Consolidated Document number 56-VBHN/BCT Method for determining the price of power generation services; principles for calculating electricity prices to implement power projects; main contents of power purchase agreements

SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom - Happiness _______________________

 

 

CIRCULAR

Methods for determining the price of power generation services; principles for calculating electricity prices to implement power projects; main contents of power purchase and sale contracts

 

Circular No. 12/2025/TT-BCT dated February 1, 2025, issued by the Minister of Industry and Trade on methods for determining the price of power generation services; principles for calculating electricity prices to implement power projects; main contents of power purchase and sale contracts, effective from February 1, 2025, amended and supplemented by:

Circular No. 54/2025/TT-BCT dated November 21, 2025, issued by the Minister of Industry and Trade amending and supplementing some articles of Circular No. 09/2025/TT-BCT dated February 1, 2025, issued by the Minister of Industry and Trade stipulating the dossier, procedures, and methods for determining and approving the framework price for power generation; stipulating the dossier, procedures, and methods for constructing and approving the framework price for imported electricity, and Circular No. 12/2025/TT-BCT dated February 1, 2025, issued by the Minister of Industry and Trade stipulating methods for determining the price of power generation services; principles for calculating electricity prices to implement power projects; main contents of power purchase and sale contracts, effective from November 21, 2025.

Pursuant to the Electricity Law dated November 30, 2024;

Pursuant to Decree No. 96/2022/NĐ-CP dated November 29, 2022, of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Industry and Trade; Decree No. 105/2024/NĐ-CP dated August 1, 2024, amending and supplementing some articles of Decree No. 96/2022/NĐ-CP, and Decree No. 26/2018/NĐ-CP dated February 28, 2018, of the Government on the Charter of Organization and Operation of Vietnam Electricity Corporation;

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

The Minister of Industry and Trade issues this Circular stipulating methods for determining the price of power generation services; principles for calculating electricity prices to implement power projects; main contents of power purchase and sale contracts.[1]

Chapter I. GENERAL PROVISIONS

 

Article 1. Scope of Regulation and Applicability

Article 1. This Circular provides detailed guidance on Clause 3, Article 12, Clause 5, Article 44, Point g, Clause 1, Article 51 of the Law on Electricity No. 61/2024/QH15 regarding methods for determining the price of power generation services; principles for calculating electricity prices to implement power projects; main contents of power purchase and sale contracts.

2. This Circular applies to the following entities:

a) Power plants operating within the territory of the Socialist Republic of Vietnam connected to the national power grid;

b) Other relevant agencies, organizations, and individuals.

3.[2] The provisions on methods for determining the price of power generation services; principles for calculating electricity prices to implement power projects; main contents of power purchase and sale contracts stipulated in this Circular shall not apply to the following entities: strategic multi-purpose hydropower plants; small renewable energy plants applying the avoided cost tariff mechanism; independent power plants invested under the Build-Operate-Transfer (BOT) model; power plants and units providing ancillary services; pumped storage hydropower plants; independent energy storage systems; power plants applying the feed-in tariff mechanism as prescribed in relevant documents.

Article 2. Interpretation of Terms

In this Circular, the following terms shall be understood as follows:

1. The seller of electricity is the power generation unit owning the power plant.

2. The buyer of electricity is Vietnam Electricity Corporation (or its representative according to the分级任务的原因是输入文本较长，包含多个定义和条款，为了确保准确无误地翻译每一个部分，并保持输出格式与输入一致，我将逐一处理每个编号的段落。以下是第一个部分的翻译结果：

3. Project sponsors is the entity, organization, or individual that owns capital, borrows capital, or is directly assigned to manage and use capital for implementing power project activities.

4. Electric energy delivery and receipt is the entire electric energy delivered by the seller to the buyer.

5. Power Generation Unit is the power unit owning one or more power plants.

6. System Operator and Market Operator is the State-owned Joint Stock Company for National Power System Operation and Electricity Market or another name depending on the level of competitive electricity market development.

7. Fuel purchase and sale contract are agreements between power generation units and fuel trading units to supply fuel to power plants, signed in accordance with relevant laws, ensuring legal fuel sources, competitive prices, and transparency.

8. Fuel storage, regasification, and distribution contract are agreements between power generation units or fuel trading units and liquefied natural gas (LNG) storage investment and management units for storing, regasifying, and distributing natural gas fuel to power plants, signed in accordance with relevant laws, ensuring competitive prices, and transparency.

9. Fuel transportation contract are agreements between power generation units or fuel trading units and fuel transportation units to transport fuel to power plants, signed in accordance with relevant laws, ensuring competitive prices, and transparency.

10. Base year is the total approved investment amount used to calculate the power generation service price.

11. New power plant is a newly constructed power plant or an expanded part of a power plant that has not yet signed its first power purchase agreement.

12. Net Heat Rate is the amount of heat consumed to produce one kWh of electric energy at the point of electric energy delivery (BTU/kWh or kJ/kWh or kCal/kWh).

13. Total investment cost is the total construction investment cost of the project determined according to relevant laws, consistent with the basic design and other contents of the feasibility study report for construction investment.

14. Adjusted total investment amount is the total investment amount adjusted according to the effective construction-related laws at the time of negotiating the power generation service price.

15. Final investment cost is the total legitimate costs incurred during the investment process to put the project into operation. Legitimate costs are those carried out within the scope of the approved project, design, and budget; construction contracts signed in compliance with the law; including adjustments and supplements approved according to regulations and authority, the final investment cost must be within the approved total investment amount (or adjusted according to the law).

16.[3] Expected value P50 is the average multi-year electric energy delivery value of the power plant, with a 50% probability that the actual multi-year electric energy delivery of the power plant will reach or exceed this value.

Chapter II. METHOD FOR DETERMINING THE POWER GENERATION SERVICE PRICE, PRINCIPLES FOR CALCULATING ELECTRICITY PRICES TO IMPLEMENT POWER PROJECTS

 

Section 1. METHODS FOR DETERMINING THE PRICE OF GENERATION SERVICES FOR NEW POWER PLANTS

Article 3. Principles for Determining the Price of Generation Services

1. The price of power purchase and sale contracts for power plants shall be established based on:

a) Reasonable and legitimate costs of the project sponsor throughout the economic life of the project;

b) An internal rate of return (IRR) not exceeding 12%.

2. The price of power purchase and sale contracts shall be agreed upon between the power seller and buyer and shall be established according to the method prescribed in Article 4 of this Circular,.

3. The price of power purchase and sale contracts does not include value-added tax, water resource tax, fees for water resource exploitation rights, forest environmental service fees, solid waste environmental protection fees, and industrial wastewater environmental protection fees (applicable to thermal power plants), and other taxes, fees, and monetary charges as stipulated by competent state management agencies (excluding taxes and fees already included in the pricing scheme for generation services).

4. The price of power purchase and sale contracts shall be compared with the base year generation price framework:

a) The price of power purchase and sale contracts in the base year shall not exceed the generation price framework issued by the Minister of Industry and Trade in the base year, where the price of power purchase and sale contracts for power plants shall be calculated based on cost components corresponding to the cost components of the generation price framework;

b) In cases where there is no generation price framework in the base year, the price of power purchase and sale contracts shall be calculated by converting cost components corresponding to the nearest generation price framework after the base year for that type of power plant.

Article 4. Method for Determining the Base Year Price of Power Purchase and Sale Contracts for Power Plants

The base year price of power purchase and sale contracts P_C (VND/kWh) is determined according to the following formula:

"5. The pre-tax weighted average cost of capital i (%) is determined according to the formula below:_C x T^CD + P^BD

1. P^CD (VND/kWh) is the fixed base year price, determined according to the following formula:

"5. The pre-tax weighted average cost of capital i (%) is determined according to the formula below:^CD = FC + FOMC_{The Standing Office of the Council for International Cooperation on Non-Governmental Organizations (Vietnam Friendship Association) is the agency responsible for receiving registration dossiers, leading, and coordinating with member agencies of the Council to examine dossiers and return results of reviews of registration dossiers of foreign non-governmental organizations in Vietnam.}

Where:

FC:	The average fixed price is determined according to the provisions at Article 5 of this Circular (VND/kWh);
FOMCThe Standing Office of the Council for International Cooperation on Non-Governmental Organizations (Vietnam Friendship Association) is the agency responsible for receiving registration dossiers, leading, and coordinating with member agencies of the Council to examine dossiers and return results of reviews of registration dossiers of foreign non-governmental organizations in Vietnam.:	The fixed operation and maintenance cost for the base year is determined according to the provisions at Article 6 of this Circular (VND/kWh).

2. P^BD (VND/kWh) is the variable base year price, determined as follows:

a) For thermal power plants, P^BD are determined according to the following formula:

Where:

	The adjustable variable component price is adjusted according to fluctuations in the main fuel costs of the power plant in the base year, determined according to the method prescribed in Clause 1, Article 7 of this Circular (VND/kWh);
	The adjustable variable component price is adjusted according to fluctuations in the auxiliary fuel costs of the power plant in the base year, determined according to the method prescribed in Clause 2, Article 7 of this Circular (VND/kWh);
	The adjustable variable component price is adjusted according to other fluctuations of the power plant in the base year, determined according to the method prescribed in clause 3 Article 7 of this Circular (VND/kWh);
	The base year transportation cost for the main fuel for power generation, determined according to the method prescribed in Clause 4, Article 7 of this Circular (VND/kWh).

b) For hydropower plants, solar power plants, and wind power plants: P^BD equals 0 (zero).

3. Testing, trial run, and acceptance costs of power plants: Payment for testing, trial run, and acceptance costs incurred before the commercial operation date shall be agreed upon between the power seller and buyer to ensure they are not duplicated in the approved total project investment.

Article 5. Method for Determining the Average Fixed Price of Power Plants

1. The average fixed price of power plants (FC) shall be determined based on financial analysis of the project according to Form 1 and Form 2 prescribed in Appendix II attached to this Circular. Input parameters for establishing the average fixed price of power plants (FC) shall be determined according to the provisions of Clause 2 of this Article.

2. Main input parameters used in calculating the average fixed price of power plants (FC):

a) Investment costs: Investment costs shall be determined based on the total investment amount (or adjusted total investment amount) effective at the time of negotiating the generation service price or the final settlement investment amount for power plants negotiated according to the provisions at Article 15 of this Circular shall be used to calculate the price of power generation services, including all costs under the responsibility of the power seller for investment up to the point of interconnection of the power plant, including items such as: power plant; infrastructure, ports for the power plant, electricity storage system (if applicable for renewable energy plants); grid investment costs from the power plant to the point of interconnection, other related costs, and costs allocated to the project (if any);

b)[4] Economic life: Shall be determined according to the provisions in Appendix I issued together with this Circular, except where there is a document from a competent state agency approving a different economic life for the project than that specified in this Circular, in which case it shall apply according to that document (years).

For offshore wind power plants, the economic life is determined as 25 (years).

