Circular No. 45/2018/TT-BCT the operation of competitive wholesale electricity market

CIRCULAR

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

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 Law on Electricity dated December 03, 2004, and the Law dated November 20, 2012 amending and supplementing a number of articles of the Law on Electricity;

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;

Pursuant to the Prime Minister's Decision No. 63/2013/QD-TTg dated November 8, 2013 defining the roadmap, conditions and structure of the electricity industry to form and develop electricity market levels in Viet Nam;

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

The Minister of Industry and Trade promulgates the Circular prescribing the operation of competitive wholesale electricity market, 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.

Chapter I
GENERAL PROVISIONS

Article 1. Scope of regulation

This Circular prescribes:

1. Operation of the competitive wholesale electricity market (hereinafter referred to as the electricity market for short) and the responsibilities of the electricity market participants.

2. Amendments and supplements to 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 2. Subjects of registration dossier

This Circular applies to the following electricity market participants:

1. Electricity wholesale buyers.

2. Generating units.

3. Power system and market operating units.

4. Transmission network operators.

5. The Vietnam Electricity.

Article 3. Interpretation of terms

In this Circular, the terms below are construed as follows:

1. AGC (Automatic Generation Control) means an equipment system automatically controlling the increase or decrease of active power of a generating set to maintain a stable frequency of the power system within the permissible range in accordance with the economic operation principle of such generating set.

2. Quotation means a quotation for electrical power to be sold on the electricity market of each generating set, which is submitted by a bidding unit to a power system and market operating unit using the model quotation issued together with this Circular.

3. Scheduling quotation means a quotation approved by a power system and market operating unit to set the for day-ahead or trading period-ahead mobilization schedule.

4. Default quotation means a quotation used by a power system and market operating unit to set the schedule for day-ahead or trading period-ahead mobilization schedule in cases where a valid quotation from the generating unit is not received.

5. Settlement Statement means a statement of settlements issued by the power system and market operating unit in each trading day and each settlement period for a directly-trading generating unit and power buyers.

6. Electricity market intervention means the measure of changing the normal operation mode of the electricity market which must be taken by a power system and market operating unit to handle the situations specified in Clause 1, Article 64 of this Circular.

7. Settlement period means the period of making documents and invoices for transactions on the electricity market within 01 month from the 1^st day of each month.

8. Announced capacity means the maximum available capacity of a generating set that a bidding unit, or a power system and market operating unit, and a generating unit signing a contract on providing auxiliary services announced in accordance with the electricity market operation schedule.

9. Dispatch capacity means the actual capacity of a generating set mobilized by the power system and market operating unit in a trading period.

10. Trading period-ahead mobilized capacity means the capacity of a generating set intended to be mobilized for the first trading period in the trading period-ahead mobilization schedule.

11. Day-ahead mobilized capacity means the capacity of a generating set intended to be mobilized for the trading periods in the day-ahead trading period mobilization schedule in accordance with the bound scheduling results.

12. Increased generation capacity means the difference between the dispatch capacity and capacity arranged in the market pricing schedule of a generating set.

13. Auxiliary services means services of frequency control, roatation reserve, quick-start reserve, and must-run operation, aiming at ensuring power system security, voltage regulation and black start.

14. Frequency control reserve service includes frequency control and reserve service.

15. Increased electrical power means the amount of electrical power generated by a generating set to be mobilized in proportion to the increased generation capacity.

16. Bidding unit means a unit that directly submits the quotation in the electricity market, including a generating unit or a power plant that is registered for directly making quotation and a unit representing a group of cascade hydropower plants to make quotations.

17. Electricity wholesale buyer means a power trading unit with the function of buying power wholesale on the spot electricity market (at the point of delivery between the power transmission network and the power distribution network, and at the point of delivery with power plants on the distribution network). In the first stage of power market operation, the wholesale buyers are 05 Electricity Corporations under the Vietnam Electricity (Electricity Corporations of the North, the Central Region, the South, Hanoi, and Ho Chi Minh City).

18. Electricity buyer is a unit participating in the electricity wholesale market as an electricity buyer, including wholesale buyers and the Vietnam Electricity.

19. Electricity importer means a power trading unit with the function of signing and managing electricity import contracts, in which the points of import on the transmission network are connected or not connected to the national power system in accordance with regulations.

20. Generating unit means a unit that owns one or more power plants participating in the electricity market and signs power purchase agreements for such power plants with the electricity buyers.

21. Indirectly trading generating unit means a generating unit whose power plant does not directly provide quotations on the electricity market and does not apply a payment mechanism in the electricity market.

22. Directly trading generating unit means a generating unit whose power plant may provide quotations, set up a mobilization schedule using its quotations and calculate payments in accordance with the provisions of Chapter VIII of this Circular.

23. Metered power data managing unit means a unit that manages and operates the system to collect, process and store the metered data of electrical power for the electricity market, including the power system and market operating units, generating units, transmission network operators, and electricity wholesale buyers under their scope of metered data management.

24. Transmission network operator means an electricity trading unit licensed to conduct activities in the field of electricity transmission and responsible for the management and operation of the national transmission network.

25. Power system and market operating unit means a unit that directs the control and process of electricity generation, transmission, and distribution in the national power system, and monitors electricity market transactions.

26. Power exporter means an electricity trading unit with the function of signing and managing electricity export contracts with the point of delivery for export on the transmission network of the national power system in accordance with regulations.

27. Capacity Add-on Price (CAN) means a calculating price for each trading period applicable in the capacity settlement calculation for generating units in the electricity market.

28. Quotation price floor means the lowest price in the quotation that a bidding unit can provide for a generating set in a day-ahead quotation.

29. System Marginal Price (SMP) means a unit price of a power unit determined in each trading period, applicable to the power settlement calculation in the electricity market.

30. Full Market Price (FMP) means the sum of a CAN and a SMP in a trading period.

31. Quotation price ceiling means the highest price of the quotation that a bidding unit can provide for a generating set in a day-ahead quotation.

32. Market price ceiling means the highest SMP determined in each year.

33. Water value means an expected marginal price calculated based on water stored in hydropower reservoirs to be used to generate electricity in replacement for thermal sources in the future, converted to one power unit.

34. Performance degradation coefficient means the coefficient of performance degradation of a generating set over the time of operation.

35. Annual or monthly average load coefficient means the ratio between the total power output quantity in a year or a month and the product of the total installed capacity and the total number of hours applicable ib the annual or monthly load coefficient calculation.

36. Electricity market information system means a system of equipment and databases serving the management and exchange of electricity market information managed by the power system and market operating unit.

37. Power purchase agreement means a power sale and purchase agreement signed by an electricity buyer and a directly trading generating unit using the form issued by the Ministry of Industry and Trade.

38. Conditional generation scheduling means the orderly mobilization of generating sets by the method of minimizing power purchase costs regarding technical restrictions of the power system.

39. Non-conditional generation scheduling means the orderly mobilization of generating sets by the method of minimizing power purchase costs regardless of constraints of the power system.

40. Trading period-ahead mobilization schedule means an expected mobilization schedule of generating sets to generate power and provide auxiliary services for the trading period ahead and the trading periods within the next three hours calculated and announced by a power system and market operating unit.

41. Day-ahead mobilization schedule means an expected mobilization schedule of generating sets to generate power and provide auxiliary services for the trading periods of the trading day ahead made by a power system and market operating unit.

42. SMP pricing schedule means a schedule made by a power system and market operating unit after the current trading day in order to determine the SMPs for each trading period.

43. Electricity market simulation model means a system of software registration dossiers used to simulate the mobilization of generating sets and calculate SMPs by a power system and market operating unit in elaborating its annual, monthly, and weekly operation plans.

44. Water value calculation model means an optimal hydrothermal software system used to calculate water value by a power system and market operating unit in elaborating its annual, monthly, and weekly operation plans.

45. Water level limit means the lowest upstream water level of a hydropower reservoir at the end of each month of the year or at the end of each week of the month calculated and announced by a power system and market operating unit following the Procedures for medium- and short-term power system security assessment issued by the Electricity Regulatory Authority, guiding the implementation of the Regulation on electricity transmission system as prescribed by the Ministry of Industry and Trade.

46. ​​Optimal water level means the upstream water level of a hydropower reservoir at the end of each month or at the end of each week ensuring the most efficient use of water for electricity generation and meeting the conditional requirements, which is calculated and announced by a power system and market operating unit.

47. Year N means the current year in operation of the electricity market, calculated by calendar years.

48. Day D means the current trading day.

49. Trading day means a day when electricity market transactions take place, from 00:00 to 24:00 every day.

50. BOT power plant means a power plant invested in the form of Build - Operate - Transfer under a contract between an investor and a competent State agency.

51. Best newly-built power plant means a newly-built thermal power plant that comes into operation with the lowest average electricity generation price calculated for the year ahead and the power purchase agreement price based on the electricity generation price range for standard power plants issued by the Ministry of Industry and Trade. The best newly-built power plants shall be selected annually for calculating CANs.

52. Multi-purpose strategic hydropower plant means a hydropower plant in the list of large power plants of particular importance in terms of socio-economy, national defense and security approved by the Prime Minister and the list of power plants operating in coordination with large power plants of particular importance in terms of socio-economy, national defense and security approved by the Ministry of Industry and Trade.

53. Appointed power plant means a power plant with a power purchase agreement with the Vietnam Electricity appointed to an electricity wholesale buyer as prescribed in Clause 2, Article 40 of this Circular.

54. Group of cascade hydropower plants means a group of hydropower plants, in which the amount of water cascading down from the reservoir of the hydropower plant at the higher stage accounts for all or most of the water to the reservoir of the hydropower plant at the lower stage of the cascade, and between these two power plants do not have a water-controlling reservoir storing water for more than 01 week.

55. Trading node means a position used to determine the delivered power quantity of electricity purchase and sale transactions on the spot electricity market in the electricity market.

56. Mobilization scheduling software means a software system used by a power system and market operating unit to make day-ahead or trading period-ahead mobilization schedules for generating sets in the electricity market.

57. System load means the sum of the power output quantity of the entire power system converted to generating sets’ terminals and the imported power output quantity in a trading period minus the output quantity of power plants with the total installed capacity of less than or equal to 30MW not participating in the electricity market and the output of cascade hydropower plants on the same river belonging to a generating unit with a total installed capacity of less than or equal to 60MW (meeting the conditions for avoidable cost tariff regulations issued by the Ministry of Industry and Trade). 

58. Annual planned output quantity means the power output quantity of a power plant expected to be mobilized in the year ahead.

59. Monthly planned output quantity means the power output quantity of a power plant expected to be mobilized in the months of the year.

60. Heat dissipation rate means the amount of heat consumed by a generating set or power plant to produce a power unit.

61. Conditional generation payment means the payment to a generating unit for the increased amount of generated electrical power.

62. Month M means the current month of the electricity market in operation, calculated by calendar months.

63. Spot electricity market means a market that makes the mobilization schedule, calculate the market price using the quotation, and settle each trading period of a day for power purchase transactions between generating units and power buyers.

64. Capacity shortage means a situation when the total announced capacity of all generating units is less than the forecasted system load demand in a trading period.

65. Confidential information means information that is confidential under the law provisions or by agreement among the parties.

66. Market information means all data and information related to the activities of the electricity market.

67. Bidding deadline means the time after which the generating units are not allowed to change the quotation of the next day, except for the cases specified in Article 47 of this Circular. In the electricity market, the bidding deadline of day D is 11:30 of day D-1.

68. Mobilization order means the result of arranging capacity ranges in the quotation following the low-to-high pricing principle regarding the constraints of the power system.

69. Overcapacity means a situation when the total capacity at the price floor provided by a directly trading generating unit and the planned mobilization capacity of power plants belonging to an indirectly trading generating unit announced by a power system and market operating unit in a region or for the whole power system in a trading period are greater than the regional load or the forecasted system load.

70. Total hours for calculating annual load coefficient means the total number of hours in year N for the generating sets that have been in commercial operation since year N-1 or earlier, or the total hours form the beginning of the commercial operation to the end of a year for generating sets put into commercial operation in year N, minus the time for repairing the generating sets in accordance with the approved plan in year N.

71. Total hours for calculating monthly load coefficient means the total number of hours in month M for the generating sets that have been in commercial operation since year M-1 or earlier, or the total hours form the beginning of the commercial operation to the end of a month for generating sets put into commercial operation in month M, minus the time for repairing the generating sets in accordance with the approved plan in month M.

72. Slow start generating set means a generating set that is incapable of starting and connecting to the network in less than 30 minutes.

73. Week T means the current week of electricity market operation.

74. Metering points means the location where the electricity metering system is installed to determine the delivered power output quantity for the electricity market payments in accordance with the Regulation on metering of electrical power in the power system issued by the Ministry of Industry and Trade and other relevant regulations.

Chapter II
REGISTRATION FOR PARTICIPATION IN THE ELECTRICITY MARKET

Article 4. Responsibility of generating units to participate in the electricity market

1. A power plant that has an electricity trading license in the field of electricity generation, with an installed capacity of more than 30 MW connected to the national power system shall complete registration procedures and directly participate in the electricity market, except for power plants specified in Clause 3 of this Article.

2. Power plants with installed capacity of up to 30MW connected to the network with voltage from 110kV or more (unless otherwise as specified at Points a, c, d, dd, e, Clause 3 of this Article) and power plants using renewable energy other than hydropower with installed capacity of more than 30 MW may choose to participate in the electricity market or not. In case of participating in the electricity market, the power plants shall:

a) Prepare infrastructure as prescribed in Clause 4 of this Article;

b) Complete and submit the registration dossier for participation in the electricity market as prescribed in Clause 1, Article 7 of this Circular;

c) Comply with requirements for generating units participating in the electricity market as prescribed in this Circular, and other relevant legal documents.

3. Power plants indirectly participating in the electricity market include:

a) BOT power plants;

b) Power plants using renewable energy other than hydropower (unless otherwise specified in Clause 2 of this Article);

c) Gas turbine power plants bound by maximum use of gas fuel sources to ensure national interests;

d) Power plants in industrial parks selling only a portion of their power output quantity to the national power system;

dd) Multi-purpose strategic hydropower plants;

e) Imported power sources.

4. Before November 1 of year N-1, the power system and market operating unit shall make a list of directly and indirectly generating units and electricity buyers in the electricity market in year N, and send a report on the list to the Electricity Regulatory Authorities to announce to participants in the electricity market.

5. A generating unit that owns a power plant participating in the electricity market shall invest in and perfect the equipment system for connection to the electricity market information system (including: dispatch order management system, electricity market settlement support system, internal electricity market information network system), SCADA/EMS, power metering and digital signature system meeting the operational requirements of the electricity market, and other systems as required.

Article 5. Responsibility of electricity wholesale buyers to participate in the electricity market

1. Electricity wholesale buyers shall register for participation in the electricity market in cases where they buy electricity at metering points of the electricity wholesale market as prescribed in Article 70 of this Circular.

2. An electricity wholesale buyer shall invest in and perfect the equipment system for connection to the electricity market information system, the power metering system, the telemetry data collection system at boundary metering points within its scope of management, the digital signatures meeting the operational requirements of the electricity market, and other systems as required.

Article 6. Deadlines for participating in the electricity market

1. Generating units participating in the competitive electricity generation market and electricity wholesale buyers participating in the pilot electricity wholesale market shall continue to participate in the electricity wholesale market from the day when the competitive wholesale electricity market officially comes into operation.

2. For other cases

a) A generating unit that owns power plants shall participate in the electricity market from:

- The first day of month M if the commercial operation of its power plants is recognized before 20^th day of month M-1;

- The first day of month M+1 if the commercial operation of its power plants is recognized in between the 20^th day and the last day of month M-1.

b) Electricity wholesale buyer shall participate in the electricity market from the date of delivery, receipt, and purchase of electricity from the transmission network.

Article 7. Registration dossier for participation in the electricity market

1. For generating units

a) In 07 working days prior to the deadline for participating in the electricity market as prescribed in Article 6 of this Circular, a generating unit shall complete and submit 01 market participation registration dossier for each of its power plants to the power system and market operating unit via the electricity market website;

b) A registration dossier for electricity market participation by a generating unit shall comprise:

- A registration form for participation in the electricity market, clearly stating the name and address of the generating unit, its power plant, the subject of the quotation on the electricity market and the expected date for providing quotations on the electricity market;

- A copy of its electricity trading license in the field of electricity generation;

- Records of acceptance and putting into operation of the systems as prescribed in Clause 5, Article 4 of this Circular;

- A copy of the power purchase agreement and the written recognition of the commercial operation date of its power plant;

- A copy of the agreement on the unit representing a group of cascade hydropower plants to make quotations (in cases where the generating unit is the representative of a group of cascade hydropower plants).

2. For electricity wholesale buyers

a) In 07 working days prior to the deadline for participating in the electricity market as prescribed at Point b, Clause 2, Article 6 of this Circular, an electricity wholesale buyer shall complete and submit 01 market participation registration dossier for each of its power plants to the power system and market operating unit via the electricity market website;

b) A registration dossier for electricity market participation by an electricity wholesale buyer shall comprise:

- A registration form for participation in the electricity market, clearly stating the name and address of the electricity buyer and the expected date for participating in the electricity market;

- A copy of its electricity trading license;

- A document on the list of metering points and the method of power delivery at its boundary metering points;

- Records of acceptance and putting into operation of the telemetry data collection system at the boundary metering points under its scope of management, the internal electricity market information network system, and the digital signatures.

Article 8. Appraisal of registration dossiers for participation in the electricity market

1. Within 02 working days since a registration dossier is received, the power system and market operating unit shall check the completeness of the registration dossier and request the registrant to supplement and complete the dossier if it does not meet the provisions of Article 7 of this Circular.

2. Within 03 working days since a valid registration dossier is received, the power system and market operating unit shall check the dossier and assess the ability to officially participate in the electricity market of the registrant.

3. In cases where the registrant fully satisfies the conditions for participation in the electricity market, the power system and market operating unit shall notify the registrant and publish on the information the electricity market website within at least 24 hours prior to the time such registrant officially participates in the electricity market.

Article 9. Information about participants in the electricity market

1. Market participants shall register their general information to the power system and market operating unit.

2. The power system and market operating unit shall formulate and publish detailed requirements for market participation information applicable to each type of electricity market participants.

3. Registration of meters and connection points

a) The power system and market operating unit shall establish and maintain registration information for meters and connection points within its scope of trading on the electricity market;

b) For each meter, the registration information shall clearly State the unit responsible for managing and operating such meter and the unit responsible for collecting metering data from such meter;

c) The power system and market operating unit shall coordinate with relevant market participants in confirming connection points and meters at the connection points of each market participant;

d) In case of any change in the ownership of or responsibility for the connection point, the relevant electricity market participants shall notify the power system and market operating unit.

4. The power system and market operating unit shall store and update registration information of all electricity market participants.

5. In case of any change to the registration information, the electricity market participants shall notify the power system and market operating unit about such changes.

6. The power system and market operating unit shall update and disclose market participation information of market participants, including changes; fully store historical information and data.

7. The power system and market operating unit shall report to the Electricity Regulatory Authority of Vietnam upon registration of participation in the electricity market or in case of any change related to the electricity market participants, including: the registration status and appraisal results of registration dossiers of new market participant, changes in registration information or the termination of participation in the electricity market of the electricity market participants.

Article 10. Termination of participation in the electricity market

1. Cases of termination of participation in the electricity market

a) A power plant shall terminate its participation in the electricity market in the following cases:

- At the request of the generating unit that owns the power plant in the following cases:

+ The power plant completely stopped running;

+ The power plant fails to maintain and is unable to restore installed capacity of more than 30 MW within 01 year.

- The power plant's electricity trading license in the field of electricity generation is revoked or expired.

b) An electricity wholesale buyer does not continue to buy electricity at the points of delivery within the scope of the electricity market or the electricity trading license in the fields of electricity wholesale and retail is revoked or expired.

2. In cases where its electricity trading license is revoked, the time of termination of participation in the electricity market for a generating unit or electricity wholesale buyer shall start when the electricity trading license is revoked under the decision of the competent agency. In other cases, in at least 30 days prior to the time when they wish to terminate their participation in the electricity market, the electricity market participants shall send written requests for termination of participation in the electricity market to the power system and market operating unit.

3. Within 10 days since the written request for termination of participation in the electricity market of a participant is received, the power system and market operating unit shall consider and decide the termination and notify the Electricity Regulatory Authority of Vietnam to supervise the implementation of the decision.

4. The power system and market operating unit shall keep records and announce on the electricity market website the termination of participation in the electricity market of the market participants.

Article 11. Handling cases of no registration for participation in the electricity market

1. For a power plant that has been granted an electricity trading license and must participate in the electricity market as prescribed in Article 4 of this Circular, but the generating unit that owns such power plant has not completed the registration procedures for participation in the electricity market for it, the power system and market operating unit shall not mobilize such power plant to generate electricity on the national network, except for the following cases:

a) An imbalance of supply and demand occurs in the power system;

b) The requirements on downstream water demand as prescribed by the inter-reservoir operation procedures, single-reservoir operation procedures are satisfied,  or at the request of a competent State agency (for hydropower plants);

c) Spill prevention (for hydropower plants).

2. For the cases mobilized by the power system and market operating unit in accordance with the provisions of Clause 1 of this Article, the generating units that own the power plants shall be paid under the power purchase agreements.

Chapter III
OPERATIONAL PRINCIPLES OF THE ELECTRICITY MARKET

Article 12. Trading date, trading period, dispatch period

1. A trading day starts from 00:00 to 24:00 of a calendar day.

2. A trading period is 60 minutes from the start of each hour of the trading day. When the infrastructure conditions are met, the Electricity Regulatory Authority considers reducing the trading period to 30 minutes.

3. Dispatch period is 60 minutes from the start of each hour of a trading day. When the infrastructure conditions are met, the Electricity Regulatory Authority considers reducing the dispatch period to 30 minutes in sync with reducing the trading period as prescribed in Clause 2 of this Article.

Article 13. Power purchase trading node

1. Power purchase trading nodes of each electricity market participant include:

a) For generating units, their trading nodes are the power plants’ points of delivery with the national power system;

b) For electricity wholesale buyers, their trading nodes are:

- Points of delivery between the power transmission network and the power distribution network of the electricity buyer;

- Points of delivery (if any) between power plants participating in the electricity market and the electricity distribution network of the electricity buyer;

- Points of delivery on the distribution network with other electricity buyers participating in the electricity market.

