Circular No. 05/2009/TT-BCT dated February 26, 2009 of the Ministry of Industry and Trade prescribing 2009 electricity sale prices and guiding the application thereof

CIRCULAR

PRESCRIBING 2009 ELECTRICITY SALE PRICES AND GUIDING THE APPLICATION THEREOF

THE MINISTER OF INDUSTRY AND TRADE

Pursuant to the Government’s Decree No. 189/2007/ND-CP of December 27, 2007, defining the functions, tasks, powers and organizational structure of the Ministry of Industry and Trade;

Pursuant to the December 3, 2004 Electricity Law; and the Government’s Decree No. 105/2005/ND-CP of August 17, 2005, detailing and guiding a number of articles of the Electricity Law;

Pursuant to the Prime Minister’s Decision No. 21/2009/QD-TTg of February 12, 2009, approving market-based electricity sale prices to be applied in 2009 and during 2010-20/2;

At the proposal of the director of the Electricity Regulatory Authority of Vietnam,

PRESCRIBES:

Chapter I.

GENERAL PROVISIONS

Article 1. Scope of regulation and subjects of application

1. This Circular prescribes electricity wholesale and retail prices and guides the application thereof.

2. This Circular applies to organizations and individuals buying and selling electricity from the national power system.

3. Provincial-level People’s Committees shall decide on electricity sale prices in localities which are not connected with the national power grid after getting written opinions from the Electricity Regulatory Authority of Vietnam.

Article 2. Voltage-based electricity sale prices

1. Voltage-based electricity sale prices under this Circular are applicable to all electricity buyers other than those buying electricity at daily-life electricity retail prices or at wholesale prices applicable to rural areas, condominiums and residential clusters.

2. Electricity shall be sold at the price applicable to the voltage of the electric metering system.

Article 3. Consumption hour-based electricity sale prices

Electricity sale prices are set based on the time of consumption during the day (below referred to as three-price system).

1. Off-peak hours:

a/ From Monday to Saturday:

- From 4:00 h to 9:30 h (5 hours and 30 minutes);

- From 11:30 h to 17:00 h (5 hours and 30 minutes);

- From 20:00 h to 22:00 h (2 hours).

b/ Sunday:

From 4:00 h to 22:00 h (18 hours).

2. Peak hours:

a/ From Monday to Saturday:

From 9:30 h to 11:30 h (2 hours);

From 17:00 h to 20:00 h (3 hours);

b/ Sunday: no peak hours

3. Low hours:

All days from 22:00 h to 4:00 h (6 hours).

Article 4. Conditions for application of electricity wholesale prices

Electricity wholesale prices under Articles 8, 9 and 10 of this Circular are applicable to power units fully meeting the conditions below:

a/ Possessing a permit for electricity distribution and retail granted by a competent agency.

b/ Keeping accounting books according to regulations, which account electricity sales separately.

c/ Having electricity trading contracts, installing separate electric meter for each household, and issuing electricity charge invoice to each consumer in each payment period under electricity trading contracts.

Article 5. Guidance on application of electricity sale prices

1. Electricity sale prices under this Circular are exclusive of value-added tax.

2. Detailed guidance on application of prices is provided in Appendix to this Circular.

Chapter II.

ELECTRICITY WHOLESALE PRICES

Article 6. Parameters for calculating 2009 electricity sale prices

Parameters for calculating the 2009 electricity sale price (the average electricity retail price is VND 948.5/kWh, exclusive of value-added tax) include:

1. Estimated total commercial electricity output in 2009: 74.701 billion kWh.

2. Estimated total output of domestically generated and imported electricity in 2009: 85.046 billion kWh.

3. Frequency of water flow to hydropower reservoirs: 50%.

4. Prices of coal for electricity generation: grade-5 slack: VND 405,500/ton; grade-4b slack: VND 442,000/ton (up 27% over the 2008 price).

5. Price of southwestern gas for electricity generation calculated according to the 2009 average crude oil price: USD 60/barrel, equivalent to Singapore market MFO price: USD 47.4/barrel.

6. The 2009 average price of DO (diesel oil) for electricity generation: VND 11,000/liter.

7. The 2009 average price of FO (fuel oil) for electricity generation: VND 8,500/kg.

8. VND/USD exchange rate: VND 17,000/USD.

Article 7. Electricity wholesale prices applicable to power companies

1. Average electricity wholesale prices applicable to power companies

The Electricity Purchase and Trading Company’s average electricity wholesale price applicable to power companies at points of delivery is VND 706.96/kWh, comprising:

a/ The average electricity production cost to the point of delivery (comprising costs of electricity generation, imported electricity and transmission loss): VND 629.05/kWh.

b/ The average expense for regulating the electricity system, administering and operating the electricity market, and support services and branch management: VND 9.25/kWh.

c/ The average cost of electricity transmission to the point of delivery: VND 68.66/kWh (calculated for the output of domestically generated electricity and electricity imported through transmission grids).