For flexible power plants, the economic life is determined as 25 (years) or may be determined based on the feasibility study report for the construction project approved by the competent authority.

c)[5] The average annual power generated at the delivery point (A_GN) is calculated as follows:

A_{GN |||} = A_NM x (1 - organize credit institutions, foreign bank branches are responsible for organizing the implementation of this Circular._td ) x (1 - k_CS )

Where:

ANM:	The power output at the outlet of the power plant (excluding the battery storage system) is determined as follows (kWh): (i) For projects using public investment capital or state capital outside of public investment, ANM is determined based on the basic design (or technical design when the basic design cannot be determined) consistent with the power plant installation parameters reviewed by the competent state agency. For wind power plants and solar power plants, ANM is determined according to the P50 expectation level; (ii) For projects not using public investment capital or state capital outside of public investment, ANM is agreed upon by the power seller and buyer based on the feasibility study report (or technical design when the feasibility study report cannot be determined) consistent with the power plant installation parameters approved but not lower than the power output value determined in the report. For wind power plants and solar power plants, ANM is agreed upon by the power seller and buyer according to the P50 expectation level; (iii) For thermal power plants, ANM is calculated as follows: ANM x Torganize credit institutions, foreign bank branches are responsible for organizing the implementation of this Circular. x (1 - kcs)max "5. The pre-tax weighted average cost of capital i (%) is determined according to the formula below:organize credit institutions, foreign bank branches are responsible for organizing the implementation of this Circular.: Rated power of the generator at the approved design (kW); d.1. Amount of taxable income in Vietnam:max: Average number of hours of maximum capacity operation of the plant over many years applied according to the document of the competent state agency if there is a document of the competent state agency approving Tmax or according to the provisions in Appendix I issued together with this Circular. In cases where Tmax is not specified in Appendix I issued together with this Circular (including biomass power plants, waste-to-energy power plants, flexible power plants), Tmax is determined based on the feasibility study report approved or agreed upon by the power seller and buyer;
organize credit institutions, foreign bank branches are responsible for organizing the implementation of this Circular.td:	The self-use electricity ratio and the transformer loss rate of the power plant, transmission line losses to the national grid connection point (%) (if any) are agreed upon by the power seller and buyer based on the approved feasibility study report (or reviewed basic design) or according to the technical documentation of the equipment manufacturer at the time of negotiation (if any) but not exceeding the value in the approved feasibility study report (or reviewed basic design);
kCS:	The average capacity reduction rate (%) over the entire economic life of the thermal power plant (if any) is agreed upon by the power seller and buyer based on the approved feasibility study report (or reviewed basic design) or according to the technical documentation of the equipment manufacturer at the time of negotiation (if any).

For renewable energy power plants using combined battery storage systems, A_GN is calculated as follows:

Where:

AProvincial People's Committees set specific prices:	The average electricity used to charge the battery storage system (kWh) is determined as follows:
	ABESS:	Battery storage system capacity according to the approved design (kWh);
	d.1. Amount of taxable income in Vietnam:BESS :	The minimum number of charge-discharge cycles of the battery storage system agreed upon by the power seller and buyer based on the approved feasibility study report (or reviewed basic design) or according to the technical documentation of the equipment manufacturer at the time of negotiation (if any);
	d	The economic life of the power plant as stipulated in this clause (years);
	kv:	The average annual capacity degradation rate of the battery storage system over the entire economic life of the power plant (%) agreed upon by the power seller and buyer based on the approved feasibility study report (or reviewed basic design) or according to the technical documentation of the equipment manufacturer at the time of negotiation (if any);
	The round-trip efficiency of the battery storage system (%) agreed upon by the power seller and buyer based on the approved feasibility study report (or reviewed basic design) or according to the technical documentation of the equipment manufacturer at the time of negotiation (if any) but not less than 85%;

For projects not using public investment capital or state capital outside of public investment, in cases where A_GN cannot be determined according to the above formulas, the power seller and buyer agree based on the feasibility study report (or technical design when A_GN cannot be determined according to the feasibility study report) consistent with the approved power plant installation parameters, effective at the time of negotiation, and Agn is converted to the delivery point, but not lower than the power output value determined in these reports. For wind power plants and solar power plants, the P50 expectation level serves as the basis for determining A_GN.

d) Depreciation period for each main fixed asset group (years): Determined based on the depreciation period for each main fixed asset group according to the relevant legal framework's depreciation period or a document from a competent state agency allowing for different depreciation periods (if any).

d) The equity ratio, debt ratio, and phased investment capital in the total investment amount shall be determined according to the decision approving the investment project, the actual capital mobilization for the project at the time of negotiation, in accordance with the regulations issued by competent state agencies. The minimum equity ratio is 15% of the total investment amount of the project;

e) The interest rate on borrowed capital and the repayment period during the operation period shall be determined based on the loan agreement, and relevant documents and materials between the investor and financial institutions, banks providing loans.

In cases where the total borrowed capital in loan agreements or legal documents between the investor and financial institutions is lower than the total borrowed capital in the calculation method for electricity prices, the shortfall in borrowed capital shall be agreed upon by the seller and buyer of electricity based on the principle that the minimum repayment period for borrowed capital is 10 years and the interest rate on borrowed capital shall be as follows:

e1) The interest rate on foreign currency borrowed capital shall be determined by adding 3% per annum to the average SOFR (Secured Overnight Financing Rate) for a term of 180 days (180 Days - Average) over the most recent 36 months starting from the first day of March, June, September, or December of the negotiation year, as published by the Fed (Website: www.newyorkfed.org);

e2) The interest rate on domestic currency borrowed capital shall be determined by adding 3% per annum to the average interest rate for individual customers' deposits in Vietnamese dong for a term of 12 months payable at maturity over the most recent 60 months starting from the first day of March, June, September, or December of the negotiation year, as provided by four commercial banks (Vietnam Joint Stock Commercial Bank for Foreign Trade, Vietnam Joint Stock Commercial Bank for Industry and Trade, Vietnam Joint Stock Commercial Bank for Investment and Development, Vietnam Agricultural and Rural Development Bank or their legitimate successors) ;

g) Corporate income tax rates, other taxes, and fees: Shall be determined in accordance with relevant laws and regulations.

Article 6. Method for Determining Operating and Maintenance Costs of Power Plants

FOMC Base Year Operating and Maintenance Cost Price_{The Standing Office of the Council for International Cooperation on Non-Governmental Organizations (Vietnam Friendship Association) is the agency responsible for receiving registration dossiers, leading, and coordinating with member agencies of the Council to examine dossiers and return results of reviews of registration dossiers of foreign non-governmental organizations in Vietnam.} (VND/kWh) is determined according to the following formula:

 

Where:

	Operating and maintenance cost price based on major repair costs and other expenses in the base year, as stipulated in Clause 1 of this Article (VND/kWh);
	Operating and maintenance cost price based on labor costs in the base year, as stipulated in Clause 2 of this Article (VND/kWh).

1. Operating and maintenance cost price based on major repair costs and other expenses in the base year  (VND/kWh) is determined according to the following formula:

Where:

Economic life of the power plant as specified in the Appendix attached to this Circular (years).scl:

Apply the method of calculating total major repair costs and other expenses TCscl in the base year according to the following formula: Economic life of the power plant as specified in the Appendix attached to this Circular (years).scl = VĐTXD+TB x kscl ĐMTcdk

Where:

VĐTXD+TB	Total construction costs and equipment costs are determined based on the total investment amount specified in Point a, Clause 2, Article 5 of this Circular including costs of mobilizing customer-owned backup power sources to supplement national grid supply in emergency situations threatening serious disruption of power supply;
kscl	The ratio of major repair costs and other expenses (%) of the power plant shall be agreed upon by the seller and buyer of electricity but shall not exceed the provisions set out in Appendix I attached to this Circular. For power plants not specified inscl Appendix I attached to this Circular, it shall be agreed upon by the seller and buyer of electricity;
Ccdk:	Dredging costs for the port channel, infrastructure fees, and other related costs shall be agreed upon by the seller and buyer of electricity (if applicable) (VND). In cases where there are no data to calculate these costs in the base year, the seller and buyer of electricity shall agree to calculate the total cost value at the time of negotiation and adjust it to the base year at an annual rate of 2.5% (VND);
AGN:	The average annual power generation at the point of electricity delivery between the seller and buyer of electricity (kWh) shall be determined according to the provisions in Point c, Clause 2, Article 5 of this Circular.

2. Operating and maintenance cost price based on labor costs in the base year  (VND/kWh) is determined according to the following formula:

Where:

Economic life of the power plant as specified in the Appendix attached to this Circular (years).nc:	Total labor costs in the base year include salary costs, social insurance costs, health insurance costs, unemployment insurance costs, trade union fees, and accompanying allowances (VND); Total labor costs TCnc in the base year shall be determined based on the total labor costs of the power plant and converted to the base year as follows: In cases where the wage level applied to calculate labor costs of the power plant is equal to the regional minimum wage in the year of electricity price calculation: The conversion ratio to the base year shall be determined based on the regional minimum wage; In cases where the total labor costs cannot be determined according to the above case, the method of calculating total labor costs TCnc in the base year according to the following formula: Economic life of the power plant as specified in the Appendix attached to this Circular (years).nc = VĐTXD+TB x knc Where:
	VĐTXD+TB:	Total construction costs and equipment costs are determined based on the total investment amount specified in Point a, Clause 2, Article 5 of this Circular including costs of mobilizing customer-owned backup power sources to supplement national grid supply in emergency situations threatening serious disruption of power supply;
	knc:	The ratio of labor costs (%) of the power plant shall be agreed upon by the seller and buyer of electricity and shall not exceed the provisions set out in Appendix I attached to this Circular. For power plants not specified innc Appendix I attached to this Circular, it shall be agreed upon by the seller and buyer of electricity;
	AGN :	The average annual power generation at the point of electricity delivery between the seller and buyer of electricity shall be calculated according to the provisions in Point c, Clause 2, Article 5 of this Circular 4. Costs of purchasing transmission services, costs of purchasing distribution-retail electricity services, costs of purchasing system operation and dispatch services, costs of power plants providing system ancillary services, industry management and operation costs are determined based on costs plus regulated profit margins of the transmission, distribution-retail electricity, system operation and dispatch, and industry management and operation stages of the Vietnam Electricity Corporation according to levels of the electricity market as prescribed by the Ministry of Industry and Trade. Cost reductions are determined based on data from audited financial reports.

Article 7. Method for determining the variable price of thermal power plants

The variable price of thermal power plants at the base year P^BD (VND/kWh) is determined according to the following formula:

Where:

	The component of the variable price adjusted according to the fluctuation of the main fuel cost of the power plant at the base year, determined according to the method prescribed in Clause 1 of this Article (VND/kWh);
	The component of the variable price adjusted according to the fluctuation of the auxiliary fuel cost of the power plant at the base year, determined according to the method prescribed in Clause 2 of this Article (VND/kWh);
	The component of the variable price adjusted according to other fluctuations of the power plant at the base year, determined according to the method prescribed in Clause 3 of this Article (VND/kWh);
	The transportation cost of the main fuel for power generation at the base year, determined according to the method prescribed in Clause 4 of this Article (VND/kWh).

1. The component of the variable price adjusted according to the fluctuation of the main fuel cost of the power plant at the base year shall be determined according to the following formula:

In :

The average specific heat consumption of the power plant using the main fuel agreed upon by the electricity seller and buyer shall not exceed the design capacity/design technology corresponding to the total investment amount used to calculate the electricity price or the equipment manufacturer's parameters, calculated in accordance with the specified load level in Appendix I issued together with this Circular (kcal/kWh or kJ/kWh or BTU/kWh or kg/kWh);

The main fuel price at the base year is calculated as the weighted average of the purchase and sale fuel contracts or agreements (excluding VAT) (VND/kcal or VND/kJ or VND/BTU or VND/kg).

