Vietnam: An electricity license holder must pay attention to the following issues

According to Article 14 of Circular No. 21/2020/TT-BCT of the Ministry of Industry and Trade of Vietnam, responsibility of an electricity license holder is specified as follows:

1. Perform electricity activities according to the issued license.

2. Apply for modification of the electricity license within 30 days from the occurrence of any changes in its name, headquarters, transaction office, business type, scope or validity of the electricity license.

3. Apply for modification of the electricity license in case a part of licensed operations or scope of the license is revoked.

4. Maintain the fulfillment of licensing requirements as prescribed by law during its operation, and comply with relevant laws. Comply with law regulations on firefighting and prevention in the fields of electricity generation, transmission and distribution.

5. Fully pay licensing fees as regulated by law.

6. Do not lease, lend or alter contents of the issued electricity license.

7. Before starting its commercial operation, the license holder that is an electricity generator must:

- Enter into a power purchase agreement as prescribed;

- Have SCADA system installed to serve the operation of electrical grids and electricity market as prescribed;

- Have IT infrastructure system and telecom infrastructure system installed to serve the operation of electricity market (for power plants directly participating in the electricity market);

- Comply with other regulations on management and operation of power plants laid down in relevant legislative documents.

8. Bear the inspection of competent authorities and comply with their decisions on penalties for violations concerning the license and fulfillment of licensing requirements as prescribed by law.

9. Keep the original of the issued electricity license at its headquarters and the copy thereof at its transaction office.

10. Within 30 days from the issue date of the electricity license, the license holder shall send the copy of the issued electricity license to the local electricity authority.

11. Fulfill reporting obligations. To be specific:

- By March 01 each year, submit reports, whether directly or by post or by email, to the licensing authority and Provincial Department of Industry and Trade on performance of licensed operations in the previous year.

- Submit a report, whether directly or by post, to the licensing authority at least 60 days before the planned date of suspension or transfer of licensed electricity operations;

- Submit reports and provide adequate and accurate information at the request of the licensing authority or a competent authority.

10. At least 30 days before the expiry date of the electricity license, the license holder that wishes to continue its operations must apply for a new electricity license according to Clause 2 Article 11 hereof and carry out procedures for licensing as prescribed.

View more details at Circular No. 21/2020/TT-BCT of the Ministry of Industry and Trade of Vietnam, effective from October 26, 2020.

Thuy Tram

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE