Circular No. 42/2011/TT-BCT on electricity sale prices and implementation guidelines

✦ Smart summary

Circular No. 42/2011/TT-BCT stipulates electricity sale prices and implementation guidelines for groups of electricity users, effective from December 20, 2011. This circular specifies specific price levels based on voltage level, time of day usage, and purpose of electricity use.

Scope of application

Organizations and individuals purchasing electricity from the national power grid; retail electricity suppliers; electricity consumers;

Key points

The average electricity sale price is 1,304 VND/kWh (excluding VAT);
Electricity sale prices according to voltage level and time of day usage are specified in detail for different customer groups;
Retail electricity suppliers must meet the conditions to apply wholesale electricity prices, otherwise their operating licenses will be revoked;
Tiered residential electricity sale prices are applied to poor households and low-income households with monthly consumption up to 50 kWh;
Wholesale electricity prices for rural areas and collective housing complexes are detailed based on voltage level and purpose of use;

🌐 Social impact of this document

Positive impact: Reducing the burden of electricity costs for poor households and low-income households;
Negative impact: Increasing production costs for businesses and service providers;
Limiting the rights of some retail electricity suppliers that do not meet the conditions to apply wholesale prices;

❓ Frequently asked questions

What is the average electricity sale price?

The average electricity sale price is 1,304 VND/kWh (excluding VAT).

Which entities are eligible for tiered residential electricity sale prices?

Poor households and low-income households with regular monthly consumption not exceeding 50 kWh.

What is the wholesale electricity price for rural areas?

The wholesale residential electricity price for rural areas for consumption from 0-100 kWh is 981 VND/kWh, from 101-150 kWh is 1,054 VND/kWh.

What conditions must be met to apply wholesale electricity prices?

Retail electricity suppliers must have an Operating License, separate accounting records, purchase and sale contracts, and metering devices.

What is the wholesale electricity price for industrial zones?

The wholesale electricity price for manufacturing industries in industrial zones with capacity of 100 MVA or more during normal hours is 1,060 VND/kWh, from 50-100 MVA is 1,055 VND/kWh.

Full text

CIRCULAR

Provisions on electricity sale prices and implementation guidance

_____________________

BASED ON Decree No. 189/2007/NĐ-CP dated December 27, 2007 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Industry and Trade; Decree No. 44/2011/NĐ-CP dated June 14, 2011 of the Government amending and supplementing Article 3 of Decree No. 189/2007/NĐ-CP;

Pursuant to the Electricity Law dated December 3, 2004; Decree No. 105/2005/NĐ-CP dated August 17, 2005 of the Government detailing and guiding the implementation of certain provisions of the Electricity Law;

BASED ON Decision No. 21/2009/QĐ-TTg dated February 12, 2009 of the Prime Minister on electricity selling prices for 2009 and the years 2010-2012 under the market mechanism;

Pursuant to Decision No. 24/2011/QĐ-TTg dated April 15, 2011 of the Prime Minister on adjusting electricity sale prices under the market mechanism;

BASED ON Decision No. 268/QĐ-TTg dated February 23, 2011 of the Prime Minister on the Retail Electricity Price List to be applied from 2011;

The Ministry of Industry and Trade hereby stipulates the electricity selling prices and provides guidance on implementation as follows:

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation and Applicability

1. This Circular stipulates detailed retail electricity prices for various customer groups based on the average electricity selling price determined according to the mechanism prescribed in Decision No. 24/2011/QĐ-TTg dated April 15, 2011 of the Prime Minister on adjusting electricity selling prices under the market mechanism, the approved retail electricity tariff structure by the Prime Minister, and the wholesale electricity price for retail electricity units purchasing electricity directly from State-owned Power Corporations or affiliated power units.

2. This Circular applies to organizations and individuals purchasing and selling electricity from the national power system and related organizations and individuals.

3. Electricity sale prices in areas not connected to the national grid shall be approved by the People's Committee of the province after receiving written comments from the Electricity Regulatory Authority.

Article 2. Average Electricity Sale Price

The average electricity selling price is 1,304 VND/kWh (excluding value-added tax), corresponding to the detailed calculation parameters set out in Part A of the Appendix to this Circular.

