Circular No. 08/2010/TT-BCT dated February 24, 2010 of the Ministry of Industry and Trade providing 2010 electricity sale prices and guiding their application

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Circular No. 08/2010/TT-BCT dated February 24, 2010 of the Ministry of Industry and Trade providing 2010 electricity sale prices and guiding their application
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Official number:08/2010/TT-BCTSigner:Do Huu Hao
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Issuing date:24/02/2010Effect status:
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THE MINISTER OF INDUSTRY AND TRADE
-------

SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
----------

No. 08/2010/TT-BCT

Hanoi, February 24, 2010

 

CIRCULAR

PROVIDING 2010 ELECTRICITY SALE PRICES AND GUIDING THEIR APPLICATION

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 2010-2012;

Pursuant to the Government Office's Notice No. 50/TB-VPCP of February 12, 2010, on the Prime Minister's concluding opinions on the scheme on 2010 electricity prices;

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

The Ministry of Industry and Trade prescribes 2010 electricity sale prices and guides their application as follows:

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation and subjects of application

1. This Circular prescribes electricity wholesale and retail prices in 2010 and guides their application.

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 obtaining written opinions from the Electricity Regulatory Authority of Vietnam.

Article 2. Average electricity sale price

The average electricity sale price in 2010 is VND 1.058/kWh (exclusive of value-added tax) corresponding to specific calculation parameters in Part B of the Appendix to this Circular.

Article 3. 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 4. 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) as follows:

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 load hours:

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

Article 5. Conditions for application of electricity wholesale prices

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

a/ Possessing an electricity distribution and retail permit granted by a competent agency, except cases of exemption from licensing for power operation under Point c. Clause 1. Article 34 of the Electricity Law:

b/ Keeping accounting books under regulations, which account electricity retail sales separately;

c/ Having electricity trading contracts, installing separate electric meters for each household under Article 24 of the Electricity Law; issuing electricity bills to each consumer for each payment period under electricity trading contracts according to the Finance Ministry's regulations.

Article 6. 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 the price tariff is provided in Part A of the Appendix to this Circular.

3. The price tariff applies from March 1.2010.

Chapter II

ELECTRICITY WHOLESALE PRICES

Article 7. Electricity wholesale prices applicable to power corporations

1. Electricity of Vietnam's (the Electricity Purchase and Trading Company) average electricity wholesale price applicable to power corporations at points of delivery is VND 718.1/ kWh, covering:

a/ The average electricity production cost to the point of delivery (including costs of electricity generation, imported electricity and transmission loss): VND 710/kWh.

b/ The average expense for regulating the electricity system, administering and operating the electricity market, and support services and sectoral management: VND 8.1/kWh.

2. The average cost of electricity transmission to the point of delivery corresponding to the electricity output through transmission grids from the electricity distribution grid to the point of delivery: VND 80.4/kWh.

3. Before April 15, 2010, Electricity of Vietnam (EVN) shall, based on the price level specified in Clause 1 of this Article, set adjusted electricity wholesale prices applicable to each power corporation and cross compensation among power corporations on the principle of ensuring the ratio of profit to equity for each power corporation at the level under the approved 2010 electricity pricing scheme and report them to the Electricity Regulatory Authority of Vietnam.

When EVN's determination of adjusted electricity wholesale prices applicable to each power corporation and cross compensation fails to adhere to the prescribed principle and match calculation parameters, within 15 days, the Electricity Regulatory Authority of Vietnam shall make a written request for EVN to suspend the price application and make justifications and recalculations.

4. In applying 2010 electricity sale prices, if profits from electricity generation, transmission and distribution fail to reach the level estimated under the approved 2010 pricing scheme, prior to December 15. 2010, EVN shall make and submit an adjustment report to the Electricity Regulatory Authority of Vietnam for consideration and approval for application.

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 5 of this Circular for the wholesale of electricity output at general electric meters installed at transformer stations.

Provincial-level Industry and Trade Departments shall report on rural electricity retailers that fail to meet the above conditions to provincial-level People's Committees for revoking their operation permits and transferring to power companies for direct electricity sale to rural consumers.

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

No.

