Conditions for granting electricity activity licenses in Vietnam

Conditions for granting electricity activity licenses in Vietnam

Pursuant to the provisions of Article 32 of the Law on Electricity 2004 (amended in 2012), organizations, individuals are granted license for conducting one or many fields of electricity activity

Organizations, individuals shall be granted electricity activity licenses, have their electricity operation licenses amended or supplemented when fully satisfying the following conditions:

- Having feasible projects or schemes for electricity activities;

- Having valid dossiers of application for the grant, amendment or supplementation of electricity activity licenses;

- The administrators or managers have the managerial capability and professional qualifications suitable to the fields of electricity activities.

Organizations and individuals applying for the grant, amendment or supplementation of electricity activity licenses must pay fees according to law provisions.

Conditions for granting electricity activity licenses in Vietnam (Internet image) 

Cases of exemption from electricity activity licenses in Vietnam

Pursuant to Article 34 of the Law on Electricity 2004, the following cases shall be exempt from electricity activity licenses:

(1) Organizations or individuals invest in the construction of electricity-generating establishments for their own use, not for sale of electricity to other organizations or individuals;

(2) Organizations or individuals engaged in electricity generation with the installation capacity below the level prescribed by the industry Ministry;

(3) Organizations, individuals dealing in electricity in rural areas, mountainous regions, islands, that buy electricity with output smaller than 50 kVA from the electricity distribution grids for direct sale to electricity-using customers in rural areas, mountainous regions or islands;

(4) The national electric system-regulating unit and the electricity market transaction- administering unit.

Orqanizations and individuals exempt from electricity activity licenses under the provisions above must comply with the procedures and regulations on operation management, regulations on electricity prices, technical conditions and safety prescribed in the Law on Electricity 2004.

The provincial-level People's Committees shall have to manage and inspect organizations and individuals engaged in electricity activities prescribed at points (1), (2) and (3) above.

Dossiers of application for grant, amendment or supplementation of electricity activity licenses in Vietnam

Pursuant to Article 33 of the Law on Electricity 2004, dossiers of application for grant, amendment or supplementation of electricity activity licenses includes:

- The written application for grant, amendment or supplementation of an electricity activity license.

- The electricity activity project or scheme.

- The report on assessment of environmental impacts of the electricity activity project already approved by competent state body.

- The list, curricula vitae, diplomas evidencing the managerial capability, professional qualifications of administrators, managers of the electricity units.

Withdrawal of electricity activity licenses in Vietnam

Pursuant to Article 37 of the Law on Electricity 2004, organizations and individuals shall have their electricity activity licenses withdrawn in the following cases:

- Failing to deploy activities six months after being granted the electricity activity on licenses;

- Failing to ensure electricity activity conditions as provided for by the Law on Electricity 2004;

- Failing to comply with the contents prescribed in the electricity activity licenses;

- Leasing, lending or modifying without permission their electricity activity licenses.

Competence to grant, amend, supplement or withdraw electricity activity license in Vietnam

Competence to grant, amend, supplement or withdraw electricity activity licenses is specified in Article 38 of the Law on Electricity 2004 as follows:

- The Industry Ministry shall grant electricity activity licenses to electricity-generating, -transmitting, -distributing units with connection to the national electric system, electricity-wholesaling or retailing units, specialized electricity consultancy units,

- The provincial-level People's Committees shall grant electricity activity licenses to organizations, individuals engaged in small-scale electricity activities within their respective localities under the guidance of the Industry Ministry.

- The electricity activity-licensing agencies may amend, supplement and withdraw electricity activity licenses. The amendment and supplementation of electricity activity licenses must be compatible with the execution capabilities of the licensed organizations or individuals.

- The grant of electricity activity licenses for electricity generation, transmission or distribution must conform with the approved electricity development plannings.

Mai Thanh Loi

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