Circular No. 42/2011/TT-BCT dated December 19, 2011 of the Ministry of Industry and Trade prescribing electricity sale prices and guiding their application

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Circular No. 42/2011/TT-BCT dated December 19, 2011 of the Ministry of Industry and Trade prescribing electricity sale prices and guiding their application
Issuing body: Ministry of Industry and Trade Effective date:
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Official number: 42/2011/TT-BCT Signer: Hoang Quoc Vuong
Type: Circular Expiry date:
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Issuing date: 19/12/2011 Effect status:
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Fields: Electricity , Industry , Labor - Salary , Tax - Fee - Charge
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THE MINISTRY OF INDUSTRY AND TRADE
-------
THE SOCIALIST REPUBLIC OF VIETNAM
Independence– Freedom – Happiness
---------------
No. 42/2011/TT-BCT
Hanoi, December 19, 2011
 
CIRCULAR
PRESCRIBING ELECTRICITY SALE PRICES AND GUIDING THEIR APPLICATION
Pursuant to the Government's Decree No. 189/2007/VND-CP of December 27, 2007, defining the functions, tasks, powers and organizational structure of the Ministry of Industry and Trade; and Decree No. 44/2011/ ND-CP of June 14, 2011, amending and supplementing Article 3 of Decree No. 189/ 2007/ND-CP;
Pursuant to the December 3, 2004 Electricity Law; and the Government's Decree No. 105/2005/ND-CP of August 17, 2005, detailing and guiding a number of articles of the Electricity Law;
Pursuant to the Prime Minister's Decision No. 21/2009/QD-TTg of February 12, 2009, approving market-based electricity sale prices to be applied in 2009 and during 2010-2012;
Pursuant to the Prime Minister's Decision No. 24/2011/QD-TTg of April 15, 2011, on market-based adjustment of electricity sale prices;
Pursuant to the Prime Minister's Decision No. 268/QD-TTg of February 23, 2011, on the electricity retail tariff applicable from 2011;
The Ministry of Industry and Trade prescribes electricity sale prices and guides their application as follows:
Chapter I
GENERAL PROVISIONS
Article 1. Scope of regulation and subjects of application
1. This Circular prescribes specific electricity retail prices applicable to different customer groups based on the average electricity sale price determined under the mechanism provided in the Prime Minister's Decision No.24/2011/QD-TTg of April 15, 2011, on market-based adjustment of electricity sale prices, the structure of the electricity retail tariff approved by the Prime Minister, and wholesale prices applicable to electricity retailers buying electricity directly from power corporations or attached power units.
2. This Circular applies to organizations and individuals buying or selling electricity from the national power system and related organizations and individuals.
3. Provincial-level People's Committees shall approve electricity sale prices in localities which are not yet connected to the national power grid after obtaining written appraisal opinions from the Electricity Regulatory Authority of Vietnam.
Article 2. Average electricity sale price
The average electricity sale price is VND 1.304/kWh (exclusive of value-added lax) corresponding to specific calculation parameters in Part A of the Appendix to this Circular.
Article 3. Voltage-based electricity sale prices
1. Voltage-based electricity sale prices are applicable to customers using electricity for purposes of production, business, service provision, irrigation, non-business and administrative work, for industrial parks and other purposes at high-rise apartment buildings in cities and new urban centers.
2. Electricity shall be sold at the price applicable to the voltage of the electric metering system.
Article 4. Daily consumption hour-based electricity sale prices
Electricity sale prices are set based on the time of consumption during a day (below referred to as three-level pricing system) as follows:
1. Off-peak hours:
a/ From Monday to Saturday:
- From 4:00 h to 9:30 h (5 hours and 30 minutes);
- From 11:30 h to 17:00 h (5 hours and 30 minutes);
- From 20:00 h to 22:00 h (2 hours).
b/ Sunday:
From 4:00 h to 22:00 h (18 hours!.
2. Peak hours:
a/ From Monday to Saturday:
- From 9:30 h to 11:30 h (2 hours);
- From 17:00 h to 20:00 h (3 hours).
b/ Sunday: no peak hours.
3. Low load hours:
All days from 22:00 h to 4:00 h (6 hours).
Article 5. Conditions for application of electricity wholesale prices
1. Electricity wholesale prices provided in Articles 15, 16 and 17 of this Circular are applicable to electricity retailers fully meeting the conditions below:
a/ Possessing an electricity distribution and retail license granted by a competent agency, except cases of exemption from licensing for power operation under Point c. Clause 1, Article 34 of the Electricity Law;
b/ Keeping accounting books under regulations to account electricity retail sales separately from other business operations;
c/ Having electricity trading contracts, installing separate electric meters for each electricity-consuming household under Article 24 of the Electricity Law; and issuing added-value electricity bills to each consumer for each payment period under electricity trading contracts according to the Finance Ministry's regulations.
2. For electricity retailers failing to fully meet the conditions specified in Clause 1 of this Article, electricity wholesalers shall report them to provincial-level Industry and Trade Departments for submission to provincial-level People's Committees for decision to revoke their power operation licenses and hand over the electricity networks under the management of these retailers to power companies for selling electricity directly to electricity consumers. Pending completion of hand-over procedures, electricity wholesalers may apply progressive electricity sale prices for residential consumption to the whole amount of electricity measured at master meters based on the norms of electricity-consuming households of the last month's electricity bills.
Article 6. Guidance on application of electricity sale prices
1. The tariff applies from December 20, 2011.
2. Electricity sale prices under this Circular are exclusive of value-added tax.
3. Detailed guidance on application of the tariff is provided in Part B of the Appendix to this Circular.
4. When the average electricity sale price is adjusted under the Prime Minister's Decision No. 24/2011/QD-TTg of April 15, 2011, on market-based adjustment of electricity prices, and the Ministry of Industry and Trade's Circular No. 31/2011/TT-BCT of August 19, 2011, providing adjustment of electricity sale prices based on basic input parameters, Electricity of Vietnam shall accordingly adjust specific electricity sale prices for different customer groups.
Chapter II
ELECTRICITY RETAIL TARIFF
Article 7. Electricity retail prices applicable to manufacturing industries
Electricity retail prices applicable to manufacturing industries are as follows:

No.
Subjects of application
Electricity sale price (VND/kWh)
1
Voltage of 110 kV or higher
 
 
a/ Off-peak hours
1.102
 
b/ Low load hours
683
 
c/ Peak hours
1.970
2
Voltage of between 22 kV and under 110 kV
 
 
a/ Off-peak hours
1.128
 
b/ Low load hours
710
 
c/ Peak hours
2.049
3
Voltage level of between 6 kV and under 22 kV
 
 
a/ Off-peak hours
1.164
 
b/ Low load hours
727
 
c/ Peak hours
2.119
4
Voltage of under 6 kV
 
 
a/ Off-peak hours
1,216
 
b/ Low load hours
767
 
c/ Peak hours
2,185

Customers buying electricity at the voltage of 20 kV may apply the price applicable to the voltage of between 22 kV and under 110 kV.
Article 8. Electricity retail prices applicable to irrigation
Electricity retail prices applicable to irrigation are as follows:

No.
Voltage
Electricity sale price (VND/kWh)
1
6 kV or higher
 
 
a/ Off-peak hours
1.013
 
b/ Low load hours
526
 
c/ Peak hours
1.500
2
Under 6 kV
 
 
a/ Off-peak hours
1.084
 
b/ Low load hours
553
 
c/ Peak hours
1.553

Article 9. Electricity retail prices applicable to administrative and non-business units
Electricity retail prices applicable to administrative and non-business units are as follows:

No.
Subjects of application
Electricity sale price (VND/kWh)
1
Hospitals, kindergartens, preschools. general education schools
 
 
a/ Voltage of 6 kV or higher
1.184
 
b/ Voltage of under 6 kV
1,263
2
Public lighting
 
 
a/ Voltage of 6 kV or higher
1.290
 
b/ Voltage of under 6 kV
1.369
3
Administrative and non-business units
 
 
a/ Voltage of 6 kV or higher
1.316
 
b/ Voltage of under 6 kV
1.369

Article 10. Electricity retail prices applicable to business activities
Electricity retail prices applicable to business activities arc as follows:

No.
Voltage
Electricity sale price (VND/kWh)
1
22 kV or higher
 
 
a/ Off-peak hours
1.808
 
b/ Low load hours
1.022
 
c/ Peak hours
3.117
2
Between 6 kV and under 22 kV
 
 
a/ Off-peak hours
1.939
 
b/ Low load hours
1.153
 
c/ Peak hours
3.226
3
Under 6 kV
 
 
a/ Off-peak hours
1.965
 
b/ Low load hours
1.205
 
c/ Peak hours
3.363

Article 11. Electricity retail prices applicable to residential consumption
1. Progressive electricity retail prices applicable to residential consumption are as follows:

No.
A household's average monthly consumption level
Electricity sale price (VND/kWh)
1
50 kWh (applicable to poor and low-income households)
993
2
From 0 to 100th kWh (applicable to ordinary households)
1.242
3
From the 101st to 150th kWh
1,369
4
From the 151st to 200th kWh
1,734
5
From the 201st to 300th kWh
1.877
6
From the 301st to 400th kWh
2.008
7
From the 401st kWh and above
2,060

2. The electricity price applicable to the first level (0 - 50 kWh) applies only to poor and low-income households regularly consuming electricity not more than 50 kWh/month and registering with electricity sellers. In order to buy electricity at this price, poor and low-income households shall register themselves under the guidance of electricity sellers.
3. The prices at the second and higher levels apply to ordinary households and poor and low-income households registering to consume an electricity amount from the 51st kWh and above.
4. The electricity retail price applicable to temporary and short-term electricity buyers for residential consumption using prepaid cards is VND 1,712/kWh (exclusive of VAT).
Article 12. Electricity retail prices applicable to areas not yet connected to the national power grid
1. Electricity retail prices applicable lo residential consumption in rural and mountainous areas and islands not yet connected to the national power grid shall be approved by provincial-level People's Committees but must be within the ceiling and floor prices below:
a/ Floor price: VND 1,956/kWh;
b/ Ceiling price: VND 3.260/kWh.
2. Electricity retailers in rural and mountainous areas and islands not yet connected to the national power grid shall draw-up retail pricing schemes applicable to different customer groups in these areas on the principle of business assurance, which clearly identify losses to be offset due to the sale of electricity for residential consumption at the set ceiling price, which, however, is lower than the approved business assurance price, and send them to provincial-level Industry and Trade Departments for verification and submission to the Electricity Regulatory Authority of Vietnam for written comment before April 1 every year for subsequent submission to provincial-level People's Committees for approval before July 1 every year.
Article 13. Electricity retail prices in areas connected to the national power grid while having on-spot power generation sources
Electricity retailers in areas connected to the national power grid while having on-spot power generation sources combined with buying electricity from the national power grid for retail to consumers shall draw up electricity pricing schemes for different consumer groups in these areas and submit them to the Electricity Regulatory Authority of Vietnam for appraisal and submission to the Ministry of Industry and Trade for approval. Electricity retailers shall obtain official written opinions from provincial-level People's Committees on the schemes before submitting them for appraisal.
If the national electricity sale price is adjusted, the electricity retail prices in areas connected to the national power grid while having on-spot power generation sources (in industrial parks) shall be accordingly adjusted under Article 5 of the Ministry of Industry and Trade's Circular No. 31/2011/TT-BCT of August 19, 2011, providing the adjustment of electricity sale prices based on basic input parameters.
Chapter III
ELECTRICITY WHOLESALE PRICES
Article 14. Electricity wholesale prices applicable to power corporations
1. The electricity wholesale prices applied by Electricity of Vietnam (the Electricity Purchase and Trading Company) to power corporations at points of delivery shall be determined under the guidance of the Ministry of Industry and Trade in accordance with the Prime Minister's Decision No. 24/2011/QD-TTg of April 15, 2011, on market-based adjustment of electricity sale prices, and Circular No. 31/2011/TT-BCT of August 19, 2011, providing the adjustment of electricity sale prices based on basic input parameters.
2. The average electricity transmission cost at a point of delivery corresponding to the electricity amount transmitted at the point of delivery from the electricity distribution grid: VND 83.3/kWh.
Article 15. Electricity wholesale prices applicable to rural areas
1. Locations for determining electricity amounts wholesaled in rural areas
The electricity wholesale price applicable to rural areas applies to rural electricity retailers for electricity amounts bought from wholesalers measured at master electric meters installed at transformer stations.
2. Electricity wholesale prices applicable to residential consumption in rural areas are as follows:

No.
A rural household's average monthly consumption level behind a muster electric meter
Electricity sale price (VND/kWh)
1
50 kWh (applicable to poor and low-income households)
807
2
From 0 to 100th kWh (applicable to ordinary households)
981
 
From the 101st to 150th kWh
1.054
4
From the 151st to 200th kWh
1.335
5
From the 201st to 300th kWh
1.455
6
From the 301st to 400th kWh
1.556
7
From the 401st kWh and above
1.607

The electricity wholesale price applicable to residential consumption in rural areas means the price of electricity sold at master electric meters by a power corporation, a power company or an authorized FVN-attached unit to electricity retailers in rural areas.
The principles of determining electricity consumption norms for households using electricity for residential consumption behind master electric meters are provided at Point b, Clause 1. Section IV. Part B of the Appendix to this Circular
Article 16. Electricity wholesale prices applicable to condominiums and residential clusters
1. Locations for determining electricity amounts wholesaled to condominiums and residential clusters
Electricity wholesale prices for condominiums and residential clusters apply lo electric- installed at transformer stations or at feeder connection points of low-voltage transmission
Lines
2. Electricity wholesale prices applicable to residential consumption in condominiums and residential clusters are as follows:

No.
A household's average monthly consumption level behind a master electric meter
Electricity sale price (VND/kWh)
1.
Cities and towns
 
a/
For transformer stations built by electricity sellers
 
 
50 kWh (applicable to poor and low-income households)
913
 
From 0 to 100th kWh (applicable lo ordinary households)
1.142
 
From the 101st to 150th kWh
1.239
 
From the 151st to 200th kWh
1.569
 
From the 201st to 300th kWh
1.721
 
From the 301st to 400th kWh
1.852
 
From the 401th kWh and above
1.809
b/
For transformer stations built by electricity buyers
 
 
For 50 kWh (applicable to poor and low-income households)
900
 
From 0 to 100th kWh (applicable to ordinary households)
1.117
 
From the 101st to 150th kWh
1.200
 
From the 151st to 200th kWh
1.520
 
From the 201st to 300th kWh
1.668
 
From the 301st io400thkWh
1.786
 
From the 401st kWh and above
1.854
i
Townships and district capitals
 
a/
For transformer stations built by electricity sellers
 
 
For 50 kWh (applicable to poor and low-income households)
882
 
From 0 to 100th kWh (applicable to ordinal") households)
1.086
 
From the 101st to 150th kWh
1.170
 
From the 151st to 200th kWh
1.483
 
From the 201st lo 300th kWh
1.633
 
From the 301st to 400th kWh
1.747
 
From the 401st kWh and above
1.792
b/
For transformer stations built by electricity buyers
 
 
For 50 kWh (applicable to poor and low-income households)
S63
 
From 0 to 100th kWh (applicable to ordinary households)
1.068
 
From the 101st to 150th kWh
1.141
 
From the 151st to 200th kWh
1.445
 
From the 201st to 300thkWh
1.564
 
From the 301st to 400thkWh
1.682
 
From the 401st kWh and above
1.726
 
 
 

The electricity wholesale price applicable to residential consumption in condominiums and residential clusters is the price of electricity sold at master electric meters by power corporations, power companies or authorized units to retailers of electricity for condominiums and residential clusters.
Electricity wholesale prices applicable to residential consumption in high-rise apartment buildings in cities and new urban centers are as follows:

No.
A household's average monthly consumption level behind a master electric meter
Electricity sale price (VND/kWh)
1
From 0 to 100th kWh
1.211
2
From the 101st to 150th kWh
1.336
3
From the 151st to 200th kWh
1.692
4
From the 201st to 300th kWh
1.831
5
From the 301st to 400th kWh
1.956
6
From the 401st kWh and above
2.006

The principles of determining the electricity consumption norm for households using electricity for residential consumption behind master electric meters are provided at Point b. Clause 1. Section V. Part 13 of the Appendix to this Circular.
3. Wholesale prices of electricity consumed for other purposes in condominiums and residential clusters are as follows:

No.
Area
Electricity sale price (VND/kWh)
1
Cities (except high-rise apartment buildings in cities and new urban centers), towns, townships, district capitals (regardless of voltage)
1.072
11
High-rise apartment buildings in cities and new urban centers
 
1
Voltage of 22 kV or higher
1.727
2
Voltage of between 6 kV and under 22 kV
1.852
3
Voltage of under 6 kV
1.877

Article 17. Electricity wholesale prices industrial parks applies to electricity retailers applicable lo industrial parks that buy electricity from wholesalers at 110 kV busbars of industrial parks (110 kV stations built
1. The electricity wholesale price at 110 kV by buyers) for retail to consumers within busbars of 110 kV transformer stations in industrial parks as follows:

No.
Total capacity of transformers of 110/35-22-10-6 kV transformer stations
Electricity sale price (VND/kWh)
1.
> 100 MVA
 
 
a/ Off-peak hours
1.060
 
b/ Lou load hours
664
 
c/ Peak hours
1.927
2
Between 50 MVA and 100 MVA
 
 
a/ Off-peak hours
1.055
 
b/ Low load hours
642
 
c/ Peak hours
1.917
 
< 50 MVA
 
 
a/ Off-peak hours
1.050
 
b/ Low load hours
641
 
c/ Peak hours
1,904

2. The wholesale price of electricity sold by power companies to retailers at medium-voltage busbars of 110/35-22-10-6 kV transformer stations or at feeder connection points of medium-voltage transmission lines to industrial parks is equal to the retail electricity price applicable to manufacturing industries at the corresponding medium voltages specified in Article 7 of this Circular, deducted by 2%.
3. The wholesale price of electricity sold by power companies to retailers al the medium-voltage side of low-voltage transformer stations is equal to the electricity retail price applicable to manufacturing industries al the corresponding medium voltages specified in Article 7 of this Circular.
Chapter IV
ORGANIZATION OF IMPLEMENTATION
Article 18. Examination responsibilities
1. Provincial-level Industry and Trade Departments shall examine and supervise local electricity retailers under their management in applying electricity sale prices under this Circular. When detecting retailers failing to meet the conditions specified in Article 5 of this Circular, provincial-level Industry and Trade Departments shall terminate the operation of violators and report such to provincial-level People's Committees for revocation of their power operation licenses previously granted by provincial-level People's Committees or for reporting to the Electricity Regulatory Authority of Vietnam for revocation of their licenses previously granted by the Authority, and for hand-over to power companies for selling electricity directly to consumers.
2. Provincial-level Industry and Trade Departments shall examine and supervise the calculation of the norms of consuming households and retail prices applied at rented houses in order to ensure that tenants are applied electricity sale prices applicable to residential consumption according to this Circular.
Article 19. Effect
1. This Circular takes effect on December 20, 2011, and replaces the Ministry of Industry and Trade's Circular No. 05/2011/TT-BCT of February 25, 2011, providing 2011 electricity sale prices and guiding their application.
2. Any problems arising in the course of implementation should be reported by related units directly to the Electricity Regulatory Authority of Vietnam for consideration and settlement according to its competence or for reporting to the Ministry of Industry and Trade for settlement.-
 

