Conditions for Applying for a Retail Electricity License

Clause 5 Article 3 of the Law on Electricity 2004 stipulates:

Retailing electricity is the activity of selling electricity by the power entity to customers using electricity.

According to the information you provided, your company has a demand to sell electricity to residents. Based on the above regulation, in this case, your company must apply for a retail electricity operation license. To be granted this license by the competent authority, your company needs to meet the conditions specified in Article 33 of Decree 137/2013/ND-CP, specifically:

The organization established in accordance with the law and individuals registering for retail electricity operations must meet the following conditions:

1. The person directly managing retail electricity business must have a diploma of intermediate level or higher in the field of electricity, economics, finance, or a similar field and have at least 3 years of experience in the field of electricity trading. (This clause is amended by Point b Clause 6 Article 6 of Decree 08/2018/ND-CP)

Clauses 2 and 3 are annulled by Clause 6 Article 7 of Decree 08/2018/ND-CP.

Thus, your company must meet the above condition in accordance with the law.

Regarding the application for the electricity wholesale and retail operation license as stipulated in Article 9 of Circular 36/2018/TT-BCT, the dossier includes:

1. A written request for the electricity operation license following Form 01 provided in the Appendix issued with this Circular.

2. A copy of the Business Registration Certificate, Establishment Decision, or Establishment Certificate of the organization or individual applying for the license.

3. A list of brief personal backgrounds for the person directly managing the business according to Form 3b provided in the Appendix issued with this Circular; a copy of the graduation diploma or certificate, and an electrical safety card of the individuals named in the list.

Additionally, as stipulated in Article 13 of Circular 36:

- You may submit the application to the Electricity Regulatory Authority to be granted a retail electricity operation license;

- For retail electricity activities up to the voltage level of 0.4 kV locally, submit the application to the People's Committee of the province or centrally-run city.

The procedure for granting, amending, supplementing electricity operation licenses is stipulated in Article 11 of Circular 36 as follows:

1. At least 15 working days before the expected official commercial operation date, entities participating in electricity generation must submit a complete application for an electricity operation license.

2. Organizations and individuals applying for granting, amending, supplementing electricity operation licenses shall send 01 set of application documents to the licensing authority as stipulated in Chapter II of this Circular and are responsible for the accuracy and truthfulness of the application.

3. The form of application submission is regulated as follows:

a) For applications under the licensing authority of the Ministry of Industry and Trade and the Electricity Regulatory Authority: Submit via the online public service portal.

In case the electronic application has a large capacity or the documents required by law cannot be sent via electronic network, may send directly or via postal service.

b) For applications under the licensing authority of the People's Committee of the province or centrally-run city: Submit directly, via postal service, or online on the licensing authority's electronic information page (if available).

4. The procedure for granting, amending, supplementing electricity operation licenses online is implemented as follows:

a) Online applications are processed according to instructions on the Ministry of Industry and Trade’s Online Public Service Portal. Specifically:

- The organizations and individuals applying for a license shall register an account on the Online Public Service Portal at: http://online.moit.gov.vn; use the registered account to complete and submit applications online;

- Within 15 working days from the date of receiving a complete and valid application on the Online Public Service Portal, the licensing authority is responsible for appraising the documentation, checking on-site (if necessary), and granting the electricity operation license.

b) The People's Committee of the province or centrally-run city guides the licensing authority within its jurisdiction in online forms (if available) in accordance with this Circular.

5. The procedure for granting, amending, supplementing electricity operation licenses not via online is implemented as follows:

a) Within 03 working days from the date of receiving the application for the electricity operation license, the licensing authority has to notify in writing the organization or individual applying for the license if the application is incomplete or invalid. The notification must state the reasons and request for supplement or rectification of data, documents, and related information to complete the application;

b) Within 05 working days from the date of receiving the request for supplement, rectification of data, documents, and related information from the licensing authority, the organization or individual applying for the license must supplement, rectify the data, documents, related information, and respond in writing.

Within 60 days from the date the licensing authority issues a written request for rectification, supplement, if the organization or individual applying for the license does not rectify, supplement the application, and respond in writing, the licensing authority has the right to return the application for the electricity operation license;

c) Within 15 working days from the date of receiving a complete and valid application, the licensing authority is responsible for appraising the documentation, checking on-site (if necessary), and granting the electricity operation license.

6. During the appraisal process of the application and actual inspection, if the organization or individual does not meet sufficient conditions as stipulated or does not comply with the relevant legal provisions, the licensing authority has the right to request the organization or individual applying for the license to supplement to meet conditions or to refuse granting the license in writing (stating the reasons).

7. Electricity operation license is issued with 03 originals: 01 for the licensed entity and 02 for filing at the licensing authority.

8. Before the electricity operation license expires by 30 days, the licensed electricity unit needing to continue operations must submit an application for an electricity operation license in accordance with Clause 2 of this Article and carry out procedures for applying for an electricity operation license as regulated.

9. In case the license is lost or damaged, the electricity entity must request the licensing authority to re-issue, clear stating reasons.

Thus, after meeting all the conditions, you should proceed with the procedures to apply for a retail electricity license following the regulations.

The term of the retail electricity license is 10 years; if your company requests a shorter term for the electricity operation license, the license will be issued according to the requested term.

Regarding retail electricity prices, your company shall comply with the provisions in Clause 1 Article 31 of the Law on Electricity 2004, amended by Clause 15 Article 1 of the amended Law on Electricity 2012:

The retail electricity price is determined by the retail electricity unit based on the price framework of the average retail electricity price, the price adjustment mechanism, and the retail electricity price structure regulated by the Prime Minister in accordance with the development level of the electricity market, except as stipulated in Clause 2 Article 62 of this Law.

The Ministry of Industry and Trade takes the lead, in cooperation with the Ministry of Finance to formulate the price framework of the average retail electricity price, the price adjustment mechanism, and the retail electricity price structure to propose to the Prime Minister for decision.

The adjustment of retail electricity prices must be transparent regarding changes in related constituent factors influencing price adjustment. The State applies measures to stabilize electricity prices in accordance with legal provisions on pricing.

The editorial team informs you!

Respectfully!