Vietnam: From November 19, 2023, what is the wholesale price of electricity in markets? Which entities does the wholesale price of electricity in markets apply to?
From November 19, 2023, what is the wholesale price of electricity in markets in Vietnam?
Under Decision 2941/QD-BCT 2023 on retail electricity prices applied to groups of electricity users and electricity retailers, effective from November 9, 2023 as follows:
Accordingly, the wholesale price of electricity in markets in Vietnam is determined according to Section 9 of the Appendix issued with Decision 2941/QD-BCT in 2023. Specifically, the wholesale price of electricity in markets in Vietnam from November 19, 2023 is 2,562 VND/kWh.
Which entities does the wholesale price of electricity in markets in Vietnam apply to?
Under the provisions in Article 15a of Circular 16/2014/TT-BCT supplemented by Clause 4, Article 1 of Circular 25/2018/TT-BCT as follows:
Article 15a. Wholesale price of electricity in markets
1. The wholesale price of electricity in markets shall apply to retailers of electricity to consumers in markets by the criteria outlined in the Government's Decree No. 02/2003/ND-CP dated January 14, 2003 and the Government's Decree No. 114/2009/ND-CP dated December 23, 2009 (regardless of geographic locations of the market).
2. Retailers of electricity in markets are not eligible for application of voltage-level based electricity price as regulated in Article 4 of the Circular No. 16/2014/TT-BCT and “time of day" based electricity price as regulated in Article 5 of the Circular No. 16/2014/TT-BCT .
3. The wholesale price of electricity in markets shall be the retail price of electricity for business in normal hours at a voltage level of less than 6 kV as regulated by Article 8 of the Circular No. 16/2014/TT-BCT , deducting 10.6%.”
Thus, the wholesale price of electricity in markets in Vietnam shall apply to retailers of electricity to consumers in markets by the criteria outlined in the Government's Decree No. 02/2003/ND-CP and Decree No. 114/2009/ND-CP (regardless of geographic locations of the market).
What are the regulations on the application of electricity prices in Vietnam?
Under the provisions in Article 3 of Circular 16/2014/TT-BCT supplemented by Clause 1, Article 1 of Circular 25/2018/TT-BCT as follows:
Application of electricity price
1. Electricity price shall be applied to right subjects with power using purposes (hereinafter referred to as the using purposes) as regulated in this Circular.
Buyers (those who purchase electricity) shall declare their using purpose for the application of electricity price under this Circular.
In case there is some change to the using purposes that results in change to the electricity price, buyers must make a written notice to the seller (One who generates electricity for the purpose) 15 days in advance for adjustment to the contract in accordance with the using purpose. The seller must carry out the examination to apply the price appropriately. In case the application of electricity price deviating the using purpose has caused some loss to both buyer and seller, recovery of arrears or refund of electric bills must be made. In case the point of time when the application of wrong price starts is not determined, a period of 12 months (from the point of detection of wrong application and earlier) shall be applied for the calculation of recovery of arrears and refund of electric bills.
2. In case the buyer uses electricity for multiple purposes:
a) As for customers who register one electric meter for domestic purpose but use part of the amount of electricity from such meter for other purposes (production, business and services…), retail price for domestic purpose shall be applied for all the amount of electric energy measured by such meter;
b) As for customers who register one electric meter for purposes other than domestic purpose (hereinafter referred to as non-domestic purposes), the two sides shall negotiate the proportion of electricity used for each using purpose in reliance on real-life usage.
c) With regard to an urban area or a multistory building of which houses and apartments have been transferred to clients but the electrical grid is not yet transferred to the competent electricity agency because of failure to complete property statement procedures: Pending the transfer of the electrical grid and electric consumption by clients, the buyer and the seller shall, based on the actual consumption of electricity, carry out an agreement on the amount of electricity to which the retail price for domestic purpose is applied and the amount of electricity to which the retail price for non-domestic purposes (such as production, business, service provision, etc.) is applied; this agreement shall be used as the basis for application of electricity prices. The price of electricity used for domestic purposes shall be applied to total amount of electricity used by the buyer which is determined by the amount of electricity of each level multiplied by the number of households using electricity for domestic purpose (based on actual purposes of electricity consumption, apartment sales agreement, record of apartment transfer, family register, temporary residence register or document certifying registered temporary residence granted by local police agency)
3. On the date when electricity price is changed according to the Decision promulgated by the Ministry of Industry and Trade, the seller must finalize readings from all electric meters except domestic one.
Finalization of electric meter readings from all electric meters must be confirmed by customers, third party or agreed by the two sides.
Thus, the application of electricity prices in Vietnam is specified above.
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