Electricity Law, No. 61/2024/QH15

LAW

ON ELECTRICITY^[1]

Pursuant to the Constitution of the Socialist Republic of Vietnam;

The National Assembly promulgates the Law on Electricity.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

This Law provides electricity development planning, investment in formulation of electricity projects; development of renewable energy electricity and new energy electricity; electricity activity license; the competitive electricity market, electricity trading activities; load dispatch and operation of the national electricity system; protection of electricity works and safety in the field of electricity; responsibilities, rights and obligations of agencies, organizations and individuals in electricity activities and electricity use; and the state management of electricity.

Article 2. Subjects of application

This Law applies to agencies, organizations and individuals that carry out electricity activities, use electricity or are engaged in other electricity-related activities in Vietnam.

Article 3. Application of law

1. In case there are different provisions on the same relevant specific issue between the Law on Electricity and other laws promulgated before the effective date of the Law on Electricity, the provisions of the Law on Electricity shall prevail; such issues include:

a/ Competence to approve investment policy for the electricity projects specified in Clauses 2, 3 and 4, Article 13 of this Law;

b/ Special provisions on investment in the formulation of emergency electricity projects and works of Article 15 of this Law;

c/ Selection of investors for electricity business investment projects specified in Articles 18 and 19 of this Law;

d/ Provisions on offshore wind power development of Section 2, Chapter III of this Law.

2. In case another law promulgated after the effective date of the Law on Electricity needs to have special provisions on investment different from the provisions of the Law on Electricity, it is required to specifically determine the provisions to be implemented or not to be implemented in accordance with the Law on Electricity and those to be implemented in accordance with such another law.

Article 4. Interpretation of terms

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

1. Safety of hydropower works means solutions to prevent and control impacts of dangerous factors in order to prevent adverse impacts and ensure the safety for dams, reservoirs, energy chains, hydropower plants and auxiliary works in the course of survey, designing, construction, management, exploitation and operation of hydropower works.

2. Electrical safety means solutions to prevent and control impacts of dangerous factors in order to prevent adverse impacts and ensure safety for humans, equipment and works in the course of electricity generation, transmission, distribution and use.

3. Electricity wholesale means the sale of electricity by one electricity unit to another for resale to a third party.

4. Electricity retail means the sale of electricity by electricity units to electricity users.

5. Avoidable cost tariff means prices calculated based on avoidable costs of the national electricity system when 1 kilowatt-hour (kWh) of a small renewable energy power plant is generated and fed into the national grid.

6. Electricity price cross-subsidy means a mechanism for setting electricity retail prices for each group of electricity users for uniform application of the retail electricity tariff.

7. Rated voltage means one of the values of nominal voltage used in the electricity system; rated voltages include:

a/ Low voltage, which is the nominal voltage of up to 1 kV;

b/ Medium voltage, which is the nominal voltage of between over 1 kV and 35 kV;

c/ High voltage, which is the nominal voltage of between over 35 kV and 220 kV;

d/ Ultra-high voltage, which is the nominal voltage of over 220 kV.

8. Avoidable cost means cost for the generation of 1 kWh of electricity by generating sets with the highest cost in the national electricity system, which is avoidable if the electricity buyer buys 1 kWh from a substitute small renewable energy power plant.

9. Electricity works means a combination of means, machinery, equipment and construction structures that directly serve electricity generation, transmission and distribution, load dispatch of the electricity system, administration of electricity market transactions, electricity trading, and protection systems of electricity works.

10. Retail electricity tariff structure means a list of percentages (%) of the average electricity retail price for calculating the specific electricity retail price for each group of electricity users.

11. Ancillary services means technical services necessary to maintain the stable and reliable operation of the national electricity system, including frequency adjustment, fast start, must-run operation, voltage adjustment, and black start, and other related technical services as specified by the Minister of Industry and Trade.

12. Electricity project means an investment project as defined by law, consisting of proposals on the use of capital to carry out activities of investing in, constructing, renovating and commercially operating electricity works in a specific locality or area and within a specified period of time. Power source project means an investment project on the construction of power plants and power grids synchronously connected to the national electricity system (if any).

13. New energy electricity means electricity generated from one or several of the following sources:

a/ Hydrogen produced from the power sources specified at Points a, b, c and d, Clause 14 of this Article (below referred to as green hydrogen);

b/ Ammonia produced from the power sources specified at Points a, b, c and d, Clause 14 of this Article (below referred to as green ammonia);

c/ Other forms of new energy as specified by law.

14. Renewable energy electricity means electricity generated from one or several of the following primary energy sources:

a/ Solar energy;

b/ Wind energy;

c/ Ocean energy, including tides, sea waves and ocean currents;

d/ Geothermal energy;

dd/ Energy from hydraulic power, including also hydropower;

e/ Biomass energy, including biofuels and forms of plant-based energy;

g/ Energy generated from wastes from production, business and daily-life activities, except wastes from production and business processes using fossil fuels and wastes determined to be hazardous in accordance with the law on environmental protection;

h/ Other forms of renewable energy as specified by law.

15. Self-generated, self-consumed electricity means electricity generated and consumed by organizations and individuals to mainly serve their own needs.

16. Electricity system load dispatch means commanding and controlling the process of electricity generation, transmission and distribution in the national electricity system according to determined processes, technical regulations and operation methods.

17. Electricity market transaction administration means management and coordination of electricity trading transactions and ancillary services on the competitive electricity market.

18. Electricity regulation means the State’s exertion of impacts on electricity activities and the competitive electricity market in order to ensure safe, stable and quality electricity supply, economical and efficient electricity use, and guarantee fairness, transparency and compliance with law.

19. Electricity unit means an organization or individual engaged in electricity generation, transmission and distribution, electricity system load dispatch and operation, electricity market transaction administration, electricity wholesale, electricity retail or other related activities.

20. Average electricity retail price means an electricity retail price determined on the principle of calculating the total cost of electricity generation and trading and the average profit level per kWh of commercial electricity in each period.

21. Electricity wholesale price means an electricity selling price applied by one electricity unit to another for resale to a third party.

22. Electricity retail price means an electricity selling price applied by an electricity unit to electricity users.

23. Electricity prices and electricity service prices means electricity wholesale prices, electricity retail prices, and prices of electricity generation services, electricity transmission services, electricity system ancillary services, electricity system operation dispatch services, electricity market transaction administration services, and electricity distribution services.

24. Electricity system ancillary service price means a price applied by an electricity generating unit to provide electricity system ancillary services.

25. Electricity generation service price means an electricity selling price applied by an electricity generating unit to electricity buyers.

26. Electricity system operation dispatch service price means a price applied by an electricity system load dispatch unit to perform tasks related to electricity system load dispatch and operation.

27. Electricity market transaction administration service price means a price applied by an electricity market transaction administration unit to perform tasks related to the administration of competitive electricity market transactions.

28. Electricity distribution service price means a price applied by an electricity distribution unit to carry out electricity distribution activities.

29. Electricity transmission service price means a price applied by an electricity transmission unit to carry out electricity transmission activities.

30. National electricity system means a system of electricity generation equipment, electricity grids and auxiliary equipment that are interconnected and uniformly commanded nationwide.

31. Electricity storage system means a set of equipment for receiving electricity from power sources, storing energy and generating electricity.

32. Electricity activities means activities carried out by agencies, organizations and individuals in the fields of electricity planning, electricity development investment, electricity generation, electricity transmission, electricity distribution, electricity system load dispatch and operation, competitive electricity market transaction administration, electricity wholesale, electricity retail or other related activities.

33. Electricity forward contract means a written agreement between related parties on the purchase or sale of an electricity output at a specific time in the future at an agreed price.

34. Power purchase agreement means a written agreement between an electricity buyer and an electricity seller applicable to electricity purchase and sale.

35. Power purchase or sale option contract means a written agreement between related parties, whereby the option buyer has the right to buy or sell an electricity output at a specific time in the future at a predetermined contracted price and has to pay a certain amount of money to buy this option.

36. Power futures contract means an electricity forward contract that has its main contents standardized in accordance with this Law and is listed on a centralized exchange in the forward electricity market.

37. Electricity user means an agency, organization or individual that buys electricity for use and not for resale to other agencies, organizations or individuals.

38. Major electricity user means an electricity user with a large electricity consumption capacity and output as specified by the Minister of Industry and Trade to suit each period of development of the electricity system.

39. Electricity price bracket means the range between the minimum price and the maximum price.

40. Electricity wholesale price bracket means the range between the minimum electricity wholesale price and the maximum electricity wholesale price.

41. Electricity generation price bracket means the average electricity generation price bracket in the life cycle of a power plant project and has a range between the minimum average price and the maximum average price.

42. Technical safety inspection of electrical equipment and tools means technical activities according to a certain process in order to assess and certify the conformity of electrical equipment and tools with relevant standards and technical regulations on electrical safety before they are put into use and during their use and operation.

43. Power grid means a system of overhead electricity transmission lines or underground electricity cables, transformers and auxiliary equipment for electricity transmission, including transmission grids and distribution grids.

44. Power plant means a combination of one or several equipment, machinery and work(s) for electricity generation.

45. Small renewable energy power plant means a renewable energy power plant with a capacity determined by the Ministry of Industry and Trade for each period.

46. Minimum electricity output under a long-term contract means the lowest electricity output specified in a power purchase agreement, electricity forward contract, power purchase or sale option contract or power futures contracts.

47. Competitive electricity market means a place where competitive activities of electricity purchase and sale and service provision among participants in the competitive electricity market take place through the national electricity system in order to optimize economic efficiency and transparency and improve the quality of electricity supply.

48. Spot electricity market means a market for electricity purchase and sale in transaction cycles implemented by units administering electricity market transactions in accordance with regulations applicable to different levels of the competitive electricity market.

49. Forward electricity market means a market for electricity output purchase and sale under electricity forward contracts, power purchase or sale option contracts and power futures contracts.

50. Electricity meters means equipment for measuring electric capacity, power, current, voltage, frequency and power factor, including electricity meters of all kinds and accompanying equipment and accessories.

51. Electricity theft means an act of taking electricity without going through an electricity meter, deliberately distorting the metering index of an electricity meter and other electrical equipment related to electricity metering, intentionally recording or colluding with others for recording a wrong electricity metering index, or other acts of deliberately reporting untruthful figures of electricity consumption.

Article 5. The State’s electricity development policies

1. The State shall promulgate policies on development of and investment in the electricity industry to become an important infrastructure industry to serve socio-economic development and the people’s life, and sustainable development on the basis of optimal exploitation of all resources, and to meet the demand for electricity to serve the people’s life and socio-economic development with stable quality, safety and economic efficiency, contributing to provision of civilized services, environmental protection, and maintenance of national defense, security and national energy security.

2. The State holds its monopoly over the following activities for the purpose of ensuring national energy security:

a/ Dispatching the national power system;

b/ Investing in the construction and operation of projects on nuclear power plants, multi-purpose strategic hydropower plants and important electricity transmission grids with a voltage of 220 kV or more that are on the list decided by the Prime Minister;

c/ Operating transmission grids, except those invested by non-state economic sectors.

3. Policies on electricity development in rural areas, ethnic minority areas, mountainous areas, border areas, islands and areas with extremely difficult socio-economic conditions:

a/ To prioritize the allocation of state budget funds, combine the mobilization of domestic and foreign resources for investment in the development of power sources and power grids to ensure safe, regular and reliable electricity supply for households and to serve socio-economic development, national defense and security in localities;

b/ To provide investment and financial incentives and other incentives and supports for domestic and foreign organizations and individuals to power source and power grid works, and commercially supply electricity to households in a sustainable and efficient manner.

