Circular No. 19/2013/TT-BCT dated July 31, 2013 of the Ministry of Industry and Trade promulgating the electricity selling price and guidance on the implementation

THE MINISTRY OF INDUSTRY AND TRADE

Circular No. 19/2013/TT-BCT dated July 31, 2013 of the Ministry of Industry and Trade promulgating the electricity selling price and guidance on the implementation

Pursuant to the Law on Electricity dated December 3, 2004, the Law amending and supplementing some articles of the Law on Electricity dated November 20, 2012;

Pursuant to Decree No. 105/2005/ND-CP dated August 17, 2005 of the Government detailing and guiding the implementation of some provisions of the Electricity Law;

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

Pursuant to Decision No. 04 24/2011/QD-TTg dated April 15, 2011 of the Prime Minister on adjustment of electricity selling price under market mechanisms;

Pursuant to Decision No. 268/QD-TTg dated February 23, 2011 by the Prime Minister of the electricity retail tariff applied from 2011;

The Minister of Industry and Trade issues Circular promulgating the electricity selling price and guidance on the implementation,

Chapter 1.

GENERAL PROVISION

Article 1. Scope of adjustment and subjects of application

1. This Circular prescribes the detailed electricity retail price for groups of customer using electricity based on the average electricity selling price determined under the provisions of the Decision No.1524/2011/QD-TTg dated April 15, 2011 of the Prime Minister on adjustment of electricity selling price under the market mechanisms and structure of electricity retail tariff approved by the Prime Minister and the electricity wholesale price for electricity retailing units directly purchasing electricity from the power Corporation or the attached power units.

2. This Circular is applicable to organizations and individuals purchasing electricity from the national power system and organizations and individuals concerned.

3. The electricity selling price in the areas without connection to national network electricity will be approved by provincial-level People s Committee after obtaining the written opinion from the Electricity Regulatory Authority.

Article 2. Average electricity selling price

Average electricity selling price is 1508.85 VND / kWh (excluding value added tax).

Article 3. Electricity selling price in accordance with the voltage level

1. Electricity selling price in accordance with the voltage level applied to customers who use electricity for the purpose of production, service business, water pumping for irrigation, administration and industrial zones and for other purposes in the high-rise apartment buildings in the city and new urban centers.

2. Electricity metering system placed at any voltage level, then the electricity selling price is based on the price prescribed at that voltage level.

Article 4. Electricity selling price in accordance with daily using time

Electricity price is specified by the time of electricity use (hereinafter referred to as the three-price form), as follows:

1. Normal hours

a) From Mondays to Saturdays

- From 04:00 to 9:00 (05 hours and 30 minutes);

- From 11:30 to 17:00 (05 hours and 30 minutes);

- From 20:00 to 22:00 (02 hours);

b)On Sundays

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

2. Peak hours

a) Including days from Mondays to Saturdays

- From 9:30 to 11:30 (02 hours);

- From 17:00 to 20:00 (03 hours).

b) On Sundays: No Peak hours

3. Off-peak time

All days of the week from 22:00 to 04:00 of the next day (06 hours).

Article 5. Conditions for electricity wholesale price’s application

1. The electricity wholesale price specified in Article 15, 16 and 17 of this Circular is applied for electricity retailing units which satisfy the following conditions:

a) Having electricity operation permit in the field of electricity distribution and electricity retailing issued by the competent authority except for cases of exempted electricity operation permit specified at Point c, Clause 1, Article 34 of the Electricity Law;

b) Having accounting books as prescribed in which the electricity retailing must be accounted separately from other business activities;

c) Having power sale and purchase contract and electricity meter installed for each electricity consuming household specified in Article 24 of the Electricity Law; issuing VAT invoice of electricity charge as prescribed by the Ministry of Finance for each electricity using customer by each payment period specified in the power sale and purchase contract

2. For electricity retailing units which do not satisfy conditions specified in Clause 1 of this Article, the electricity wholesaling units will report to the Department of Industry and Trade for submission to provincial-level People’s Committee for decision in order to revoke the electricity operation permit and hand over the power grid under the management of these units to the electricity company to sell electricity directly to customers. Pending the completion of the handover procedures, the electricity wholesaling unit is permitted to apply the ladder domestic electricity retail price for the entire power output measured in the summation meters based on the quota number of electricity consuming household of electric bill last month.

Article 6. Guidance on the implementation of electricity selling price

1. Time to apply tariffs: from August 1, 2013.

2. The electricity selling price prescribed in this Circular does not include value added tax.

3. Detailed guidance on implementation of this tariff is stipulated in Annex of this Circular.

4. If the average electricity selling price is adjusted as prescribed in Decision No. 24/2011/QD-TTg dated April 15, 2011 of the Prime Minister concerning the adjustment of electricity selling price under market mechanism and Circular No. 31/2011/TT-BCT dated August 19, 2011 of the Ministry of Industry and Trade stipulating the adjustment of electricity selling price by the basic input parameters, the Vietnam Electricity is responsible for adjusting the detailed electricity selling price for customer groups.

Chapter 2.

TARIFF OF ELECTRICITY RETAIL

Article 7. Electricity retailing price for production sectors

The electricity retailing price is as follows:

Article 8. Electricity retail price for irrigation pump

Electricity retail price for irrigation pump is as follows:

Article 9. Electricity retail price for administrative and career subjects

Electricity retail price for administrative and career subjects is as followed:

Article 10. Electricity retail price for business

Electricity retail price for business is as follows:

Article 11. Domestic electricity retail price

1. Ladder electricity retail price for domestic purposes as follows:

2. Electricity price for first ladder (0-50 kWh) only applies to the poor and low-income households, with the frequent rate of electricity consumption not exceeding 50kWh/month and registered with the electricity selling party. The poor and low-income households wishing to purchase electricity at the price of the first ladder should register under the guidance of the electricity seller.

3. The tariff from the second ladder onwards is applied for common households and poor and low-income households which have registered their electricity output used from 51st kWh or more.