A rural household's average monthly consumption level after a general electric meter

Electricity sale price (VND/kWh)

1

First 50 kWh

432

2

From the 51st to 100 st kWh

753

3

From the 101 st to 150 st  kWh

886

4

From the 151 st to 200 st kWh

1,227

5

From the 201 st to 300 st kWh

1,326

6

From the 301 st to 400 st kWh

1,420

7

From the 401 st kWh onward

1,455

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

3. The wholesale price of electricity for irrigation at a general electric meter for electricity wholesale in rural areas is VND 703/kWh.

4. The wholesale price of electricity for other purposes (other than for daily-life and irrigation activities) at a general electric meter for electricity wholesale in rural areas is VND 1,010/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 5 of this Circular and install general electric meters at transformer stations or at the shunting connections of low-voltage transmission lines.

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

No

A household's average monthly consumption level after a general electric meter

Electricity sale price (VND/kWh)

1

For cities and towns

 

a/

For transformer stations invested by electricity buyers

 

 

First 50 kWh

552

 

From the 51st  to 100th kWh

889

 

From the 101st to 150th kWh

1,062

 

From the 151st to 200th kWh

1,419

 

From the 201st to 300th kWh

1,533

 

From the 301st to 400th kWh

1,641

 

From the 401st kWh onward

1,682

b/

For transformer stations invested by electricity sellers

 

 

First 50 kWh

540

 

From the 51st to 100th kWh

914

 

From the 101st to 150th kWh

1,099

 

From the 151st to 200th kWh

1,466

 

From the 201st to 300th kWh

1,584

 

From the 301st to 400th kWh

1,696

 

From the 401st kWh onward

1,739

2.

For townships and districts

 

a/

For transformer stations invested by electricity buyers

 

 

First 50 kWh

489

 

From the 51st to 100th kWh

843

 

From the 101st to 150th kWh

1,008

 

From the 151st to 200th kWh

1,331

 

From the 201st to 300th kWh

1,438

 

From the 301st to 400th kWh

1,540

 

From the 401st kWh onward

1,578

b/

For transformer stations invested by electricity sellers

 

 

First 50 kWh

507

 

From the 51st to 100th kWh

863

 

From the 101st to 150th kWh

1,032

 

From the 151st to 200th kWh

1,379

 

From the 201st to 300th kWh

1,490

 

From the 301st to 400th kWh

1,595

 

From the 401st kWh onward

1,635

The daily-life electricity wholesale price applicable to condominiums and residential clusters is the price of electricity sold at a general electric meter by a power company or an authorized unit to retailers of electricity for condominiums and residential clusters.

The daily-life electricity wholesale price applicable to high-rise buildings in cities and new urban centers equals the respective progressive retail price level under Article 15 of this Circular deducted by 2.5%.

The principles for determining the number of electricity consumer households after each general electric meter are specified at Point b. Clause 1, Section V, Part A of the Appendix to this Circular.

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

No.

Area

Electricity sale price (VND/kWh)

I

Cities (except high-rise buildings in cities and new urban centers), towns, townships, districts (regardless of voltage level)

1.020

II

High-rise buildings in cities and new urban centers

 

1

Voltage level of 22 kV or higher

1.574

2

Voltage level of between 6 kV and under 22 kV

1.687

3

Voltage level of under 6 kV

1.763

Article 10. Electricity wholesale prices applicable to industrial parks

1. The electricity wholesale price at 110 kV busbars of 110kV transformer stations in industrial parks applies to buyers of electricity at 110kV busbars of industrial parks (1105V stations invested by buyers) for retail to consumers in industrial parks as follows:.

No.

Total capacity of transformers of 110/35-22-10-6 kV transformer stations

Electricity sale price

(VND/kWh)

1.

> 100 MVA

 

 

a/ Off-peak hours

875

 

b/ Low load hours

483

 

c/ Peak hours

1,714

2

Between 50 MVA and

 

 

100 MVA

 

 

a/ Off-peak hours

871

 

b/ Low load hours

479

 

c/ Peak hours

1,706

3

< 50 MVA

 

 

a/ Off-peak hours

859

 

b/ Low load hours

473

 

c/ Peak hours

1,686

2. The wholesale price of electricity sold by power companies to retailers 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 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 retailers 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 TARIFFS

Article 11. Electricity retail prices applicable to manufacturing industries

Electricity retail prices applicable to manufacturing industries are as follows:

No.