 
FOR THE MINISTER OF INDUSTRY AND TRADE
DEPUTY MINISTER




Hoang Quoc Vuong

 
APPENDIX
GUIDANCE ON APPLICATION OF ELECTRICITY SALE PRICES
(To the Industry and Trade Ministry's Circular No. 42/2011/TT-BCT of December 19, 2011)
Part A
INPUT PARAMETERS FOR ELECTRICITY PRICING
The average electricity sale price is VND 1.304/kWh (exclusive of value-added tax), calculated based on the following input parameters:
1. Computed total commercial electricity output in 2012: 107.2 billion kWh.
2. Total output of domestically generated and imported electricity in 2012: 117.77 billion kWh.
3. Electricity transmission and distribution loss rate: 9.5%.
4. Electricity output transmitted through electricity transmission grids at points of delivery with electricity distribution grids (excluding the output generated by power plants on 110 kV grids) for calculating the electricity transmission cost: 102.6 billion kWh.
5. Electricity output bought from power plants of 30 MW or less connected to electricity distribution grids: 4.6 billion kWh.
6. Prices of coal for electricity generation: grade-4b slack: VND 680.400/ton; grade-5 slack: VND 546.000/ton: grade-Ga slack: VND 472.500/ton: and grade-6b slack: VND 414.750/ton.
7. Average price of gas for Ca Mau power plant calculated based on HFO price: USD 655.9/ton.
8. The 2012 average price of DO (diesel oil) for electricity generation: VND 20.750/liter (inclusive of VAT).
9. The 2012 average price of FO (fuel oil) for electricity generation: VND 17,100/kg (inclusive of VAT).
10. VND/USD exchange rate: VND 20.834/ USD.
11. The profit-to-equity ratio applicable to dependent cost-accounting power plants of Electricity of Vietnam, the National Electricity Transmission Corporation and five power corporations is 0%.
12. Total electricity production and trading cost in 2012 is VND 139.799.6 billion.
13. Total electricity generation cost (including the cost of buying electricity from small power plants and cost of self-generated electricity) is VND 106.953.8 billion.
14. Total permitted turnover for the electricity transmission stage is VND 8.547.9 billion.
15. Total permitted turnover for the electricity distribution and retail stage (excluding the cost of buying electricity from small power plants and cost of self-generated electricity) is VND 23.731.1 billion.
16. Total expenses for administration and management of the sector and technical assistance services is VND 566.8 billion.
17. Total cost of buying electricity from small power plants and cost of self-generated electricity is VND 4.589.5 billion.
18. Part of forest environment service expenses in 2011 accounted in the 2012 electricity sale price is VND 522 billion.
19. Remaining expenses not yet accounted in the 2010 and 2011 electricity sale prices and not included in the 2012 price, including the following expenses not yet accounted in the 2010 electricity sale price:
a/ The unallocated exchange rate difference by December 31, 2010: VND 15.462.8 billion.
b/ The remaining unallocated cost of admission of the rural low-voltage grid in and before 2010: VND 356 billion.
c/ Arising expenses in 2010 due to droughts for mobilizing high-cost oil-fueled plants: VND 8,040.3 billion.
20. In case the profit-to-equity ratio used for electricity generation and trading is 10%, equivalent to 6.154.1 billion, turnover necessary for electricity generation and trading in 2012 is VND 145.953.7 billion, equivalent to the electricity sale price of VND 1.361.5/kWh.
21. In case the profit-to-equity ratio used for electricity generation and trading is 10%, and all remaining expenses not yet accounted in the 2010 electricity sale price are included, turnover necessary for electricity generation and trading in 2012 is VND 169.812.8 billion, equivalent to the electricity sale price of VND 1.584.1/kWh.
Part B
GUIDANCE ON APPLICATION
I. GENERAL PROVISIONS
1. Electricity sale prices shall be applied to proper consumers for proper purposes under this Circular.
Electricity buyers shall truthfully declare electricity use purposes for electricity sale price calculation under this Circular.
When changing the electricity use purpose, which will result in a change in the applied electricity sale price, an electricity buyer shall notify such to the seller 15 days in advance for adjusting the contractual price accordingly. The electricity seller shall examine and promptly apply electricity sale prices to proper consumers according to regulations.
In case of improper application of prices compared to electricity use purposes, causing damage to electricity buyers or sellers, electricity charges shall be retrospectively collected or refunded. When it is impossible to determine the lime of improper application of prices, such time will be counted as 12 months back from the time of detecting the improper application of prices.
2. For buyers consuming electricity for different purposes:
a/ For electricity wholesale to rural areas, condominiums and residential clusters: Electricity retailers shall install separate meters for retailing electricity for residential consumption and other purposes;
b/ For consumers with contracts on use of electricity for residential consumption who partly use electricity for other purposes (production, business, service provision), the progressive electricity retail tariff applicable to residential consumption shall be applied to the whole electricity amounts measured at their meters:
c/ For consumers with contracts on use of electricity for other purposes (other than residential purposes) behind an electric meter, buyers and sellers shall, based on the actual electricity consumption, reach agreement on specific electricity use rates for each purpose.
3. On December 20, 2011, electricity sellers shall record readings of all electric meters operating on the power grid (except those for electricity retail for residential consumption).
The recording of readings of three-level pricing electric meters, master meters of special-purpose stations and master meters for electricity wholesale For rural areas and condominiums and residential clusters must be certified by-representatives of customers or witnesses.
II. DAILY CONSUMPTION TIME-BASED ELECTRICITY SALE PRICES
1. Electricity sale prices under the three-level pricing system apply to the following cases:
a/ Buyers consuming electricity supplied through special-purpose transformers of 25 kVA or higher for production, business or service provision purposes or consuming an average 2.000 kWh/month or higher for three consecutive months;
b/ Buyers consuming electricity to irrigate rice, vegetables, subsidiary crops and short-term industrial crops grown together with rice, vegetables and secondary crops:
c/ Buyers consuming electricity for production, business or service provision purposes who have transformers and consume electricity below the above level are encouraged to buy electricity according to the three-level pricing system.
Electricity sellers shall create conditions for and guide electricity buyers in installing three-level pricing electric meters.
2. Electricity sellers shall prepare adequate electric meters for installation for buyers applying the three-level pricing system. Pending the installation of three-level pricing electric meters, electricity sale prices for off-peak hours apply.
3. When electricity sellers have sufficient conditions to install three-level pricing electric meters and have notified in writing in advance the plan on installation of three-level pricing meters to electricity buyers subject to the three-level pricing system, these buyers shall collaborate with sellers in installing three-level pricing electric meters as soon as possible.
When an electricity buyer subject to the three-level pricing system rejects the installation of a three-level pricing electric meter after having been notified thrice by the seller, after 15 days from the dale of the third notification, the seller may apply the electricity sale price applicable to peak hours for the buyer's whole consumed electricity amount until a three-level pricing electric meter is installed.
4. An electricity buyer subject to the three- level pricing system who currently shares an electric meter with consumers not subject to the three-level pricing system shall collaborate with the electricity seller in installing separate electric meters for those consumers who shall sign electricity purchase and sale contracts directly with the seller for proper price application.
III. CONSUMER-BASED ELECTRICITY RETAIL PRICES
1. Electricity sale prices applicable to manufacturing industries
The for-production electricity tariff applies to all buyers consuming electricity for production in the following industries:
a/ Industry;
b/ Construction; transport; mining; forestry: fisheries;
c/ Agriculture: cultivation (including irrigation of industrial and fruit crops under areas free from irrigation charge, and lighting for raising fruit crop productivity); cattle raising, aquaculture and other types of animal raising; production of preservatives and epidemic control drugs;
d/ Production of safe water for residential consumption, production and business activities;
e/ Production management offices of business groups, corporations and companies;
f/ Warehouses of goods (raw materials, finished products, semi-finished products) during the production process;
g/ Producers and suppliers of public-utility products and services (for electricity amounts used for public-utility activities), except public lighting and management and operation of irrigation works;
h/ Water drainage pumping and wastewater treatment in cities and towns;
i/ Switchboards, transmission networks and reception and relay stations of telecommuni­cations companies;
j/ Weaving, animal raising, poultry-egg hatching, rice husking, ice-making, welding, oxyacetylene welding, sawing, carpentry, rice drying and post-harvest farm produce preservation establishments:
k/ Other production activities.
2. Electricity sale prices applicable to irrigation
The for-irrigation electricity sale tariff applies to buyers with separate meters consuming electricity to irrigate areas under rice, vegetables, subsidiary crops and short-term industrial crops grown together with rice, vegetables, subsidiary crops and seed rice and fruit crops, except cases of consuming electricity for water pumping specified at Point c, Clause 1 of this Section.
3. Electricity sale prices applicable to administrative and non-business units
a/ Electricity sale prices for hospitals, crèches, kindergartens and general education schools apply to the following subjects:
- Public and private crèches, kindergartens and primary and lower and upper secondary schools, continuing education centers (for general education I. and ethnic minority boarding schools;
- Hospitals (including electricity amounts consumed for funeral parlors and hospital waste incineration): healthcare establishments (including electricity amounts for medical examination and treatment activities of preventive medicine centers): sanatoriums, functional rehabilitation establishments and occupational disease treatment establishments; rest homes for the elderly and persons with disabilities, orphanages: drug detoxification establishments: educational and social labor centers; drug detoxification. HIV/AIDS prevention and control, and family planning counseling offices.
b/ Electricity sale prices for public lighting apply to buyers consuming electricity for the following purposes:
- Lighting of streets, parks and lanes; temples, pagodas and churches: ranked historical relics: fallen hero cemeteries; condominiums or condominium stairs;
- Lifts of high-rise apartment buildings; pumping of water for residential consumption in condominiums and residential clusters;
- Traffic signal lights.
c/ Electricity sale prices for administrative and non-business agencies apply to buyers being:
- Working offices of state administrative agencies: non-business units: armed forces units: political organizations, socio-political organizations; and professional associations;
- Offices of embassies, diplomatic missions, representative offices of (non-business) international organizations;
- Offices of media agencies: sports training centers: radio and television stations: culture and information centers, sporting event halls: museums, memorial houses, exhibition centers, funeral parlors and crematoria;
- Budget-funded sections of trade fairs, marketplace management boards, and guesthouses of administrative agencies. Electricity buyers shall provide legal documents on their budget fund use as a basis for determining appropriate prices;
Example: Guesthouse A belongs to a state agency. Electricity consumed by the guesthouse's section operating with state budget funds is entitled to the sale price applicable to administrative and non-business agencies while electricity for business activities is subject to the sale price applicable to business and services.
- Health insurance and social insurance agencies;
- Research agencies: public and private universities, colleges and vocational training schools (except those specified at Point a. Clause 3 of this Section);
- Central and local book and newspaper distributors, school and medical equipment suppliers, charity organizations;
- Storehouses with the national reserve function as prescribed by competent authorities;
- Non-profit social policy banks;
- Offices of irrigation work management and exploitation agencies;
Offices of state-funded project management units.
Electricity amounts consumed for goods production activities (if any) of administrative agencies and non-business units are subject to the sale price applicable to production: while those consumed for business or service activities (if any) are subject to the sale price applicable to these activities.
4. Electricity retail prices for residential consumption
a/ Electricity retail prices for residential consumption specified in Clause 2. Article 11 of this Circular apply to poor and low-income households regularly consuming not more than 50 kWh/month and registering with electricity sellers.
Poor and low-income households having registered with electricity sellers and regularly consuming not more than 50 kWh/month continue to enjoy the first-level price. Those eligible for buying electricity at the first-level price shall register with electricity sellers. Electricity sellers shall guide these electricity buyers in carrying out registration procedures to buy electricity at the price specified in Clause 2. Article 11 of this Circular.
When the total electricity amount consumed by a registered household in the first month or first two months or for 3 consecutive months exceeds 150 kWh (with an allowance of 5 kWh for the difference in the lime of recording meter readings), the electricity seller may automatically switch such household to apply the electricity retail price applicable to ordinary households specified in Clause 3, Article 11 of this Circular from the subsequent month. Only after 12 months from the month of being switched to an ordinary household, this household may re-register with the electricity seller lo apply the price applicable to poor and low-income households.
For a buyer of electricity for residential consumption consisting of households sharing the same meter (though having separate civil status books), the consumed electricity amount used for application of the for-residential consumption electricity retail tariff specified in Clause 2. Article 11 of this Circular shall be determined to be the average amount consumed by each household.
Example:
Case 1: A household registering lo apply the for-residential consumption electricity retail tariff specified in Clause 2. Article 11 of this Circular consumes 40 kWh in February 2012. The charge payable by this buyer is VXD 43.692, including:
- Electricity charge: 40 kWh x VND 993/ kWh = VND 39.720
- Value-added tax (10%) = VND 3.972
In February, March and April 2012, if the total electricity amount consumed by this household is 160 kWh, the electricity seller may switch this household to apply the price applicable to ordinary households from May 2012.
Case 2: A household registering to apply the for-residential consumption electricity retail tariff specified in Clause 2. Article 11 of this Circular consumes 156 kWh in February 2012. The charge payable by this buyer is VND 209.664, including:
- Electricity charge:
- First 50 kWh: 50 kWh x VND 993/kWh = VND 49.650
- Subsequent 50 kWh: 50 kWh x VND 1,242/kWh = VND 62.100
- Subsequent 50 kWh: 50 kWh x VND 1.369/kWh = VND 68.450
- Subsequent 50 kWh: 6 kWh x VND 1.734/ kWh = VND 10.404
Total =VND 190.604
