Circular 24/2019/TT-BCT amending Circular 45/2018/TT-BCT

CIRCULAR

Amending and supplementing a number of articles of the Circular No. 45/2018/TT-BCT dated November 15, 2018 of the Minister of Industry and Trade, prescribing the operation of competitive wholesale electricity market, and amending and supplementing a number of articles of the Circular No. 56/2014/TT-BCT dated December 19, 2014 of the Minister of Industry and Trade, prescribing methods of determination of electricity generation costs and processes for inspecting power purchase agreement

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

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

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

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

The Minister of Industry and Trade promulgates the Circular onamending and supplementing a number of articles of the Circular No. 45/2018/TT-BCT dated November 15, 2018 of the Minister of Industry and Trade, prescribing the operation of competitive wholesale electricity market, and amending and supplementing a number of articles of the Circular No. 56/2014/TT-BCT dated December 19, 2014 of the Minister of Industry and Trade, prescribing methods of determination of electricity generation costs and processes for inspecting power purchase agreement.

Article 1. To amend and supplement a number of articles of the Circular No. 45/2018/TT-BCT dated November 15, 2018 of the Minister of Industry and Trade, prescribing the operation of competitive wholesale electricity market, and amending and supplementing a number of articles of the Circular No. 56/2014/TT-BCT dated December 19, 2014 of the Minister of Industry and Trade, prescribing methods of determination of electricity generation costs and processes for inspecting power purchase agreement as follows:

1. To amend Clause 13, Article 3 as follows:

“13.Auxiliary servicesmeans services ofsecondary frequency control, fast start and must-run operation reserve, aiming at ensuring power system security, voltage regulation and black start.”.

2. To amend Clause 14, Article 3 as follows:

“14. Frequency control reserve service means an auxiliary service for supporting secondary frequency control in accordance with the Regulation on electricity transmission system as prescribed by the Ministry of Industry and Trade.”.

3. To amend Article 7 as follows:

“Article 7. Registration for participation in the electricity market

1. With regard to generating units

a)Generating units will be eligible to participate in the electricity market if they fully satisfy the following requirements:

-Having an electricity activity license in the power generation industry that still remains valid;

- Completingthe pre-acceptance testing and commissioning of systems as specified in Clause 5, Article 4 of this Circular;

- Completing the signing of the power purchase agreement and the document certifying the date of commercial operation of the power plant;

- Agreeing on a unit representing a group of cascade hydropower plants to make price offers (in case they are the representative for a group of cascade hydropower plants).

b) 07 working days before the deadline for participation in the electricity market as prescribed in Article 6 of this Circular, the generating unit shall send 01 set of dossier of registration for electricity market participation on behalf of each power plant to the power system and market operating unit through the electricity market website. The power system and market operating unit shall assume the responsibility for guiding relevant units on the components of the electricity generating unit s dossier of registration for participation in the electricity market.

2. With regard to wholesale buyers

a) Wholesale buyers will be eligible to participate in the electricity market if they fully satisfy the following requirements:

- Having an electricity activity license that still remains valid;

- Meeting the regulations on metering of electrical power at their prescribed measurement and delivery boundary points;

- Completing the acceptance testing, commissioning and operation of the remote measurement data collection system at measurement boundary points within their remit, the local area network for communication of information about the electricity market and their digital signature.

b) 07 working days before the deadline for participation in the electricity market as prescribed in Point b, Clause 2, Article 6 of this Circular, the power wholesale buyer shall send 01 set of dossier of registration for electricity market participation to the power system and market operating unit through the electricity market website. The power system and market operating unit shall assume the responsibility for guiding relevant units on the components of the power wholesale buyer s dossier of registration for participation in the electricity market.”.

4. To amend Article 16 as follows:

“Article 16. Determination of contractual output quantity

1. General provisions

a) The generating unit and the electricity buyer shall be responsible for negotiating, agreeing about and setting out terms of the power purchase agreement on the rate of power output quantity settled at the contractual price within the price range as prescribed at Point b of this Clause, or the annually contractual output produced in a year (or each year of a multi-year period);

Based on the annually contractual output agreed upon in the power purchase agreement, the generating unit and the electricity buyer shall calculate and agree on the allocation of the contractual output into specific months of a year. In case where the contracting parties do not agree on the monthly contractual output, the electricity system and market operating unit shall calculate the monthly contractual output in accordance with the provisions of this Circular.

b) Rate of power output quantity settled at the contractual price shall not be higher than 100% and not be less than 60%;

c) With regard to the power plants bound by fuel underwriting arrangements and obtaining competent state agency s written consent to the horizontal transfer of their fuel underwriting regulations in the fuel supply agreement to the power purchase agreement: The generating unit and the buyer shall assume the responsibility for reaching an agreement on the annually contractual output, in which the annually contractual output must not be lower than the power output quantity corresponding to the annual fuel underwriting amount of the power plant with account taken of its usability during the year.