2. Generating units and electricity buyers must register with the power system and market operating unit of their trading nodes while registering for participation in the electricity market. In case of any change in existing trading nodes, or when new trading nodes are added, the generating unit or the electricity buyer shall notify the power system and market operating unit.

3. The power system and market operating unit shall coordinate with relevant units in establishing, managing and announcing a list of trading nodes corresponding to each electricity market participant.

4. The power system and market operating unit shall coordinate with relevant units in establishing and managing a list of meters for each trading node to determine the electricity output quantity traded on the market at that trading node in each trading period.

Article 14. Quotation limits

1. Quotations provided on the electricity market for the generating sets shall be limited from the price floor of quotation to the price ceiling of quotation.

2. For thermal power generating sets

a) The price ceiling of quotation for a thermal power generating set shall be determined annually, adjusted monthly and calculated based on the following factors:

- Heat dissipation rate of such generating set;

- Performance degradation coefficient in the operation time of such generating set;

- Fuel prices;

- Variable prices under the power purchase agreement.

b) The price floor of quotation of a thermal power generating set is 01 VND/kWh.

3. For hydropower generating sets

a) The price ceiling of quotation for a hydropower generating set is prescribed in Article 43 of this Circular;

b) The price floor of quotation of a hydropower generating set is VND 0/kWh.

Article 15. Market prices applicable to generating units

1. SMPs applicable to generating units shall:

a) Be calculated by the power system and market operating unit based on the method of non-conditional generation scheduling after the units come into operation;

b) Not exceed the price ceiling of the electricity market.

2. CANs applicable to generating units shall:

a) Be calculated by the power system and market operating unit during the elaboration of the year-ahead operation plan and not be changed in the applicable year;

b) Be calculated on the principle that the best newly-build power plants will fully recovers variable and fixed costs.

3. FMPs applicable to generating units shall be calculated by the sum of the following two components:

a) SMPs applicable to generating units;

b) CANs applicable to generating units.

Article 16. Determination of contractual output quantity

1. For power plants signing agreements with the Vietnam Electricity

a) The total annual contractual output quantity of a power plant shall be calculated by the power system and market operating unit based on the annual planned output quantity and the rate of output quantity settled at the contractual price as prescribed in Clause 4 of this Article. The annual planned output quantity shall be calculated by the power system and market operating unit during the elaboration of the year-ahead operation plan as prescribed in Article 17 of this Circular;

b) Total monthly contractual output quantity of a power plant shall be calculated by the power system and market operating unit during the elaboration of the year-ahead operation plan based on the allocation of annual contractual output quantity to each month as prescribed in Clause 2, Article 27 of this Circular;

c) Contractual output quantity for each trading period of a power plant be calculated by the power system and market operating unit during the elaboration of the month-ahead operation plan based on the allocation of monthly contractual output quantity to each trading period in a month as prescribed in Article 38 of this Circular.

2. For a power plant that signs an agreement with the Vietnam Electricity and is appointed to an electricity wholesale buyer, and a power plant that signs a agreement with an electricity wholesale buyer:

a) Total annual and monthly contractual output quantity of such power plant shall be calculated using the similar principles as specified in Clause 1 of this Article;

b) Contractual output quantity of each trading period shall be calculated by the power system and market operating unit in the month-ahead operation plan based on the allocation of monthly contractual output quantity to each trading period in a month in accordance with the forecasted load ratio of each trading period of the electricity buyer.

3. For new power plants to negotiate agreements with electricity wholesale buyers, when the prerequisites are met, the Electricity Regulatory Authority of Vietnam shall consider and propose the Ministry of Industry and Trade to allow the generating units and electricity buyers by themselves to negotiate and agree on the contractual output quantity.

4. The Electricity Regulatory Authority shall annually calculate and announce the rate of output quantity settled at the contractual prices for each type of technology following the below principles:

a) Ensuring harmonization of objectives:

- Encouraging effective competition in the electricity market;

- Stabilizing revenues of generating units;

- Stabilizing the average electricity generation price in accordance with the regulations on setting up the electricity retail tariff.

b) The rate of output quantity settled at the contractual prices provided for power plants by type of technology (hydropower, thermal power) shall not be higher than 95% and not lower than 60%.

Chapter IV
ELECTRICITY MARKET OPERATION PLANS

Section 1. YEAR-AHEAD OPERATION PLAN

Article 17. Year-ahead operation plan

1. The power system and market operating unit shall formulate the year-ahead electricity market operation plan, covering the following contents:

a) Selecting the best newly-built power plant;

b) Calculating the CANs;

c) Calculating the water value and optimal water level of hydropower reservoirs;

d) Calculating the quotation limits for thermal power generating sets;

dd) Determining options of price ceiling of the electricity market;

e) Calculating planned output quantity, annual contractual output quantity and allocating annual contractual output quantity to each month in the year for directly trading generating units.

2. The power system and market operating unit shall use the electricity market simulation model to calculate the contents specified in Clause 1 of this Article. Input parameters used in the electricity market simulation of thermal power generating sets are variable costs of such generating sets determined in Clause 3 of this Article, hydrological characteristics, and technical properties of hydropower plants, and constraints of secondary frequency control services.

3. The variable cost of a thermal power generating set shall be calculated as follows:

a) In cases where the heat dissipation rate can be determined under the power purchase agreement, the variable cost of the generating set shall be calculated as follows:

Where:

VC_b: The variable cost of the generating set (VND/kWh);

: Variable cost components adjusted by the main fuel (coal, gas) cost fluctuations of the power plant (VND/kWh);

: Variable cost components adjusted by the secondary fuel (oil) cost fluctuations of the power plant (VND/kWh);

: Variable cost components adjusted by other fluctuations of the power plant (VND/kWh).

- Variable cost components adjusted by the main fuel cost fluctuations of the power plant shall be calculated by the following formula:

Where:

: The variable cost components adjusted by the main fuel cost fluctuations of the power plant (VND/kWh);

: Average heat dissipation rate of the main fuel of the generating set specified in the power purchase agreement (kg/kWh or BTU/kWh or kcal/kWh).

: Main fuel price, including transportation cost of the main fuel (VND/kCal; VND/BTU or VND/kg).

- Variable cost components adjusted by the secondary fuel cost fluctuations of the power plant shall be calculated by the following formula:

Where:

: The variable cost components adjusted by the secondary fuel cost fluctuations of the power plant (VND/kWh);

: Average heat dissipation rate of secondary fuel as agreed in a power purchase agreement on the basis of equipment manufacturer's specifications (kg/kWh);

 : Secondary fuel price, including both transportation cost and other costs as prescribed (VND/kg).

- The average heat dissipation rate of (main or secondary) fuel shall be provided by the electricity buyers and adjusted by the performance degradation coefficient. In cases where the contractual heat dissipation rate is the lifetime average heat dissipation rate of the project, it will not be adjusted by the performance degradation coefficient. In cases where the power purchase agreement only specifies the dissipation characteristic curve at the load levels, the heat dissipation rate of the set shall be calculated at the load level corresponding to the multi-year average power output quantity generated by the power plant as specified in the power purchase agreement.

In cases where the thermal power generating set has no heat dissipation rate specified in the power purchase agreement, it shall be determined by the heat dissipation rate of the standard power plant in the same generation technology and installed capacity category produced by the same manufacturer. The power system and market operating unit shall calculate the fuel consumption rate or heat dissipation rate of the standard power plant;

- The performance degradation coefficient of the thermal power generating set shall be determined by the performance degradation coefficient specified in the power purchase agreement provided by the electricity buyer.

In cases where there is no data of the performance degradation coefficient given in the power purchase agreement, the performance degradation coefficient of the standard power plant in the same category with such power plant power calculated by the power system and market operating unit shall be applicable.

- Other variable cost components of the power plant  (VND/kWh) shall be calculated in accordance with the provisions of the power purchase agreement.

b) In cases where there is no heat dissipation rate specified in the signed power purchase agreement, the variable cost of the generating set shall be equal to the annual variable price in year N (including the transportation cost of main fuel) in the power purchase agreement with update of factors affecting the variable price of year N. For a power plant that does not signed a power purchase agreement, the annual variable price shall be calculated like the power plant that has signed a power purchase agreement using the same power generation technology and having equivalent installed capacity;

c) Components of prices and costs used in calculating variable price or variable cost in year N shall determine in an order of priority as follows:

- Fuel price applicable to year N announced or guided by a competent agency;

- Fuel price applicable to year N in the fuel purchase agreement;

- Fuel price based on the electricity bill payment records of the last 03 months prior to the planning time of year N with regard to factors affecting fuel price of year N. In cases where at the planning time of year N, there is no electricity bill payment record with the full fuel price of the latest month (the payment record does not include the full fuel price under the fuel purchase agreement), the monthly average fuel price calculated on the basis of invoices under the fuel purchase agreement can be used.

4. The power system and market operating unit shall submit the year-ahead electricity market operation plan (including calculation results, input figures and calculation notes) to the Vietnam Electricity for appraisal and propose the Electricity Regulatory Authority for approval of the plan before November 15 each year.

5. In cases where the price of coal and gas for power generation fluctuates significantly compared to that of the time when the year-ahead operation plan is approved, the power system and market operating unit shall update the data and recalculates the operation plans for the remaining months of the year and submit them to the Vietnam Electricity for appraisal and send a report to the Electricity Regulatory Authority.

Article 18. Classification of hydropower plants

1. Hydropower plants in the electricity market are specifically classified as follows:

a) Multi-purpose strategic hydropower plants;

b) Group of cascade hydropower plants;

c) Hydropower plants with water-controlling reservoirs storing water for more than 01 week;

d) Hydropower plants with water-controlling reservoirs storing water in between 02 weeks and 01 week;

dd) Hydropower plants with water-controlling reservoirs storing water for less than 02 days;

e) For hydropower plants with water-controlling reservoirs storing water for more than 01 week, if the electricity output quantity specified in the year-ahead on power supply and system operation plan issued annually by the Ministry of Industry and Trade is lower than 65% of the multi-year average electricity output quantity, the power plant's participation in the electricity market in that year shall be the same as for hydropower plants with water-controlling reservoirs storing water for less than 02 days as prescribed in this Circular.

For a hydropower plant using water from irrigation reservoirs for power generation with special requirements from a competent State agency, the Electricity Regulatory Authority shall send a report to the Ministry of Industry and Trade for consideration and decision of the form of participation in the electricity market of such power plant in that year.

2. Annually, the power system and market operating unit shall classify and update the list of hydropower plants specified in Clause 1 of this Article.

Article 19. Load forecasting for year-ahead operation planning

1. The power system and market operating unit shall forecast the load for elaborating the year-ahead operation plan by the methods specified in the the Regulation on electricity transmission system as prescribed by the Ministry of Industry and Trade. The load forecasting data for elaborating the year-ahead operation plan includes:

a) Total load demand of the national power system and for North, Central and South in the whole year and each month of the year;

b) Load charts of typical days of the North, Central, South and the entire national power system in months of the year;

c) Maximum and minimum load capacity of the national power system in each month.

2. The electricity wholesale buyer shall forecast the year-ahead load and send it to the power system and market operating unit in accordance with the Regulation on electricity transmission system as prescribed by the Ministry of Industry and Trade.

Article 20. Auxiliary services for year-ahead operation plan

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

a) Frequency control;

b) Rotation reserve;

c) Quick start reserve;

d) Voltage regulation;

dd) Black start;

e) Must-run generating sets to ensure power system security.

2. The power system and market operating unit shall determine the demands for auxiliary services in accordance with the Regulation on electricity transmission system as prescribed by the Ministry of Industry and Trade.

Article 21. Classification of year-ahead baseload, peaking and intermediate load generating sets

1. The power system and market operating unit shall classify the year-ahead baseload, peaking and intermediate load generating sets in accordance with the provisions of this Circular.

2. The power system and market operating unit shall use the market simulation model to determine the annual average load factor of the generating sets.

3. Based on the annual average load factor from the simulation results, the sets shall be classified into the following three groups:

a) Group of baseload generating sets includes generating sets with annual average load factor of 60% or more;

b) Group of intermediate load generating sets includes generating sets with average annual load factor of more than 25% and less than 60%;

c) Group of peaking generating sets includes generating sets with annual average load factor of 25% or less.

Article 22. Determination of price ceiling of quotation for thermal power generating sets

1. In cases where the heat dissipation rate can be determined

a) The price ceiling of quotation of a thermal power generating set shall be calculated by the following formula:

Where:

P_tr: The price ceiling of quotation of a thermal power generating set (VND/kWh);

K_DC: The price ceiling adjustment coefficient based on the classification of thermal power generating sets. For baseload generating sets K_DC = 0%; intermediate load generating sets K_DC = 5%; peaking generating sets K_DC = 20%;

P_NLC: Main fuel price (including the transportation cost of the main fuel) of the thermal power generating set (VND/kCal; VND/BTU or VND/kg);

P_NLP: Secondary fuel price of the thermal power generating set (VND/kCal; VND/BTU or VND/kg);

: Variable price adjusted by other fluctuations determined under the power purchase agreement (VND/kWh);

HR_C: The heat dissipation rate of the main fuel at the average load of the thermal power generating set (BTU/kWh; kCal/kWh or kg/kWh);

HR_P: The heat dissipation rate of the secondary fuel at the average load of the thermal power generating set (BTU/kWh; kCal/kWh or kg/kWh);

When calculating the price ceiling of quotation of a thermal power generating set, priority shall be given to the use of the heat dissipation rate measured in accordance with the results of the generating set's test-run conducted by a legally licensed experimental unit and agreed upon by related parties. In cases where no measured heat dissipation rate data are available, the heat dissipation rate specified in the power purchase agreement shall be used.

b) For thermal power plants using imported coal, the coal price (including the transportation cost of coal) in year N is the coal price determined under the power plant's fuel purchase agreement in year N. In cases where there was no coal purchase agreement in year N at the planning time of the year, the coal price in year N shall be determined as the coal price in the electricity bill payment record of the latest month prior to the planning time of year N. In cases where at the planning time of year N, there is no electricity bill payment record with the full fuel price of the latest month (the payment record does not include the full fuel price under the fuel purchase agreement), the monthly average fuel price calculated on the basis of invoices at the loading port under the fuel purchase agreement can be used.

c) The parameters of fuel price of the thermal power generating set shall be determined in accordance with the provisions in Clause 3, Article 17 of this Circular;

d) The main fuel price shall be provided by the electricity buyer to the power system and market operating unit before September 1 of year N-1.

2. In cases where there is no heat dissipation rate data given in the power purchase agreement or there is no appropriate standard power plant of the same category:

a) The price ceiling of quotation of a thermal power generating set shall be calculated by the following formula:

Where:

P_tr: The price ceiling of quotation of a thermal power generating set (VND/kWh);

K_DC: The price ceiling adjustment coefficient based on the classification of thermal power generating sets. For baseload generating sets K_DC = 0%; intermediate load generating sets K_DC = 5%; peaking generating sets K_DC = 20%;

: Variable price (including transportation cost of the main fuel) for year N under the power plant's contract of difference (CfD) (VND/kWh).

b) Variable price (including transportation cost of the main fuel) used to calculate the price ceiling of quotation is the expected variable price for year N provided by the electricity buyer to the power system and market operating unit.

3. The power system and market operating unit shall publish the input data and the results of calculation of the price ceiling of quotation for the thermal power generating sets.

Article 23. Determination of price ceiling of the electricity market applicable to generating units

1. The power system and market operating unit shall calculate the electricity market price ceiling options, with at least 03 options.

2. The electricity market ceiling price for year N shall be calculated following the below principles:

a) Not lower than variable cost of baseload and intermediate load thermal power generating sets that directly provide quotations on the electricity market;

b) Not higher than 115% of the highest price ceiling amongst quotations that the baseload and intermediate load thermal power generating sets are directly providing in the electricity market.

Article 24. Selection of the best newly-built power plant

1. The best newly-built power plant for year N is a power plant participating in the electricity market that satisfies the following criteria:

a) Generating power at full capacity in year N-1, except for the cases specified in Clause 3 of this Article;

b) Being a baseload power plant as classified in accordance with the criteria in Clause 3, Article 21 of this Circular;

c) Using coal-fired thermal technology or combined-cycle gas turbines;

d) Having the lowest average total power generation cost for 01 kWh.

2. The electricity buyer shall make a list of power plants meeting the criteria specified at Points a and c, Clause 1 of this Article and provide figures of power purchase agreements of these power plants, or the figures agreed upon with the generating unit, to the power system and market operating unit for determination as the best newly-built power plants. The figures to be provided include:

a) Variable price for year N;

b) Fixed price in year N as agreed in the power purchase agreement applicable to payment in year N;

c) Electricity output quantity agreed upon in order to calculate the contractual price.

3. In cases where there are less than 03 power plants meeting the criteria specified at Points a, b and c, Clause 1 of this Article, the power system and market operating unit shall supplement the list with the newly-built power plants which has been selected in year N-1 to ensure the number of plants not less than 03, and request the electricity buyers to update and re-provide the data specified in Clause 2 of this Article in order to calculate and select the best newly-built power plant for year N.

4. The power system and market operating unit shall calculate the average total electricity generation price for a power plant meeting the criteria specified at Points a, b and c, Clause 1 of this Article by the following formula:

P_TPTB: The average total electricity generation price of the power plant in year N (VND/kWh);

: Fixed price for year N under the power plant's contract of difference (CfD) (VND/kWh).

: Variable price for year N under the power plant's contract of difference (CfD) (VND/kWh).

: Power output quantity agreed upon in order to calculate the contractual price for year N of the power plant (kWh);

: Expected power output quantity in year N of the power plant calculated by the market simulation model using the method of conditional generation scheduling (kWh).

5. List of the best newly-built power plants shall be sorted from low to high average total generation price. The best newly-built power plant selected for year N is the power plant with the lowest average total power generation price calculated in accordance with the provisions of Clause 4 of this Article.

Article 25. Principles for calculating the CAN

1. Ensuring that the best newly-built power plant fully recovers its generation costs when participating in the electricity market.

2. The CAN must be proportional to the forecasted load of the national power system in a trading period.

Article 26. Order of CAN calculation

The power system and market operating unit shall calculate the CAN in the following order:

1. Calculating the best newly-built power plant's annual shortage cost

a) Calculating the best newly-built power plant's expected revenue at the SMP in year N by the following formula:

Where:

R_TTĐ: The best newly-built power plant's expected revenue at the SMP in year N (VND);

i: Trading period i in year N;

I: Total trading periods in year N;

SMPi: Expected SMP of trading period i in year N calculated by the electricity market simulation model using the method of non-conditional generation scheduling (VND/kWh);

: Expected output quantity at the best newly-built power plant’s metering point in trading period i of year N calculated by the electricity market simulation model using the method of conditional generation scheduling (kWh).

b) Calculating the total annual electricity generation cost of the best newly-built power plant by the following formula:

Where:

TC_BNE: The total annual electricity generation cost of the best newly-built power plant in year N (VND);

P_BNE: Average total electricity generation price per 1 kWh of the best newly-built power plant calculated in accordance with the provisions of Clause 4, Article 24 of this Circular (VND/kWh);

: Expected output quantity at the best newly-built power plant’s metering point in trading period i of year N calculated by the electricity market simulation model using the method of conditional generation scheduling (kWh).

i: Trading period i in year N;

I: Total trading periods in year N.

c) The best newly-built power plant's annual shortage cost shall be calculated by the following formula:

AS = TC_BNE - R_TTD

Where:

AS: The best newly-built power plant's annual shortage cost in year N (VND);

TC_BNE: The total annual electricity generation cost of the best newly-built power plant in year N calculated in accordance with Point b of this Article (VND);

RTTD: The best newly-built power plant's expected revenue at the SMP in year N calculated in accordance with Point a of this Article (VND).

d) In case the calculation results of the annual shortage cost is lower the lowest option of price ceiling of the electricity market, the power system and market operating unit shall propose the Electricity Regulatory Authority to select the next best newly-built power plant in the list of new power plants as specified in Article 24 of this Circular and recalculate or review the list of power plants participating in the electricity market to determine the appropriate price ceiling of the electricity market.

2. Calculating the monthly shortage cost

The best newly-built power plant's monthly shortage cost shall be determined by dividing the annual shortage cost with the months of year N using the following formula:

Where:

M: Month M of year N;

MS: The best newly-built power plant's monthly shortage cost in month t (VND);

AS: The best newly-built power plant's annual shortage cost in year N (VND);

: Peak load capacity in month M (MW).

3. Calculating the CAN for each trading period

a) Calculating the annual average available capacity of the best newly-built power plant by the following formula:

Where:

: The annual average available capacity of the best newly-built power plant in year N (kW);

I: Total trading periods in year N;

i: The trading period in which the best newly-built power plant is expected to be mobilized;

: Expected mobilized capacity of the best newly-built power plant in trading period i of year N calculated with the electricity market simulation model by method conditional generation scheduling which is converted at metering points (kW).

b) Calculating the CAN for each trading period in the year ahead by the following formula:

Where:

I: Total trading periods in month M;

i: Trading period i in month M;

CANi: the CAN of trading period i (VND/kWh);

: The annual average available capacity of the best newly-built power plant in year N (kW);

MS^M: The best newly-built power plant's monthly shortage cost in month M (VND);

 : The forecasted system load of trading period i based on the forecasted load chart of a typical day in month M (MW);

∆T: Duration of 01 trading period (minute).

Article 27. Calculating the annual and monthly contractual output quantity for a power plant that signs a power purchase agreement with the Vietnam Electricity

1. Calculating the annually contractual output quantity

Aggregate annually contractual output quantity of a power plant shall be calculated following the below steps:

a) Formulating the year-ahead operation plan of the power system using the method of conditional generation scheduling. Input parameters used to formulate the year-ahead operation plan of the power system are variable prices of thermal power generating plants, hydrological characteristics and technical specifications of the power plants;

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

Where:

AGO: Aggregate planned annual output quantity of the power plant in year N (kWh);

EGO: Expected output quantity of the power plant in year N calculated in accordance with the year-ahead operation plan of the power system which is converted at metering points (kWh);

GO: Average multi-year generation output quantity of the power plant specified in the power purchase agreement (kWh);

a, b: Variable coefficient of annual generation output announced by the Ministry of Industry and Trade.

c) Calculating the total annual contractual output quantity of the power plant by the following formula:

Q_c = α x AGO

Where:

Qc: Total annual contractual output quantity of year N (kWh);

AGO: Planned annual output quantity of the power plant in year N (kWh);

α: Rate of output quantity settled at the contractual prices (%) in accordance with the provisions of Clause 4, Article 16 of this Circular.

