Guidelines on the dossier for wholesale electricity pricing framework in Vietnam from February 1, 2025

Guidelines on the dossier for wholesale electricity pricing framework in Vietnam from February 1, 2025

The dossier for the wholesale electricity price framework includes:

- Explanation of the basis for constructing the wholesale electricity price framework for year N.

- Explanation and calculation tables for the wholesale electricity price framework for year N, including:

+ Evaluation report on the estimated implementation of commercial electricity output indicators, electricity loss ratio, revenue performance, and costs for year N-1;

+ Explanation and calculations of cost components and profits of Power Corporation i, including:

++  Summary  table  of  distribution  and  retail  electricity  costs  for  the  Power  Corporation;

++    Depreciation  calculation  table  of  existing  fixed  assets  for  year  N  includes:  a  summary  of  the  basic  depreciation  value  of  estimated  existing  fixed  assets  recorded  as  of  December  31,  year  N-1;  anticipated  new  fixed  asset  original  price  increase  for  year  N  and  anticipated  depreciation  of  new  fixed  assets  increase  for  year  N;  anticipated  new  fixed  assets  increase  for  year  N  according  to  the  list  of  power  projects  (including  data  on  total  investment  amount,  provisional  asset  increase,  projected  power  commissioning  time,  projected  depreciation  cost  allocation  for  year  N);

++  Loan  interest  calculation  table  for  year  N  according  to  credit  agreements;

++  Estimated  foreign  exchange  cost  difference  table  for  year  N;

++  Summary  table  on  labor  fluctuations  for  distribution  and  retail  electricity  operations  estimated  for  year  N-1,  average  labor  plan  for  distribution  and  retail  electricity  operations  for  year  N,  and  projected  wage  cost  plan  and  salary-based  deductions  for  distribution  and  retail  electricity  operations  for  year  N;

++  Projected  cost  and  revenue  plan  for  areas  not  yet  connected  to  the  national  electric  grid  (if  any);

++  Projected  data  table  for  costs  of  purchasing  rooftop  solar  electricity  for  year  N;

++  Owner's  equity  as  of  June  30,  year  N-1  (in  local  currency).

+ Explanation and calculation of major repair costs, material costs, cost of outsourced services, other monetary costs, customer development costs, customer care and communication costs, meter costs;

+ Explanation and calculation table of electricity purchase cost from the electricity market by Power Corporation i for year N, including:

++  Explanation  of  input  parameters  for  simulating  electricity  purchase  cost  from  the  electricity  market,  including:  forecasted  load  for  year  N;  general  data  for  the  electricity  market  in  year  N:  market  energy  price,  market  capacity  price,  loss  conversion  coefficient;  data  of  power  plants  with  allocated  contracts  and  power  plants  signing  direct  contracts  with  Power  Corporation  i  in  year  N:  contract  price,  contract  output,  planned  output;

++  Calculation  table  of  electricity  purchase  cost  from  the  electricity  market  by  Power  Corporation  i  in  year  N.

+ Explanation and calculation table for taxes and fees of power plants signing direct contracts with Power Corporation i in year N, including:

++  Explanation  of  environmental  protection  costs  concerning  industrial  wastewater,  cooling  water  fees,  resource  taxes,  water  resource  exploitation  rights  fees,  forest  environmental  services,  and  other  related  costs;

++  Calculation  table  for  the  allocation  of  taxes  and  fees  of  power  plants  signing  direct  contracts  with  Power  Corporation  i  in  year  N.

- Supporting documents include:

+ Audited financial statements for year N-2 as audited by an independent audit agency: Balance sheet, production and business operation results report, cash flow statement, explanatory report;

+ Norms for cost components used in the dossier approved by the competent authority.

- In cases where there are audited financial statements for year N-1, the data for year N-1 stipulated in Clause 2, Article 8 of Circular 17/2025/TT-BCT is based on updated data following the audited financial statements.

- The dossier for the wholesale electricity price framework is drafted in paper document format, with data message format being equally valued as documents according to legal regulations. The Vietnam Electricity Group is responsible for directly sending 01 set of the dossier in the data message format and, if necessary, directly sending 01 set of the dossier in paper document format to the State management agency for electricity.

More details can be found in Circular 17/2025/TT-BCT which takes effect from February 1, 2025.

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