2. The component of the variable price adjusted according to the fluctuation of the auxiliary fuel cost of the power plant at the base year shall be determined according to the following formula:

Where:

	The average specific fuel consumption of the power plant using auxiliary fuel agreed upon by the electricity seller and buyer (kg/kWh or kcal/kWh or kJ/kWh or BTU/kWh);
	The auxiliary fuel price at the base year is the weighted average of the purchase and sale fuel contracts or agreements (excluding VAT) (VND/kg or VND/kcal or VND/kJ or VND/BTU).

3. The component of the variable price adjusted according to other fluctuations of the power plant at the base year  are determined according to the following formula:

Where:

Cvlp:	The annual total cost of auxiliary materials of the power plant is determined based on the quantity and unit price of various auxiliary materials used for power generation at the base year (VND). In cases where there are no data to calculate the annual total cost of auxiliary materials at the base year, it is permissible to use these cost components at times when sufficient data is available and slide them back to the base year at a rate of 2.5% per year;
Ckd:	The start-up costs include fuel costs and other start-up costs (VND); the number of start-ups allowed is agreed upon by the electricity seller and buyer based on system requirements and the operational characteristics of the power plant. In cases where there are no data to calculate the start-up costs at the base year, it is permissible to calculate the value of these total costs at the negotiation time and slide them back to the base year at a rate of 2.5% per year;
Ck:	Annual maintenance and repair costs include regular maintenance and repair costs calculated based on the total investment capital and equipment of the power plant, the regular maintenance cost ratio agreed upon by the electricity seller and buyer but not exceeding the provisions stipulated in Appendix I issued together with this Circular; For power plants not stipulated in Appendix I issued together with this Circular, they will be agreed upon by the electricity seller and buyer;
AGN:	The average annual power generation at the point of electricity delivery between the seller and buyer of electricity shall be calculated according to the provisions in Point c, Clause 2, Article 5 of this Circular 4. Costs of purchasing transmission services, costs of purchasing distribution-retail electricity services, costs of purchasing system operation and dispatch services, costs of power plants providing system ancillary services, industry management and operation costs are determined based on costs plus regulated profit margins of the transmission, distribution-retail electricity, system operation and dispatch, and industry management and operation stages of the Vietnam Electricity Corporation according to levels of the electricity market as prescribed by the Ministry of Industry and Trade. Cost reductions are determined based on data from audited financial reports.

4. The main fuel transportation cost of the power plant at the base year shall be determined according to the following formula:

Where:

The average specific heat consumption of the power plant is determined according to the provisions of Clause 1 of this Article;

The main fuel transportation cost for power generation at the base year (excluding VAT) (VND/kcal or VND/kJ or VND/BTU or VND/kg) and is determined as follows: For coal-fired thermal power plants: by the weighted average of coal transportation contracts or agreements; For natural gas-fired thermal power plants: by the weighted average of approved pipeline natural gas transportation service prices for power generation according to the Price Law and other relevant laws; For liquefied natural gas (LNG)-fired thermal power plants: by the weighted average of approved LNG storage, regasification, transportation, and distribution service prices for power generation according to the Price Law and other relevant laws; For waste-to-energy, biomass, and new energy power plants: agreed upon by the electricity seller and buyer based on the actual conditions of the power plant; For thermal power plants using a combination of multiple fuels: agreed upon by the electricity seller and buyer based on the actual conditions of the power plant; For fuel purchase and sale contracts where the main fuel price already includes the main fuel transportation cost, collection, transportation, distribution, storage, and regasification fees, then the corresponding main fuel transportation cost is equal to 0 (zero).

Article 8. Power plants without regulations on methods for determining the price of power generation services

In cases where power plants have not established methods for determining the price of power generation services or a pricing framework, the buyer and seller of electricity shall negotiate to establish appropriate pricing methods that reflect the actual conditions of the power plant and report to the Ministry of Industry and Trade for review and guidance.

Article 9. Temporary Price

In cases where the parties cannot agree on the contract price for electricity purchase and sale, both the seller and buyer of electricity may agree on a temporary price to apply until they reach an agreement on the formal price.

Article 10. Method for Determining the Price of Power Generation Services for Solar and Wind Power Plants that Have Signed Electricity Purchase and Sale Contracts with Vietnam Electricity but Do Not Fully Meet the Conditions for Applying Electricity Prices as Prescribed in Prime Minister's Decisions

The method for determining the price of power generation services for solar and wind power plants that have signed electricity purchase and sale contracts with Vietnam Electricity but do not meet the conditions for applying electricity purchase prices as prescribed in Prime Minister's Decision No. 11/2017/QĐ-TTg dated April 11, 2017, Decision No. 13/2020/QĐ-TTg dated April 6, 2020, Decision No. 37/2011/QĐ-TTg dated June 26, 2011, and Decision No. 39/2018/QĐ-TTg dated September 10, 2018 is as follows:

1. The seller and buyer of electricity shall base their determination of the price of power generation services on the principles set forth in this Circular and develop a pricing plan for the power generation services of the power plant:

a) The basis year for negotiating the price of power generation services is the commercial operation year of the power plant;

b) For parts of the power plant without a determined price for power generation services, the price of power generation services shall be determined based on the input parameters of the entire power plant.

2.[6] Annual average electricity delivery and total project investment shall be determined as follows:

a) For projects using public investment funds or state capital outside public investment, the total investment and annual average electricity delivery (at the P50 expectation level) shall be determined based on the design basis consistent with the installation parameters of the power plant (or technical design when the design basis cannot be determined), which has been reviewed by the competent authority;

b) For projects not using public investment funds or state capital outside public investment, the total investment and annual average electricity delivery (determined at the P50 expectation level) shall be agreed upon by the seller and buyer of electricity based on the feasibility study report (or technical design report when the feasibility study report cannot be determined) consistent with the approved installation parameters of the power plant.

3. Operating and Maintenance Costs of the Basis Year of the Power Plant FOMC_{The Standing Office of the Council for International Cooperation on Non-Governmental Organizations (Vietnam Friendship Association) is the agency responsible for receiving registration dossiers, leading, and coordinating with member agencies of the Council to examine dossiers and return results of reviews of registration dossiers of foreign non-governmental organizations in Vietnam.} When

Where:

Economic life of the power plant as specified in the Appendix attached to this Circular (years). :	Total operating and maintenance costs of the power plant shall be calculated according to the following formula: TC = VĐT x k Where:
	VĐT: c) Selling bonds above or below face value:	Investment cost of the power plant (in dong); The ratio of operating and maintenance costs (%) of the power plant shall be agreed upon by the seller and buyer of electricity but shall not exceed the provisions set out in Appendix I attached to this Circular.

4. Other parameters for calculating the price of power generation services, the method for determining the contract price of electricity purchase and sale of the power plant at the time of payment, and the principle for determining the fixed price annually of the electricity purchase and sale contract shall be agreed upon by the seller and buyer of electricity based on the provisions of Chapter II of this Circular.

5. Documents for negotiating electricity purchase and sale contracts shall be implemented in accordance with Clause 1 of Article 20 of this Circular Clause 1 of Article 20 of this Circular.

Article 11. Principles for Determining the Sale Price of Electricity in Tender Selection of Power Project Investors

In cases where tender selection of power project investors is conducted according to Clause 1, Article 19 of the Electricity Law, the electricity price in the tender invitation document shall be established based on the principles set out in Chapter II of this Circular. The set of calculation data for proposed electricity prices shall be based on the tender invitation document and the consulting unit.

Section 2. METHODS FOR DETERMINING THE PRICE OF GENERATION SERVICES OF OPERATING POWER PLANTS

Article 12. Method for Determining the Price of Generation Services for Power Plants Where the Power Purchase Contract Has Expired but the Economic Life of the Plant Has Not Ended

For power plants that have completed negotiations and signed power purchase contracts in accordance with Circular No. 41/2010/TT-BCT, Circular No. 56/2014/TT-BCT, Circular No. 57/2020/TT-BCT, and Circular No. 07/2024/TT-BCT, where the power purchase contract has expired but the economic life of the plant has not ended, the seller and buyer of electricity shall agree on the generation service price applicable for subsequent years until the end of the economic life, ensuring a fixed average price unchanged from the agreed price level.

Article 13. Method for Determining the Price of Generation Services for Power Plants That Have Reached the End of Their Economic Life

1. The fixed price of power plants that have reached the end of their economic life shall be determined based on the principle of ensuring that the plant recovers all costs associated with its electricity production and business activities. The pricing period shall be agreed upon by both parties or follow the major equipment overhaul cycle and reasonable profit levels. If there is a document from a competent authority approving the pricing period, it shall be applied according to the approval document of the competent authority.

2. The variable price of power plants that have reached the end of their economic life shall be determined based on the provisions at Article 7 of this Circular taking into account factors consistent with actual operation.

3. The average generation capacity shall be determined based on the approved design capacity of the power plant and T_max as stipulated in Appendix I issued together with this Circular. For power plants not specified T_max in Appendix I issued together with this Circular, the average electricity generation shall be determined based on the actual statistical data of the most recent cycle consistent with the next pricing cycle period.

4. In cases where power plants that have reached the end of their economic life have undergone investment upgrades, the seller and buyer of electricity shall negotiate and discuss the power purchase contract price of the power plant according to the provisions at Article 4, Article 5, Article 6 and Article 7 of this Circular and consistent with the depreciation period of the upgraded main equipment.

5. The term of the power purchase contract for power plants that have reached the end of their economic life shall be agreed upon by the seller and buyer of electricity based on the major equipment overhaul cycle.

Article 14. Method for Determining the Price of Generation Services for Power Plants With Valid Power Purchase Contracts But Where the Generation Service Price Has Expired Or the Power Plant Has Reached the End of Its BOT Contract Term Handover to the Government Or the Power Plant Applies the Electricity Purchase Price Mechanism in Documents Issued by Competent Authorities And the Power Plant Is Operating Commercially While the Power Purchase Contract Is Invalid

1. The generation service price shall be determined based on the principle of ensuring that the plant recovers all investment costs (if any), production and business costs, and reasonable profit levels.

2. The pricing period for the generation service price shall be based on the remaining economic life of the power plant or the remaining term of the power purchase contract or agreed upon by both parties.

3. The average generation capacity shall be determined based on the approved design capacity of the power plant and T_max as stipulated in Appendix I issued together with this Circular. For power plants not specified T_max as stipulated in Appendix I issued together with this Circular, the average electricity generation shall be determined based on the actual statistical data of the most recent cycle consistent with the next pricing cycle period.

4. The variable price of thermal power plants shall be determined based on the provisions at Article 7 of this Circular taking into account factors consistent with actual operation.

5. Operation and maintenance costs shall be agreed upon by the seller and buyer of electricity.

6. Investment costs for calculating the generation service price shall be determined based on the residual value of the asset at the time when the generation service price expires or the power purchase contract expires, plus any renovation and upgrade costs (if any).

Article 15. Method for determining the price of power generation services for renegotiated power plants based on final investment cost

For power plants that renegotiate the price of power generation services based on final investment cost as stipulated in Clause 1, Clause 2, Article 27 of this Circular:

1. After determining the final investment cost, the seller of electricity shall be responsible for sending to the buyer of electricity related documents concerning the final investment cost.