Subjects of application of prices

Electricity sale price (VND/kWh)

1

Voltage level of 110 kV or higher

a/ Off-peak hours

898

 

b/ Low load hours

496

 

c/ Peak hours

1,758

2

Voltage level of between 22 kV and under 110 kV

 

 

a/ Off-peak hours

935

 

b/ Low load hours

518

 

c/ Peak hours

1,825

3

Voltage level of between 6 kV and under 22 kV

 

 

a/ Off-peak hours

986

 

b/ Low load hours

556

 

c/ Peak hours

1,885

4

Voltage level of under 6 kV

 

 

a/ Off-peak hours

1,023

 

b/ Low load hours

589

 

c/ Peak hours

1,938

Article 12. Electricity retail prices applicable to irrigation activities

Electricity retail prices applicable to irrigation activities are as follows:

No.

Voltage level

Electricity sale price (VND/kWh)

1

6 kV or higher

 

 

a/ Off-peak hours

690

 

b/ Low load hours

281

 

c/ Peak hours

1,269

2

Under 6 kV

 

 

a/ Off-peak hours

717

 

b/ Low load hours

292

 

c/ Peak hours

1,331

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:

No.

Subjects of application of prices

Electricity sale price (VND/kWh)

1

Hospitals, kindergartens. preschools, general education schools

 

 

a/ Voltage level of 6 kV or higher

1,009

 

b/ Voltage level of under

1,063

 

6kV

 

2

Public lighting

 

 

a/ Voltage level of 6 kV or higher

1,124

 

b/ Voltage level of under 6kV

1,177

3

Administrative and non-business units

 

 

a/ Voltage level of 6 kV or higher

1,159

 

b/ Voltage level of under

 

 

6kV

1,207

Article 14. Electricity retail prices applicable to business activities

Electricity retail prices applicable to business activities are as follows:

No.

Voltage level

Electricity sale price (VND/kWh)

1

22 kV or higher

 

 

a/ Off-peak hours

1,648

 

b/ Low load hours

902

 

c/ Peak hours

2,943

2

Between 6 kV and under 22 kV

 

 

a/ Off-peak hours

1,766

 

b/ Low load hours

1,037

 

c/ Peak hours

3,028

3

Under 6 kV

 

 

a/ Off-peak hours

1,846

 

b/ Low load hours

1,065

 

c/ Peak hours

3,193

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

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

No.

A household's average consumption level in a month

Electricity sale price (VND/kWh)

1

First 50 kWh

600

2

From the 51s'to 100th kWh

1.004

3

From the 101s1 to 150th kWh

1.214

4

From the 151st to 200th kWh

1.594

5

From the 201st to 300th kWh

1,722

6

From the 301st to 400th kWh

1.844

7

From the 401st kWh onward

1.890

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

Electricity retailers shall elaborate retail pricing schemes on the principle of ensuring reasonable profits and clearly identifying sources to cover expenses and submit them to provincial-level Industry and Trade Departments for verification 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 detailed scheme to the Electricity Regulatory Authority of Vietnam for consideration and written comment.

Article 17. Retail sale prices applicable to industrial parks with separate power generation sources

Electricity retailers in industrial parks with separate power generation sources or units with separate power generation sources combined with purchase of electricity from the national power grid that retail electricity to consumers in industrial parks shall set electricity retail prices for consumers in industrial parks and submit them to provincial-level People's Committees for approval after obtaining written verification opinions from the Electricity Regulatory Authority of Vietnam.

Chapter IV

ORGANIZATION OF IMPLEMENTATION

Article 18. Examination responsibilities

1. Provincial-level Industry and Trade Departments shall examine and supervise local electricity retailers under their management in applying electricity sale prices under this Circular. When detecting retailers failing to meet the conditions specified in Articles 8 and 9 of this Circular, provincial-level Industry and Trade Departments shall terminate the operation of violators and report such to provincial-level People's Committees for revocation of their operation permits granted by provincial-level People's Committees or for reporting to the Electricity Regulatory Authority of Vietnam for revocation of permits granted by this Authority and for transfer to power companies for direct electricity sale to consumers.