4. Electricity retail price for domestic purposes for temporary and short-term electricity purchasers in the form of using prepaid cards is: 1,997 VND / kWh (this price does not include VAT).

Article 12. Electricity retail price at places without national networkelectricity

1. The domestic electricity retail price in rural, mountainous areas and island where there is no connection to the national network electricity will be approved by the Provincial-level People s Committee, but not beyond the ceiling price and floor price that are prescribed as follows:

a)Floor price: 2,263.27 VND/kWh;

b) Ceiling price: 3,772.12 VND/kWh.

2. The electricity retailing units in rural, mountainous areas and island where there is no connection to the national network electricity are responsible for preparing Scheme of electricity retailing price for consumers in the area on the principle to ensure the business and define the offset from selling of domestic electricity at specified ceiling price but lower than the approved trading price for submission to Department of Industry and Trade for verification and report to Electricity Regulatory Authority for submission of written opinion to provincial-level People’s Committee for annual approval.

Article 13. Electricity retail price in areas connected to the national network electricity with on-spot power generation source

The electricity retailing units in areas connected to the national network electricity with on-spot power generation source combining the power generation with power purchase from the national power system in order to retail electricity to their customers will prepare Scheme of electricity selling price for customers in the area for submission to Department of Industry and Trade for verification and report to Electricity Regulatory Authority for submission of written opinion to provincial-level People’s Committee for annual approval.

Chapter 3.

ELECTRICITY WHOLESALE PRICE

Article 14. Wholesale price for Electricity Corporation

1. The wholesale price for Electricity Corporation from Vietnam Electricity (Power selling and purchasing company) at the points of delivery will be determined under the guidance of the Ministry of Industry and Trade, in accordance with the provisions of Decision No. 24 / 2011/QD-TTg dated April 15, 2011 of the Prime Minister on electricity price adjustment under market mechanism and Circular No. 31/2011/TT-BCT dated August 19, 2011 stipulating the adjustment of electricity price under the basic input parameters.

2. The average electricity transmission price at the point of delivery is corresponding to the transmitted power output at the point of delivery with the distribution grid: 83,3 VND/kWh. The average electricity transmission price will be adjusted under the guidance of the Ministry of Industry and Trade.

Article 15. Electricity wholesale price in rural area

1. Position to determine the output of rural electricity wholesale output

The rural electricity wholesale price applied to rural electricity retailing units for the electricity output purchased wholesale measured at the summation meter installed in the electrical substation

2. The rural domestic electricity wholesale price is calculated as follows:

The rural electricity wholesale price and selling price at the summation meter are sold by Electricity Corporation, Electricity Company or authorized unit of Vietnam Electricity to the rural electricity retailing unit.

The principles to determine the rate of electricity consumption for electricity consuming household behind the summation meter are prescribed at Point b, Clause 1, Section IV of the Appendix issued together with this Circular.

3. The electricity wholesale price used for other purposes (other than domestic purpose) at the summation meter from wholesale purchase of rural electricity is 1.230 VND/kWh.

Article 16. Electricity wholesale price for dormitories and residential areas

1. The position to determine the output of wholesale electricity for dormitories and residential areas

The electricity wholesale price for dormitories and residential areas is applicable to the electricity wholesaling unit for the output of electricity purchased wholesale measured at the summation meter installed at the electrical substation or at the beginning of shunt of low voltage line.

2. The electricity wholesale price for dormitories and residential areas is as follows:

The electricity wholesale price for dormitories and residential areas is the selling price at the summation meter are sold by Electricity Corporation, Electricity Company or authorized unit of Vietnam Electricity to the dormitories and residential areas.

The electricity wholesale price for high rise apartment building in the city and new urban areas is as follows:

The principles to determine the rate of electricity consumption for electricity consuming household behind the summation meter are prescribed at Point b, Clause 1, Section IV of the Appendix issued together with this Circular.

3. The electricity wholesale price used for other purposes of dormitories and residential areas is specified as follows:

Article 17. Electricity wholesale price for industrial zones

1. The electricity wholesale price at 110kV bus bar of 110kV substation of industrial zones is applied in case the electricity retailing unit purchases electricity wholesale at the 110kV of industrial zones (110kV substation invested by the purchaser) for retailing to customers in the industrial zones stipulated as follows:

2. The electricity wholesale price sold by the electricity company to the electricity retailing unit at medium voltage bus bar of 110/35-22-10-6 kV substation or at the shunt of medium voltage line into the industrial zones is equal to the electricity selling rate for production sectors at the corresponding medium voltage level specified in Article 7 of this Circular subtracted by 2%.

3. The electricity wholesale price sold by the electricity Company to the electricity retailing units in the medium voltage of the low-voltage substations is equal to the rate of retail price applicable for production sectors at the corresponding medium voltage level specified in Article 7 of this Circular.

Chapter 4.

IMPLEMENTATION ORGANIZATION

Article 18. Inspection responsibilities

1. The Department of Industry and Trade will inspect and monitor the electricity retailing units under its management in implementation of electricity price as prescribed by this Circular. If these units are detected not to satisfy all conditions specified in Article 5 of this Circular, the Department of Industry and Trade will suspend the operation of violating organizations and report to provincial People’s Committee to revoke their electricity operation permits issued by provincial-level People’s Committee or report to the Electricity Regulatory Authority to revoke their electricity operation permits issued by the Electricity Regulatory Authority in order to hand them over to the electricity Company to sell electricity directly to the customers.

2. The Department of Industry and Trade will inspect and monitor the implementation of calculating the norm of consuming household and the electricity retail price at leased houses to ensure that the tenants may correctly apply the provisions on domestic electricity retail price specified in this Circular.

Article 19. Implementation effect

1. This Circular takes effect on August 1, 2013 and replaces Circular No. 38/2012/TT-BCT dated December 20, 2012 of the Ministry of Industry and Trade stipulating the electricity price and guiding the implementation.