Value-added tax (10%) = VND 19.060
From March 2012, the electricity seller may switch this household to apply the price applicable to ordinary households.
Case 3: A household registering to apply the for-residential consumption electricity retail tariff specified in Clause 2. Article 11 of this Circular consumes 40 kWh in February and 120 kWh in March 2012. The charge payable by this buyer in March 2012 is VND 153.043, including:
- Electricity charge:
- First 50 kWh: 50 kWh x VND 993/kWh = VND 49,650
- Subsequent 50 kWh: 50 kWh \ VND 1.242/kWh = VND 62,100
- Subsequent 50 kWh: 20 kWh \ VND 1,369/kWh = VND 27.380
Total = VND 139.130
Value-added tax (10%) = VND 13.913
From April 2012, the electricity seller may switch this household to apply the price applicable to ordinary households.
b/ The progressive electricity sale price specified in Clause 3. Article 11 applies to ordinary households.
Example: An electricity buyer consumes 445 kWh in a month. The electricity charge payable by the buyer is VND 836.605, including:
- First 100 kWh: 100 kWh x VND 1.242/ kWh = VND 124.200
- Subsequent 50 kWh: 50 kWh x VND 1.369/kWh = VND 68,450
- Subsequent 50 kWh: 50 kWh x VND 1,734/kWh = VND 86.700
- Subsequent 100 kWh: 100 kWh x VND 1.877/kWh = VND 1S7.700
- Subsequent 100 kWh: 100 kWh x VND 2.008/kWh = VND 200.800
- Subsequent 45 kWh: 45 kWh x VND 2.060/kWh = VND 92.700
Total = VND 760.550
Value-added tax (10%) = VND 76.055
c/ The progressive electricity price applies to an electricity buyer consisting of many households (with separate civil status books) which share an electric meter on the principle that the common levels in the progressive tariff for the buyer are equal to the electricity consumption amounts provided in the electricity sale tariff multiplied by the number of households sharing the electric meter.
Examples:
Case 1: For an electricity buyer consisting of 4 ordinary households buying electricity through an electric meter, progressive electricity retail price levels arc applied as follows:
- The VND 1.242/kWh price applies to the first 400 kWh = 100 kWh x 4 households
- The VND 1.369/kWh price applies to the subsequent 200 kWh = 50 kWh x 4 households
- The VND 1.734/kWh price applies to the subsequent 200 kWh = 50 kWh x 4 households
- The VND 1.877/kWh price applies to the subsequent 400 kWh = 100 kWh x 4 households
- The VND 2.008/kWh price applies to the subsequent 400 kWh = 100 kWh x 4 households
- The VND 2,060/kWh price applies to the 1,601st kWh and above
Case 2: For an electricity buyer consisting of 4 households registering to apply the electricity retail tariff for residential consumption specified in Clause 2. Article 11 of this Circular, buying electricity through an electric meter, progressive electricity retail prices are applied as follows:
- The VND 993/kWh price applies to the first 200 kWh = 50 kWh x 4 households
- The V.ND 1,242/kWh price applies to the subsequent 200 kWh = 50 kWh x 4 households
- The VND 1,369 kWh price applies to the subsequent 200 kWh = 50 kWh x 4 households)
- The VND 1,734/kWh price applies to the subsequent 200 kWh = 50 kWh x 4 households
- The VND 1.877/kWh price applies to the subsequent 400 kWh = 100 kWh x 4 households
- The VND 2.080/kWh price applies to the subsequent 400 kWh = 100 kWh x 4 households
- The VND 2.060/kWh price applies to the 1.601st kWh and above
d/ For buyers of electricity for residential consumption in condominiums of cadres, workers, civil servants and students, and armed forces, and houses of monks:
- When it is possible to declare the number of persons (based on long-term residence registration certificates), every 4 persons shall be considered one household for application of progressive electricity retail prices for residential consumption under Point a or b of this Clause;
- When it is impossible to declare the number of persons, the progressive electricity retail price for residential consumption for between 151st and 200th kWh under Clause 1. Article 11 of this Circular applies to the whole electricity amount measured at the meter.
e/ The progressive electricity retail prices for residential consumption apply to consumers buying electricity through their own transformers;
f/ The signing of contracts to buy electricity for residential consumption in the case of leased houses complies with the following provisions:
- For each leased house address, the electricity seller shall sign only one electricity purchase and sale contract. The lessor shall produce the lessee's temporary residence registration certificate;
- When the lessee is a household, the lessor may directly sign or authorize the lessee to sign the electricity purchase and sale contract (with lessor's guarantee for electricity charge payment). Each lessee is entitled to an electricity consumption norm;
- When lessees are individual students or laborers (other than households), the electricity seller shall publicly announce and allocate electricity consumption norms to the lessor based on temporary residence registration certificates. Every 4 persons shall be considered a household for calculating norms for application of progressive electricity retail prices for residential consumption, specifically: 1 person shall be counted as 1/4 of a norm, 2 persons as ½, 3 persons as 3/4, and 4 persons as a norm;
- When lessees are individual students or laborers with temporary residence registration certificates for 12 months or more, lessors may directly sign or representatives of students or laborers may sign electricity purchase and sale contracts (with lessor's guarantee for electricity charge payment). For those leasing houses for less than 12 months, lessors shall directly sign the contracts;
- When lessees do not sign contracts directly with the electricity seller, the lessor shall collect electricity charges from lessees exactly according to monthly electricity retail bills issued by the electricity retailer plus 10% for electricity loss, lighting and water pumping, for common use;
- When the number of lessees changes, the lessor shall notify such to the electricity seller for adjustment of electricity consumption norms for electricity billing. The electricity seller may examine and request the electricity buyer to produce temporary residence registration certificates every month to determine the number of electricity consumers used for calculating electricity consumption norms for electricity billing.
g/ In force majeure circumstances leading to electricity sellers' change of the time of recording meter readings, the consumed electricity amount of each for-residential consumption electricity sale price level shall be adjusted based on the actual number of days of the changed period of recording meter readings.
h/ When the date of recording meter readings does not coincide with the date of electricity price adjustment, progressive electricity charges for residential consumption shall be calculated by the interpolation method using the following parameters:
- Actual electricity amount consumed during the reading recording period:
- Number of days of actual electricity consumption (number of days between two reading recording dates, and numbers of days subject to the application of the old and new prices);
- Consumed electricity amount of each price level calculated according to the actual number of days between two reading recording dates.
i/ The electricity retail price for residential consumption specified in Clause 4. Article 11 of this Circular applies to temporary and short-term electricity buyers for residential consumption using prepaid card meters. When technical and legal conditions permit, electricity retailers shall install prepaid card meters in places in which there are customers wishing to buy electricity for residential consumption.
5. Electricity sale prices applicable to business activities
These prices apply to consumers of electricity for business or service provision purposes,including:
a/ Enterprises, service shops, departments stores, trade fairs, trading establishments wholesaling or retailing materials and goods, including also pesticide, veterinary drug, plant and animal breeder stores;
b/ Monetary or securities trading establishments, commercial banks, saving funds, financial companies, securities companies;
c/ Business establishments of media companies, cable television companies and digital terrestrial television companies;
d/ Lottery companies;
e/ Institutions engaged in insurance operations (except social insurance and health insurance);
f/ Tourism establishments, photo shops, dancing halls, karaoke rooms, massage parlors;
g/ Restaurants, beverage stalls, hairdresser shops, laundry shops, tailor shops, car and motorcycle washing places;
h/ Advertising activities of production, business or service establishments;
i/ Establishments repairing and restoring automobiles, motorcycles, transport vehicles, consumer goods and household appliances;
j/ Hotels, inns, mini-hotels and guest houses of institutions and individuals; houses leased out as offices with house owners signing electricity purchase contracts;
k/ Ticket offices, cargo-forwarding stations, waiting rooms (including lounges), shops and stores at airports, stations, car terminals and ports;
l/ Road toll booths and car parking lots;
m/ Warehouses for goods in circulation;
n/ Offices and executive offices of business groups, corporations and companies, except cases of electricity consumption specified at Point e. Clause 1 of this Section;
o/ Customer service offices and centers: counseling companies;
p/ Business sections of units operating in the fields of culture, arts, physical training and sports, cultural and information houses, sport competition facilities, museums, exhibition;
q/ Establishments dealing in such physical training and sports facilities as swimming pools, tennis courts and golf courses;
r/ Opera houses, art performance companies; cinema companies and cinemas; circuses;
s/ Communications and postal activities (except universal and mandatory postal services being public-utility ones) and telecommuni­cations activities (except switchboards, transmission networks, receiving and transmitting stations of telecommunications companies);
IV. ELECTRICITY SALE PRICES APPLICABLE TO RURAL AREAS
1. Rural electricity wholesale prices
a/ Rural electricity wholesale prices are prices of electricity sold by the Power Corporation or power companies to rural electricity retailers.
b/ Electricity wholesale prices applicable to rural residential consumption
- Electricity wholesale prices applicable to rural residential consumption specified in Article 15 of this Circular apply to electricity amounts consumed for residential purposes by households in communes, villages or hamlets and bought by rural electricity retailers at master meters installed at transformer stations, regardless of transformer stations built by electricity buyers or sellers and regardless of voltage;
- The wholesale price of electricity applicable lo rural residential consumption for the first 50 kWh specified in Clause 2. Article 15 of this Circular applies to electricity amounts consumed by poor and low-income households which regularly consume not more than 50 kWh per month and have registered with electricity sellers;
- The electricity wholesale prices applicable lo residential consumption in rural areas for the first 100 kWh and for subsequent levels specified in Clause 2. Article 15 of this Circular apply to electricity amounts consumed by ordinary households and for the electricity amount from the 5st kWh above consumed by poor and low-income households which have registered with electricity sellers:
- The total electricity amount for each level indicated on a master meter for calculating electricity charges is equal to the electricity norm of each level specified in Clause 2, Article 15 of this Circular multiplied by the number of registered poor and low-income households or the number of ordinary households behind such master meter;
- The number of rural households consuming electricity for residential purposes behind a master meter is the number of households with permanent residence books or long-term temporary residence certificates within the electricity supply of the master meter as certified by the commune-level police officer in charge of household registration and within the norm indicated in the electricity purchase and sale contract with a rural electricity retailer;
- The number of registered poor and low-income households behind a master meter shall be determined on the basis of the list of poor and low-income households registered for application of the retail tariff specified in Clause 2. Article 11 of this Circular and certified by a lawful representative of the electricity buyer. The electricity wholesaler may check and request the electricity buyer to produce electricity hills and documentary evidence of the registration of poor and low-income households;
- The number of ordinary households is equal to the number of rural households consuming electricity for residential purposes behind a master meter minus the number of registered poor and low-income households;
- The electricity wholesale charge for residential consumption in rural areas in the month of electricity price change shall be computed as follows: The electricity amount of each level of the electricity wholesale prices applicable lo rural residential consumption at old and new prices is the daily amount norm multiplied by the actual number of days before and after the price adjustment in the month of price change. The daily amount norm of each level is the amount of each level divided by the actual number of days in the month of computing.
c/ The wholesale price of electricity consumed for other purposes at master meters for electricity wholesale in rural areas specified in Clause 3, Article 15 of this Circular applies to electricity amounts consumed not for residential purposes.
d/ The electricity amount subject to the wholesale price of electricity at master meters for other purposes is equal to the total commercial electricity amount consumed for other purposes measured at retail meters multiplied by 1.1.
e/ The electricity amount subject to the wholesale price applicable to rural residential consumption by registered poor and low-income households is equal to the total commercial electricity amount consumed by registered poor and low-income households measured at retail meters multiplied by 1.1.
f/ The electricity amount subject to the wholesale price applicable to residential consumption in rural areas by ordinary households is equal to the total wholesaled electricity amount measured at master meters minus the amount subject to the wholesale price of electricity for other purposes and the amount subject to the wholesale price applicable to residential consumption in rural areas by registered poor and low-income households.
In case customers consuming electricity behind a master meter are only poor and low-income households registered for the application of the electricity retail tariff specified in Clause 2, Article 11 of this Circular and customers consuming electricity for other purposes, the electricity amount consumed by poor and low-income households is equal lo the amount measured at the master meter minus the amount subject to the wholesale price for other purposes measured at the master meter.
In case customers consuming electricity behind a master meter are only poor and low-income households registered for the application of the electricity retail tariff specified in Clause 2. Article 11 of this Circular. the wholesale price of electricity applicable to poor and low-income households specified in Clause 2, Article 15 of this Circular shall apply to the whole amount measured at the master meter.
Example:
Case 1: The master meter at a transformer station which supplies electricity for a village of 200 households consuming electricity for residential purposes measures in a month an electricity amount of 98.500 kWh. Within the scope of supply of electricity behind this master meter, there are households consuming electricity for residential purposes (including 25 households registered for the application of the tariff for poor and low-income households, which consume a total commercial electricity amount of 1,050 kWh) and a number of households consuming electricity for other purposes (production, business and services) with their own meters measuring a total electricity amount of 10,000 kWh in the month. The electricity charge payable by the rural electricity retailer to the power company for the electricity amount measured at this master meter shall be calculated as follows:

No.
Consumed amount/household/month
Month
Number of households
Amount (kWh)
Wholesale Price (VND/kWh)
Charge (exclusive of VAT) (VND)
1
Electricity consumed for other purposes
 
11.000
1.063
11.691.257
11
Electricity consumed by registered poor and low-income households for residential purposes
 
 
 
 
 
For the first 50 kWh
25
1.155
807
932.085
111
Electricity consumed by ordinary households for residential purposes
 
86.345
 
117,030.165
1
From 0 kWh to 100th kWh
175
17.500
981
17,167.500
2
From 101st kWh to 150th kWh 175
175
8.750
1.054
9.222.500
 
From 151st kWhto200thk\Vh 175
175
8.750
1.335
11.681.250
4
From 201st kWh to 300th kWh 175
175
17.500
1.455
25.462.500
5
From 301st kWh to 400th kWh 175
175
17.500
1.556
27.230.000
6
From401st kWh 175
175
16.345
1.607
26.266.415
 
Total
 
98.500
 
129.653.507
 
VAT (10%)
 
 
 
12.965.351
 
Payable electricity charge
 
 
 
142.618.857

Case 2: The master meter at a transformer station which supplies electricity for a village of 200 households consuming electricity for residential purposes measures in a month an electricity amount of 98,500 kWh. Within the scope of supply of electricity behind this master meter, there are households consuming electricity for residential purposes (including 25 households registered for the application of the tariff for poor and low-income households, which consume a total commercial electricity amount of 1,050 kWh) and a number of households consuming electricity for other purposes (production, business and services) with their own meters measuring a total electricity amount of 10,000 kWh in the month. The electricity charge payable by the rural electricity retailer to the power company for the electricity amount measured at this master meter shall be calculated as follows:

No.
Consumed amount/household/month
Month....
Number of households
Amount (kWh)
Wholesale price (VND/kWh)
Charge (exclusive of VAT) (VND)
I
Electricity for other purposes
 
11,000
1.063
11,691.257
II
Electricity for daily life of registered poor and low-income households
 
1,650
 
1,401,150
 
For the first 50 kWh
25
1.250
807
1.008,750
 
From the 51st kWh
25
400
981
392,400
III
Electricity for daily life of ordinary households
 
85,850
 
116,234,700
1
From 0 kWh to l00th kWh
175
17,500
981
17,167.500
2
From 101st kWh to 150th kWh
175
8.750
1,054
9,222,500
3
From 151st kWh to 200th kWh
175
8,750
1,335
11.681.250
4
From 201st kWh to 300th kWh
175
17,500
1,455
25,462,500
5
From 301st kWh to 400th kWh
175
17,500
1.556
27,230.000
6
From 401st kWh
175
15,850
1,607
25.470.950
 
Total
 
98,500
 
129.327.107
 
VAT (10%)
 
 
 
12,932,711
 
Payable electricity charge
 
 
 
