Circular No. 10/2015/TT-BCT dated May 29, 2015 of the Ministry of Industry and Trade providing the order and procedure for issue, revocation and duration of electricity activity permit

THE MINISTRY OF INDUSTRY AND TRADE 

Circular No. 10/2015/TT-BCT dated May 29, 2015 of the Ministry of Industry and Trade providing the order and procedure for issue, revocation and duration of electricity activity permit

Pursuant to Decree No. 95/2012 / ND-CP dated 12 November, 2012 of the Government defining the functions, tasks, powers and organizational structure of the Ministry of Industry and Trade;

Pursuant to the Law on Electricity dated December 03 2004, and the Law amending and supplementing a number of articles of the Law on Electricity dated 20 November 2012;

Pursuant to the Decree No. 137/2013/ND-CP dated 21 October 2013 of the Government detailing the implementation of some articles of the Law on Electricity and the Law amending and supplementing a number of articles of the Law on Electricity;

At the request of Director of Electricity Regulatory Authority,

The Ministry of Industry and Trade issues this Circular providing for order and procedures for issue, revocation and duration of electricity activity permit.

Chapter I

GENERAL PROVISIONS

Article 1.Scope of regulation

This Circular provides for order and procedures for issue, revocation of electricity activity permit; duration and forms of electricity activity permit.

Article 2.Subjects of application

This Circular applies to all organizations and individuals involved in areas of electricity activity as follows:

1. Specialized electricity consultation, including:

a) Consultation of national electricity development planning; consultation of electricity development planning of provinces and centrally-run cities and consultation of hydroelectric planning;

b) Consultation of investment in power the Plant, transmission line and substation building projects;

c) Consultation of performance supervision of power the Plant, transmission line and substation projects;

2. Electricity generation

3. Electricity transmission.

4. Electricity distribution

5. Electricity wholesaling.

6. Electricity retailing

7. Electricity import and export.

Article 3. Exemption from electricity activity permit

1. Generating electricity for self use without sale to other organizations and individuals.

2. Generating electricity with installed capacity of less than 50 kW for selling electricity to other organizations and individuals.

3. Carrying on electricity trading in rural, mountainous areas or islands, buying electricity with capacity of less than 50 kVA from the power distribution grid for selling electricity directly to customers in rural, mountainous areas or islands.

4. Dispatching the national electricity system and operating the transactions of electricity market.

Article 4. Principles of issuing electricity activity permit

1. The electricity activity permit shall be issued to only organizations or individuals that meet the conditions for each area specified in Decree No. 137/2013/ND-CP dated 21 October 2013 of the Government detailing the implementation of some articles of the Law on Electricity and the Law amending and supplementing some articles of the Law on Electricity and compliance with the provisions in this Circular.

2. The electricity activity permit is issued to organizations or individuals in order to implement one or more electricity activity areas such as: specialized electricity consultation, electricity transmission, distribution, wholesaling, retailing, import and export.

3. Before the stage of competitive electricity retailing market, the electricity activity permit of retailing area is issued simultaneously with electricity distribution area.

4. The electricity activity permit is issued to organizations for implementation of electricity generation for each power the plant.

Article 5. Principles of revoking electricity activity permit

1. The electricity activity permit shall be revoked in the following cases:

a) The electricity units that violate Article 37 of the Law on Electricity;

b) The electricity units have a need of stopping operation or transferring the licensed operation to other units;

c) When there is a request from the competent state authorities due to the violation of relevant regulations of law of electricity units.

2. The electricity activity permit is revoked as per each area and scope of activity.

3. The licensing organ (referred to as licensing organ) has the authority to revoke it under its authority.

Article 6. Electricity activity permit’s duration

The electricity activity permit is issued with different durations for each area of electricity activity based on scope of activity, type of electricity works, registered duration, capacity and professional level of the electricity operating unit but must not exceed the prescribed duration specified in the following Table:

Article 7. Electricity activity permit’s scope

1. The specialized electricity consultation permit has its nation-wide scope of activity.

2. The electricity activity permit has its scope of activity for each power the Plant.

3. The electricity transmission and distribution permit has its scope of activity within the specific management and operation of power grid.