Article 3. Electricity Sale Prices Based on Voltage Level

1. Electricity selling prices apply according to voltage level for customers using electricity for production, business services, irrigation pumping, administrative and public services, and other purposes at high-rise residential buildings in cities and new urban areas.

2. The electricity metering system installed at which voltage level determines the electricity selling price according to the price prescribed at that voltage level.

Article 4. Electricity Sale Prices Based on Time of Day Usage

Electricity sale prices are defined based on time of day usage (hereinafter referred to as three-tier pricing) as follows:

1. Normal Hours

a) From Monday to Saturday

- From 04:00 to 09:30 (05 hours and 30 minutes);

- From 11:30 to 17:00 (05 hours and 30 minutes);

- From 20:00 to 22:00 (02 hours).

b) Sunday

From 04:00 to 22:00 (18 hours).

2. Peak Hours

a) From Monday to Saturday

- From 09:30 to 11:30 (02 hours);

- From 17:00 to 20:00 (03 hours).

b) Sunday: no peak hours

3. Off-Peak Hours

All days of the week: from 22:00 to 04:00 the following morning (06 hours).

Article 5. Conditions for Applying Wholesale Electricity Prices

1. The wholesale electricity prices stipulated in Articles 15, 16, and 17 of this Circular shall apply to retail electricity units meeting the following conditions:

a) Possessing a Power Business License in the distribution and retail electricity sectors issued by the competent authority, except in cases exempted from obtaining a Power Business License as provided for in point c, Clause 1, Article 34 of the Electricity Law;

b) Maintaining accounting books in accordance with regulations, with the retail electricity business portion being separately accounted for from other business activities;

c) Having a power purchase and sale contract and individual electricity meter installed for each household user as stipulated in Article 24 of the Electricity Law; issuing a value-added tax invoice for electricity charges to each electricity consumer according to the payment period specified in the power purchase and sale contract, in accordance with regulations of the Ministry of Finance.

2. For retail electricity units that fail to meet all conditions stipulated in Clause 1 of this Article, the wholesale electricity unit shall be responsible for reporting to the Department of Industry and Trade for submission to the provincial People's Committee for decision to revoke the Power Business License and transfer the power grid under the management of such unit to the Power Corporation to sell electricity directly to electricity consumers. During the waiting period for completion of the handover procedures, the wholesale electricity unit is permitted to apply the stepped electricity retail price for residential use to the entire measured electricity consumption recorded by the total meter according to the household usage quota indicated on the latest electricity bill.

Article 6. Guidelines for Implementing Electricity Sales Prices

1. Effective date of the tariff schedule: from December 20, 2011.

2. The electricity sales prices stipulated in this Circular do not include value-added tax.

3. Detailed guidelines for implementing the price list are specified in Part B of the Appendix to this Circular.

4. In case the average electricity selling price is adjusted according to the provisions of Decision No. 24/2011/QĐ-TTg dated April 15, 2011 of the Prime Minister on adjusting electricity selling prices under the market mechanism and Circular No. 31/2011/TT-BCT dated August 19, 2011 of the Ministry of Industry and Trade on adjusting electricity selling prices based on basic input parameters, the Vietnam Electricity Corporation shall be responsible for adjusting detailed electricity selling prices for various customer groups.

Chapter II

ELECTRICITY SALES PRICE LIST

Article 7. Retail Electricity Prices for Production Sectors

Retail electricity prices for production sectors are as follows:

Serial number	Applicable objects	Electricity sales price (VND/kWh)
1	a) Normal Hours
	b) Low Demand Hours	1.102
	c) Peak Hours	683
	Voltage Level from 22 kV to Below 110 kV	1.970
2	Voltage Level from 6 kV to Below 22 kV
	b) Low Demand Hours	1.128
	c) Peak Hours	710
	Voltage Level from 22 kV to Below 110 kV	2.049
3	Voltage Level Below 6 kV
	b) Low Demand Hours	1.164
	c) Peak Hours	727
	Voltage Level from 22 kV to Below 110 kV	2.119
4	Retail Electricity Prices for Administrative and Public Service Units
	b) Low Demand Hours	1.216
	c) Peak Hours	767
	Voltage Level from 22 kV to Below 110 kV	2.185

Customers purchasing electricity at 20kV voltage level shall be charged according to the price applicable for the voltage range from 22kV to below 110kV.