2. Any problem arising during the course of implementation should be promptly reported to the Electricity Regulatory Authority for consideration and settlement under its competence or to the Ministry of Industry and Trade for settlement.

For the Minister

Deputy Minister

Le Duong Quang

ANNEX

GUIDANCE ON ELECTRICITY SELLING PRICE IMPLEMENTATION
(Issued with Circular No. 19/2013/TT-BCT dated July 31, 2013 of the Ministry of Industry and Trade)

I. GENERAL PROVISION

1. The electricity selling price must be applicable in accordance with the electricity consumers as prescribed by this Circular.

The purchaser will properly state the purpose of electricity use in order to calculate the electricity selling price as prescribed by this Circular.

In case of changing the purpose of electricity use leading to change in the applied price, the purchaser shall notify the seller 15 days in advance in order to adjust the price applicable in the contract price in accordance with the intended use. The seller must check and apply the electricity selling price in a timely manner in accordance with the specified consumers.

If applying the price not in line with the intended use causing damage to the purchaser or the seller, it is necessary to collect arrears or refund the electricity bill. If the time to apply wrong price cannot be determined, a period of 12 months will be included from the moment of detection backwards.

2. In case the purchaser uses electricity for different purposes:

a) For electricity wholesale in rural areas, dormitories and residential areas: the electricity retailing unit will install separate meters for retailing electricity to customers who use electricity for domestic purposes and for other purposes;

b) For customers signing the electricity consumption contract for domestic purposes behind a meter but with a part used for other purposes (production, sales, services), the ladder domestic electricity retail price will be applied for the entire power output measured at that meter;

c) For customers signing the electricity consumption contract beyond the domestic purpose behind a meter, the two parties buying and selling will base on the status of electricity consumption to negotiate electric rates used for each purpose.

3. On August 1, 2013, the electricity seller has to close the index of all meters under operation on the grid (except domestic electricity retail meters).

The closing of index of triple tariff meters, specialized substation summation meter, summation meter of electricity wholesale of rural areas, dormitories and residential areas must be certified by the customer’s representative or witness.

II. ELECTRICITY SELLING PRICE BY DAILY USING TIME

1. The electricity selling price in the triple tariff form is applicable for the following subjects:

a) The purchaser using electricity for the purpose of production, business and services will be supplied with electricity through specialized transformer from 25 kVA or higher or with the electricity output used on average of three consecutive months from 2.000 kWh/month or more;

b) The purchaser uses electricity for the purpose of irrigation pumping in service of production of rice, vegetables, crops, short-term industrial trees intercropped with rice, vegetables and crops;

c) Encouraging the purchase of electricity in three-tariff form from the purchaser using electricity for the purpose of production, business and services with transformer and electricity output used below the rate specified at Point a of this Clause.

The seller will facilitate and guide the purchaser to be installed with three-tariff meter.

2. The seller will prepare electrical meters to be installed for the purchaser subject to application of three-tariff form. During the time the seller is not eligible for installation of three-tariff meter, the electricity selling price by Normal hours is applicable.

3. If the seller is eligible for installation of three-tariff meter and has sent prior written notice to the purchaser subject to compulsory application of three-tariff form on the plan for installation of three-tariff meter. The purchaser will coordinate with the seller to install three-tariff meter as soon as possible.

In case the purchaser is subject to compulsory application of three-tariff form but refuses to install three-tariff meter when the seller has notified for three times, then within 15 days after the last notice, the seller is permitted to apply the electricity price of Peak hours for all electricity output to be consumed until the three-tariff meter is installed.

4. In case the purchaser is subject to application of three-tariff form but there are organizations and individuals sharing the meter not subject to application of three-tariff form, the purchaser must coordinate with the seller to separate meter for these organizations and individuals to become separate customers and sign direct electricity sale and purchase contract and apply price in line with the using subjects.

III. ELECTRICITY RETAIL PRICE APPLICABLE TO SUBJECTS OF USING

1.Electricity retail price applicable to production sector

The electricity tariff for production applicable for the buyer to use in the production of the following sectors:

a) Industry;

b) Construction, transportation, mining, forestry, aquaculture;

c) Agriculture: Cultivation (including electricity for irrigation of industrial trees, fruit trees and lighting to stimulate high yielding from fruit trees); raising of livestock, fisheries and other types of raising; production of preservatives and anti-epidemic drug;

d) Producing clean water supplied for domestic use, production and business;

dd) Production management office of groups, corporation and company;

e) Commodity warehouses (raw material, finished products, semi-finished products) under process of production;

g) Enterprises producing and supplying products and public services (for the electricity output used for public activities) excluding public lighting, management and exploitation of irrigation works;

h) Water drainage pumping and wastewater treatment of cities and towns;

i) Switchboard, transmission networks, receiving and broadcasting, stations of telecommunications companies;

k) Establishments of fabric weaving, chicken and duck egg hatching, duck, rice milling, ice freezing, autogenously welding, sawing, furniture, paddy drying, agricultural preservation after harvest;

l) Other production activities

2.Electricity selling price for irrigation pump

The tariff of electricity selling price for irrigation pump applicable for the electricity buyers with separate meters used in irrigation pump for production of rice, vegetables, crops, short-term industrial trees intercropped with rice, vegetables, crops, rice varieties and fruit varieties except for cases of using electricity for pumping purposes specified at Point c, Clause 1 of this Section.

