Procedure for Establishing, Appraising, and Approving Electricity Transmission Prices from November 22, 2022, as Regulated
What are the procedures for formulating, appraising, and approving electricity transmission prices before November 22, 2022?
According to Article 7 of Circular 02/2017/TT-BCT, the procedures for formulating, appraising, and approving electricity transmission prices are as follows:
Procedures for Formulating, Appraising, and Approving Electricity Transmission Prices
1. The National Power Transmission Corporation is responsible for formulating the electricity transmission price for year N, to be submitted to Vietnam Electricity (EVN) for approval, and sending a copy of the report to the Electricity Regulatory Authority for reference.
2. By November 15 of each year (year N-1), Vietnam Electricity (EVN) is responsible for submitting the electricity transmission price for year N to the Electricity Regulatory Authority for appraisal and to the Minister of Industry and Trade for approval.
3. The Electricity Regulatory Authority is responsible for appraising the electricity transmission price dossier and may use consultants to appraise the dossier if necessary. If the dossier is not compliant according to the regulations in Article 8 of this Circular, Vietnam Electricity (EVN) must complete and supplement it within 5 working days from receipt of the request from the Electricity Regulatory Authority.
4. By December 5 of each year (year N-1), the Electricity Regulatory Authority must submit the appraisal report of the electricity transmission price for year N to the Minister of Industry and Trade.
5. By December 15 of each year (year N-1), the Minister of Industry and Trade approves the electricity transmission price for year N.
Thus, the procedures for formulating, appraising, and approving electricity transmission prices before November 22, 2022, are as specified above.
Procedures for formulating, appraising, and approving electricity transmission prices from November 22, 2022 (Image from the Internet)
What are the procedures for formulating, appraising, and approving electricity transmission prices from November 22, 2022?
Based on 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 Formulating, Appraising, and Approving Electricity Transmission Prices
1. By November 1 of each year (year N-1), electricity transmission units are responsible for coordinating, compiling, and submitting the electricity transmission cost dossier for year N to Vietnam Electricity (EVN) to consolidate and formulate the electricity transmission price for year N, and sending a copy of the report to the Electricity Regulatory Authority for reference.
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4. Within 20 working days from the date Vietnam Electricity (EVN) provides a compliant dossier according to Article 8 of this Circular, the Electricity Regulatory Authority must appraise and submit the electricity transmission price for year N to the Minister of Industry and Trade for approval.
5. If the electricity transmission price for year N is not announced by December 31 of year N-1, parties shall agree on provisional payment in the electricity transmission service contract until the electricity transmission price for year N is announced. The difference between the provisional price and the new transmission price (year N) will be settled after the transmission price for year N is approved.
Thus, the procedures for formulating, appraising, and approving electricity transmission prices from November 22, 2022, are amended as per the above provisions.
Who is exempt from the regulations on methods, procedures for formulating, appraising, and approving electricity transmission prices from November 22, 2022?
According to Article 1 of Circular 02/2017/TT-BCT outlining the scope and subjects of application:
Scope and Subjects of Application
1. This Circular provides regulations on the methods, procedures for formulating, appraising, and approving electricity transmission prices.
2. This Circular applies to Vietnam Electricity (EVN), the National Power Transmission Corporation, System and Market Operator Entities, Power Trading Companies, Electricity Corporations, and consumers purchasing electricity directly from the transmission grid.
However, according to Clause 1, Article 1 of Circular 14/2022/TT-BCT (supplementing Article 1 of Circular 02/2017/TT-BCT):
Scope and Subjects of Application
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- This Circular does not apply to investors implementing the construction of transmission grids from the distribution yard of one or several power plants to the connection point (the point connecting equipment, grids, and power plants to the national grid) with different agreements with the electricity purchaser on the recovery of construction, management, operation, and maintenance costs of the transmission grid.
Thus, under the new provisions, investors implementing the construction of transmission grids from the distribution yard of one or several power plants to the connection point, with different agreements with the electricity purchaser on the recovery of construction, management, operation, and maintenance costs of the transmission grid, are not subject to this Circular.
Circular 14/2022/TT-BCT takes effect from November 22, 2022.
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