Circular No. 21/2020/TT-BCT the order and procedures for grant of electricity activity licenses

CIRCULAR

Providing the order and procedures for grant of electricity activity licenses^[1]

Pursuant to the Government’s Decree No. 98/2017/ND-CP of August 18, 2017, defining the functions, tasks, powers and organizational structure of the Ministry of Industry and Trade;

Pursuant to the December 3, 2004 Law on Electricity; and the November 20, 2012 Law Amending and Supplementing a Number of Articles of the Law on Electricity;

Pursuant to the Government’s Decree No. 137/2013/ND-CP of October 21, 2013, detailing a number of articles of the Law on Electricity and the Law Amending and Supplementing a Number of Articles of the Law on Electricity;

Pursuant to the Government’s Decree No. 08/2018/ND-CP of January 15, 2018, amending a number of decrees concerning investment business conditions subject to the state management by the Ministry of Industry and Trade;

Pursuant to the Government’s Decree No. 17/2020/ND-CP of February 5, 2020, amending and supplementing a number of articles of the Decrees concerning investment business conditions subject to the state management by the Ministry of Industry and Trade;

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

The Minister of Industry and Trade promulgates the Circular providing the order and procedures for grant of electricity activity licenses.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

This Circular provides the order and procedures for grant of electricity activity licenses and validity period of electricity activity licenses in the following fields:

1. Specialized electricity consultancy, including:

a/ Work engineering consultancy for hydropower, wind power, solar power and thermal power (coal-fired, gas-fired, oil-fired, biomass-fueled and solid waste-fueled), transmission lines and transformer stations;

b/ Work construction supervision consultancy for hydropower, wind power, solar power and thermal power (coal-fired, gas-fired, oil-fired, biomass-fueled and solid waste-fueled), transmission lines and transformer stations.

2. Electricity generation.

3. Electricity transmission.

4. Electricity distribution.

5. Electricity wholesale.

6. Electricity retail.

Article 2. Subjects of application

This Circular applies to organizations and individuals engaged in electricity activities in the fields of specialized electricity consultancy, electricity generation, electricity transmission, electricity distribution, electricity wholesale, and electricity retail.

Article 3. Cases exempt from electricity activity licenses

1. Generation of electricity for one’s own use and not for sale to other organizations and individuals.

2. Generation of electricity with an installation output of up to 1 MW for sale to other organizations and individuals.

3. Electricity trading in rural areas, mountainous areas and on islands that purchase electricity with an output of under 50 kVA from electricity distribution grids for sale directly to electricity consumers in such areas and islands.

4. Regulation of the national power system and administration of transactions of the electricity market.

Article 4. Principles of granting electricity activity licenses and validity period of electricity activity licenses

1. Prior to the period of competitive electricity retail market, electricity activity licenses in the field of electricity retail shall be granted simultaneously with those in the field of electricity distribution, except the case specified in Clause 2 of this Article.

2. For electricity generation units that register for electricity retail, do not purchase electricity from the national power system and have their own grids for electricity retail: Electricity activity licenses in the field of electricity retail shall be granted simultaneously with those in the field of electricity generation.

3. Electricity generation licenses shall be granted to institutional owners of power plants on a case-by-case basis.

4. The maximum validity period of electricity activity licenses granted to units engaged in electricity activities is as follows:

5. In case of change of names or head office addresses or asset transfer of electricity activity license holders, the validity period of new electricity activity licenses is the same as that of the initial ones.

6. For electricity activity license holders that request a validity period of licenses shorter than that specified in Clause 4 of this Article, their new licenses shall be granted with the requested validity period, except the case specified in Clause 7 of this Article.

7. Based on practical conditions of electricity work items, the electricity activity-licensing agency shall grant electricity activity licenses with a validity period shorter than that specified in Clause 4 of this Article.