2. Provincial-level Industry and Trade Departments shall coordinate with power companies in examining and supervising house lessors in applying progressive retail prices of daily-life electricity under this Circular to house lessees.

Article 19. Effect

1. This Circular takes effect on March 1, 2010, and replaces the Industry and Trade Ministry's Circular No. 05/2009/TT-BCT of February 26, 2009, providing 2009 electricity sale prices and guiding their application.

To annul the Ministry of Industry and Trade's Official Letter No. 8527/BCT-DTDL of August 28, 2009, guiding the reduction of electricity prices during peak hours.

2. The Electricity Regulatory Authority of Vietnam shall guide the implementation of this Circular. Any problems arising in the course of implementation should be reported directly to the Electricity Regulatory Authority of Vietnam for consideration and settlement.

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

 

 

FOR THE MINISTER OF INDUSTRY AND TRADE
DEPUTY MINISTER




Do Huu Hao

 

APPENDIX

GUIDANCE ON APPLICATION OF ELECTRICITY SALE PRICES
(To the Industry and Trade Ministry's Circular No. 08/2010/TT-BCT of February 24, 2010)

A. GUIDANCE ON APPLICATION

I. GENERAL PROVISIONS

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

Electricity buyers shall truthfully declare electricity use purposes for electricity sale price calculation under this Circular.

When an electricity buyer changes the electricity use purpose, which results in a change in applied electricity sale prices, this buyer shall notify such to the seller 15 days in advance for adjusting prices under contracts accordingly. Electricity sellers shall examine and promptly apply electricity sale prices to proper consumers 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 counted as 12 months back from the time of detecting the improper application of prices.

2. For buyers using electricity for different purposes:

a/ For electricity wholesale to rural areas, condominiums and residential clusters: Electricity retailers shall install separate meters for retail to consumers of electricity for daily-life, irrigation and other purposes.

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

c/ For electricity consumers after an electric meter for non-daily-life purposes (production, business, administrative, non-business), buyers and sellers shall, based on the actual electricity consumption, reach agreement on the specific electricity use rate for each purpose.

3. On March 1, 2010, electricity sellers shall record readings of all electric meters operating on the power grid (except those for daily-life electricity retail).

The recording 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 buyers 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. Pending the installation of three-price electric meters, electricity sale prices for off-peak hours apply.

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

When an electricity buyer subject to the three-price system rejects the installation of a three­price electric meter 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 entire electricity consumption output until a three-price electric meter is installed.

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

III. CONSUMER-BASED ELECTRICITY RETAIL PRICES

1. Electricity sale prices applicable to manufacturing industries

The for-production electricity price tariff applies to all buyers consuming 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/ Production management offices of business groups, corporations and companies;

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

g/ 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;

h/ Water drainage pumping and wastewater treatment in cities and towns;

i/ Switchboards, transmission networks and relay stations of telecommunications companies:

j/ Weaving, animal raising, poultry-egg hatching, rice husking, ice-making, welding, oxyacetylene welding, sawing and carpentry establishments;

k/ Other production activities.

2. Electricity sale prices applicable to irritation activities

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

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

a/ Electricity sale prices for hospitals, kindergartens, preschools and general education schools apply 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 counseling on drug detoxification, HIV/AIDS prevention and control, and family planning.

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

- Lighting of streets, parks and lanes; temples, pagodas, churches; 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:

- Offices of state administrative agencies; non-business units; armed forces units; political organizations, socio-political organizations; and professional associations;

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

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

- 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 the 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 state budget funds 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 agencies; public and private universities, colleges and vocational training schools (except those specified at Point a. Clause 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;

- 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 these activities.