2. Before March 31, 2009, Electricity of Vietnam (EVN) shall, based on the price level specified in Clause 1 of this Article, elaborate adjusted electricity wholesale price applicable to each power company and cross compensation among power companies on the principle of ensuring the ratio of profit to own capital for each power company at the level under the approved 2009 electricity pricing scheme for report to the Electricity Regulatory Authority of Vietnam.

When EVN’s determination of adjusted electricity wholesale price applicable to each power company and cross compensation tails to comply with the prescribed principle and match parameters, within 15 days alter receiving EVN’s official notice, the Electricity Regulatory Authority of Vietnam shall request in writing EVN to make justifications and recalculations.

Article 8. Electricity wholesale prices applicable to rural areas

1. Conditions for application

The electricity wholesale price for rural areas is applied to rural electricity retailers that fully meet the conditions specified in Article 4 of this Circular and install general electric meters at transformer stations.

After August 31, 2009, if rural electricity retailers fail to meet the above conditions, provincial-level Industry and Trade Services shall report to provincial-level People’s Committees for revoking their operation permits and adopting plans to stop their operation and transfer the permission for direct electricity sale to rural consumers to power companies.

2. Daily-life electricity wholesale prices applicable to rural areas are as follows:

The daily-life electricity wholesale price applicable to rural areas means the price of electricity sold at a general electric meter by a power company or authorized EVN-attached unit to rural electricity retailers. The principles for determining the number of electricity consuming households after each general electric meter are detailed at Point b, Clause 1, Section IV of the Appendix to this Circular.

3. The wholesale price of electricity for other purposes is VND 865/kWh.

Article 9. Electricity wholesale prices applicable to condominiums and residential clusters

1. Conditions for application:

Electricity wholesale prices for condominiums and residential clusters are applied to electricity retailers which fully meet the conditions specified in Article 4 of this Circular and install general electric meters at transformer stations or at the shunting connections of low-voltage transmission lines.

After August 31, 2009, if electricity retailers fail to meet the above conditions, provincial-level Industry and Trade Services shall submit to provincial-level People’s Committees for approval plans to stop their operation and transfer the permission for direct electricity sale to consumers to power companies and report to the Electricity Regulatory Authority of Vietnam for revocation of operation permits of violators.

2. Daily-life electricity wholesale prices applicable to condominiums and residential clusters are as follows:

The daily-life electricity wholesale price applicable to condominiums and residential clusters means the price of electricity sold at a general electric meter by a power company or authorized unit to retailers of electricity for condominiums and residential clusters. The principles for determining the number of electricity consuming households after each general electric-meter are detailed at Point b, Clause 1, Section V of the Appendix to this Circular.

Daily-life electricity wholesale prices applicable to highrise buildings of new urban centers equal respective progressive retail price levels specified in Article 15 of this Circular deducted by 3%.

3. Electricity wholesale prices for other purposes applicable to condominiums and residential clusters are as follows:

Article 10. Electricity wholesale prices applicable to industrial parks

1. The electricity wholesale price at the 110 kV busbars of 110kV transformer stations in industrial parks is applied to electricity buyers who buy electricity at the 110 kV busbars of industrial parks (110kV stations invested by buyers) for retail to consumers at medium-voltage transformer stations in industrial parks as follows:

2. The wholesale price of electricity sold at medium-voltage busbars of 110/35-22-10-6 kV transformer stations or at shunting connections of medium-voltage transmission lines to industrial parks by power companies to electricity buyers equals the retail electricity price applicable to manufacturing industries at the corresponding medium voltage under Article 11 of this Circular deducted by 2%.

3. The wholesale price of electricity sold by power companies to buyers at the medium-voltage side of low-voltage transformer stations equals the electricity retail price applicable to manufacturing industries at the corresponding medium-voltage under Article 11 of this Circular.

Chapter III.

ELECTRICITY RETAIL PRICE TABLES

Article 11. Electricity retail prices applicable to manufacturing industries

Electricity retail prices applicable to manufacturing industries are as follows:

Article 12. Electricity retail prices applicable to irrigation activities

Electricity retail prices applicable to irrigation activities are as follows:

Article 13. Electricity retail prices applicable to administrative and non-business units

Electricity retail prices applicable to administrative and non-business units are as follows

Article 14. Electricity retail prices applicable to business activities

Electricity retail prices applicable to business activities are as follows:

Article 15. Progressive electricity retail prices applicable to daily life activities

Electricity retail prices applicable to daily life activities are as follows:

Article 16. Electricity retail prices applicable to areas not yet connected with the national power grid

Electricity retailers shall elaborate power grid development investment projects and retail pricing schemes and submit them to provincial-level Industry and Trade Services for evaluation and subsequent submission to provincial-level People’s Committees for approval. Before issuing an approval decision, a provincial-level People’s Committee shall submit the entire detailed scheme to the Electricity Regulatory Authority of Vietnam for consideration and written comment.