Article 5. Scope of operation in fields for which electricity activity licenses are granted

1. The whole country, for specialized electricity consultancy.

2. The scope of management and operation of specific electricity grids, for electricity transmission and distribution.

3. Specific localities, for electricity wholesale and retail.

4. Electricity plants, for electricity generation.

Chapter II

DOSSIERS, ORDER AND PROCEDURES FOR GRANT OF ELECTRICITY ACTIVITY LICENSES

Article 6. Dossier of application for a specialized electricity consultancy license

1. An application for an electricity activity license, made according to Form No. 01 provided in the Appendix to this Circular.

2. A copy of the enterprise registration certificate or establishment decision or establishment certificate (for institutions having no enterprise registration certificate) of the institutional applicant.

3. A list of consultants who hold the titles of manager and chief supervisor and other consultants, made according to Form No. 3a provided in the Appendix to this Circular; copies of university or higher degree, construction practice certificate and definite-term or indefinite-term labor contract of every consultant.

4. Documents proving experiences of consultants (decisions on task assignment and certifications by units having projects joined by consultants or documents of equivalent validity).

Article 7. Dossier of application for an electricity generation license

1. An application for an electricity activity license, made according to Form No. 01 provided in the Appendix to this Circular.

2. A copy of the enterprise registration certificate or establishment decision or establishment certificate (for organizations having no enterprise registration certificate) of the institutional applicant.

3. A list of persons directly in charge of technical management and work-shift heads of the power plant, made according to Form No. 3b provided in the Appendix to this Circular; copies of graduation degree and labor contract with the project owner or operation management unit of every person on such list; documents on training and testing results proving the trainees’ satisfaction of safety requirements and operation certificates of work-shift heads of the power plant granted by the regulatory authority with control right according to the procedures for regulation of the national power system promulgated by the Ministry of Industry and Trade.

4. A copy of the decision of a competent agency approving the policy on investment in the power plant or approving the investment project.

5. A copy of the decision of a competent agency approving the environmental impact assessment report or certification of the environmental protection plan of the power plant investment project in accordance with the law on environmental protection.

6. A copy of the decision of a competent agency approving the reservoir operation process (for hydropower plants).

7. A copy of the minutes of takeover testing of complete installation of the generator unit or solar panel system; copies of documents determining main parameters of the power plant (parameters of turbines, generators or solar panels and converters; and main transformers).

8. A copy of the minutes of takeover testing of complete installation of information technology and telecommunications infrastructure systems to serve the operation of the electricity market; a copy of the minutes of takeover testing of complete installation of the SCADA system to serve the operation of the power system and electricity market (for power plants participating in the electricity market).

9. A copy of the minutes of takeover testing of the hydropower dam, dam and reservoir protection plan, and disaster and emergency response plan (for hydropower plants).

10. For power plants and backup generator units that are not hooked to the power grid and generate electricity only for sale to their customers in case of the national power grid’s blackout, a dossier of application for an electricity activity license is not required to comprise the document specified in Clause 8 of this Article.

Article 8. Dossier of application for an electricity transmission or electricity distribution license

1. An application for an electricity activity license, made according to Form No. 01 provided in the Appendix to this Circular.

2. A copy of the enterprise registration certificate or establishment decision or establishment certificate (for institutions having no enterprise registration certificate) of the institutional applicant.

3. A list of persons directly in charge of technical management and operation work-shift heads, made according to Form No. 3b provided in the Appendix to this Circular; a copy of graduation degree of every person on such list; documents on training and testing results showing the trainees’ satisfaction of safety requirements or electric safety cards as specified in Article 64 of the Law on Electricity, and operation certificates of operation work-shift heads granted by the regulatory authority with control right according to the procedures for regulation of the national power system promulgated by the Ministry of Industry and Trade.

4. A list of main work items of power grids and scope of power grids currently managed by the institutional applicant. In case of purchase and sale, merger or handover of power grid assets without capital reimbursement, there must be a takeover testing minutes or asset handover minutes. 

5. A copy of the agreement of hooking to the national power grid under regulations; a map of the power grid boundaries and operation scope.

Article 9. Dossier of application for an electricity wholesale or electricity retail license

1. An application for an electricity activity license, made according to Form No. 01 provided in the Appendix to this Circular.

