Vietnam: What are the procedures for formulation, assessment, and approval of electricity transmission prices from November 22, 2022?
What are the procedures for formulation, assessment, and approval of electricity transmission prices in Vietnam before November 22, 2022?
According to Article 7 of Circular 02/2017/TT-BCT, the procedures for formulation, assessment, and approval of electricity transmission prices in Vietnam are as follows:
procedures for formulation, assessment, and approval of electricity transmission prices in Vietnam
1. National Power Transmission Corporation shall be responsible for formulating the electricity transmission price for Year N and submit it to Vietnam Electricity for approval, and report to the Electricity Regulatory Authority.
2. Before November 15 annually (Year N-1), Vietnam Electricity shall be responsible for submitting the electricity transmission price in Year N to the Electricity Regulatory Authority for assessment and approval.
3. The Electricity Regulatory Authority shall be responsible for assessing electricity transmission price documents and allowed to employ consultants to carry out the assessment in case of need. If the documents are found ineligible as prescribed in Article 8 herein, Vietnam Electricity shall be responsible for making supplements within five working days since receipt of the request from the Electricity Regulatory Authority.
4. Before December 05 annually (Year N-1), the Electricity Regulatory Authority shall be responsible for submitting the report on assessment of electricity transmission price in Year N to the Minister of Industry and Trade.
5. Before December 15 annually (Year N-1), the Minister of Industry and Trade shall grant approval for the electricity transmission price in Year N.
Thus, the procedures for formulation, assessment, and approval of electricity transmission prices in Vietnam before November 22, 2022 are as specified above.
What are the procedures for formulation, assessment, and approval of electricity transmission prices in Vietnam from November 22, 2022?
Under the provisions of Clause 6, Article 1 of Circular 14/2022/TT-BCT (amending Clauses 1, 4, and 5 of Article 7 of Circular 02/2017/TT-BCT), the updated procedures are as follows:
Procedures for formulation, assessment, and approval of electricity transmission prices
1. Before November 01 every year (Year N-1), the transmission network operator shall be responsible for cooperation, formulation and submission of the document on electricity transmission price in Year N to EVN for consolidation and formulation of the electricity transmission price in year N and submission of a copy of the report to the Electricity Regulatory Authority.
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4. Within 20 working days from the date on which EVN provides the valid document as prescribed in Article 8 of this Circular, the Electricity Regulatory Authority shall be responsible for appraisal and submission to the Minister of Industry and Trade for approval for the electricity transmission price in year N.
5. In case the electricity transmission price in year N has not been disclosed before December 31, year N-1, the parties shall agree on a temporary payment under electricity transmission service contract until the electricity transmission price in year N is disclosed. The difference between the temporary payment and the new electricity transmission price (year N) will be settled by the parties after the electricity transmission price in year N is approved.
Thus, the procedures for formulation, assessment, and approval of electricity transmission prices in Vietnam from November 22, 2022 are amended as per the above provisions.
Which entities do not apply the regulations on methods and procedures for formulation, assessment, and approval of electricity transmission prices in Vietnam from November 22, 2022?
According to Article 1 of Circular 02/2017/TT-BCT outlining the scope and regulated entities:
Scope and regulated entities
1. This Circular stipulates methods and procedures for formulation, assessment and approval for electricity transmission cost.
2. This Circular applies to Vietnam Electricity, National Power Transmission Corporation, system and market operator, Electric Power Trading Company, power corporations and customers who buy electricity directly from transmission system.
However, according to Clause 1, Article 1 of Circular 14/2022/TT-BCT (supplementing Article 1 of Circular 02/2017/TT-BCT):
Scope and regulated entities
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3. This Circular does not apply to investors who invest in the construction of transmission grids from the distribution yard(s) of one or several power plants to transmit power generated by one or several power plants to the connection points which connect equipment, electrical grids and power plants to the national power system)and have other agreements with the electricity buyers on recovery of expenses on construction, management, operation and maintenance of the transmission grids.
Thus, under the new provisions, investors who invest in the construction of transmission grids from the distribution yard(s) of one or several power plants to transmit power generated by one or several power plants to the connection points that connect equipment, electrical grids and power plants to the national power system)and have other agreements with the electricity buyers on recovery of expenses on construction, management, operation and maintenance of the transmission grids are not one of the regulated entities of this Circular.
Circular 14/2022/TT-BCT takes effect from November 22, 2022.
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