Chapter IV.

ORGANIZATION OF IMPLEMENTATION

Article 17. Examination responsibilities

1. Provincial-level Industry and Trade Services shall examine and supervise local units retailing electricity to rural households and households in condominiums and residential clusters in complying with the electricity retail price mechanism under this Circular. When detecting retailers failing to meet the prescribed conditions, provincial-level Industry and Trade Services shall report them to provincial-level People’s Committees for withdrawal of their operation permits granted by provincial-level People’s Committees or for report to the Ministry of Industry and Trade for withdrawal of permits granted by the Ministry in order to stop operation of violators and transfer the permission for direct electricity sale to consumers to power companies.

2. Provincial-level Industry and Trade Services shall report to provincial-level People’s Committees and collaborate with power companies in working out plans on and modes of transfer of power grids of retailers of electricity for rural areas and condominiums and residential clusters that fail to meet the prescribed conditions to power companies.

Article 18. Effect

1. This Circular takes effect on March 1, 2009, and replaces the Industry Ministry’s Circular No. 11/2006/TT-BCN of December 20, 2006, guiding the application of electricity sale prices; and Decision No. 45/2005/QD-BCN of December 14, 2006, on electricity wholesale prices applicable to rural areas and condominiums and residential clusters; and the Industry and Trade Ministry’s Decision No. 15/2007/QD-BCT of December 31, 2007, promulgating the electricity wholesale price bracket applicable to industrial parks.

The Ministry of Industry and Trade’s Document No. 3623/BCT-DTDL of March 5, 2008, on electricity wholesale prices applicable to Nhon Trach industrial park is annulled.

2. The director of the Electricity Regulatory Authority of Vietnam, the director of the Office and the Chief Inspector of the Ministry, directors of provincial-level Industry and Trade Services, the general director of EVN, directors of power companies, electricity units and concerned organizations and individuals shall implement this Circular.

APPENDIX

(To the Industry and Trade Ministry’s Circular No. 05/2009/TT-BCT of February 26, 2009)

I. GENERAL PROVISIONS

1. Electricity sale prices shall be applied to proper subjects for proper consumption purposes under this Circular.

Electricity buyers shall truthfully declare electricity consumption purposes for calculation of electricity sale prices under this Circular.

When an electricity buyer changes the electricity consumption purpose which results in a change in electricity sale prices, this buyer shall notify the seller 15 days in advance for adjusting prices under contracts accordingly. Electricity sellers shall examine and promptly apply electricity sale prices to proper subjects according to regulations.

In case of improper application of prices causing damage to electricity buyers or sellers, electricity charges shall be retrospectively collected or refunded. When it is impossible to determine the time of improper application of prices, such time is calculated as 12 months back from the time of detecting the improper application of prices.

2. For buyers consuming electricity for different purposes:

a/ For electricity wholesale to rural areas, condominiums and residential clusters in cities, towns, townships and districts: Before September 1, 2009, buyers and sellers shall reach agreement on the rate of electricity consumed for other purposes at the general electric meter as a basis for calculating electricity charges. Past this time limit, electricity buyers shall install separate meters for electricity retail to electricity consumers for other purposes.

b/ For electricity wholesale to highrise buildings of new urban centers in cities for consumption purposes different from those for condominiums and residential clusters, electricity buyers shall install separate electric meters for retail to daily-life electricity consumers.

c/ For daily-life electricity consumers under contracts who also use electricity for other purposes (production, business), the progressive retail price of daily-life electricity is applied to the entire electricity output measured at the meter.

d/ For electricity consumers of non-daily-life purposes (production, business) at an electric meter, buyers and sellers shall, based on the actual electricity consumption, reach agreement on specific electricity consumption rates for each purpose.

3. On March 1, 2009, electricity sellers shall finalize readings of all electric meters operating on the power grid (except those for daily-life electricity retail).

The finalization of readings of three-price electric meters, meters of special-purpose stations and general meters for electricity wholesale for rural areas and condominiums and residential clusters must be certified by representatives of electricity consumers or witnesses.