2. A copy of the enterprise registration certificate or establishment decision or establishment certificate (for institutions having no enterprise registration certificate) of the institutional applicant.

3. A list of persons directly in charge of business administration, made according to Form No. 3b provided in the Appendix to this Circular; a copy of graduation degree of every person on such list.

Article 10. Dossier of request for modification and supplementation of an electricity activity license

1. In case of change of the name or head office address of a licensee, a dossier must comprise:

a/ An application for an electricity activity license, made according to Form No. 01 provided in the Appendix to this Circular;

b/ A copy of the enterprise registration certificate or establishment decision or establishment certificate (for institutions having no enterprise registration certificate) of the institutional applicant.

2. In case an institutional applicant is transferred assets from a unit licensed for electricity activities, a dossier of application for an electricity activity license of the transferee must comprise:

a/ An application for an electricity activity license, made according to Form No. 01 provided in the Appendix to this Circular;

b/ A copy of the enterprise registration certificate or establishment decision or establishment certificate (for institutions having no enterprise registration certificate) of the institutional applicant;

c/ Documents evidencing the asset transfer; documents evidencing the transfer of personnel or documents on persons directly in charge of technical management and operation management and consultants as specified in Clause 3 of Article 6, Clause 3 of Article 7, Clause 3 of Article 8, and Clause 3 of Article 9 of this Circular in case of a personnel change.

Article 11. Order and procedures for grant, modification and supplementation of electricity activity licenses

1. At least 15 working days before the expected date of official commencement of commercial operation, an organization engaged in electricity generation shall submit a complete dossier of application for an electricity activity license.

2. An organization or individual that applies for, or requests modification or supplementation of, an electricity activity license shall send to the electricity activity-licensing agency 1 dossier specified in Chapter II of this Circular and take responsibility for the accuracy and truthfulness of such dossier.

3. Mode of dossier submission:

a/ Dossiers falling within the licensing competence of the Ministry of Industry and Trade and the Electricity Regulatory Authority of Vietnam shall be submitted via the Public Service Portal at https://dichvucong.moit.gov.vn

Large-sized e-dossiers or documents that are not permitted by law to be sent via the electronic network may be sent directly or by post.

b/ Dossiers falling within the licensing competence of provincial-level People’s Committees shall be sent directly or by post or online via websites (if any) of the licensing agencies.         

4. Order and procedures for online grant, modification or supplementation of electricity activity licenses:

a/ E-dossiers shall be sent and processed under guidance provided on the Public Service Portal of the Ministry of Industry and Trade, specifically as follows:

- An applicant shall register for an account on the Public Service Portal of the Ministry of Industry and Trade and use such account for making declaration and sending its/his/her dossier online;

- Within 60 working days after receiving a request of the electricity activity-licensing agency for supplementation or modification of relevant data, documents and information, the applicant shall supplement or modify relevant data, documents and information on the Public Service Portal of the Ministry of Industry and Trade. Upon the expiration of such time limit, if the applicant fails to modify or supplement its/his/her dossier as requested, the electricity activity-licensing agency shall return the dossier;

- Within 15 working days after receiving a complete and valid dossier on the Public Service Portal of the Ministry of Industry and Trade, the electricity activity-licensing agency shall appraise it and grant an electricity activity license;

- In case of modification or supplementation of an electricity activity license, within 7 working days after receiving a complete and valid dossier on the Public Service Portal of the Ministry of Industry and Trade under Article 10 of this Circular, the electricity activity-licensing agency shall appraise it and grant an electricity activity license.

b/ Provincial-level People’s Committees shall guide the online grant of licenses falling within their competence (if any) in accordance with this Circular.