4. To attract all economic sectors to invest in the construction of power source and power grid works under power development plans, plans on development of the electricity supply network in provincial master plans, plans on implementation of power development plans, and electricity generation, distribution, wholesale and retail activities; non-state economic sectors are allowed to operate power grids they invest in accordance with law.

5. Official development assistance-  or foreign donors’ concessional loan-funded electricity projects with their owners being enterprises with 100% charter capital held by the State or businesses with 100% charter capital held by such enterprises which are on the list of projects prioritized for investment by the State may be provided with on-lent capital and on-lending agencies will not bear credit risks in accordance with the Law on Public Debt Management.

6. To formulate a mechanism for development of electricity projects suitable to the level of the competitive electricity market on the basis of ensuring national energy security and national financial security, interests of the State and the people, and macroeconomic stability in each period, covering: minimum electricity output under long-term contracts and application period, principles for calculation of electricity prices, assurance of the implementation of investment projects, and duration of the policy for each case.

7. To encourage power plants currently using fossil fuels to shift to use low-emission fuel sources, install carbon sequestration equipment and systems in order to reduce emissions into the environment, ensure interests of the State, and lawful rights and interests of enterprises and employees; to develop coal-fired thermal electricity at a reasonable level toward prioritizing large-capacity, high-efficiency turbine units using advanced and modern technologies, ensuring compliance with the law on environmental protection.

8. Regarding the policy on development of gas-fired thermal electricity:

a/ To prioritize the development of gas-fired thermal electricity using domestic natural gas sources, rapidly develop gas-fired thermal electricity using liquefied natural gases, and gradually turn gas-fired electricity into an important source of electricity supporting the regulation of the electricity system;

b/ To formulate a mechanism for mobilizing thermal electricity projects to use domestic natural gas sources to the maximum extent based on the gas supply capacity and fuel constraints in order to ensure the harmony of the overall interests of the country;

c/ To formulate a mechanism for development of thermal power plants using liquefied natural gases specified in Clause 6 of this Article; to prioritize the development of electricity projects associated with the shared use of infrastructure facilities of liquefied natural gas import terminals and gas pipelines to reduce electricity generation costs.

9. Regarding the policy on development of renewable energy electricity and new energy electricity:

a/ To develop renewable energy electricity and new energy electricity in conformity with the capacity to ensure the safety of the electricity system at reasonable electricity prices, in sync with the development of the power grid and power development plans, and in conformity with the technological level and human resources, with a view to meeting Vietnam’s emission reduction goals in each period;

b/ To formulate a mechanism for provision of incentives and supports for each type of power source, including small hydropower projects determined in accordance with law and meeting socio-economic development requirements in each period; to adopt incentive and support policies and breakthrough mechanisms for offshore wind power development; to promote investment in projects participating in the competitive electricity market.

10. Regarding the policy on nuclear power development:

a/ The nuclear power development master plan must be associated, consistent and conformable with the power development plan in order to achieve electricity supply security objectives;

b/ Investment in the construction, operation, termination of operation, and assurance of safety of nuclear power plants must comply with the Law on Atomic Energy and other relevant laws.

11. To build and develop the competitive electricity market regulated by the State in order to improve the efficiency of electricity activities; to restructure and renovate, and improve the operational efficiency of, state enterprises in the electricity sector commensurate with different levels of the competitive electricity market on the following principles:

a/ Separating the functions of production, business and service provision from the function of state management; separating activities subject to natural monopoly or state monopoly from competitive activities in the electricity generation line in order to form independent service providers, multiple electricity generation units and multiple electricity wholesale and retail units to increase the number of participants in, and improve the operational efficiency of, the electricity market;

b/ Focusing on core business lines with advantages of state enterprises operating in the electricity sector; optimizing the use of resources and increasing the corporate value; supplying electricity to islands, border areas and areas with difficult or extremely difficult socio-economic conditions, and ensuring national defense and security.

12. Regarding the policy on electricity prices and electricity service prices:

a/ To ensure reflection of reasonable and valid electricity generation and trading costs borne by electricity units; to create conditions for all economic sectors to invest in electricity development with reasonable profits, save energy resources, and use forms of renewable energy and new energy in electricity activities, thus contributing to promoting socio-economic development, especially in rural areas, ethnic minority areas, mountainous areas, border areas, islands, and areas with extremely difficult socio-economic conditions;

b/ To ensure that electricity selling prices comply with the market mechanism and are regulated by the State in conformity with the level of the competitive electricity market;

c/ To ensure that electricity prices can promote efficient and economical use of electricity;

d/ To implement a rational and gradually descending electricity retail tariff, proceeding to abolish electricity price cross-subsidy among groups of customers that are not qualified to participate in the competitive electricity retail market or do not choose to participate in electricity trading on the competitive electricity retail market;

dd/ To gradually reduce and eventually abolish electricity price cross-subsidy among customer groups, regions and areas in conformity with the level of the competitive electricity market;

e/ To guarantee the right to self-determination of electricity buying prices and selling prices not exceeding the electricity price bracket and electricity retail tariff structure set by the State;

g/ To ensure the lawful rights and interests of electricity units and electricity users; to ensure electricity price publicity and transparency, and equality and non-discrimination among electricity units;

h/ To formulate an appropriate electricity price mechanism for special customer groups based on the State’s guidelines and in conformity with the socio-economic development situation in each period.

13. Regarding the State’s support for electricity charge:

a/ The state budget shall provide support for payment of charge for residential electricity for poor households and households as social policy beneficiaries according to criteria and mechanisms set by the Prime Minister in accordance with the socio-economic situation in each period;

b/ The Government shall promulgate plans on provision of support for reduction of electricity charge in case of incidents or disasters in accordance with the Law on Civil Defense in order to stabilize socio-economic development.

Article 6. Responsibility for state management of electricity

1. The Government shall perform the unified state management of electricity nationwide.

2. The Ministry of Industry and Trade shall act as the focal-point agency to assist the Government in performing the unified state management of electricity.

3. Ministries and ministerial-level agencies shall, within the ambit of their tasks and powers, coordinate with the Ministry of Industry and Trade in performing the state management of electricity in accordance with this Law and as assigned by the Government.

4. People’s Committees at all levels shall, within the ambit of their tasks and powers, perform the state management of electricity in their localities.

Article 7. International cooperation in the field of electricity

1. International cooperation in the field of electricity must be in line with Vietnam’s external guidelines and policies; adhere to the principles of peace, cooperation and friendship for common development on the basis of respecting national independence, sovereignty and territorial integrity, non-interference in each other’s internal affairs, equality and mutual benefit, in accordance with Vietnam’s Constitution and law and treaties to which the Socialist Republic of Vietnam is a contracting party.

2. Principal contents of international cooperation in the field of electricity:

a/ Intensifying international cooperation in technology transfer and research and development in the field of electricity;

b/ Training, and improving the quality of, human resources in the field of electricity;

c/ Promoting financial investment cooperation, and sharing of information and data in the field of electricity and accession to international agreements and treaties in the field of electricity in accordance with law.

Article 8. Application of science and technology and development of the manufacturing industry in the field of electricity

1. To apply scientific and technological advances in electricity activities and electricity use in order to save, and improve the use efficiency of, energy sources, protect the environment, protect safety corridors of electricity works, electricity safety and safety of hydropower dams and reservoirs.

2. Important items, equipment and consultancy services to maintain uninterrupted electricity supply and ensure national energy security shall be domestically manufactured and supplied for certain stages. To promote and support the development of technological research, and engineering, manufacturing, installation and service industries in the field of electricity in order to meet to the utmost the domestic demand, and subsequently for export. To prioritize the development of electrical equipment manufacturing and electrical service sectors. To ensure the realization of specific requirements and targets on the localization rate in the electricity industry. To promote the development of large-scale domestic enterprises that attain advanced technological levels and are capable of implementing complex projects with hi-tech requirements in the field of electricity and conforming to international quality standards.

3. Ministries, ministerial-level agencies and provincial-level People’s Committees shall, within the ambit of their functions, tasks and powers, facilitate the establishment of innovation centers in the field of electricity at research and training institutions, organize the formulation and implementation of national key science and technology programs on research, application and development of energy technology, focusing on research and manufacturing of energy equipment and application of various forms of renewable energy, new energy, smart energy, and energy saving; carry out digital transformation, management and operation of information and data systems and other contents on scientific and technological application in the field of electricity. 

4. The Government shall detail this Article.

Article 9. Prohibited acts in electricity activities and electricity use

1. Carrying out electricity activities without licenses as specified in this Law.

2. Stealing electricity.

3. Stealing electrical means and equipment.

4. Destroying electrical means and equipment and electricity works.

5. Using means, equipment and substances that cause fire, explosion or corrosion, and other acts of damaging, or causing incidents of, electricity works.

6. Switching on or switching off electricity in contravention of law.

7. Violating regulations on protection of electricity works, electricity safety and safety of hydropower dams and reservoirs.

8. Planting trees, drilling, digging, embanking or constructing works, exploiting minerals, mooring or anchoring ships, discharging wastewater or corrosives, flying kites or other flying objects, and carrying out other activities in violation of the regulations on safety corridors of electricity works.

9. Using electricity as a means of direct protection, except the case specified in Clause 4, Article 69 of this Law.

10. Providing inaccurate or unclear information that infringes upon the lawful rights and interests of agencies, organizations and individuals engaged in electricity activities and electricity use.

11. Obstructing competent agencies, organizations and individuals in repairing, renovating, and remedying incidents of, electricity works, and inspecting and supervising electricity activities and electricity use.

12. Harassing, causing troubles or earning illicit profits in electricity activities and electricity use.

Chapter II

POWER DEVELOPMENT PLANS, POWER SUPPLY NETWORK DEVELOPMENT PLANS AND ELECTRICITY PROJECT CONSTRUCTION INVESTMENT

Article 10. Power development plans, power supply network development plans

1. Power development plans are national sectoral master plans.

2. Power supply network development plan constitutes a content incorporated in a provincial master plan.

3. The formulation, appraisal, approval, announcement, modification and implementation of power development plans and provincial master plans that include contents on power supply network development plans must comply with the planning law and this Law.

4. The formulation and modification of master plans must comply with the planning law and satisfy the following requirements:

a/ To ensure sufficient electricity supply for socio-economic development and the people’s life;

b/ To efficiently exploit and use domestic energy resources, ensuring sustainable development;

c/ To synchronously optimize factors of power sources, electricity transmission, electricity distribution, and economical and efficient use of electricity; to have an appropriate roadmap in tandem with sustainable exploitation and use of natural resources, environmental protection and transformation of economic models, thereby ensuring national energy security;

d/ To carry out energy transition according to national objectives and commitments on the basis of scientific and technological advances and renewable energy and new energy development policies;

dd/ To ensure that the power grid system is compatible with power sources, and meets load development needs of regions and localities.

5. Based on the scale of power source capacity and voltage level of the power grid, competent agencies and organizations shall formulate power development plans and power supply network development plans in provincial master plans. Power development plans and power supply network development plans in provincial master plans do not include the following projects:

a/ Projects on power sources that exert no impacts or minor impacts on the national electricity system;

b/ Projects on power sources neither connected nor sold to the national electricity system, except cases of electricity export or import;

c/ Projects on low-voltage grids;

d/ Renovated or upgraded electricity projects that do neither increase the capacity or voltage level nor give rise to land use needs.