II. ELECTRICITY SALE PRICES BASED ON CONSUMPTION TIME DURING THE DAY

1. Electricity sale prices under the three-price system apply to the following cases:

a/ Buyers consuming electricity supplied through special-purpose transformers of 25 kVA or higher for production, business and service activities or consuming an average 2,000 kWh/month or higher for three consecutive months.

b/ Buyers consuming electricity to irrigate rice and secondary crops and short-term industrial crops grown together with rice and secondary crops.

c/ Buyers consuming electricity for production, business and service activities who have transformers and consume electricity under the above level are encouraged to buy electricity under the three-price system.

Electricity sellers shall create conditions for and guide electricity buyers in installing three-price electric meters.

2. Electricity sellers shall ensure adequate electric meters for installation for buyers subject to the three-price system. During the time sellers are unable to install three-price electric meters, electricity sale prices for off-peak hours apply.

For existing three-price electric meters:

a/ By May 31, 2009, electricity sellers shall reset time indicators of electronic electric meters under Article 3 of this Circular for application of prescribed prices.

b/ During the time indicators are not reset, peak, low and off-peak hours under the Industry Ministry’s Circular No. 11/2006/TT-BCN of December 20, 2006, temporarily apply.

3. When electricity sellers are able to install three-price electric meters, they shall notify in writing buyers subject to the three-price system of plans to install electric meters. Buyers shall collaborate with sellers in such installation.

When an electricity buyer subject to the three-price system refuses the installation of three-price electric meters after being notified thrice by the seller, within 15 days from the date of the third notification, the seller may apply the electricity sale price applicable to peak hours for the buyer’s whole electricity consumption output until a three-price electric meter is installed.

4. When an electricity buyer subject to the three-price system who shares an electric meter with consumers not subject to the three-price system, such buyer shall collaborate with the seller in installing separate electric meters for those consumers who shall sign direct contracts with the seller for application of proper prices.

III. CONSUMER-BASED ELECTRICITY RETAIL PRICES

1. Electricity sale prices applicable to manufacturing industries

The for-production electricity price table applies to all buyers who consume electricity for production in the following industries:

a/ Industry;

b/ Construction; transport; mining; forestry; fisheries;

c/ Agriculture: cultivation (including irrigation of industrial and fruit crops under areas free from irrigation charge, and lighting for raising fruit crop productivity); cattle raising, aquaculture and other animal raising; production of preservatives and drugs for epidemic control;

d/ Production of safe water for daily life, production and business activities;

e/ Warehouses of goods (raw materials, finished products, semi-finished products) in the production process;

f/ Producers and suppliers of public-utility products and services (for the electricity output used for public-utility activities) except public lighting and management and operation of irrigation works;

g/ Drainage pumping and treatment of wastewater in cities and towns;

h/ Relay stations of telecommunications companies;

i/ Other production activities.

2. Electricity sale prices applicable to irritation activities

The for-irrigation electricity sale price table applies to buyers who use electricity to irrigate areas under rice and secondary crops and short-term industrial crops grown together with rice and secondary crops, which are subject to or exempt from irrigation charges.

3. Electricity sale prices applicable to administrative and non-business units

a/ The electricity sale price for hospitals, kindergartens, preschools and general education schools applies to the following subjects:

- Public and private kindergartens, preschools, primary and lower and upper secondary schools, continuing education centers (for general knowledge teaching), and ethnic minority boarding schools;

- Hospitals (including electricity output for funeral parlors and hospital waste incineration); healthcare establishments (including electricity output for medical examination and treatment activities of preventive medicine centers); sanatoriums, functional rehabilitation establishments and occupational disease treatment establishments; drug detoxification establishments; offices for consultancy on drug detoxification, HIV/AIDS prevention and control, and family planning.

b/ Electricity sale prices for public lighting apply to buyers who consume electricity for the following purposes:

Lighting of streets, parks and lanes; temples, pagodas, churches and houses of the religious; ranked historical relics; fallen hero cemeteries; condominiums or stairs of condominiums;

Electricity for operating lifts of residential buildings; pumping daily-life water for condominiums and residential clusters.

c/ Electricity sale prices for administrative and non-business agencies apply to buyers being:

State administrative agencies; non-business units; armed forces units; political organizations, socio-political organizations; professional associations;

- Embassies, diplomatic agencies, represen­tative offices of (non-business) international organizations;

- Media units; sports training centers; radio and television stations; culture and information centers, sporting event halls; museums, memorial houses, exhibition centers, funeral parlors, crematoria;

- Offices and headquarters of business groups, corporations and production and business management companies;

Budget-funded sections of fairs, marketplace management boards and guesthouses under administrative agencies. Electricity buyers shall provide legal documents on their budget fund use for use as a basis for determining price rates;

For example: Guesthouse A is a unit of a state agency. Electricity consumed by the guesthouse’s section operating with funds from the state agency is entitled to the sale price applicable to administrative and non-business agencies while electricity for business activities is subject to the sale price applicable to business and services.