5. Order and procedures for grant, modification or supplementation of electricity activity licenses not via the network:

a/ Within 3 working days after receiving a dossier of application for, or request for modification or supplementation of, an electricity activity license, the electricity activity-licensing agency shall notify in writing to the applicant in case the dossier is incomplete or invalid, clearly stating reasons and requirements on supplementation or modification of relevant data, documents and information for completion of the dossier; 

b/ Within 60 working days after receiving a request of the electricity activity-licensing agency for supplementation or modification of relevant data, documents and information, the applicant shall supplement or modify relevant data, documents and information and reply in writing. Upon the expiration of such time limit, if the applicant fails to modify or supplement its/his/her dossier as requested, the electricity activity-licensing agency shall return the dossier;

c/ Within 15 working days after receiving a complete and valid dossier, the electricity activity-licensing agency shall appraise it and grant an electricity activity license, except the case specified at Point d of this Clause;

d/ In case of modification or supplementation of an electricity activity license, within 7 working days after receiving a complete and valid dossier under Article 10 of this Circular, the electricity activity-licensing agency shall appraise it and grant an electricity activity license.

6. An electricity activity license shall be granted with 3 originals, of which 1 shall be handed over to the licensee and 2 others kept at the licensing agency.

7. An electricity operation unit that has its license lost or damaged shall make an application according to Form No. 01 provided in the Appendix to this Circular, clearly stating the reason.

Chapter III

COMPETENCE TO GRANT AND MANAGE THE USE OF ELECTRICITY ACTIVITY LICENSES

Article 12. Competence to grant electricity activity licenses

1. The competence to grant electricity activity licenses of the Ministry of Industry and Trade and Electricity Regulatory Authority of Vietnam is provided in Clause 19, Article 3 of the Government’s Decree No. 17/2020/ND-CP of February 5, 2020, amending and supplementing a number of articles of the Decrees concerning investment business conditions subject to the state management by the Ministry of Industry and Trade.

2. Provincial-level People’s Committees shall grant or authorize provincial-level Departments of Industry and Trade to grant electricity activity licenses for:

a/ Electricity generation, for power plants of an output of under 3 MW based in their localities;

b/ Electricity distribution of a voltage of 35 kV in their localities;

c/ Electricity retail of a voltage of 0.4 kV in their localities;

d/ Specialized electricity consultancy, including:

- Consultancy on engineering of transmission lines and transformer stations for a voltage of up to 35 kV, and registration of enterprises in localities;

- Consultancy on construction supervision of transmission lines and transformer stations for a voltage of up to 35 kV, and registration of enterprises in localities.

Article 13. Responsibilities of electricity activity-licensing agencies

1. To receive, appraise, examine and manage dossiers of application for electricity activity licenses; to guide applicants to properly carry out procedures for application for electricity activity licenses specified in this Circular.

2. To settle complaints about electricity activity licenses according to their competence.

3. To modify electricity activity licenses having errors in contents.

4. To examine and supervise the satisfaction of conditions for electricity activities by licensees.

5. To revoke electricity activity licenses falling within their licensing competence.

6. To send decisions on revocation of electricity activity licenses to electricity units having their licenses revoked and related agencies and units; to disclose information on the revocation of electricity activity licenses on their websites within 2 working days after issuing the revocation decisions.

Article 14. Responsibilities of licensed electricity units      

1. To carry out licensed electricity activities.

2. To carry out procedures for requesting modification or supplementation of their electricity activity licenses within 30 days after the occurrence of a change in their names, head office or transaction office addresses, operation forms or scope, or validity period of their licenses.

3. To make dossiers of request for modification of their electricity activity licenses in case part of their operation fields or scope is revoked.

4. To maintain law-specified conditions for electricity activities throughout the course of operation and comply with relevant regulations; to comply with regulations on fire prevention and fighting in electricity generation, transmission and distribution activities.

5. To fully pay charges related to their electricity activity licenses as provided by law.

6. To refrain from renting out, lending or modifying their electricity activity licenses.

7. Before the date of commencement of commercial operation, electricity generation units shall completely:

a/ Enter into electricity purchase and sale contracts under regulations (except hydropower plants on the list of major power plants of special  socio-economic, national defense and security importance approved by the Prime Minister and the list of power plants in coordinated operation with major power plants of special socio-economic, national defense and security importance approved by the Ministry of Industry and Trade; and hydropower plants practicing dependent accounting under the Electricity Corporations as proposed in writing by the Vietnam Electricity Group);

b/ Install SCADA systems to serve the operation of the power system and electricity market under regulations;

c/ Install information technology and telecommunications infrastructure systems to serve the operation of the electricity market (for power plants participating in the electricity market);

d/ Carry out other activities for the management and operation of power plants as specified in relevant legal documents.