3.Electricity selling price for administrative and career subjects

a) Electricity selling price for hospitals, nursery, kindergarten and high school

Applicable for the following subjects:

- Kindergarten, nursery, high school at all levels: elementary school, junior high school, senior high school, continuing education centers (Section of general culture teaching ), boarding schools of all public and private types;

- Hospitals (including the electricity output used for funeral house and hospital’s medical waste burning); examination and treatment facilities (including the electricity output used for examination and treatment of preventive health centers); nursing, rehabilitation, treatment of occupational disease facilities; old age home, disabled home, orphanage, drug rehabilitation facilities, social working education center, consulting office for drug rehabilitation, HIV / AIDS prevention and birth control.

b) Electricity selling price for public lighting

Applicable for the buyer using electricity for the following purposes:

- Public lighting in streets, parks, alleys, temples, pagodas, churches and historical sites ranked, martyr cemetery, dormitories or dormitory stairs;

- Electricity used for elevator of high-rise apartment building, water pumping for domestic use in dormitories and residential areas;

- Electricity used for traffic signal lights.

c) Electricity selling price for administrative agencies;

Applicable for the purchaser as follows:

- Head offices of the state administrative agencies, non-business units, units of the armed forces, political and political - social organizations, and professional associations;

- Embassies, diplomatic missions, representative offices of international organizations (non-commercial);

- Head office the press units, sports training centers, radio and television station, culture and information house, sports gymnasiums, museums, memorial houses, exhibition houses, funeral houses, incinerator;

- Departments funded from the budget of the fairs, market management board, guest houses, motels of administrative agencies. The buyer must provide legal documents on the use of budget funds as a basis for determining the price calculation proportionally.

For example: Guest house  A is a unit of a state agency, the power used for operating department funded from the state budget is calculated by the electricity selling price for administrative agencies, for business operating departments calculated by service and business price.

- Health insurance and social insurance agencies;

- The research agencies, universities, colleges, vocational schools of all public and private types and other training establishments (except those specified at Point a, Clause 3 of this Section);

- Organizations and agencies issuing central and local newspapers and books, providing school equipment, medical equipment, the charitable organizations;

- Stocks with function of national reserve specified by competent authority.

- Bank for Social Policies with non-profit activities;

- Head office of the agencies in charge of the management and exploitation of irrigation works;

- Head office of project management units using state budget funds.

For administrative agencies and non-business units if performing goods production activities, the electricity selling price for production will be applied. If performing business and service activities, the electricity selling price for business will be applied for the portion of electricity output corresponding to these activities.

4.Domestic electricity retail price

a) Domestic electricity retail price specified in Clause 2, Article 11 of this Circular applies for poor and low income households with the frequent rate of electricity consumption not exceeding 50kWh/month and registered with the electricity selling party.

The poor and low income households registered with the electricity selling party and with the frequent rate of electricity consumption not exceeding 50kWh/month will be applied with the first ladder price. For poor and low income households eligible for registration of electricity purchase at the first ladder price, if having demand, they may register with the electricity seller which will guide the purchaser to perform registration procedures at the price specified in Clause 2, Article 11 of this Circular.

If the total amount of electricity used by registered households in the first month or the first 02 months or 03 consecutive months exceeds 150 kWh (allowing addition of 05 kWh for deviation of recording time of meter index), the seller will automatically transfer those households to the application of electricity selling price the same as common households specified in Clause 3, Article 11 of this Circular from the following month. The electricity consuming households are only allowed to re-register with the electricity seller at the price rate applicable for poor and low income households after12 months since being transferred to common households.

For domestic electricity purchaser having households commonly using the same meter (with separate family record book), the rate of electricity consumption for application of domestic electricity retail tariff specified in Clause 2, Article 11 of this Circular is calculated by the average electricity output for 01 household.

For example:

Case 1: In September 2013, a household registers and is applied with the domestic electricity retail tariff specified in Clause 2, Article 11 of this Circular. In September 2013, the amount the household has to pay is 43,692 VND, in which:

-  Electricity charge: 40 kWh x 993 VND/ kWh = 39, 720 VND

- VAT (10%) = 3.972 VND

If in September, October and November, the total amount of electricity used of that household is 160 kWh, the electricity seller will transfer that household to the application of electricity retail price the same as common households since December 2013.

Case 2: In September 2013, a household register and is applied with the domestic electricity retail tariff specified in Clause 2, Article 11 of this Circular. In September 2013, consuming 156 kWh, the amount the household has to pay is 235,305  VND, in which:

- Electricity charge:

Since October 2013, the electricity seller will transfer that household to the application of electricity retail price the same as common households.

Case 3: In September 2013, a household register and is applied with the domestic electricity retail tariff specified in Clause 2, Article 11 of this Circular. In September 2013, consuming 40 kWh, in October 2013 consuming kWh 120, the amount the household has to pay in October is 168,289 VND, in which:

- Electricity charge:

Since November 2013, the electricity seller will transfer that household to the application of electricity retail price the same as common households.

b) The ladder electricity retail price specified in Clause 3, Article 11 is applicable to common households.

Ex: The electricity purchaser consuming 445 kWh in a month, the amount of money the purchaser has to pay is 980,210 VND, in which:

c) For domestic electricity purchaser having households commonly using the same meter (with separate family record book), the ladder electricity price is applied for these households on the principle that the general ladder rate of electricity purchaser is equal to power rate of each ladder specified in electricity tariff multiplied by the number of household using the same meter.

Ex: Case 1: The electricity purchaser including 04 households purchasing electricity through a meter, the ladder rate of domestic electricity retail price is calculated as follows:

- 100 kWh x 4 households = First 400 kWh at 1,418 VND / kWh

- 50 kWh x 4 households = Next 200 kWh at 1,622 VND /kWh

- 50 kWh x 4 households = Next 200 kWh at 2,044 VND /kWh

- 100 kWh x4 households = Next 400 kWh at 2,210 VND /kWh

- 100 kWh x4 households = Next 400 kWh at 2,361 VND /kWh

- From 1,601st  kWh or more, the price is 2,420 VND /kWh

Case 2: The electricity purchaser including 04 households registering the application of domestic electricity retail tariff specified in Clause 2, Article 11 of this Circular purchases electricity through a meter, the ladder rate of domestic electricity retail price is calculated as follows:

-50 kWh x 4 households = First 200 kWh at 993 VND /kWh

- 50 kWh x 4 households = Next 200 kWh at 1,418 VND /kWh

- 50 kWh x 4 households = Next kWh at 1,622 VND /kWh

- 50 kWh x 4 households = Next 200 kWh at 2.044 VND /kWh

- 100 kWh x 4 households = Next 400 kWh at 2.210 VND /kWh

- 100 kWh x 4 households = Next 400 kWh at 2,361 VND /kWh

- From 1,601^stkWh or more, the price is 2,420 VND /kWh

d) The electricity buyer uses it for domestic purpose for dormitories of officials, employees, students, pupils and armed forces, houses of practitioners of religion applied as follows:

- In case of declaring a number of people, then 04 persons (based on the book of temporary residence registration or list of officials and soldiers certified by the head of unit for armed forces) are regarded as a household for application of ladder domestic electricity retail price specified at Point a, b of this Clause;

- In case of failing to declare a number of people, the ladder domestic electricity retail price from 151-200 kWh specified in Clause 1, Article 11 of this Circular will be applied for the entire electricity output measured at the meter.

dd) Customers purchasing electricity through separate transformer for domestic use will be applied with the ladder domestic electricity retail price.

e) The signing of electricity purchase contract for domestic purpose in case of house lease for residence is done as follows:

- At each address of a leased house, the electricity seller signs only one electricity sale and purchase contract. The landlord will present the tenant’s book of temporary residence registration;

- In case of household lease: the landlord will directly sign the electricity sale and purchase contract or authorizes the leasing household to sign it (with guaranteed payment for electricity bill). Each leasing household is given a rate.

- In case tenants are students and employees (tenants are not household), the electricity seller will publicly announce and provide the rate for the landlord based on the book of temporary residence registration. Just 04 persons are regarded as a household to apply the rate of ladder domestic electricity retail price, namely: 01 person is regarded as a fourth of rate, 02 persons are regarded as a half of rate, 03 persons are regarded as 3/4 of rate, 04 persons are regarded as 01 rate;

- In case tenants are students and employees with temporary residence from 12 months or more, the landlord will directly sign the electricity sale and purchase contract or the employees or students’ representative will do (with guaranteed payment for electricity bill from the landlord). If the lease term is less than 12 months, the landlord must directly sign this contract.

- If the tenant does not sign contract directly with the seller, the landlord will collect the tenant’s electricity charge according to the proper electricity retail price specified in the monthly electricity bill issued by electricity retailing unit plus 10% for loss, lighting cost and shared water pumping;

- When there is a change in the number of tenant, the landlord will inform the electricity seller to adjust the rate of calculation of power payment. The seller has a right to inspect and require the purchaser to present book of monthly temporary residence registration in order to determine a number of people for the rate upon calculation of electricity bill.

g) In case of force majeure, the Seller has to shift the time of meter reading, the amount of electricity used of each ladder of domestic electricity price is adjusted by the actual number of days of the reading period of that meter.

h) If the day of meter reading does not coincide with the day of electricity price adjustment, the calculation of electricity charge for the ladder domestic electricity price is done by using the interpolation method with the following parameters:

- Actual amount of electricity consumed by customer in the period of meter reading;

- Actual number of day of electricity use (a number of days between two periods of meter reading, a number of days applying old price and new price);

-Rate of electricity use of each ladder based on actual number of days between two periods of meter reading

i) The domestic electricity retail price specified in Clause 4, Article 11 of this Circular is applicable for group of customer making temporary or short-term purchase of electricity for domestic purpose and using pre-paid card meter. When meeting legal and technical conditions, the electricity retailing unit will install meters using prepaid cards at places where customers have a demand for purchasing electricity for domestic purpose.

5.Electricity selling price for business

Applicable to all people using electricity for purpose of business and services including:

a) Enterprises, service business store, supermarket, fair, commercial establishments wholesaling and retailing goods and materials including stores selling  pesticide, veterinary drugs, plant varieties, livestock;

b) Establishment trading currency, securities, commercial banks, savings funds, finance companies and securities companies;

c) Business operating establishments of mass media, cable television companies and terrestrial digital television companies

d) Lottery companies;

dd) Insurance operating organization (excluding social insurance and health insurance);

e) Tourism establishments, photography stores, discos, karaoke restaurants and massage;

g) Food and beverage shops, hairdresser’s, laundry, tailor shop, washing car and motorcycle shop;

h) Advertising activities of production, trading and services establishments;

i) Establishments of repair and refurbishment of cars, motorcycles, means of transportation, consumer goods and household appliances;

k) Hotels, motels, guest houses of organizations and individuals; house leased as office whose electricity purchase contract is signed by landlord.

l) Electricity used at the box office, delivery stations, waiting rooms (including lounge) shops, goods stalls at airports, railway stations, bus stations and ports;

m) Electricity used at the toll plaza, parking lot with ticket;

n) Electricity used in the storage of goods in the process of circulation;

o) Offices, head offices of groups, corporations and companies, excluding cases of electricity use specified at Point dd, Clause 1 of this Section;

p) Offices, customer service centers, consulting firms;

q) Business department of the units operating in the field of culture, art, sports and fitness, cultural and information houses, sports gymnasiums, museums and exhibitions;

r) Sports and fitness business establishments such as swimming pools, tennis courts, golf course;

s) Theatre, performance company, cinema companies, theaters, circuses;

t) Electricity used for activities in the field of information, post (excluding universal postal services, mandatory postal services as public services), telecommunications (except the switchboard, transmission network, receiving and broadcasting station of telecommunications companies).