2. With regard to power plants already entering into agreements with the Vietnam Electricity

a) Annually contractual output:

- In case where the generating unit and the Vietnam Electricity agree on the rate of electricity settled at the contract price for year N+1 (except the annually contractual output and the monthly contractual output in year N+1) in accordance with Point a, Clause 1 of this Article, by November 15 of year N, they shall provide such data to the electricity system and market operating unit to calculate the contractual output of year N+1 in accordance with Clause 1, Article 27 of this Circular;

- In case where the generating unit and the Vietnam Electricity agree on the contractual output of year N+1 in accordance with Point a, Clause 1 of this Article, by November 15 of year N, they shall provide such data to the electricity system and market operating unit to calculate the contractual output of specific months of year N+1 in accordance with Clause 2, Article 27 of this Circular;

- In case where the generating unit and the Vietnam Electricity fail to agree on the rate of electricity settled at the contract price for year N+1 and the annually contractual output for year N+1 in order to provide such data to the electricity system and market operating unit by November 15 of year N, they shall comply with the regulations specified in Clause 5 of this Article.

b) Monthly contractual output quantity:

- In case where the generating unit and the Vietnam Electricity agree on the contractual output of specific months of the year in accordance with Point a, Clause 1 of this Article, by November 15 of year N, they shall provide the data on the contractual output of specific months of year N+1 for the electricity system and market operating unit in order to allocate the contractual output over specific trading periods in accordance with the provisions of Article 38 of this Circular. In year N+1, in case where the generating unit and the Vietnam Electricity negotiate and agree on adjustment of the contractual output of month M, they shall assume the responsibility for providing such adjusted output data for the electricity system and market operating unit by the 20^th day of month M-1;

- In case where the generating unit and the Vietnam Electricity agree on the contractual output of specific months of the year, based on the annually contractual output quantity as specified at Point a of this Clause, the electricity system and market operating unit shall calculate the monthly contractual output in accordance with the provisions of Clause 2, Article 27 of this Circular in order to serve the implementation by the generating unit and the Vietnam Electricity.

c) Contractual output quantities of specific trading periods: The electricity system and market operating unit shall calculate contractual output quantities of specific trading periods in accordance with monthly contractual output quantities as specified at Point b of this Clause as well as in compliance with the principles specified in Article 38 of this Circular.

3. With regard to a power plant that has signed agreements with the Vietnam Electricity, they shall be entitled to allocate the following output quantities to electricity wholesale buyers and power plants that have signed agreements with the electricity wholesale buyer:

a) Annually and monthly contractual output quantities in accordance with the regulations stipulated in Clause 1 of this Article and calculated according to the principles specified in Clause 2 of this Article;

b) In case where the generating unit and the Vietnam Electricity fail to agree on the rate of electricity settled at the contractual price and the annually contractual output quantities of power plants, they shall comply with the regulations as prescribed in Clause 5 of this Article;

c) The contractual output quantities in specific trading periods of the power plant that are determined by the electricity system and market operating unit in the month-ahead operational plan based on the distribution of the monthly contractual output quantities into trading periods of the month shall comply with Article 40 of this Circular;

4. With regard to newly-built power plants (put into commercial operation after the effective date of this Circular):

a) 90 days before the scheduled deadline for commercial operation of the power plant, the generating unit and the electricity buyer shall assume the responsibility for negotiating and agreeing about the rate of power output quantity settled at the contractual price or the annually contractual output as prescribed in Point a, Clause 1 of this Article in the power purchase agreement;

b) Monthly contractual output quantities:

- In case where the generating unit and the power buyer negotiate and agree on contractual output quantities of specific months of the year in the power purchase agreement, by the 20^th day of month M, they shall provide the data on the contractual output of month M+1 for the electricity system and market operating unit in order to allocate contractual output quantities into specific trading periods of month M+1;

- In case where the generating unit and the power buyer fail to agree on the contractual output quantities of specific months of the year, based on the annually contractual output quantity as prescribed in Point a of this Clause, the electricity system and market operating unit shall calculate monthly contractual output quantities as specified in Clause 2, Article 27 of this Circular.

c) Contractual output quantities of specific trading periods: Unless otherwise agreed upon in the power purchase agreement, the contractual output quantities of specific trading periods of power plants shall be determined by the electricity system and market operating unit in the process of formulation of the month-ahead operation plan based on the distribution of the monthly contractual output quantities into monthly trading periods in accordance with Articles 38 and 40 of this Circular.

