificates issued to shift leaders according to the National Power System Dispatch Procedures issued by the Ministry of Industry and Trade; contracts for leasing power plants, management contracts, or documents transferring management for leased, rented, or managed operations.

4. A copy of the decision approving the investment proposal of the power plant or the investment project by the competent authority.

5. A copy of the Decision approving the Environmental Impact Assessment Report or confirmation document of the Environmental Protection Plan for the power plant investment project by the competent authority according to environmental laws.

6. A list of equipment requiring strict safety inspections according to the law.

7. A copy of the Fire Prevention and Control Approval Document; a copy of the Completion Acceptance Record of the Fire Prevention and Control System Installation.

8. A copy of the Decision approving the Reservoir Operation Procedures by the competent authority (for hydropower plants).

9. A copy of the Completion Acceptance Record of generator installation or solar panel system installation; a copy of documentation confirming the main parameters of the power plant (turbine parameters, generator parameters, main transformer parameters).

10. A copy of the Completion Acceptance Record of the information technology infrastructure and telecommunications infrastructure installation for market operation; a copy of the Completion Acceptance Record of the SCADA system installation for power system and market operation.

11. A copy of the Dam Acceptance Record; dam protection plan, emergency response plan, and urgent situation response plan; report on dam inspection results (for dams due for inspection).

12. In cases where power plants or backup generators are not connected to the grid and only generate electricity to supply customers when there is a power outage in the national grid, the application for a license is exempted from the provisions of Clause 10 of this Article. In cases where power plants directly sell electricity to end-users, the application includes additional contents: Customer list; power supply network diagram for customers.

Article 8. Documents for application to obtain a license in the field of electricity transmission and distribution

1. A request for granting a power activity license according to Model 01 stipulated in the Appendix issued together with this Circular.

2. A copy of the Business Registration Certificate or Decision on Establishment or Certificate of Establishment of the organization requesting the license.

3. A list of technical personnel directly managing and shift leaders of the operation team according to Model 3b prescribed in the Appendix issued together with this Circular; copies of graduation certificates, electrical safety cards, and certificates of operation control authority granted to individuals named in the list, in accordance with the National Power System Dispatching Procedure issued by the Ministry of Industry and Trade.

4. A list of main power grid projects and the scope of the grid managed by the organization; in cases of purchase, merger, or transfer without capital recovery of grid assets, there must be an Acceptance Certificate in accordance with regulations or a Property Transfer Certificate.

5. Copies of documents ensuring fire prevention and firefighting conditions as prescribed.

6. Copies of the Agreement for Connection to the National Power System; Map of Grid Boundaries and Scope of Operations.

Article 9. Documents for application to obtain a license in the field of wholesale and retail electricity

1. A request for granting a power activity license according to Model 01 stipulated in the Appendix issued together with this Circular.

2. Copies of the Enterprise Registration Certificate, Establishment Decision, or Establishment Certificate of the organization requesting the issuance of a license.

3. A list of business management personnel directly managed according to Model 3b prescribed in the Appendix issued together with this Circular; copies of graduation certificates or graduation certificates, and electrical safety cards of individuals named in the list.

Article 10. Documents for application to amend or supplement an electricity business license

1. In case of changes in the name or address of the headquarters of the entity holding the license, the application documents shall include the following contents:

a) A request for issuance of an electricity business license according to Model 01 prescribed in the Appendix attached hereto;

b) Copies of the Enterprise Registration Certificate, Establishment Decision, or Establishment Certificate of the organization requesting the issuance of a license.

2. In cases where the organization requesting the issuance of a license receives asset transfers from units already holding a power operation license, the application dossier for the issuance of a power operation license of the receiving unit shall include:

a) A request for issuance of an electricity business license according to Model 01 prescribed in the Appendix attached hereto;

b) Copies of the Enterprise Registration Certificate, Establishment Decision, or Establishment Certificate of the organization requesting the issuance of a license;

c) Documents proving the asset transfer, documents about the technical management team, and operational management.

Chapter III

PROCEDURES FOR ISSUING AND REVOKING POWER OPERATING LICENSES

Article 11. Procedure and formalities for issuing, amending, or supplementing an electricity business license

1. At least 15 working days before the planned date of official commercial operation, organizations participating in power generation activities must submit complete dossiers for the issuance of a power operating license.