IV. ELECTRICITY SELLING PRICE FOR RURAL AREAS

1. Electricity wholesale price for rural areas

a) Rural electricity wholesale price is the electricity selling price sold by Electricity Corporation and Electricity Company to the rural electricity retailing units.

b) Electricity wholesale price for rural living

- Electricity wholesale price for rural living specified in Article 15 of this Circular applies to the electricity output used for domestic purpose of households consuming electricity at communes, hamlets and villages and purchased by the rural electricity retailing unit at the summation meter placed at the substation, regardless of the seller or purchaser’s substation and voltage level;

- Electricity wholesale price for rural living for the first 50 kWh specified in Clause 2, Article 15 of this Circular applies to the electricity output used of poor and low-income households with the frequent rate of electricity consumption not exceeding 50kWh/month and registered with the electricity selling party;

- Electricity wholesale price for rural living for the entire first 100 kWh and corresponding price for the following ladder specified in Clause 2, Article 15 of this Circular applies for the electricity output of common households and for kWh 51st onwards of poor and registered low-income households  with the electricity seller;

- Total electricity output for each ladder at the summation meter for calculation of electricity charge is equal to the power rate of each ladder specified in Clause 2, Article 15 of this Circular multiplied by the number of poor and registered low-income households  or the number of common household behind that summation meter;

- The number of household using electricity for rural living behind the summation meter is the number of household with permanent residence and long-term temporary residence within the scope of electricity supply from the summation meter and with certification of communal-level public security in charge of inhabitants and rate in electricity sale and purchase contract signed with the rural electricity retailing unit;

- The number of poor and low-income household registered behind the summation meter is determined based on the list of poor and registered low-income households  for application of retail tariff specified in Clause 2, Article 11 of this Circular and certified by the electricity purchaser’s legal representative . The electricity wholesaler may check and require the electricity purchaser to present electricity bill and papers evidencing the registration of poor and low-income households.

- The number of common household is equal to the number of household using electricity for rural living behind the summation meter minus the number of poor and low-income household;

- The calculation of electricity wholesale for rural living in the month of electricity price conversion is as follows: the electricity output of each ladder of electricity wholesale price for rural living applies for old and new price levels calculated by daily rate output multiplied by the actual number of day before and after adjustment of price of conversion month. The daily rate output of each ladder is equal to the output of each ladder divided by the actual number of day in the month of calculation.

c) The electricity wholesale price used for other purposes of electricity purchase behind the summation meter wholesaling rural electricity specified in Clause 3, Article 15 of this Circular applies to the amount of electricity used other than domestic purposes.

d) The electricity output with application of wholesale price for other purposes at the summation meter is determined by the total commercial electricity output used for other purposes measured at retail meters multiplied by 1.1.

dd) The electricity output with application of electricity wholesale price for rural living for poor and registered low-income households  is calculated by the total commercial electricity output of poor and registered low-income households  measured at retail meters multiplied by 1.1.

e) The electricity output with application of electricity wholesale price for rural living for common households is calculated by the total wholesale electricity output at the summation meter minus the electricity output with application of wholesale price of other purpose and the electricity output with application of electricity wholesale price for rural living for registered poor and low-income households;

In case customer using electricity behind summation meter are only registered poor and low-income households with application of electricity retail tariff specified in Clause 2, Article 11 of this Circular and customers using electricity for other purposes, the electricity output for the poor and low-income households is determined by the output at the summation meter minus electricity output with application of wholesale price for other purposes at the summation meter.

In case the customers using electricity behind the summation meter are only the poor and low-income households registering the application of electricity retail tariff specified in Clause 2, Article 11 of this Circular, the electricity wholesale price for the poor and low-income households is applied as specified in Clause 2, Article 15 of this Circular for the total output measured at the summation meter.

For example:

Case 1: The summation meter at a substation supplying power to a hamlet including 200 households for domestic purpose. The power measured at the summation meter in a month is 98,500 kWh. Within the scope of electricity supply behind the summation meter including: the households using electricity for domestic purposes (with 25 households registering tariff for poor and low-income households and total commercial electricity output of these households is 1.050 kWh). A number of households using electricity for other purposes (production, trading and services) having separate meters with the total electricity output of 10.000 kWh measured in a month. The electricity charge which the rural electricity retailing unit has to pay to the Electricity Company for the output measured at this summation meter is calculated as follows:

Case 2: The summation meter at a substation supplying power to a hamlet including 200 households for domestic purpose. The power measured at the summation meter in a month is 98,500 kWh. Within the scope of electricity supply behind the summation meter including: the households using electricity for domestic purposes (with 25 households registering tariff for poor and low-income households and total commercial electricity output of these households is 1.500 kWh). A number of households using electricity for other purposes (production, trading and services) having separate meters with the total electricity output of 10.000 kWh measured in a month. The electricity charge which the rural electricity retailing unit has to pay to the Electricity Company for the output measured at this summation meter is calculated as follows:

g) Within 03 days after reading the summation meter of a period of payment, the rural electricity retailing unit will provide the electricity wholesaler with:

- List of commercial electricity output used for other purposes;

- List of poor and low-income households frequently using less than 50 kWh / month registered with the commercial electricity output of each household;

- List of households increased or decreased (if any) certified by communal-level public security in charge of inhabitants.

Beyond this time limit, if the electricity retailing unit does not fully provide the above documents, the electricity wholesaler may apply the wholesale price for rural living of ladder from 151 to 200 kWh for common households specified in Clause 2, Article 15 of this Circular for the total electricity output at the summation meter.

h) In case the substations of state farms and afforestation yards in rural areas supplying electricity for domestic purpose and other purposes, the wholesale price for rural living will be applied for the total electricity output measured at the summation meter.

2. Electricity retail price for rural areas

The rural electricity retail price is as follows:

a) The electricity retail price for rural living applies the domestic electricity retail tariff specified in Article 11 of this Circular.

b) The electricity retail price for the purpose of production, irrigation pumping, administration and business in rural areas applies the electricity retail tariff for similar purposes according to voltage level specified in Article 7, 8, 9 and 10 of this Circular.