5. In case where a power plant has signed agreements, but failed to agree on the rate of power output quantity settled at the contractual price or the contractual output quantity in year N+1 with the Vietnam Electricity or the electricity wholesale buyer as specified in Clause 1 of this Article in order to provide power quantity data to the electricity system and market operating unit by November 15 of year N:

a) The generating unit and the electricity buyer shall assume the responsibility for reporting to the Electricity Regulatory Authority as well as keeping the electricity system and market operating unit updated with the following contents by November 20 every year:

- The issues that both units fail to agree upon and each unit s argument on unanimous issues;

- Statistics of actual generation output and contractual generation output recorded in the latest 05 years;

- Estimated abnormalities arising in the upcoming year;

- Recommendations of each unit about the rate of power generation settled at the contractual price and contractual output quantities.

b) Based on the reports of the generating unit and the electricity buying unit, the electricity system and market operating unit shall assume the responsibility for proposing plans on the rate of power output settled at the contractual price in the upcoming year as specified at Point b, Clause 1 of this Article, and sending the final report to the Electricity Regulatory Authority;

c) The Electricity Regulatory Authority shall take charge of and collaborate with the generating unit and the electricity buyer in enabling involved units to negotiate and agree on the rate of electricity output settled at the contract price or the annual contractual output as prescribed in Clause 1 of this Article;

d) In case where the contracting parties still fail to agree upon the rate of electricity output settled at the contractual price or the annually contractual output, by December 10 of year N, based on calculation results of the electricity system and market operating unit as specified at Point b of this Clause, the Electricity Regulatory Authority shall announce the rate of electricity output settled at the contractual price of year N+1 for contracting parties in order to comply during the period of pending agreement in the power purchase agreement, subject to the following regulations:

- The rate of electricity output settled at the contractual price announced by the Electricity Regulatory Authority in accordance with the range specified at Point b, Clause 1 of this Article;

- Based on the rate of electricity output settled at the contractual price announced by the Electricity Regulatory Authority, the electricity system and market operating unit shall assume the responsibility for calculating the annually and monthly contractual output quantities as prescribed in Article 27 of this Circular and notifying the generating unit as well as the electricity buyer to act in accordance with electricity market operation regulations of this Circular;

dd) During the period of application of the rate of electricity output settled at the contractual price announced by the Electricity Regulatory Authority, the generating unit and the electricity buyer shall continue to reach agreement on the contractual output quantities of the remaining months in the year. In case where the generating unit and the power buyer have reached agreement on contractual output quantities of the remaining months of the year, and informed such output data to the power system and market operating unit, they shall assume the responsibility for reporting on agreed-upon contractual output quantities and implementation schedule to the Electricity Regulatory Authority;

e) By June 15 of the year of operation, the Electricity Regulatory Authority shall assume the prime responsibility for, and liaise with the generating unit and the electricity buyer that fail to agree on the contractual output in, clarifying options of both parties, negotiating and agreeing on a the contractual output quantities of the remaining months of the year. In case where the generating unit and the electricity buyer still fail to agree, the following actions shall be taken:

- Continuing to apply he rate of electricity output settled at the temporary contractual price announced by the Electricity Regulatory Authority as specified at Point d of this Clause until both parties reach agreement or until the end of the year of operation, whichever comes first;

- Continuing to agree on the rate of power output settled at the contractual price and the contractual output.  In case where both parties reach agreement, they shall notify the electricity system and market operating unit according to the schedule of operation of the monthly electricity market operation plan and report to the Electricity Regulatory Authority.”.

6. Adjustment of contractual output quantities:

a) Adjustment of monthly contractual output quantities:

- In case where the generating unit and the electricity buyer agree on the monthly contract output, or clauses related to adjustment of the monthly contract output (cases of adjustment, adjustment principles) in the power purchase agreement before the month of operation, the adjustment of the monthly contract output shall comply with the regulations specified in the power purchase agreement, not falling within the scope of application of this Circular. The relevant units shall assume the responsibility for informing the electricity system and market operating unit of the agreed-upon clauses in order to support electricity market operation activities;

- In case where the monthly contractual output is calculated by the system and market operating unit in accordance with Clause 2, Article 27 of this Circular, and unless otherwise agreed upon in terms of adjustment of the monthly contractual output in the power purchase agreement, contractual output adjustment shall be comply with the principles as prescribed in Article 37 of this Circular.

b) Adjustment in contractual output quantities of specific trading periods:

- In case where the generating unit and the electricity buyer agree on the contractual output quantities of specific trading periods, or clauses related to adjustment of the contractual output quantities of specific trading periods (cases of adjustment, adjustment principles) in the power purchase agreement, the adjustment of the contractual output quantities of specific trading periods shall comply with the regulations specified in the power purchase agreement. The relevant units shall assume the responsibility for informing the electricity system and market operating unit of the agreed-upon clauses in order to support electricity market operation activities;

- In case where the contractual output quantities of specific trading periods are calculated by the system and market operating unit in accordance with Article 38 and Article 40 of this Circular, and unless otherwise agreed upon in terms of adjustment of the contractual output quantities of specific transaction periods in the power purchase agreement, the adjustment of contractual output quantities of specific trading periods shall comply with the principles as prescribed in Article 39 of this Circular.

5. To amend Clause 1 of Article 20 as follows:

“1. Types of auxiliary services provided to operate the electricity system in the power market, including:

a) Secondary frequency control;

b) Fast start;

c) Voltage regulation;

d) Black start;

dd) Must-run operation reserve provided for electricity system security purposes.”.

6. To amend Clause 2 of Article 23 as follows:

“2. The price ceiling of the electricity market for year N is not higher than 115% of the highest price ceiling amongst quotations that thermal power sets are directly providing in the electricity market.”.