Article 8. Retail Electricity Prices for Irrigation Pumps

Retail electricity prices for irrigation pumps are as follows:

Serial number	Voltage Level	Electricity sales price (VND/kWh)
1	From 6 kV upwards
	b) Low Demand Hours	1.013
	c) Peak Hours	526
	Voltage Level from 22 kV to Below 110 kV	1.500
2	Below 6 kV
	b) Low Demand Hours	1.084
	c) Peak Hours	553
	Voltage Level from 22 kV to Below 110 kV	1.553

Article 9. Retail Electricity Prices for Administrative and Public Service Entities

Retail electricity prices for administrative and public service entities are as follows:

Serial number	Applicable objects	Electricity sales price (VND/kWh)
1	Voltage Level from 6 kV Upwards
	a) Voltage level from 6 kV upwards	1.184
	b) Voltage level below 6 kV	1.263
2	Public lighting
	a) Voltage level from 6 kV upwards	1.290
	b) Voltage level below 6 kV	1.369
3	Administrative and public service entity
	a) Voltage level from 6 kV upwards	1.316
	b) Voltage level below 6 kV	1.369

Article 10. Retail Electricity Prices for Business Purposes

Retail electricity prices for business purposes are as follows:

Serial number	Voltage Level	Electricity sales price (VND/kWh)
1	From 22 kV upwards
	b) Low Demand Hours	1.808
	c) Peak Hours	1.022
	Voltage Level from 22 kV to Below 110 kV	3.117
2	From 6 kV to below 22 kV
	b) Low Demand Hours	1.939
	c) Peak Hours	1.153
	Voltage Level from 22 kV to Below 110 kV	3.226
3	Below 6 kV
	b) Low Demand Hours	1.965
	c) Peak Hours	1.205
	Voltage Level from 22 kV to Below 110 kV	3.369

Article 11. Retail Electricity Prices for Residential Purposes

1. Tiered retail electricity prices for residential purposes are as follows:

Serial number	Monthly electricity consumption of one household	Electricity sales price (VND/kWh)
1	For 50 kWh (for poor households and low-income households)	993
2	For kWh from 0 to 100 (for ordinary households)	1.242
3	For kWh from 101 to 150	1.369
4	For kWh from 151 to 200	1.734
5	For kWh from 201 to 300	1.877
6	For kWh from 301 to 400	2.008
7	For kWh from 401 onwards	2.060

2. The first step price (0 - 50 kWh) applies only to poor households and low-income households that regularly consume no more than 50 kWh/month and have registered with the electricity supplier. Poor households and low-income households wishing to purchase electricity at the first step price must register according to the guidelines of the electricity supplier.

3. The price list from the second tier onwards applies to general households and to poor households and low-income households that have registered for electricity usage starting from the 51st kWh.

4. The retail electricity price for residential use for temporary and short-term electricity users who purchase electricity through prepaid cards is: 1,721 VND/kWh (price excluding value-added tax).

Article 12. Retail Electricity Prices in Areas Not Connected to the National Grid

1. The retail electricity price for residential use in rural, mountainous, and island areas not yet connected to the national power grid shall be approved by the provincial People's Committee but shall not exceed the ceiling and floor prices as follows:

a) Floor price: 1,956 VND/kWh;

b) Ceiling price: 3,260 VND/kWh.

2. Retail electricity units in rural, mountainous, and island areas not yet connected to the national power grid shall be responsible for developing a pricing plan for various customer groups in these areas on the principle of ensuring commercial viability and clearly identifying the loss due to selling electricity for residential use at the ceiling price but lower than the approved commercial viability price. Such plans shall be submitted to the Department of Industry and Trade for review and reported to the Electricity Regulatory Authority for comments in writing before April 1st each year, to be approved by the provincial People's Committee before July 1st each year.

Article 13. Retail electricity prices in areas connected to the national power grid that simultaneously have local power generation sources

Retail electricity units in areas connected to the national power grid with local power generation facilities combining self-generation with purchases from the national power system to sell electricity to consumers shall be responsible for developing a pricing plan for various customer groups in these areas to be reviewed by the Electricity Regulatory Authority and submitted to the Ministry of Industry and Trade for approval. Retail electricity units shall obtain formal written approval from the provincial People's Committee for the pricing plan before submitting it for review.