2. Calculating monthly contractual output quantity

Monthly contractual output quantity of thermal power plants and hydropower plants with water-controlling reservoirs storing water for more than 01 week shall be calculated during the formulation of the year-ahead operation plan as follows:

a) Using the market simulation model specified in Clause 2, Article 17 of this Circular with the method of conditional generation scheduling to calculate the power plant's monthly expected output quantity;

b) Calculating the monthly contractual output quantity by the following formula:

Where:

: Monthly contractual output quantity of the power plant in month M (kWh);

Qc: Total annual contractual output quantity of the power plant (kWh);

: Expected output quantity in month M of the power plant in accordance with the year-ahead operation plan approved by the Ministry of Industry and Trade (kWh).

Article 28. Calculating the annual and monthly contractual output quantity for a power plant that sign a power purchase agreement with an electricity buyer, or a power plant that signs a power purchase agreement with the Vietnam Electricity and is appointed to an electricity wholesale buyer

1. Annual and monthly contractual output quantity of such power plant shall be calculated using the methods specified in Clauses 1 and 2, Article 27 of this Circular.

2. Expected monthly contractual output quantity of a power plant that sign a power purchase agreement with an electricity buyer, or a power plant that signs a power purchase agreement with the Vietnam Electricity and is appointed to an electricity wholesale buyer, shall be allocated to such electricity wholesale buyer in the proportion with the latter’s forecasted load calculated by the following formula:

Where:

: Expected contractual output quantity in month M of the power plant to the electricity wholesale buyer I (kWh);

: Total contractual output quantity in month M of the power plant (kWh);

: Expected upstream-delivered power output quantity in month M of the electricity wholesale buyer I (kWh);

L: Total number of electricity wholesale buyers.

3. Before November 10 every year, the electricity wholesale buyer shall update and provide its year-ahead forecasted load data to the power system and market operating unit to calculate and allocate the contractual output quantity to the electricity wholesale buyer.

Article 29. Responsibility for calculating and signing annual and monthly contractual output quantity

1. A power system and market operating unit shall:

a) Calculate the annual and monthly contractual output quantity of the power plant in accordance with the provisions of Articles 27 and 28 of this Circular;

b) Publish on the electricity market website the input data for the calculation and the results of calculating annual and monthly contractual output quantity for electricity buyers and directly trading generating units for examination before November 15 every year.

2. For power plants that sign power purchase agreements with the Vietnam Electricity, the generating units that own the power plants and the electricity buyers shall:

a) Inspect and coordinate with the power system and market operating unit to handle deviations in calculation results of annual and monthly contractual out quantity before November 25 every year;

b) Confirm in writing the annual and monthly contractual output quantity of the power plants agreed upon by the generating units and the Vietnam Electricity.

3. For a power plant that signs a power purchase agreement with an electricity buyer

a) Inspect and coordinate with the power system and market operating unit to handle deviations in calculation results of annual and monthly contractual out quantity before November 25 every year;

b) The generating unit and the electricity buyer shall confirm in writing the total annual and monthly contractual output quantity of the power plant.

The total monthly contractual output quantity of the power plant confirmed amongst the parties shall be allocated to the electricity wholesale buyer in accordance with Article 40 of this Circular.

Article 30. Announcement of the year-ahead operation plan of the electricity market

1. After the year-ahead operation plan of the electricity market is approved in accordance with the provisions of Article 17 of this Circular, the power system and market operating unit shall announce on the electricity market website the inputs and results of formulating the year-ahead operation plan of the electricity market to electricity market participants.

2. Information on the year-ahead operation plan of the electricity market to be announced includes:

a) Results of calculation in the year-ahead operation plan, including:

- Expected SMP for each trading period applicable to generating units and electricity buyers;

- Results of best newly-built power plant selection;

- CAN for each trading period;

- Price ceiling of the market electricity;

- Classification of thermal power generating sets;

- Annual contractual output quantity and contractual output quantity allocated to each month of the power plants;

- The rate of electricity purchased at the spot electricity market price in each month of the year ahead applicable to electricity wholesale buyer purchasing electricity from appointed power plants, which is calculated in accordance with Clause 2, Article 91 of this Circular.

b) Input parameters for the calculation of the annual market operation plan, including:

- Forecasted load of each region, including the North, Central, and South, and for the entire national power system in each trading period;

- Hydrological data of hydropower reservoirs used in electricity market simulation;

- Progress of putting newly-built power plants into operation;

- Technical specifications of transmission network;

- Planned electricity import and export chart;

- Annual maintenance and repairing schedule of power plants, large transmission networks and gas supplies;

- Forecasted load of electricity wholesale buyers in each trading period.

3. Information on the year-ahead operation plan of the electricity market to be announced only to the directly trading generating units that owns the power plants directly related to such information, including:

a) Expected generation output quantity in the power plant's electricity market simulation for each trading period;

b) Water value of the hydropower plants;

c) Variable price data of the thermal power plants used in the simulation.

Section 2. MONTH-AHEAD OPERATION PLAN

Article 31. Load forecasting for month-ahead operation planning

1. The power system and market operating unit shall forecast the load for elaborating the month-ahead operation plan by the methods specified in the Regulation on electricity transmission system as prescribed by the Ministry of Industry and Trade. The load forecasting data for elaborating the year-ahead operation plan include:

a) Total load demand of the national power system and for North, Central and South in the whole month and each week of the month;

b) Load charts of typical days of the North, Central, South and the entire national power system in weeks of the month;

2. Before the 20th of each month, the electricity wholesale buyer shall forecast the load for each trading period of the month ahead and send a report to the power system and market operating unit in order to formulate the month-ahead operation plan.

Article 32. Calculation of water value

The power system and market operating unit shall calculate the water value for the weeks in the month ahead. The results of calculating the water value used to elaborate the month-ahead operating plan include:

1. Expected output quantity of multi-purpose strategic hydropower plants.

2. Water value of hydropower plants in a group of cascade hydropower plants.

3. Water value of hydropower plants with water-controlling reservoirs storing water for more than 01 week.

4. Optimal water level of each week in a month for hydropower plants water-controlling reservoirs storing water for more than 01 week.

Article 33. Classification of month-ahead baseload, peaking and intermediate load generating sets

1. The power system and market operating unit shall classify the month-ahead baseload, peaking and intermediate load generating sets.

2. The power system and market operating unit shall use the market simulation model to determine the monthly average load factor of the generating sets in the month ahead.

3. Based on the monthly average load factor from the simulation results, the sets shall be classified into the following three groups:

a) Group of baseload generating sets includes generating sets with annual average load factor of 70% or more;

b) Group of intermediate load generating sets includes generating sets with average annual load factor of more than 25% and less than 70%;

c) Group of peaking generating sets includes generating sets with annual average load factor of 25% or less.

Article 34. Adjustment of price ceiling of quotation for thermal power generating sets

1. The power system and market operating unit shall calculate and adjust the price ceiling of quotation for thermal power generating sets in the month ahead by the methods specified in Article 22 of this Circular, including update of the factors affecting variable prices of month M determined by the method agreed in the power purchase agreement and based on the following:

a) Month-ahead fuel price (including the following components: Price of main fuel, secondary fuel, limestone, and transportation cost of the main fuel) which shall be determined in an order of priority as follows:

- Fuel price applicable in the month ahead announced or guided by a competent agency;

- Fuel price applicable in the month ahead in the fuel purchase agreement;

- Fuel price based on the electricity bill payment records of the most recent month prior to the planning time of the month ahead. In cases where at the planning time of the month ahead, there is no electricity bill payment record with the full fuel price of the most recent month (the payment record does not include the full fuel price under the fuel purchase agreement), the monthly average fuel price calculated on the basis of invoices under the fuel purchase agreement can be used.

- For thermal power plants using imported coal, the month-ahead fuel price is the fuel price based on the electricity bill payment records of the most recent month prior to the planning time of the month ahead. In cases where at the planning time of the month ahead, there is no electricity bill payment record with the full fuel price of the most recent month (the payment record does not include the full fuel price under the fuel purchase agreement), the monthly average fuel price calculated on the basis of invoices at the loading port under the fuel purchase agreement can be used.

b) Month-ahead variable price (including transportation cost of the main fuel) of thermal power plants. The electricity buyer shall update changes in variable prices of thermal power plants and provide such information to the power system and market operating unit;

c) Results of classification of thermal power generating sets for the month ahead as prescribed in Article 33 of this Circular.

2. The power system and market operating unit shall publish the inputs and results of calculating the month-ahead quotation price ceiling of the thermal power generating sets.

Article 35. Frequency control reserve service in month-ahead operation plan

1. The power system and market operating unit shall determine the demands for frequency control reserve service of the power system in the month ahead in accordance with the Regulation on electricity transmission system as prescribed by the Ministry of Industry and Trade.

2. The power system and market operating unit shall formulate and publicize the list of generating sets that are eligible to provide frequency control reserve service in accordance with the Regulation on electricity transmission system as prescribed by the Ministry of Industry and Trade.

Article 36. Calculating monthly contractual output quantity for power plants newly participating the electricity market in the middle of the operational year

1. Before 20th day of month M, the generating unit that plans to put its power plant into commercial operation in month M ​​+ 1 shall provide economic and technical information of the power plant to the power system and market operating unit to formulate the operation plans for the month ahead and the following months in the year N

2. The power system and market operating unit shall calculate the monthly contractual output quantity for the power plant (from the month when the power plant participates in the power market to the end of the month N) in the month-ahead operation plan of the electricity market.

3. Monthly contractual output quantity of such power plant shall be calculated by the following formula:

Where:

: Total contractual output quantity of the power plant in month M (kWh);

: Planned contractual output quantity of the power plant in month M t in the month-ahead operation plan of the electricity market (kWh);

α: Rate of output quantity settled at the contractual prices applicable to year N in accordance with the provisions of Clause 4, Article 16 of this Circular.

Article 37. Adjustment of monthly contractual output quantity of a power plant that signs a power purchase agreement with the Vietnam Electricity

1. Monthly contractual output quantity of a power plant shall be adjusted in cases where the power plant's maintenance and repairing schedule in month M is changed against the annual operation plan:

a) At the request of the power system and market operating unit to ensure electricity system security, which is not caused by the power plant;

b) At the request of a competent State agency and agreed upon by the power system and market operating unit based on the actual operational conditions of the system.

2. The power system and market operating unit shall adjust the monthly contractual output quantity in the cases specified in Clause 1 of this Article following the below principles:

a) Adjusting among the months the portions of monthly contractual output quantity corresponding to repairing periods in the schedule which has been changed, ensuring that the adjusted total annual contractual output quantity remains unchanged according to the instructions in the Procedures for calculating payments in the electricity market issued by the Electricity Regulatory Authority;

b) In cases where the plant has its maintenance and repairing schedule changed in the last month of the year, the contractual output quantity shall not be adjusted corresponding to the repairing period of this month in the following year.

3. Monthly contractual output quantity of a hydropower plant with a water-controlling reservoir storing water for more than 01 week shall be adjusted in cases where the actual hydrology of the hydropower plant differs greatly from the hydrological forecast used in the formulation of the operation plan following the below principles:

a) Adjusting in cases where the average water flow, generation output quantity of the power plant from January 1 of the month N to the 20^th day of each month, and the expected upstream water level at the beginning of the month ahead are greatly different from the average water flow, accumulated contractual output and water level of the reservoirs at the beginning of the month which are calculated in the annual plan;

b) Only increasing the contractual output quantity of the hydropower plant in cases where the total monthly contractual output quantity of the power plants participating in the electricity market under the annual operation plan is lower than 95% of the total planned generation output quantity (converted at points of delivery) of the power plant under the monthly operation plan.

4. The generating unit and the electricity buyer shall coordinate with the power system and market operating unit in conforming, and propose the Electricity Regulatory Authority to consider and adjust, the output quantity, in the following month for the cases specified in Clause 3 of this Article.

5. In cases where the available monthly output quantity of the power plant in month M + 1 does not guarantee the monthly contractual output quantity, the latter shall be adjusted to equal the available output of that month while the deficient output quantity shall be allocated to each of the last months in the year N based on the ratio of monthly contractual output quantity approved by the Electricity Regulatory Authority of Vietnam and not exceed the available output quantity.

Article 38. Determination of contractual output quantity for each trading period of a power plant that signs a power purchase agreement with the Vietnam Electricity

The power system and market operating unit shall determine the contractual output quantity of each trading period for a power plant that directly signs a agreement with the Vietnam Electricity in the month ahead following the below steps:

1. Using a market simulation model to determine the power plant's expected output quantity of each trading period in a month by the method of conditional generation scheduling.

2. Calculating the contractual output quantity of each trading period by the following formula:

Where:

i: Trading period i of the month;

I: Total trading periods of the month;

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

: Expected generation output quantity of the power plant in trading period i calculated with the market simulation model by the method of conditional generation scheduling (kWh);

: Monthly contractual output quantity of the power plant calculated in accordance with Articles 27, 36 and 37 of this Circular (kWh).

3. In cases where a power plant's contractual output quantity in trading period i is greater than the power plant's maximum generation output quantity, the contractual output quantity in that trading period shall be adjusted to equal the maximum generation output quantity of the power plant. The plant's maximum output in a trading period corresponds to the output quantity in one trading period based on the capacity announced in the month-ahead default quotation which is sent by the generating unit to the power system and market operating unit as prescribed in Article 51 of this Circular.

4. In cases where the contractual output quantity of a thermal power plant in a trading period is greater than 0 MWh and smaller than the output corresponding to the power plant's lowest stable generation capacity in the trading period, the contractual output quantity in that trading period shall be adjusted to equal the output quantity corresponding to the lowest stable generation capacity of such power plant. The lowest stable generation capacity of a power plant shall be based on the lowest stable generation capacity of 01 generating set of the power plant scheduled to be mobilized in the electricity market simulation model of that trading period.

In cases where the contractual output quantity of a hydropower plant is smaller than the output quantity corresponding to its lowest stable generation capacity, it may be adjusted to equal 0 MW or the output quantity corresponding to the lowest stable generation capacity.

5. The power system and market operating unit shall allocate the total output difference after the adjustment of contractual output quantity prescribed in Clauses 3 and 4 of this Article into other trading periods in the month on principle of keeping the monthly contractual output quantity unchanged.

6. The power system and market operating unit shall announce on the electricity market website the inputs and results of preliminary calculation of the contractual output quantity in the month to the electricity buyers and directly trading generating units in at least 05 days prior to the last day of month M. The electricity buyers and generating units shall coordinate with the power system and market operating unit to complete the inspection of deviations in the results of calculation of the contractual output quantity for each trading period in the month ahead in at least 03 days prior to the last day of month M. The power system and market operating unit shall send the results of calculation of the contractual output quantity for each official trading period in the month to the electricity buyers and directly trading generating units in at least 03 days prior to the last day of month M.

7. The electricity buyers and directly trading generating units shall sign and confirm the monthly contractual output quantity adjusted in accordance with Article 39 of this Circular and the contractual output quantity for each trading period as stated in the calculation results from the power system and market operating unit.

Article 39. Adjustment of the total contractual output quantity for each trading period of a power plant that signs a power purchase agreement with the Vietnam Electricity

1. The cases where the contractual output quantity of power plants shall be adjusted

a) In cases where a boiler of a multi-boiler coal-fired thermal power plant, or a generating unit of the power plant breaks down;

b) In cases where the boiler of a multi-boiler coal-fired thermal power plant or a generating unit of the power plant needs its repairing period prolonged against the approved plan and is included in the contractual output quantity for each trading period;

c) In cases where there is information on the lack of gas fuel sources as prescribed in Clause 7, Article 54 of this Circular.

2. In cases where there are enough grounds to confirm the cases specified at Point a, Clause 1 of this Article, the contractual output quantity for each trading period shall be adjusted following the below principles:

a) If the breakdown lasts in less than or equal to 72 hours: No adjustment to the contractual output quantity of such power plant;

b) If the breakdown lasts in more than 72 hours

- From the time when the breakdown occurs to the trading period at the end of the 72-hour period: Keep the contractual output quantity allocated to the power plant;

- From the first trading period after the end of the 72-hour period until the unit is repaired and becomes available:

+ In cases where the actual output quantity delivered at the plant's points of delivery is smaller than the plant’s contractual output quantity in this period: Adjust the contractual output quantity for each trading period to equal the actual output delivered at the points of delivery of the power plant;

+ In cases where the actual generation output generated quantity at the power plant's points of delivery is greater than or equal to the power plant's contractual output quantity in such period: No adjustment to the power plant contractual output quantity.

3. In cases where there are enough grounds to confirm the cases specified at Point b, Clause 1 of this Article, the contractual output quantity for each trading period shall be adjusted following the below principles:

In prolonged repairing period, if there is a trading period in which the actual output delivered at the power plant's points of delivery is less than the power plant's contractual output quantity, the contractual output quantity in such trading period shall be adjusted to equal the power plant's actual generation output quantity at the power plant's points of delivery.

4. In the cases specified at Point c, Clause 1 of this Article, the contractual output quantity of a gas turbine plant in the trading periods shall be adjusted to equal the actual generation output quantity at the power plant's points of delivery.

5. A directly trading generating unit shall coordinate with the power system and market operating unit in confirming the events specified in Clause 1 of this Article and send reports to its electricity buyers and directly trading generating units, serving as a basis for adjusting the contractual output quantity for each trading period of the power plant. In case of confirming a breakdown of a boiler of a multi-boiler coal-fired thermal power plant:

a) In cases where there is sufficient data from the distributed control system (DCS) or other equivalent control systems about the event: Confirm such event based on such data;

b) In cases where there is no data from the distributed control system (DCS) or other equivalent control systems: Use information and data from other data sources for each specific case as guided in the Procedures for calculating payments in the electricity market issued by the Electricity Regulatory Authority to confirm the event.

6. The electricity buyers and directly trading generating units shall sign the confirmation of the adjusted monthly contractual output quantity of the power plants as prescribed in Clauses 1, 2 and 3 of this Article.

Article 40. Determination of contractual output quantity for each trading period of power plants entering into power purchase agreements with power wholesale buyers or of power plants entering into agreements with the Vietnam Electricity for power purchase and distribution to power wholesale buyers

1. With regard to a power plant entering into a power purchase agreement with a power wholesale buyer:

a) Determination of contractual output quantity for each trading period of the power plant is specified as follows:

- Adjusting the power plant's monthly contractual output quantity in accordance with Article 37 of this Circular;

- Determining and adjusting the power plant's  contractual output quantity  for each trading period in accordance with Articles 38 and 39 of this Circular.

b) Contractual output quantity for each trading period of the power wholesale buyer and the power plant entering into an agreement with such power wholesale buyer

The power system and market operating unit shall assume the responsibility for calculating by the following formula:

Where:

i: Trading period i within month;

: Contractual output quantity of the electricity wholesale buyer l with the power plant g in trading period i (kWh);

: Contractual output quantity of the power plant g in trading period i determined and adjusted in accordance with Point a of this Clause (kWh);

: Estimated upstream-delivered electricity output quantity of the electricity wholesale buyer l in trading period i (kWh);

L: Total number of power wholesale buyers.

2. With regard to a power plant entering into an agreement with the Vietnam Electricity and for power purchase and distribution to a power wholesale buyer

a) Determination of contractual output quantity for each trading period of the power plant the Vietnam Electricity is specified as follows:

- Adjusting the power plant's monthly contractual output quantity in accordance with Article 37 of this Circular;

- Determining and adjusting the power plant's  contractual output quantity  for each trading period in accordance with Articles 38 and 39 of this Circular.

b) Contractual output quantity for each trading period distributed from the Vietnam Electricity to the power wholesale buyer

The power system and market operating unit shall assume the responsibility for calculating according to the following order:

- Determination of monthly contractual output quantity distributed from the Vietnam Electricity to the power wholesale buyer by the following formula:

Where:

L: Total number of power wholesale buyers;

Qc (l, M): Contractual output quantity of month M distributed from the Vietnam Electricity to the power wholesale buyer l (kWh);

: Monthly contractual output quantity of the power plant g with the Vietnam Electricity that is determined in the annual power market operation plan as prescribed in Article 27 of this Circular (kWh);

Qptdk (l, M): Upstream forecasted output quantity of the electricity wholesale buyer l in month M (kWh).

- Contractual output quantity for each trading period distributed from the Vietnam Electricity to the power wholesale buyer shall be determined by the following formula:

Where:

i: Trading period i within month;

I: Total number of trading periods within month;

Qc (l,i): Contractual output quantity in trading period i distributed from the Vietnam Electricity to the power wholesale buyer l (kWh);

Qc (l, M): Contractual output quantity of month M distributed from the Vietnam Electricity to the power wholesale buyer l (kWh);

Qptdk (l, i): Upstream forecasted output quantity of the electricity wholesale buyer l in trading period i (kWh).

Section 3. WEEK-AHEAD OPERATION PLAN

Article 41. Week-ahead water value

1. The power system and market operating unit shall assume the responsibility for updating data of forecasted load or hydrology and relevant data to calculate the week-ahead water value.

2. The electricity system and market operating unit shall assume the responsibility for updating information, recalculating the week-ahead water value and announcing the following results:

a) Estimated electricity market price for each week-ahead trading period to be applied to generating units and buyers;

b) Estimated water value and output quantity for each trading period of  multi-purpose strategic hydropower plants;

c) Water value of groups of cascade hydropower plants or hydropower plants with reservoirs storing water for more than 01 week;

d) Estimated output quantity for each trading period of hydropower plants with reservoirs storing water for less than 02 days;

dd) Weekly water limit  level of hydropower reservoirs with water-regulating capacity of more than  01 week 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.

Article 42. Determination of contractual output quantity of hydropower plants with reservoirs storing water for a period of between 02 days and 01 week that enter into power purchase agreements with the Vietnam Electricity

1. The electricity system and market operating unit shall assume the responsibility for calculating and announcing the weekly contractual output quantity and distributing the weekly contractual output quantity for each weekly trading period of the hydropower plant with its reservoir storing water for a period of between 02 days and 01 week.