7. To amend Clause 1 of Article 27 as follows:

 “1. Determination of the annually contractual output quantity

Aggregate annually contract output of the power plant shall be determined according to the following steps:

a) Formulating the next year’s plan for operation of the electricity system according to the approach to the conditional generation scheduling.  Input parameters used for planning the formulation of the next year’s electricity system are variable prices of thermal power plants, hydrological characteristics and technical specifications of power plants;

b) Aggregate annual planned output of the power plant shall be calculated according to the following formula:

Where:

AGO: Year-N aggregate annual planned output of the power plant (kWh);

EGO: Year-N estimated generation output of the power plant as specified in the plan for operation of the next year’s power system which is converted at metering points (kWh);

GO: Average multi-year generation output of the power plant which is regulated in the power purchase agreement (kWh);

a, b: Variable coefficient of annual generation output announced by the Ministry of Industry and Trade, unless otherwise agreed upon by the generating unit and the electricity buyer in the power purchase agreement.

c) Aggregate annual contractual output of the power plant shall be calculated according to the following formula:

Q_c = α x AGO

Where:

Q_c: Year-N gross contractual generation quantity of year N (kWh);

AGO: Year-N aggregate annual planned output of the power plant (kWh);

α: Rate of output of electricity settled at the contractual price in year N (%).”.

8. To amend Point b, Clause 2 of Article 29 as follows:

“b) Confirming in electronic document or paper document (in case the electronic document management system fails) of the annually and monthly contractual output quantities of the power plant between the generating unit and the Vietnam Electricity.”.

9. To amend Point b, Clause 3 of Article 29 as follows:

“b) The generating unit and the wholesale buyer shall confirm in electronic document or paper document (in case the electronic document management system fails) of the annually and monthly contractual output quantities of the power plant”.

10. To amend Article 36 as follows:

“Article 36. Calculation of the monthly output quantities of power plants newly participating in the electricity market in the middle of operation year

Except the case where the contractual output is negotiated and agreed upon in the power purchase agreement, the contractual output of the power plant newly entering into the electricity market in the middle of the operation year shall be determined according to the following steps:

1. By the 20^th day of month M, the generating unit that plans to put their power plant into commercial operation in the month M+1 shall assume the responsibility for providing economic and technical information of such power plant to the electricity system and market operating unit in order to calculate the operational plans for the next month and later in the year N.

2. The electricity system and market operating unit shall assume the responsibility for calculating the monthly contractual output for the power plant (from the month of entering into the electricity market until the end of year N) in the month-ahead electricity market operation plan.

3. The monthly contractual output of such power plant shall be calculated according to the following formula:

Where:

: Monthly contractual output of the power plant (kWh);

: Planned output determined according to the updated approach to operation of the electricity system in the next month and the remaining months of year N of the power plant, being converted at the delivery point (kWh);

α: Rate of output of electricity settled at the contractual price in year N (%).”.

11. To amend Clause 3 of Article 37 as follows:

“3. Adjustment of monthly contractual output quantities of hydropower plants with reservoirs storing water for more than 01 week:

a) The monthly contractual output of a hydropower plant with its reservoir storing water for more than 01 week may be adjusted if there is any variable in the following data:

- Historical average water flow and forecasted water flow data is used for formulating the next year s operational plan;

- Actual generation output of the power plant is converted at the delivery point and the contractual output;

- The proposed usable volume at the beginning of the calculation period in the month M+1 and the usable volume of the reservoir at the beginning of the calculation month as specified in the annual plan;

- Monthly contractual output of month M+1 and expected mobilized output converted at the delivery point in the approved operation plan of month M+1;

- Estimated water level at the beginning of the month M + 1 and the minimum water level specified in the reservoir operation procedures issued by competent authorities.

b) Increasing adjustment of the contractual output of the hydropower plant with its reservoir storing water for more than 01 week may be made only in case where the aggregate monthly contractual output of the power plant participating in the electricity market is lower than 95% of total planned generation output (converted at the delivery point) of power plants in accordance with the monthly operation plan;

c) Specific conditions for consideration of contractual output adjustment and adjustment principles shall comply with the provisions of the settlement calculation procedures in the electricity market issued by the Electricity Regulatory Authority.”.

12. To amend Clause 5 of Article 37 as follows:

“5. In case where the approved usable monthly output of month M+1 of the power plant does not correspond to the monthly contractual output, the monthly contractual output may be adjusted to be equal to the usable output of that month. The generating unit shall assume the responsibility for providing the electricity system and market operating unit with information on the plan for supply of fuels (certified by the fuel supplier) to the thermal power plant by the 20^th day of month M in the next month as a basis for calculation of data for formulation of the month-ahead operation plan and consideration of any contractual output adjustment in this case (if necessary).”.

13. To supplement Point d, Clause 1 of Article 39 as follows:

“d) In case where the coal-fired power plant suffers a shortage of fuel, resulting in the situation where the power output corresponding to the capacity specified in the next day s price offer of the power plant is lower than its contractual output.”.

