Circular No. 25/2018/TT-BCT dated September 12, 2018 on amending and supplementing a number of articles of the Minister of Industry and Trade’s Circular No. 16/2014/TT-BCT of May 29, 2014, prescribing the implementation of regulations on electricity prices

CIRCULAR

Amending and supplementing a number of articles of the Minister of Industry and Trade’s Circular No. 16/2014/TT-BCT of May 29, 2014, prescribing the implementation of regulations on electricity prices ^([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 Electricity Law and the November 20, 2012 Law Amending and Supplementing a Number of Articles of the Electricity Law;

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

Pursuant to the Prime Minister’s Decision No. 24/2017/QD-TTg of June 30, 2017, prescribing the mechanism for adjustment of the average retail electricity price;

Pursuant to the Prime Minister’s Decision No. 28/2014/QD-TTg of April 7, 2014, prescribing the structure of the retail electricity tariff;

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

The Minister of Industry and Trade promulgates the Circular amending and supplementing a number of articles of Circular No. 16/2014/TT-BCT of May 29, 2014, prescribing the implementation of regulations on electricity prices.

Article 1. To amend and supplement a number of articles of the Minister of Industry and Trade’s Circular No. 16/2014/TT-BCT of May 29, 2014, prescribing the implementation of regulations on electricity prices (Circular No. 16/2014/TT-BCT) as follows:

1. To add Point c, Clause 2, Article 3 as follows:

“c/ In case owners of urban center and apartment building projects have handed over houses to their customers but not yet carried out asset finalization procedures to hand over power grids to the electricity sector for management: Pending the handing over of power grids and electricity users, electricity buyers and sellers shall base themselves on the actual state of electricity use to reach agreement on  the ratio between the amount of electricity to be applied with the residential retail price and that to be applied with non-residential retail prices  (for production, business, and administrative and non-business units) which will serve as a basis for application of electricity price. For residential electricity, the selling price applicable to the electricity buyer shall be determined in adherence to the principle that the electricity consumption limit applicable to the buyer shall be equal the electricity consumption limit at each level multiplied by the number of households using electricity for residential purpose (based on the actual electricity use purposes, house sale contracts, apartment handover records, civil status books, temporary residence books or documents certifying temporary residence issued by local public security agencies).”

2. To amend the title of Article 6 and add Clause 1a prior to Clause 1 of Article 6 as follows:

“Article 6. Principles for determination of wholesale electricity prices and conditions for application of the wholesale electricity price

1a. Principles for determination of wholesale electricity prices

When the retail price of electricity is adjusted, the wholesale electricity price applicable toeach retailer shall be adjusted by multiplying the current wholesale price discount rate by the planned increase rate of the Consumer Price Index (CPI) promulgated by the National Assembly in the year of adjustment. The Ministry of Industry and Trade shall guide the determination of specific wholesale price discount rates applicable to new wholesale buyers for which wholesale price discount rates have not been determined.”

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