6. The Government shall detail Clause 5 of this Article.

Article 11. Plans on implementation of power development plans, plans on implementation of provincial master plans that have contents on power supply network development plans

1. Plans on implementation of power development plans must comply with the planning law and satisfy the following requirements:

a/ Closely following objectives and orientations of, and concretizing tasks assigned in, such power development plans;

b/ Ensuring the development of balanced power sources by region and area, targeting intra-regional supply and demand balance; ensuring feasibility, synchronism and flexibility in the development of power sources and power grids in conformity with the country’s context and resources;

c/ Determining deadlines for putting projects into operation in two phases in the 10-year planning period and subsequent 5 years for vision periods.

2. Contents of plans on implementation of power development plans must comply with the planning law and determine lists of electricity projects as specified at Point b, Clause 2, Article 5 of this Law for use as a basis for assigning enterprises with 100% charter capital held by the State or enterprises with 100% charter capital held by such enterprises to carry out construction investment.

3. Provincial-level People’s Committees shall formulate and promulgate plans on implementation of provincial master plans in accordance with the planning law, which include contents on power supply network development plans for use as a basis for implementation of electricity projects and determination of power grid projects to serve socio-economic development for national and public interests, which are invested by enterprises with 100% charter capital held by the State or enterprises with 100% charter capital held by such enterprises.

Article 12. General provisions on electricity project construction investment

1. Milestones of the progress of achieving objectives of each phase of a power source investment project in accordance with the investment law must be specified in the investment registration certificate or investment policy approval document. The Government shall specify milestones of the progress of achieving objectives of each phase of power source investment projects specified in this Clause.

2. In each period and for each type of power source investment projects, the Government shall provide a mechanism for ensuring the consumption of domestically exploited natural gas sources; set out the principle of conversion of fuel prices into electricity prices; and specify minimum electricity outputs under long-term contracts. 

3. The Minister of Industry and Trade shall set out electricity price calculation principles for the implementation of electricity projects.

4. The Government shall specify criteria for determining electricity projects on the list of projects eligible for the State’s priority investment in the field of electricity. Based on the Government-specified criteria, the Minister of Industry and Trade shall decide on electricity projects on the list of projects eligible for the State’s priority investment as specified in Clause 5, Article 5 of this Law.

Article 13. Electricity project investment policy

1. Except the emergency electricity projects specified in Article 14 of this Law and the electricity projects specified in Clauses 2, 3 and 4 of this Article, investment policy decision or approval for electricity projects subject to investment policy decision or approval must comply with the Law on Public Investment, the Law on Investment in the Form of Public-Private Partnership, and the Law on Investment.

2. Except the emergency power grid projects specified in Article 14 of this Law, investment policy approval for an investment project on a power grid with a voltage level of up to 220 kV stretching through administrative boundaries of 2 or more provincial-level administrative units subject to investment policy approval in accordance with the Law on Investment is as follows:

a/ The provincial-level People’s Committee of the locality where the starting point of the transmission line is determined according to the name of the power grid project in the relevant power development plan or the electricity supply network development plan in the provincial master plan is competent to approve the investment policy;

b/ Dossiers for and contents of appraisal of a request for investment policy approval must comply with the Law on Investment;

c/ The order and procedures for investment policy approval are those for  investment policy approval for projects subject to investment policy approval by provincial-level People’s Committees in accordance with the Law on Investment and the provisions on order and procedures for consultation with related localities specified at Points d and dd of this Clause;

d/ The provincial-level People’s Committee specified at Point a of this Clause shall consult the remaining provincial-level People’s Committees within 7 working days after receiving a complete dossier;

dd/ Within 15 days after receiving a complete dossier, the remaining provincial-level People’s Committees shall give their opinions on the dossier of proposal on investment policy for the project within provincial-level administrative boundaries and send a document expressing their opinions to the provincial-level People’ Committee specified at Point a of this Clause. Such document must state the agreement or disagreement with the dossier; in case of disagreement, such document must state the reason for the investor to complete the dossier of proposal on the project’s investment policy;

e/ The investment registration office shall be identified according to the provincial-level People’s Committee approving investment policy specified at Point a of this Clause.

3. For an investment project on a medium-voltage or low-voltage grid subject to investment policy approval by a provincial-level People’s Committee:

a/ Based on the electricity supply network development plan in the provincial master plan and proposals of electricity units and investors, the provincial-level People’s Committee shall approve the list of medium- and low-voltage grids in conformity with the decentralization of powers for management of power development plans and electricity supply network development plans in provincial master plans;

b/ The decision of the provincial-level People’s Committee specified at Point a of this Clause is a substitute for the investment policy approval document for each individual medium-voltage or low-voltage grid investment project and serves as a basis for land allocation, land lease or land repurposing.

4. The Government shall detail Clauses 2 and 3 of this Article; specify cases in which investment projects on trading in renewable energy electricity and new energy electricity are subject to the Prime Minister’s investment policy approval specified in Clause 4, Article 31 of the Law on Investment.

Article 14. Emergency electricity projects and works

1. Emergency electricity projects and works include:

a/ Electricity projects and works that are constructed or repaired or renovated in order to promptly remedy consequences of disasters, catastrophes or epidemics in accordance with the construction law and other relevant laws;

b/ Projects and works on construction of power sources and connected power grids in order to compensate for the shortage of power source capacity compared to the capacity stated in power development plans due to the delayed progress of other power source construction investment projects; due to an unexpected increase in regional and national loads; or due to the suspension of investment projects on construction of other power source works;

c/ Power grid construction projects and works that play an important role in the transmission of power source capacity between regions in order to prevent overload of the power grid; to meet urgent requirements for ensuring national defense and security or urgent requirements for local socio-economic development;

2. The Government shall specify principles and criteria for identification of emergency electricity projects and works specified at Points b and c, Clause 1 of this Article on the basis of ensuring the timely satisfaction of requirements for settlement of urgent issues of ensuring electricity supply security.

Article 15. Special provisions on investment in the construction of emergency power projects and works

1. Emergency electricity projects and works specified at Points b and c, Clause 1, Article 14 of this Law are entitled to the following special provisions on construction investment:

a/ They are not required to carry out procedures for investment policy approval in accordance with the Law on Investment and the policy on forest land repurposing, but must adhere to the principle of minimizing forest land repurposing in accordance with the Forestry Law, especially for natural forests upon the construction of electricity projects.

The Prime Minister’s decisions specified in Clause 2 of this Article may substitute investment policy approval documents in accordance with the Law on Investment and serve as a basis for land allocation, land lease or land repurposing. For emergency electricity projects and works that need forest land repurposing, the Prime Minister’s decisions specified in Clause 2 of this Article concurrently serve as investment policy approval documents in accordance with the Law on Investment and documents on approval of the policy on forest land repurposing in accordance with the Forestry Law; the Prime Minister’s decisions must clearly state forest areas that need to be repurposed for project implementation;

b/ They are entitled to the Government’s guarantee in accordance with the Law on Public Debt Management; subject to the Prime Minister’s decision on the maximum credit extension level in case the total outstanding amount of credit extension to enterprises and related parties exceeds the limit specified by the Law on Credit Institutions; and exempt from security for the implementation of investment projects in accordance with the Law on Investment;

c/ Their owners are not required to carry out procedures for submission to agencies representing the state owner for approval the contents related to investment projects, plans on capital mobilization and mortgage of assets for borrowing loans in accordance with the Law on Management and Use of State Capital Invested in Production and Business at Enterprises;

d/ Their owners may decide on all jobs in construction investment activities, including: assigning organizations and individuals to perform survey, designing, construction and other necessary tasks to serve the construction of emergency works; deciding on procedures for survey, designing and construction; and deciding on the supervision of the construction and acceptance testing of construction works to meet emergency work progress requirements;

dd/ State management agencies shall, within the ambit of their functions, appraise dossiers of construction design implemented after basic designs, appraise and approve fire prevention and fighting designs to be carried out simultaneously at construction designing stages, ensuring compliance with the law on construction, the law on fire prevention and fighting and rescue for emergency electricity projects and works specified at Points b and c, Clause 1, Article 14 of this Law;

e/ After the completion of the work construction, their owners shall inspect and re-evaluate the quality of constructed works and perform the work warranty, complete work completion dossiers, and archive dossiers and documents in accordance with the construction law and make account-finalization of the works in accordance with law;

g/ They may apply the mechanism specified in Clause 2, Article 12 of this Law.

2. The competence to decide on emergency electricity projects and works is as follows:

a/ The Prime Minister shall decide to approve the list of emergency power source and power grid projects and works specified at Points b and c, Clause 1, Article 14 of this Law on the basis of evaluation and proposal of the Ministry of Industry and Trade or provincial-level People’s Committees according to the decentralization of powers for planning management, that are eligible for the application of special mechanisms provided in this Article, except those funded by public investment capital and projects subject to the National Assembly’s investment policy approval in accordance with the Law on Investment;

b/ The Prime Minister shall decide to assign enterprises with 100% charter capital held by the State or businesses with 100% charter capital held by such enterprises to act as owners of emergency power source and power grid projects and works specified at Points b and c, Clause 1, Article 14 of this Law;

c/ The competence to decide on the construction of emergency power projects and works specified at Point a, Clause 1, Article 14 of this Law must comply with the construction law and other relevant laws.

Article 16. Power plant projects invested in the form of public-private partnership subject to application of build-operate-transfer contracts

A dossier for a power plant project invested in the form of public-private partnership applying the type of build-operate-transfer (BOT) contract must have the documents specified by the law on investment in the form of public-private partnership and the following documents:

1. Power purchase agreement, which is a written agreement between the electricity buyer and the electricity seller being the project enterprise;

2. Land lease contract, which is a written agreement between the lessor of land of the locality where the project is located and the project enterprise (if any); and decision on allocation of a sea area (if any);

3. Domestic fuel supply contract, which is a written agreement between the domestic fuel supplier and the project enterprise (if any);

4. Infrastructure sharing contract, which is a written agreement between the shared-use infrastructure investor/developer and the project enterprise (if any).

Article 17. Electricity development in rural areas, ethnic minority areas, mountainous areas, border areas, islands and areas with extremely difficult socio-economic conditions

1. Agencies, organizations and individuals may use public investment capital, equity, loans, capital sources for investment in the form of public-private partnership and other lawful capital sources in accordance with law to ensure electricity supply to rural areas, ethnic minority areas, mountainous areas, border areas, islands and areas with extremely difficult socio-economic conditions.

2. The State shall provide support for behind-the-meter investment in electricity supply for domestic use by households in rural areas, ethnic minority areas, mountainous areas, border areas, islands and areas with extremely difficult socio-economic conditions, and by households whose houses are damaged by disasters, fire or explosion.

3. Investment in the construction of renewable energy electricity sources, medium-voltage and low-voltage power grids to supply electricity for domestic use by households, commodity production, socio-economic development, and national defense and security assurance is entitled to investment incentives in accordance with the Law on Investment. In case the surplus electricity volume is transmitted into the national medium- or low-voltage power grid, the surplus electricity generation price must comply with the Government’s regulations.

4. Owners of assets of the behind-the-meter investment form for households as specified in Clauses 1 and 2 of this Article shall hand over such assets to households for management and use.

5. The Government shall detail Clause 2 of this Article.

Article 18. Selection of investors of electricity trading investment projects

1. The selection of investors to implement the following electricity trading investment projects is not subject to auction of land use rights or bidding for investor selection:

a/ Investment projects under the State’s monopoly as specified at Points a and b, Clause 2, Article 5 of this Law;

b/ Expanded hydropower projects and projects on renovation or upgrading of power grids with investors permitted to own existing projects;

c/ Electricity projects approved by competent agencies on the basis of investment proposals of enterprises with 100% charter capital held by the State or businesses with 100% charter capital held by such enterprises. The Prime Minister shall approve the list of electricity projects not subject to the National Assembly’s investment policy approval and included in power development plans. Provincial-level People’s Committees shall approve lists of electricity projects included in provincial master plans;

d/ Emergency projects subject to investor selection under Clause 2, Article 15 of this Law;

dd/ Offshore wind power projects, which must comply with Clause 2, Article 29 of this Law;

e/ Other cases specified by the investment and land laws.