14. To amend Clause 4 of Article 39 as follows:

“4. In the cases specified at Point c and d, Clause 1 of this Article, the contractual output of gas turbine and coal-fired thermal power plants in trading periods shall be adjusted to be equal to the actual output at the delivery point of the power plant.”.

15. To amend Clause 1 of Article 42 as follows:

“1. The electricity system and market operating unit shall assume the responsibility for calculating and announcing weekly contractual output, and distributing weekly contractual output quantities into each week trading period of the hydropower plant with its reservoir storing water for the period from 02 days to 01 week in accordance with the following principles:

a) By 15:00 p.m. Wednesday each week, the electricity system and market operating unit shall assume the responsibility for calculating the weekly contractual output of the power plant with its reservoir storing water from 02 days to 01 week according to the following formula:

Where:

: Week-ahead contractual generation quantity (kWh);

EGO_T: Week-ahead estimated output of the power plant according to the electricity system and market operation plan (kWh);

α: Rate of output electricity settled at the contractual price (%) of the power plant which is agreed upon between the generating unit and the electricity buyer in the power purchase agreement as specified at Point b, Clause 1, Article 16 of this Circular. In case where the generating unit and the electricity buyer do not reach any agreement, the rate of electricity output settled at the contractual price shall be determined according to Clause 5, Article 16 of this Circular.”.

b) By 15:00 p.m. Wednesday every week, the electricity system and market operating unit shall assume the responsibility for allocating weekly contractual output quantities of power plants with their reservoirs storing water from 02 days to 01 week according to the following formula:

Where:

i: Trading period i within week;

I: Total number of trading periods within week;

: Contractual output of the power plant in the trading period i (kWh);

: Expected generation quantity of the power plant in the trading period i according to the electricity system and market operation plan in the next week (kWh);

: Weekly contractual output of the power plant calculated at Point a of this Clause (kWh).

c) In case where the contractual output of hydroelectric plants is smaller than the lowest stable generation capacity, it may be adjusted to 0 MW or the lowest stable generation capacity;

d) During the flood control and irrigation period, in case where the contractual output of the hydropower plant in the trading period i is lower than the generation capacity to ensure the minimum water release requirement, the contractual output of the power plant in these periods may be adjusted accordingly so that the hydropower plant ensures the fulfillment of requirements related to flood prevention and irrigation;

dd) The aggregate output difference due to adjustment as specified at Point c of this Clause shall be allocated in ratio to power demand in accordance with the principle of ensuring that the weekly contractual output remains unchanged.”.

16. To amend Article 43 as follows:

“Article 43. Price ceilings of quotations of hydropower plants

1. Except for the case specified in Clause 3 of this Article, the price ceiling of quotation of the hydropower plant with its reservoir storing water for over 01 week shall be determined based on the week-ahead water value of that power plant which is announced in accordance with the provisions of Article 41 in this Circular, specifically as follows:

a) Price ceiling of quotation shall be equal to the greatest value of:

- 120% of water value of the hydropower plant;

- Average price of price ceilings of quotations of thermal power generating sets that participate in the electricity market as specified in the monthly operation plan.

b) In a monthly basis, the electricity system and market operating unit shall assume the responsibility for announcing the average price of price ceilings of quotations of thermal power generating sets in the next month to hydroelectric plants and the schedule of announcement of price ceilings of thermal power plants in the next month.

2. Except for the case specified in Clause 3 of this Article, the price ceiling of quotation of the hydropower plant with its reservoir storing water from 02 days to 01 week shall be equal to the greatest value of:

- 120% of the greatest water value of the hydropower plant that participate in the electricity market;

- Average price of price ceilings of quotations of thermal power generating sets that participate in the electricity market as specified in the monthly operation plan.

3. Price ceilings of quotations of hydropower plants determined in special cases

a) The price ceiling of quotation of the hydropower plant in the cases specified at Points b and c of this Clause shall be determined according to the following formula:

P_tr = 1.2 x max (P_gtn ; P_DOmax)

Where:

P_tr: Price ceiling of quotation of hydropower plant applied in special cases (VND/kWh);

P_gtn: Water value of hydropower plant (VND/kWh);

P_DOmax: Variable cost of the most expensive DO-engine thermal power generating set (d/kWh).

b) In case where the reservoir of the hydropower plant violates the water level limit of the first week, the price ceiling of quotation of this hydropower plant applied in the next week shall be determined in accordance with Point a of this Clause. When ensuring that the weekly water level limit is not violated, the power plant may continue to apply the price ceiling of quotation as prescribed in Clause 1 or Clause 2 of this Article from Tuesday of the following week. In a monthly basis, the electricity system and market operating unit shall assume the responsibility for announcing the variable cost of the most expensive DO-engine thermal power generating set in the electricity system;

c) In case where the hydropower plant is located in an area where the power reserve is less than 5% as announced in accordance with the provisions of the Procedures for medium and short-term electricity system security assessment issued by the Electricity Regulatory Authority for the purposes of guiding the implementation of the Regulation on electricity transmission systems promulgated by the Ministry of Industry and Trade, the price ceiling of quotation of any hydropower plant in this area within the assessment week shall be determined in accordance with the provisions of Point a of this Clause. In case where the power reserve of an area is equal to or higher than 5%, the power plant in this area shall continue to apply the price ceiling of quotation as prescribed in Clause 1 and Clause 2 of this Article.