2. Organizations and individuals requesting the issuance, amendment, or supplementation of a power operating license shall submit one set of dossiers to the licensing authority as stipulated in Chapter II of this Circular and shall be responsible for the accuracy and truthfulness of the application dossier.

3. The method of submitting documents is regulated as follows:

a) For dossiers within the licensing authority of the Ministry of Industry and Trade and the Electricity Regulatory Authority: Implementation through the Online Public Service Portal.

In cases where electronic documents have large file sizes or materials that cannot be sent via the internet as prescribed by law, they may be submitted directly or through postal services.

b) For dossiers within the licensing authority of provincial People's Committees: Submission shall be made directly, via postal service, or online on the website of the licensing authority (if available).

4. The procedure and formalities for issuing, amending, or supplementing an electricity business license online are carried out as follows:

a) Online dossiers shall be implemented according to the guidelines on the Online Public Service Portal of the Ministry of Industry and Trade, specifically as follows:

- Organizations and individuals requesting a license shall register an account on the Online Public Service Portal at the address: http://online.moit.gov.vn; using the registered account to declare and submit online dossiers;

- Within 15 working days from the date of receipt of a complete and valid dossier on the Online Public Service Portal, the licensing authority shall be responsible for reviewing the dossier, inspecting the premises (if necessary), and issuing the power operating license.

b) Provincial People's Committees guide the issuance of licenses within their jurisdiction in an online form (if applicable) in accordance with the provisions of this Circular.

5. The procedure and formalities for issuing, amending, or supplementing an electricity business license without using online methods are carried out as follows:

a) Within three working days from the date of receipt of the application dossier for the issuance of a power operating license, the licensing authority shall notify in writing the organization or individual requesting the license if the dossier is incomplete or invalid. The notification letter must clearly state the reasons and request supplementary or amended data, documents, and related information to perfect the dossier;

b) Within five working days from the date of receipt of the request for supplementary or amended data, documents, and related information from the licensing authority, the organization or individual requesting the license must provide supplementary or amended data, documents, and related information and respond in writing.

If within 60 days from the date the licensing authority issues a written request for amendments or supplements, the organization or individual requesting the license does not amend or supplement the dossier and respond in writing, the licensing authority has the right to return the application dossier for the issuance of a power operating license.

c) Within 15 working days from the date of receipt of a complete and valid dossier, the licensing authority shall be responsible for reviewing the dossier, inspecting the premises (if necessary), and issuing the power operating license.

6. During the review process of the dossier and actual inspection, if the licensing authority finds that the organization or individual does not meet the required conditions as prescribed or does not comply with relevant laws, the licensing authority may require the organization or individual requesting the license to supplement the dossier to meet the conditions or refuse to issue the license in writing (stating the reasons).

7. The power operating license consists of three original copies: one copy is given to the licensed entity, two copies are retained by the licensing authority.

8. Thirty days before the expiration of the power operating license, the power entity holding the license wishing to continue operations must prepare a dossier for the issuance of a power operating license as stipulated in Clause 2 of this Article and follow the procedures for requesting the issuance of a power operating license as prescribed.

9. In cases where the license is lost or damaged, the power entity must request the licensing authority to reissue it, specifying the reasons.

Article 12. Revocation of Power Generation Business License

1. The Power Generation Business License shall be revoked in the following cases:

a) The power generation unit violates Article 37 of the Electricity Law;

b) The power generation unit requests to cease operations or transfer the licensed activities to another unit;

c) When there is a request from the competent state agency due to the power generation unit's violation of relevant laws;

d) The power generation unit fails to comply with the provisions of Clause 7 and Clause 8, Article 15 of this Circular;

đ) The power generation unit violates the provisions of Point a, Clause 11, Article 15 of this Circular.

2. The Power Generation Business License shall be revoked on a sector-by-sector basis according to the scope of operation. The power generation unit whose license is revoked shall be responsible for preparing a file to request modification of the Power Generation Business License in accordance with the revocation decision.

3. The licensing authority has the right to revoke the Power Generation Business License within its licensing jurisdiction.

