Which agency is responsible for monitoring and supervising the Fund for assurance of financial obligations to termination of operations and decommissioning of nuclear power plants in Vietnam?

Which agency is responsible for monitoring and supervising the Fund for assurance of financial obligations to termination of operations and decommissioning of nuclear power plants in Vietnam?​ (Internet image) 

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

What is the Fund for assurance of financial obligations to termination of operations and decommissioning of nuclear power plants?

According to Article 3 of Decision 09/2014/QD-TTg, the Fund for assurance of financial obligations to termination of operations and decommissioning of nuclear power plants is understood as a fund managed by the organization that owns the nuclear power plant, established to ensure sufficient financial resources for the termination of operations and decommissioning of the nuclear power plant.

The management requirements for the Fund for assurance of financial obligations to termination of operations and decommissioning of nuclear power plants are as follows:

- Ensure that the collection and use of the fund's capital are carried out in accordance with the provisions of Decision 09/2014/QD-TTg and relevant laws.

- Ensure the safety, preservation, and development of the fund's capital, and improve the efficiency of the fund's operations.

- Carry out accounting, auditing, and financial disclosure in accordance with the provisions of the law.

Sources of revenue for the Fund for assurance of financial obligations to termination of operations and decommissioning of nuclear power plants in Vietnam

The sources of revenue for the fund are specified in Article 5 of Decision 09/2014/QD-TTg as follows:

(1) Sources of revenue for the fund include:

- Accumulated revenue from electricity sales: The organization that owns the nuclear power plant must allocate a portion of its annual electricity sales revenue to the fund; this accumulated source is accounted for in the production cost of electricity for the nuclear power plant. The allocation rates on annual electricity sales revenue for the nuclear power plant are as follows:

+ During the first 5 years of operation: The allocation rate is 1%;

+ During the next 5 years of operation: The allocation rate is 2%;

+ During the subsequent operation period: every 5 years, the Ministry of Industry and Trade shall lead the examination and submit to the Prime Minister a decision on adjusting the allocation rate based on the proposal of the organization that owns the nuclear power plant and the plan for the decommissioning of the nuclear power plant approved by the competent authority.

- Other sources of revenue:

+ Annual interest income after fulfilling financial obligations to the State is transferred to the fund;

+ Other legal sources of revenue.

(2) Timing of allocation and contribution to the fund:

- The fund is calculated for allocation and contribution from the time the nuclear power plant begins commercial operation.

- Annually, within 30 days after the end of the fiscal year, the organization that owns the nuclear power plant must contribute the amount of money calculated according to the provisions in Point a, Clause 1, Article 5 of Decision 09/2014/QD-TTg to the fund.

(3) Adjustment to the fund's revenue:

- Within 5 years before the time of decommissioning of the nuclear power plant approved by the competent authority, the organization that owns the nuclear power plant must assess the fund balance and estimate the total necessary costs for the termination of operations and decommissioning of the nuclear power plant.

Note: In cases where the fund balance is insufficient compared to the necessary funds for the termination of operations and decommissioning of the plant, the organization that owns the nuclear power plant must plan to mobilize sufficient additional funds for the fund before the start of the decommissioning of the plant within 1 year.

- In case of natural disasters and force majeure events that require the decommissioning of the nuclear power plant, if the fund balance is insufficient, the remaining funds for the decommissioning of the nuclear power plant will be mobilized from the organization that owns the nuclear power plant, supported by the state budget and other legal sources.

Which agency is responsible for monitoring and supervising the Fund for assurance of financial obligations to termination of operations and decommissioning of nuclear power plants in Vietnam?

Based on Article 11 of Decision 09/2014/QD-TTg on the supervising and auditing of the fund's activities:

- The Ministries of Industry and Trade, Finance are responsible for inspecting and supervising the management of the fund in accordance with the provisions of Decision 09/2014/QD-TTg and relevant laws.

- The fund is responsible for hiring an independent auditing organization to conduct annual audits in accordance with the regulations and is subject to the audit of the State Audit.

In addition, the reguations on the implementation organization is as follows:

- The Ministry of Industry and Trade:

+ Takes the lead in coordinating with the Ministry of Finance, the Ministry of Science and Technology to inspect and supervise the collection, contribution, management, and use of the fund;

+ Takes the lead in coordinating with the Ministry of Finance to provide guidance on:

++ Reporting on the management and use of the fund;

++ Documentation, procedures, and processes for adjusting the allocation and contribution to the fund; appraising and approving the fund's settlement.

- The Ministry of Finance issues regulations on the management and use of temporarily unused funds of the fund; coordinates with the Ministry of Industry and Trade to provide guidance on the management and use of the fund.

(Article 14 of Decision 09/2014/QD-TTg)

Therefore, the Ministry of Industry and Trade is responsible for leading the coordination with the Ministry of Finance, the Ministry of Science and Technology to monitor and supervise the Fund for assurance of financial obligations to termination of operations and decommissioning of nuclear power plants. At the same time, the fund is also subject to the audit of the State Audit.

Doan Duc Tai

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