4. In a weekly basis, the electricity system and market operating unit shall assume the responsibilities for:

a) Calculating the price ceiling of quotation of generating sets of power plants that participate in the electricity market in accordance with Clause 1, Clause 2 and Clause 3 of this Article;

b) Announcing the results of calculation of the price ceiling of quotation of each generating set of the hydropower plant participating in the electricity market applicable for the next week and input data used for calculation, including the data related to water value, variable cost of the most expensive DO-engine thermal power set within the power system, average price of price ceilings of quotations of thermal power generating sets participating in the electricity market according to the monthly operation plan.

5. Hydropower plants that participate in the electricity market shall assume the responsibilities for:

a) Making price offers in compliance with regulations of quoted price ceilings and price floors;

b) Meeting requirements for downstream water demand constraints and other hydrological constraints”.

17. To amend Point d, Clause 1 of Article 46 as follows:

“d) Containing information about technical parameters of a generating set, including:

- Announced generation capacity of the generating set for day D;

- Lowest stable generation capacity of the generating set;

- Speed ​​of increase and decrease of the maximum capacity of the generating set;

- Technical restrictions in case of concurrent operation of generating sets;

- Fuel condition of the thermal power plant.”.

18. To amend Point g, Clause 1 of Article 46 as follows:

“g) Hydropower plants can make quotations including the first capacity ranges of 0 MW in each trading period.  With regard to hydropower plants with water-regulating capacity of more than 02 days, the last quoted capacity range must be equal to the announced capacity. In case where the water level of the hydropower reservoir falls to the dead water level, they can adjust the announced capacity to 0 MW;”

19. To amend Point b, Clause 2 of Article 46 as follows:

“b) Quotation of a hydropower plant that violates the water level limit for 02 consecutive weeks:

- The portion of output corresponding to the demand for downstream water supply at the request of the competent authority may be quoted at the floor price.

- The remaining output may be quoted at the price ceiling of the quotation applied to the hydropower plant that violates the water level limit for 02 consecutive weeks as prescribed at Point a, Clause 3, Article 43 of this Circular.”.

20. To amend Point c, Clause 1 of Article 47 as follows:

 “c) In case where generating sets face any breakdown that stops or reduces the usable capacity, or are repaired off the plan approved by the electricity system and market operating unit in accordance with the Regulation on transmission electricity systems promulgated by the Ministry of Industry and Trade, the bidding unit may make adjustment to reduce the announced capacity and resubmit the price quotation for these generating sets;”.

21. To amend Clause 1 of Article 54 as follows:

“1. Estimated mobilized capacity, including the capacity mobilized for frequency control reserve service of generating sets in each day-ahead trading period, and the area-specific margin prices in specific day-ahead trading periods.”.

22. To amend Article 59 as follows:

“Article 59. Adjustment of announced generation output quantities of power plants

Before the scheduling of mobilization of output quantities in the next trading period, the electricity system and market operating unit shall be entitled to adjust the generation quantities of the multi-purpose strategic hydropower plant and the power plants that automatically control the active generation output in accordance with the provisions of the national electricity system dispatch procedures issued by the Ministry of Industry and Trade for the next trading period which has been announced in line with Clause 1 of Article 54 in this Circular.

1. The output quantities of multi-purpose strategic hydropower plants for the next trading period shall be adjusted in the following cases:

a) Any hydrological anomalies occur;

b) Any warnings about shortage in capacity compared to the day-ahead mobilization schedule are issued;

c) Written directives issued by competent state authorities for regulating reservoirs of multi-purpose strategic hydropower plants to serve flood control and irrigation purposes.

2. The range of adjustment of the announced output of a multi-purpose strategic hydropower plant in the cases specified at Point a and Point b, Clause 1 of this Article is ±5% of total installed capacity of multi-purpose strategic hydropower plants in the power system, exclusive of the capacity portion intended for frequency control reserve service.

3. With regard to power plants that carry out self-control of generation of active power as prescribed in the national electricity system dispatch procedures issued by the Ministry of Industry and Trade, the announced output shall be adjusted to suit the actual operating conditions of these power plants and the power system.”.

23. To amend Point a, Clause 2 of Article 60 as follows:

“a) The electricity system and market operating unit shall set the schedule for mobilization of generating sets in the following order:

- According to quotations intended for setting that schedule;

- Adjusted generation output provided by multi-purpose strategic hydroelectric plants;

- Generating sets providing fast-start reserve service according to day-ahead mobilization schedules;

- Generating sets providing must-run operation reserve service for electricity system security purposes;

- Reductions in the capacity of frequency control reserve service to the permissible lowest level.”.

