Vietnam: Electricity license exemptions

According to Article 3 of Circular No. 21/2020/TT-BCT of the Ministry of Industry and Trade of Vietnam, 04 cases of exemption from electricity licenses are as follows:

- Generation of electricity for serving domestic consumption without selling electricity to any other entities.

- Generation of electricity with an installed capacity of not exceeding 01 MW for selling to any other entities.

- Electricity traders in rural, mountainous or island regions that purchase electricity with a capacity of not exceeding 50 kVA from the electrical distribution grid for selling directly to consumers in such rural, mountainous or island regions.

- Dispatch of the national power system and management of transactions in the electricity market.

In other cases, organizations and individuals participating in electricity activities must carry out procedures to apply for an electricity license. Licensing rules are specified as follows:

- Before the operation of the competitive electricity retail market, an electricity license shall cover both electricity retailing and electricity distribution, except the case in Clause 2 Article 4 of Circular No. 21/2020/TT-BCT.

- If an electricity generator applies for a license to retail electricity by using its own electrical grid without purchasing electricity supplied from the national electrical grid, an electricity license shall be issued to cover both electricity retailing and electricity generation. 

- An electricity generation license shall be valid for running a power plant only.

- Maximum validity periods of electricity licenses are provided for as follows:

- In case of renaming, relocation of headquarters, or transfer of assets, the validity period of the issued electricity license shall correspond to that of the former license.

- An application may apply for an electricity license whose validity period is shorter than the corresponding one specified in Clause 4 Article 4 of this Circular, except the case in Clause 7 of this Article.

- Based on actual conditions of each electricity work item, the licensing authority may consider granting an electricity license with a validity period shorter than the corresponding one prescribed in Clause 4 Article 4 of this Circular.

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

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