In case the national electricity price is adjusted, the retail electricity price in areas connected to the national power grid with local power generation facilities (in industrial zones) shall be adjusted accordingly to the national average electricity price adjustment as stipulated in Article 5 of Circular No. 31/2011/TT-BCT dated August 19, 2011 of the Ministry of Industry and Trade on adjusting electricity selling prices based on basic input parameters.

Chapter III

RETAIL ELECTRICITY PRICES

Article 14. Wholesale electricity prices for the Vietnam Power Corporation

1. The wholesale electricity selling price for the Vietnam Electricity Corporation (Electricity Trading Company) to the State Grid Corporation of Vietnam at delivery points shall be determined in accordance with the guidelines of the Ministry of Industry and Trade, in compliance with the provisions of Decision No. 24/2011/QD-TTg dated April 15, 2011 of the Government on adjusting electricity prices according to market mechanisms and Circular No. 31/2011/TT-BCT dated August 19, 2011 on adjusting electricity prices based on basic input parameters.

2. The average transmission price calculated at the delivery point corresponding to the volume of electricity transmitted at the delivery point to the distribution network is 83.3 dong/kWh.

Article 15. Wholesale electricity prices for rural areas

1. Determination of the volume of wholesale electricity for rural areas

The wholesale electricity price for rural areas applies to electricity retail units for the volume of wholesale electricity purchased measured at the total meter installed at the transformer station.

2. Wholesale electricity prices for rural residential use are as follows:

No.	Average usage of a rural household per month after the total meter	Electricity sales price (VND/kWh)
1	For 50 kWh (only for poor and low-income households)	807
2	For kWh from 0 to 100 (for ordinary households)	981
3	For kWh from 101 to 150	1.054
4	For kWh from 151 to 200	1.335
5	For kWh from 201 to 300	1.455
6	For kWh from 301 to 400	1.556
7	For kWh from 401 onwards	1.607

The wholesale electricity selling price for rural residential use is the price sold at the total meter by the State Grid Corporation, the Electricity Corporation, or units authorized by the Vietnam Electricity Corporation to sell electricity to rural retail electricity suppliers.

The principle for determining the quota of electricity usage for households using electricity for residential purposes after the total meter is stipulated in Point b Clause 1 Section IV Part B of the Appendix to this Circular.

3. The wholesale electricity selling price for purposes other than residential use at the total meter for purchasing rural electricity is VND 1,063 per kWh.

Article 16. Wholesale electricity prices for collective housing areas and residential clusters

1. Determination of the volume of wholesale electricity for collective housing areas and residential clusters

The wholesale electricity selling price for collective housing areas and community clusters applies to retail electricity suppliers that purchase wholesale electricity measured at the total meter installed at the substation or at the branch point of the low-voltage distribution line.

2. Wholesale electricity prices for residential use in collective housing areas and residential clusters are as follows:

No.	Average consumption per household in a month after the total meter	Electricity sales price (VND/kWh)
1	City, town
a)	Transformer substation invested by the Seller
	For 50 kWh (allocated to poor and low-income households)	913
	For kWh from 0 to 100 (for ordinary households)	1.142
	For kWh from 101 to 150	1.239
	For kWh from 151 to 200	1.569
	For kWh from 201 to 300	1.721
	For kWh from 301 to 400	1.852
	For kWh from 401 onwards	1.899
b)	Transformer substation invested by the Buyer
	For 50 kWh (for poor households and low-income households)	900
	For kWh from 0 to 100 (for ordinary households)	1.117
	For kWh from 101 to 150	1.200
	For kWh from 151 to 200	1.520
	For kWh from 201 to 300	1.668
	For kWh from 301 to 400	1.786
	For kWh from 401 onwards	1.854
2	Town, district capital
a)	Transformer substation invested by the Seller
	For 50 kWh (for poor households and low-income households)	882
	For kWh from 0 to 100 (for ordinary households)	1.086
	For kWh from 101 to 150	1.170
	For kWh from 151 to 200	1.483
	For kWh from 201 to 300	1.633
	For kWh from 301 to 400	1.747
	For kWh from 401 onwards	1.792
b)	Transformer substation invested by the Buyer
	For 50 kWh (for poor households and low-income households)	863
	For kWh from 0 to 100 (for ordinary households)	1.068
	For kWh from 101 to 150	1.141
	For kWh from 151 to 200	1.445
	For kWh from 201 to 300	1.564
	For kWh from 301 to 400	1.682
	For kWh from 401 onwards	1.726

The wholesale electricity price for residential use in collective housing areas and residential clusters is the price sold at the total meter by the Vietnam Power Corporation, Electricity Corporation, or authorized unit to the electricity retail unit for collective housing areas and residential clusters.

