Vietnam: Method for determination of total permissible capital costs for electricity transmission

08:51, 08/03/2017

This is a notable content specified in Circular No. 02/2017/TT-BCT issued on February 10, 2017 by the Ministry of Industry and Trade of Vietnam, which promulgates regulations on methods and procedures for formulation, assessment and approval for electricity transmission price.

According to Circular No. 02/2017/TT-BCT of the Ministry of Industry and Trade of Vietnam, total permissible capital costs for electricity transmission in Year N () shall be determined in following formula:

Where:

: Total expenses for fixed asset depreciation expected in Year N (VND);

: Total expected financial expenses including short-term, long-term loans, bonds, finance leases and loan application fees in Year N for electricity transmission assets (VND);

: Exchange differences expected to arise from payment of debt in foreign currency in Year N (VND);

: Exchange differences expected to arise from re-valuation in Year N (VND);

LNN: Permissible profits from electricity transmission expected in Year N (VND).

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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