- Health insurance and social insurance agencies;

- Research and planning agencies; public and private universities, colleges and vocational training schools (except those specified in Clause a, Point 3 of this Section);

Central and local book and newspaper distributors, school and medical equipment suppliers, charity organizations;

Storehouses with the national reserve function as prescribed by competent authorities under and not under the National Reserve Department;

- Non-profit social policy banks;

- Offices of irrigation work management and exploitation agencies;

Offices of state-funded project management units.

The electricity output for goods production activities (if any) of administrative agencies and non-business units is subject to the sale price applicable to production; while that for business and service activities (if any) is subject to the sale price applicable to business.

4. Progressive retail prices of daily-life electricity

a/ The progressive retail price of daily-life electricity applies to households buying electricity for daily life under direct contracts with electricity sellers.

Example of calculating monthly electricity charges:

Case 1: The electricity buyer consumes 40 kWh in a month.

The charge payable by the electricity buyer is VND 26,400, including:

- Electricity charge: 40 kWh x VND 600/kWh = VND 24,000

- Value-added tax (10%) = VND 2,400

Case 2: The electricity buyer consumes 445 kWh in a month

The charge payable by the electricity buyer is VND 683,430, including:

- The first 50 kWh: 50 kWh x VND 600/kWh = VND 30,000

- The subsequent 50 kWh: 50 kWh x VND 865/kWh = VND 43,250

- The subsequent 50 kWh: 50 kWh x VND 1,135/kWh = VND 56,750

- The subsequent 50 kWh: 50 kWh x VND 1,495/kWh = VND 74,750

- The subsequent 100 kWh: 100 kWh x VND 1,620/kWh = VND 162,000

- The subsequent 100 kWh: 100 kWh x VND 1,740/kWh = VND 174,000

- The subsequent 45 kWh: 45 kWh x VND 1,790/kWh = VND 80,550

Total = VND 621,300

Value-added tax (10%) = VND 62,130

b/ The progressive electricity sale price applies to an electricity buyer comprising households (with separate permanent residence registration books) sharing an electric meter on the principle that the common progressive price for the buyer equals the electricity consumption output set in the electricity sale price bracket multiplied by the number of households sharing the electric meter.

For example: For an electricity buyer comprising 4 households buying electricity through an electric meter, the progressive electricity retail price applies as follows:

The VND 600/kWh price applies to the first 200 kWh (50 kWh x 4 households)

The VND 865/kWh price applies to the subsequent 200 kWh (50 kWh x 4 households)

The VND 1,135/kWh price applies to the subsequent 200 kWh (50 kWh x 4 households)

The VND 1,495/kWh price applies to the subsequent 200 kWh (50 kWh x 4 households)

The VND 1,620/kWh price applies to the subsequent 400 kWh (100 kWh x 4 households)

The VND 1,740/kWh price applies to the subsequent 400 kWh (100 kWh x 4 households)

The VND 1,790/kWh price applies to the 1,601st kWh onward

c/ An electricity buyer being a household which has several contracts to buy daily-life electricity (with a separate electric meter under each contract) and consumes electricity in one place is considered as one (01) consumer and is subject to the progressive price for the entire electricity output indicated in all electric meters of that consumer.

d/ The progressive daily-life electricity retail price applies to consumers buying daily-life electricity through separate transformers.

e/ A house lessor’s conclusion of contracts to buy daily-life electricity complies with the following regulations:

The house lessor shall produce papers evidencing his/her lawful house business or lease;

For each leased house address, the electricity seller shall sign only one contract.

When the lessee is a household, the lessor shall directly sign or authorize the lessee to sign the contract (with electricity charge payment guarantee by the house lessor).

- When the lessee is students or laborers leasing houses for 12 months or more, the lessor shall directly sign or authorize the representative of the students or laborers to sign the contract (with electricity charge payment guarantee by the house lessor). In this case, every 4 persons (based on long-term residence registrations) are calculated as a household for application of the progressive daily-life electricity retail price. For those leasing houses for less than 12 months, the house lessor shall directly sign the contract.

f/ In force majeure circumstances leading to electricity sellers’ change of the time of recording readings, the electricity consumption norm of each daily-life electricity sale price shall be adjusted according to the remaining days of the reading recording period after such change.

g/ When the date of recording readings does not coincide with the date of an electricity price adjustment, progressive daily-life electricity charges shall be calculated by the interpolate method using the following parameters:

The actual electricity output consumed during the reading recording period;

- The actual number of days consuming electricity (the number of days between the two reading recording dates, and numbers of days subject to the application of the old and new prices);

- The consumed electricity of each price calculated according to the actual number of days between two reading recording dates.