4. The electricity retailing and wholesaling permit has its scope of activity within a specific administrative boundary.

5. The electricity import and export permit has its scope of activity within a specific power delivery point.

Article 8. Fees for appraising and issuing electricity activity permit

1. Organizations and individuals that are issued with the electricity activity permit shall pay fees for appraisal and issue of the electricity activity permit as prescribed by law.

2. The licensing organ may use the fees for issue of the electricity activity permit for appraisal, issue of permit, inspection and management of use of electricity activity permit. The collection, payment and use of fees for appraisal and issue of the electricity activity permit must comply with regulations of law.

Chapter II

DOSSIER FOR ISSUE OF ELECTRICITY ACTIVITY PERMIT

Article 9. Dossier for issue of specialized electricity consultation permit

1. A written request for issue of the electricity activity permit is done the Form No.01 specified in the Appendix issued with this Circular.

2. A copy of certificate of enterprise registration, establishment decision or establishment certificate of the organization requesting the issue of permit.

3. List of managerial staff and main consultants is under the Form 7a specified in the Appendix issued with this Circular; a certified copy of graduation diploma or certificate of practice and signed labor contract of the persons named in the list with consulting organization.

4. List of projects with similar scale has been done by the consulting organization or main consultants.

5. List of technical equipment and means and applied software used for consultation ensure the requirements for consultation activity.

6. In case of change of name, address of head office of the unit issued with permit, the dossier includes only the contents specified in Clause 1 and 2 of this Article.

Article 10. Dossier for issue of electricity generation permit

1. A written request for issue of the electricity activity permit is done the Form No.01 specified in the Appendix issued with this Circular.

2. A copy of certificate of enterprise registration of the organization requesting the issue of permit.

3. The list of direct technical management staff, team of shift heads of power plant under the Form 7b in the Appendix issued with this Circular; a copy of graduation diploma and operation certificate issued by the dispatching level with control right to the persons named in the list as per the dispatching procedures of national electricity system issued by the Ministry of Industry and Trade.

4. A copy of Decision approving the investment project of power the plant from the competent authorities.

5. A copy of Decision approving the report on assessment of impact on environment or the written certification of environmental protection plan of power the plant investment project of the competent authorities.

6. A of electricity sale contract.

7. The list of equipment with strict requirements on labor safety and commitment of project owner to fully comply with regulations of law in using equipment with strict requirements on labor safety.

8. A certified copy of document on ensuring the fire prevention and fighting conditions as prescribed by law.

9. A copy of decision approving the reservoir operation procedures of the competent authorities (for hydroelectric the plants).

10. A copy of acceptance record of information technology and telecommunications infrastructure system and the acceptance record of completion of signal connection to SCADA/EMS, SCADA/DMS system of dispatching level with control right for proper operation of electricity system and electricity market.

11. A copy of acceptance record of hydroelectric dam and energy route; registration for dam safety sent to the competent authorities; plan for dam safety assurance and dam downstream areas as prescribed by law; report on result of dam inspection (for hydroelectric dams to be periodically inspected).

12. A copy of final acceptance record or written certification ensuring the commercial operation conditions for each generating unit.

13. A copy of procedure for coordinated operation of power the plant with the dispatching Unit of electricity system.

14. In case of change of name, address of head office of the unit issued with permit, the dossier includes only the contents specified in Clause 1 and 2 of this Article.

Article 11. Dossier for issue of electricity transmission and distribution permit

1. A written request for issue of the electricity activity permit is done the Form No.01 specified in the Appendix issued with this Circular.

2. A copy of Certificate of enterprise registration, establishment decision or establishment Certificate of the organization requesting the issue of permit.

3. The list of direct technical management staff, team of operational shift heads under the Form 7b in the Appendix issued with this Circular; a copy of graduation diploma and operation certificate issued by the dispatching level with control right to the persons named in the list as per the dispatching procedures of national electricity system issued by the Ministry of Industry and Trade.

