Joint Circular No. 37 TC/LB stipulates the management, accounting, and distribution of income from the consumption of recovered coal in electricity production.

JOINT CIRCULAR

Article 1 stipulates the management, accounting, and distribution of income from the consumption of coal recovered in electricity production.

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Coal recovered in electricity production includes coal ash, coal dust, and silted coal, which are important additional sources of raw materials and fuel in the national economy that must be strictly recovered and managed according to state plans.

In order to achieve the aforementioned objectives, the Ministry of Finance-Electricity Joint Department uniformly regulates the organization of management, accounting, and distribution of income from the consumption of coal recovered in electricity production as follows:

Chapter I. Management and Accounting System for Recovered Coal.

Clause 1. Electricity plants using coal in production must organize the recovery of coal ash, coal dust, or silted coal discharged during electricity production for reuse in production and supply to national economic needs, thereby reducing fuel costs in the cost of electricity.

Clause 2. The specialized department responsible for recovering coal ash, coal dust, slag... for reuse in production or as fuel, for brick casting, cement clinker production, etc., in electricity plants is considered a secondary production unit, organized for accounting and profit distribution according to the regulations governing secondary product production.

Clause 3. Electricity plants annually base their recovery quotas for coal ash and coal dust on standards and establish plans reviewed and approved recovery targets for coal in electricity production. These targets serve as a basis for determining fuel costs in the planned cost of electricity, the cost of secondary products produced using recovered coal, and the profit distribution plan for recovered coal.

Clause 4. Recovered coal in electricity production must be uniformly managed under the following provisions:

Point a) Recovered coal in production is a type of waste material obtained during the production process. Enterprises assigned the task of consuming recovered coal for external needs or reusing it in primary or secondary production must account for reduced costs (including both planned and actual costs) according to the unified recovered waste material price set out in Section II below.

Point b) According to the annual plan approved, the amount of recovered coal in electricity production that passes through the screening line of secondary production units or does not pass through the screening line must be sold to state coal distribution agencies at prescribed prices (including over-plan recoveries). Enterprises may not sell to cooperatives or private individuals without authorization. If coal supply agencies fail to timely fulfill contracts for recovered coal consumption affecting enterprise production, enterprises may sell outside the plan (including to cooperatives or private individuals) with the approval of the Power Company Director and report to the competent ministry and notify the coal supply agency.

In cases of selling outside the plan at agreed prices (higher than current prescribed prices and decided by the Power Company Director), the price difference between the prescribed price and the agreed price must be fully remitted to the state budget.

Point c) The cost of coal ash includes the recovered waste material price, screening line costs, consumption, and part of the enterprise management costs allocated. Enterprises organizing secondary production to recover coal ash must maintain separate books clearly showing the cost and results of sales.

Chapter II. Distribution of Income from Selling Recovered Coal.

Clause 1. The value of recovered waste material to reduce fuel costs in the cost of electricity is specified as follows:

-Coal ash: 60 dong/ton

-Ninh Binh coal dust and slag: 30 dong/ton.

The above prices will be adjusted (increased or decreased) in proportion to changes (increase or decrease) in the sale price of coal ash and coal dust according to state regulations.

-Planned costs for recovering coal ash, coal dust, slag for producing clay bricks, slag bricks, cement clinker, etc., are reviewed specifically by Power Companies for electricity plants.

-Annually, when calculating the planned cost of electricity, enterprises base their calculations on the planned volume of recovered coal and the above unit prices to calculate the value of recovered waste material to reduce the planned cost of electricity. When accounting for the actual cost of electricity, they base their calculations on the actual volume of recovered coal (including within and exceeding the plan) and the above unit prices to reduce the actual cost.

Clause 2. Revenue from the consumption of recovered coal includes revenue from the sale of excess recovered coal volumes outside the plan at agreed prices and revenue from selling recovered coal to coal supply agencies at prescribed prices:

-Coal ash and dust: According to Decision 09 VCXT/BB dated February 19, 1982. Specifically:

+In Zone I: 140 dong/ton

+In Zone II: 150 dong/ton

+In Zone III: 160 dong/ton

+In Zone IV: 170 dong/ton

-Ninh Binh slag: 80 dong/ton

Clause 3. Profit from recovered coal is planned and accounted for separately according to the formula:

Clause 4. Profit from recovered coal and profit from other secondary products are distributed and utilized as follows:

-30% remitted to the state budget

-70% retained by the enterprise and the company.

The portion left for the enterprise and company shall be used additionally for industrial meals and to establish the enterprise fund according to the current regulations.

III. Implementation Provisions.

This Circular shall uniformly apply to all coal-fired thermal power plants and take effect from November 1, 1983.

The distribution of income arising before November 1, 1983, shall be reviewed and resolved specifically by the Ministry of Finance - Electricity.

All previous decisions by sectors and levels that are contrary to this Circular shall be annulled.