2. Except the cases specified in Clause 1 of this Article, cases of investor selection through auction of land use rights must comply with the land law.

3. Except the cases specified in Clause 1 of this Article, cases in which bidding is organized for selection of investors to implement electricity trading investment projects must comply with Article 19 of this Law.

Article 19. Bidding for selection of investors for electricity trading investment projects

1. For the cases specified in Clause 3, Article 18 of this Law, except offshore wind power projects specified in Clause 3, Article 29 of this Law, bidding for selection of investors to implement an electricity project shall be organized when there are 2 or more investors expressing their interest in accordance with the bidding law on the basis of the criterion of electricity price for evaluation of the efficiency of electricity sector development; for electricity projects without price brackets promulgated by the Ministry of Industry and Trade or electricity projects applying direct power purchase and sale, criteria for evaluation of the efficiency of electricity sector development must comply with the Government’s regulations.

2. Bid-winning electricity price is the maximum electricity price for the electricity buyer to negotiate the price of the power purchase agreement with the bid-winning investor. The electricity buyer shall negotiate and sign the power purchase agreement with the bid-winning investor.

3. The Government shall detail the following contents:

a/ Cases in which it is required to organize bidding for investor selection to implement electricity trading investment projects, based on socio-economic development conditions in each period;

b/ Special requirements for electricity trading investment projects stated in bidding dossiers for investor selection;

c/ The negotiation and signing of electricity trading investment project contracts and power purchase agreements with bid-winning investors on the basis of ensuring interests of contract parties.

Chapter III

DEVELOPMENT OF RENEWABLE ENERGY ELECTRICITY AND NEW ENERGY ELECTRICITY

Section 1

PROVISIONS ON RENEWABLE ENERGY ELECTRICITY AND NEW ENERGY ELECTRICITY

Article 20. General provisions on development of renewable energy electricity and new energy electricity

1. Agencies, organizations and individuals shall carry out activities to develop renewable energy electricity and new energy electricity on the basis of respecting national independence, sovereignty and territorial integrity, non-interference in each other’s internal affairs, equality and mutual benefit, in accordance with the Constitution and law of Vietnam and treaties to which the Socialist Republic of Vietnam is a contracting party. Agencies, organizations and individuals that carry out activities related to the development and investment in the construction of new and renewable energy electricity projects have the following responsibilities:

a/ To comply with Vietnam’s regulations on national defense, security, social order and safety, community wellbeing, environmental protection, response to climate change, protection of natural resources and cultural heritage, and conservation of historical-cultural relics and scenic spots;

b/ To use modern techniques and technologies, comply with national technical regulations, and apply standards in accordance with Vietnam’s law.

2. Principles of the development of renewable energy electricity and new energy electricity:

a/ Ensuring security of electricity supply and safety of the power system;

b/ Developing  renewable energy electricity and new energy electricity in regions, areas and localities that have potential and advantages in renewable energy and new energy and ensuring their compatibility with the development of infrastructure of the power system in order to prevent waste and loss in construction investment activities due to the failure to release capacity in order to efficiently exploit power sources, ensure the reliability of electricity supply; reducing technical losses and pressure on long-distance transmission; meeting environmental requirements and ensuring conformity with socio-economic conditions of development regions and areas;

c/ Synchronizing plans on training and development of human resources for participation in research and activities in the field of renewable energy and new energy, proceeding to ensure technological autonomy at certain appropriate stages;

d/ Prioritizing the efficient exploitation and use of renewable energy and new energy sources in order to sustainably and rationally exploit natural resources, thereby ensuring national energy security and boosting electricity export;

dd/ Prioritizing the development of large-scale power source projects in order to form clusters of plants or renewable energy centers in order to bring into full play natural advantages and power grid infrastructure in conformity with the power release capacity and operation requirements of the national power system in each region or locality, and in suitability with conditions and technological level in each period;

e/ Promoting the appropriate development of rooftop solar power, and floating solar power (on water surface areas and hydraulic reservoirs), prioritizing the development of this kind of power on water surface areas of existing hydropower reservoirs without requiring investment in transmission grids;

g/ Prioritizing the development of offshore wind power sources in association with ensuring national defense and security, and maintaining national sovereignty over border and sea areas and islands.

3. To encourage organizations and individuals to invest in wind power and solar power projects in combination with investment in electricity storage systems or production of green hydrogen and green ammonia to serve electricity generation and use. For solar power and wind power sources connected to the national power system, the total generation capacity of solar power and wind power plants, including also the capacity of the electricity storage system, must not exceed the capacity of solar power and wind power plants already determined in power development plans or electricity supply network development plans in provincial master plans. The installed capacity shall be decided by project owners in the course of implementation of construction investment projects on the basis of ensuring the capacity ratio of the electricity storage system as specified by law and ensuring natural resource use efficiency.

4. To develop electricity from renewable energy and new energy to create a foundation for transition of the electricity structure toward low carbon, thereby achieving the goals of reducing emissions and ensuring the development of a sustainable electricity system.

5. Offshore wind power projects include all wind turbines built in the sea areas of Vietnam and located outside the mainland’s lowest mean sea level edge for many years seaward. Offshore wind power projects include:

a/ Onshore wind power projects with all turbines built in the sea areas that are within 6 nautical miles from the mainland’s lowest mean sea level edge for many years seaward;

b/ Offshore wind power projects with all turbines built outside the sea areas that are within 6 nautical miles from the mainland’s lowest mean sea level edge for many years seaward.

6. The planning, and investment in the development of, offshore wind power projects shall be carried out in the following order of priority:

a/ Electricity generation projects to supply electricity to the national power system;

b/ Self-generated and self-consumed electricity projects or electricity projects for the production of green hydrogen and green ammonia and for meeting other domestic needs;

c/ Projects on generation of electricity for export and for the production of green hydrogen and green ammonia for export.

7. To develop electricity from offshore renewable energy and new energy in accordance with the order of priority for development of marine economic sectors in each period.

8. The Government shall specify the following contents:

a/ Preferential and support mechanisms for the development of electricity storage systems of electricity projects from renewable energy sources in conformity with the technological level in this field;

b/ Preferential and support policies for appropriate technology research and development in the field of wind power and solar power in Vietnam;

c/ Mechanism for sharing and provision of information and data on monitoring parameters of primary energy sources and making of statistics on electricity output of renewable energy power plants and new energy power plants, except self-generated and self-consumed rooftop solar power sources.

Article 21. Basic survey of renewable energy electricity and new energy electricity resources

1. The scope of basic survey of renewable energy electricity and new energy electricity resources in the territory of Vietnam covers:

a/ Solar, wind and geothermal electricity resources;

b/ Sea wave electricity and tidal electricity resources and other forms of electricity resources from ocean energy;

c/ Electricity resources from domestic and urban solid wastes;

d/ Electricity resources from biomass;

dd/ Electricity resources from wastes of production and business processes other than those specified at Point c of this Clause;

e/ Hydroelectricity resources.

2. Responsibilities for organizing basic survey of renewable energy electricity and new energy electricity resources:

a/ The competence and responsibility to conduct basic survey of renewable energy electricity and new energy electricity resources in Vietnam’s sea areas must comply with the law of the sea and the law on marine and island resources and environment;

b/ The competence and responsibility to conduct basic survey on hydropower resources must comply with the law on water resources;

c/ Except the case specified at Point d of this Clause, provincial-level People’s Committees shall assume the prime responsibility for organizing basic survey of renewable energy electricity and new energy electricity resources on the mainland and islands under their management of administrative boundaries;

d/ The Ministry of Natural Resources and Environment shall assign enterprises with 100% charter capital held by the State to conduct basic survey and public non-business units with the function of conducting basic survey of marine and island resources and environment to assume the prime responsibility for conducting basic survey in certain maritime zones in Vietnam’s sea areas.

3. The State shall encourage, and mobilize lawful financial sources and scientific and technical contributions of, organizations and individuals to serve basic survey activities.

4. Information and data specified in Clause 1 of this Article are input sources for planning agencies and planning consultancy units to formulate power development plans and provincial master plans. For an area for which no information and data specified in this Clause are available, the planning organization shall collect reliable and appropriate data to perform its tasks in accordance with law. The Ministry of Natural Resources and Environment shall synthesize information and data nationwide as specified in Clause 1 of this Article.

5. The Ministry of Natural Resources and Environment and provincial-level People’s Committees shall manage, announce and share information on basic survey of renewable energy electricity and new energy electricity resources in accordance with law.

6. Funds for conducting basic survey specified in Clause 1 of this Article shall be allocated from:

a/ The state budget;

b/ Funds set aside by enterprises with 100% charter capital held by the State from expenses for production and business activities and other lawful capital sources;

c/ Organizations’ and individuals’ voluntary donations in funds for basic survey activities.

7. The Minister of Natural Resources and Environment shall specify the scope of basic survey specified in Clause 1 of this Article, except contents that must comply with the law on water resources and the law on marine and island resources and environment.

Article 22. Development of self-generated and self-consumed electricity from renewable energy and new energy sources

1. Self-generated and self-consumed electricity sources shall be connected to the national power system. The connection must comply with the electricity law. Surplus electricity output may be sold in accordance with law. Land areas for building multi-purpose energy and public lighting works may be used in accordance with the land law.

2. Based on technical capacity, economic conditions and the state budget’s capacity in each period, the Prime Minister or provincial-level People’s Councils shall promulgate policies to provide support to households for installation of self-generated and self-consumed electricity equipment, specifically as follows:

a/ To provide financial support for the installation of rooftop solar power and electricity storage systems;

b/ To provide technical assistance in designing and solutions to ensure the load-bearing safety of works, and fire prevention and fighting solutions.

3. The Government shall specify the following contents:

a/ Generation capacity and output, which must be suitable to the electricity load and development conditions of the power system;

b/ Installation of electricity storage systems in combination with investment in self-generated and self-consumed electricity sources;

c/ Order and procedures for development of self-generated and self-consumed electricity sources;

d/ Mechanism of electricity buying and selling prices for surplus electricity output;

dd/ Responsibilities of related organizations and individuals when developing self-generated and self-consumed electricity sources.

Article 23. Development of new energy electricity

1. New energy electricity project is a clean energy generation project eligible for application of the State’s tax and investment credit policies and credit extension in accordance with relevant laws.

2. Based on electricity supply security assurance requirements, scientific and technological advances, and socio-economic development conditions in each period, the Government shall specify conditions and time limit for application of the following mechanisms and policies for new energy electricity projects:

a/ Exemption from or reduction of sea area use levy;

b/ Exemption from or reduction of land use levy and land rental;

c/ Minimum electricity output under long-term contracts, for projects selling electricity to the national power system on the basis of ensuring interests of the State and the people, and the safety of the power system in each period.

Article 24. Renovation, repair and replacement of equipment of renewable energy power and new energy power plants

1. In the course of operation of power plants according to their approved designs and within operation durations of renewable energy electricity or new energy electricity projects, existing equipment may be renovated, repaired or replaced with new equipment with specifications different from those of the existing equipment currently in operation in order to ensure safe and efficient operation and compliance with law and not to lead to an increase in land or sea areas required to be used.

2. The capacity of electricity generation to the national power system of a project specified in Clause 1 of this Article must not exceed the capacity stated in the following legal documents of such project:

a/ Investment policy approval document or investment policy decision or investment registration certificate;

b/ Electricity activity license.