4. The List of main power grid works items which the organization is managing and operating or prepares the receipt under the decision of the competent authorities.

5. A certified copy of document on ensuring the fire prevention and fighting conditions as prescribed by law.

6. A copy of connection Agreement or connection Contract.

7. A map of power grid boundary and scope of activity.

8. In case of change of name, address of head office of the unit issued with permit, the dossier includes only the contents specified in Clause 1 and 2 of this Article.

Article 12. Dossier for issue of electricity wholesaling and retailing permit

1. A written request for issue of the electricity activity permit is done the Form No.01 specified in the Appendix issued with this Circular.

2. A copy of Certificate of enterprise registration, establishment Decision or establishment Certificate of the organization or individual requesting the issue of permit.

3. List of managerial staff under the Form 7a specified in the Appendix issued with this Circular; a copy of graduation diploma or graduation certificate of the persons named in the list.

4. In case of change of name, address of head office of the unit issued with permit, the dossier includes only the contents specified in Clause 1 and 2 of this Article.

Article 13. Dossier for issue of electricity import and export permit

1. A written request for electricity activity permit is under the Form No.01 specified in the Appendix attached to this Circular.

2. A copy of Certificate of enterprise registration of the unit requesting the issue of permit.

3. A copy of Decision approving the policy on electricity sale with foreign countries, the approved power grid connection plan for electricity sale with foreign countries;

4. A copy of electricity import and export contract or a copy of written request for electricity purchase or electricity sale approval from foreign country.

5. Diagram of power grid principles concerning the electricity sale points and procedures for coordinated operation and processing of power grid events between the electricity buyer and the seller (if any).

6. A certified copy of document of prescribed implementation of regulations on fire prevention and fighting at the substations.

7. In case of change of name, address of head office of the unit issued with permit, the dossier includes only the contents specified in Clause 1 and 2 of this Article.

Chapter III

ORDER AND PROCEDURES FOR ISSUE AND REVOCATION OF ELECTRICITY ACTIVITY PERMIT

Article 14. Order and procedures for issuing electricity activity permit

1. The organizations and individuals requesting the issue of electricity activity permit shall send 01 set of dossier as prescribed in the provisions in Chapter II of this Circular to the licensing organ and shall take the responsibility for the accuracy and honest of dossier for issue of permit. The dossier can be sent directly or by post or online via the website of licensing organ (if any).

2. Within 03 working days after the receipt of dossier requesting the issue of electricity activity permit, the licensing organ shall notify in writing the organizations or individuals requesting the issue of permit if their dossiers are not complete or valid. The written notice must state the reasons and requires the supplementation or medication of data, documents and other relevant information for completion of dossier.

3. Within 05 working days after the receipt of requirements for supplementation and modification of data, documents and relevant information from the licensing organ, the organizations or individuals requesting the issue of electricity activity permit have to supplement or modify such data, documents and relevant information and send their written feedback.

If within 60 days from the date the licensing organ sends its written notice of supplementation and modification but the organizations or individuals requesting the issue of electricity activity Permit do not supplement their dossiers and reply in writing, the licensing organ has the right to return the dossier for issue of electricity activity permit.

4. Within 15 working days after the receipt of complete and valid dossiers, the licensing organ shall verify such dossiers, inspect at the head office of organizations or individuals (if necessary) and issue the electricity activity permit.

5. During the verification of dossier and actual inspection, if the organizations or individuals do not satisfy the prescribed conditions, the organ issuing the permit shall require such organizations or individuals to supplement the conditions or refuse to issue the Permit stating the reasons.

6. The issued electricity activity permit includes 03 originals: 01 delivered to the issued unit; 02 kept at the organ issuing the permit.