4. Procedure for issuing the decision to revoke the Power Generation Business License

a) In case the power generation unit violates Article 37 of the Electricity Law, Clause 4, Article 15 of this Circular, and the decision-making body for the penalty is the licensing authority, the licensing authority shall issue the decision to revoke the Power Generation Business License simultaneously with the penalty decision;

b) In case the power generation unit violates Article 37 of the Electricity Law, Clause 4, Article 15 of this Circular, and the decision-making body for the penalty is not the licensing authority, the licensing authority shall issue the decision to revoke the Power Generation Business License within the time limit specified in the penalty decision. If it does not revoke the license, the licensing authority shall provide a written response (specifying the reasons) to the decision-maker for the penalty;

c) In case the power generation unit violates the provisions of Point a, Clause 11, Article 15 of this Circular, the licensing authority has the right to issue the decision to revoke the Power Generation Business License;

d) In case the power generation unit requests to cease operations or transfer the licensed activities to another organization or individual, within thirty working days from the date of receipt of the written request from the power generation unit or the request from the competent authority and related documents, the licensing authority shall issue the decision to revoke the Power Generation Business License.

5. Within two working days from the date of issuance of the decision to revoke the Power Generation Business License, the licensing authority shall send the revocation decision to the power generation unit whose license is revoked and related agencies and units; publish information about the revocation of the license on the electronic information website of the licensing authority.

Chapter IV

AUTHORITY TO ISSUE AND MANAGE THE USE OF POWER BUSINESS LICENSES

Article 13. Competence to Issue Power Generation Business Licenses

1. The Ministry of Industry and Trade issues Power Generation Business Licenses for the following sectors:

a) Power generation activities for large-scale power plants that are particularly important for economic and social development, national defense, and security, as approved by the Prime Minister;

b) Power transmission activities.

2. The Electricity Regulatory Authority issues Power Generation Business Licenses for the following sectors:

a) Power generation activities for power plants with capacity of three megawatts or more, excluding those covered by Point a, Clause 1 of this Article;

b) Power distribution activities;

c) Wholesale electricity sales activities;

d) Retail electricity sales activities;

đ) Specialized electricity consulting services.

3. Provincial People's Committees, municipal people's committees under the central government issue or delegate the Department of Industry and Trade to issue or revoke Power Generation Business Licenses for the following sectors:

a) Power generation activities for power plants with capacity below 3 MW located in the locality;

b) Power distribution activities up to 35 kV voltage level in the locality;

c) Retail power sales activities up to 0.4 kV voltage level in the locality;

d) Specialized electricity consulting services include:

- Consulting on investment and construction of power transmission lines and substations up to 35 kilovolts, registered as enterprises in localities.

- Supervision consulting on construction of power transmission lines and substations up to 35 kV voltage level, registered enterprises in the locality.

4. In case an organization or individual applies for multiple business licenses in the field of specialized electricity consulting services, including at least one activity within the competence of the Electricity Regulatory Authority, the Power Generation Business License for these activities shall be issued by the Electricity Regulatory Authority.

Article 14. Responsibilities of the agency issuing power business licenses

1. Receiving, examining, inspecting, and managing applications for power business licenses. Guiding organizations and individuals applying for licenses to comply with the content, procedures, and formalities for obtaining power business licenses as stipulated in this Circular.

2. Resolving complaints about power business licenses within its jurisdiction.

3. Inspecting and supervising the maintenance of conditions specified in the power business license.

4. Revoking power business licenses within its authority according to the procedures prescribed in Article 12 of this Circular.

5. Recommending competent authorities to handle violations by power units in accordance with the law.

Article 15. Responsibilities of power units granted power business licenses

1. Operate electricity in accordance with the contents specified in the license.

2. Proposing amendments and supplements to the license in cases of changes in name, registered office address, type of operation, operating management unit, scope of operation, or duration of the license.

3. Maintaining the operational conditions registered and licensed throughout the period of operation.

4. Adhering to relevant legal regulations.

5. Paying all types of fees related to the power business license as prescribed by law.

6. Do not lease, lend, or self-modify the content of the electricity operation license.

7. Prior to the commercial operation date, power generation units shall be responsible for completing the following:

a) Signing Power Purchase Agreements as prescribed (except for hydropower plants listed in the Directory of large-scale power plants with significant economic, social, defense, and security importance approved by the Prime Minister, and the Directory of power plants coordinating operations with large-scale power plants with significant economic, social, defense, and security importance approved by the Ministry of Industry and Trade; hydropower plants affiliated with electricity corporations under the proposal of Vietnam Electricity Corporation);

b) The SCADA system serving power system operation as prescribed;

c) Information technology infrastructure and telecommunications infrastructure serving electricity market operation (for power plants participating in the electricity market);

d) Other management and operation requirements for power plants stipulated in relevant legal documents.