24. To amend Clause 3 of Article 60 as follows:

“3. Scheduling of mobilization of the next trading period in case of capacity redundancy

The electricity system and market operating unit shall assume the responsibility for adjusting the schedule of the mobilization of generation output quantities for the next trading period by taking measures in the following order:

a) Halting generating sets voluntarily stopping power generation;

b) Minimizing the generation capacity of generating sets providing frequency control reserve service;

c) Gradually decreasing the generation capacity of generating sets appearing in mobilization order in the list of generating sets that has been compiled in accordance with Article 53 of this Circular;

d) Decommissioning generating sets with slow start-up in mobilization order in the list of generating sets that has been compiled in accordance with Article 53 in this Circular.”.

25. To amend Clause 2 of Article 63 as follows:

“2. In case where the reservoir of the power plant has violated the weekly water level limit for 02 consecutive weeks, starting from 00:00 a.m. of Tuesday in the next week, the electricity system and market operating unit shall schedule mobilization of this power plant based on the default quotation as specified at Point b, Clause 2 of Article 46 in this Circular to bring the reservoir s water level to the weekly water level limit.”.

26. To amend Clause 2 of Article 64 as follows:

“2. In case of power market interference, the electricity system and market operating unit shall assume the responsibility for mobilization of generating sets to ensure the targets in the following priority order:

a) Ensuring the balance between power generation and power demand;

b) Satisfying requirements of frequency control reserve service;

c) Satisfying requirements of voltage quality.”

27. To amend Point c, Clause 2 of Article 74 as follows:

“c) Before 12:00 p.m. of the day D+4, the transmission network operator, the generating unit and the electricity buyer shall check and reconcile power measurement data in order to detect any changes and events leading to differences in generation output quantities, and send confirmation about reconciled measurement data to the electricity system and electricity market operating unit. After this time, the electricity system and market operating unit will not receive any feedback on changes related to the measurement data of day D. In case where there is no response from the relevant units sent to the power market website before 12:00 p.m. of day D+4, it shall be considered that they have confirmed, and the electricity system and market operating unit are not responsible for addressing any late feedbacks;”.

28. To amend Clause 2 of Article 92 as follows:

“2. The cost of electricity purchase in the spot electricity market of the electricity wholesale buyer 1 in the settlement period for the power plant g having the power purchase agreement with the electricity wholesale buyer shall be determined according to the following formula:

Where:

i: Trading period i belonging in the settlement period;

I: Total number of trading periods in the settlement period;

g: Power plant entering into the power purchase agreement with the electricity wholesale buyer;

TCm2(l,g,M): The cost of electricity purchase in the spot electricity market of the electricity wholesale buyer 1 in the settlement period M from power plants g entering into the power purchase agreement with the electricity wholesale buyer (Vietnam dong);

Cm2 (l,g,i): The cost of electricity purchase at the spot electricity buying price of the electricity wholesale buyer 1 in the trading period i from the power plant g entering into the power purchase agreement with the electricity wholesale buyer (Vietnam dong);

UpliftM(g): Variable share of the spot electricity market price applicable to the wholesale buyer of the power plant g in the settlement period M which is calculated by the electricity system and market operating unit on the basis of data provided by the generating unit after the month of operation according to the following formula:

Where:

g: Power plant entering into the power purchase agreement with the electricity wholesale buyer;

i: Trading period i belonging in the settlement period M;

I: Total number of trading periods belonging in the settlement period M;

L: Total number of wholesale buyers;

Rg (M): Total settlements made at the system marginal price in the settlement period M of the power plant g according to the monthly electricity market settlement statement issued by the electricity system and market operating unit. This is calculated according to the provisions of Article 88 of this Circular (Vietnam dong);

R^g_cam=n (M): Total revenue determined at the capacity-add-on price in the settlement period M of the power plant g according to the monthly electricity market settlement statement issued by the electricity system and market operating unit. This is calculated under the provisions of Article 89 in this Circular (Vietnam dong);

Cm₂ (l,g,i): The cost of electric power purchased at the spot electricity market price of the electricity wholesale buyer 1 in the trading period i from the power plant g. This is calculated according to Point b of Clause 3 of Article 91 in this Circular (Vietnam dong);

Qm₂ (l,g,i): The quantity of electric power purchased at the electricity market price of the electricity wholesale buyer 1 in the trading period i from the power plant g. This is calculated according to Point c of Clause 2 of Article 91 in this Circular (kWh).”.

29. To amend Clause 1 of Article 96 as follows:

“1. Settlements made at the electricity market price: These settlements shall be subject to regulations as specified in Clauses 2 and 6 of Articles 88 and 89 in this Circular.”.

30. To amend Clause 2 of Article 97 as follows:

“2. In case where the thermal power generating set has to stop as prescribed at Point d, Clause 3, Article 60 of this Circular, or a boiler of that set has to stop to reduce the capacity as prescribed at Point b, Clause 3, Article 60 of this Circular, start-up costs under terms and conditions of the power purchase agreement between the Vietnam Electricity and the generating unit shall be settled. The electricity system and market operating unit shall confirm this event for the set announced by the generating unit as a basis for the electricity buyer to settle start-up costs.”.