2. The seller of electricity and the buyer of electricity shall renegotiate the electricity price according to the following principles:

a) The method for determining the contract price for the purchase and sale of electricity as prescribed in Article 4 of this Circular,;

b) The parameters for calculating the contract price for the purchase and sale of electricity as prescribed in Article 4 of this Circular, and update the input parameters at the same time as determining the final investment cost;

c) The contract price for the purchase and sale of electricity must not exceed the power generation price range of the entire power plant's year of commercial operation;

d) The power generation service price shall apply from the date of commercial operation of the power plant, with a fixed annual price implemented according to the provisions of Article 16 of this Circular; no adjustment of the fixed annual price for previous years before the date when the seller of electricity and the buyer of electricity sign the contract to amend and supplement the purchase and sale contract based on the electricity price determined on the basis of the final investment cost;

e) The base year for power plants that renegotiate the power generation service price based on the final investment cost is the year of commercial operation of the entire power plant.

Section 3. METHODS FOR DETERMINING THE CONTRACT PRICE FOR THE PURCHASE AND SALE OF ELECTRICITY ON AN ANNUAL BASIS OF THE PURCHASE AND SALE CONTRACT

Article 16. Principles for determining the fixed annual price of the purchase and sale contract

1. The seller of electricity and the buyer of electricity have the right to apply the agreed average fixed price for each year during the term of the contract. In case the seller of electricity and the buyer of electricity agree to convert the agreed average fixed price into an annual fixed price, the determination of these fixed prices must comply with the principles set out in Clause 2 of this Article.

2. Based on actual borrowing conditions and the financial capacity of the project, the seller of electricity and the buyer of electricity agree on the average fixed price of the power plant as an annual fixed price (FC_{9. Travel distance is the distance traveled without using mechanical means (cars, motorcycles, motorboats) to reach locations for implementing technical forest management measures and patrolling to protect forests.} Year j price) with the condition that the average fixed price does not change compared to the agreed price level and complies with the following principles:

a) The discount rate used to calculate the annual fixed price shall be agreed upon by the seller of electricity and the buyer of electricity and shall be equal to the internal rate of return (IRR) of the power plant;

b) The investor shall fulfill the obligation to repay loans for power plant construction according to the loan repayment period.

Article 17. Principles for adjusting the annual power generation service price in the purchase and sale contract

1. The components of the operating and maintenance costs of the power plant shall be adjusted according to the following principles:

a) The component of operating and maintenance costs based on major repair costs and other costs shall be adjusted according to the average cost escalation rate specified in Appendix I attached to this Circular. The seller of electricity and the buyer of electricity shall consider agreeing and unifying the mechanism for adjusting the operating and maintenance cost component based on major repair costs and other costs for items with foreign currency origins;

b) The component of operating and maintenance costs based on labor costs shall be adjusted according to changes in the minimum regional wage at the time of payment or according to the Consumer Price Index (CPI) published by the Central Statistical Agency but not exceeding 2.5% per year.

2. Annually, based on the total foreign currency loan amount, the plan for repaying foreign currency loans, actual principal repayment data, the exchange rate agreed upon by the seller of electricity and the buyer of electricity in the power generation service price scheme, and the exchange rate applied in the preceding year, the seller of electricity and the buyer of electricity shall calculate and agree on the settlement plan for exchange rate differences. The exchange rate difference FED (USD) is calculated using the following formula:

Where:

- FTTH terminal devices	Number of foreign currencies in the power generation service price scheme agreed upon by the seller of electricity and the buyer of electricity (types);
d	Number of times foreign currency principal is repaid in the calculation year (times);
Di,j :	Actual foreign currency principal repaid in type i in the calculation year;
	Exchange rate at the time of payment j of type i foreign currency in the calculation year (.../VND);
	Base exchange rate of type i foreign currency agreed upon by the seller of electricity and the buyer of electricity in the power generation service price scheme (.../VND).

Article 18. Method for Determining the Price of Power Purchase and Sale Contracts of Power Plants at the Time of Payment

The price of power purchase and sale contracts of power plants at the time of payment for electricity month t, year j P_C,j,t (VND/kWh) is determined according to the following formula:

Where:

FC9. Travel distance is the distance traveled without using mechanical means (cars, motorcycles, motorboats) to reach locations for implementing technical forest management measures and patrolling to protect forests.:	The fixed price for year j is determined according to the provisions of Article 16 of this Circular (VND/kWh);
FOMC9. Travel distance is the distance traveled without using mechanical means (cars, motorcycles, motorboats) to reach locations for implementing technical forest management measures and patrolling to protect forests.,organize credit institutions, foreign bank branches are responsible for organizing the implementation of this Circular.:	The operating and maintenance cost price for month t, year j is determined according to the provisions of Clause 1 of this Article (VND/kWh);
	The variable price for month t, year j is determined according to Clause 2 of this Article (VND/kWh).

1. The operating and maintenance cost price for month t, year j is determined according to the following formula:

Where:

	The component of the operating and maintenance cost price based on major repair costs and other costs for year j is determined according to the provisions of point a of this clause (VND/kWh);
	The component of the operating and maintenance cost price based on labor costs for month t, year j is determined according to the provisions of point b of this clause (VND/kWh).

a) The component of the operating and maintenance cost price based on major repair costs and other costs are determined according to the following formula:

Where:

	The operating and maintenance cost price based on major repair costs and other costs for the base year is determined according to the method prescribed in Clause 1, Article 6 of this Circular;
× (n − n	The rate of change in the component of the operating and maintenance cost price based on major repair costs and other costs is specified in Appendix I issued together with this Circular;
	The number of years counted from the Base Year (for the Base Year ).

b) The component of the operating and maintenance cost price based on labor costs for month t, year j When

In cases where the calculated wage level in the electricity pricing plan equals the minimum regional wage, the component of the operating and maintenance cost price based on labor costs is determined according to the following formula:

Where:

	The operating and maintenance cost price based on labor costs for the base year is determined according to the method prescribed in Clause 2 of Article 6 of this Circular;
Lmin,j,t:	The minimum regional wage at the time of payment for month t, year j (VND/month);
Lmin,b:	The minimum regional wage for the base year (VND/month).

In cases where the total labor costs TC_nc are calculated based on the ratio of construction investment capital and equipment, the component of the operating and maintenance cost price based on labor costs is determined according to the following formula (VND/kWh):

Where:

	The operating and maintenance cost price based on labor costs for the base year is determined according to the method prescribed in Clause 2 of Article 6 of this Circular;
	The rate of change in the component of the operating and maintenance cost price based on labor costs, determined according to the Consumer Price Index (CPI) ratio of year (j-1) compared to year (j-2) published by the Central Statistical Agency in December of year (j-1) but not exceeding 2.5%/year;
	The number of years counted from the Base Year (for the Base Year  = 1, i1 = 0).

2. The variable price of thermal power plants for month t, year j  (VND/kWh) is determined according to the following formula:

Where:

	The component of the variable price adjusted for fluctuations in the main fuel costs of power plants for month t, year j, is determined according to point a of this clause (VND/kWh);
	The component of the variable price adjusted for fluctuations in the auxiliary fuel costs of power plants for month t, year j, is determined according to point b of this clause (VND/kWh);
	The component of the variable price adjusted for other fluctuations of power plants for year j, is determined according to point c of this clause (VND/kWh);
	The transportation cost of the main fuel of power plants for month t, year j, is determined according to point d of this clause (VND/kWh).

a) The component of the variable price adjusted for fluctuations in the main fuel costs of power plants for month t, year j  are determined according to the following formula:

In :

	The average specific fuel consumption is determined at Clause 1, Article 7 of this Circular;
kHR:	The adjustment factor for the average specific fuel consumption based on actual operational conditions such as cooling water temperature, ambient temperature, humidity, and load level agreed upon by the seller and buyer of electricity or based on actual conditions for each operational cycle;
kHS:	The efficiency decline rate for year j (%);
	The order of the year of commercial operation of the plant;
	The main fuel price for power generation at the time of payment for month t, year j, is calculated as the weighted average based on volume of invoices under fuel purchase contracts within the period agreed upon by the seller and buyer of electricity.

b) The component of the variable price adjusted for fluctuations in the auxiliary fuel costs of power plants for month t, year j  is determined according to the following formula:

Where:

	The component of the variable price adjusted for fluctuations in the auxiliary fuel costs of power plants for the base year is determined at Clause 2, Article 7 of this Circular;
kHS:	The efficiency decline rate for year j (%);
	The order of the year of commercial operation of the plant;
	The auxiliary fuel price for power generation at the time of payment for month t, year j is calculated as the weighted average based on volume of invoices under fuel purchase contracts within the period agreed upon by the seller and buyer of electricity.
	The auxiliary fuel price for power generation in the base year is determined at Clause 2, Article 7 of this Circular.

c) The component of the variable price adjusted for other fluctuations of power plants for year j are determined according to the following formula:

Where:

	The component of the variable price adjusted for other fluctuations of power plants for the base year is determined at clause 3 Article 7 of this Circular;
× (n − n	The rate of change in the component of the variable price adjusted for other fluctuations is specified according to the ratio set out in Appendix I issued together with this Circular;
kHS:	The efficiency decline rate for year j (%);
	The order of the year of commercial operation of the plant (counted from the date of commercial operation of the power plant, the first year of commercial operation of the power plant is counted from the date of commercial operation of the first unit, );
Granite, gabbro, decorative stone...:	The number of years counted from the base year (for the base year Granite, gabbro, decorative stone...=1).

d) The transportation cost of the main fuel of power plants for month t, year j  (VND/kWh) is determined according to the following formula:

Where:

	The average specific fuel consumption is determined at Clause 1, Article 7 of this Circular;
kHR:	The adjustment factor for the average specific fuel consumption based on actual operational conditions such as cooling water temperature, ambient temperature, humidity, and load level agreed upon by the seller and buyer of electricity or based on actual conditions for each operational cycle;
kHS:	The efficiency decline rate for year j (%);
	The order of the year of commercial operation of the plant;
	The transportation cost of the main fuel at the time of payment for month t, year j is calculated as the weighted average based on volume of invoices under fuel transportation contracts and LNG storage, regasification, and distribution contracts (if any) (excluding VAT), specifically as follows: For coal-fired thermal power plants: by the weighted average of coal transportation contracts or agreements; For natural gas-fired thermal power plants: equal to the weighted average of the pipeline gas transportation service fee for power generation approved by the competent authority according to the Law on Prices and other relevant laws; For liquefied natural gas (LNG)-fired thermal power plants: equal to the weighted average of the LNG storage, regasification, transportation, and distribution service fees for power generation approved by the competent authority according to the Law on Prices and other relevant laws; For waste-to-energy, biomass, and new energy power plants: agreed upon by the electricity seller and buyer based on the actual conditions of the power plant; For thermal power plants using a combination of multiple fuels: agreed upon by the electricity seller and buyer based on the actual conditions of the power plant; For fuel purchase contracts that already include the main fuel transportation cost, the component of the main fuel transportation cost is equal to 0 (zero).

