Vietnam: Electricity transmission price documents

According to Circular No. 02/2017/TT-BCT of the Ministry of Industry and Trade of Vietnam, electricity transmission price documents include:

- Written statement for approval for electricity transmission price in Year N.

- Explanations and calculations of transmission price in Year N, including:

+ Analysis and assessment of performance of output generation targets, transmission loss ratio, revenues, expenses in Year N-1; analysis and assessment of achievement of profits, performance of equity capital, financial criteria such as return on equity, equity capital structure and loans, self-financing ratio, debt payment ratio until June 30 of Year N-1;

+ Explanations and calculations of total permissible capital costs in Year N () of the National Power Transmission Corporation, including:

• Total expenses for depreciation in Year N: Summary of fixed asset depreciation in Year N and detailed calculation of basic depreciation of individual fixed asset types in Year N;

• Total financial expenses and exchange differences in Year N: Detailed calculation of financial expenses, loan interests and exchange differences in Year N;

• Equity capital estimated until the end of Year N-1 and expected in Year N: Explanations and detailed calculations of increase and decrease in equity capital in Year N-1 and Year N;

• Profits, return on equity, self-financing ratio, debt payment ratio expected in Year N.

+ Explanations and review calculations of total permissible expenses for operation and maintenance in Year N () of the National Power Transmission Corporation, including:

• Total expenses for materials in Year N: Explanations and calculations of expenses for materials estimated in Year N-1 and expected in Year N;

• Total payroll expenses in Year N: Explanations and calculations of payroll expenses as prescribed;

• Total expenses for overhaul in Year N: Explanations and calculations of expenses for overhaul in Year N as prescribed;

• Total expenses for outside services in Year N; Explanations and calculations of expenses for outside services by work item estimated in Year N-1 and expected in Year N as prescribed;

• Other cash-related expenses in Year N: Explanations and calculations of other cash-related expenses estimated in Year N-1 and expected in Year N as prescribed in Clause 6, Article 6 herein;

+ Explanations and calculations of total permissible electricity transmission revenue in Year N.

Moreover, accompanying documents include:

- Lists of investment projects expected to be put into operation until December 31 of Year N-1 and Year N (by month) in accordance with approved national electricity development master plan and annual electricity transmission network expansion plan by the National Power Transmission Corporation;

- Summary of number of employees in Year N-1 and expected in Year N;

- Lists of work items subject to overhaul in Year N-1 and expected in Year N;

- Financial statements in Year N-2 audited by an independent audit agency: Balance sheets, business performance, cash flow statements, explanations;

- Norms for expense components in the documents approved by competent authorities.

View more details at Circular No. 02/2017/TT-BCT of the Ministry of Industry and Trade of Vietnam, effective from March 27, 2017.

-Thao Uyen-

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