Regulations on the Electricity purchase and sale between Large Customers and the Vietnam Electricity

Regulations on the Electricity purchase and sale between Big electricity-using customersand the Vietnam Electricity (Internet image)

On July 03, 2024, Hanoi issued Decree 80/2024/ND-CP, which stipulates the mechanism of direct electricity sales between Renewable Energy Generating Units and Large Electricity Customers.

Regulations on the Electricity purchase and sale between Big electricity-using customersand the Vietnam Electricity

Pursuant to Article 14 of Decree 80/2024/ND-CP, which sets forth the general principles for the Electricity purchase and sale between Big electricity-using customersand the Vietnam Electricity as follows:

- Big electricity-using customers or Electricity-retailing units in authorized zones or clusters are permitted to purchase electricity from the Vietnam Electricity to meet their entire demand.

- In the event that the electricity consumption of Big electricity-using customers or the electricity purchase of Electricity-retailing units in authorized zones or clusters during a transaction cycle is lower than the output of the Renewable Energy Generating Unit during that transaction cycle (calibrated to the point of receipt of the Big electricity-using customers or the Electricity-retailing units in authorized zones or clusters), the total electricity consumption of the Big electricity-using customers or the electricity purchase of the Electricity-retailing units in authorized zones or clusters must be paid for in accordance with the following cost components:

+ The cost of purchasing electricity from the Vietnam Electricity at the spot market electricity price as per the regulations on the operation of the competitive wholesale electricity market issued by the Ministry of Industry and Trade (including losses on transmission and distribution grids);

+ The cost of using the electricity system services, including the following services: electricity transmission, distribution - retail, system regulation, and market transaction management, and sector management - operation;

+ The compensation cost for the differences as stipulated in Appendix IV issued with Decree 80/2024/ND-CP.

- In the event that the electricity consumption of Big electricity-using customers or the electricity purchase of Electricity-retailing units in authorized zones or clusters during a transaction cycle is higher than the output of the Renewable Energy Generating Unit during that transaction cycle (calibrated to the point of receipt of the Big electricity-using customers or the Electricity-retailing units in authorized zones or clusters), payments shall be made as follows:

+ The portion of the electricity consumption of the Big electricity-using customers or the electricity purchase of the Electricity-retailing units in authorized zones or clusters corresponding to the output of the Renewable Energy Generating Unit shall be paid for in accordance with Clause 2, Article 14 of Decree 80/2024/ND-CP;

+ The portion of the electricity consumption of the Big electricity-using customers or the electricity purchase of the Electricity-retailing units in authorized zones or clusters exceeding the output of the Renewable Energy Generating Unit shall be paid for at the retail electricity price applicable to the corresponding customer group by usage purpose, voltage level, and time of day, as per the regulations on the implementation of electricity price issued by the Ministry of Industry and Trade.

Contracts on electricity purchase and sale between Big electricity-using customers or Electricity-retailing units in Authorized Zones or Clusters and the Vietnam Electricity

Big electricity-using customers or Electricity-retailing units in authorized zones or clusters and the Vietnam Electricity (or the authorized, delegated unit) shall negotiate, agree upon, and sign contracts on electricity purchase and sale based on the main contents stipulated in Appendix II issued with Decree 80/2024/ND-CP, ensuring compliance with Article 22 of the Electricity Law and other related legal regulations.

(Article 15 of Decree 80/2024/ND-CP)

Le Nguyen Anh Hao

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