142.259,817

g/ Within 3 days after recording the reading on a master meter for a payment period, the rural electricity retailer shall provide to the electricity wholesaler:
- A statement of commercial electricity amounts consumed for other purposes;
- A list of registered poor and low-income households regularly consuming less than 50 kWh a month and commercial electricity amounts of each household;
- A list of households added or reduced (if any) certified by the commune-level police officer in charge of household registration.
Past this time limit, if the electricity retailer fails to provide fully the above documents, the electricity wholesaler may apply the wholesale price of electricity applicable to rural residential consumption of the level from the 151st to 200th kWh applicable to ordinary households specified in Clause 2. Article 15 of this Circular to the whole electricity amount measured at the master meter.
h/ In case transformer stations of agricultural or forestry farms in rural areas supply electricity for residetial consumption and other purposes, the wholesale price of electricity applicable to rural residential consumption shall be applied to the whole electricity amount measured at master meters.
2. Rural electricity retail prices:
Rural electricity retail prices shall be applied as follows:
a/ Electricity retail prices applicable to rural residential consumption are those in the electricity retail tariff applicable to residential consumption provided in Article 11 of this Circular.
b/Retail prices of electricity for production, irrigation, non-business administrative and business purposes in rural areas are those in the retail tariff of electricity for corresponding purposes at the voltages specified in Articles 7, 8, 9 and 10 of this Circular.
V. ELECTRICITY SALE PRICES APPLICABLE TO CONDOMINIUMS AND RESIDENTIAL CLUSTERS
1. Electricity wholesale prices applicable to condominiums and residential clusters
a/ Electricity wholesale prices applicable to condominiums and residential clusters specified in Article 16 of this Circular are those at master meters applied by the Power Corporation, power companies or their authorized units to electricity retailers for retail to consumers in non-rural areas and outside industrial parks or to consumers in rural areas with master meters installed at feeder connection points of low-voltage transmission lines.
b/ Wholesale prices of electricity applicable to residential consumption at condominiums and residential clusters
- Wholesale prices of electricity applicable to residential consumption at condominiums and residential clusters specified in Article 16 of this Circular apply to electricity amounts consumed for residence by households and bought by electricity retailers at master meters installed at transformer stations, regardless of voltage;
- The wholesale price of electricity applicable to resdential consumption at condominiums and residential clusters for the first 50 kWh specified in Clause 2. Article 16 of this Circular applies to electricity amounts consumed by poor and low-income households regularly consuming not more than 50 kWh a month and registered with electricity sellers;
The wholesale price of electricity applicable to residential consumption at condominiums and residential clusters for the whole first 100 kWh and prices corresponding to subsequent levels specified in Clause 2. Article 16 of this Circular apply to electricity amounts consumbed by ordinary households and for the 51st kWh and above consumbed by-poor and low-income households registered with electricity sellers;
- The total electricity amount for each level measured at a master meter for charge calculation is equal to the electricity norm of each level specified in Clause 2; Article 16 of this Circular multiplied by the number of registered poor and low-income households or the number of ordinary households behind such master meter;
- The number of households consuming electricity for residential purposes at condominiums and residential clusters behind a master meters is the number of households with permanent residence books or long-term temporary residence registration certificates and falling within the scope of supply of such master meter as certified by the commune or ward police officer in charge of household registration and within the norm indicated in the electricity purchase and sale contracts signed with electricity retailers;
- The number of registered poor and low-income households behind a master meter shall be determined on the basis of the list of poor and low-income households registered for application of the retail tariff specified in Clause 2, Article 11 of this Circular and certified by a lawful representative of the electricity buyer. The electricity wholesaler may check and request the electricity buyer to produce electricity bills and documentary evidence of the registration of poor and low-income households;
- The number of other ordinary households is equal to the number of rural households consuming electricity for residential purposes behind a master meter minus the number of registered poor and low-income households;
- The electricity wholesale charge for residential consumption at condominiums and residential clusters in the month of electricity price change shall be calculated as follows: The electricity amount of each level of the electricity wholesale prices applicable to residential consumption at condominiums and residential clusters at old and new prices is the daily amount norm multiplied by the actual number of days before and after the price adjustment in the month of price change. The daily amount norm of each level is the amount of each level divided by the actual number of days in the month of calculation.
c/ Wholesale prices of electricity applicable to residential consumption bought from electricity wholesalers and retailed by electricity retailers to condominiums of cadres, workers, public employees, pupils, students, armed forces personnel, and homes of monks shall be applied as follows:
- In case it is possible to declare the number of individual consumers, every 4 consumers shall be considered a household for calculating the progressive electricity norm for residential consumption under Point b of this Clause;
- In case it is impossible to declare the number of individual consumers, the electricity wholesale price applicable to residential consumption of the level from the 151st to the 200th kWh for corresponding areas specified in Clause 2. Article 16 of this Circular shall be applied.
d/ Wholesale prices of electricity consumed for other purposes at condominiums and residential clusters
- The wholesale price of electricity applicable to condominiums and residential clusters specified in Clause 3, Article 16 of this Circular applies to electricity amounts consumed for non-residential purposes;
- The electricity amount subject to the wholesale price of electricity consumed for other purposes is equal to the total commercial electricity amount measured at retail meters for other purposes multiplied by 1.1;
- The electricity amount subject to the wholesale price of electricity consumed for other purposes at high-rise apartment buildings and new urban centers is equal to the total commercial electricity amount measured at retail meters for other purposes multiplied by 1.02.
e/ The electricity amount subject to the wholesale price of electricity consumed for residential purposes by registered poor and low-income households in condominiums and residential clusters is equal to the total commercial electricity amount consumed by poor and low-income households and measured at retail meters multiplied by 1.1.
f/ The electricity amount subject to the wholesale price of electricity consumed for residential purposes by ordinary households in condominiums and residential clusters is equal to the total wholesale electricity amount measured at the master meter minus the electricity amount subject to the wholesale price of electricity consumed for other purposes and the wholesale price of electricity consumed for residential purposes by registered poor and low-income households in condominiums and residential clusters.
In case customers consuming electricity behind a master meter are only poor and low-income households registered for the application of the electricity retail tariff specified in Clause 2. Article 11 of this Circular and customers consuming electricity for other purposes, the electricity amount consumed by poor and low-income households is equal to the amount measured at the master meter minus the amount subject to the wholesale price for other purposes measured at the master meter.
In case customers consuming electricity behind a master meter are only poor and low-income households registered for the application of the electricity retail tariff specified in Clause 2, Article 11 of this Circular, the wholesale price of electricity applicable to poor and low-income households specified in Clause 2, Article 15 of this Circular shall apply to the whole amount measured at the master meter.
Example:
Case 1: The master meter at a transformer station (built by the buyer - the electricity retailer) supplies electricity for a residential cluster of 50 households in a town for residential consumption, including 5 households registered for the application of the tariff for poor and low-income households, and a total electricity amount measured at retail meters of these five households is 210 kWh. The electricity amount measured at the master meter in a month is 25,000 kWh. In addition to these households, there are also households consuming electricity supplied through this master meter for other purposes (production, business and service provision) with their own meters measuring in the month a total electricity amount of 2,000 kWh. The electricity charge payable by the electricity retailer to the power company for the electricity amount measured at this master meter shall be calculated as follows:

No.
Consumed amount/household/month
Month....
Number of households
Amount (kWh)
Wholesale price (VND/kWh)
Charge (exclusive of VAT) (VND)
I
Electricity consumed for other purposes
 
2.200
1,072
2,358,334
II
Electricity consumed by registered poor and low-income households for residential purposes
 
 
 
 
 
For the first 50 kWh
5
231
900
207,900
III
Electricity consumed by ordinary households for residential purposes
 
22.569
 
35,160,426
1
From 0 kWh to 100th kWh
45
4,500
1.117
5,026.500
2
From 101st kWh to 150thkWh
45
2,250
1,200
2,700.000
3
From 151st kWh to 200thkWh
45
2,250
1,520
3,420.000
4
From 201st kWh to 300th kWh
45
4.500
1.668
7.506.000
5
From 301st kWh to 400th kWh
45
4.500
1,786
8.037.000
6
From 401st kWh
45
4.345
1.854
8.470.926
 
Total
 
25.000
 
37.726.660
 
VAT (10%)
 
 
 
3.772.666
 
Payable electricity charge
 
 
 