3. The total start-up cost in month t for the thermal power plant (in VND) is determined according to the following formula:

Where:

u: U: f: s: S:	Order of the power generation unit of the power plant; Number of power generation units of the power plant; Type of fuel (for main fuel f = 1; auxiliary fuel f = 2); Start-up status of the power generation unit; Number of start-up statuses of the power generation unit;
pu,f,s:	Number of times the power generation unit u starts up using fuel f at start-up status s in the month;
Briefly describe technical improvements, production processes, raw materials, designs; new technology applications such as automation, digitalization, clean technology; management, marketing, distribution solutions; products winning awards or certifications related to innovation…):…u,f,s:	Quantity of fuel consumed (in kg) or amount of heat consumed of gas (in BTU) for one start-up of the power generation unit u using fuel f at start-up status s;
Du,f,CLASS MONOCOTYLEDON:	Fuel price for one start-up of the power generation unit u using fuel f at start-up status s, calculated in VND/kg and VND/BTU;
	Other total costs for one start-up, calculated in VND.

4. Provisions on payment of start-up costs:

a) For thermal power plants: implemented according to the competitive electricity market regulations issued by the Ministry of Industry and Trade;

b) For waste-to-energy, biomass, and new energy power plants: agreed upon between the seller and buyer of electricity.

Chapter III. ELECTRICITY PURCHASE AND SALE CONTRACT

Article 19. Main contents of the electricity purchase and sale contract

1. The main contents of the electricity purchase and sale contract stipulated in Appendix III promulgated together with this Circular serve as the basis for the seller and buyer of electricity to negotiate and sign the contract. The seller and buyer of electricity have the right to agree and supplement specific terms in the electricity purchase and sale contract in accordance with Vietnamese laws.

2. The language used is Vietnamese. In cases where the seller has foreign investors, the seller and buyer of electricity may agree to use an additional contract in English.

Article 20. Documents for negotiating the electricity purchase and sale contract between the seller and buyer of electricity

1. Documents proposed for negotiating the electricity purchase and sale contract for new power plants include:

a) Draft of the electricity purchase and sale contract according to the main contents stipulated in Appendix III promulgated together with this Circular;

b) Approval of investment orientation or decision on investment orientation or certificate of investment registration of the project;

c) Decision on construction investment project attached with explanation and project evaluation report by independent consultants, and accompanying documents;

d) Decision approving the initial total investment amount of the project or adjusted total investment amount of the project effective at the time of negotiating the service fee for electricity generation and the main contents in the basic design of the investment project related to negotiating the electricity purchase and sale contract, evaluation report on the basic design and notification of the results of evaluating the basic design and total investment amount by the competent state management agency on construction in accordance with regulations (if applicable);

đ) Agreement on connecting the power plant to the national grid accompanied by the connection plan of the power plant;

e) Loan contract or documents and materials between the investor and lenders, plans or actual disbursement of loan funds;

g) Fuel supply contract for the power plant, clearly specifying the fuel price for electricity generation, fuel transportation price, LNG storage price, gas reconditioning and distribution price, and accompanying surcharges, fuel delivery point and fuel supply period;

h) Documents calculating power loss and energy loss of transformers, transmission lines from the step-up transformer to the connection point with the national grid, and documents calculating self-consumption electricity in the power plant;

i) Documents calculating the specific fuel consumption rate for thermal power plants;

k) Pricing scheme for electricity sales determined according to the methods prescribed in Section 1 and Section 3 Chapter II of this Circular;

l) Other relevant documents (if any).

2. Documents for negotiating the electricity purchase and sale contract for operational power plants include:

a) Draft of the electricity purchase and sale contract according to the main contents stipulated in Appendix III promulgated together with this Circular;

b) Existing electricity purchase and sale contracts;

c) Technical files of the power plant, technical data of the SCADA/EMS system, relay protection and automation systems, and P-Q operating characteristics of the power generation units up to the current date;

d) Fuel supply contract for the power plant;

đ) Pricing scheme for electricity sales of the power plant determined according to the provisions of Chapter II of this Circular;

e) Financial reports or related documents of the power plant for the most recent years up to the date of negotiating the electricity purchase and sale contract;

g) Other relevant documents (if any).

Chapter IV. IMPLEMENTATION PROVISIONS [7]

Article 21. Responsibilities of the State Management Agency for Electricity under the Ministry of Industry and Trade

Guide and inspect the implementation of the provisions of this Circular. In necessary cases, propose amendments and supplements to the Circular to meet practical needs and ensure consistency with relevant laws.

Article 22. Responsibilities of Vietnam Electricity Corporation

1. Take the lead and coordinate with electricity buyers and sellers to calculate and agree on the exchange rate differential settlement plan in implementing the electricity purchase and sale contracts as stipulated in this Circular.

2. Take the lead and coordinate with electricity buyers and sellers to review the calculation and consolidation of electricity purchase and sale contracts to align with the actual operations of power generation units, enhance operational efficiency, and reduce overall costs of the national power system when requested by electricity buyers or sellers.

3.[8] Develop or commission consultants to develop the ratio of major repair costs and other costs, and the labor cost ratio for types of power plants not specified in Appendix I of this Circular, and propose to the Ministry of Industry and Trade for supplementation of regulations as appropriate.

Article 23. Responsibilities of Electricity Buyers

1. Negotiate electricity purchase and sale contracts with electricity sellers according to this Circular; be responsible for ensuring the accuracy, reasonableness, and validity of provided data and documents.

2. Coordinate with electricity sellers to calculate and agree on the exchange rate differential in implementing electricity purchase and sale contracts as stipulated in this Circular, and provide information to Vietnam Electricity Corporation for consideration of payment plans.

Article 24. Responsibilities of Electricity Sellers

1. Negotiate electricity purchase and sale contracts with electricity buyers according to the stipulations; be responsible for ensuring the accuracy, reasonableness, and validity of provided data and documents.

2. Provide complete information, be responsible for ensuring the accuracy, reasonableness, and validity of provided data and documents to related units and agencies during contract negotiation and inspection processes.

3. Electricity sellers are responsible for organizing the selection of fuel suppliers and fuel transporters, and signing supply and transportation contracts in compliance with legal regulations, ensuring fairness, competition, and transparency.

4. Electricity sellers are responsible for controlling supply and transportation contracts to ensure the legal origin of fuel, competitive prices, and transparency as required by relevant laws.

5. Coordinate with electricity buyers to calculate the exchange rate differential in annual implementation of electricity purchase and sale contracts as stipulated in this Circular, and submit to Vietnam Electricity Corporation for consideration of payment plans.

Article 25. Responsibilities of Fuel Suppliers and Transporters

Implement framework agreements, fuel supply contracts, fuel transportation contracts, and related fuel contracts in accordance with legal regulations, ensuring fairness, competition, and transparency.

Article 26. Adjustment of Power Generation Service Prices

Electricity sellers and buyers shall renegotiate power generation service prices in existing electricity purchase and sale contracts according to Clause 4 of Article 52 of the Electricity Law.

Article 27. Transitional Provisions

1. For power plants that have signed electricity purchase and sale contracts under the methods prescribed in Circulars No. 57/2020/TT-BCT, No. 56/2014/TT-BCT, No. 51/2015/TT-BCT, and new power projects initiated before September 19, 2017, when final investment capital has been settled, both electricity sellers and buyers have the right to request recalculation of power generation service prices based on approved final investment capital according to the provisions at Article 15 of this Circular.

2. For power plants that have signed electricity purchase and sale contracts under the method prescribed in Circular No. 41/2010/TT-BCT, when there is an opinion from the competent authority regarding renegotiation of electricity prices based on final investment capital, both electricity sellers and buyers shall recalculate power generation service prices based on approved final investment capital according to the provisions at Article 15 of this Circular.

3. For power plants that have signed electricity purchase and sale contracts, electricity sellers and buyers have the right to negotiate and agree to amend electricity purchase and sale contracts according to this Circular.

4. For each phase of the competitive electricity market, electricity sellers and buyers are responsible for amending and supplementing contract terms to comply with regulations for each level of the competitive electricity market.

5. For exchange rate differentials without a settlement plan prior to the effective date of Circular No. 07/2024/TT-BCT, electricity sellers and buyers shall calculate and agree on a settlement plan for this period according to the provisions of Circular No. 07/2024/TT-BCT.

6. For power projects with special grid connection components invested before the effective date of this Circular, the special grid connection price determination method in Circular No. 07/2024/TT-BCT shall continue to apply.

Article 28. Effective Date

1. This Circular takes effect from February 1, 2025.

2. Repeal Circular No. 07/2024/TT-BCT dated April 12, 2024, issued by the Minister of Industry and Trade, prescribing the method for determining power generation prices and electricity purchase and sale contracts.

3. Repeal Article 4 of Circular No. 13/2017/TT-BCT dated August 3, 2017, issued by the Minister of Industry and Trade, amending and supplementing certain articles of Circular No. 57/2014/TT-BCT dated December 19, 2014, issued by the Minister of Industry and Trade, prescribing the method and procedures for establishing and issuing the power generation price framework.

4. During implementation, if any difficulties arise, organizations and individuals are responsible for reporting to the Ministry of Industry and Trade for examination, amendment, and supplementation as appropriate./.

 

MINISTRY OF INDUSTRY AND TRADE _____________ Number: 56/VBHN-BCT   Place of Receipt: - Office of the Government (for publication in the Official Gazette) - Minister (for signature); - Ministry of Industry and Trade website; - Ministry of Justice; - Legal Department (for publication on the National Database for Regulatory Documents Management) - File: VT, DL (    ).

CERTIFIED CONSOLIDATED DOCUMENT   Hanoi, November 26, 2025     DEPUTY MINISTER DEPUTY MINISTER Nguyen Hoang Long

 

ANNEX I.FACTORS USED IN CALCULATING ELECTRICITY PURCHASE AND SALE CONTRACT PRICES
(Annexed to Circular No. 12/2025/TT-BCT dated February 1, 2025, issued by the Minister of Industry and Trade)

 

Table 1 - Factors used in calculating electricity purchase and sale contract prices

No.	Item	Parameter
I	Economic Life
1	Coal-fired thermal power plant	30 years
2	Combined cycle gas turbine power plant	Twenty-five years
3	Hydropower plant
3.1	Over 20 MW	40 years
3.2	From 3 MW to 20 MW	35 years
3.3	Under 3 MW	Twenty-five years
4	Solar power plant	20 years
5	Wind power plant	20 years
6	Waste-to-energy power plant	20 years
7	Biomass power plant	20 years
II	Operating and maintenance cost ratio of coal-fired thermal power plant (%)
1	Rate of major repair costs and other costs (kscl)
1.1	Coal-fired thermal power plant	2,5%
1.2	Combined cycle gas turbine power plant	4,37%
1.3	Waste-to-energy power plant	1,4%
2	Rate of labor costs (knc)
2.1	Coal-fired thermal power plant	1,5%
2.2	Combined cycle gas turbine power plant	1,9%
2.3	Waste-to-energy power plant	0,7%
III	Rate of operation and maintenance costs for hydropower plants (%)
1	Rate of major repair costs and other costs (kscl)
1.1	Capacity scale from 150 MW or less	1,2%
1.2	Capacity scale from 151 MW to 300 MW	0,9%
1.3	Capacity scale from 301 MW or more	0,6%
2	Rate of labor costs (knc)
2.1	Capacity scale from 150 MW or less	0,8%
2.2	Capacity scale from 151 MW to 300 MW	0,5%
2.3	Capacity scale from 301 MW or more	0,3%
IV	Average number of hours of maximum capacity operation over many years - Tmax(hours)
1	Coal-fired thermal power plant	6.500
2	Combined cycle gas turbine power plant	6.000
V	Average rate of performance decline during the economic life of thermal power plants (%)
1	Coal-fired thermal power plant	1,3%
2	Combined cycle gas turbine power plant	3%
VI	Annual rate of regular maintenance and repair costs (%)
1	Coal-fired thermal power plant	0,8%
2	Combined cycle gas turbine power plant	0,8%
VII	Average rate of cost escalation (%/year)
1	Rate of cost escalation component price for operation and maintenance according to major repair costs and other costs	2.5%/year
2	Rate of cost escalation component price for variable changes according to other fluctuations	2.5%/year
VIII	Average load factor of thermal power plants	85%

Table 2[9] - Rate of operation and maintenance costs for solar power plants and wind power plants as prescribed in Article 10 of this Circular

I	Rate of operation and maintenance costs for solar power plants and wind power plants (%)
1	Floating solar power plant	1,5%
2	Ground-mounted solar power plant	1,8%
3	Onshore wind power plant	2,0%
4	Offshore wind power plant	1,8%

 

ANNEX II. FINANCIAL ANALYSIS FORMS OF THE PROJECT
(Annexed to Circular No. 12/2025/TT-BCT dated February 1, 2025, issued by the Minister of Industry and Trade)

Form 1 - Projected Business Results

Unit of measurement:………….