7. Order and procedures for issue of permit are applied as follows:

a) For dossiers sent directly or by post: Apply the provisions in Clause 2, 3, 4, 5 and 6 of this Article;

b) For dossiers sent via the website of the Electricity Regulatory Authority: comply with instructions of the Electricity Regulatory Authority;

c) The People’s Committee of provinces and centrally-run cities shall provide instructions on issue of permit under their authority in the online form (if any) in accordance with the provisions in this Circular.

8. Within 60 days prior to the expiration of electricity activity permit, if the electricity units issued with the permit wish to continue their operation, they must prepare dossiers to request the issue of electricity activity permit as prescribed in Clause 1 of this Article and comply with the prescribed order and procedures for issue of electricity activity permit .

Article 15. Order of revocation of electricity activity permit

1. Order of decision on revocation of electricity activity permit

a) Where the electricity unit violates the Article 37 of the Law on Electricity and the organ issuing the sanctioning decision is the licensing organ, such organ shall issue a decision on revocation of permit and sanctioning decision.

b) Where the electricity unit violates the Article 37 of the Law on Electricity and the organ issuing the sanctioning decision is not the licensing organ, such organ shall issue a decision on revocation of permit with definite time specified in the sanctioning decision. In case of no revocation, it shall give a written feedback (stating reasons) to the person issuing the sanctioning decision;

c) Where the electricity unit has a need to stop operation or transfer the licensed operation to other organizations or individuals, within 30 working days after receiving the written request of the electricity unit or request of the competent authorities and relevant documents, the licensing organ shall issue the decision on revocation of permit.

2. Within 02 working days after the decision on revocation of permit, the licensing organ shall send the revocation decision to the unit having the revoked permit and other relevant units and publicize the revocation information on the website of the licensing organ.

3. Where the permit is revoked as per each operation area or scope, the licensing organ shall require the electricity unit to carry out the order and procedures for issue of permit in accordance with the revocation decision as per each operation area or scope.

4. Where the electricity unit violates the provisions in Clause 7, Article 18 of this Circular, the licensing organ has the right to issue the revocation decision and publicize the revocation information on its website.

ChapterIV

AUTHORITY TO ISSUE AND MANAGE THE USE OF ELECTRICITY ACTIVITY PERMIT

Article 16. Authority to issue the electricity activity permit

1. The Ministry of Industry and Trade shall issue the electricity activity permit for the following areas:

a) Electricity generation for large power the plant with particularly important meaning on economy, society, national defense and security as per the list approved by the Prime Minister.

b) Electricity transmission;

c) Electricity import and export;

2. The Electricity Regulatory Authority shall issue the electricity activity permit for the following areas:

a) Electricity generation of power plant with capacity from 03 MW or more not subject to the case specified under Point a, Clause 1 of this Article;

b) Electricity distribution;

c) Electricity wholesaling;

d) Electricity retailing;

dd) Specialized electricity consultation.

3. The People’s Committee of provinces and centrally-run cities shall issue or authorize the Department of Industry and Trade to issue the electricity activity permit for the following areas:

a) Electricity generating of power plant with capacity of less than 03 MW located at localities;

b) Electricity distribution to the voltage of 35 kV at localities;

c) Electricity retailing up to the voltage of 0.4 kV at localities;

d) Specialized electricity consultation, including:

- Consultation of building of transmission line and substation up to the voltage of 35 kV and enterprise registration at localities;

- Consultation and performance supervision of transmission line and substation up to the voltage of 35 kV and enterprise registration at localities;

4. Where the organizations or individuals request the issue of permit for many activities in the area of specialized electricity consultation, in which there is at least one activity under the authority of the Electricity Regulatory Authority, the electricity activity permit shall be issued by the Electricity Regulatory Authority.

Article 17. Responsibility of licensing organ

1. Receives, appraises, inspects and manages dossiers for issue of electricity activity permit; provides instructions for organizations and individuals requesting the issue of permit to comply with the contents, order and procedures for issue of permit.

2. Deals with complaints about electricity activity permit under its authority.

3. Inspects and monitors the maintenance of conditions in the electricity activity Permit;

4. Revokes the electricity activity permit under its authority as per the order specified in Article 15 of this Circular.