2. The electricity system and market operating unit shall assume the responsibility for sending the weekly contractual output quantity of the hydropower plant with its reservoir storing water for a period of between 02 days and 01 week to the electricity buyer and generating unit. The electricity buyer and generating unit shall assume the responsibility for signing and certifying the plant's weekly contract output quantity as a basis for electricity bill payment.

Article 43. Price ceilings of quotations of hydropower plants

1. 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) The price ceiling of quotation shall be equal to the greatest value of:

- The water value of the hydropower plant;

- The average price of price ceilings of quotations of thermal power generating sets that participate in the electricity market 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 hydropower plants and the schedule of announcement of price ceilings of thermal power plants in the next month.

2. The price ceiling of quotation of the hydropower plant with its reservoir storing water for a period of between 02 days and 01 week shall be determined as follows:

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

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

- The 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 cases where the reservoir of a hydropower plant violates the weekly water level limit, the price ceiling of quotation of this hydropower plant applied in the next week shall be equal to the variable cost of the most expensive DO-engine thermal power set within the power system. 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 cases 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  equal to the variable cost of the most expensive DO-engine thermal power set within the power system. In cases 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.

3. On 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 and Clause 2 of this Article;

b) Announcing the results of calculation of the price ceiling of quotation of each generating set of the hydropower plant with its reservoir storing water from 02 days to 01 week 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.

4. A hydropower plant participating 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.

Article 44. Frequency control reserve services in the week-ahead operation plan

1. The electricity system and market operating unit shall assume the responsibility for determining the demand for frequency control reserve services of the power system in the next week in accordance with the Regulation on electricity transmission systems promulgated by the Ministry of Industry and Trade.

2. The electricity system and market operating unit shall assume the responsibility for selecting, preparing and announcing a list of generating sets that are expected to provide frequency control reserve services for the next week. The selected generating set shall assume the responsibility for providing frequency regulation services at the request of the electricity system and market operating unit.

3. The electricity system and market operating unit shall assume the responsibility for making the week-ahead operation plan, ensuring frequency control reserve service constraints.

Chapter V

ELECTRICITY MARKET OPERATION

Section 1. DAY-AHEAD ELECTRICITY MARKET OPERATION

Article 45. Information for day-ahead electricity market operation

Before 10:00 of day D-1, the electricity system and market operating unit shall assume the responsibility for determining, calculating and publishing the following information:

1. Daily load forecasting charts on day D of the entire national electricity system and the North, Central and South electricity systems.

2. Estimated mobilized capacity in each trading period for the next day of the power plants as specified in Clause 3 Article 4 of this Circular and the power plants that are directly providing quotations in the electricity market.

3. Total estimated gas output quantity for the next day of the gas-fired thermal power plants using the same gas source.

4. Estimated mobilized capacity of estimated export and import power sources in each trading period of day D.

5. Results of short-term system security assessment of day D in accordance with the Regulation on electricity transmission systems promulgated by the Ministry of Industry and Trade.

6. Estimated mobilized capacity of the hydropower plants with reservoirs storing water for less than 02 days in each trading period of the next day.

7. Demand for frequency control reserve service of the electricity system in each trading period of the next day.

Article 46. Quotation

1. The quotation shall comply with the following principles:

a) Including 05 pairs of quoted price (VND/kWh) and capacity (MW) for the generating set in each trading period of day D. When meeting necessary conditions, the Electricity Regulatory Authority shall consider to increase the number of pairs of quoted price and capacity up to 10 pairs, simultaneously reducing the trading period to 30 minutes as prescribed in Clause 2 Article 12 of this Circular;

b) Capacity in the quotation is the capacity at the generator terminals;

c) Quoted capacity of the following quoted range shall not be lower than the capacity of the preceding quoted range. The minimum quoted step is 03 MW;

d) There is information on technical specifications of generating sets, including:

- Announced capacity of the generating sets for day D;

- The lowest stable generating capacity of the generating sets;

- The maximum capacity increase or decrease speed of the generating sets;

- Technical constraints when operating the generating sets at the same time.

dd) The announced capacity of the generating set in quotation of day D shall not be lower than the announced capacity  of day D-2 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, except for unexpected shutdowns (the unexpected shutdowns for repairing machines must be approved) or force majeure technical incidents. The plants shall assume the responsibility for updating the announced capacity when reducing the available capacity;

e) Under normal conditions, the first quoted capacity range in the quotation of thermal power generating sets shall be equal to the lowest stable generating capacity of that thermal power sets. The last quoted capacity range shall be equal to the announced capacity. With regard to thermal power plants, during the starting and stopping process, the quotation for the next trading period may be updated with a capacity lower than the lowest stable generating capacity;

g) Hydropower plants may offer the first capacity ranges in each trading period equal to 0 (zero) MW. With regard to hydropower plants capable of regulating more than 02 days, the last quoted capacity range shall be equal to the announced capacity;

h) The unit of quoted price is VND/kWh, with the smallest decimal number equal to 0.1;

i) Quoted price ranges from floor price to ceiling price of the generating units and does not decrease according to the increasing of quoted capacity.

2. Quotation in special cases

a) The quotation of a plant with its reservoir storing water for less than 02 days is specified as follows:

- The quoted price is equal to 0 VND/kWh for the quoted capacity ranges;

- Quoted capacity is equal to the estimated generating capacity of the generating set in the trading period. Generating units owning a hydropower plant with its reservoir storing water for less than 02 day may submit a quotation to increase capacity according to the actual hydrological situation of that plant;

- A hydropower plant with its reservoir storing water for less than 02 day may submit a quotation for the next trading period to adjust capacity according to the actual hydrological situation of that plant.

b) The quotation of a plant that violates the water limit for 02 consecutive weeks is specified as follows:

- Quoting at the price floor for the output quantity corresponding to the demand for downstream water supply at the request of the competent agency;

- Quoting at the price ceiling for the remaining output quantity;

- The ceiling price applied to the hydropower plant that violates the water limit for 02 weeks shall be equal to the price of the most expensive DO-engine thermal power generating set in the electricity system.

c) The quotation of a thermal power generating set during its starting and stopping process:

- The quoted capacity may be lower than the lowest stable generating capacity;

- The quoted price shall be equal to the price floor of the thermal power generating set's quotation for the entire capacity range from 0 MW to the lowest stable generating capacity.

d) With regard to hydropower generating sets, it must ensure the downstream water supply at the request of the competent agency and be taken into account when determining the contractual output quantity for the trading period in the month-ahead or week-ahead operation plan: The generating unit shall assume the responsibility for quoting at the quotation price floor for the output quantity corresponding to the demand for downstream water supply that is considered upon calculating the contractual output quantity in the month-ahead or week-ahead operation plan.

Article 47. Adjustment of quotation

1. Cases eligible for adjustment of quotation

A bidding unit may adjust its quotation in the following cases:

a) In cases where the thermal power generating set is in the process of start-up, grid connection or shutdown, the bidding unit may make adjustment to increase or reduce the capacity and resubmit the quotation for that thermal power generating set;

b) In cases where the thermal power generating set is connected to the grid at the request of the electricity system and market operating unit, the bidding unit may make adjustment to increase the announced capacity and resubmit the quotation for that thermal power generating set;

c) In cases where the generating set faces any breakdown that stops or reduces the usable capacity, or is 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 quotation for that generating set;

d) With regard to hydropower plants with reservoirs storing water for less than 02 days, the bidding unit may resubmit the  quotation adjusted in accordance with the actual operation situation (in cases of the high water level resulting in lake discharge or the reservoir water level falling to the dead water level);

dd) With regard to hydropower plants with reservoirs storing water for 02 days or more, the bidding unit may make adjustment for the quotation in the following cases:

- The demand for downstream water supply during day D of the hydropower plants as specified in the  operation process of reservoirs (or inter-reservoirs) or documents issued by a competent state agency is determined at the time after 11:30 of day D-1 (the deadline for the bid of the day D is complied with Clause 1, Article 49 of this Circular);

- The lake water level of the hydropower plants violates the water level specified in the operation process of reservoirs or reaches the spillway threshold because the actual water flow to the reservoir in day D is much higher than the forecasted water level;

- The hydropower plants fail to meet the demand for downstream water supply during day D at the request of a competent agency due to a breakdown of the power plants in day D.

2. Principles of quotation adjustment

a) With regard to cases specified at Point a, Point b, Point c, Clause 1 of this Article:

- The adjusted quotation must not change the quoted price in comparison with the day-ahead quotation of that bidding unit;

- In the cases specified at Point a, Clause 1 of this Article: All quoted capacity ranges in the adjusted quotation of the thermo-power set must be equal and equal to the estimated capacity to be generated during the grid connection or shutdown;

- In the cases specified at Point b, Clause 1 of this Article: The adjusted quotation shall not be changed its capacity to the capacity level less than or equal to the announced capacity in the next trading period, except for cases of violations against the technical requirements of quotation. The quotation adjusted to increase its capacity for early operation cycles in day D of the early-grid connecting thermal power generating set is the valid quotation for the latest cycle with an announced capacity greater than 0 (zero) MW of that generating set.

b) With regard to the cases specified at Point dd, Clause 1 of this Article

- The generating unit shall only change the capacity level in the quoted ranges of the day-ahead quotation;

- The generating unit shall send to the electricity system and market operating unit (through the information technology system serving the electricity market operation) an adjusted quotation for the remaining trading period of day D, at the same time clearly stating the reasons and necessary information and figures as a basis for the electricity system and market operating unit to consider and approve the use of the adjusted quotation;

- The adjusted quotation must comply with the provisions of Article 46 of this Circular.

3. The bidding unit may make adjustment and resubmit the quotation for the next day or the remaining trading period of day D to the electricity system and market operating unit at least 30 minutes before the trading period in which the quotation is changed.

4. After receiving the adjusted quotation from the bidding unit, the electricity system and market operating unit shall, based on the actual situation of the electricity system, inspect and confirm the validity of the adjusted quotation:

a) In cases where the adjusted quotation is invalid, the electricity system and market operating unit shall assume the responsibility for notifying the reasons to the generating unit;

b) In cases where the adjusted quotation is valid:

- With regard to the quotation adjusted to increase its capacity (except for the cases specified at Points d and dd, Clause 1 of this Article), the electricity system and market operating unit shall assume the responsibility for using the adjusted quotation in electricity market operation when the announced schedule of the next day or the next trading period gives a warn about capacity shortage or in necessary cases of ensuring power supply security.

- With regard to the remaining cases, the electricity system and market operating unit shall assume the responsibility for using this adjusted quotation during the electricity market operation process.

Article 48. Price offering of group of cascade hydropower plants

1. The group of cascade hydropower plants shall make price offer according to a common quotation of the group and comply with the quoted price limit specified in Clause 3, Article 14 of this Circular.

2. The power plants in the group of cascade hydropower plants shall assume the responsibility for negotiating and appointing a representative unit to offer prices. The unit representing the group of cascade hydropower plants to make price offer shall assume the responsibility for submitting the registration document enclosed with the written agreement between the power plants in the group to the electricity system and market operating unit.

3. In the absence of representative unit registration to offer price for the group of cascade hydropower plants, the electricity system and market operating unit shall assume the responsibility for announcing the mobilization chart for the plants of that group based on the results of calculating the water value of the group.

4. The representative unit to offer price shall comply with the regulations on price offer for all power plants in the group of cascade hydropower plants.

5. In cases where a hydropower plant belonging to the group of ladder hydropower plants proposes to make price offer by itself, based on its proposal and water use optimization constraints of the whole group, the Electricity Regulatory Authority shall consider and decide on the price offer of such hydropower plant.

6. The water value of the group of cascade hydropower plants is the water value of the largest hydropower reservoir in that cascade. The electricity system and market operating unit shall assume the responsibility for determining the hydropower reservoir used to calculate water value for the group of cascade hydropower plants together with the classification of hydropower plants in accordance with Article 18 of this Circular.

7. In cases where a group of cascade hydropower plants includes a multi-purpose strategic hydropower plant

a) The electricity system and market operating unit shall assume the responsibility for announcing the generated output quantity of each trading period in the next week of each power plant in the group of cascade hydropower plants as prescribed in Clause 2, Article 38 of this Circular;

b) In cases where the announced output quantity of a multi-purpose hydropower plant in the group is adjusted according to Article 54 of this Circular, the electricity system and market operating unit shall adjust the announced output quantity of power plants in the lower cascade.

Article 49. Submission of quotation

1. Before 11:30 of day D-1, the bidding unit shall assume the responsibility for submitting the quotation of day D.

2. The bidding units shall submit their quotations through the electricity market information system. In cases where the electricity market information system cannot be used due to an incident, the bidding units shall assume the responsibility for agreeing with the electricity system and market operating unit on other methods for submitting the quotation in the following priority order:

a) Submitting by email to the address specified by the electricity system and market operating unit;

b) Submitting by fax according to the fax number provided by the electricity system and market operating unit;

c) Submitting in person at the office of the electricity system and market operating unit.

Article 50. Examination of the validity of quotation

1. Before 11:00 of day D-1, the electricity system and market operating unit shall assume the responsibility for checking the validity of the quotation received from the bidding units as prescribed in Article 49 of this Circular. In cases where the bidding units send more than one quotation, only the quotation last received shall be considered.

2. In cases where the quotation is invalid, the electricity system and market operating unit shall notify the bidding units and request the submission of the final quotation before the end of price offer.

3. After receiving the notification from the electricity system and market operating unit of the invalid quotation, the bidding units shall assume the responsibility for adjusting and returning the quotation prior to the end of the bid.

Article 51. Scheduling quotation

1. After the time of terminating a price offer, the electricity system and market operating unit shall check the validity of the final quotation it receives in accordance with the provisions of Article 49 of this Circular. The final quotation shall be used as the scheduling quotation for day-ahead mobilization scheduling.

2. In cases where the electricity system and market operating unit fail to receive the quotation or the final quotation of a bidding unit making price offer in an invalid manner, the electricity system and market operating unit may use that generating unit's default quotation as a scheduling quotation.

3. The default quotation of power plants shall be determined as follows:

a) With regard to a thermal power plant, the default quotation shall be the latest valid quotation. In cases the latest valid quotation fail to match the actual operating state of its generating set, the default quotation shall be the quotation corresponding to the current state and fuel used in the set of default quotations applicable to that month of that generating set. The bidding unit shall assume the responsibility for developing a set of default quotations applicable to the next month of the thermal power unit corresponding to the operating state and fuel of its generating unit and submitting it to the electricity system and market operating unit by the 28^th day of every month;

b) With regard to a hydropower plant and group of cascade hydropower plants, the default quotation is specified as follows:

- Applying the quotation price floor for the output quantity corresponding to the demand for downstream water supply flow;

- Applying the price ceiling price of quotation for the generating sets as prescribed in Article 43 of this Circular for the remaining output quantity.

c) With regard to a hydropower plant that violates the water limit for 02 consecutive weeks, the quoted price and output quantity in its default quotation shall be complied with the provisions at Point b, Clause 2, Article 46 of this Circular.

Article 52. Data used for day-ahead mobilization scheduling

The electricity system and market operating unit shall assume the responsibility for using the following data to schedule the day-ahead mobilization:

1. Daily load charts of the entire national electricity system and the North, Central and South electricity systems.

2. Scheduling quotations of bidding units.

3. Estimated mobilized capacity in each day-ahead trading period of the power plants specified in Clause 2, Article 45 of this Circular.

4. Exported and imported electricity output quantity as prescribed in Articles 67 and 68 of this Circular.

5. Capacity of generating sets of power plants providing auxiliary services.

6. Capacity requirements for frequency control reserve services.

7. Information on the ability to provide frequency control reserve services of generating sets.

8. Schedule for maintenance and repair of transmission grids and generating sets approved by the electricity system and market operating unit.

9. Schedule for generating set testing.

10. Results of short-term system security assessment for day D in accordance with the Regulation on electricity transmission systems promulgated by the Ministry of Industry and Trade.

11. Up-to-date information on the availability of transmission grids and generating units from the SCADA system or provided by the transmission network operating units and generating units.

Article 53. Day-ahead mobilization scheduling

The electricity system and market operating unit shall assume the responsibility for scheduling day-ahead mobilization. A day-ahead mobilization schedule shall include:

1. Non-conditional mobilization schedule, including:

a) Estimated SMP in each day-ahead trading period;

b) Order of mobilizing generating sets in each day-ahead trading period.

2. Conditional mobilization schedule, including:

a) Expected  chart of mobilizing each generating unit in each day-ahead trading period, the marginal price of each domain in each trading cycle of the next day; the area-specific margin prices in each day-ahead trading period;

b) Expected schedule for stopping, starting and grid connection status of each generating set in the next day;

c) Expected operation modes and wiring diagram of the electricity system in each day-ahead trading period;

d) Warnings (if any);

dd) Capacity for frequency control reserve services of generating sets.

3. Day-ahead mobilization scheduling next day mobilization in cases of capacity redundancy

The electricity system and market operating unit shall assume the responsibility for calculating and reducing gradually the capacity to the lowest stable generating capacity or stopping and changing the restart time of generating sets in case of capacity redundancy in accordance with the following principle:

a) Reducing the generating capacity of generating sets with variable costs in the high-to-low order;

b) Stopping slow-start generating units with variable costs in the high-to-low order; in cases of slow-start generating units with the same variable cost, stopping the generating sets in the low-to-high order of starting costs;

c) Restarting in the order of slow-start generating units with variable costs in the low-to-high order;

d) Calculating the downtime of generating units to meet the system requirements, limiting the operation of generating units up and down many times; ensuring optimal exploitation of hydropower reservoirs.

The electricity system and market operating unit shall assume the responsibility for preparing and publishing a list of generating sets in order of mobilization to reduce capacity and stop the machine in cases of power oversupply in accordance with the principles specified in this Clause.

Article 54. Disclosure of day-ahead mobilization schedule

Before 16:00 every day, the electricity system and market operating unit shall assume the responsibility for disclosing information in the day-ahead mobilization schedule, specifically as follows:

1. The expected mobilized capacity includes both frequency control and rotation reserve capacity of generating sets in each day-ahead trading period. The area-specific margin prices in each day-ahead trading period.

2. The expected SMP for each day-ahead trading period, applicable to generating units and electricity wholesale buyers.

3. List of generating sets expected to increase or decrease capacity in each day-ahead trading period.

4. Information on warnings about capacity shortage in the next day (if any)

a) Trading periods with expectation of capacity shortage;

b) Amount of capacity shortage;

c) Violated system security constraints.

5. Information on warnings about capacity redundancy (if any) in the next day

a) Trading periods with expectation of capacity redundancy;

b) Generating units expected to stop generating electricity.

6. Information on provision of frequency control reserve services

a) Capacity demand for frequency control reserve services of the electricity system;

b) List of generating sets providing frequency control reserve services;

c) Capacity for frequency control reserve services of the generating sets included in the list at Point b of this Clause.

7. Expected information on the shortage of gas fuel supply to the gas turbine power plants of the generating unit directly trading in the next trading period (when the total expected power output quantity of the power plant corresponding to the amount of distributed gas remains lower than its total contractual output quantity of trading period).

Article 55. Grid connection of generating sets

1. With regard to a slow-start generating set, the generating unit shall assume the responsibility for preparing to connect such generating set to the grid according to the day-ahead mobilization schedule announced by the electricity system and market operating unit. In cases where the starting time of a generating set is greater than 24 hours, the generating unit shall assume the responsibility for connecting such generating unit to the grid based on the results of short-term system security assessment announced by the electricity system and market operating unit.

2. With regard to a generating unit that is not slow-start, the generating unit shall assume the responsibility for preparing to connect such generating unit to the grid according to the trading period-ahead mobilization schedule announced by the electricity system and market operating unit.

3. During the grid connection of thermal power generating sets, the generating unit shall assume the responsibility for updating the capacity of each trading period into the  generating set's quotation and sending it to the electricity system and market operating unit in accordance with Article 47 of this Circular.

Article 56. Handling in cases of warning capacity shortage

1. The electricity system and market operating unit may adjust the announced capacity of multi-purpose strategic hydropower plants according to the provisions of Clause 2, Article 59 of this Circular.

2. The electricity system and market operating unit shall assume the responsibility for using the quotation that is adjusted to increase its capacity as a scheduling quotation in order to schedule the trading period-ahead mobilization and calculate the electricity market price.

Article 57. Handling in cases of warning capacity shortage for frequency control reserve services

1. The electricity system and market operating unit shallassume the responsibility for making a mobilization schedule to meet the requirements for frequency control reserve services, except for the shortage of capacity for frequency control reserve services.

2. The electricity system and market operating unit may use the quotation that is adjusted to increase the capacity as a scheduling quotation to make the day-ahead mobilization schedule.

3. The electricity system and market operating unit may change the announced capacity of the power plants indirectly participating in the electricity market as prescribed in Article 45 of this Circular to ensure frequency control reserve requirements.

Section 2. OPERATION OF TRADING PERIOD-AHEAD ELECTRICITY MARKET

Article 58. Scheduling data for trading period-ahead mobilization

The electricity system and market operating unit shall assume the responsibility for using the following data to schedule the trading period-ahead mobilization:

1. Expected load charts of the entire national electricity system and the North, Central and South electricity systems for the next trading period and the next 3 hours.

2. The grid connection plan of slow-start generating units according to the announced day-ahead mobilization.

3. Scheduling quotations of units bidding for the next trading period.

4. The announced capacity according to the day-ahead mobilization schedule of power plants that do not make price offer directly on the electricity announced by the electricity system and market operating unit in accordance with the provisions of Article 54 of this Circular.

5. The capacity demand for frequency control reserve services of the electricity system and the ability to provide frequency control reserve services of the generating sets providing this service.

6. The quick-start and must-run operation reserve capacity for ensuring the electricity system security for the next trading period.

7. Availability of transmission grids and generating sets from SCADA system or supplied by the transmission network operating units and generating units.

8. Other constraints on system security.

9. Schedule for generating set testing.

10. Imported electricity output quantity.

Article 59. Adjustments to announced output quantity of multi-purpose strategic hydropower plants

1. Before scheduling the trading period-ahead mobilization, the electricity system and market operating unit may adjust the output quantity of multi-purpose strategic hydropower plants for the next trading period announced in accordance with Clause 2, Article 60 of this Circular in the following cases:

a) Having unusual changes in hydrology;

b) Having warnings about capacity shortage according to the day-ahead mobilization schedule;

c) Having documents issued by a competent agency on reservoir regulation of a multi-purpose strategic hydropower plant serving the purpose of flood control and irrigation.