31. To amend Clause 7 of Article 97 as follows:

“7. In case where the hydropower generating set has to have the generation capacity greater than the announced capacity as specified in the quotation for scheduling of mobilization of generation quantities for the next trading period at the request of the electricity system and market operating unit for system security reasons. The total output of the plant’s generation of power to the grid during this period shall be paid in accordance with the regulations of the power purchase agreement with the Vietnam Electricity.”.

32. To supplement Clause 9 of Article 97 as follows:

 “9. In case where a gas turbine plant operates in the simple-cycle process, or lacks main fuel, leading to use of part or all of the auxiliary fuel as ordered by the electricity system and market operating unit to ensure electricity system security, settlements shall be made under auxiliary service agreements.”.

33. To amend Point b, Clause 1 of Article 98 as follows:

“b) In case where the thermal power generating set has to stop as prescribed at Point d, Clause 3 of Article 60 in this Circular, or a boiler of that set has to stop to reduce the capacity as prescribed at Point b, Clause 3 of Article 60 in this Circular, start-up costs under terms and conditions of the power purchase agreement between the electricity wholesale buyer and the generating unit shall be settled. The electricity system and market operating unit shall confirm this event for the set announced by the generating unit as a basis for the electricity buyer to settle start-up costs;”.

34. To amend Clause 3 of Article 109 as follows:

“3. Settlements made at the electricity wholesale price by the Vietnam Electricity to the wholesale buyer for the upstream power generation quantities remaining after subtraction of the portion of settlement output in accordance with Article 91, Points c and d of Clause 1 of Article 98, Article 99 and Article 100 of this Circular.”. 

35. To amend Article 124 as follows:

“Article 124. Reporting regime on electricity market operation

1. A monthly electricity market operational report of the electricity system and market operating unit shall include the following contents:

a) Report title:  Electricity market operational report of month M;

b) Report contents: They shall comply with the regulations as specified in Appendix 6 issued together with this Circular;

c) Report maker: Electricity system and market operating unit;

d) Report recipient: Electricity Regulatory Authority;

dd) Submission method: Reports are sent via emails;

e) Deadline: By the 20^th day of month M+1, the report on operation of electricity market for month M must be sent;

g) Frequency: On a monthly basis.

2. A monthly electricity market operational report of the electricity system and market operating unit shall include the following contents:

a) Report title:  Electricity market operational report of year N;

b) Report contents: They shall comply with the regulations as specified in Appendix 6 issued together with this Circular;

c) Report maker: Electricity system and market operating unit;

d) Report recipient: Electricity Regulatory Authority;

dd) Submission methods: Reports are sent to its recipient by one of the following methods:

- Via emails;

- By postal services.

e) Deadline: By the 1^st day of March of year N+1, the report on operation of electricity market for year N must be sent.

g) Frequency: On a yearly basis.

3. A yearly electricity market operational report of the directly-trading generating unit shall include the following contents:

a) Report title:  Electricity market operational report of year N;

b) Report contents: They shall comply with the regulations as specified in Appendix 6 issued together with this Circular;

c) Report maker: Directly-trading generating units;

d) Report recipient: Electricity Regulatory Authority;

dd) Submission methods: The report shall be sent to its recipient by one of the following methods:

- Via emails;

- By postal services.

e) Deadline: By the 1^st day of March of year N+1, the report on operation of electricity market for year N must be sent;

g) Frequency: On a yearly basis.

4. A yearly electricity market operational report of the electricity buyer shall include the following contents:

a) Report title:  Electricity market operational report of year N;

b) Report contents: They shall comply with the regulations as specified in Appendix 6 issued together with this Circular;

c) Report maker: All electricity buyers participating in the competitive electricity wholesale market;

d) Report recipient: Electricity Regulatory Authority;

dd) Submission methods: Reports shall be sent to its recipient by one of the following methods:

- Via mails;

- By postal services.

e) Deadline: By the 1^st day of March of year N+1, the report on operation of electricity market for year N must be sent;

g) Frequency: On a yearly basis.

5. Ad-hoc reports

a) An ad-hoc report made in case of any electricity market intervention shall include the following contents:

- Report title: Electricity market intervention report.

- Contents of report on electricity market interventions: Detailed report on electricity market intervention events (time, causes, intervention measures, impact assessment, etc.);

- Report maker: Electricity system and market operating unit;

- Report recipient: Electricity Regulatory Authority;

- Submission method: Emails;

- Time limit for submission: 24 hours from the time of electricity market intervention.

b) The electricity system and market operating unit, the generating unit and the electricity buyer shall assume the responsibility for sending the ad-hoc report on electricity market operation upon the request of the Electricity Regulatory Authority.”.

36. To supplement the Appendix 6 issued together with this Circular.

Article 2.Implementation effect

1. This Circular takes effect on January 01, 2020.

2. Any problems arising in the course of implementation of this Circular shall be sent to the Electricity Regulatory Authority or reported to the Ministry of Industry and Trade for consideration./.

The Minister
Tran Tuan Anh

* All Appendices are not translated herein.