V. ELECTRICITY SALE PRICE FOR TENEMENT HOUSES AND RESIDENTIAL CLUSTERS

1. Wholesale electricity prices for tenement houses and residential clusters

a) The wholesale electricity prices for tenement houses and residential clusters prescribed in Article 16 of this Circular are the wholesale prices at the master electricity meters sold by EVN, electricity companies, or authorized organizations to electricity retailers for selling to customers in areas outside rural areas and industrial zones, or to customers in rural areas but the master electricity meter is put at head of the low-voltage line’s shunt.

b) The wholesale electricity prices for living activities of tenement houses and residential clusters

- The wholesale electricity prices for living activities of tenement houses and residential clusters specified in Article 16 of this Circular are applicable to the power consumption for living activities of the households using electricity from electricity retailers measured by the master electricity meter at the transformer stations, regardless of the voltage levels;

- The wholesale electricity prices for living activities of tenement houses and residential clusters for the first 50 kWh prescribed in Clause 2 Article 16 of this Circular are applicable to the power consumption of poor and low-income households that regularly use no more than 50 kWh per month and have registered with the electricity sellers;

- The wholesale electricity prices for living activities of tenement houses and residential clusters for the first 100 kWh and the progressive prices for the upper levels prescribed in Clause 2 Article 16 of this Circular are applicable to the power consumption of normal households and for the 51^stkWh onwards of the poor and low-income households that have registered with the electricity sellers;

- The power consumption in each level at the master electricity meter to calculate electricity charge is the power consumption quota of each level prescribed in Clause 2 Article 16 of this Circular, multiplied by the number of registered poor and low-income households, or the number of normal households following the master electricity meter;

- The number of households using electricity for living activities of tenement houses and residential clusters following the master electricity meter is the number of households that have permanent residences or long-term temporary residence, within the electricity supply of the master electricity meter, certified by the communal police agencies in charge of residence registration, and the limits in the electricity sale contracts signed with the electricity retailer;

- The number of registered poor and low-income households following the master electricity meter is determined based on the list of poor and low-income households that have registered for application of the retail tariff prescribed in Clause 2 Article 11 of this Circular, and certified by the legal representative of the electricity buyer. The electricity wholesaler may inspect and request the electricity buyer to present the electricity bills and papers proving the registration of the poor and low-income households;

- The number of other normal using-electricity households equals the number of households using electricity for living activities following the master electricity meter minus the number of registered poor and low-income households;

- The wholesale electricity charges for living activities of tenement houses and residential areas in the month when the electricity prices are converted shall be calculated as follows:  the power consumption in each level of the wholesale electricity prices for living activities of tenement houses and residential areas applied to the old and new prices equals the daily consumption limit multiplied by the number of actual days before and after the adjustment of the price of the converted month. The daily consumption limit of each level equals the power consumption of each level divided by the number of actual days in the calculated month.

c) When an electricity retailer buys electricity and sell to tenement houses of officers, workers, public employees, pupils, students, the armed forces, or houses of monks, the wholesale electricity prices shall be calculated as follows:

- If the number of people is identifiable, every 04 people will be considered as a household to charge the progressive electricity prices as prescribed Point b of this Clause;

- If the number of people is not identifiable, the progressive wholesale electricity prices from 151 to 200 kWh in respective areas as prescribed in Clause 2 Article 16 of this Circular shall apply.

d) The wholesale electricity prices for other purposes of tenement houses and residential clusters

- The wholesale electricity prices for tenement houses and residential clusters prescribed in Clause 3 Article 16 of this Circular are applicable to the power consumption for other purposes than living purposes;

- The power consumption that is charged at the other-purpose wholesale prices equals the total commercial power consumption at retail meters for other purposes multiplied by 1.1;

- The power consumption that is charged at the other-purpose wholesale prices applicable to new urban areas and high-rise apartment buildings equals the total commercial power consumption at retail meters for other purposes multiplied by 1.02.

dd) The power consumption that is charged at the wholesale electricity prices for living activities of tenement houses and residential areas applicable to registered poor and low-income households equals the total commercial power consumption of the registered poor and low-income households, measured by retail meters, multiplied by 1.1.

e) The power consumption that is charged at the wholesale electricity prices for living activities of tenement houses and residential areas applicable to normal households equals the total wholesale power consumption at the master electricity meter minus the power consumption that is charged at the other-purpose wholesale prices and the power consumption that is charged at the wholesale electricity prices for living activities of tenement houses and residential areas applicable to registered poor and low-income households.

When the customers using electricity following the master electricity meter only includes the poor and low-income households that register for application of the retail electricity tariff prescribed in Clause 2 Article 11 of this Circular, and the customers that use electricity for other purposes, then the amount of electricity used by poor and low-income households shall equal the power consumption measured by the master electricity meter minus the power consumption that is charged at the other-purpose wholesale prices at the master electricity meter.

When the customers using electricity following the master electricity meter only includes the poor and low-income households that register for application of the retail electricity tariff prescribed in Clause 2 Article 11 of this Circular, then the wholesale electricity prices applicable to the poor and low-income households prescribed in Clause 2 Article 15 of this Circular shall be charged on all power consumption measured by the master electricity meter.

Example:

Case 1: The master electricity meter at a transformer station (invested by the buyer – electricity retailer) supplies electricity for a residential cluster in township, comprising 50 households that use electricity for living purpose. 05 households therein register for the price tariff applicable to poor and low-income households; the total power consumption measured by retail meters of these households is 210 kWh. The power consumption measured by the master electricity meter in a month is 25,000 kWh. Apart from households, in scope of supplying electricity following this master electricity meter, there are some households that use electricity for other purposes (production, trading, and service provision) that have separate meters at household using electricity with total power consumption measured in month of 2,000 kWh.  The electricity charge payable by the electricity retailer to the electricity company for the power consumption measured at the master meter is calculated as follows:

Case 2: The master electricity meter at a transformer station (invested by the buyer – electricity retailer) supplies electricity for a residential cluster in township, comprising 50 households that use electricity for living purpose, 05 households therein register for the price tariff applicable to poor and low-income households, the total power consumption measured by retail meters of these households is 300 kWh. The power consumption measured by the master electricity meter in a month is 25,000 kWh. Apart from households, in scope of supplying electricity following this master electricity meter, there are some households that use electricity for other purposes (production, trading or service provision) that have separate meters at household using electricity with total power consumption measured in month of 2,000 kWh.  The electricity charge payable by the electricity retailer to the electricity company for the power consumption measured at the master meter is calculated as follows:

g) Within 03 days from the date on which the value on the master electricity meter is recorded for a payment period, the electricity retailer must provide for the electricity wholesaler with:

- The statement of commercial electricity consumption used for other purposes;

- The list of registered poor and low-income households that regularly uses less than 50 kWh per month, enclosed with the commercial power consumption of each household;

- The list of the increased or decreased number of households (if any) certified by the communal police agencies.