4. Progressive retail prices of daily-life electricity

a/ The progressive retail price of daily-life electricity applies to households consuming 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 this 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 this buyer is VND 728,475. including:

- First 50 kWh: 50 kWh x VND 600/kWh = VND 30.000

- Subsequent 50 kWh: 50 kWh x VND 1,004/ kWh = VND 50,200

- Subsequent 50 kWh: 50 kWh x VND 1.214/ kWh = VND 60,700

- Subsequent 50 kWh: 50 kWh x VND 1,594/ kWh = VND 79,700

- Subsequent 100 kWh: 100 kWh x VND 1,722/kWh = VND 172,200

- Subsequent 100 kWh: 100 kWh x VND 1,844/kWh = VND 184,400

- Subsequent 45 kWh: 45 kWh x VND 1,890/ kWh = VND 85,050

Total = VND 662,250

Value-added tax (10%) = VND 66,225

b/ The progressive electricity sale price applies to an electricity buyer consisting of many households (with separate permanent residence registration books) which shares 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 tariff multiplied by the number of households sharing the electric meter.

For example: For an electricity buyer consisting of 4 households buying electricity through an electric meter, progressive electricity retail price levels are applied as follows:

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

- The VND 1,004/kWh price applies to the subsequent 200 kWh (50 kWh x 4 households)

- The VND 1,214/kWh price applies to the subsequent 200 kWh (50 kWh x 4 households)

- The VND 1,594/kWh price applies to the subsequent 200 kWh (50 kWh x 4 households)

- The VND 1,722/kWh price applies to the subsequent 400 kWh (100 kWh x 4 households)

- The VND 1.844/kWh price applies to the subsequent 400 kWh (100 kWh x 4 households)

- The VND 1.890/kWh price applies to the 1.60151 kWh onward

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

d/ Prices shall be applied to buyers of electricity for daily-life activities of condominiums of cadres, workers, civil servants and students, armed forces, sanatoriums for old or disabled people, orphanages and houses of monks as follows:

- When it is possible to declare the number of tenants (based on long-term residence registration certificates), every 4 persons are considered one household for application of the progressive retail price of daily-life electricity under Point a of this Clause.

- When it is impossible to declare the number of tenants, the progressive retail price of daily-life electricity for between 101s1 and 150th kWh under Article 15 of this Circular applies to the entire electricity output measured at the meter.

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

f/ A house lessor's signing of contracts to buy daily-life electricity complies with the following regulations:

- The lessor shall produce the lessee's temporary residence registration certificate;

- 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 to buy electricity (with the lessor's guarantee for electricity charge payment). Each lessee is entitled to an electricity consumption norm:

- 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 the lessor's guarantee for electricity charge payment). In this case, every 4 persons (based on long-term residence registration certificates) are considered a household for application of the progressive daily-life electricity retail price, specifically: 1 person as 1/4, 2 persons as 1/2 and 3 persons as 3/4 of, and 4 persons, as an electricity consumption norm. For those leasing houses for less than 12 months, the lessor shall directly sign the contract;

- The lessor shall collect electricity charges from lessees exactly according to the monthly electricity retail bill issued by the electricity retailer;

- When the number of lessees changes, the lessor shall notify such to the electricity seller for appropriate calculation of electricity charges. The electricity seller may examine and request the electricity buyer to monthly produce residence registration certificates to determine the number of electricity consumers entitled to consumption norms for electricity billing.

g/ In force majeure circumstances leading to electricity sellers" change of the reading recording time, 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.

h/ When the reading recording date 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 number of days of actual electricity consumption (the number of days between two reading recording dates, and numbers of days subject to the application of the old and new prices);

- The consumed electricity of each price level 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 consuming electricity for business and service activities, including:

a/ Enterprises, service shops, supermarkets, fairs, wholesalers and retailers of supplies and goods, 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/ Business establishments of telecommunications, cable television and terrestrial digital television companies;

d/ Lottery companies;

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 of production and business establishments 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 and 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 companies;

o/ Customer services offices and centers; consultancy companies;

p/ Business sections of units operating in culture, arts and physical training-sports, 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 switchboards, transmission networks and relay stations of telecommunications companies).

IV. ELECTRICITY SALE PRICES APPLICABLE TO RURAL AREAS

1. Electricity wholesale prices applicable to rural areas

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

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, which is bought by rural electricity retailers through general electric meters installed at transformer stations, regardless of owners of transformer stations and voltage levels.

- 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 electricity billing equals the output for each level set at the price tariff multiplied by the number of households buying electricity from that general electric meter.