41.499.326

Case 2: The master meter at a transformer station (built by the buyer - the electricity retailer) supplies electricity for a residential cluster of 50 households in a town for residential consumption, including 5 households registered for the application of the tariff for poor and low -income households, and a total electricity amount measured at retail meters of these live households is 210 kWh. The electricity amount measured at the master meter in a month is 25.000 kWh. In addition to these households, there are also households consuming electricity supplied through this master meter for other purposes (production, business and service provision) with their own meters measuring in the month a total electricity amount of 2,000 kWh. The electricity charge payable by the electricity retailer to the power company for (he electricity amount measured at this master meter shall be calculated as follows:

No.
Consumed amount/household/month
Month....
Number of households
Amount (kWh)
Wholesale Price (VND/kWh)
Charge (exclusive of VAT) (VND)
I
Electricity consumed for other purposes
 
2.200
1.072
2.358.334
II
Electricity consumed by registered poor and low-income households for residential purposes
 
330
 
314.360
 
For the first 50 kWh
5
250
900
225.000
 
From the 51st kWh
5
800
1.117
89.360
III
Electricity consumed by ordinary households for residential purposes
 
22,470
 
34.976.880
1
From 0 kWh to 100th kWh
45
4.500
1.117
5.026.500
2
From 101st kWh to 150th kWh
45
2.250
1.200
2.700.000
3
From 151stkWh to 200th kWh
45
2.250
1.520
3.420.000
4
From 201st kWh to 300th kWh
45
4.500
1.668
7.506.000
5
From 301st kWh to 400th kWh
45
4,500
1.786
8.037.000
6
From 401st kWh
45
4.470
1.854
8.287.380
 
Total
 
25.000
 
37.649.574
 
VAT (10%)
 
 
 
3.764.957
 
Payable electricity charge
 
 
 
41.414.532

g/ Within 3 days after recording the reading on a master meter for a payment period, the rural electricity retailer shall provide to the electricity-wholesaler:
- A statement of commercial electricity amounts consumed for other purposes;
- A list of registered poor and low-income households regularly consuming less than 50 kWh a month and commercial electricity amounts of each household;
- A list of households added or reduced (if any) certified by the commune-level police officer in charge of household registration.
Past this time limit, if the electricity retailer fails to provide fully the above documents, the electricity wholesaler may apply the wholesale price of electricity applicable to corresponding areas of the level of from the 151st to 200th kWh applicable to other ordinary households specified in Clause 2, Article 15 of this Circular to the whole electricity amount measured at the master meter.
For high-rise apartment buildings in cities and new urban centers, within 3 days after recording readings on the master meter, the electricity retailer shall provide the electricity wholesaler with bills or a list of commercial electricity amounts consumed for other purposes and the norm for households consuming electricity for resdential purposes with the certification of a lawful representative of the electricity retailer enclosed with a list of households added or reduced (if any) certified by the ward police officer in charge of household registration for calculation of electricity charges. Fast this lime limit, if the electricity retailer fails to provide fully the above documents, the electricity wholesaler may apply the residential electricity wholesale price of the level from the 201st to 300th kWh to the whole electricity amount consumed for residential purposes sold through the master meter.
h/ For rural areas which are decided by competent authorities to be transformed into urban areas within townships, towns or cities or townships decided to be upgraded into towns or cities, electricity retailers in these areas may continue applying the tariff applicable to old areas within 6 months after the issuance of such decisions. Past that time limit, electricity retailers shall apply electricity sale prices applicable to new areas.
Example: Communes A. B and C arc decided by a competent authority to be transformed into wards belonging to an urban district of a city from April 15. 2012. Not later than October 15, 2012, electricity retailers in these communes shall shift from the electricity wholesale tariff applicable to rural areas to the wholesale tariff applicable to condominiums and residential clusters in cities or towns.
2. Electricity retail prices applicable to condominiums and residential clusters
Electricity retail prices applicable to condominiums and residential clusters shall be applied as follows:
a/ Electricity retail prices applicable to residential consumption at condominiums and residential clusters are those in the electricity retail tariff applicable to residential consumption specified in Article 11 of this Circular.
b/ Electricity retail prices applicable to production, non-business administrative and business activities at condominiums and residential clusters are those in the electricity retail tariff applicable to corresponding purposes at the voltages specified in Articles 7, 8, 9 and 10 of this Circular.
VI. ELECTRICITY SALE PRICES APPLICABLE TO INDUSTRIAL PARKS
1. Electricity wholesale prices applicable to industrial parks
a/ Electricity wholesale prices applied by power companies to electricity retailers in industrial parks are specified in Article 17 of this Circular.
b/ Wholesale prices of electricity specified in Article 17 of this Circular apply to industrial parks in which electricity retailers build 110 kV transformer stations and medium-voltage transmission lines to sell electricity to electricity consumers in these industrial parks. Wholesale prices of electricity applicable to each 110/35-22-10-6 kV transformer station shall be determined on the basis of the total capacity of the 110 kV transformer installed at the station.
Example: The electricity management and retail unit in industrial park A buys electricity from electricity seller B at the 110 kV busbar of a 110/22 kV transformer station to sell to electricity consumers in the industrial park at the voltage of 22 kV. The 110/220 kV transformer station has 2 transformers of 40 MVAeach. The total capacity of the transformer station is 2 x 40 MVA = 80 MVA.
Prices shall be applied as follows:
 
Wholesale prices of electricity (VND/kWh)
- Off-peak hours
1.055
- Low load hours
642
- Peak hours
1.917
The electricity management and retail unit in industrial park A sells electricity to production households in the industrial park at the voltage of 22 kV at the following prices:
 
Wholesale prices of electricity (VND/kWh)
- Off-peak hours
1.128
- Low load hours
710
- Peak hours
2.049
c/ Electricity wholesale prices specified in Clause 2, Article 17 of this Circular apply to cases in which electricity retailers in industrial parks buy electricity from electricity sellers at medium-voltage busbars of 110/35-22-10-6 kV transformer stations or feeder connection points of medium-voltage transmission lines and retail electricity to electricity consumers in these industrial parks at the medium-voltage side of 35-22-10-6 kV/0.4 kV transformer stations.
The electricity wholesale price at a master meter is the retail price of electricity applicable to manufacturing industries specified in Article 7 of this Circular at the corresponding voltage reduced by 2%. The electricity amount for calculating the reduced price shall be based on the actual amount measured at the master meter.
Example: The electricity management and retail unit in industrial park A buys electricity from an electricity seller at the 22 kV busbar of the 110/22 kV transformer station of the industrial park to sell to electricity-consuming households in the industrial park at the 22kV side of the 22/0.4 kV transformer station:
Electricity charges shall be paid by the electricity management and retail unit in industrial park A to the electricity seller at the following prices:
 
Prices of electricity (VND/kWh)
- Off-peak hours
- Low load hours
- Peak hours
1.128 x 98% = 1,105
710 x 98% = 696
2.049 x 98% = 2.008
The electricity retail price at which the electricity management and retail unit in industrial park A sells electricity to consumers in the industrial park at the voltage of 22 kV is as follows:
 
Sale prices of electricity (VND/kWh)
- Off-peak hours
1,128
- Low load hours
710
- Peak hours
2,049
d/ Electricity wholesale prices specified in Clause 3. Article 17 of this Circular apply to cases in which electricity retailers in industrial parks buy electricity from electricity sellers at the medium-voltage side of 35-22-10-6/0.4 kV transformer stations and retail electricity to electricity consumers in these industrial parks at the voltage of 0.4 kV.
The electricity wholesale price at a master meter is the retail price of electricity at the corresponding medium voltage applicable to manufacturing industries specified in Article 7 of this Circular.
Example: The electricity retailer in industrial park A buys electricity from an electricity seller at the voltage of 22 kV to sell to electricity-consuming households in the industrial park at the voltage of 0.4kV:
Electricity charges shall be paid by the electricity retailer in industrial park A to the electricity seller at the following prices
 
Sale prices of electricity (VND/kWh)
- Off-peak hours
1.128
- Low load hours
710
- Peak hours
2,049
2. Retail prices of electricity sold to consumers in industrial parks
a/ Retail prices of electricity sold to consumers in industrial parks apply to proper subjects and are equal to those specified in Chapter II of this Circular.
b/ Retail prices of electricity sold to consumers in industrial parks buying electricity from the national power grid while having on-spot electricity generation sources are those specified in Article 13 of this Circular.-
 
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