Vietnam: Contents of the explanation of the calculation of total cost of the electric power distribution

Specifically, according to the Appendix on the explanation of the average price of Vietnam Electricity enclosed with Circular No. 12/2014/TT-BCT of the Ministry of Finance of Vietnam, the explanation of the calculation of total cost of the electric power distribution of the  Power Corporations which includes the following contents:

- The analysis and assessment of the generation and sale of The Power Corporations, achieved criteria for the commercial electricity generation, the average price, the energy loss, the number of customers; the costs incurred in year N-2, total cost up to Sep 30 of year N-1, and estimated total cost at the end of year N-1;

- The total value of assets serving the electricity generation incurred up to December 31 of year N-2, total value up to Sep 30 of year N-1, estimated total value at the end of year N-1, and estimated total value in year N;

- The calculations and explanations of the budget for purchasing new fixed assets supporting the electric power distribution – retail in the year for which the price is being calculated, the cost of depreciation for such assets in year N;

- The calculations and explanations of commercial electricity generation, the number of customer of the year for which the price is being calculated;

- The calculations and explanations of total cost of operation and maintenance in year N of The Power Corporations which includes the costs of materials, salaries and expenditures classified as salaries, customer development, major repairs, purchased services and other costs;

- The calculations and explanations of depreciation, interests on loans, exchange differences in year N-2, up to September 30 of the year N-1 and the estimate by the end of the year N-1; the estimate in year N;

- Lists of investment projects which are expected to be finished and commenced operation in year N-1, or shall be carried out in year N;

- Lists of fixed assets and the increased or decreased values thereof up to the end of the year N-1 and in each month of the year N;

- The summary of the fluctuations in the number of regular and permanent workers on the payroll of the Power Corporation and other units up to the end of the year N-1 and in the plan in year N;

- A statement on alternative materials which are in the store and planed for purchasing up to the end of the years N-1 and N;

- Lists of the major repairs in the years N-1 and N;

- A statement of long-term loans up to December 31 of the year N-2;

- The audited financial statement in year N-2 including the Balance sheet, the report on the production and sale, cash flow statement, explanations; a copy of administrative financial statement of the  Power Corporations;

- Other tables instructed by the Electricity Regulatory Authority.

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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