5. Electricity sale prices applicable to business activities

For-business electricity sale prices apply to buyers who consume electricity for business and service activities, including:

a/ Enterprises, service shops, supermarkets, fairs, material and goods wholesalers and retailers, including traders of pesticides, veterinary drugs, plant varieties and animal breeds;

b/ Monetary and securities dealers: commercial banks, savings funds, financial companies and securities companies;

c/ Cable television and terrestrial digital television companies;

d/ Lottery companies of all economic sectors;

e/ Insurance institutions (other than social and health insurance);

f/ Tourism establishments, photo studios, dance halls, karaoke bars, massage service shops;

g/ Eateries, cafes, hairdressing shops, laundries, tailor shops, car and motorbike washing shops;

h/ Advertising activities (including advertising activities of television stations) as ordered by producers, traders and service providers;

i/ Repairers and renovators of automobiles, motorbikes, means of transport, consumer goods and home appliances;

j/ Hotels, inns, guesthouses of organizations and individuals; leased offices for which house owners sign contracts to buy electricity;

k/ Electricity for ticket offices, goods forwarding stations, lounges, shops and stalls of airports, railway stations, car terminals, ports;

l/ Electricity for toll booths, car keeping grounds;

m/ Electricity for warehouses of goods in circulation;

n/ Offices and headquarters of business groups, corporations and business and service management companies;

o/ Customer services offices and centers; consultancy units;

p/ Business sections of units operating in the culture, arts and physical training-sports domains, culture and information centers sporting event halls, museums and exhibition centers;

q/ Physical training and sports facilities, such as swimming pools, tennis courts, golf courses;

r/ Theaters, performance companies; film companies and cinemas; circuses;

s/ Communication and post activities (except universal and compulsory post services which are public services), and telecommunications activities (except relay stations of telecommunications companies).

IV. ELECTRICITY SALE PRICES APPLICABLE TO RURAL AREAS

1. Electricity wholesale prices applicable to rural areas

a/ The electricity wholesale price applicable to rural areas means the price of electricity sold by power companies to rural electricity traders.

b/ Daily-life electricity wholesale prices applicable to rural areas:

The daily-life electricity wholesale price under Clause 2, Article 8 of this Circular applies to the electricity output consumed for daily life activities of households in communes, villages and hamlets buying electricity through general electric meters installed at transformer stations, regardless of owners of transformer stations and voltages.

The progressive electricity wholesale price under Clause 2, Article 8 of this Circular applies to the electricity output bought at a general electric meter on the principle that the total electricity output for each level for calculating electricity charges equals the output for each level set at the price table multiplied by the number of households buying electricity from that general electric meter.

The number of households consuming daily-life electricity after a general electric meter means the number of households which register permanent residence or long-term temporary residence and sign electricity trading contracts within the scope of electricity supply from the general electric meter certified by commune-level People’s Committees.

c/ Electricity wholesale prices for other purposes:

The electricity wholesale price for other purposes applicable to rural areas under Clause 3, Article 8 of this Circular applies to the electricity output consumed for purposes other than daily-life activities and irrigation of rice and secondary crops and intermingled industrial crops.

Before September 1, 2009: Electricity buyers and sellers may reach agreement on the application of the electricity wholesale rate for other purposes in calculating the daily-life electricity wholesale output at general electric meters. After that deadline, rural electricity retailers shall install electric meters for all buyers who consume electricity for other purposes.

d/ The electricity output sold at the daily-life electricity wholesale price equals the total output measured at general electric meter subtracted by the total commercial electricity output consumed for other purposes multiplied by 1.1 (the after-general-meter power loss rate of low-voltage grids is 10%).

For example: The general electric meter at a transformer station supplying electricity for a village of 200 households who consume electricity for daily life reads 95.200 kWh in a month. Apart from these households, within the electricity supply after the general electric meter, a number of households consumes electricity for other purposes (production, business), which have separate electric meters with the total electricity output measured at 10,000 kWh in the month. The electricity charge payable by the rural electricity retailer to the power company for the output measured at the general electric meter is calculated as follows:

e/ Within 3 days from the date of recording readings at the general electric meter of a payment period, a rural electricity retailer shall supply the electricity seller a sheet of commercial electricity output for consumers for other purposes and the list of consumers buying electricity after the general electric meter certified by the lawful representative of these buyers for calculating electricity charges. Past this time limit, if the electricity buyer fails to fully supply the above documents, the seller may apply the daily-life electricity wholesale price for between the 101st and 150th kWh for the entire electricity output sold through the general electric meter.

f/ When it is impossible to identify electricity consumers and separately measure electricity output of each consumer at transformer stations of agricultural or forestry farms which supply electricity for both farm workers and farmers, the daily-life electricity wholesale price for rural areas applies to the total measured electricity output.