Article 25. Dismantlement of works of renewable energy electricity and new energy electricity projects

1. Works of a renewable energy electricity or new energy electricity project shall be dismantled after their operation termination in the following cases:

a/ Their use duration specified in the construction law expires without being extended in accordance with the construction law;

b/ The operation duration specified in the investment law or the operation duration of the project expires without being extended;

c/ When there is a difference between the durations specified at Points a and b of this Clause, the dismantlement of works after their operation termination shall be carried out depending on whichever duration expires first.

2. The dismantlement of solar power plants and wind power plants after their operation termination is specified as follows:

a/ Owners of solar power plants and wind power plants shall dismantle their plants in the cases specified in Clause 1 of this Article; and bear all dismantlement costs;

b/ The dismantlement, recovery, treatment and management of wastes, materials and scraps must comply with the law on environmental protection and other relevant laws and meet requirements of the restoration of sites and the environment after the dismantlement;

c/ From the time of operation termination specified in Clause 1 of this Article, plant owners shall be totally responsible for completing the dismantlement within the time limit specified by the Government.

3. For cases other than those specified in Clauses 1 and 2 of this Article, the dismantlement of works of new energy electricity and renewable energy electricity projects must comply with relevant regulations.

Section 2

OFFSHORE WIND POWER DEVELOPMENT

Article 26. General provisions

1. The implementation of offshore wind power projects must satisfy the following national defense, security and information security requirements:

a/ Organizations and individuals that implement or participate in the implementation of offshore wind power projects shall comply with the regulations on national defense and security assurance;

b/ The production and use of equipment and the creation, transmission, collection, processing, storage and exchange of information and data across the border must comply with law.

2. The implementation of offshore wind power projects must comply with this Law and Vietnam’s regulations on maritime safety and safety of equipment and works, and treaties to which the Socialist Republic of Vietnam is a contracting party.

3. Offshore wind power projects are entitled to the following mechanisms and policies under conditions and within durations specified by the Government:

a/ Minimum electricity output under long-term contracts, for projects selling electricity to the national power system;

b/ Exemption from or reduction of sea area use levy;

c/ Exemption from or reduction of land use levy and land rental.

4. In addition to the mechanisms and policies specified in Clause 3 of this Article, enterprises with 100% charter capital held by the State are exempt from providing security for the implementation of investment projects in accordance with the Law on Investment; may be considered by the Prime Minister for decision on credit extension in excess of the limit applicable to a customer and affiliated persons for offshore wind power projects in accordance with the Law on Credit Institutions.

5. Based on socio-economic development conditions, development and investment attraction objectives in each period, and level of the competitive electricity market, in order to ensure electricity supply security, the Government shall detail:

a/ Clauses 3 and 4 of this Article;

b/ Conditions for implementation or participation in the implementation of offshore wind power projects of organizations being foreign investors or domestic investors, including the total share and contributed capital holding rate in offshore wind power projects;

c/ The time of termination of the application of the mechanisms and policies specified in Clause 3 of this Article.

6. Offshore wind power projects are regarded as construction investment projects and must comply with the following provisions:

a/ The survey of offshore wind power projects is eligible for application of standards, technical regulations, techno-economic norms and unit prices in conformity with international and foreign standards in case there are no domestic ones;

b/ Offshore wind power works are eligible for application of standards and technical regulations in conformity with international and foreign standards in case there are no domestic ones.

7. The Government shall provide a mechanism for coordination between ministries, ministerial-level agencies and provincial-level People’s Committees of coastal localities and other related agencies in the management of offshore wind power projects and works.

8. The transfer of projects, shares and contributed capital amounts in offshore wind power projects must comply with Clause 1 of this Article and other relevant regulations. The Government shall detail this Clause.

Article 27. Survey of offshore wind power projects

1. The survey of offshore wind power projects shall be carried out in accordance with the law of the sea, the law on marine and island natural resources and environment, the construction law, treaties to which the Socialist Republic of Vietnam is a contracting party, and international practices.

2. The selection of units to carry out survey of offshore wind power projects before the selection of investors to implement such projects is as follows:

a/ The Prime Minister assigns enterprises with 100% charter capital held by the State to carry out survey;

b/ Based on socio-economic development conditions in each period, the Government shall provide the selection of units to carry out survey of offshore wind power projects, except the case specified at Point a of this Clause.

3. The handling of survey expenses of enterprises specified at Point a, Clause 2 of this Article is as follows:

a/ Survey expenses in the case specified at Point a, Clause 2 of this Article shall be covered by enterprises with 100% charter capital held by the State; such enterprises may contribute capital to invest in projects in areas they are assigned by the Prime Minister to carry out survey;

b/ In case of failure to comply with Point a of this Clause, investors selected to implement projects shall refund survey expenses to the enterprises specified at Point a, Clause 2 of this Article.

4. The management, exploitation and use of specimens, documents, information, data and results of survey of offshore wind power projects are as follows:

a/ State agencies and enterprises shall assume the prime responsibility for carrying survey and managing specimens, documents, information, data and results of survey of offshore wind power projects they carry out; other organizations that assume the prime responsibility for carrying out survey shall submit approved specimens, documents, information, data and results of survey of offshore wind power projects to the state management agencies in charge of marine and island natural resources and environment for management;

b/ Organizations and individuals that access, refer to, exploit and use specimens, documents, information, data and results of survey of offshore wind power projects shall keep confidential information in accordance with law and agreements between the parties.

5. The Government shall detail Clause 4 of this Article and specify survey contents, mechanism for handling survey expenses, conditions and capacity of survey units; provide the assignment of responsibilities to specify techno-economic norms, survey unit prices, verification of survey results, area under the survey and use of sea areas, and payment of expenses for preparation of prefeasibility study reports on project construction investment.

Article 28. Investment policy approval or decision for offshore wind power projects

1. Investors required to make dossiers of request for investment policy approval for offshore wind power projects include:

a/ Enterprises with 100% charter capital held by the State, which shall make dossiers of request for investment policy approval together with investor approval or make dossiers of request for investment policy approval for bidding for investor selection;

b/ Investors carrying out survey specified at Point b, Clause 2, Article 27 of this Law in case to-be-surveyed areas and project scale conform with power development plans, which shall make dossiers of request for investment policy approval for investor selection.

2. Contents of a dossier of request for investment policy approval together with investor approval or a dossier of request for investment policy approval or decision for an offshore wind power project must comply with the Law on Investment or the Law on Public Investment or the Law on Investment in the Form of Public-Private Partnership, and include the following information:

a/ Projected location, coordinates and area of the sea area to be used, in substitution for documents evidencing the right to use the location for the implementation of the investment project;

b/ Projected duration of use of the sea area.

3. When appraising investment policy in accordance with the law on investment, the law on public investment, or the law on investment in the form of public-private partnership, the agency in charge of appraisal of offshore wind power projects shall consult:

a/ The Ministry of National Defense, Ministry of Public Security, Ministry of Foreign Affairs, Ministry of Natural Resources and Environment, Ministry of Transport, and other ministries and sectors as assigned by the Government;

b/ Provincial-level People’s Committees of localities that have sea areas where offshore wind power projects are to be implemented.

4. The Government shall specify cases of investment policy approval together with investor approval specified at Point a, Clause 1 of this Article.

Article 29. Selection of investors of offshore wind power projects

1. Offshore wind power projects are subject to investor selection as follows:

a/ For public investment projects, investor selection shall be carried out in accordance with the law on public investment;

b/ For projects of investment in the form of public-private partnership, investor selection shall be carried out in accordance with the law on investment in the form of public-private partnership;

c/ For business investment projects, investor selection shall be carried out in accordance with the law on investment.

2. Except projects subject to the National Assembly’s investment policy approval, the Prime Minister shall approve investment policy together with investor selection for the following investment projects on offshore wind power business:

a/ Projects not subject to bidding for investor selection for national defense and security reasons based on opinions of the Ministry of National Defense or the Ministry of Public Security;

b/ Projects subject to investment policy together with investor approval specified at Point a, Clause 1, Article 28 of this Law.

3. In addition to the projects specified in Clause 2 of this Article, the selection of investors to implement investment projects on offshore wind power business for sale of electricity to the national power system must comply with this Law and the bidding law. The ceiling electricity price in a bidding dossier must not be higher than the maximum level in the electricity generation price bracket promulgated by the Ministry of Industry and Trade. The bid-winning electricity price in investor selection is the maximum electricity price for the electricity buyer to negotiate with the bid-winning investor. A bidding dossier shall be made in accordance with law and must have the following documents and contents:

a/ The draft power purchase agreement agreed upon by the bidding-organizing agency and the electricity buyer;

b/ Preferential mechanisms and policies specified in Clause 3, Article 26 of this Law.

4. Based on socio-economic development conditions, development and investment attraction objectives in each period, and conditions for development of the electricity market, in order to ensure electricity supply security, the Government shall specify:

a/ Conditions for investors to participate in bidding;

b/ The selection of investors to implement offshore wind power projects to achieve planned development objectives and the need to attract investment in this field;

c/ The negotiation and conclusion of business investment project contracts, and power purchase agreements with bid-winning investors as specified in Clause 3 of this Article.

Chapter IV

ELECTRICITY ACTIVITY LICENSES

Article 30. Principles of grant of electricity activity licenses

1. Fields involving electricity activities for which electricity activity licenses are required include: electricity generation, electricity transmission, electricity distribution, electricity wholesale and electricity retail.

2. Organizations that are eligible for operation in accordance with this Law may be granted electricity activity licenses, except the cases specified in Article 33 of this Law.

3. Electricity activity licenses may not be granted for the investment stage. Investment in the field of electricity must comply with the investment law.

4. An electricity activity license shall be granted to an organization to perform one or more field(s) involving electricity activities.

5. Licenses for electricity activities in the field of electricity generation shall be granted to organizations that own power plants based on work items or the whole works.

6. Licenses for electricity activities in the field of electricity transmission shall be granted according to the scope of management and operation of specific transmission grids.

7. Licenses for electricity activities in the field of electricity distribution shall be granted according to the scope of management and operation of specific distribution grids.

8. Licenses for electricity activities in the field of electricity wholesale shall be granted according to specific scope of electricity sale.

9. Licenses for electricity activities in the field of electricity retail shall be granted according to the specific scope of electricity sale, which must be beyond the scope granted by competent agencies to other units. When shifting to the stage of operation of the competitive electricity retail market, licenses for electricity activities in the field of electricity retail shall be granted to organizations participating in the electricity retail market within the market’s scope.

10. Prior to the stage of operation of the competitive electricity retail market, licenses for electricity activities in the field of electricity retail shall be granted concurrently with those in the field of electricity generation or electricity distribution.

11. Electricity activity licenses may be granted to one or more organization(s) engaged in activities in the same specific field and must comply with this Law, the Law on Investment, the Law on Enterprises and other relevant laws.

Article 31. Conditions for grant of electricity activity licenses

1. To be granted an electricity activity license, an organization must fully satisfy the following conditions:

a/ Having been lawfully established in accordance with law;

b/ Having technical managers, business managers and personnel directly engaged in the operation who satisfy the conditions on quantity and professional qualifications.

2. For the fields of electricity generation, electricity transmission and electricity distribution, to be granted an electricity activity license, to be granted an electricity activity license, an organization must fully satisfy the conditions specified in Clause 1 of this Article and the following conditions:

a/ Having work items and works for electricity generation, electricity transmission and electricity distribution in line with power development plan, power supply network development plan in the provincial master plan, plan on implementation of the power development plan, plan on implementation of the provincial master plan that have contents on power supply network development plans and modification decisions (if any), which are constructed and installed according to approved designs and satisfy conditions for being put into operation and use;

b/ Having electricity generation, electricity transmission and electricity distribution projects and works that are constructed and installed in accordance with the law of the sea, the land law, the law on fire prevention and fighting and rescue and the law on environmental protection and other relevant laws;

c/ Having documents on safety management of dams and reservoirs in accordance with law, for electricity generation of hydropower plants.

