08 Subjects participating in the electricity markets in Vietnam

08 Subjects participating in the electricity markets in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. Electricity market formation and development in Vietnam

According to Clause 1, Article 18 of the Electricity Law 2004 (amended 2012), the electricity markets are formed and develop according to the following grades:

- The competitive electricity generation market;

- The competitive electricity wholesaling market;

- The competitive electricity retailing market.

2. Operating principles in the electricity market in Vietnam

Activities in the electricity market must ensure the principles specified in Article 17 of the Electricity Law 2004 (amended 2012), specifically as follows:

- To ensure publicity, transparency, equality, fair competition, non-discrimination among subjects participating in the electricity markets.

- To respect the rights to opt for partners and transaction forms of subjects purchasing and selling electricity on the markets suitable to the development grades of electricity markets.

- The state shall regulate the operation of the electricity markets in order to ensure the sustainable development of the electric systems, meeting the requirements of safe, stable and efficient supply of electricity.

3. Subjects participating in the electricity markets in Vietnam

Specifically, in Article 19 of the Electricity Law 2004 (amended 2012), the subjects participating in the electricity markets include:

(1) Electricity-generating units.

(2 Electricity-transmitting units.

(3) Electricity-distributing units.

(4) Electricity-wholesaling units.

(5) Electricity-retailing units.

(6) The national electric system-regulating units.

(7) Electricity market transaction- administering units.

(8) Electricity-using customers.

4. Major regulations on transaction activities on the electricity markets in Vietnam

Major regulations on transaction activities on the electricity markets include:

- Rights and obligations of subjects participating in the electricity markets being compatible with the development grades of the electricity markets;

- The technical properties of electricity-generating, -transmitting or-distributing equipment;

- Regulating the national electric system on the electricity markets;

- Incident-handling process;

- Spot electricity dealings on the electricity markets;

- Price offer and market price determination;

- Making invoices and payments between electricity-trading subjects defined in Section 4 and the support service-providing units;

- Support service provision and support service prices;

- Handling violations and settling disputes over complaints about electricity-trading activities and support services on the electricity markets;

- Supplying, publicizing information related to operation of, administration of transactions on, the electricity markets.

(Clause 1, Article 20 of the Electricity Law 2004 (amended 2012))

5. Major contents of administering transactions on the electricity markets in Vietnam

According to Clause 2, Article 20 of the Electricity Law 2004 (amended 2012), major contents of administering transactions on the electricity markets include:

- Controlling transaction activities of the subjects participating in the electricity market so as to ensure that the markets operate strictly according to the regulations on administering market transactions, the mutual agreements among the parties and other law provisions;

- Publicizing the electricity prices for spot dealings and support service prices prescribed in Section 4;

- Providing transaction services and making payment invoices for the portion of electric energy and output traded in form of spot dealing and support services;

- Receiving and handling proposals related to electricity trading transaction activities in the electricity markets in order to ensure the stability and efficiency and prevent acts of unfair competition;

- Supplying information related to the operation of, administration of transactions in, the electricity markets to the relevant parties;

- Reporting on electricity trading transaction activities in the electricity markets to the electricity-regulating agencies.

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