2. Electricity retail prices applicable to rural areas

Except the cases under Clause 2, Article 4 of the Prime Minister’s Decision No. 21/2009/QD-TTg of February 12, 2009, the electricity retail price applicable to rural areas is as follows:

a/ The progressive daily-life electricity retail price applicable to rural areas complies with the price table specified in Article 15 of this Circular.

b/ The electricity retail price applicable to production, irrigation and drainage pumping, administrative-non-business and business units in rural areas complies with the electricity retail price table for corresponding purposes at the voltage of under 6 kV in off-peak hours under Articles 11, 12, 13 and 14 of this Circular.

V. ELECTRICITY SALE PRICES APPLICABLE TO CONDOMINIUMS AND RESIDENTIAL CLUSTERS

1. Electricity wholesale prices applicable to condominiums and residential clusters

a/ The electricity wholesale price applicable to condominiums and residential clusters specified in Article 9 of this Circular means the wholesale price of electricity sold at a general electric meter by power companies to electricity retailers for resale to residential clusters, condominiums of agencies, companies, enterprises, plants, construction sites, farms, forestry farms, stations, facilities and markets or hamlets, villages and communes ineligible for electricity wholesale for rural areas.

b/ Daily-life electricity wholesale prices applicable to condominiums and residential clusters

The daily-life electricity wholesale price for condominiums and residential clusters under Clause 2, Article 9 of this Circular applies to the daily-life electricity output of consumers buying electricity from general electric meters installed at transformer stations, regardless of voltages.

The progressive electricity wholesale price under Clause 2, Article 9 of this Circular applies to the electricity output purchased at the general electric meter on the principle that the electricity output for each level for calculating electricity charges equals the electricity norm set for each level in the electricity price table multiplied by the number of households supplied with electricity from that general electric meter.

The number of electricity consumers in condominiums and residential clusters after a general electric meter means the total number of households having permanent or long-term residence registration books and signing electricity trading contracts within the scope of electricity supply of the general electric meter, which are certified by commune-level People’s Committees.

For condominiums, 4 residents are calculated as a household as a basis for calculating the progressive daily-life electricity norms.

c/ The daily-life electricity wholesale price at the level of between the 101st and 150th kWh for the respective area under Clause 2, Article 9 of this Circular applies to the daily-life electricity wholesale price for condominiums for pupils, students and armed forces units, sanatoria for the aged or the disabled and orphanages.

d/ Electricity wholesale prices for other purposes applicable to condominiums and residential clusters

The electricity wholesale price for condominiums and residential clusters under Clause 3, Article 9 of this Circular applies to the electricity output consumed for non-daily life purposes.

Electricity retailers shall install electric meters for all buyers who consume electricity for other purposes.

For buyers consuming electricity after a general electric meter for other purposes (business, production, administrative and non-business), the electricity output to be sold at the daily-life electricity wholesale price for condominiums and residential clusters equals the total electricity output measured at the general electric meter subtracted by the total commercial electricity output consumed for other purposes multiplied by 1.1 (the low-voltage power loss rate after the general electric meter is 10%).

For highrise buildings in new urban centers, the electricity output calculated for wholesale for other purposes at the general electric meter equals the output measured at the general electric meter subtracted by the total commercial daily-life electricity output multiplied by 1.02 (the low-voltage power loss rate after the general electric meter is 2%).

For example: The general electric meter at a transformer station (invested by an electricity retailer) supplies electricity for a residential cluster of 50 households (in a town) for daily life consumption. The electricity output measured at the general electric meter for a month is 25,200 kWh. Apart from these households, within the scope of electricity supply after this general electric meter, some other households use electricity for other purposes (production, business) and have separate electric meters with the total electricity output measured at 2,000 kWh in the month. Electricity charges payable by the electricity retailer to the power company for the output measured at this general electric meter are calculated as follows:

e/ Within 3 days from the date of recording readings at the general electric meter for a payment period, a rural electricity retailer shall provide the electricity seller with an invoice or a sheet of commercial electricity output consumed for other purposes and the list of buyers consuming electricity after the general electric meter certified by the lawful representative of those buyers for calculating electricity charges. Past this time limit, if the electricity buyer fails to fully supply the above documents, the seller may apply the daily-life electricity wholesale price for the level from the 101st to 150th kWh for the entire electricity output sold through the general electric meter.