5. Asks the competent authorities to impose sanction against the electricity unit which violates the regulations of law.

Article 18. Responsibility of electricity unit issued with electricity activity permit

1. Carries out the electricity activity in accordance with the contents specified in the permit.

2. Requests the issue of permit in case of change of name, address of head office, type of operation, scope of activity and duration of permit;

3. Maintains the electricity activities registered and licensed during the time of operation.

4. Complies with relevant regulations of law.

5. Makes all fees and charges related to the electricity activity permit as prescribed by law.

6. Makes report to the licensing organ within 60 days prior to the day of stop of electricity activity or transfer of electricity activity.

7. Makes report to the licensing organ within 30 days from the date of change of address of head office specified in the electricity activity permit.

8. Has no right to lend, borrow or modify the contents of electricity activity permit.

9. Is subject to inspection and complies with the handling decision of the competent state authorities on the use of permit and registered activities conditions.

10. Annually before March 01, makes report to the licensing organ on the maintenance of operational conditions in the licensed area of the previous year under the Forms 8a, 8b, 8c and 8d specified in the Appendix issued with this Circular.

Chapter V

IMPLEMENTATION ORGANIZATION

Article 19. Inspection

1. The Electricity Regulatory Authority shall inspect the implementation of this Circular nation-wide; deal with problems and recommend the contents to be reported to the Ministry of Industry and Trade for adjustment and supplementation of this Circular.

2. The People’s Committees of provinces and centrally-run cities shall inspect the implementation of this Circular within their management; deal with problems and recommend the contents to be reported to the Ministry of Industry and Trade for adjustment and supplementation of this Circular.

Article20. Implementation responsibilities

1. The Electricity Regulatory Authority is the organ which receives and deals with procedures for verification of dossier for issue of electricity activity permit and performs the order of revocation of Permit if such permit is under the issue authority of the Electricity Regulatory Authority and the Ministry of Industry and Trade.

2. The Department of Industry and Trade shall receive and deal with procedures for verification of dossier for issue of electricity activity permit and perform the order of revocation of permit if such permit is under the issue authority of the People’s Committees of provinces and centrally-run cities.

3. The units issued with electricity activity permit shall send Electricity Regulatory Authority copy of issued permit to the state management organ in area of electricity activity at localities for report within 30 days from the date of issue of permit.

4. Before the 15^thdate of January annually, the Department of Industry and Trade shall report to the Ministry of Industry and Trade and the People’s Committees of provinces and centrally-run cities on the reality of issue and revocation of electricity activity permit at localities of the previous year.

Article21. Implementation effect

1. This Circular takes effect from 12 July 2015. The Circular No. 25/2013/TT-BCT dated 29 October 2013 of the Minister of Industry and Trade stipulating the order and procedures for issue, modification, supplementation, revocation and duration of electricity activity permit shall be invalidated from the effective date of this Circular.

2. The electricity activity permits which have been issued under the provisions of Circular No. 25/2013/TT-BCT of the Minister of Industry and Trade stipulating the order and procedures for issue, modification, supplementation, revocation and duration of electricity activity permit and Decision No. 32/2006/QD-BCN dated  September 06, 2006 of the Minister of Industry stipulating the conditions, order and procedures for issue, modification, supplementation, revocation and management of use of electricity activity Permit, Decision No. 15/2008/QD-BCT dated 01 July 2008 of the Minister of Industry and Trade amending and supplementing some articles of Regulation on conditions, order and procedures for issue, modification, supplementation, revocation and management of use of electricity activity Permit issued with Decision No. 32/2006/QD-BCN dated 06 September 2006 of the Minister of Industry shall be valid as per the contents and duration specified in the Permit.

3. Any problems or difficulties arising in the course of implementation shall be promptly reported to the Electricity Regulatory Authority for study, recommendation and report to the Ministry of Industry and Trade for amendment or supplementation accordingly./.

For the Minister

The Deputy Minister

Hoang Quoc Vuong

* All appendices are not translated herein.