8. Within twelve months from the date of issuance of the power business license in the power generation sector, the licensed entity shall be responsible for submitting the following additional contents:

a) A copy of the acceptance document regarding the fire prevention and firefighting system issued by the competent authority;

b) A copy of the acceptance record for connecting SCADA system signals serving power system and market operation as prescribed;

c) A copy of the acceptance record for putting into operation information technology infrastructure and telecommunications infrastructure serving electricity market operation as prescribed;

d) A copy of the decisions approving safety dam management plans and safety dam inspection reports issued by the competent authority (for hydropower plants);

9. Being subject to inspection, audit, and compliance with decisions on handling by state agencies with authority over the use of the license and the maintenance of registered operational conditions.

10. Keeping the issued power business license at the unit's headquarters.

11. Reporting responsibilities

a) Reporting to the licensing agency within thirty days from the date of change in the registered office address in the power business license;

b) Immediately reporting to the licensing agency if the power business license is lost or damaged;

c) Before March 1st each year, reporting to the licensing agency and the Department of Industry and Trade in the locality about the implementation of maintaining operational conditions in the licensed field and the previous year's power operation situation according to Forms 4a, 4b, 4c, and 4d prescribed in the Appendix attached to this Circular;

d) Reporting to the licensing agency within sixty days before ceasing power operations or transferring power operations;

đ) Providing full and accurate information when requested by the licensing agency or competent authority.

Article 16. Provisions on management and operation of power plants in cases of leasing power plants, renting or entrusting management and operation

1. The investor of the power plant shall be responsible for all obligations related to the investment and operation processes of the power plant in accordance with the provisions of the law.

2. The entity that leases the power plant, rents or is entrusted with the management and operation of the power plant, or is authorized to manage and operate the power plant shall be responsible for fulfilling all obligations related to the operation process of the power plant according to the contents of the lease, rental, or management and operation entrustment contract.

Chapter V

IMPLEMENTATION

Article 17. Implementation of inspection work

1. The Electricity Regulatory Authority shall be responsible for inspecting the implementation of this Circular throughout the country; resolving difficulties and proposing contents for reporting to the Ministry of Industry and Trade to amend and supplement this Circular.

2. The People's Committee of provinces and centrally governed cities shall inspect the implementation of this Circular within their jurisdiction; resolving difficulties and recommending the Ministry of Industry and Trade to amend and supplement this Circular.

Article 18. Responsibilities for implementation

1. The Electricity Regulatory Authority is the agency receiving and processing procedures for reviewing applications for electricity business licenses and implementing the procedure for revoking electricity business licenses for licenses within its authority and the Ministry of Industry and Trade.

2. The Department of Industry and Trade is the agency receiving and processing procedures for reviewing applications for electricity business licenses, implementing the procedure for revoking electricity business licenses for licenses within the authority of the provincial People's Committee when authorized.

3. The entity granted an electricity business license shall be responsible for sending a copy of the issued electricity business license to the competent state management agency in the field of electricity activities at the local level for reporting within thirty days from the date of issuance of the license.

4. Before March 1st each year, the Department of Industry and Trade shall report to the Ministry of Industry and Trade and the provincial People's Committee about the situation of issuing and revoking electricity business licenses in the locality of the previous year.

Article 19. Effective Date

1. This Circular takes effect from December 6, 2018. Circular No. 12/2017/TT-BCT dated July 31, 2017 of the Minister of Industry and Trade prescribing the procedures and formalities for issuing and revoking electricity business licenses ceases to be effective from the date this Circular takes effect.

2. In cases where the electricity business license is amended or supplemented due to changes in name, headquarters, and asset transfer of the entity that has been granted the license, the previously issued license continues to be valid until a new electricity business license is issued.

3. Electricity entities that have been granted electricity business licenses before the effective date of this Circular shall continue to implement according to the contents and deadlines specified in the license and shall be responsible for complying with the provisions of this Circular and relevant laws promulgated after the issuance of the license./.