2. Scope of adjustment of announced output quantity of multi-purpose strategic hydropower plants in the cases specified at Points a and b, Clause 1 of this Article shall be ± 5% of the total installed capacity of multi-purpose strategic hydropower plants in the electricity system, not including capacity for frequency control and rotation reserve.

Article 60. Trading period-ahead mobilization scheduling 

1. The electricity system and market operating unit shall assume the responsibility for scheduling the trading period-ahead mobilization for generating sets according to non-conditional scheduling method and conditional scheduling method.

2. Scheduling of the trading period-ahead mobilization in cases of capacity shortage

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

- According to the scheduling quotation;

- Multi-purpose strategic hydropower plants according to adjusted capacity;

- Generating sets providing quick-start reserve services according to the day-ahead mobilization schedule;

- Generating sets providing must-run operation services to ensure the electricity system security;

- Rotation reserve capacity;

- Reducing frequency control reserve capacity to the lowest level allowed.

b) The electricity system and market operating unit shall check and determine the amount of expected capacity to be fired to ensure the electricity system security.

3. Scheduling of the trading period-ahead mobilization in cases of capacity redundancy

The electricity system and market operating unit shall assume the responsibility for adjusting the trading period-ahead mobilization schedule by taking measures in the following order:

a) Halting generating sets voluntarily stopping power generation;

b) Minimizing the generating capacity of generating sets providing rotation 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.

4. The electricity system and market operating unit shall assume the responsibility for scheduling the trading period-ahead mobilization to ensure the constraints on demand for frequency control reserve service.

5. Scheduling of the trading period-ahead mobilization in cases of capacity shortage for frequency control reserve services

a) The electricity system and market operating unit shall assume the responsibility for scheduling the mobilization to ensure frequency control reserve service requirements, except cases of capacity shortage;

b) The electricity system and market operating unit may use the quotation that is adjusted to increase the capacity as a scheduling quotation to schedule the trading period-ahead mobilization;

c) The electricity system and market operating unit may change the announced capacity as prescribed in Article 54 of this Circular for the power plants that indirectly participate in the electricity market to ensure frequency control reserve requirements.

Article 61. Announcement of trading period-ahead mobilization schedule

The electricity system and market operating unit shall assume the responsibility for announcing the trading period-ahead mobilization schedule 10 minutes before the trading period, including the following contents:

1. Forecasted load for the next trading period of the entire national electricity system and the North, Central and South electricity systems.

2. The schedule for mobilization of generating sets, the margin prices of the North, the Central and the South in the next trading period and the next 03 hours, made according to the provisions of Article 60 of this Circular.

3. The expected market price in each day-ahead trading period, applicable to generating units and electricity wholesale buyers.

4. Handling measures of the electricity system and market operating unit in cases of capacity shortage or redundancy.

5. Information on adjustment of the announced capacity of multi-purpose strategic hydropower plants as specified in Article 59 of this Circular.

6. Expected load shedding schedule (if any).

7. Information on provision of frequency control reserve

a) Capacity demand for frequency control reserve service of the electricity system;

b) List of generating sets selected to provide frequency control reserve service;

c) Capacity for frequency control reserve service of generating sets listed in Point b of this Clause.

Section 3. REAL-TIME OPERATION

Article 62. Real-time dispatching of the electricity system

1. The electricity system and market operating unit shall assume the responsibility for operating the power system in real time based on the announced schedule of trading period-ahead mobilization and in compliance with the regulations on electricity system operation in real time as specified in the Regulation on electricity transmission systems promulgated by the Ministry of Industry and Trade. In necessary cases, the electricity system and market operating unit may interfere to ensure the frequency control reserve service requirements of the electricity system (except for force majeure cases).

2. The generating unit shall assume the responsibility for obeying the dispatching order of the electricity system and market operating unit.

3. The generating unit that owns the hydropower plant shall comply with the regulations on the weekly water limit of the hydropower plant calculated and announced by the electricity system and market operating unit in accordance with the provisions of Clause 2, Article 41 of this Circular.

Article 63. Handling in cases reservoirs of hydroelectric plants violate the weekly limit water level

1. The electricity system and market operating unit shall assume the responsibility for warning a power plant of violating the weekly water limit, the power plant shall assume the responsibility for adjusting the quoted price in the following days to ensure that the water limit level is not violated next week.

2. In cases where the reservoir of a power plant violates the weekly water limit level for 02 consecutive weeks, the electricity system and market operating unit shall, starting from 00:00 of the following Monday, schedule the mobilization of this power plant according to the default quotation specified at Point b, Clause 2, Article 46 of this Circular to decrease the reservoir's water level to the weekly limit water level.

3. When making sure that the weekly water limit level is not violated, the hydropower plant may continue to make price offer in the following week.

4. Before 10:00 every Monday, the electricity system and market operating unit shall assume the responsibility for announcing the schedule of mobilization from Tuesday to the generating unit and the electricity buyer in the following cases:

a) The plant violates the reservoir water level in the first week or the plant violates the water level in the second week;

b) The plant's reservoir water level has reached the weekly water limit level and the plant is entitled to make price offer.

Article 64. Electricity market interference

1. The electricity system and market operating unit may interfere in the electricity market in the following cases:

a) The system is operating in emergency mode as specified in the Regulation on electricity transmission systems promulgated by the Ministry of Industry and Trade;

b) It fails to set up a mobilization schedule of the trading period up to 10 minutes before starting the trading period.

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

a) Ensuring the balance of generating capacity and load;

b) Satisfying the requirements for frequency control reserve;

c) Satisfying the requirements for rotation reserve;

d) Satisfying the requirements for voltage quality.

3. Disclosure of information on electricity market interference

a) When interfering in the electricity market, the electricity system and market operating unit shall announce the following contents:

- Reasons for interfering in the electricity market;

- Expected trading periods of interference in the electricity market.

b) Within a period of 24 hours after ending the interference in the electricity market, the electricity system and market operating unit shall assume the responsibility for disclosing the following contents:

- Reasons for interfering in the electricity market;

- Trading periods of interference in the electricity market;

- Measures applied by the electricity system and market operating unit to interfere in the electricity market.

Article 65. Electricity market termination

1. The electricity market shall terminate its operation in one of the following cases:

a) Due to emergencies related to natural disasters or national defense and security protection;

b) The electricity system and market operating unit requests to terminate the electricity market in one of the following cases:

- The electricity system operates in an extremely urgent mode as prescribed in the Regulation on electricity transmission systems promulgated by the Ministry of Industry and Trade;

- Failing to ensure safe and continuous operation of the electricity market.

c) Other cases at the request of competent agencies.

2. The Electricity Regulatory Authority shall consider and decide on termination of the electricity market in the cases specified at Points a and b, Clause 1 of this Article and notify the electricity system and market operating unit.

3. The electricity system and market operating unit shall assume the responsibility for notifying the electricity market's participants of the electricity market termination decisions issued by the Electricity Regulatory Authority or by competent agencies.

4. Operation of the electricity system during the electricity market termination

a) The electricity system and market operating unit shall assume the responsibility for dispatching and operating the electricity system according to the following principles:

- Ensuring the safe, stable and reliable operation of the electricity system with the lowest cost of purchasing electricity for the whole system;

- Ensuring the implementation of output quantity agreements in electricity export and import contracts, power sale and purchase contracts of BOT power plants and power sale and purchase contracts with commitments on output quantity of other power plants;

- Ensuring the implementation of downstream water supply requirements for hydropower plants.

b) The generating unit, the transmitting unit and other related units shall assume the responsibility for obeying the dispatching order of the electricity system and market operating unit.

Article 66. Electricity market restoration

1. The electricity market may restore its operation when meeting the following conditions:

a) Reasons for termination of the electricity market have been resolved;

b) The electricity system and market operating unit certifies the ability to re-operate the electricity market.

2. The Electricity Regulatory Authority shall assume the responsibility for considering and deciding on the restoration of the electricity market and notifying the electricity system and market operating unit.

3. The electricity system and market operating unit shall notify the electricity market's participants of the electricity market restoration decisions issued by the Electricity Regulatory Authority.

Section 4. ELECTRICITY EXPORT AND IMPORT IN ELECTRICITY MARKET OPERATION

Article 67. Handling of exported electricity in mobilization scheduling

1. Before 10:00 of day D-1, the electricity system and market operating unit shall assume the responsibility for announcing the expected output quantity of exported electricity in each trading period of day D.

2. The exported electricity output quantity shall be calculated as the load at the point of export and be used to calculate the system load forecast for scheduling the day-ahead and trading period-ahead mobilization.

Article 68. Handling of imported electricity in mobilization scheduling

1. Before 10:00 of day D-1, the electricity system and market operating unit shall assume the responsibility for announcing the expected output quantity of imported electricity in each trading period of day D.

2. The imported electricity output quantity in the mobilization scheduling shall be calculated as the must-run source with the chart already announced in the next day.

Article 69. Payment for exported and imported electricity

The amount of imported or exported electricity shall be paid under an import or export contract signed between the parties.

Chapter VI

ELECTRICITY METERING IN THE ELECTRICITY MARKET

Article 70. Boundary measurement positions in the electricity wholesale market

1. In the electricity wholesale market, boundary measurement positions for determining the scope of electricity wholesale purchase in which a main and backup electricity metering system for accurate measurement of electricity output quantity to buy and sell or deliver and receive between units is required.

2. Boundary measurement positions in the electricity wholesale market shall be individually identified in the database of the electricity metering data management system according to the regulations applicable to market members, including:

a) The boundary measurement position for electricity delivery and receipt between the power plant and the transmission grid;

b) The boundary measurement position for electricity import or export delivery and receipt with the transmission grid;

c) The boundary measurement position for electricity delivery and receipt between the transmission grid and the distribution grid;

d) The boundary measurement position for electricity delivery and receipt between the power plant and the distribution grid;

dd) The boundary measurement position   on the distribution grid among electricity wholesale units.

Article 71. Electricity metering system and electricity metering data collection, processing and storage system

1. The electricity metering system and the metering data collection, processing and storage system shall be designed in accordance with the boundary measurement positions in the electricity wholesale market as prescribed in Article 70 of this Circular.

2. Detailed requirements on minimum configuration, technical specifications, lead-clamp sealing and security, operation and maintenance, acceptance, troubleshooting of the metering system, inspection and audit are specified in the Regulation on electricity metering in the electricity system issued by the Ministry of Industry and Trade.

3. Responsibilities for agreeing on electricity metering positions and design of electricity metering systems, responsibilities for investment in the electricity metering system and the metering data collection, processing and storage system are specified in the Regulation on electricity metering in the electricity system issued by the Ministry of Industry and Trade.

Article 72. Responsibilities for the collection and management of metering data in the electricity market

1. The electricity system and market operating unit shall assume the responsibility for fully collecting  metering data at the boundary measurement positions for delivery and receipt specified in Clause 2, Article 70 of this Circular (with regard to the boundary measurement positions between the power plant and the power distribution grid, the provisions of Clause 5 of this Article shall be applied); metering data collected and announced by the electricity system and market operating unit is the priority data used for calculation and payment purposes in the electricity market.

2. Except measurement positions for delivery and receipt with the power plant, the electricity transmission unit shall assume the responsibility for collecting delivery and receipt measurement data within its management and sending it to the metering database of the Vietnam Electricity.

3. The electricity wholesale unit shall assume the responsibility for collecting delivery and receipt measurement data within its management and sending it to the metering database of the Vietnam Electricity.

4. The power plants with installed capacity of more than 30 MW and the power plants with installed capacity of equal to or less than 30 MW that are members of the competitive wholesale electricity market shall assume the responsibility for collecting metering data within their management and send it to the electricity system and market operating unit for serving as reserve data source or basis for comparison with the data directly collected by the electricity system and market operating unit or basis for confirmation of official metering data used for calculation and payment purposes in the electricity market.

5. The remaining power plants (with installed capacity of equal to or less than 30 MW not participating in the competitive wholesale electricity market)

a) In cases where the power plants using renewable energy enters into a contract with the Vietnam Electricity, the electricity system and market operating unit shall directly collect metering data;

b) With regard to small hydropower plants, the wholesale unit shall collect metering data from the power plants according to its management scope and send it to the electricity system and market operating unit.

6. In cases of changing boundary measurement positions for delivery and receipt or methods of electricity delivery and receipt for boundary measurement within their management scope, the generating units, transmitting units, and electricity buyers shall assume the responsibility for timely notify and update such changes to related parties for the collection and transmission of electricity metering data to the electricity system and market operating unit.

Article 73. Storage of metering data

The electricity system and market operating unit and the units participating in the competitive wholesale electricity market as prescribed in Article 2 of this Circular shall assume the responsibility for storing the electricity metering data and related documents for a period of at least 05 years.

Article 74. Methods and order of collecting metering data

1. The reading and sending of data of meters to the electricity system and market operating unit shall be conducted on a daily basis by two parallel and independent methods, including:

a) Method 1: The electricity system and market operating unit shall conduct time synchronization and collect metering data directly to the boundary meters of the wholesale electricity market as prescribed in Article 72 of this Circular;

b) Method 2: The generating units, the transmitting units and the electricity wholesale units shall collect metering data of meters within their management scope. The data collected by the transmitting units and the electricity wholesale units shall be sent to the metering database of the Vietnam Electricity.

2. The order of collecting metering data shall comply with the following schedule:

a) From 00:15 to 16:00 of day D+1, the electricity system and market operating unit, generating units, transmitting units and electricity wholesale units shall collect metering data of day D within their management scope;

b) Before 24:00 of day D+1, the electricity system and market operating unit shall announce metering data to serve the inspection of metering data;

c) Before 12:00 of day D+4, the transmitting units and the electricity wholesale units shall check and compare metering data, detect problems and events leading to output difference and send their confirmation on metering data to the electricity system and market operating unit. After this time, the electricity system and market operating unit shall not receive any response on problems related to the metering data of day D. In cases where there is no response on the electricity market's website before 12:00 of day D+4, it means that the units have confirmed their consent and the electricity system and market operating unit shall not be responsible for handling any response arising later;

d) Before 12:00 of day D+5, the electricity system and market operating unit shall coordinate with relevant units in inspecting, verifying, handling deviations and estimating metering data;

dd) Before 16:00 of day D+5, the electricity system and market operating unit shall assume the responsibility for calculating and disclosing the official metering data and load of day D on the electricity market's website;

e) Before the 8^th working day after ending the payment period, the electricity system and market operating unit shall assume the responsibility for disclosing the record of closing the difference in output quantity in the payment period.

3. Requirements for metering data collection

a) Metering data daily collected and sent to the unit managing the metering data includes active and reactive power values ​​in the two directions of receipt and transmission of each 30-minute trading period within a day from the main and reserve meters;

b) Metering data shall be publicly disclosed after 24 hours of day D+1 (fully updated according to the process of examining, determining and estimating data) so that electricity buyers and sellers have the right to full access and inspection within their scope of electricity purchase and sale;

c) Regulations on data formats, methods of data conversion, procedures for examining, determining and estimating electricity metering data are specified in the Regulation on electricity metering  in the electricity system issued by the Ministry of Industry and Trade and other processes of implementation guidance.

Article 75. Examination of metering data

1. A metering data management unit shall assume the responsibility for checking metering data collected at the metering data collecting, processing and storing center to ensure the accuracy and validity of measured data.

2. The examination and comparison of metering data shall be carried out according to the following principles:

a) Metering data of the reserve metering system shall be used for comparison with that of the main metering system (after converting to the same position) as a basis for confirming that the main metering system operates in an accurate and reliable manner with the error not greater than 1%;

b) Data of meters read and sent to the electricity metering data management unit by the electricity metering system operating unit shall be compared with the data directly measured by the electricity metering data management unit  as a basis for determining the reliability and accuracy of metering data;

c) Data of electricity output quantity daily collected from the main metering and reserve systems shall be disclosed, and examined and verified by related parties as a basis for payment calculation.

3. In cases of detecting abnormal and inaccurate metering data, the metering data management unit shall collect (or request the metering system operating unit to re-collect) and perform the steps of re-examining the metering data as prescribed in Clause 2 of this Article.

4. In cases where it fails to collect metering data or  results of inspection, compare the metering data show the difference between the metering data with the data in the computer located on the spot or the data in the metering database, the metering data management unit shall assume the prime responsibility for, and coordinate with relevant units in, investigating the causes to handle and estimate compensation for deviations (if any) in accordance with the Regulation on electricity metering in the electricity system issued by the Ministry of Industry and Trade.

5. In cases of disagreement on disclosed metering data, the units have the right to request reservation and ad-hoc audit or perform complaint procedures with competent agencies.

Article 76. Calculation of measured electricity output quantity in the electricity wholesale market

1. Electricity metering data of generating units shall be determined by the electricity delivery and receipt formula of that generating units and specified in the electricity metering agreements.

2. Electricity metering data of electricity wholesale buyers in a trading period shall be determined as follows:

a) Equal to the sum of the following components:

- Output quantity received on the transmission grid;

- Total output quantity received from other electricity wholesale buyers;

- Total output quantity received from electricity sources connected to the distribution grid;

- Total output quantity from imported sources connected to the distribution grid.

b) Subtracting the following components:

- Total output quantity delivered to the transmission grid;

- Total output quantity delivered to other electricity wholesale buyers.

Article 77. Estimation of metering data

1. In cases where it fails to collect accurate metering data of day D in accordance with the provisions of Articles 74, 75 and 76 of this Circular for the electricity system and market operating unit, the estimation of metering data shall be conducted in accordance with regulations in the procedures for collecting, processing and managing metering data in the electricity market issued by the Electricity Regulatory Authority for the purposes of guiding the implementation of the Regulation on electricity metering in the electricity system promulgated by the Ministry of Industry and Trade.

2. After estimating electricity metering data, relevant units shall take measures to re-collect and determine accurate metering data as the basis for making arrears and reimbursements for the periods of applying electricity metering data estimation.

3. In cases where it fails to determine accurate metering data, estimated metering data shall be used as an official basis for the payment of electricity bills among units.

Article 78. Confirmation of electrical output according to meter closing indicators

Digital signatures shall be applied to confirm the following metering data:

1. The total amount of upstream-delivered electricity output quantity of electricity wholesale buyers.

2. The output quantity of electricity purchased on the electricity market.

3. The difference of output quantity among monthly output indicators.

4. The total amount of output quantity collected in each trading period within month.

Chapter VII

CALCULATION OF THE SPOT ELECTRICITY MARKET PRICES

Section 1. CALCULATION OF THE SPOT ELECTRICITY MARKET PRICES APPLICABLE TO GENERATING UNITS

Article 79. Determination of SMP applicable to generating units

1. After the trading day D, the electricity system and market operating unit shall assume the responsibility for scheduling the calculation of SMP for each trading period of day D in the following order:

a) Calculating the system load in the trading period by converting measured output quantity towards terminals of generating sets;

b) Scheduling the calculation of SMP by the method of non-conditional scheduling in the following order:

- Making fixed arrangement of the actual generating output quantity of power plants indirectly participating in the electricity market and power plants directly participating in the electricity market but separated from the electricity market in trading periods under the background of the electricity system load chart;

- Making arrangement of capacity ranges in the scheduling quotations of the generating units directly involved in trading.

2. The SMP applicable to generating units shall be equal to the quoted price of the final scheduled capacity range in order to meet the system load in the schedule of SMP calculation. In cases the quoted price of the final capacity range in the schedule of SMP calculation is higher than the price ceiling of electricity market, the SMP shall be equal to the electricity market price ceiling.

Article 80. FMP applicable to generating units

The FMP applicable to generating units in a trading period shall be determined by the following formula:

FMP(i) = SMP(i) + CAN(i)

Where:

FMP(i): Full market price applicable to generating units in trading period i (VND/kWh);

SMP(i): System marginal price applicable to generating units in trading period i that is determined in accordance with Article 79 of this Circular (VND/kWh);

CAN (i): Capacity add-on price applicable to generating units in trading period i that is determined in accordance with Article 26 of this Circular (VND/kWh).

Article 81. Determination of SMP when interfering in the electricity market

In cases of any interference in the electricity market as prescribed in Article 64 of this Circular, the electricity system and market operating unit shall not calculate the SMP during the period of interference.

Section 2. SPOT ELECTRICITY MARKET PRICE APPLICABLE TO ELECTRICITY WHOLESALE BUYERS

Article 82. Spot market electricity price applicable to electricity wholesale buyers

The spot market electricity price applicable to electricity wholesale buyers in trading period i shall be calculated as follows:

1. Calculating the conversion coefficient based on power loss in trading period i by the following formula:

Where:

k(i): Conversion coefficient based on power loss in trading period i;

QG(i): Total amount of electricity output quantity in trading period i of power plants connected to the transmission grid, electricity import sources, power plants connected to the distribution grid that participate in the market or sign power purchase agreement with the Vietnam Electricity (kWh);

QL(i): Total amount of upstream-delivered electricity  output quantity of electricity buyers in trading period i, including the delivered and received output quantity of the electricity buyers (having electricity exporting units) with the transmission grid and the delivered and received output quantity with power plants connected to the distribution grid that participate in the market or sign a power purchase agreement with the Vietnam Electricity (kWh).

2. Calculating the SMP applicable to electricity wholesale buyers

CSMP(i) = k(i) x SMP(i)

Where:

CSMP(i): The system marginal price applicable to electricity wholesale buyers in trading period i (VND/kWh);

SMP(i): The system marginal price  applicable to generating units in trading period i that is calculated in accordance with Article 79 of this Circular (VND/kWh);

k(i): Conversion coefficient based on power loss in trading period i that is determined in accordance with Clause 1 of this Article.

Article 83. CAN applicable to electricity wholesale buyers

The capacity add-on price applicable to electricity wholesale buyers in trading period i shall be calculated as follows:

CCAN(i) = k(i) x CAN(i)

Where:

CCAN(i): The capacity add-on price applicable to electricity wholesale buyers in trading period i  (VND/kWh);

CAN(i): The capacity add-on price applicable to generating units in trading period i that is calculated in accordance with the provisions of Point b, Clause 3, Article 26 of this Circular (VND/kWh);

k(i): Conversion coefficient based on power loss in trading period i that is determined in accordance with Clause 1 Article 82 of this Circular.