8. To submit to examination and inspection and abide by handling decisions of competent state agencies regarding the use of their licenses and satisfaction of conditions for electricity activities in accordance with law.

9. To keep originals of their electricity activity licenses at their head offices and copies thereof at their transaction offices.

10. Within 30 days after being granted an electricity activity license, to send a copy of its license to the local state management agency in charge of electricity.

11. Reporting responsibility

a/ Before March 1 every year, to send reports on their operation in the licensed fields in the previous year, made according to Forms No. 4a, No. 4b, No. 4c and No. 4d provided in the Appendix to this Circular, directly or by post or via email to the electricity activity-licensing agency and provincial-level Departments of Industry and Trade;

b/ To send reports directly or by post to the electricity activity-licensing agency within 60 days before the expected date of electricity activity termination or handover;

c/ To report and provide sufficient and accurate information to the electricity activity-licensing agency and competent agencies at the latter’s request.

10. At least 30 days before the expiration of their electricity activity licenses, if wishing to continue their operation, to make dossiers of application for electricity activity licenses under Clause 2, Article 11 of this Circular and carry out the order and procedures for applying for electricity activity licenses under regulations.

Article 15. Management and operation of power plants in case of lease, hiring or assignment of operation management thereof

1. Project owners of power plants shall take responsibility for their obligations related to the investment in and operation of their plants in accordance with law.

2. Units that are leased or hired power plants or assigned or authorized to manage the operation of power plants shall fulfill all obligations related to the operation of such plants under contracts on lump-sum lease, hiring or assignment of operation management of power plants.

Chapter IV

ORGANIZATION OF IMPLEMENTATION

Article 16. Examination work

1. The Electricity Regulatory Authority of Vietnam shall examine the implementation of this Circular nationwide; address problems and report proposals to the Ministry of Industry and Trade for revision of this Circular.

2. Provincial-level People’s Committees shall examine the implementation of this Circular in their localities; address problems and propose the Ministry of Industry and Trade to revise this Circular.

Article 17. Implementation responsibility

1. The Electricity Regulatory Authority of Vietnam shall receive and carry out procedures for appraising dossiers of application for electricity activity licenses falling within its licensing competence or competence of the Ministry of Industry and Trade.

2. Provincial-level Departments of Industry and Trade shall receive and carry out procedures for appraising dossiers of application for electricity activity licenses falling within the licensing competence of provincial-level People’s Committees when so authorized.

3. Before March 1 every year, provincial-level Departments of Industry and Trade shall send reports, made according to Form No. 5 provided in the Appendix to this Circular, directly or by post or via email to the Ministry of Industry and Trade and provincial-level People’s Committees on grant of electricity activity licenses in their localities in the previous year.

Article 18. Effect

1. This Circular takes effect on October 26, 2020. The Minister of Industry and Trade’s Circular No. 36/2018/TT-BCT of October 16, 2018, on the order and procedures for grant and revocation of electricity activity licenses, and Circular No. 15/2019/TT-BCT of August 26, 2019, amending Clauses 1 and 4, Article 12 of Circular No. 36/2018/TT-BCT, cease to be effective on the date this Circular takes effect.

2. Electricity activity licenses that are modified or supplemented due to changes in names or head office addresses and transfer of assets of licensed electricity units remain valid until the new ones are granted.

3. Electricity units that are granted electricity activity licenses before the effective date of this Circular shall continue complying with contents and validity periods of their licenses and comply with this Circular and relevant regulations issued after their licenses are granted.-

For the Minister of Industry and Trade
Deputy Minister
HOANG QUOC VUONG 

* The Appendix to this Circular is not translated.