3. For electricity wholesale and electricity retail, to be granted an electricity activity license, an organization must fully satisfy the conditions specified in Clause 1 of this Article and have an appropriate plan on electricity wholesale and retail activities.

4. The Government shall specify conditions for the fields subject to grant of electricity activity licenses.

Article 32. Cases of grant of electricity activity licenses

1. A electricity activity license shall be granted in the following cases:

a/ First-time grant of a license for electricity generation work items or the whole electricity generation works in the field of electricity generation;

b/ First-time grant of a license for a specific scope in the field of electricity transmission, electricity distribution, electricity wholesale or electricity retail;

c/ Grant of a new electricity activity license in case of change in the scope of operation and main technical parameters of electricity works and technologies used in electricity activities of the previously granted license.

2. A modified or supplemented electricity activity license shall be granted in the following cases:

a/ At the request of the licensed organization when there is a change in one of the contents of the electricity activity license specified in Clause 1, Article 34 of this Law or in case of reduction of the fields of electricity activities specified in Clause 2, Article 34 of this Law;

b/ At the request of a competent state management agency in case of necessity to safeguard national defense and security interests, socio-economic interests and public interests;

c/ There is an error in contents of the granted license.

3. An electricity activity license shall be re-granted in the following cases:

a/ At the request of the licensed organization in case the unexpired license is lost or damaged;

b/ The granted license remains valid for under 6 months or has expired and the licensed organization requests the re-grant thereof. In this case, contents of the license specified in Clauses 2, 3 and 4, Article 34 of this Law remain unchanged as compared to those of the granted license;

c/ The case specified in Clause 2, Article 36 of this Law.

4. An electricity activity license may be extended at the request of the licensed organization in case the period from the time of expiration of the license to the time of transfer of assets or electricity works or the time of project operation termination does not exceed 12 months. A license may be extended only once and the expiration date of an extended license may not be beyond the time of transfer of assets or electricity works or the time of project operation termination.

5. The Government shall specify dossiers, order and procedures for grant of electricity activity licenses.

Article 33. Exemption from electricity activity licenses

1. Eligible for exemption from electricity activity licenses are:

a/ Organizations that invest in the construction of electricity generation facilities for their own use and do not sell electricity to other organizations or individuals and have their facilities’ installed output below the output level specified by the Government;

b/ Organizations engaged in electricity generation activities with their facilities’ installed output below the output level specified by the Government;

c/ Organizations trading in electricity in rural, mountainous and border areas and on islands and purchasing electricity with an output smaller than the output level specified by the Government from the distribution grid for direct sale to electricity users in rural, mountainous and border areas or on islands;

d/ Organizations engaged in the generation of electricity to the national power grid and exempt from electricity wholesale licenses;

dd/ National power system load-dispatching units and electricity market transaction administration units;

e/ Emergency power source construction and power grid work items and works specified in Article 14 of this Law that are exempt from electricity activity licenses for 6 months from the time they are put into operation and use;

g/ Electricity activities other than those specified in Clause 1, Article 30 of this Law.

2. Organizations exempt from electricity activity licenses specified in Clause 1 of this Article shall comply with operation management processes and technical regulations, regulations on electricity prices, technical and safety conditions, and obligations in the fields of electricity activities specified in this Law.

3. Provincial-level People’s Committees shall manage and inspect organizations engaged in electricity activities in their localities as specified in Clauses 1 and 2 of this Article.

4. The Government shall specify output levels eligible for exemption from electricity activity licenses specified in Clause 1 of this Article.

Article 34. Contents of an electricity activity license

1. Name and address of the head office of the licensed organization.

2. Field(s) of electricity activities.

3. Scope of electricity activities.

4. Main technical parameters of electrical works and technologies used in electricity activities in the fields of electricity generation, electricity transmission and electricity distribution.

5. Validity duration of the license.

6. Rights and obligations of the licensed organization.

Article 35. Validity duration of electricity activity licenses

1. Validity duration of granted electricity activity licenses must not exceed the operation duration of electricity generation, electricity transmission and electricity distribution projects or works.

2. The Government shall specify the validity duration of electricity activity licenses in each field of operation and in each case of grant of electricity activity licenses in accordance with this Law.

Article 36. Revocation of electricity activity licenses

1. An organization will have its electricity activity license revoked in the following cases:

a/ It wishes to cease its electricity activities or transfer its licensed electricity activities to another organization;

b/ It no longer satisfies conditions for licensed electricity activities;

c/ It fails to carry out electricity activities in the licensed fields or within the scope of electricity activities stated in the license;

d/ It leases or lends its electricity activity license for electricity activities; it modifies contents of its electricity activity license without permission;

dd/ It has forged papers in the dossier of application for electricity activity license;

e/ It fails to execute an administrative sanctioning decision of a competent state agency when violating the regulations on electricity activity licenses and fails to take remedial measures within the time limit required by the competent state agency.

2. Organizations that have their electricity activity licenses revoked as specified at Points b, c, d, dd and e, Clause 1 of this Article may request re-grant of their electricity activity licenses after fulfilling their responsibilities and obligations in accordance with law.

3. The Government shall detail this Article and specify dossiers, order and procedures for revocation of electricity activity licenses.

Article 37. Competence to grant, modify, supplement, re-grant, extend and revoke electricity activity licenses

1. The Ministry of Industry and Trade may grant licenses for electricity activities in the fields of electricity generation, electricity transmission, electricity distribution, electricity wholesale and electricity retail, except the cases specified in Clause 2 of this Article.

2. Provincial-level People’s Committees may grant licenses for electricity activities in the fields of electricity generation, electricity distribution, electricity wholesale and electricity retail in their localities under the Government’s regulations.

3. In case of necessity, the Ministry of Industry and Trade may authorize its attached units, while provincial-level People’s Committees may authorize their specialized agencies in charge of electricity, to grant, modify, supplement, re-grant, extend and revoke electricity activity licenses in accordance with this Law.

4. Agencies granting electricity activity licenses may modify, supplement, re-grant, extend and revoke such electricity activity licenses.

5. Based on socio-economic development conditions and state management requirements in each period, the Government shall detail Clauses 1 and 2 of this Article regarding the competence to grant, modify, supplement, re-grant, extend and revoke electricity activity licenses according to capacity scale, voltage level and scope of electricity activities.

Chapter V

THE COMPETITIVE ELECTRICITY MARKET AND ELECTRICITY TRADING ACTIVITIES

Section 1

THE COMPETITIVE ELECTRICITY MARKET

Article 38. Operation principles

1. To ensure openness, transparency, equality, fair competition, and non-discrimination between subjects participating in the competitive electricity market; to guarantee lawful rights and interests of electricity units and electricity users.

2. To respect and guarantee the right to freedom to choose partners and transaction forms of electricity buyers and sellers in the competitive electricity market as appropriate to different levels of the competitive electricity market.

3. The State shall regulate the operation of the competitive electricity market to ensure the sustainable development of the power system, meeting requirements of safe, stable, reliable and efficient electricity supply.

Article 39. Development of different levels of the competitive electricity market

1. The competitive electricity market shall be developed at the following levels:

a/ Competitive electricity generation market;

b/ Competitive electricity wholesale market;

c/ Competitive electricity retail market.

2. Conditions required before the commencement of the operation of the competitive electricity market at different levels:

a/ Formulation and completion of the system of legal documents;

b/ Restructuring of the electricity sector;

c/ Building and completion of the power system infrastructure and electricity market;

d/ Reform of the electricity price mechanism aimed to gradually reduce and finally eradicate cross-subsidies between groups of electricity users, between regions and areas.

3. The Prime Minister shall specify conditions and structure of the electricity sector to form and develop different levels of the competitive electricity market; operation principles and roadmap for the development of the competitive electricity market in accordance with Clause 11, Article 5 of this Law, Clause 2 of this Article and the socio-economic situation in each period.

Article 40. Participants in the competitive electricity market at different levels

1. Participants in the competitive electricity market include:

a/ Electricity generation units;

b/ Electricity transmission units;

c/ Electricity distribution units;

d/ Electricity wholesale units;

dd/ Electricity retail units;

e/ National power system load dispatch units;

g/ Electricity market transaction administration units;

h/ Electricity users.

2. The Minister of Industry and Trade shall specify the participation of the subjects specified in Clause 1 of this Article in conformity with each development level of the competitive electricity market.

Article 41. Electricity trading in the competitive electricity market at different levels

1. Electricity buyers and sellers in the competitive electricity market include:

a/ Electricity generation units;

b/ Electricity wholesale units;

c/ Electricity retail units;

d/ Electricity users.

2. Electricity trading in the competitive electricity market shall be carried out in the following forms:

a/ Electricity trading under contracts between electricity sellers and electricity buyers;

b/ Spot trading between electricity sellers and electricity buyers through electricity market transaction administration units;

c/ Electricity trading between electricity sellers and electricity buyers under electricity forward contracts or power purchase or sale option contracts or power futures contracts.

3. An electricity spot price shall be formed in each trading cycle of the competitive electricity market and announced by electricity market transaction administration units.

Article 42. Operation of, and administration of transactions on, the competitive electricity market at different levels

1. Operation of, and administration of transactions on, the competitive electricity market cover:

a/ Making of adequate and reliable forecasts of electricity supply and demand and formulation of electricity market operation plans;

b/ Spot electricity trading on the electricity market;

c/ Offering of prices and determination of market prices;

d/ Provision of ancillary services and prices thereof appropriate to each development level of the competitive electricity market;

dd/ Making of electricity bills and payments between electricity buyers and sellers specified in Clause 1, Article 41 of this Law and ancillary service providers;

e/ Provision of and publicization of information relating to operation of, and administration of transactions on, the competitive electricity market to related parties;

g/ Provision of transaction and payment services for electricity and output amounts under spot trading and for ancillary services;

h/ Receipt and settlement of recommendations related to electricity trading activities on the competitive electricity market to ensure stability and efficiency and prevent unfair competition;

i/ Supervision of the operation of the electricity market;

k/ Reporting on electricity trading activities on the electricity market.

2. The Minister of Industry and Trade shall detail Clause 1 of this Article in accordance with each development level of the competitive electricity market.

Article 43. Suspension and resumption of the operation of the spot electricity market on the competitive electricity market at different levels

1. The operation of the spot electricity market on the competitive electricity market at different levels shall be suspended when one of the following cases occurs:

a/ Emergency situations relating to catastrophes, disasters or the assurance of national defense and security;

b/ The power system operates in an extreme emergency mode, failing to ensure stable, safe and uninterrupted operation of the power system and electricity market;

c/ Other force majeure events affect normal trading activities on the spot electricity market.

2. The operation of the spot electricity market on the competitive electricity market at different levels shall be resumed as soon as causes leading to the operation suspension specified in Clause 1 of this Article are remedied.

3. The Minister of Industry and Trade shall detail this Article.

Section 2

POWER PURCHASE AGREEMENTS AND ELECTRICITY SERVICE PROVISION CONTRACTS

Article 44. Power purchase agreements, electricity service provision contracts

1. Power purchase agreements and electricity service provision contracts shall be established in written form or in the form of data messages with the same validity as those in written form in accordance with law.