Article 84. FMP applicable to electricity wholesale buyers

The FMP applicable to electricity wholesale buyers in trading period i shall be determined by the following formula:

CFMP(i) = CSMP(i) + CCAN(i)

Where:

CFMP(i): The full market price applicable to electricity wholesale buyers in trading period i (VND/kWh);

CSMP(i): The system marginal price applicable to electricity wholesale buyers in trading period i (VND/kWh);

CCAN(i): The capacity add-on price applicable to electricity wholesale buyers in trading period i (VND/kWh).

Article 85. Disclosure of spot electricity market price

1. Before 9:00 of day D+2, the electricity system and market operating unit shall assume the responsibility for announcing the SMP, CAN and FMP applicable to generating units in each trading period of day D.

2. Before 16:00 of day D+2, the electricity system and market operating unit shall assume the responsibility for announcing the expected SMP, CAN and FMP applicable to electricity wholesale buyers in each trading period of day D.

3. Before 16:00 of day D+5, the electricity system and market operating unit shall assume the responsibility for announcing the official SMP, CAN and FMP applicable to electricity wholesale buyers in each trading period of day D.

Chapter VIII
         PAYMENT

Section 1. PAYMENT TO DIRECTLY TRADING GENERATING UNITS

Article 86. Power output quantity of a power plant in service of payment on the electricity market

1. The power system and market operating unit shall calculate the power output portions of a power plant in the trading period in service of payment on the electricity market, including:

a) Power output quantity settled at the quotation for thermal power plants providing the quotations which are higher than the price ceiling of the electricity market (Qbp);

b) Increased generation output quantity (Qcon);

c) Generation output quantity which is different from the mobilized output quantity under the dispatch order (Qdu) in cases where the power plant is not operating through the AGC system;

d) Power output quantity settled at the SMP (Qsmp).

2. In cases where the generating set is not operating through the AGC system, the generation output quantity which is different from the mobilized output quantity under the dispatch order (Qdu) of the power plant in the trading period shall be calculated in the following order

a) Calculating the mobilized output quantity under the dispatch order

The mobilized output quantity under the dispatch order is the output quantity at a generator’s terminals calculated in accordance with the dispatch order for the generating set mobilization by the power system and market operating unit, base on the capacity  under the dispatching order and load increase or decrease speed of the generating set. The mobilized output quantity according under the dispatch order shall be calculated by the following formula:

Where:

i: Trading period i;

J: Number of changes of dispatch order in trading period i;

: The time j in trading period i when the power system and market operating unit gives the dispatching order to change the capacity of the generating set (minute);

: The time when the generating set reaches the capacity as the power system and market operating unit gives the dispatching order at the time  (minute);

∆T: Duration of a trading period (minute);

Qddi: Mobilized output quantity under the dispatch order calculated at the terminals of a certain generator in trading period i (MWh);

: The capacity as the power system and market operating unit gives the dispatch order to the generating set at the time  (MW);

: The capacity of the generating set reached at the time  (MW).

Duration from the time  of the dispatch order with the capacity to the time  when the generating set reaches the capacity  shall be calculated as follows:

Where:

a) Load increase and decrease speed of the generating set registered in the scheduling quotation (MW/minute).

The load increase and decrease speed of a generating set registered in the scheduling quotation shall be suitable to the load increase and decrease speed specified in the power purchase agreement. In cases where the power purchase agreement does not specify the load increase and decrease speed or the load increase and decrease speed specified in the agreement is different in the reality, the generating unit shall determine such date based on experiment results or by drawing experiences from the actual operation of the generating set and sign the agreement on additional appendices on such technical specifications wit electricity buyers, serving as a basis for payment;

b) Converting the mobilized output quantity under the dispatch order () calculated in accordance with the provisions of Point a of this Article at the metering points;

c) Calculating the difference between the metered output quantity and the mobilized output quantity under the dispatch order using the following formula:

∆Q_i = Qmq_i - Qdd_i

Where:

∆Qi: Generation output quantity different from the mobilized output quantity under the dispatch order in trading period i (kWh);

Qmqi: Metered output quantity of the generating set converted at the terminals of the generating set in trading period i (kWh);

Qddi: Mobilized output quantity under the dispatch order of the generating set in trading period i calculated in accordance with the provisions of Point a Of this Article (kWh).

In cases where the dispatch order is not given in trading period i, Qdd shall be calculated using the formula:

Where:

Qddi: Mobilized output quantity under the dispatch order of the generating set in trading period i (kWh);

: Capacity as the power system and market operating unit dispatch order to the generating set at the time (MW);

∆T: Duration of a trading period (minute).

d) Calculating the generation output quantity different from the dispatch order of the generating set following the below principles:

- Calculating the allowable difference using the following formula:

+ For the generating set with the installed capacity of less than 100 MW:

+ For the generating set with the installed capacity of 100 MW or more:

Where:

ε: The allowable difference for the generating set in each trading period (kWh);

Qddi: Mobilized output quantity under the dispatch order at the terminals of the generating set (kWh);

∆T: Duration of a trading period (minute).

- Calculating the generation output quantity different from the dispatch order in a trading period of the generating set using the following formula:

+ In cases where ∆Qi ≤ ε: Qdui = 0

+ In cases where ∆Qi > ε: Qdui = ∆Qi x kqd

Where:

Qdui: Generation output quantity different from the dispatch order in trading period i of the generating set (kWh);

∆Qi: Generation output quantity different from the mobilized output quantity under the dispatch order in trading period i (kWh);

kqd: Conversion coefficient for the output quantity at the terminals of the generating set to the metering points.

- Calculating the generation output quantity different from the dispatch order in a trading period of a power plant using the following formula:

Where:

Qdui: Generation output quantity different from the dispatch order in trading period i of the power plant (kWh);

Qdui,g: Generation output quantity different from the dispatch order in trading period i of generating set g of the power plant (kWh);

G: Total generating sets of the power plant.

dd) In cases where a thermal power generating set is in the process of startup or shutdown (not breakdown), the generation output quantity different from the dispatch order in this period shall not be taken into accounts. In cases where one generating set has technical restrictions affecting the generation capacity of other generating set of the power plant, the generation output quantity different from the dispatch order of the affected generating sets shall not be taken into accounts;

e) Meters at the terminals of the generating set and meters installed at the self-employed metering points of the generating set (if any) shall be prioritized in determining the actual generation output quantity at the terminals of the generating set in order to compare with the compliance with the dispatch order of the dispatch order management system.

3. Output quantity settled at the quotation for the thermal power plant providing the quotation higher than the price ceiling of the electricity market in a trading period shall be calculated as follows:

a) Determining the generating set providing the quotation higher than the price ceiling of the electricity market scheduled for SMP calculation in trading period i and the metering points of such generating set;

b) Calculating the output quantity settled at the quotation at each metering point specified at Point a of this Article using the following formula:

Where:

i: Trading period i;

j: Metering point j of the thermal power plant, specified at Point a of this Article;

: Output quantity settled at the quotation at the metering point j in trading period i (kWh);

Qmq: Metered output quantity at the metering point j in trading period i (kWh);

Qbb: Output quantity corresponding to the capacity with the quotation lower than or equal to the price ceiling of the electricity market in trading period i of the generating set connected to metering point j and converted at such metering point (kWh);

Qgb: Output quantity corresponding to the capacity with the quotation lower than or equal to the price ceiling of the electricity market and scheduled for SMP calculation in trading period i of the generating set connected to metering point j and converted at such metering point (kWh);

Qdu: Generation output quantity different from the mobilized output quantity under the dispatch order of the generating set connected to metering point j and converted at such metering point (kWh).

c) Calculating output quantity settled at the quotation for a power plant using the following formula:

Where:

j: Metering point j of the thermal power plant, specified at Point a Of this Article;

J: Total number of metering points of the power plant with the generating set providing the quotation higher than the price ceiling of the electricity market and scheduled for SMP calculation;

Qbpi: Output quantity settled at the quotation of the power plant in trading period i (kWh);

Qbp: Output quantity settled at the quotation at metering point j in trading period i (kWh).

4. Increased generation output quantity of power plant in a trading period shall be calculated in the following order:

a) Calculating the increased generation output quantity in the trading period at the terminals of the generating set using the following formula:

In cases where Qdu > 0:

In cases where Qdu ≤ 0:

Where:

: Metered quantity for payment of the generating set, in trading period i, converted at the terminals of the generating set (kWh);

: Generation output quantity different from the mobilized output quantity under the dispatch order of the generating set converted at the terminals of the generating set (kWh);

: Output quantity corresponding to the capacity of the generating set, listed in the SMP calculation schedule in trading period i (kWh);

: Output quantity corresponding to the dispatching capacity of the generating set in a trading period shall be calculated using the following formula:

Where:

J: Number of changes of the dispatch order due to constraints in trading period i;

: The time j in trading period i when the power system and market operating unit gives the dispatch order of changing the capacity of the generating set due to constraints (minute). In cases where at this time, the capacity of the generating set is lower than the capacity listed in the SMP calculation schedule in trading period (),  shall be determined as the time when the generating set reaches the capacity ;

: The time when the generating set reaches the capacity as the power system and market operating unit gives the dispatch order at the time  (minute). In cases where at this time, the capacity of the generating set is lower than the capacity of the generating set listed in the SMP calculation schedule in trading period i (),  shall be determined as the time when the generating set reaches the capacity;

∆T: Duration of a trading period (minute);

: Capacity as the power system and market operating unit gives the dispatch order to the generating set at the time . In cases where such capacity is lower than the capacity listed in the SMP calculation schedule in trading period (), such capacity shall be equal to the capacity (MW);

: Capacity reached by the generating set at the time (MW);

: The period from the time of the dispatch order  and capacity to the times  when the generating set reaches the capacity, calculated as follows:

a: Load increase and decrease speed of the generating set registered in scheduling quotation (MW/minute).

For the cases where the generating set provide frequency control service in a trading period through the AGC system, or in cases where data on the power under the dispatch order of the power system and market operating unit cannot be determined, such output quantity shall be equal to the metered output quantity of the generating set in the trading period converted at the terminals of the generating set.

In cases where the thermal power generating set in is in the process of startup or shutdown (not breakdown), the increased generation output quantity of such generating set in the trading period is equal to 0.

c) Calculating the increased generation output quantity of a power plant in trading period i using the following formula:

Where:

: Total increased generation output quantity of the power plant in trading period i converted at the metering points (kWh);

g: Generating set with increase output quantity of the power plant in trading period i;

G: Total generating sets with increase output quantity of the power plant in trading period i;

k: Conversion coefficient for the output quantity at the terminals of the generating set to the metering points;

: Increased generation output quantity of the generating set in trading period i at the terminals of the generating set, calculated in accordance with the provisions of Point a of this Article (kWh).

5. Output quantity settled at the SMP of a power plant in trading period i shall be calculated using the following formula:

In cases where the generation output quantity different from the mobilized output quantity under the positive dispatch order (Qdui > 0):

Qsmp_i = Qmq_i - Qbp_i - Qcon_i - Qdu_i

In cases where the generation output quantity different from the mobilized output quantity under the negative dispatch order (Qdui < 0):

Qsmp_i = Qmq_i - Qbp_i - Qcon_i

Where:

Qsmpi: Output quantity settled at the SMP of the power plant in trading period i (kWh);

Qmqi: Metered output quantity of the power plant in trading period i (kWh);

Qbpi: Power quantity settled at the quotation in trading period i for the thermal power plant providing the quotation higher than the price ceiling of the electricity market (kWh);

Qconi: Increased generation output quantity of the power plant in trading period i (kWh);

Qdui: Generation output quantity different from the mobilized output quantity under the dispatch order in trading period i (kWh).

Article 87. Adjusting power output quantity of power plants for the settlement in the electricity market

1. The power output quantity for market settlement shall be adjusted in the following cases:

a) In cases where in the trading period i the metered power output quantity of a power plant is less than or equal to the contractual power output quantity in the same trading period (Qmq_i ≤ );

b) In cases where in the trading period i the metered power output quantity of a power plant is greater than the contractual power output quantity in the trading period of the power plant (Qmq_i > ) and at the same time, the power output quantity settled at the SMP of the power plant is less than the contractual output quantity in the same trading period (Qsmp_i < ).

2. The power system and market operating unit shall be responsible for considering and adjusting components of the power output quantity for market settlement in the trading periods specified in Clause 1, Article 86 of this Circular based on the following output quantity components:

a) The contractual power output quantity in the trading period of the power plant () which is determined in accordance with provisions in Article 38 of this Circular;

b) The power output quantity settled at the SMP (Qsmpi) of the power plant in the trading period i which is determined in accordance with provisions in Clause 5, Article 86 of this Circular;

c) The metered power output quantity of the power plant in the trading period i (Qmqi).

3. Adjustment principles:

a) In cases specified at Point a, Clause 1 of this Article, the incrementally generated power output quantity (Qconi) and the power output quantity settled at the offered price for power plants having their offered price higher than the market price ceiling (Qbpi) shall be adjusted in this trading period to 0 (zero) (Qconi = 0; Qbpi = 0);

b) In cases specified at Point b, Clause 1 of this Article, the power output quantity the settlement in the electricity market shall be adjusted in accordance with the principle of ensuring that there would be no change of the metered power output quantity in this trading period and in accordance with the regulations in the Process of mobilization schedule of generating sets and real time operation issued by the Electricity Regulatory Authority.

Article 88. Settlement for market electrical power

1. The power system and market operating unit shall be responsible for calculating the total amount of settlement of market power of a power plant in a settlement period by the following formula:

Rg = Rsmp + Rbp + Rcon + Rdu

Where:

Rg: The total amount of settlement of market power in a settlement period (VND);

Rsmp: The amount of settlement for the output quantity settled at the SMP in a settlement period (VND);

Rbp: The amount of settlement for the power output quantity settled at the offered price for power plants having their offered price higher than the market price ceiling in a settlement period (VND);

Rcon: The amount of settlement for the incrementally generated power output quantity in a settlement period (VND);

Rdu: The amount of settlement for the difference in the power output quantity compared with the output quantity mobilized by the dispatch order in a settlement period (VND).

2. The amount of settlement for the output quantity settled at the SMP of the power plants in a settlement period shall be determined in the order as follows:

a) Calculation for each trading period i by the following formula:

Rsmp_i = Qsmp_i x SMP_i

Where:

Rsmpi: The amount of settlement for the output settled at the SMP of the power plant of the trading period i in a settlement period (VND);

SMPi: The price of market power of the trading period i in a settlement period (VND/kWh);

Qsmpi: The power output quantity settled at the SMP of the trading period i in a settlement period (kWh).

b) Calculation for the settlement period by the following formula:

Where:

Rsmp: The amount of settlement for the output settled at the SMP of the power plant in a settlement period (VND);

i: Trading period i in a settlement period;

I: The total number of trading periods in a settlement period;

Rsmpi: The amount of settlement for the output settled at the SMP of the power plant of the trading period i (VND);

3. The amount of settlement for the power output quantity settled at the offered price for power plants having their offered price higher than the market price ceiling in a settlement period shall be determined in the order as follows:

a) Calculation for each trading period by the following formula:

Where:

Rbpi: The amount of settlement for the power output quantity having their offered price higher than the price ceiling of the power plant in the trading period i (VND);

j: The j^th price band in the quotation of generating sets of the thermal power plant having their offered price higher than the market price ceiling and being arranged in the schedule of market power price calculation;

J: The total price bands in the quotation of the thermal power plant having their offered price higher than the market price ceiling;

Pb: The offered price corresponding to the price band j in the quotation of generating sets of the thermal power plant g in the trading period i (VND/kWh);

Pb: The highest offered price in the price bands arranged in the schedule of market power price calculation of the thermal power plant in the trading period i (VND/kWh);

Qbp: The power output quantity settled at the price Pb in the quotation of the thermal power plant mobilized in the trading period i and converted at the metering point (kWh);

Qbpi: The power output quantity having their offered price higher than the market price ceiling of the thermal power plant in the trading period i and converted at the metering point (kWh).

b) Calculation for the settlement period by the following formula:

Where:

Rbp: The amount of settlement for the power quantity having their offered price higher than the market price ceiling of the power plant in a settlement period (VND);

i: The trading period i in which the power plant is mobilized at the offered price higher than the market price ceiling;

I: The total number of trading periods in which the power plant mobilized at the offered price higher than the market price ceiling;

Rbpi: The amount of settlement for the power quantity having their offered price higher than the market price ceiling of the power plant in the trading period i (VND).

4. The amount of settlement for the incrementally generated power output quantity of the power plant in a trading period shall be determined in the order as follows:

a) Calculation for each trading period by the following formula:

Where:

Rconi: The amount of settlement for the incrementally generated power output quantity in the trading period i (VND);

g: Generating sets with increased generation of the power plant in the trading period i;

G: The total number of generating sets with increased generation of the power plant in the trading period i;

Qcon: The incrementally generated power output quantity of generating sets g in the trading period i converted at the metering point, (kWh);

Pcon: The highest offered price corresponding to the capacity band with increased generation of generating set g in the trading period i (VND/kWh). For hydropower plants, if such offered price is higher than the market price ceiling of the electricity market, the price ceiling of the electricity market shall be taken.

b) Calculation for the settlement period by the following formula:

Where:

Rcon: The amount of settlement for the incrementally generated power output quantity in a settlement period (VND);

i: The trading period i^th of a settlement period in which the power plant must have additional generation in accordance with the dispatch order;

I: The total number of trading periods of a settlement period in which the power plant must have additional generation in accordance with the dispatch order;

Rconi: The amount of settlement for the incrementally generated power output quantity in the trading period i (VND).

5. In cases where a hydropower plant is mobilized for generation due to constrained conditions with their offered price higher than the market price ceiling or their capacity is mobilized with the price band higher than the market price ceiling, the plant shall be settled for the corresponding generated power output in this period at the market price ceiling.

6. The amount of settlement for the difference in the power output quantity compared with the output quantity mobilized by the dispatch order of the power plant in a trading period (VND).

a) Calculation for each trading period by the following formula:

- In cases where the generated power output quantity increases compared with the dispatch order:

Where:

Rdui: The amount of settlement for the difference in the power output quantity compared with the dispatch order in trading period i (VND);

g: Generating sets with increased generation compared with the dispatch order of the power plant in the trading period i;

G: The total number of generating sets with increased generation compared with the dispatch order of the power plant in the trading period i;

Qdu: The incrementally generated power output quantity compared with the dispatch order of generating sets g in the trading period i (kWh);

Pbmini: The lowest offered price of all generating sets in the trading period i (VND/kWh)

- In cases where the generated power output quantity decreases compared with the dispatch order:

Where:

Rdui: The amount of settlement for the difference in the power output quantity compared with the dispatch order in the trading period i (VND);

g: Generating sets with decreased generation compared with the dispatch order of the power plant in the trading period i;

G: The total number of generating sets with decreased generation compared with the dispatch order of the power plant in trading period i;

Qdu: The decrementally generated power output compared with the dispatch order of generating sets g in the trading period i (kWh);

SMPi: The market power price in the trading period i (VND/kWh);

Pbpi,max: The power price of the most expensive generating set settled in the trading period i (VND/kWh).

b) Calculation for the settlement period by the following formula:

Where:

Rdu: The amount of settlement for the difference in the power output quantity compared with the output quantity mobilized by the dispatch order in a settlement period (VND);

i: The i^th trading period of the settlement period in which the thermal power plant has generated with different amount compared with the dispatch order;

I: The total number of trading periods of the settlement period in which the thermal power plant has generated with different amount compared with the dispatch order;

Rdu(i): The amount of settlement for the difference in the power output quantity compared with the output quantity mobilized by the dispatch order in the trading period i (VND).

Article 89. The amount of settlement at the CAN

The power system and market operating unit shall be responsible for calculating the amount of settlement for the market capacity for the power plant in a settlement period in the order as follows:

1. Calculation for each trading period by the following formula:

Rcan (i) = CAN (i) x Qmq (i)

Where:

Rcan(i): The amount of settlement for the capacity for the power plant in the trading period i (VND);

CAN(i): The CAN in the trading period i (VND/kWh);

Qmq(i): The metered power output quantity of the power plant in the trading period i (kWh).

2. Calculation for settlement period by the following formula:

Where:

Rcan: The amount of settlement for the capacity for the power plant in the settlement period (VND);

i: The i^th trading period in the settlement period;

I: The total number of trading periods in the settlement period;

Rcani: The amount of settlement for the power plant in the trading period i (VND).

Article 90.  The amount of settlement for difference in power purchase agreement

Based on the market power price and CAN which are published by the power system and market operating unit, the generating unit shall be responsible for calculating the settlement in accordance with the power purchase agreement and sending to the electricity buyer in accordance with provisions in Article 104 of this Circular in the settlement period in the order as follows:

1. Calculation for each trading period by the following formula:

Rc (i) = [Pc - FMP(i)] xQc(i)

Where:

Rc(i): The amount of settlement for difference in the trading period i (VND);

Qc(i): The contractual output quantity in the trading period i (kWh);

Pc: The price of electricity under the power purchase agreement (VND/kWh);

FMP(i): The full market price for generating units in the trading period i (VND/kWh).

2. Calculation for settlement period by the following formula:

Where:

Rc: The amount of settlement for difference in the settlement period (VND);

i: The i^th trading period of the settlement period;

I: The total number of trading periods of the settlement period;

Rc(i): The amount of settlement for difference in the trading period i (VND).

Section 2. SETTLEMENT OF ELECTRICAL POWER APPLICABLE TO ELECTRICITY BUYERS

Article 91. Calculation for the expense to purchase electricity at the spot electricity market price of electricity wholesale buyers in a trading period

1. The upstream-delivered output quantity of the electricity wholesale buyer l in the trading period i shall be determined in accordance with provisions in Clause 2, Article 76 of this Circular. 