The wholesale electricity price for high-rise apartment buildings in cities and new urban areas is as follows:

No.	Average usage of a household per month after the total meter	Electricity sales price (VND/kWh)
1	For kWh from 0 to 100	1.211
2	For kWh from 101 to 150	1.336
3	For kWh from 151 to 200	1.692
4	For kWh from 201 to 300	1.831
5	For kWh from 301 to 400	1.956
6	For kWh from 401 onwards	2.006

3. The wholesale electricity selling price for purposes other than residential use in collective housing areas and community clusters is stipulated as follows:

Serial number	Borrowing and returning area	Electricity sales price (VND/kWh)
I	City (excluding high-rise apartment buildings in cities and new urban areas), town, town, district capital (regardless of voltage level)	1.072
II	High-rise apartment buildings in cities and new urban areas
1	Retail Electricity Prices for Residential Use	1.727
2	Voltage Level Below 6 kV	1.852
3	Retail Electricity Prices for Administrative and Public Service Units	1.877

Article 17. Wholesale electricity prices for industrial zones

1. The wholesale electricity selling price at the 110kV busbar of the 110kV substation in industrial zones applies to cases where retail electricity suppliers purchase wholesale electricity at the 110kV busbar of the industrial zone (the 110kV substation invested by the buyer) to sell to electricity users within the industrial zone and is stipulated as follows:

Serial number	Total capacity of the main transformers (MBA) of the 110/35-22-10-6kV substation	Electricity sales price (VND/kWh)
1	> 100 MVA
	b) Low Demand Hours	1.060
	c) Peak Hours	664
	Voltage Level from 22 kV to Below 110 kV	1.927
2	From 50 MVA to 100 MVA
	b) Low Demand Hours	1.055
	c) Peak Hours	642
	Voltage Level from 22 kV to Below 110 kV	1.917
3	< 50 MVA
	b) Low Demand Hours	1.050
	c) Peak Hours	641
	Voltage Level from 22 kV to Below 110 kV	1.904

2. The wholesale electricity selling price by the Electricity Corporation for retail electricity suppliers at the medium-voltage busbar of the 110/35-22-10-6kV substation or at the branch point of the medium-voltage line entering the industrial zone shall be the retail electricity price for production industries at the corresponding medium-voltage level as prescribed in Article 7 of this Circular, reduced by 2%.

3. The wholesale electricity selling price by the Electricity Corporation for retail electricity suppliers at the medium-voltage side of the low-voltage substations shall be the retail electricity price applicable to production industries at the corresponding medium-voltage level as prescribed in Article 7 of this Circular.

Chapter IV

IMPLEMENTATION

Article 18. Inspection Responsibilities

1. The Department of Industry and Trade shall be responsible for inspecting and supervising retail electricity suppliers under its jurisdiction in implementing electricity selling prices as prescribed in this Circular. In case of discovering that suppliers do not meet the conditions stipulated in Article 5 of this Circular, the Department of Industry and Trade shall take responsibility for suspending operations of violating organizations, report to the Provincial People's Committee to revoke the power business license issued by the provincial People's Committee, or report to the Electricity Regulatory Authority to revoke the power business license issued by the Electricity Regulatory Authority, and transfer the operation directly to the Electricity Corporation to supply electricity to end-users.

2. The Department of Industry and Trade shall be responsible for inspecting and supervising the implementation of household usage quotas and retail electricity prices at rental housing locations to ensure that tenants are correctly applying the retail electricity prices for residential use as prescribed in this Circular.

Article 19. Effective Date

1. This Circular takes effect from December 20, 2011, replacing Circular No. 05/2011/TT-BCT dated February 25, 2011 of the Ministry of Industry and Trade on electricity selling prices for 2011 and guidance on implementation.

2. During the implementation period, if there are any difficulties, relevant units are requested to directly reflect them to the Electricity Regulatory Authority for examination and resolution within their authority, or report to the Ministry of Industry and Trade for resolution./.