2. A power purchase agreement between an electricity generation unit and an electricity buyer, except the case in which the power plant is invested in the form of public-private partnership; an electricity wholesale contract or a power system ancillary service provision contract must contain the following principal contents:

a/ Information about contracting parties, including: names, addresses, telephone numbers, and other contact methods (if any);

b/ The price of the power purchase agreement; electricity wholesale price; power system ancillary service price;

c/ Contracted electricity output (if any);

d/ Making of electricity bills, payable electricity charge amounts and payment deadline;

dd/ Rights and obligations of the contracting parties;

e/ The used language being Vietnamese. In case the electricity seller involves a foreign investor, the electricity seller and the electricity buyer may agree to also use an English version of the contract;

g/ Other contents as agreed upon by the contracting parties.

3. A power purchase agreement for domestic use must contain the following principal contents:

a/ Information about contracting parties, including: names, addresses, telephone numbers, and other contact methods (if any);

b/ Electricity service standards and quality and address of the electricity user;

c/ Electricity retail price, payment method and deadline;

d/ Rights and obligations of the contracting parties;

dd/ Responsibility for protecting the electricity buyer’s information;

e/ Cases of contract performance termination and liabilities arising from such termination;

g/ Force majeure events as specified by the civil law;

h/ Dispute settlement methods;

i/ Time of contract conclusion and validity duration of the contract;

k/ Agreements on penalties for contract breaches;

l/ Other contents as agreed upon by the contracting parties.

4. Power purchase agreements not for domestic use must contain contents as agreed upon by the contracting parties. Electricity buyers shall ensure the electricity quality specified in Article 57 of this Law. For electricity users with large monthly average electricity consumption output, measures to secure the contract performance shall be implemented as agreed upon by contracting parties.

5. The Minister of Industry and Trade shall detail Clause 2 of this Article, ensuring the conformity with different levels of the competitive electricity market.

6. The Government shall specify the implementation of guarantee measures and electricity quality mentioned in Clause 4 of this Article, and conditions for the conclusion of power purchase agreements for domestic use.

Article 45. Electricity forward contracts, power purchase or sale option contracts, power futures contracts

1. An electricity forward contract must have the following principal contents:

a/ The contracted electricity output and electricity trading price, which shall be determined on the basis of negotiation and agreement between the electricity buyer and the electricity seller;

b/ The reference price, which is the spot electricity market price calculated and announced in accordance with regulations on operation of the competitive electricity market;

c/ The obligation of the electricity buyer and the electricity seller to pay the difference between the electricity trading price and the reference price in the electricity forward contract for the committed electricity output.

2. A power purchase or sale option contract must have the following principal contents:

a/ The option in the contract, which may be the call option or put option determined on the basis of mutual agreement between the option buyer and the option seller;

b/ The contracted electricity output, electricity price, and validity duration of the contract determined on the basis of negotiation and agreement between the option buyer and the option seller;

c/ The option buyer may choose whether or not to exercise the option during the validity duration of the contract;

d/ The option seller shall be obliged to sell the electricity output at the contracted price while the option buyer exercises the call option or buys the electricity output at the contracted price when the option buyer exercises the put option;

dd/ The option premium shall be determined on the basis of the supply and demand for the power purchase or sale option contract in the electricity forward market.

3. A power futures contract must have the contents specified in Clause 1 of this Article. Power futures contracts shall be standardized and listed for trading on the forward electricity market.

4. The value-added tax mechanism applicable to transactions under power forward contracts, power purchase or sale option contracts and power futures contracts must comply with the law on value-added tax.

5. The Minister of Industry and Trade shall detail Clauses 1 and 2 of this Article.

6. The Government shall specify conditions, roadmap for establishment and development and mechanism for the operation of the forward electricity market to meet requirements on assurance of electricity supply security, the competitive electricity market’s different levels and relevant regulations.

Article 46. Electricity trading with foreign countries

1. Electricity trading with foreign countries includes trading activities with foreign countries carried out via the national power system or through direct connection not through the national power system. Electricity trading with foreign countries must ensure the national energy security, interests of the State and the people, and interests of electricity users and be conformable with the strategy for electricity trading with foreign countries and approved power development plans.

2. Power grid interconnection with foreign countries via the national power system must satisfy the following requirements:

a/ To ensure security, safety, reliability and stability in the operation of the national power system;

b/ To ensure techno-economic optimization of the power system, conforming to standards and technical regulations, and complying with the management and operation process of the national power system;

c/ Projects and works for power grid interconnection with foreign countries within land border areas must neither alter border demarcation signs nor affect national border markers.

3. In case part of the power grid is separated from the national power system to be connected with a foreign power grid, the agreement between the parties involved in the power grid interconnection shall be implemented, ensuring conformity with technical regulations and standards on the management and operation of the national power system.

4. Direct power grid interconnection with foreign countries not through the national power system shall be carried out under the agreement between the parties involved in the power grid interconnection.

5. Electricity import prices shall be determined at Vietnam’s borders and agreed upon between electricity buyers and electricity sellers in conformity with the electricity import price bracket set by the Minister of Industry and Trade, adhering to the principle of cost-effective electricity purchase.

6. Prices of electricity exported to foreign countries shall be agreed upon by electricity buyers and electricity sellers based on the following principles:

a/ Compliance with Clause 1 of this Article;

b/ For electricity exported not through the national power system, export prices must not be lower than the maximum price in the domestic electricity generation price bracket applicable to the type of electricity generation set by the Minister of Industry and Trade;

c/ For electricity exported via the national power system, export prices must be based on electricity retail prices specified in Clause 1, Article 50 of this Law and must not be lower than the maximum price in the domestic average electricity retail price bracket.

7. Based on socio-economic development needs in each period, the Prime Minister shall decide on the strategy for electricity trading with foreign countries.

8. The Minister of Industry and Trade shall approve the policy on electricity trading with foreign countries in conformity with the strategy for electricity trading with foreign countries, power development plans, and plans on implementation of approved master plans; and specify dossiers, order and procedures for formulation and approval of the electricity import price bracket and methods of establishing the electricity import price bracket applicable to specific countries, and dossiers, order and procedures for electricity trading with foreign countries.

Article 47. Direct electricity trading between large electricity users and electricity generation units

1. Cases of direct electricity trading between large electricity users and electricity generation units:

a/ Electricity trading via privately-connected power grids;

b/ Electricity trading via the national power grid.

2. Direct electricity trading between large electricity users and electricity generation units must adhere to the following principles:

a/ Compliance with the laws on planning and investment, regulations on the grant of electricity activity licenses, and electricity trading activities and other relevant laws;

b/ Conformity with different levels of the competitive electricity market.

3. The Government shall provide a mechanism for direct electricity trading between large electricity users and electricity generation units; and specify dossiers, order and procedures for, and responsibilities of the parties participating in, the mechanism for direct electricity trading between large electricity users and electricity generation units.

Article 48. Payment of electricity charges under power purchase agreements by electricity users

1. The payment of electricity charge under a power purchase agreement by users of electricity for domestic use is as follows:

a/ The electricity charge amount shall be paid by the payment method agreed upon by contracting parties; the electricity buyer making late payment shall pay a late-payment interest amount for the late payment period to the electricity seller;

b/ The late-payment interest rate shall be agreed upon by the parties but must not exceed the interest rate specified by the civil law;

c/ The electricity seller collecting excessive charge amounts shall refund them to the electricity buyer, including also interest amounts thereon, or reach agreement with the electricity buyer on offsetting of the excessive charge amounts against the subsequent period’s charge amounts;

d/ Interest rates applicable to excessive charge amounts shall be determined under Point b of this Clause;

dd/ The electricity seller shall record electricity meter readings on a monthly basis on a fixed date, except force majeure cases where it is likely to be unsafe for employees as specified in the power purchase agreement. The time for recording meter readings may be shifted one day before or after the fixed date or as agreed upon in the power purchase agreement.

2. The payment of electricity charge amounts under power purchase agreements by electricity users not for domestic use must comply with agreements between contracting parties. In case of late payment or excessive collection of charge amounts by either contracting party, he/she/it shall pay the amount for the late payment period plus interest in accordance with the civil law.

3. Review of payable electricity charge amounts:

a/ The electricity buyer may request the electricity seller to review his/her/its payable electricity charge amount by one of the following methods: directly at the electricity selling unit; by post; via electronic means or other methods as agreed upon by the parties;

b/ The electricity seller shall settle the electricity buyer’s request within 7 days after receiving such request. If disagreeing with the electricity seller’s settlement, the electricity buyer may request a competent agency or organization to organize the reconciliation in accordance with the law on reconciliation, or request the settlement by arbitration or the court in accordance with law;

c/ Pending the settlement of it/his/her request, the electricity buyer shall still pay his/her/its electricity charge amounts; the electricity seller may not terminate the electricity supply.

4. If the electricity buyer fails to pay an electricity charge amount as agreed upon in the power purchase agreement and has been notified by the electricity seller of the charge payment twice at an interval of at least 3 days, the electricity seller may terminate the electricity supply. The time for the electricity seller to terminate the electricity supply shall be agreed upon by both parties and clearly stated in the power purchase agreement but must not exceed 10 days after the electricity seller sends the first notification. The electricity seller shall notify the electricity buyer of the electricity supply termination time at least 24 hours in advance and is not liable for damage caused by the termination. After the electricity buyer pays his/her/its electricity charge amount and carries out procedures for requesting electricity supply resumption in accordance with the electricity law, the electricity seller shall resume the power supply in accordance with the electricity law.

5. Electricity bills shall be made based on the meter reading cycle. The form of notification of payment of electricity charge amounts shall be agreed upon by contracting parties in power purchase agreements.

6. The determination of payable electricity charge amounts must comply with the regulations of the Minister of Industry and Trade in case electricity metering equipment is inaccurate, failing to meet technical measurement requirements, the electricity buyer uses electricity during the period the electricity meters malfunction because the electricity metering system is damaged or uses electricity during the period the electricity meter is lost.

7. The Government shall specify the recording of electricity meter readings.

Article 49. Termination or reduction of electricity supply to electricity users

1. The termination or reduction of electricity supply to electricity users must comply with law and concluded power purchase agreements. Electricity buyers and electricity sellers shall reach agreement on cases and forms of notification of the termination or reduction of electricity supply in power purchase agreements.

2. Cases of termination or reduction of electricity supply:

a/ Upon the occurrence of force majeure events or incidents beyond the electricity seller’s control that are likely to be unsafe for people and equipment or due to an electricity shortage that threatens the power system’s safety, the electricity seller may terminate or reduce the electricity supply; and shall notify the electricity buyer of the electricity supply status and the projected time of electricity supply resumption within 24 hours after the electricity supply is terminated or reduced;

b/ If wishing for repair or maintenance or having other needs, the electricity seller shall notify the electricity buyer of the time of termination or reduction of the power supply at least 5 days in advance by using the form of notification as agreed upon in the power purchase agreement;

c/ Failure to pay the electricity charge amounts specified in Clause 4, Article 48 of this Law;

d/ At the request of a competent state agency in case an organization or individual violates this Law or other laws and is subject to the application of the measure of electricity supply termination specified by the relevant laws.

3. The Minister of Industry and Trade shall specify procedures for electricity supply termination or reduction mentioned in Clause 2 of this Article.

Section 3

ELECTRICITY PRICES AND ELECTRICITY SERVICE PRICES

Article 50. Electricity prices

1. Electricity retail prices are as follows:

a/ Electricity retail prices shall be established by electricity retail units based on the electricity pricing policy, the price bracket of average electricity retail prices, the mechanism for adjustment of average electricity retail prices and the retail electricity tariff structure;

b/ Electricity retail prices shall be specified by groups of electricity users for their production, trade, public non-business activities and domestic use in conformity with the socio-economic situation in each period and different levels of the competitive electricity market. Time-of-use (TOU) electricity retail prices, including peak, off-peak and normal hour rates, shall be applied to eligible electricity users. For the group of users using electricity for domestic use, an increasing block tariff (IBT) for residential electricity shall be applied to electricity users that are not yet eligible to participate or refuse to participate in electricity trading on the competitive electricity market.