2. The power output quantity purchased at the market price of the electricity wholesale buyers in a trading period shall be determined as follows:

a) The power system and market operating unit shall be responsible for calculating and announcing the purchasing rate from the spot electricity market of the corresponding electricity wholesale buyers of the power plants having the power purchase agreement with the Viet Nam Electricity and such purchasing rate shall be allocated to the electricity wholesale buyers as follows:

Where:

X_l: The proportion of electrical power purchased from the spot electricity market of the electricity wholesale buyer l from the appointed power plants;

Q_c(g,M): The contractual output quantity in the month M of the power plant g which is calculated in accordance with provisions in Article 27 of this Circular (kWh);

Q_ptdk(l,M): The expected upstream-delivered power output quantity in the month M provided by the electricity wholesale buyer l for the preparation of the operational plan of the year ahead (kWh);

G: The total number of power plants having power purchase agreements with the Viet Nam Electricity and being allocated to the electricity wholesale buyers;

L: The total number of electricity wholesale buyers.

b) The power output quantity purchased at the market price from the appointed power plants of the electricity wholesale buyers in the trading period i shall be determined by the following formula:

Q_m1(l,i) = X₁ x Q(l,i)

Where:

Q_m1(l,i): The power output quantity purchased at the market price from appointed power plants of the electricity wholesale buyer l in the trading period i (kWh);

X_l: The proportion of electrical power purchases at the spot electricity market price of the electricity wholesale buyer l from appointed power plants which is calculated and announced by the power system and market operating unit in accordance with provisions at Point a of this Clause;

Q(l,i): The upstream-delivered power output quantity of the electricity wholesale buyer l in the trading period i, which is determined in accordance with provisions in Clause 1 of this Article (kWh).

c) The power output quantity purchased at the market price of the electricity wholesale buyer l in the trading period i from the power plant g directly signing the power purchase agreement shall be determined by the following formula:

Qm₂(l,g,i) = X₂(g,i) x Q(l,i)

Where:

Q_m2(l,g,i): The power output quantity purchased at the market price of the electricity wholesale buyer l in the trading period i from the power plants g directly signing the power purchase agreement (kWh);

Q(l,i): The upstream-delivered output quantity of the electricity wholesale buyer l in the trading period i, which is determined in accordance with provisions in Clause 1 of this Article (kWh);

X₂(g,i): The proportion of power output quantity shall be calculated by the following formula:

Where:

Q_mq(g,i): The power output quantity delivered at the delivery point in the trading period i directly participating in the electricity market of the power plant g which signs the power purchase agreement directly with the electricity wholesale buyer (kWh);

Q(l,i): The upstream-delivered power output quantity of the electricity wholesale buyer l in the trading period i, which is determined in accordance with provisions in Clause 1 of this Article (kWh);

L: The total number of electricity wholesale buyers;

k(i): The conversion coefficient based on the electrical power losses in the trading period i, which is determined in accordance with provisions in Clause 1 of Article 82 of this Circular.

d) The total power output quantity purchased from the spot electricity market of the electricity wholesale buyer in a trading period shall be determined by the following formula:

Where:

Q_m(l,i): The total power output quantity purchased from the spot electricity market of the electricity wholesale buyer l in the trading period i (kWh);

Q_m1(1,i): Th power output quantity purchased at the market price from appointed power plants of the electricity wholesale buyer l in the trading period i (kWh);

Q_m2(1,g,i): The power output quantity purchased at the market price of the electricity wholesale buyer l in the trading period i from the power plants g directly signing the contract (kWh);

G: The total number of power plants signing the power purchase agreement with the electricity wholesale buyer.

3. Calculation for the cost of electric power purchased at the spot electricity market price of the electricity wholesale buyer in the trading period i shall be determined as follows:

a) The cost of electric power purchased at the spot electricity market price of the electricity wholesale buyer in the trading period i from appointed power plants shall be determined by the following formula:

C_m1(l,i) = CFMP(i) x Q_m1(l,i)

Where:

C_m1(l,i): The cost of electric power purchased at the spot electricity market price of the electricity wholesale buyer in the trading period i from contract appointed the power plants (VND);

CFMP(i): The FMP applicable to the electricity wholesale buyer in the trading period i (VND/kWh);

Q_m1(l,i): The power output quantity purchased at the market price of the electricity wholesale buyer l in the trading period i from the power plants appointed  contract which is calculated in accordance with provisions at Point b, Clause 2 of this Article (kWh).

 b) The cost of electric power purchased at the spot electricity market price of the electricity wholesale buyer in the trading period i from the power plant g which has the power purchase agreement with the electricity wholesale buyer shall be determined by the following formula:

C_m2(l,g,i) = CFMP(i) x Q_m2(l,g,i)

Where:

g: The power plants having the power purchase agreement with the electricity wholesale buyer;

C_m2(l,g,i): The cost of electric power purchased at the spot electricity market price of the electricity wholesale buyer in the trading period i for the power plant g (VND);

CFMP(i): The FMP applicable to the electricity wholesale buyer in the trading period i (VND/kWh);

Q_m2(l,g,i): The power output quantity purchased at the market price of the electricity wholesale buyer l in the trading period i from the power plant g which is calculated in accordance with provisions at Point c, Clause 2 of this Article (kWh).

c) The total expense for purchasing electricity from the spot electricity market of the electricity wholesale buyer in a trading period shall be determined by the following formula:

Where:

 C_m(l,i): The total expense for purchasing electricity from the spot electricity market of the electricity wholesale buyer l in the trading period i (VND);

C_m1(l,i): The expense for purchasing electricity from the spot electricity market of the electricity wholesale buyer in the trading period i from appointed power plants (VND);

g: The power plant having the power purchase agreement with the electricity wholesale buyer;

G: The total number of power plants having the power purchase agreement with the electricity wholesale buyer;

C_m2(l,g,i): The expense for purchasing electricity from the spot electricity market of the electricity wholesale buyer in the trading period i from the power plant g (VND).

Article 92. Calculation for the expense to purchase electricity in the spot electricity market of electricity wholesale buyers in a trading period

The expense for purchasing electricity in the spot electricity market of the electricity wholesale buyer in a settlement period shall be determined as follows:

1. The expense for purchasing electricity in the spot electricity market of the electricity wholesale buyer l in the settlement period M from the appointed power plants shall be determined by the following formula:

Where:

i: The i^th trading period in the settlement period;

I: The total number of trading periods of the settlement period;

TC_m1(l,M): The expense for purchasing electricity in the spot electricity market of the electricity wholesale buyer l in the settlement period M from the appointed power plants (VND);

C_m1(l,i): The expense for purchasing electricity in the spot electricity market of the electricity wholesale buyer l in the trading period i from the appointed power plants, which is specified at Point a, Clause 3, Article 91 of this Circular (VND).

2. The expense for purchasing electricity in the spot electricity market of the electricity wholesale buyer in the settlement period for the power plant g which has the power purchase agreement with the electricity wholesale buyer shall be determined by the following formula:

Where:

i: The i^th trading period in the settlement period;

I: The total number of trading periods of the settlement period;

g: The power plant having the power purchase agreement with the electricity wholesale buyer;

TC_m2(l,g,M): The expense for purchasing electricity in the spot electricity market of the electricity wholesale buyer l in the settlement period M from the power plant g which has the power purchase agreement with the electricity wholesale buyer (VND);

C_m2 (l,g,i): The total expense for purchasing electricity in the spot electricity market of the electricity wholesale buyer l in the trading period i from the power plant g which has the power purchase agreement with the electricity wholesale buyer (VND);

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

Where:

g: The power plant having the power purchase agreement with the electricity wholesale buyer;

i: The trading period i^th in the settlement period;

I: The total number of trading periods of the settlement period;

L: The total number of electricity wholesale buyers;

R_g(M): The total amount of settlement for the market power in the settlement period M of the power plant g according to the monthly electricity market settlement statement issued by the power system and market operating unit which is determined in accordance with provisions in Article 88 of this Circular (VND);

(M): The total revenue determined at the CAN in the settlement period M of the power plant g according to the monthly electricity market settlement statement issued by the power system and market operating unit which is determined in accordance with provisions in Article 89 in this Circular (VND);

C_m2(l,g,i): The total expense for purchasing electricity in the spot electricity market of the electricity wholesale buyer l in the trading period i from the power plant g which is specified at Point b, Clause 3, Article 91 of this Circular (VND);

Q(l, M): The total power output quantity metered upstream of the electricity wholesale buyer l in settlement period M (kWh);

Q_m2(l,g,i): The power output quantity purchased at the market price of the electricity wholesale buyer l in the trading period i from the power plant g, which is determined in accordance with provisions at Point c, Clause 2, Article 91 of this Circular (kWh).

3. The total expense for purchasing electricity of the electricity wholesale buyer in the spot electricity market in a settlement period shall be determined by the following formula:

Where:

TC(l,M): The total expense for purchasing electricity of the electricity wholesale buyer in the spot electricity market in the settlement period M (VND);

TC_m1(l,M): The expense for purchasing electricity in the spot electricity market of the electricity wholesale buyer l in the settlement period M from the appointed power plants, which is determined in Clause 1 of this Article (VND);

g: The power plant having the power purchase agreement with the electricity wholesale buyer;

G: The total number of power plants having the power purchase agreement with the electricity wholesale buyer;

TC_m2(l,g,M): The expense for purchasing electricity in the spot electricity market of the electricity wholesale buyer l in the settlement period M from the power plant g which is determined in Clause 2 of this Article (VND).

Article 93. Calculation for the difference in the settlement amount in accordance with the power purchase agreement of the electricity wholesale buyers

The electricity buyers shall be responsible for calculating the difference in the settlement amount in accordance with the power purchase agreement in a settlement period in the order as follows:

1. Calculation for each trading period by the following formula:

Rc (i) = [Pc - FMP(i)] x Qc (i)

Where:

Rc(i): The difference in the settlement amount in the trading period i (VND);

Qc(i): The contractual output quantity in the trading period i (kWh);

Pc: The power purchase agreement price (VND/kWh);

FMP_i: The full market price for generating units in the trading period i (VND/kWh).

2. Calculation for the settlement period by the following formula:

Where:

 : The difference in the settlement amount in the settlement period M (VND);

i: The i^th trading period in the settlement period;

I: The total number of trading periods of the settlement period;

Rc(i): The difference in the settlement amount in the trading period i (VND).
 

Section 3. SETTLEMENT FOR AUXILIARY SERVICES AND OTHER SETTLEMENTS
 

Article 94. Settlement for frequency control reserve services

The power system and market operating unit shall be responsible for calculating the amount of settlement for generating units providing frequency control reserve services, including:

1. For the metered power output quantity of the power plants providing frequency control services in trading periods: Calculation for settlement shall be made in accordance with provisions in Article 88 and Article 89 of this Circular.

2. The amount of settlement based on the CAN for the output quantity corresponding with the capacity used for frequency control services, to be specific:

R_đt(i) = CAN(i) x Q_đt(i)

Where:

Rđt(i): The amount of settlement based on the CAN for the output quantity corresponding with the capacity used for frequency control services in the trading period i (VND);

CAN(i): The Capacity Add-on Price applied for generating units in the trading period i (kWh);

Q_đt(i): The output quantity corresponding with the capacity used for frequency control services of generating sets in the trading period i, converted at the metering point (kWh) and shall be determined by the following formula:

Q_đt = Min {[Q_cb - Qmq], Q_đtcb}

Q_đtcb: The output quantity corresponding with the capacity used for frequency control reserve services, which is announced for the day ahead, of generating sets, converted at the metering point in the trading period i (kWh);

Q_cb: The output quantity corresponding with the capacity of generating sets announced in the schedule-setting quotation of generating sets, converted at the metering point in the trading period i (kWh);

Qmq: The metered power output quantity of the power plant in the trading period i (kWh).

Article 95. Settlement for quick start reserve services, must-run operation services to ensure the power system security, voltage regulation and black start services

Units providing quick start reserve services, must-run operation services to ensure the power system security, voltage regulation and black start services shall be settled under the auxiliary service supply contracts using the form issued by the Ministry of Industry and Trade.

Article 96. Settlement for hydropower plants with reservoirs having regulation capability of less than 02 days

Settlements for hydropower plants with reservoirs having regulation capability of less than 02 days which directly conduct transactions in electricity market shall be calculated as follows:

1. Settlements made at the electricity market price: shall be implemented in accordance with provisions in Section 1 of this Chapter.

2. The amount of settlement for power purchase contracts of difference (CfD)

a) The contractual sale-and-purchase power output quantity in a trading period of a power plant shall be calculated by the following formula:

Qc(i) = Qhc(i) x α

Where:

Qc(i): The contractual output quantity of the power plant in a trading period i (kWh);

α: The proportion of power output quantity settled at the contractual price for the hydropower plant having water-controlling reservoirs with regulation capability of less than 02 days, prescribed by the Electricity Regulatory Authority.

Qhc(i): The power output quantity adjusted in the trading period i (kWh) shall be determined as follows: 

- In cases where Qdu(i)> 0, Qhc(i) = Qm(i) - Qdu(i);

- In cases where Qdu(i) ≤ 0, Qhc(i) = Qm(i).

Qm(i): The power output quantity at the metering point in the trading period i (kWh);

Qdu(i): The power output quantity generated for difference compared with the dispatch order in the trading period i (kWh).

b) The amount of settlement made in accordance with the power purchase agreement of power plants shall be calculated based on the contractual output quantity which is prescribed at Point a of this Clause and the formula specified in Article 90 of this Circular.

Article 97. Other settlements for power plants signing agreements with the Viet Nam Electricity

1. In cases where the monthly metered power output quantity provided by the metered data managing unit in accordance with provisions in Clause 2, Article 76 of this Circular has difference compared to the total metered electrical power of all days in such month, provided by the metered data managing unit in accordance with provisions in Clause 1, Article 76 of this Circular, the amount electrical power of difference shall be settled in accordance with provisions in the power purchase agreement signed between the Viet Nam Electricity and such generating unit.

2. The thermoelectric generating sets which are forced to stop operating as prescribed at Point dd, Clause 3, Article 60 of this Circular or which must stop 01 boiler to reduce the capacity in accordance with provisions at Point b, Clause 3, Article 60 of this Circular shall be settled for the starting cost in accordance with the power purchase agreement signed between the Viet Nam Electricity and such generating unit. The power system and market operating unit shall be responsible for confirming such events for the generating sets announced by the generating unit as a basis for the electricity buyer to settle the starting cost.

3. In cases of the plants have generating sets for experimental electricity generation, the whole power plants must be separated from the electricity market during the experimental period. All the plant’s generation output quantity to the electricity gridline during the experimental period shall be settled in accordance with the power purchase agreement with the Viet Nam Electricity corresponding to the generating sets configuration and the fuel used.

4. In cases where the generating sets have an approved plan for termination of operation but still have to generate their capacity at the request of the power system and market operating unit to ensure the security of electricity system, such power plant shall be separated totally from the electricity market during the time of capacity generation at the request of the power system and market operating unit. All the generation output quantity to the electricity gridline during such period of time shall be settled in accordance with the power purchase agreement with the Viet Nam Electricity.

5. In cases where the power plants with generating sets separated from electricity gridline for independent generation at the request of the power system and market operating unit, the total power output quantity of such plants in relevant trading periods shall be settled in accordance with the power purchase agreement with the Viet Nam Electricity.

6. In cases where the power plants with generating sets separated from the national electricity system and connected to the power grid purchased from a foreign country, based on the results of calculation for power system operation in the year ahead of the power system and market operating unit, the participation in the electricity market in the year ahead and the settlement for such power plants shall be prescribed as follows:

a) Hydropower plants with reservoirs which have their regulation capability of less than 02 days and have the plan to connect to the power grid purchased from a foreign country, the whole power plants shall be separated to participate indirectly in the electricity market in the year ahead. All the generation output quantity of such power plants in the year ahead shall be settled at the price prescribed in the power purchase agreement signed with the Viet Nam Electricity;

b) Except for cases specified at Point a of this Clause, in cases where in the operational year, the power plants have generating sets connected to the power grid purchased from a foreign country, all the generation output quantity of such power plants in the trading days when the generating sets are periodically connected to the power grid purchased from a foreign country shall be settled at the price prescribed in the power purchase agreement signed with the Viet Nam Electricity.

7. In cases where the hydroelectric generating sets must generate their capacity greater than the announced capacity in the schedule-setting quotation of at the request of the power system and market operating unit for electricity system security reasons, the total generation output quantity of such power plants to the electricity gridline during such period of time shall be settled in the power purchase agreement signed with the Viet Nam Electricity.

8. In cases where the power plants have generating sets participating in testing the AGC system at the request of the power system and market operating unit, the whole power plants shall be separated from the electricity market, all the generation output quantity of such plants to the electricity gridline during testing periods shall be settled in accordance with the power purchase agreement signed with the Viet Nam Electricity. Before December 1 of the year N-1, the power system and market operating unit shall be responsible for preparing and publishing a list of generating sets expected to participate in testing the AGC system in year N for the electricity market participants.

Article 98. Other settlements for power plants directly signing contracts with electricity wholesale buyers

1. Other settlements for power plants directly signing contracts with electricity wholesale buyers shall include:

a) The amount of difference in the output quantity between the monthly metered power output quantity provided by the metered data managing unit in accordance with provisions in Clause 2, Article 76 of this Circular and the total power output quantity in trading periods of the month provided by the metered data managing unit in accordance with provisions in Clause 1, Article 76 of this Circular – shall be settled in accordance with the power purchase agreement signed between the electricity wholesale buyers and generating units;

b) Thermal-electric generating sets that are forced to stop generating electricity in accordance with provisions at Point dd, Clause 3, Article 60 of this Circular or to stop 01 boiler to reduce the capacity in accordance with provisions at Point b, Clause 3, Article 60 of this Circular shall be settled for the starting cost in accordance with the power purchase agreement between the electricity wholesale buyers and generating units. The power system and market operating unit shall be responsible for confirming such events for the generating sets announced by the generating units as a basis for the electricity buyers to settle the starting cost;

c)  In cases of the power plant has generating sets for experimental electricity generation, the whole power plant must be separated from the electricity market during the experimental period. All the plant’s generation output quantity to the electricity gridline during the experimental period shall be settled in accordance with the power purchase agreement with the electricity wholesale buyer corresponding to the generating sets configuration and the fuel used;

d) In cases where the power plants have generating sets participating in testing the AGC system at the request of the power system and market operating unit, the whole power plants shall be separated from the electricity market, all the generation output quantity of such plants to the electricity gridline during testing periods shall be settled in accordance with the power purchase agreement signed with the electricity wholesale buyers. Before December 01 of the year N-1, the power system and market operating unit shall be responsible for preparing and publishing a list of generating sets expected to participate in testing the AGC system in year N for the electricity market participants;

e) Taxes and fees involved in the settlement for power plants which have direct contracts with electricity wholesale buyers in the settlement period M (water resource tax, forest environment fee, environmental protection fee for industrial wastewater, land rent, other taxes and fees if any).

2. Other settlement amount specified in Clause 1 of this Article shall be allocated for electricity wholesale buyers in accordance with the proportion of power output quantity delivered in the settlement period, announced by the power system and market operating unit and shall be determined by the following formula:

Where:

L: The total number of electricity wholesale buyers;

R_kh(l,g,M): Other settlement amount allocated for the electricity wholesale buyer 1from the power plant g directly signing the power purchase agreement in the settlement period M which is agreed upon in the power purchase agreement signed by both sides (VND);

R_kh(g,M): The total amount of other settlement prescribed in Clause 1 of this Articles of the power plant g directly signing the power purchase agreement with the electricity wholesale buyer in the settlement period M (VND);

Q(l,M): The power output quantity delivered of the electricity wholesale buyer l in the settlement period M (kWh).

Article 99. Settlement for electricity market interference

In cases where there arise cases of electricity market interference as prescribed in Article 64 of this Circular, the electricity buyers shall be responsible for conducting settlement for the generating units that have direct contracts as agreed in the power purchase agreement. The power system and market operating unit shall be responsible for confirming relevant events so that the generating units have the basis to complete the settlement dossier and send such dossier to the electricity buyers.

Article 100. Settlement for electricity market suspension

During the time of suspending the electricity market, the electricity buyers shall be responsible for making settlement for the generating units that have direct contracts as agreed in the power purchase contracts. The power system and market operating unit shall be responsible for confirming relevant events so that the generating units have the basis to complete the settlement dossier and send such dossier to the electricity buyers.

Section 4.

ORDER AND PROCEDURES FOR SETTLEMENT
 

Article 101. Data for calculation and settlement on the electricity market

1. Before 9:00 of day D+2, the power system and market operating unit shall be responsible for aggregating and providing electricity buyers and generating units with data for the calculation and settlement for each power plant.

2. Before 16:00 of day D+2, the power system and market operating unit shall be responsible for aggregating and providing electricity buyers data for the calculation and settlement.

Article 102. Electricity market settlement statements for a trading day

1. Before 16:00 of day D+4, the power system and market operating unit shall be responsible for preparing and sending the generating units the preliminary electricity market settlement statement of the trading day D via the Electricity Market Website using the form prescribed in Appendix 3 to this Circular.

2. Before 16:00 of day D+5, the power system and market operating unit shall prepare and send the electricity buyers the spot electricity market settlement statement of the day D via the Electricity Market Website using the form prescribed in Appendix 3 to this Circular.

3. Before 12:00 of day D+6, the generating units directly conducting transactions and the electricity buyers shall be responsible for confirming the electricity market settlement statement in accordance with law provisions on the Electricity Market Website; and informing the power system and market operating unit any errors found in the preliminary electricity market settlement statement (if any).

4.  Before 16:00 of day D+6, the power system and market operating unit shall be responsible preparing and sending the electricity buyers and generating units the complete electricity market settlement statement of the day D via the Electricity Market Website using the form prescribed in Appendix 3 to this Circular. The generating units shall be responsible for issuing daily settlement statements and keeping them in archives for settlement for the settlement period.

Article 103. Electricity market settlement statement for a settlement period

1. The power system and market operating unit shall be responsible for aggregating data for the settlement for trading days in the settlement period and verifying, comparing with the summary record of power output quantity provided by metered power data managing units.

2. Within 10 working days from the last trading day of the settlement period, the power system and market operating unit shall be responsible for announcing:

a) The record on concluding the difference in the output quantity between the total output quantity of each trading period and the fixed output quantity for the settlement period;

b) The total upstream-delivered power output quantity of each electricity wholesale buyer and the proportion of the upstream-delivered power output quantity of electricity wholesale buyers calculated in accordance with provisions in Clause 2, Article 98 of this Circular.

 3. Within 13 working days from the last trading day of the settlement period, the power system and market operating unit shall be responsible for preparing and issuing an electricity market settlement statement of such settlement period for electricity buyers and generating units.

4. The electricity market settlement statement for a settlement period shall include the summary table using the form prescribed in Appendix 4 to this Circular and the written confirmation of the meter readings and power output quantity.

