11:30 | 13/05/2023

Supplementing the power to issue electricity licenses from June 9, 2023? Amending the regulations on the validity of electricity licenses in Vietnam?

Supplementing the power to issue electricity licenses from June 9, 2023? Question of An in Hue.

Supplementing the power to issue electricity licenses to the Electricity Regulatory Authority of Vietnam from June 9, 2023?

Pursuant to the provisions of Article 12 of Circular No. 21/2020/TT-BCT (supplemented by Clause 7 Article 1 of Circular No. 10/2023/TT-BCT) stipulating as follows:

Power to issue electricity licenses in Vietnam
1. The power to issue electricity licenses of the Ministry of Industry and Trade and the Electricity Regulatory Authority of Vietnam is prescribed in Clause 19 Article 3 of the Government’s Decree No. 17/2020/ND-CP dated February 05, 2020.
2. Provincial People’s Committees shall directly issue or authorize Provincial Departments of Industry and Trade to issue electricity licenses in the following fields:
a) Electricity generation by a power plant that has a capacity of less than 03 MW and is located in the province;
b) Electricity distribution with a voltage up to 35 kV in the province;
c) Electricity retailing with a voltage up to 0,4 kV in the province;
d) Electrical consulting services, including:
- Consultancy on design of transmission lines and electrical substations with a voltage up to 35 kV provided by an enterprise that has been registered with the provincial authority;
- Consultancy on supervision of construction of transmission lines and electrical substations with a voltage up to 35 kV provided by an enterprise that has been registered with the provincial authority.
3. In case an electricity license covers both electricity retail and electricity distribution one of which is under the jurisdiction of the Electricity Regulatory Authority, the licensing authority shall be the Electricity Regulatory Authority.

Thus, from June 9, 2023, the the power to issue electricity licenses to the Electricity Regulatory Authority of Vietnam is stipulated as follows:

In case an electricity license covers both electricity retail and electricity distribution one of which is under the jurisdiction of the Electricity Regulatory Authority, the licensing authority shall be the Electricity Regulatory Authority.

Supplementing the power to issue electricity licenses from June 9, 2023? Amending the regulations on the validity of electricity licenses in Vietnam?

Supplementing the power to issue electricity licenses from June 9, 2023? Amending the regulations on the validity of electricity licenses in Vietnam?

When will the validity period of the new electricity license correspond to that of the former license?

Pursuant to the provisions of Article 4 of Circular No. 21/2020/TT-BCT (amended by Clause 1, Article 1 of Circular No. 10/2023/TT-BCT) as follows:

Licensing rules and validity of electricity licenses in Vietnam
1. Before the operation of the competitive electricity retail market, an electricity license shall cover both electricity retailing and electricity distribution, except the case in Clause 2 of this Article.
2. If an electricity generator applies for a license to retail electricity by using its own electrical grid without purchasing electricity supplied from the national electrical grid, an electricity license shall be issued to cover both electricity retailing and electricity generation.
3. An electricity generation license shall be valid for running a power plant only.
4. Maximum validity periods of electricity licenses are provided for as follows:
5. In case of modification of the license due to renaming, relocation of headquarters or changes in operation scope, the validity period of the new electricity license shall correspond to that of the former license.
6. An application may apply for an electricity license whose validity period is shorter than the corresponding one specified in Clause 4 of this Article, except the case in Clause 7 of this Article.
7. Based on actual conditions of each electricity work item, the licensing authority may consider granting an electricity license with a validity period shorter than the corresponding one prescribed in Clause 4 of this Article.

Thus, from June 9, 2023, In case of modification of the license due to renaming, relocation of headquarters or changes in operation scope, the validity period of the new electricity license shall correspond to that of the former license.

What are the responsibilities of licensing authorities?

Pursuant to the provisions of Article 13 of Circular No. 21/2020/TT-BCT stipulating as follows:

Responsibility of licensing authorities
1. Receive, verify, check and manage applications for electricity licenses. Instruct applicants to follow procedures for application for electricity licenses as prescribed herein.
2. Settle complaints about electricity licenses within their competence.
3. Modify the issued electricity licenses if they have mistakes.
4. Inspect the maintenance of fulfillment of licensing requirements by license holders.
5. Revoke electricity licenses which they have issued.
6. Send decision on revocation of electricity license to the electricity unit whose electricity license is revoked and relevant authorities; disclose information about such license revocation on the website of the licensing authority within 02 working days from the issue date of the revocation decision.

Thus, the licensing authorities have the responsibilities as prescribed above.

Circular No. 10/2023/TT-BCT takes effect from June 9, 2023.

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