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

- Charges for electricity wholesaled for rural daily-life activities in the month of electricity price change shall be calculated as follows: The electricity output of each daily-life electricity wholesale price level subject to old and new prices shall be calculated by multiplying the daily consumption norm output by the number of days of actual consumption before and after the price adjustment in the month of price change. The daily consumption norm output of each price level equals the output of each price level divided by the number of days of actual consumption in the month of calculation.

c/ The wholesale price of electricity for irrigation bought after electric meters for rural electricity wholesale is provided in Clause 3, Article 8 of this Circular.

d/ The electricity wholesale price for other purposes after for-wholesale electric meters under Clause 4, Article 8 of this Circular applies to the electricity output consumed for purposes other than daily-life activities and irrigation.

e/ The electricity output subject to the for-irrigation electricity wholesale price at the general electric meter equals the total commercial electricity output consumed by households for irrigation measured at for-retail electric meters multiplied by 1.1 (the after-general-meter power loss rate of low-voltage grids is 10%).

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

The electricity output subject to the daily-life electricity wholesale price equals the total electricity output measured at the general electric meter subtracted by the total electricity output at the general electric meter for irrigation and other purposes.

For example: The general electric meter at a transformer station supplying electricity for a village of 200 households which consume electricity for daily life reads 98,500 kWh in a month. Apart from these households, within the electricity supply after the general electric meter, a number of households consume electricity for other purposes (production, business, services), which have separate electric meters, with a total electricity output measured at 10.000 kWh in the month, and for irrigation (with separate meters) with a commercial electricity output measured at 3,000 kWh in a month. The electricity charge payable by the rural electricity retailer to the power company for the output measured at this general electric meter is calculated as follows:

No.

Electricity consumption level/household/month

Month ...

Number of households

Output (kWh)

Wholesale price (VND/kWh)

Electricity charge (VAT-exclusive) (VND)

I

Electricity consumed for other purposes

 

11,000

1,010

11,110.000

II

Electricity consumed for irrigation

 

3,300

702

2,316,600

III

Electricity consumed for daily life

 

84,200

 

94,011,000

1

50 kWh or less

200

10,000

432

4,320,000

2

Between 51 and 100 kWh

200

10,000

753

7,530,000

3

Between 101 and 150 kWh

200

10,000

886

8,860,000

4

Between 151 and 200 kWh

200

10,000

1,227

12,270,000

5

Between 201 and 300 kWh

200

20,000

1,326

26,520,000

6

Between 301 and 400 kWh

200

20,000

1,420

28,400.000

7

401 kWh or more

200

4,200

1,455

6,111,000

 

Total

 

98,500

 

107,437,600

f/ Within 3 days from the date of recording readings at the general electric meter of a payment period, a rural electricity retailer shall provide the electricity wholesaler with a statement of commercial electricity output for other purposes and irrigation, and the number of consumer households buying electricity after the general electric meter certified by the lawful representative of the electricity retailer enclosed with a list of added or reduced consumer households (if any) certified by the commune-level People's Committee for electricity billing. Past this time limit, if the electricity retailer fails to fully provide the above documents, the wholesaler may apply the daily-life electricity wholesale price for between the 101s1 and 150th kWh for the whole electricity output measured at the general electric meter.

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

2. Electricity retail prices applicable to rural areas

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 progressive price tariff under Article 15 of this Circular:

b/ The electricity retail price applicable to production, irrigation, and administrative-non­business or business activities in rural areas complies with the respective electricity retail price tariff at the voltage of under 6 kV during off-peak hours under Article 11.12.13 or 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 under 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 consumers in residential clusters, condomi­niums of agencies, companies, enterprises, plants, construction sites, farms, forestry farms, stations, facilities and markets or hamlets, villages and communes ineligible for application of electricity wholesale prices 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 electricity retailers at general electric meters installed at transformer stations, regardless of voltage levels.

- 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 electricity billing equals the electricity norm set for each level in the electricity price tariff 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 is the total number of households having permanent or long-term residence registration books and signing electricity trading contracts with electricity retailers within the scope of electricity supply of the general electric meter, which is certified by commune-level People's Committees.