5. The method of confirming settlement statements and electricity market events: The generating units shall directly conduct transactions, the electricity buyers and the power system and market operating unit shall be responsible for using the digital signature for the verification and issuance of electricity market settlement statements and verification of electricity market events. In cases where there is a problem in the digital signature, the electricity buyers and the power system and market operating unit shall be responsible for confirming and issuing electricity market settlement statements and confirming electricity market events directly and reconfirming after the problem has been fixed.

Article 104. The settlement dossier

1. The generating units directly conducting transactions shall prepare and send electricity market settlement documents for the electricity buyers based on the electricity market settlement statement for the settlement period.

2. The generating units shall prepare and send contract settlement documents to the electricity buyers in accordance with provisions in the power purchase agreement signed between such electricity buyers and generating units.

3. The generating units directly conducting transactions shall prepare and send settlement invoices to the electricity buyers in accordance with provisions in the power purchase agreement.  The settlement invoices shall include the amount of settlement for the electricity market and the amount of contract settlement in the settlement period.

Article 105. The settlement dossier for auxiliary services supply contracts

The generating units shall be responsible for preparing dossiers for the settlement of auxiliary services supply contracts in accordance with provisions in such auxiliary services supply contracts.

Article 106. Modification of invoices

1. In cases where there are any errors in the invoice, the generating units or electricity buyers shall have the right to request the handling in accordance with relevant law regulations within 01 month from the issuance date. The involved parties shall be responsible for coordinating to determine and agree upon the modified amount of settlement.

2. The generating units shall responsible for supplementing the modified amount of settlement to the invoices of the settlement period ahead.

Article 107. Settlement

1. The electricity buyers shall be responsible for conducting the settlement in accordance with the invoices of the generating units, the time duration for conducting the settlement shall be in accordance with provisions in the power purchase agreement signed by both sides.

2. The generating units and electricity buyers shall be responsible for agreeing upon the method of settlement in the electricity market in accordance with provisions prescribed in this Circular and other relevant law provisions.

3. On the 20^th of each month, if the generating units have not received the electricity market settlement statement but the cause is not from the fault of the generating units, such generating units shall have the right to prepare and send a temporary dossier and settlement invoices based on the generated power output quantity and the price prescribed in the signed power purchase agreement. After the electricity market settlement statement is issued, the difference between the value of the temporary settlement and the value of settlement shall be offset in the next month.

4. In cases where the electricity buyers delay the settlement when the date of settlement is due, the interest shall be charged for the late power settlement amount at the interest rate agreed upon by the two sides in the signed power purchase agreement.

Article 108. Handling of settlement errors

In case of over-settlement or under- settlement compared to the invoices, the relevant units shall handle such errors in accordance with provisions in the signed power purchase agreement or the signed auxiliary service supply contract.

Article 109. Settlement for the power purchase agreement between the Viet Nam Electricity and electricity wholesale buyers

The settlement for the power purchase agreement between the Viet Nam Electricity and electricity wholesale buyers shall include:

1. The amount of settlement for the spot electricity market between the Viet Nam Electricity and electricity wholesale buyers for appointed power plants prescribed in Clause 1, Article 92 of this Circular.

2. The amount of settlement for the difference between the power purchase agreement between the Viet Nam Electricity with electricity wholesale buyers with appointed power plants that is calculated in accordance with provisions in Article 93 of this Circular.

3. The amount of settlement based on the wholesale electricity price of the Viet Nam Electricity for electricity wholesale buyers for the remaining upstream-delivered output quantity after subtracting the amount purchased from the spot electricity market of the electricity wholesale buyers.

4. Other amounts of settlement in accordance with provisions in the power purchase agreement.

Chapter IX

THE INFORMATION TECHNOLOGY SYSTEM FOR THE OPERATION OF THE ELECTRICITY MARKET

Article 110. Software for the operation of the electricity market

1. Software for the operation of the electricity market shall include:

a) Market simulation model;

b) Water value calculating model;

c) Software for mobilization and dispatching scheduling;

d) Software for calculation and payment;

dd) Other software for the operation of the electricity market.

2. The power system and market operating unit shall be responsible for developing and operating software for the operation of the electricity market.

Article 111. Requirements for software for the operation of the electricity market

1. Ensuring the accuracy, reliability, security and meeting the standards prescribed by the power system and market operating unit.

2. Having all technical instructions and operational procedures attached herewith.

Article 112. Development of software for the operation of the electricity market

1. The software for the operation of the electricity market must be developed to support the performance of calculations and transactions specified in this Circular and the operational procedures of the electricity market.

2. The power system and market operating unit shall be responsible for

a) Developing standards for the software for the operation of the electricity market;

b) Evaluating and examining the software’s capability of satisfying standards specified at Point a of this Clause before application;

c) Announcing the list, algorithms and procedures for the use of the software for the operation of the electricity market.

Article 113. Software auditing

1. The software for the electricity market shall be audited in the following cases:

a) Before the official operation of the electricity market;

b) Before putting the new software into use;

c) After adjusting or upgrading the software which affects the calculation;

d) Periodical audit.

2. The power system and market operating unit shall be responsible for recommending a qualified independent auditing unit to conduct the audit and report to the Electricity Regulatory Authority before the implementation.

3. The power system and market operating unit shall be responsible for announcing the audit results to the electricity market participants

Article 114. The structure of the electricity market information system

The electricity market information system shall consist of the following basic components:

1. The system of hardware and software for the management and exchange and protection of information about the electricity market.

2. The database and storage system.

3. The website portal for the electricity market, including both the intranet and the public website.

Article 115. The management and operation of the electricity market information system

1. The power system and market operating unit shall be responsible for managing and operating the electricity market information system.

2. The electricity market participants shall be responsible for investing in equipment within their scope of management to satisfy the technical requirements prescribed by the power system and market operating unit to ensure the connection with the electricity market information system.

3. The metered power data managing unit shall be responsible for developing, managing and operating the transmission network connected between the electricity market information system of the power system and market operating unit and the equipment of the electricity market participants.

4. The power system and market operating unit shall only operate or change the existing electricity market information system after completing the acceptance test and gaining the approval of the Electricity Regulatory Authority.

5. The power system and market operating unit shall be responsible equipping with backup equipment for the electricity market information system to ensure the collection, transmission and announcement of information on the electricity market in cases where the electricity market information system has problems or does not work.

6. The power system and market operating unit shall be responsible for developing and managing the information security system to ensure the safety and confidentiality of information on the electricity market.

Article 116. Provision and announcement of information on the electricity market

1. Generating units, electricity wholesale buyers, transmission network operators, electricity distributors and metered power data managing units shall be responsible for providing the power system and market operating unit with information and figures for planning the distribution of the contractual output quantity, forecasting the year-ahead load, planning the operation, scheduling the mobilization and calculating the settlement in accordance with provisions in this Circular via the website portal of the electricity market information system.

2. The power system and market operating unit shall be responsible for providing and announcing information, data and reports on the operation of the electricity market to the electricity market participants in accordance with provisions in this Circular via the website portal of the electricity market information system.

3. The extent of information access right shall be defined in accordance with the functions of units and shall be specified in the Procedure for the operational management of information technology system operating the electricity market issued by the Electricity Regulatory Authority.

4. The power system and market operating unit shall be responsible for publicly announcing on public websites the following information:

a) Information on the electricity market participants;

b) Data on the system load;

c) Statistical data of the market price;

d) Other information specified in the Procedure for the operational management of information technology system operating the electricity market and announcement of electricity market information issued by the Electricity Regulatory Authority.

Article 117. Responsibility for ensuring the accuracy of information on the electricity market

1. Members participating in electricity market must ensure the accuracy and sufficiency of the electricity market information at the time of providing such information.

2. In case of finding such information inaccurately and incompletely provided or announced, the electricity market participants shall be responsible for modifying and providing accurate information for the relevant units.

Article 118. Protection of information on the electricity market

1. The power system and market operating unit must not disclose information provided by the participants of the electricity market, including:

a) Information about power purchase agreements;

b) Quotation of the electricity generating units before the end of a trading day;

c) Other information beyond their competence.

2. The electricity market participants must not disclose information beyond their scope of competence to provide and announce information.

Article 119. Exemption cases from information protection

1. Providing information at the request of the Electricity Regulatory Authority or the competent agencies in accordance with law provisions.

2. The information which is summarized or analyzed on their own from information announced in the electricity market, not the one which is provided from other participants of electricity market at variance with Article 118 of this Circular.

Article 120. Storage of information on the electricity market information

The power system and market operating unit shall be responsible storing all activities of information exchange conducted via the electricity market information system. The time duration of storage of information shall be at least 05 years.

Chapter X

MONITORING THE OPERATION OF THE ELECTRICITY MARKET

Article 121. Responsibilities for monitoring the electricity market

1. The Electricity Regulatory Authority shall be responsible for performing regular and periodic monitoring of the operation of the electricity market through aggregating, evaluating the operation results based on data collected and actual examination at electricity market participants. The contents of monitoring the electricity market shall include:

a) The operation result of the electricity market;

b) Assessment on the compliance with regulations on the electricity market of electricity market participants.

2. Electricity market participants shall be responsible for coordinating with the Electricity Regulatory Authority in monitoring the electricity market; detecting and reporting to the Electricity Regulatory Authority on problems arising, acts with signs of violation during the operation of the electricity market.

Article 122. Announcement of information on the operation of the electricity market

The power system and market operating unit shall be responsible for periodically announcing information on the operation of the electricity market in accordance with the procedure for managing and operating the electricity market’s information system issued by the Electricity Regulatory Authority, to be specific:

1. Before 15:00 daily, publish the electricity market operation report of the day ago.

2. Before 16:00 every Tuesday, publish the electricity market operation report of the week ago.

3. Before the 20^th of each month, publish the electricity market operation report of the month ago.

4. Before January 31 each year, publish the electricity market operation report of the year ago.

Article 123. Providing data for the monitoring of the operation of the electricity market

1. Providing data for the monitoring of the operation of the electricity market

a) The power system and market operating unit shall be responsible for providing the Electricity Regulatory Authority with information and data on the operation of the electricity market, including:

- Data and calculation results of the annual, monthly, weekly electricity market operation plans;

- Statistics, and operation results of the electricity market of the day ahead, the hour ahead, the real-time and calculations of settlement;

- Other necessary information and figures as required by the Electricity Regulatory Authority to monitor the electricity market.

b) Electricity market participants shall be responsible for providing information and figures related to the operation of such unit in the electricity market at the request of the Electricity Regulatory Authority to monitor the electricity market.

2. Methods of providing data

a) The power system and market operating unit shall be responsible for providing information for the Electricity Regulatory Authority by the following methods:

- Automatic online synchronization between the Electricity market database at the power system and market operating unit with the Electricity market monitoring database at the Electricity Regulatory Authority. The list of synchronized information and data on the electricity market shall be prescribed by the Electricity Regulatory Authority;

- In cases of not applying the method of data provision specified at Point a of this Clause, the power system and market operating unit shall prepare and send files containing data of the electricity market in accordance with the format, form and the schedule prescribed by the Electricity Regulatory Authority.

b) Electricity market participants shall provide information and data in written form or data files in accordance with the prescribed format at the request of the Electricity Regulatory Authority.

3. Data quality assurance

a) The power system and market operating unit shall be responsible for ensuring the quality of data provided to the Electricity Regulatory Authority including daily, weekly reports, and the contents of the electricity market database;

b) Electricity market participants shall be responsible for ensuring the quality of data provided to the Electricity Regulatory Authority for investigation and must obtain the written accuracy verification from the data provider.

Article 124. The reporting regime on the operation of the electricity market

1. Reports on the operation of the electricity market made on a monthly basis: Before the 20^th of each month, the power system and market operating unit shall be responsible for submitting to the Electricity Regulatory Authority the report on the operation of the power system and the electricity market of the month ago using the form prescribed by the Electricity Regulatory Authority.

2. Reports on the operation of the electricity market made on an annual basis

a) Before March 01 of each year, the power system and market operating unit shall be responsible for submitting the Electricity Regulatory Authority reports on the operation of the power system and the electricity market of the year ago using the form prescribed by the Electricity Regulatory Authority.

b) Before March 01 of each year, generating units and electricity buyers shall be responsible for sending the Electricity Regulatory Authority reports on the participation in the electricity market of their unit of the year ago using the form prescribed by the Electricity Regulatory Authority.

3. Irregular reporting

a) Within 24 hours after the completion of the electricity market interference, the power system and market operating unit shall be responsible for reporting the Electricity Regulatory Authority on the electricity market interference;

b) The power system and market operating unit, generating units and electricity buyers shall be responsible for conducting irregular reports on the operation of the electricity market at the request of the Electricity Regulatory Authority.

Article 125. Audit of data and compliance on the electricity market

1. Periodical audit

Before March 31 of every year, the power system and market operating unit shall be responsible for implementing and completing the audit of data and compliance in the electricity market of the year ago. The annual auditing contents shall include:

a) Audit of data and calculation process of the power system and market operating unit in the electricity market;

b)  Data for calculation process in electricity market;

c) Steps of calculation;

d) Result of calculation;

dd) Compliance of the power system and market operating unit with the procedures specified in this Circular.

2. Irregular audit

The Electricity Regulatory Authority shall have the power to request the power system and market operating unit to organize the implementation of irregular audit in accordance with the specific contents and scope of audit in the following cases:

a) When detecting unusual signs in the operation of the electricity market;

b) Upon written request by electricity market participants with clearly-stated contents and plausible reasons to request the irregular audit.

3. The power system and market operating unit shall be responsible for recommending a qualified independent auditing unit to carry out the auditing contents of the electricity market and submitting it to the Electricity Regulatory Authority for approval.

4. The electricity market participants must coordinate during the audit of the electricity market.

5. Audit expenses

a) The power system and market operating unit shall cover the audit expenses in cases of conducting audit specified in Clause 1 and Point a, Clause 2 of this Article;

b) The unit requesting audit shall cover the audit expenses in cases of conducting audit specified at Point b, Clause 2 of this Article.

6. Within 10 days from the date on which the audit report sent by the auditing unit is received, the power system and market operating unit shall be responsible for sending the audit report to the Electricity Regulatory Authority and relevant units.

Chapter XI

SETTLEMENT OF DISPUTES AND VIOLATIONS
 

Article 126. Settlement of disputes in the electricity market

Disputes arising in the electricity market shall be settled in accordance with the Regulation on order and procedure for the settlement of disputes in the electricity market issued by the Ministry of Industry and Trade.

 Article 127. Detection and report of violations

1. Any acts of violation in the electricity market detected must be reported to the Electricity Regulatory Authority in writing.

2. The contents of the report on act of violations shall include:

a) Date of the report;

b) Name, address of the reporting organization or individual;

c) Name, address of organization or individual committing acts with violating signs;

d) Description of the acts with violating signs;

dd) Time and location of occurring the acts with violating signs;

e) Reasons for detecting the acts with violating signs (if any).

Article 128. Verification of acts of violations

1. Within 05 days from the date on which the case concerning an act with violating signs is received, the Electricity Regulatory Authority shall be responsible for handling the case. In case of not handling the case, the Electricity Regulatory Authority must send a written notification to the reporting organization or individual.

2. During handling the case, the Electricity Regulatory Authority shall be responsible for verifying the act with violating signs. During the verification process, the Electricity Regulatory Authority shall have the following powers:

a) Requiring the unit with violating signs and relevant units to provide information and documents which are needed for the verification;

b) Requiring the unit with violating signs to provide explanation;

c) Soliciting an expert assessment and gathering opinions from specialist or relevant agencies or units;

d) Convening the unit with violating signs and the units affected due to such violating act for opinions about the way to handle and remedy such violating act.

3. During the verification process, the Electricity Regulatory Authority shall be responsible for ensuring the confidentiality of the information and materials provided in accordance with the regulations on information security specified in this Circular and other law regulations related to the confidentiality of the information.

Article 129. Making records of administrative violation

1. Within 60 working days from the date of conducting verification, the Electricity Regulatory Authority shall be responsible for concluding the verification and making records of the administrative violation for the act of violating regulations on operating the electricity market. If the case involves several complicated details, the time duration for verification may be extended but must not exceed 30 working days from the expired date of verification.

2. Records of administrative violations shall be set up in accordance with regulations on imposing sanctions on administrative violations in the field of electricity.

3. If the result of the verification indicates that the reported act does not violate any regulations on operating the electricity market, the Electricity Regulatory Authority shall terminate its verification work and notify the reporting organization or individual as well as the organization or individual subject to the verification.

Article 130. Handlings of violations

1. The violating unit must be subject to one of the forms and degrees of sanction against each act of violation in accordance with regulations of the Government’s Decree No. 134/2013/ND-CP dated October 17, 2013 promulgating the sanction of administrative violations in the field of electricity, safety of hydroelectric dams, thrifty and effective use of energy (hereinafter referred to as the Decree No. 134/2013/ND-CP).

2. Apart from being subject to a sanction against the act of administrative violation in accordance with regulations of the Decree No. 134/2013/ND-CP, the generating unit that owns the power plant with acts of administrative violation in the field of electricity shall be subject to suspension of participation in the electricity market, to be specific:

a) Power plants shall be suspended from participating in the electricity market when committing one of the following acts of violation:

- Failing to provide information or providing incorrect information for the planning of operating the electricity market and the schedule of mobilizing generating sets in the power system;

- Failing to provide information or providing incorrect information for the settlement of disputes and handling of violations in the competitive electricity market in accordance with law regulations;

- Making direct or indirect agreements with other units in restricting or controlling the capacity offered for sale in the market in order to increase the spot electricity market price and to exert impacts on the power supply security;

- Making agreements with other generating units in price offering in order to formulate the schedule of mobilization;

- Making agreements with the power system and market operating unit in price offering in order to formulate the schedule of mobilization at variance with law provisions;

- Committing other acts of violation causing serious consequences for the power supply security or for the finance of other units in the electricity market.

b) During the time when such power plants are suspended from participating in the electricity market:

- Power plants shall not be eligible for price offering in the electricity market, but must comply with other regulations applicable to power plants not participating in the electricity market;

- The power system and market operating unit shall be responsible for scheduling and announcing the capacity mobilization chart for power plants suspended from participating in the electricity market in accordance with provisions at Point a, Point b, and Point c, Clause 1, Article 11 of this Circular.

3. Power plants suspended from participating in the electricity market shall be allowed to restore their participation in the electricity market after fulfilling obligations specified in the Decision on suspension of participation in the electricity market. The generating units that own such power plants shall be responsible for submitting documents proving the fulfillment of obligations specified in the Decision on suspension of participation in the electricity market to the Electricity Regulatory Authority for considering the restoration of participation in the electricity market for the power plants.

Chapter XII

IMPLEMENTATION

Article 131. Responsibilities of the Electricity Regulatory Authority

1. Disseminating, inspecting and monitoring the implementation of this Circular.

2. Issuing the procedures guiding the implementation of this Circular.

3. Issuing or submitting to Ministry's leaders to issue documents guiding the implementation of transforming from the competitive electricity generation market to the competitive wholesale electricity market, the implementation of the form of the power purchase agreement for power purchase agreements having been signed or being in the negotiation process before the date on which this Circular takes effect.

4. Issuing or submitting to the Ministry's leaders to issue documents providing guidance on newly emerging contents, problems arising in implementation, instructions on the participation in the electricity market of renewable energy sources apart from hydroelectricity.

Article 132. Responsibilities of the Viet Nam Electricity

1. Within 30 days from the date of issuing this Circular, directing the power system and market operating unit and relevant units to develop and report to the Electricity Regulatory Authority to issue procedures on guiding the implementation of the following contents:

a) Developing operation plans of the electricity market;

b) Developing plans on mobilization and real-time operation;

c) Calculation for settlement in the electricity market

d) Management and operation of the information technology system in operating the electricity market;

dd) Coordination in comparison and review of settlement figures between the power system and the market operating unit, generating units and electricity buyers.

2. Investing, developing, installing and upgrading the Electricity market information system and software for the electricity market in accordance with requirements specified in this Circular.

3. Examining and certifying positions participating in the operation of the electricity market for the National Load Dispatch Center meeting the requirements of operating the competitive wholesale electricity market in accordance with relevant law regulations.

Article 133. Responsibilities of relevant units

1. Electricity market participants shall be responsible for improving the information equipment in line with the Electricity market information system prescribed in this Circular.

2. Generating units participating in the electricity market shall be responsible for signing power purchase agreements for the electricity market in accordance with the form issued by the Ministry of Industry and Trade.

3. The power system and market operating unit shall be responsible for guiding participants of the electricity market on the order and procedures for registration for participation in the electricity market as prescribed in this Circular and upgrading the Electricity Market Website so that generating units can submit the application dossier for participation in the electricity market online.

Article 134. Amending, supplementing a number of articles of the Circular No. 56/2014/TT-BCT dated December 19, 2014 of the Ministry of Industry and Trade on the method of determination of electricity generation costs and procedures for inspection of power purchase agreements as follows:     1. To amend Clause 10, Article 2 as follows:

“10. The buyers shall be the Viet Nam Electricity, the Northern Power Corporation, the Central Power Corporation, the Southern Power Corporation, Hanoi Power Corporation, Ho Chi Minh City Power Corporation. "

2. To amend Article 19 as follows:

“Article 19. Applying the form of the power purchase agreement

1. To amend and supplement the form of the power purchase agreement for generating units and electricity buyers as specified in Appendix 3 to this Circular.

2. Generating units and electricity buyers shall be responsible for conducting negotiations and signing agreements in accordance with the form of the power purchase agreement specified in Appendix 3 to this Circular. The Buyer shall be responsible for submitting the power purchase agreement to the Electricity Regulatory Authority in accordance with the procedures specified in Article 23 and Article 26 of this Circular”.

Article 135. Effect

1. This Circular shall take effect from January 01, 2019.

2. To annul the Circular No. 27/2009/TT-BCT dated September 25, 2009 of the Minister of Industry and Trade prescribing regulations on metering electrical power in the competitive power generation market.

3. To annul the Circular No. 18/2012/TT-BCT dated June 29, 2012 of the Minister of Industry and Trade prescribing regulations on the supervision of the competitive power generation market.

4. To annul the Circular No. 28/2018/TT-BCT dated September 27, 2018 of the Minister of Industry and Trade prescribing regulations on the operation of the competitive power generation market.

5. Any problem arising during the implementation of this Circular should be promptly reported to the Ministry of Industry and Trade for appropriate amendment or supplement./.