Vietnam’s Circular 21: Regulations on documents for ratification of ancillary service pricing

According to Article 10 of Circular No. 21/2015/TT-BCT of the Ministry of Industry and Trade of Vietnam, the following documents shall be presented to the Electricity Regulatory Authority for assessment and transfer of such to the Ministry of Industry and Trade for ratification of prices of services for fast boot reserve, cold boot reserve and mandatory maintenance of electric power system security:

1. The application for ratification of ancillary service prices.

2. 05 (five) copies of the written description for the calculation of ancillary service prices, including these essential particulars:

- The report on power plants' past and planned enforcement of economic-technical norms to the 30th of September and 31st of December of the year N-1, respectively;

+ The report on the amount of electricity delivered and average fuel consumption rate in the year N-1;

+ The report on business and production results, such as power plants' revenues and costs to the 30th of September and their anticipated revenues, costs and profits to the 31st of December in the year N-1;

- The description and calculation of ancillary service prices in the year N consist of: The detailed description and calculation sheet of the business plan, including depreciation cost, interest cost, salary cost, auxiliary material cost, major repair cost, outsourced service cost, other costs in monetary unit, drying cost, exchange differences, rated profit. Such parameters are factors for the determination of power plants’ fixed costs and price in the year N.

- Documents enclosed:

+ The general financial statement for the year N-2 and the cost price report, audited by an independent auditing entity (if available), in consonance with each factor of the production of electricity in the year N-2;

+ The plan for major repairs of generators of the provider of ancillary services in the year N;

+ The ancillary service provider's registration of electricity generators’ available output anticipated in the year N;

+ The fuel consumption characteristics of the ancillary service provider's generators;

+ The ancillary service provider’s auxiliary material rate for production of electricity;

+ The rate of consumption of fuel and electronics for booting generators at hot and cold start modes;

+ The rate of electric power for drying generators in standby shutdown condition;

+ The anticipated price of fuel and materials in the year N for production of electricity and regular repairs.

View more details at Circular No. 21/2015/TT-BCT of the Ministry of Industry and Trade of Vietnam, effective from August 07, 2015.

Ty Na

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