- Charges on electricity wholesaled to condominiums and residential clusters in the month of electricity price change shall be calculated as follows: The electricity output subject to each level of old and new daily-life electricity wholesale prices applicable to rural areas equals the daily consumption output norm multiplied by the number of days of actual consumption before and after the price adjustment in the month of price change. The daily consumption output norm of each level equals the output for each level divided by the number of days of actual consumption in the month of calculation.

c/ The daily-life electricity wholesale price for condominiums of cadres, workers and employees and students and armed forces units, sanatoria for the aged or the disabled, orphanages and houses of monks applies as follows:

- When it is possible to declare the number of tenants, every 4 persons are regarded as a household for calculating the progressive daily-life electricity consumption norm under Point b of this Clause:

- When it is impossible to declare the number of tenants, the daily-life electricity wholesale price for the level of between the 101s' and the 150"' kWh applicable to corresponding areas under Clause 2, Article 9 of this Circular.

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.

- The electricity output for other purposes subject to the daily-life electricity wholesale price equals the total commercial electricity output for other purposes measured at for-retail electric meters multiplied by 1.1 (the low-voltage power loss rate after the general electric meter is 10%).

- For high-rise residential buildings and new urban centers, the electricity output subject to the wholesale price for other purposes equals the total commercial electricity output measured at for-retail electric meters for other purposes multiplied by 1.02 (the low-voltage power loss rate after the general electric meter is 2%).

- The electricity output subject to the daily-life electricity wholesale price applicable to condominiums and residential quarters equals the total output measured at the general electric meter subtracted by the total electricity output for other purposes measured at the general electric meter.

For example: The general electric meter at a transformer station (invested by the buyer-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 in 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, services) and have separate electric meters with a 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:

No.

Electricity consumption level/household/month

Month ...

Number of households

Output

Wholesale price (VND/kWh)

Electricity charge (VAT-exclusive) (VND)

I

Electricity consumed for other purposes

 

2,200

1,020

2,244,000

II

Electricity consumed for daily life

 

23,000

 

30,646,000

1

50 kWh or less

50

2,500

522

1,305,000

2

Between 51 and 100 kWh

50

2,500

889

2,222,500

3

Between 101 and 150 kWh

50

2,500

1,062

2,655,000

4

Between 151 and 200 kWh

50

2,500

1,419

3,547,500

5

Between 201 and 300 kWh

50

5,000

1,533

7,665,000

6

Between 301 and 400 kWh

50

5,000

1,641

8,205,000

7

401 kWh or more

50

3,000

1,682

5,046,000

 

Total

 

25,200

 

32,890,000

e/ Within 3 days from the date of recording readings at the general electric meter for a payment period, an electricity retailer shall provide the electricity seller with a bill or a statement of commercial electricity output consumed for other purposes, the number of consumer households buying daily-life electricity after the general electric meter certified by a lawful representative of the electricity retailer enclosed with a list of added or reduced consumer households (if any) certified the commune-level People's Committee for electricity billing. Past this time limit, if the electricity buyer fails to fully provide the above documents, the electricity wholesaler may apply the daily-life electricity wholesale price for between the 101st and 150th kWh for the whole daily-life electricity output measured at the general electric meter.

For high-rise residential buildings in cities and new urban centers, within 3 days from the date of recording readings at the general electric meter, an electricity retailer shall provide the seller with a bill or a statement of commercial electricity output consumed for other purposes, the number of consumer households buying daily-life electricity after the general electric meter certified by a lawful representative of the electricity retailer enclosed with a list of added or reduced consumer households (if any) certified by the ward People's Committee for electricity billing. Past this time limit, if the electricity buyer fails to fully provide the above documents, the seller may apply the daily-life electricity wholesale price for between the 201st and 300th kWh for the whole electricity output sold through the general electric meter.

f/ Electricity retailers 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 tariff applicable to the former status of their localities. The temporary application duration must 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. 2010. under the decision of a competent authority. By October 15, 2010, at the latest, electricity retailers in these communes shall apply the electricity wholesale price tariff 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 tariff under 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 tariffs at the voltage level of under 6 kV 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 retailers in industrial parks complies with Article 10 of this Circular.

b/ The electricity wholesale price under Clause 1, Article 10 of this Circular applies to industrial parks in which an electricity retailer invests in 110kV transformer stations and medium-voltage transmission lines for sale to electricity consumers in these industrial parks. 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 retail 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 has two transformers with a capacity of 40MVAeach. The station's total capacity is 2 x 40 MVA = 80 MVA.