After the above period, if the electricity retailer fails to provide the above documents, the electricity wholesaler may apply the progressive wholesale electricity prices for living activities from 151 to 200 kWh in respective areas for the normal households prescribed in Clause 2 Article 16 of this Circular applicable to the entire consumption measured by the master electricity meter.

For high-rise apartment buildings in new urban areas and cities, within 03 days from the date on which the value of the master electricity meter is recorded, the electricity retailer must provide the electricity wholesaler with the invoice or the statement of commercial power consumption used for other purposes, the limits of electricity for households buying electricity for living activities certified by the legal representative of the electricity retailer, enclosed with the list of increased or decreased households (if any) certified by the ward police agencies in charge of residence registration, for calculating the electricity bills. After the above period, if the electricity retailer fails to provide the above documents, the electricity wholesaler may apply the progressive wholesale electricity prices for living activities from 201 to 300 kWh for the entire electricity consumption for living activities measured by the master electricity meter.

e) The electricity retailers in the rural areas being converted into urban areas in towns, townships, or cities, or the towns being converted into cities, townships may temporarily keep applying the electricity tariff applicable to the old area within 06 months from the date on which the decision on adjusting the administrative border is made. After the above period, the electricity retailers must apply the electricity prices applicable to the new areas.

Example: The communes A, B, and C have decisions of competent authorities to be converted into wards of a district in city on July 15, 2013. On January 15, 2014 at the latest, the electricity retailers in these communes must change from application of the electricity tariff for rural area to application of electricity tariff for tenement houses and residential clusters in cities, townships.

2.Retail electricity prices for tenement houses and residential clusters

The retail electricity prices for tenement houses and residential clusters shall perform as follows:

a) The retail electricity prices for living activities of tenement houses and residential clusters prescribed in Article 11 of this Circular;

b) The retail electricity prices for the production, non-business administration, and trading at tenement houses and residential clusters shall apply the voltage-based retail electricity tariff for the corresponding purposes prescribed in Article 7, Article 9, and Article 10 of this Circular.

VI. ELECTRICITY PRICES FOR INDUSTRIAL ZONES:

1.Wholesale electricity prices for industrial zones:

a) The wholesale electricity prices sold by electricity companies to electricity retailers in industrial zones are prescribed in Article 17 of this Circular.

b) The wholesale electricity prices prescribed in Clause 1 Article 17 of this Circular are applicable to the industrial zones where the electricity retailers invest in 110kV transformer stations and the medium-voltage line in industrial zones to sell electricity to customers using electricity in industrial zones.  The wholesale electricity prices applicable to each transformer station at 110/35-22-10-6 kV are determined based on the total capacity of the 110kV transformer installed at the station.

Example:  An electricity retailing and management unit in the industrial zone A buys electricity from the electricity seller B at the 110kV bus bar of the 110/22kV transformer station to sell to its customers in the industrial zone at voltage of 22 kV; the 110/22kV transformer station includes 02 transformers, the capacity of each transformer is 40 MVA.  The total capacity of the transformer station is 2x40 MVA = 80 MVA.

The price levels applied as follows:

The electricity retail and management unit at industrial zone A shall sell electricity at voltage of 22 KV to the producers in the industrial zone at the following prices:

c) The wholesale electricity prices prescribed in Clause 2 Article 17 of this Circular are applied in case where the electricity retailer at the industrial zone buys electricity from the electricity seller at the medium-voltage bus bar of the 110/35-22-10-6kV transformer station or at the shunt point of the medium-voltage line, and retails electricity to the customers in the industrial zone at the medium-voltage side of the 35-22-10-6 kV/0.4kV transformer station.

The wholesale prices at the master electricity meter are the retail electricity prices applicable to the production industries prescribed in Article 7 of this Circular at the corresponding voltages minus backward 2%.  The power consumption for calculation of the deducting-backwards price is the actual consumption measured by the master electricity me.

Example:  An electricity retail and management unit at industrial park A buys electricity from the electricity seller at the 22kV bus bar of the 110/22kV station in industrial zone to sell to its customers in the industrial zone at 22kV side of the 22/0.4kV transformer stations:

The electricity retail unit at industrial park A shall pay to the electricity seller at prices as follows:

The retail prices for electricity sold by the electricity retail and management unit at industrial zone A to the customers in the industrial zone at voltage of 22 KV as follows:

d) The wholesale prices prescribed in Clause 3 Article 17 of this Circular are applicable when the electricity retailer at the industrial zone buys electricity from the electricity seller at the medium-voltage side of the 35-22-10-6/0.4kV transformer station, and retail electricity to its customers in the industrial zones at voltage of 0.4kV.

The wholesale prices at the master electricity meter are the retail prices at the corresponding medium voltages applicable to the production industries as prescribed in Article 7 of this Circular.

Example: An electricity retailer at industrial zone A buys electricity from the electricity seller at voltage of 22kV to sell to its customers in the industrial zone at voltage of 0.4 kV:

The electricity retail unit at industrial park A shall pay to the electricity seller at prices as follows:

2.Customer’s retail prices in industrial zones

a) Customer’s retail prices in industrial zones are performed in accordance with subjects and the retail prices prescribed in Chapter II of this Circular.

b) Customer’s retail prices in the industrial zones that buys electricity from the national grid and have generation sources on the spot are prescribed in Article 13 of this Circular.