Serial number	Content	Year N	Year N+1	Year N+2	• • •	Total
I	Total income
1	Revenue from electricity sales
2	Other benefits obtained from the project (if any)
3	Subsidies (if any)
II	Value-added tax and other taxes (as applicable)
1	Depreciation cost of fixed assets
2	Operation and maintenance costs
3	Other expenses (if applicable)
4	Interest expenses
III	LnationalPre-tax profit (I)-(II)
IV	Corporate Income Tax
V	Post-tax profit (III)-(IV)

Note: Revenue from electricity sales does not include value-added tax, water resource tax, water resource exploitation rights fee, forest environmental protection fee, solid waste environmental protection fee/industrial wastewater environmental protection fee (applicable to thermal power plants), and other taxes and fees (if any). Form 01 is prepared from the year when income begins.

Form 2 - Financial Accumulation Flow and Financial Indicators 

Unit of measurement:………..

Serial number	Content	• • •	Year N-1	Year N	Year N+1	• • •	Total
I	Source
1	Revenue from electricity sales
2	Other benefits obtained from the project (if any)
3	Subsidies (if any)
4	Remaining value of Fixed Assets (calculated at the end of the project)
5	Recoverable working capital value (calculated at the end of the project)
II	Usage
1	Shareholder's equity, debt (allocated according to the project schedule)
2	Other expenses (if applicable)
3	Principal repayment
4	Interest expenses
5	Corporate Income Tax
III	Financial accumulation (I)-(II)
IV	Discounted financial accumulation
V	Cumulative discounted financial accumulation

Note: Revenue from electricity sales does not include operation and maintenance components, value-added tax, water resource tax, water resource exploitation rights fee, forest environmental protection fee, solid waste environmental protection fee/industrial wastewater environmental protection fee (applicable to thermal power plants), and other taxes and fees (if any). Form 02 is prepared from the year construction begins.

 

ANNEX III. MAIN CONTENTS OF THE ELECTRICITY PURCHASE AND SALE CONTRACT
(Annexed to Circular No. 12/2025/TT-BCT dated February 1, 2025, issued by the Minister of Industry and Trade)

SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
______________

ELECTRICITY PURCHASE AND SALE CONTRACT

POWER PLANT …

 

Between

 

COMPANY [company name]

(ELECTRICITY SELLER)

 

- and -

 

||| (company name)

(ELECTRICITY BUYER)

 

CONTRACT NUMBER: …/20.../HĐ-NMĐ-[power plant name]

 

(Location) ..., month .../20...

 

SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
______________

ELECTRICITY PURCHASE AND SALE CONTRACT

Pursuant to the Electricity Law dated November 30, 2024;

Pursuant to the Law on Trade dated June 14, 2005;

Pursuant to the Civil Code on November 24, 2015;

Based on Circular No. ... issued by the Minister of Industry and Trade on competitive wholesale electricity market operations;

Based on Circular No. ... issued by the Minister of Industry and Trade on methods for determining electricity generation service prices and electricity purchase and sale contracts;[10]

Based on the electricity buying and selling needs of the Electricity Seller and the Electricity Buyer,

Today, the ... day of the ... month of the ... year, at ...

We include:

The Electricity Seller: __________________________________________________

Address: ___

Telephone: ___ Fax: ___

Tax code: ___

Bank account: ___ Bank ___

_______________________________________________________________

Representative: ___

Position: ___ authorized by ___ pursuant to authorization document No. ___, dated ___ month ___ year ___

The Electricity Buyer:||| (company name)

Address: ___

Telephone: ___ Fax: ___

Tax code: ___

Bank account: ___ Bank ___

______________________________________________________________________

Representative: ___

Position: ___ authorized by ___ pursuant to authorization document No. ___, dated ___ month ___ year ___

Jointly agree on the Electricity Purchase and Sale Contract for the Power Plant ... (Power Plant Name) with the following contents:

Article 1. Definitions

In this Contract, the following terms shall be understood as follows:

1. The seller of electricity is the Company (…) owning the Power Plant.

2. The buyer of electricity is (...).

3. Point of Interconnection (...).

[The Parties agree to amend and supplement the relevant provisions in accordance with Vietnamese law.]

Article 2. Effectiveness and Term of the Contract

1. Effectiveness of the Contract

The Contract shall take effect from the date it is officially signed by the authorized representatives of the Selling Party and the Purchasing Party, except where the Parties have agreed otherwise.

2. Term of the Contract

Unless the Contract is extended or terminated before its term, the term of the Contract shall be calculated from the date the Contract takes effect until [... years] from the Commercial Operation Date of the Power Plant.

[The Parties agree to amend and supplement the relevant provisions in accordance with Vietnamese law.]

Article 3. Purchase and Sale of Electricity

1. Contract Price: As stipulated in Appendix V of the Contract.

2. Contract Volume: As stipulated in Appendix V of the Contract.

3. Payment for Electricity: Monthly, the Purchasing Party shall be obligated to pay the Selling Party the amounts as prescribed in Appendix V of the Contract.

The Selling Party and the Purchasing Party agree to implement any additional payments arising from dispute resolution as provided for in Article 8 of the Contract.

(For power plants with guaranteed fuel supply and production volume, the Selling Party and the Purchasing Party may negotiate and supplement the relevant contents accordingly).

[The Parties agree to amend and supplement the relevant provisions in accordance with Vietnamese law]

Article 4. Commitment to Fulfillment

[The Parties agree to amend and supplement the relevant provisions in accordance with Vietnamese Law]

Article 5. Obligations of the Selling Party Prior to the Commercial Operation Date

1. Requirements for Licenses and Approval Documents

…

2. Reporting on Project Milestones

…

3. Interconnection, Testing, and Operation

…

4. Commercial Operation Date

…

[The Parties agree to amend and supplement the relevant provisions in accordance with Vietnamese Law]

Article 6. Responsibilities for Interconnection and Metering System

[The Parties agree to amend and supplement the relevant provisions in accordance with Vietnamese Law]

Article 7. Scheduling and Operation of the Power Plant

[The Parties agree to amend and supplement the relevant provisions in accordance with Vietnamese Law]

Article 8. Billing and Payment

[The Parties agree to amend and supplement the relevant provisions in accordance with Vietnamese Law]

Article 9. Events Affecting the Performance of the Contract and Applicable Penalties

[The Parties agree to amend and supplement the relevant provisions in accordance with Vietnamese Law]

Article 10. Termination of the Contract

[The Parties agree to amend and supplement the relevant provisions in accordance with Vietnamese Law]

Article 11. Compensation for Damages

[The Parties agree to amend and supplement the relevant provisions in accordance with Vietnamese Law]

Article 12. Circumstances Exempting Liability for Breach

[The Parties agree to amend and supplement the relevant provisions in accordance with Vietnamese Law]

Article 13. Dispute Resolution

[The Parties agree to amend and supplement the relevant provisions in accordance with Vietnamese Law]

Article 14. Restructuring of the Electricity Industry and Transfer of Rights and Obligations

1. Restructuring of the Electricity Industry and Transfer of Rights and Obligations at the Purchasing Party

The Selling Party and the Purchasing Party agree to accept the possibility that the Purchasing Party may need to reorganize, restructure, or dissolve, or gradually phase out its electricity purchasing function to implement the plan for restructuring the electricity industry's operational model at various levels of the competitive electricity market according to the approved roadmap by the Prime Minister or subsequent replacement documents. When the competent state authority makes a decision regarding reorganization, restructuring, or dissolution, the Purchasing Party has the right to transfer all or part of its rights and obligations under the Contract to one or more successor entities designated by the competent state authority without requiring the consent of the Selling Party. These successor entities shall be responsible for performing the legal rights and obligations of the Purchasing Party as prescribed by law.

The Selling Party must provide written approval for any transfer or delegation of rights and obligations under this Contract by the Purchasing Party.

2. Transfer of Rights and Obligations of the Selling Party

The Selling Party may only transfer its rights and obligations under the Contract to one or more successor entities upon prior written agreement of the Purchasing Party. The Purchasing Party's written agreement shall not unreasonably refuse the implementation of such transfer or delegation by the Selling Party, except in cases where the Selling Party can delegate or assign certain or all of its rights and obligations under the Contract related to capital provision or other financial arrangements for the Power Plant without the Purchasing Party's agreement. This Contract shall continue to be effective to benefit and fulfill the obligations of the successor entities or delegated entities of the Selling Party.

3. Transition Period of the Competitive Electricity Market

During the term of the Contract, if the competitive wholesale electricity market is replaced by another type of market as decided by the competent state authority, the Parties shall have the obligation to negotiate to amend or replace this Contract in accordance with the new structure of the electricity market, provided that the service price for electricity generation under the Contract for both parties does not change.

[The Parties agree to amend and supplement the relevant provisions in accordance with Vietnamese Law]

Article 15. Retention of records and provision of information

[The Parties agree to amend and supplement the relevant provisions in accordance with Vietnamese Law]

Article 16. Other costs

Each party shall be responsible for paying taxes and fees or settling debts arising from the performance of the Contract. The Seller and Buyer agree that this Contract does not include transmission costs, distribution costs, or similar costs, and each party shall be responsible for paying such costs in accordance with the provisions of the law.

[The Parties agree to amend and supplement the relevant provisions in accordance with Vietnamese Law]

Article 17. Authorized representatives and exchange of information

[The Parties agree to amend and supplement the relevant provisions in accordance with Vietnamese Law]

Article 18. Confidentiality of information

[The Parties agree to amend and supplement the relevant provisions in accordance with Vietnamese Law]

Article 19. Governing law and language of the electricity purchase and sale contract

The interpretation and implementation of this Contract shall be carried out in accordance with the laws of Vietnam.

The language of the Contract is Vietnamese. The Seller and Buyer may agree to use an additional English-language Contract.

Article 20. Other agreements

[The Parties agree to amend and supplement the relevant provisions in accordance with Vietnamese Law]

The Contract is made in nine original copies, all having equal validity, with each party retaining four copies. The Buyer shall be responsible for sending one copy to the State Management Authority for Electricity under the Ministry of Industry and Trade.