The prices are as follows:

 

Electricity wholesale price (VND/kWh)

- Off-peak hours

871

- Low load hours

479

- Peak hours

1,706

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

 

Electricity sale price (VND/kWh)

- Off-peak hours

935

- Low load hours

518

- Peak hours

1,825

c/ The electricity wholesale price under Clause 2, Article 10 of this Circular applies when the electricity management and retail unit of an industrial park buys from the seller 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 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 electricity wholesale price at the general electric meter is the electricity retail price applicable to manufacturing industries under Article 11 of this Circular at the respective voltage level 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 retail unit of industrial park A buys from seller B electricity at the 22kV busbar of the 110/22kV transformer station of the industrial park 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 retail unit of industrial park A to the seller is as follows:

 

Electricity price (VND/kWh)

- Off-peak hours

- Low load hours

- Peak hours

935 x 98% = 916

518x98% = 508

1,825 x 98% = 1,789

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

 

Electricity sale price (VND/kWh)

- Off-peak hours

- Low load hours

- Peak hours

935

518

1,825

d/ The electricity wholesale price under Clause 3 Article 10 of this Circular applies when the electricity management and retail 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 to consumers in the industrial park at the voltage level of 0.4 kV.

The electricity wholesale price at the general electric meter is the retail price at the respective medium voltage applicable to manufacturing industries under Article 11 of this Circular.

For example: The electricity retailer of industrial park A buys electricity at the voltage level of 22kV from the seller for resale to consumers in the industrial park at the voltage level of 0.4 kV:

The electricity price payable by the electricity retailer of industrial park A to the seller is as follows:

 

Electricity sale price (VND/kWh)

- Off-peak hours

935

- Low load hours

518

- Peak hours

1,825

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 users at proper prices under Chapter III of this Circular.

b/ The electricity retail price for consumers in industrial parks with separate power sources or with separate power sources in combination with electricity purchased from the national power grid complies with Article 17 of this Circular.

B. INPUT PARAMETERS FOR CALCULATION OF 2010 ELECTRICITY SALE PRICES

The average electricity sale price for 2010 is VND 1,058/kWh (exclusive of value-added tax), calculated based on the following input parameters:

1. Estimated total commercial electricity output in 2010: 85 billion kWh (including 1 billion kWh to be exported).

2. Estimated total output of domestically generated (pole end) and imported electricity in 2010: 96.7 billion kWh (including 4.1 billion kWh to be imported).

3. Percentage of domestically generated and imported electricity output from different sources as follows:

a/ Hydro-power: 33.3%;

b/Coal thermo-power: 19.2%;

c/ Gas thermo-power: 42.3%;

d/ Oil thermo-power: 0.9%;

c/ Imported: 4.3%.

4. Average electricity rate consumed in the power generation stage (according to the electricity output generated at the pole of generators): 2.3%.

5. Power loss rate in electricity transmission and distribution grids: 10% (as compared with the electricity output of busbars of power plants and total electricity output received on distribution grids).

6. Electricity output transmitted through electricity transmission grids at points of delivery with electricity distribution grids (excluding the output generated by power plants on 110kV grids) for calculating the electricity transmission cost: 81 billion kWh.

7. Electricity output received by electricity distribution grids (including the output received from 110 kV grids for calculation of wholesale prices): 88.95 billion kWh.

8. Electricity output bought from under-30MW power plants connected with electricity distribution grids: 2.4 billion kWh.

9. Prices of coal for electricity generation: grade-4b slack: VND 648,000/ton; grade-5 slack: VND 520,000/ton; grade-6a slack: VND 450,000/ton; and grade-6b slack: VND 395,000/ton.

10. Average price of gas for Ca Mau power plant: USD 5,98/million BTU (equivalent to Singapore market MFO price of USD 425/ton. converted from the 2010 average crude oil price of USD 69/barrel).

11. The 2010 average price of DO (diesel oil) for electricity generation: VND 14.300/liter.

12. The 2010 average price of FO (fuel oil) for electricity generation: VND 12,600/kg.

13. VND/USD exchange rate: VND 18,500/ USD.

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