Responsibilities to adjust the electricity of Vietnam Electricity

According to Article 13 of Circular No. 12/2014/TT-BCT of the Ministry of Finance of Vietnam, responsibilities to adjust the electricity of Vietnam Electricity are specified as follows:

- Raise the average price which is approved by The Ministry of Industry and Trade in the cases that it needs to be raised from 7% to below 10% and is in the prescribed bracket of price after rising.

- Reduce the average price at a proper rate and notify The Ministry of Industry and Trade and the Ministry of Finance on the reduction in the cases that it needs to be lowered and is in the prescribed bracket of price after reducing.

Moreover, Vietnam Electricity also has other responsibilities as follows:

- Develop a plan for the average price in year N and the EVN electricity price in year N-1 using the methods prescribed in this Circular after the final accounts of the electricity generation costs and the audited financial statement in year N-2 are made;

- Develop a plan for adjusting the average price in year N and then submit it to The Ministry of Industry and Trade and the Ministry of Finance before the first day of November of the year N-1. The dossier of the application for the adjustment of electricity price shall include: Plan for adjusting the electricity price of Vietnam Electricity; Explanation of the plan according to the Appendix enclosed herewith; Audited financial statement in year N-2 and relevant figures and documents;

- Develop the annual plan for electricity generation and economic – technological criteria then submit them to the competent authorities for approval;

- Develop a method for determining the electricity production transmitted from the Vietnam Electricity to The Power Corporations, then submit it to the Electricity Regulatory Authority for approval;

- Make and keep records on the annual costs of electricity supply units in order to support the electricity price calculation;

- Publish the adjustment of average price and its causes;

- Instruct The Power Corporations in calculating the total cost of electric power distribution using the method prescribed in Chapter III of this Circular; Provide necessary figures, documents for the calculation and inspection of the annual average price, EVN electricity price; total cost of electric power distribution according to the regulations of this Circular; Keep records on the average prices on the electric power distribution – retail in order to support the calculation of the total cost of electric power distribution;

- Instruct The Power Corporations in providing schemes for improving the efficiency of the operation and management of the electric power distribution networks, the quality of electric power distribution and the quality of customer services which may cause the rise of electricity generation costs. Vietnam Electricity shall consider and submit the schemes to the Electricity Regulatory Authority in order for the Electricity Regulatory Authority to assess and request The Ministry of Industry and Trade for considering approving them.

View more details at Circular No. 12/2014/TT-BCT of the Ministry of Finance of Vietnam, issued on March 31, 2014.

Le Vy

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