 

 

Appendix I

MAIN DATA OF THE POWER PLANT

(Attached to Contract number ... dated ... month ... year ...)

Includes descriptions, diagrams, and technical specifications of the Power Plant

(The main data of the Power Plant will be verified again after signing the equipment procurement contract of the Power Plant.)

[The Parties agree to amend and supplement the relevant provisions in accordance with Vietnamese Law]

 

Seal Registration Certificate

MEASUREMENT SYSTEM AND DATA COLLECTION

(Attached to Contract number ... dated ... month ... year ...)

 

I. LOCATION AND FEATURES OF THE MEASUREMENT SYSTEM

1. Location of the measurement system installation:

2. The features of the measurement system must comply with the regulations on electricity metering issued by the Ministry of Industry and Trade.

II. TECHNICAL REQUIREMENTS FOR THE MEASUREMENT SYSTEM

Technical requirements for measuring devices, technical requirements for metering circuits, sealing measures using lead seals, and requirements for data collection and reading of meters must comply with the regulations on electricity metering issued by the Ministry of Industry and Trade.

III. MEASUREMENT POINTS

The Seller and Buyer agree to use the current measurement points of the Power Plant as follows:

Main measurement point:

Backup measurement point 1:

Backup measurement point 2:

Measurement point for operation and market data reconciliation:

IV. METHOD OF DETERMINING ELECTRICITY QUANTITY DELIVERED

1. Quantity of electricity delivered

a) The quantity of electricity sold by the Seller in the payment month is calculated according to the formula:

A_G =

A_G: The amount of electricity paid by the Buyer to the Seller in the payment month (kWh).

b) The quantity of electricity received by the Seller from the national power grid in the payment month is calculated according to the formula:

A_{N |||} =

Where:

A_{N |||}: The amount of electricity received from the grid at measurement points in the month (kWh).

2. During the competitive electricity market phase, the monthly electricity delivery method must comply with the regulations on the competitive electricity market issued by the Ministry of Industry and Trade.

[The Parties agree to amend and supplement the relevant provisions in accordance with Vietnamese Law]

 

ANNEX III

AGREEMENT ON OPERATIONAL CHARACTERISTICS

(Attached to Contract number ... dated ... month ... year ...)

[The parties negotiate to amend and supplement the contents in accordance with Vietnamese Law]

 

REGULATIONS ON THE CERTIFICATE DESIGN FOR OUTSTANDING RURAL INDUSTRIAL PRODUCTS

AGREEMENT ON SCADA/EMS SYSTEM, COMMUNICATION INFORMATION, RELAY PROTECTION, AND AUTOMATION

(Attached to Contract number ... dated ... month ... year ...)

[The parties negotiate to amend and supplement the contents in accordance with Vietnamese Law]

 

Appendix V

PRICE OF PURCHASE AND SALE OF ELECTRICITY, ELECTRICITY PAYMENT

(Attached to Contract number ... dated ... month ... year ...)

I. SERVICE GENERATION PRICE

1. Contract price for electricity purchase and sale

The contract price for electricity purchase and sale of the Power Plant at the time of electricity payment month t, year j  are determined according to the following formula:

Where:

FC9. Travel distance is the distance traveled without using mechanical means (cars, motorcycles, motorboats) to reach locations for implementing technical forest management measures and patrolling to protect forests.:	Fixed price for year j (VND/kWh);
FOMC9. Travel distance is the distance traveled without using mechanical means (cars, motorcycles, motorboats) to reach locations for implementing technical forest management measures and patrolling to protect forests.,organize credit institutions, foreign bank branches are responsible for organizing the implementation of this Circular.:	Operating and maintenance price for month t, year j (VND/kWh);
	Variable price for month t, year j (VND/kWh).

For hydroelectric plants, wind power plants, and solar power plants,  equals 0 (zero).

1.1. Fixed price:

Average fixed price (excluding VAT) is... (VND/kWh);

Annual fixed price FC_{9. Travel distance is the distance traveled without using mechanical means (cars, motorcycles, motorboats) to reach locations for implementing technical forest management measures and patrolling to protect forests.} (VND/kWh) from the date of commercial operation to the end of the economic life of the power plant (excluding VAT) applied according to the following table:

Year	1	2	3	4	…	…
Fixed price (VND/kWh)

1.2. Operating and maintenance price:

The operating and maintenance price for month t, year j is determined according to the following formula:

Where:

	Component of operating and maintenance price based on major repair costs and other costs for year j (VND/kWh);
	Component of operating and maintenance price based on labor costs for month t, year j (VND/kWh).

a) Component of operating and maintenance price based on major repair costs and other costs for year j  (VND/kWh) is determined according to the following formula:

Where:

	Component of operating and maintenance price based on major repair costs and other costs Base year is ... (VND/kWh);ồInflation rate of the component of operating and maintenance price based on major repair costs and other costs as stipulated in this Circular;
× (n − n	- In case the wage level calculated in the electricity pricing plan equals the minimum wage level of the region, then:
	The number of years counted from the Base Year (for the Base Year ).

b) The component of the operating and maintenance cost price based on labor costs for month t, year j  (VND/kWh) is determined according to the following formula:

Component of operating and maintenance price based on labor costs for base year is ... (VND/kWh);

Where:

	j,t
LMaximum Downhill Gradient,Minimum wage level of the region at the time of payment month t, year j (VND/month);:	,b
LMaximum Downhill GradientMinimum wage level of the region Base year is... (VND/month).:	- In case the total labor cost TC

is calculated based on the investment capital ratio and equipment, then the component of operating and maintenance price based on labor costs is determined according to the following formula (VND/kWh):_nc Component of operating and maintenance price based on labor costs for base year (VND/kWh);

Where:

	Inflation rate of the component of operating and maintenance price based on labor costs, determined according to the Consumer Price Index (CPI) ratio of year (j-1) compared to year (j-2) published by the Central Statistical Office in December of year (j-1) but not exceeding 2.5%/year;
	=1, i 1.3. Variable price:1Variable price for month t, year j1Component of variable price adjusted according to changes in the main fuel cost of the power plant for month t, year j (VND/kWh);
	The number of years counted from the base year (for the base year Component of variable price adjusted according to changes in the auxiliary fuel cost of the power plant for month t, year j (VND/kWh);1=0)

Component of variable price adjusted according to other changes of the power plant for year j (VND/kWh);

Transportation cost of the main fuel of the power plant for month t, year j (VND/kWh).  (VND/kWh) is determined according to the following formula:

Where:

	a) Component of variable price adjusted according to changes in the main fuel cost:
	Component of variable price adjusted according to changes in the main fuel cost of the power plant for month t, year j
	Average heat consumption rate (HHV) is kcal/kWh or kJ/kWh or BTU/kWh or kg/kWh;
	Main fuel transportation price of the power plant in month t, year j (VND/kWh).

a) Variable price component adjusted according to changes in the main fuel cost:

Variable price component adjusted according to changes in the main fuel cost of the power plant in month t, year j  (VND/kWh) is determined according to the following formula:

Where:

	Average specific heat consumption (HHV) is kcal/kWh or kJ/kWh or BTU/kWh or kg/kWh;
	is the main fuel price for the payment period calculated based on the weighted average volume of invoices from fuel purchase contracts over the last [...] months (excluding value-added tax), measured in VND/kcal or VND/kJ or VND/BTU or VND/kg; In cases where the fuel purchase contract does not separate the transportation cost, the main fuel price for the payment period includes the main fuel transportation cost.
kHR:	The adjustment factor for the average specific heat consumption rate under actual operating conditions according to water cooling temperature, ambient temperature, humidity, and load level agreed upon by the electricity seller and buyer or based on actual conditions for each operational cycle;
kHS:	The efficiency decline rate for year j (%);
	The commercial operation year sequence, rounded to full years starting from the date of full commercial operation of the power plant.

b) Variable price component adjusted for changes in secondary fuel costs:

The variable price component adjusted for changes in secondary fuel costs for the power plant in month t, year j  (VND/kWh) is determined according to the following formula:

Where:

	The base year variable price component adjusted for changes in secondary fuel costs for the power plant is ... (VND/kWh);
kHS:	The efficiency decline rate for year j (%);
	The commercial operation year sequence of the power plant (counting from the date of commercial operation of the power plant, the first commercial operation year of the power plant is counted from the date of commercial operation of the first unit until the end of the first commercial operation year of the power plant,
	The secondary fuel price for power generation at the power plant at the time of payment in month t, year j is calculated based on the weighted average volume of invoices from fuel purchase contracts during the period agreed upon by the electricity seller and buyer, which is ... (VND/kg or VND/kcal or VND/kJ or VND/BTU);
	The secondary fuel price for power generation at the base year is ... (VND/kg or VND/kcal or VND/kJ or VND/BTU).

c) Variable price component adjusted for other changes:

The variable price component adjusted for other changes for the power plant in year j (VND/kWh) is determined according to the following formula:

Where:

	The base year variable price component adjusted for other changes for the power plant is ... (VND/kWh);
kHS :	The efficiency decline rate for year j (%);
	The commercial operation year sequence of the power plant (counting from the date of commercial operation of the power plant, the first commercial operation year of the power plant is counted from the date of commercial operation of the first unit until the end of the first commercial operation year of the power plant, );
Granite, gabbro, decorative stone...:	The number of years counted from the Base Year (for the Base Year Granite, gabbro, decorative stone... =1);
× (n − n	The sliding rate of the variable price component adjusted for other changes as stipulated in this Circular.

d) Main fuel transportation cost:

The main fuel transportation cost for the power plant in month t, year j  (VND/kWh) is determined according to the following formula:

Where:

	The average specific heat consumption rate (HHV) is ... kcal/kWh or kJ/kWh or BTU/kWh or kg/kWh.
kHR:	The adjustment factor for the average specific heat consumption rate under actual operating conditions according to water cooling temperature, ambient temperature, humidity, and load level agreed upon by the electricity seller and buyer or based on actual conditions for each operational cycle;
kHProvincial People's Committees set specific prices:	The efficiency decline rate for year j (%);
	The order of the year of commercial operation of the plant;
	The main fuel transportation cost at the time of payment in month t, year j, is calculated based on the weighted average volume of invoices from fuel transportation contracts and LNG storage, regasification, and distribution contracts (if any) (excluding value-added tax), the transportation cost is measured in VND/kcal or VND/kJ or VND/BTU or VND/kg;

If the fuel purchase contract cannot separate the transportation cost component, the LNG storage, regasification, and distribution cost component, then the main fuel price will include the main fuel transportation cost. In that case, the main fuel transportation cost equals (zero).

In the payment month, if the power plant does not import main fuel, the main fuel transportation cost is taken as the main fuel transportation cost of the most recent month when main fuel was imported;

The electricity seller is responsible for organizing the selection of fuel suppliers, fuel transporters, and signing fuel purchase and transportation contracts in compliance with Vietnamese law, ensuring fairness, competition, and transparency.

2. Special Price:

The ash and slag processing fee P^TX (excluding value-added tax) is ... VND/kWh.

II. ELECTRICITY GENERATION VOLUME UNDER CONTRACT

1. The average annual electricity generation volume [at the point of delivery of the power plant] under the Contract Term of the Power Plant is [...] (MWh).

2. The annual, monthly, and trading cycle electricity volume under contract signed and confirmed by the electricity seller and buyer in accordance with Competitive Electricity Market Regulations.