For highrise buildings in new urban centers, within 3 days from the date of recording readings at the general electric meter for a payment period, an electricity retailer shall provide the seller with an invoice or a sheet of commercial electricity output consumed for other purposes and the list of retail buyers of electricity certified by the lawful representative of those buyers for calculating electricity charges. Past this time limit, if the electricity buyer fails to fully supply the above documents, the seller may apply the daily-life electricity wholesale price at the level from the 201st to 300th kWh for the entire electricity output sold through the general electric meter.

f/ Electricity traders in localities, which are transformed from rural areas into townships, towns or cities, or from townships into cities or towns under decisions of competent authorities, may temporarily apply the electricity price table applicable to former localities. The temporary application duration does not exceed 6 months from the date of issuance of the decisions on administrative boundary adjustment.

For example: Communes A, B and C are transformed into wards of a district of a city on April 15, 2009, under the decision of a competent authority. By October 15, 2009, electricity traders in these communes shall apply the electricity wholesale price table for condominiums and residential clusters of cities and towns to these former rural areas.

2. Electricity retail prices applicable to condominiums and residential clusters

The electricity retail price for condominiums and residential clusters applies as follows:

a/ The progressive daily-life electricity retail price for condominiums and residential clusters complies with the price table specified in Article 15 of this Circular;

b/ The electricity retail prices applicable to production, administrative and non-business and business activities in condominiums and residential clusters comply with the respective retail price tables at the voltage of under 6 kV in off-peak hours under Articles 11, 13 and 14 of this Circular.

VI. ELECTRICITY SALE PRICES APPLICABLE TO INDUSTRIAL PARKS

1. Electricity wholesale prices applicable to industrial parks

a/ The wholesale price of electricity sold by a power company to electricity management and trading units in industrial park complies with Article 10 of this Circular.

b/ The electricity wholesale price under Clause 1, Article 10 of this Circular applies to industrial parks when the electricity buyer invests in 110kV transformer stations and medium-voltage transmission lines in industrial parks for sale to buyers consuming electricity at the medium-voltage side of consumer transformer stations. The electricity wholesale price applicable to each 110/35-22-10-6kV transformer station is determined by comparing with the total capacity of the 110kV transformer of the station.

For example: The electricity management and trading unit of industrial park A buys electricity at the 110kV busbar of the 110/22kV transformer station from seller B for resale to electricity consumers in the industrial park at the voltage of 22kV; the 110/22kV station comprises two transformers with a capacity of 40MVA each. The station’s total capacity is 2 x 40 MVA = 80 MVA.

The prices are as follows:

The electricity management and trading unit of industrial park A sells electricity to production households at the industrial park at the 22 kV voltage at:

c/ The electricity wholesale price under Clause 2, Article 10 of this Circular applies when the electricity management and trading unit of an industrial park buys electricity at the medium-voltage busbar of the 110/35-22-10-6 kV transformer station or the shunting connection of the medium-voltage transmission line from the seller for retail to consumers in the industrial park at the medium-voltage side of the 35-22-10-6 kV/0.4 kV transformer station:

The seller shall sell electricity to the buyer at the general electric meter at the electricity retail price applicable to manufacturing industries under Article 11 of this Circular at the respective voltage deducted by 2%. The electricity output for calculating the deducted price is based on the actual output measured at the general electric meter.

For example: The electricity management and trading unit of industrial park A buys electricity at the 22kV busbar of the 110/22kV transformer station from seller B for resale to consumers in the industrial park at the 22kV side of 22/0.4kV transformer stations:

The electricity price payable by the electricity management and trading unit of industrial park A to the seller is as follows:

The electricity management and trading unit of industrial park A sells electricity to consumers in the industrial park at the 22 kV voltage at the following retail prices:

d/ The electricity wholesale price under Clause 3 Article 10 of this Circular applies when the electricity management and trading unit of an industrial park buys electricity at the medium-voltage side of 35-22-10-6/0.4 kV transformer stations from the seller for retail sale to consumers in the industrial park at the voltage of 0.4 kV:

The electricity wholesale price complies with the sale prices at the respective medium voltages applicable to manufacturing industries under Article 11 of this Circular.

For example: The electricity management and trading unit of industrial park A buys electricity at the voltage of 22kV from the seller for resale to consumers in the industrial park at the voltage of 0.4 kV:

The electricity price payable by the electricity management and trading unit of industrial park A to the seller is as follows:

2. Electricity retail prices applicable to electricity consumers in industrial parks

a/ Electricity retail prices applicable to electricity consumers in industrial parks must apply to proper subjects at proper prices specified in Chapter II of this Circular.

b/ When electricity management and trading units of industrial parks have separate power sources or have separate power sources and at the same time buy electricity from the national power grid for direct sale to consumers in industrial parks, these units shall elaborate electricity retail prices applicable to consumers in industrial parks and submit them to provincial-level People’s Committees for approval after obtaining opinions from the Electricity Regulatory Authority of Vietnam.