III. PAYMENT FOR ELECTRICITY UNDER CONTRACT

III. 1. Pre-commercial operation phase

For testing and acceptance costs before the commercial operation phase of the power plant: The electricity seller and buyer agree according to the guidelines at Article 4 of this Circular,.

III.2. Post-commercial operation phase

1. When the power plant has not participated in the competitive electricity market or indirectly participates in the competitive electricity market or has participated but has a phase of withdrawal from the market according to the decision of the competent authority or market intervention:

The electricity payment (R_tt) of the power plant is calculated specifically as follows:

R_tt = R_{organize credit institutions, foreign bank branches are responsible for organizing the implementation of this Circular.} x (1 + VAT)

Where:

Rorganize credit institutions, foreign bank branches are responsible for organizing the implementation of this Circular.      :	The electricity payment for month t, year j, excluding VAT (VND); Rorganize credit institutions, foreign bank branches are responsible for organizing the implementation of this Circular.= (PC,Minimum wage level of the region at the time of payment month t, year j (VND/month); x QGranite, gabbro, decorative stone...,Minimum wage level of the region at the time of payment month t, year j (VND/month); + Rk + Rđt + RThe issuance of work permits is governed by the following legal documents as prescribed by current laws: i) Decree No. 34/2008/NĐ-CP dated March 25, 2008, on the recruitment and management of foreign workers in Vietnam; ii) Decree No. 46/2011/NĐ-CP dated June 17, 2011, amending certain provisions of Decree No. 34/2008/NĐ-CP; and iii) Circular No. 31/2011/TT-BLDTBXH dated November 3, 2011, issued by the Ministry of Labor, Invalids, and Social Affairs guiding the implementation of Decrees No. 34 and No. 46.)
"5. The pre-tax weighted average cost of capital i (%) is determined according to the formula below:C,Minimum wage level of the region at the time of payment month t, year j (VND/month); :	The electricity purchase and sale contract price specified in Section I of this Appendix (VND/kWh);
Article 24Granite, gabbro, decorative stone...,Minimum wage level of the region at the time of payment month t, year j (VND/month); :	The electricity volume at the point of delivery of the power plant (kWh);
Rk :	Other costs (VND), including:
Payment costs for test units consistent with the approved test schedule by the System Operator and Electricity Market, determined by: (i) The measured electricity generation volume of the test unit during the test period and (ii) The variable price component defined in Section I of this Appendix; Adjusted payment amounts (if any) (VND); Other costs agreed upon by the electricity seller and buyer.
Rđt:    The total special cost payment amount according to the Contract is calculated based on the ash and slag processing fee (PTX) as stipulated in Section I of this Appendix (VND).
RThe issuance of work permits is governed by the following legal documents as prescribed by current laws: i) Decree No. 34/2008/NĐ-CP dated March 25, 2008, on the recruitment and management of foreign workers in Vietnam; ii) Decree No. 46/2011/NĐ-CP dated June 17, 2011, amending certain provisions of Decree No. 34/2008/NĐ-CP; and iii) Circular No. 31/2011/TT-BLDTBXH dated November 3, 2011, issued by the Ministry of Labor, Invalids, and Social Affairs guiding the implementation of Decrees No. 34 and No. 46.:   Total taxes, fees, and amounts payable in the month according to relevant laws agreed upon by the electricity seller and buyer (with valid supporting documents) (VND);
VAT: Value-added tax rate as prescribed by the State (%).

In cases where the power plant signs multiple electricity purchase contracts with different buyers, the electricity payment amount R_{organize credit institutions, foreign bank branches are responsible for organizing the implementation of this Circular.} (excluding VAT) is agreed upon and allocated by the electricity seller among the buyers based on the proportion of electricity delivered in the month (payment cycle) announced by the System Operator and Electricity Market.

Annually, the Electricity Seller and the Electricity Buyer shall settle the costs for ash and slag treatment based on the actual situation of the previous year.

2. When the Power Plant officially joins the Competitive Electricity Market,

2.1. The total amount of payment difference according to the Contract in month t is determined by the following formula:

Where:

:	The total amount of electricity payment difference according to the Contract in month t (VND) excluding value-added tax;
D: d: I: × (n − n "5. The pre-tax weighted average cost of capital i (%) is determined according to the formula below:C,9. Travel distance is the distance traveled without using mechanical means (cars, motorcycles, motorboats) to reach locations for implementing technical forest management measures and patrolling to protect forests.,organize credit institutions, foreign bank branches are responsible for organizing the implementation of this Circular.:	Total number of days in month t; Trading day d in month t; Total number of trading cycles on trading day d; Trading cycle i on trading day d; The electricity purchase and sale contract price specified in Section I of the Appendix (VND/kWh);
FMPFor coal-fired thermal power plants where the enterprise holds 100% of the registered capital and uses 100% of its own capital to invest in the project approved by the competent authority, E is determined as 100%;,i:	The full market price applied to the Power Generation Unit for trading cycle i on day d in month t (VND/kWh);
	The contracted volume in trading cycle i on day d in month t (kWh).

2.2. The total of other payments stipulated in the Contract include:

a) Interest payment for late payment as provided for in Article 8 of the Contract;

b) Adjusting payments (if any);

c) Other costs agreed upon by the Electricity Seller and the Electricity Buyer.

2.3. Other payments of the Power Plant [entering into electricity purchase and sale contracts with the Electricity Buyer] are determined as follows:

a) The portion of electricity generated due to the difference between the measured electricity volume of the month and the total measured electricity volume of the trading cycles in the month according to the Competitive Electricity Market Regulations shall be paid at the electricity purchase and sale contract price P_C,j,t as specified in Section I of the Appendix;

b) In case the thermal power plant unit is forced to stop or reduce its capacity by shutting down one boiler according to the Competitive Electricity Market Regulations:

The payment in this case is determined by the total start-up costs corresponding to the start-up states.

Start-up costs corresponding to the start-up states are agreed upon by the Electricity Seller and the Electricity Buyer from fuel quotas, auxiliary materials, etc., as follows [...].

c) In case the Power Plant has an experimental unit that complies with the approved test schedule by the System Operator and the Electricity Market, the payment for the electricity generated by the Power Plant according to the Competitive Electricity Market Regulations is determined as follows:

- Experimental unit: Calculated based on the variable price specified in Section I of Appendix V of the Contract;

- Non-experimental unit: Calculated based on the electricity purchase and sale contract price specified in Section I of Appendix V of the Contract.

d) In case the Power Plant has a unit participating in AGC tests or other tests as required by the System Operator and the Electricity Market that have been approved: The payment for the electricity generated by the Power Plant according to the Competitive Electricity Market Regulations is determined based on the electricity purchase and sale contract price specified in Section I of Appendix V of the Contract;

đ) Other payments according to the Competitive Electricity Market Regulations.

Other payments according to the Competitive Electricity Market Regulations in Section 2.3 are calculated and allocated by the Electricity Seller to the Electricity Buyers based on the proportion of electricity delivered and received in the month (billing cycle) announced by the System Operator and the Electricity Market.

2.4. The total special cost payment amount according to the Contract is calculated based on the ash and slag processing price (P^TX) as stipulated in Section I of this Appendix (VND).

The total special cost payment amount in Section 2.4 is calculated and allocated by the Electricity Seller to the Electricity Buyers based on the proportion of electricity delivered and received in the month (billing cycle) announced by the System Operator and the Electricity Market.

2.5. The total monthly electricity payment amount is determined as follows:

Where:

RNo.,t:	The total market payment amounts according to the monthly settlement statement provided by the System Operator and the National Electricity Market (VND);
RTECHNOLOGY AND ENVIRONMENT,organize credit institutions, foreign bank branches are responsible for organizing the implementation of this Circular.:	The total electricity payment difference according to the Contract in month t (VND) as determined in Clause 2.1 of this section (VND);
RC,k,H- Office of the President of the State:	The total of other payments according to the Contract as determined in Clause 2.2 of this section (VND);
RC,k,TT:	The total of other electricity payments according to the Competitive Electricity Market Regulations as determined in Clause 2.3 of this section (VND);
Rđt:	The total special cost payment amount in the month according to the Contract as determined in Clause 2.4 of this section (VND);
RThe issuance of work permits is governed by the following legal documents as prescribed by current laws: i) Decree No. 34/2008/NĐ-CP dated March 25, 2008, on the recruitment and management of foreign workers in Vietnam; ii) Decree No. 46/2011/NĐ-CP dated June 17, 2011, amending certain provisions of Decree No. 34/2008/NĐ-CP; and iii) Circular No. 31/2011/TT-BLDTBXH dated November 3, 2011, issued by the Ministry of Labor, Invalids, and Social Affairs guiding the implementation of Decrees No. 34 and No. 46.:	The total taxes, fees, and amounts payable in the month according to relevant laws calculated and allocated by the Electricity Seller to the Electricity Buyers based on the proportion of electricity delivered and received in the month (with valid supporting documents) (VND);
VAT:	The VAT rate is determined according to the State's regulations (%).

Annually, the Electricity Seller and the Electricity Buyer shall settle the costs for ash and slag treatment based on the actual situation of the previous year.

2.6. Exchange Rate Differential (FED): Annually, based on the total foreign currency loan capital, the plan for foreign currency loan repayment, actual principal repayment figures, the exchange rate agreed upon by the Electricity Seller and the Electricity Buyer in the electricity generation service pricing scheme, and the actual exchange rate implemented in the preceding year, the Electricity Seller and the Electricity Buyer shall calculate the exchange rate differential.

The exchange rate differential FED (VND) is calculated using the following formula:

Where:

- FTTH terminal devices	Number of foreign currencies in the electricity generation service pricing scheme agreed upon by the Electricity Seller and the Electricity Buyer (types);
d	Number of times foreign currency principal is repaid in the calculation year (times);
Di,j:	Actual foreign currency principal repaid in type i in the calculation year;
	Exchange rate at the time of payment j of type i foreign currency in the calculation year (.../VND);
	The base exchange rate for foreign currency type i agreed upon by the Electricity Seller and the Electricity Buyer in the electricity generation service pricing scheme (.../VND);
VAT:	The VAT rate is determined according to the State's regulations (%).

[The parties negotiate to amend and supplement the contents in accordance with Vietnamese Law]

 

Appendix VI. KEY FACTORS IN THE CALCULATION OF ELECTRICITY GENERATION SERVICE PRICES

(Attached to Contract number ... dated ... month ... year ...)

[The parties negotiate to amend and supplement the contents in accordance with Vietnamese Law]

 

Appendix VII. PROJECT TIMELINE

(Attached to Contract number ... dated ... month ... year ...)

I. PROJECT TIMELINE

1. Official groundbreaking date for the Power Plant construction: 2. Date to commence联动测试的答案部分请保留中文：这种联动测试是为了确保电力设施在实际运行中的安全性和可靠性。开始联动试验的日期： 3. First energization date: 4. Testing date: 5. Commercial operation date of unit i: 6. Commercial operation date of the Power Plant:

[...] [...] [...] [...] [...] [...]

II. DOCUMENTS THAT THE SELLER MUST PROVIDE TO THE BUYER

The Electricity Seller is obligated to provide the Electricity Buyer with certified copies of documents to confirm the Commercial Operation Date as follows: [...].

[The parties negotiate to amend and supplement the contents in accordance with Vietnamese Law]