2. Electricity wholesale prices under electricity wholesale contracts shall be agreed upon by electricity units under Point e, Clause 12, Article 5 of this Law.

3. The competence to set, submit, approve and decide on electricity prices is as follows:

a/ The Government shall provide the mechanism and time for adjustment of average electricity retail prices;

b/ The Prime Minister shall provide the electricity retail tariff structure and the price bracket for average electricity retail prices;

c/ The Ministry of Industry and Trade shall formulate and submit the provisions of Points a and b of this Clause to the Government and the Prime Minister for promulgation; submit to the Prime Minister for decision electricity prices in rural, mountainous, border and island areas not yet connected to the national power grid as appropriate to different levels of the competitive electricity market; the roadmap for reduction of cross-subsidies in electricity prices as specified in Clause 12, Article 5 of this Law; the roadmap for renovation of the electricity retail tariff structure that comprises multi-component retail prices with at least two components such as capacity price, energy price, fixed price, variable price or other price components (if any) applicable to groups of electricity users as soon as technical conditions permit; and appropriate electricity pricing mechanisms for groups of electricity users specified in Clause 12, Article 5 of this Law;

d/ The Minister of Industry and Trade shall specify methods of determining electricity wholesale prices; and methods of setting and order and procedures for approving the electricity wholesale price bracket.

Article 51. Electricity service prices

1. Electricity generation service prices are as follows:

a/ Prices in a power purchase agreement include a fixed price component determined as an average level of the project’s economic life; an operation and maintenance price component; and a variable price component;

b/ The power purchase agreement’s price for the base year shall be agreed upon by electricity units. The electricity seller and the electricity buyer may conclude a power purchase agreement with a fixed price for each contract year on the basis of keeping the fixed price component unchanged;

c/ If failing to reach agreement on the power purchase agreement’s price, the electricity seller and the electricity buyer may agree on a temporary price to be applied until they agree on the official price;

d/ In case bidding is organized to select the power plant project investor, the power purchase agreement’s price shall be determined by the electricity seller and the electricity buyer under Points a, b, and c of this Clause and Clause 2, Article 19 of this Law;

dd/ Electricity generation service prices applied for power plants invested in the form of public-private partnership must comply with Article 16 of this Law;

e/ Small-sized renewable energy power plants must apply the avoidable cost tariff mechanism;

g/ The Minister of Industry and Trade shall specify methods of determining electricity generation service prices mentioned in this Clause.

2. The electricity buyer and the electricity seller shall agree on the power purchase agreement’s price based on the principle of ensuring the power plant’s recovery of investment costs (if any) and electricity production and business costs, and agree on a reasonable profit margin, for the following power plants:

a/ Small-sized renewable energy power plants specified at Point e, Clause 1 of this Article after the avoidable cost tariff application period expires;

b/ Power plants that have been put into commercial operation and the period of application of the power purchase agreement’s price has expired;

c/ Power plants with expired build-operate-transfer (BOT) contracts and transferred to the Government under Article 16 of this Law.

3. The Minister of Industry and Trade shall specify dossiers, order, procedures for, and methods of, determination of the electricity generation price bracket; and approve the electricity generation price bracket set and submitted by electricity units.

4. The Minister of Industry and Trade shall specify methods of determining power plants’ electricity generation costs until they participate in the competitive electricity market, for:

a/ The power plants specified in Clause 2, Article 5 of this Law;

b/ The power plants that coordinate with the ones mentioned in Clause 2, Article 5 of this Law in operation in order to support the system regulation as included in the list promulgated by the Ministry of Industry and Trade;

c/ Other power plants that fail to determine electricity generation service prices.

5. In case methods of determining electricity generation prices and brackets specified in Clauses 1 and 3 of this Article are not yet available for expanded hydroelectricity projects specified at Point b, Clause 1, Article 18 of this Law, or renewable energy source projects in association with investment in electricity storage systems specified in Clause 3, Article 20 of this Law, the electricity buyer and the electricity seller shall agree on the formulation of methods of determining electricity generation service prices under Clause 1 of this Article as appropriate to specific conditions of power plants.

6. The Minister of Industry and Trade shall provide:

a/ Methods of setting, and dossiers, order and procedures for approving, prices of electricity transmission services, electricity distribution services, power system ancillary services, power system operation dispatch services and electricity market transaction administration services;

b/ Guiding methods and forms of pricing for transmission power grids invested by non-state economic sectors as specified in Clause 4, Article 5 of this Law.

7. The Minister of Industry and Trade shall approve prices of electricity transmission services, electricity distribution services, power system ancillary services, power system operation dispatching services and electricity market transaction administration services that are set and submitted by electricity units.

8. Based on special characteristics of power plants in each period, the Minister of Industry and Trade shall decide on:

a/ The application of the electricity generation price bracket to offshore wind power plants in accordance with this Law, and power plants specified in Clause 2 of this Article;

b/ Multi-component electricity price mechanism, comprising capacity price, energy price, fixed price and variable price components or other price components (if any).

Article 52. Bases for setting and adjustment of electricity prices and electricity service prices

1. Bases for setting electricity prices include:

a/ Electricity pricing policy;

b/ The country’s socio-economic development conditions; 

c/ Electricity supply and demand;

d/ Reasonable electricity production and business costs and reasonable profits of electricity units;

dd/ Different levels of the competitive electricity market;

e/ Annually audited financial statements of electricity units.

2. The adjustment of an average electricity retail price is as follows:

a/ The electricity retail price shall be reflected and adjusted in a timely manner based on actual fluctuations of input specifications, payment of reasonable and valid costs with reasonable profits aimed to preserve and develop enterprises’ business capital in conformity with socio-economic conditions in each period and different levels of the competitive electricity market;

b/ When the electricity retail market operates, retail electricity prices shall be applied under the market mechanism;

c/ The Government shall detail Point a of this Clause.

3. Electricity units shall make and publicize annual electricity generation and trading costs. The publicization form and contents must comply with law.

4. Bases for adjustment of electricity generation service prices in concluded power purchase agreements:

a/ Changes in policies or laws promulgated by competent state agencies that exert adverse impacts on lawful interests of electricity sellers or electricity buyers;

b/ The realization of requests of competent state agencies for review and adjustment of electricity generation service prices;

c/ The fact that electricity sellers are assigned to invest in construction, upgrading or renovation of work items (beyond the scope of investment management by electricity generation units under concluded power purchase agreements) to implement master plans or to meet new requirements of the law-specified standards and technical regulations;

d/ The optimization of management and production processes, technological changes and innovation in electricity generation activities.

Chapter VI

LOAD DISPATCH AND OPERATION OF THE NATIONAL POWER SYSTEM

Article 53. Principles and requirements for load dispatch and operation of the national power system

1. The load dispatch and operation of the national power system must adhere to the following principles:

a/ Safety, stability, quality and reliability;

b/ Compliance with the power system’s technical constraints;

c/ Satisfaction of requirements for flood prevention and control, irrigation and drainage, maintenance of the minimum flow and downstream water supply in accordance with law;

d/ Implementation of agreements on electricity output and capacity in power purchase agreements and electricity export and import contracts on the basis of ensuring safety for the national power system and interests of the State and the people, and compliance with the constraints on primary fuel consumption for electricity generation as approved by competent state agencies;

dd/ Assurance of the power system’s techno-economic optimization;

e/ Assurance of equality in the mobilization of capacity and electricity of electricity generation units within the national power system.

2. Technical requirements and operational command of the national power system:

a/ Electricity generation equipment, power grids and auxiliary equipment connected to transmission grids and distribution grids must satisfy requirements for connection and operation techniques of the national power system;

b/ The national power system shall be commanded by the load dispatch level with the control authority, which comprises the national load dispatch level, regional load dispatch level and distribution load dispatch level;

c/ Units managing the operation of electricity sources and power grids shall obey the commands of the load dispatch level with the control authority; formulate equipment maintenance and repair plans within their management scope to ensure safe operation and minimize possible  incidents; and coordinate with related units in order to ensure safe, stable and reliable operation of the power system.

3. In case a state of emergency occurs, seriously threatening the electricity supply capacity, the Minister of Industry and Trade shall decide on the operation and mobilization of power plants to ensure the electricity supply. Power plants shall abide by the mobilization, thereby ensuring the safe operation of generating sets and safety equipment, and report to their owners on the execution of mobilization orders.

4. The Minister of Industry and Trade shall specify functions, tasks and delegation of control powers of load dispatch levels with the control authority; principles of load dispatch, operational procedures, incident remediation, black start, and restoration of the national power system; technical requirements, connection, electricity metering and operation of the electricity transmission and distribution systems; direct the formulation of electricity supply plans; and inspect and supervise the electricity supply situation and the power system’s operation to ensure the electricity supply and demand balance.

5. The Government shall specify states of emergency that seriously threaten the electricity supply capacity specified in Clause 3 of this Article.

Article 54. Electricity demand management

1. Electricity demand management covers the promotion and provision of guidance on change of electricity consumption patterns; the prevention of waste, reduction of power loss; reduction of peak load and reduction of load differences between peak hours and off-peak hours.

2. Electricity units shall conduct load research; formulate, and organize the implementation of, electricity demand management programs in order to optimize the power system operation.

3. Electricity users shall participate in electricity demand management programs to optimize the power system operation and reduce the capacity difference between peak hours and off-peak hours in the power system load curve.

4. The Ministry of Industry and Trade shall formulate and submit to the Prime Minister for approval the national electricity demand management program as appropriate to the socio-economic situation in each period, which states electricity demand management measures, financial mechanisms and participation responsibilities of related parties. The Minister of Industry and Trade shall specify the electricity demand management.

Article 55. Electricity saving in the electricity generation, electricity transmission, electricity distribution and electricity use

1. Electricity saving in the electricity generation:

a/ Electricity generation units shall select and apply advanced, environmentally friendly, high-–performance electricity generation technologies; manage and apply optimal operation modes for electricity generation equipment in order to save fuels and other energy sources used for electricity generation, contributing to ensuring the national energy security and environmental protection;

b/ The self-consumed power system in power plants must be designed and installed in a reasonable manner, and arranged for use during the operation to meet self-consumed electricity saving requirements;

c/ The Minister of Industry and Trade shall specify self-consumed electricity consumption norms for different types of power plants.

2. Electricity saving in electricity transmission and electricity distribution is as follows: The systems of electricity transmission and electricity distribution lines, and power stations must satisfy advanced techno-economic specifications and standards, be operated with optimal modes to meet the requirements on stable, safe, and uninterrupted electricity supply, and take into consideration the economic efficiency of solutions to reduce power loss.

3. Electricity saving in the electricity use:

a/ Organizations and individuals using electricity for production have the following responsibilities: to renovate and rationalize production processes; to apply technologies and electrical equipment with low energy consumption rates to save electricity; to ensure the capacity factor in conformity with standards and technical regulations; to minimize the under-load use of electrical equipment;

b/ Organizations and individuals manufacturing or importing electricity-consuming equipment shall satisfy minimum energy consumption rates in order to reduce electricity costs, contributing to electricity saving;

c/ Electricity-using organizations shall issue electricity saving regulations for their own application.

Article 56. Electricity metering

1. Electricity sellers, electricity generation, transmission and distribution units shall invest in, install and manage all electricity metering equipment and ancillary equipment for electricity metering, and systems for collecting and managing electricity metering recordings, unless otherwise agreed by concerned parties provided such agreements ensure interests of the parties and are not contrary to law.

2. Electricity metering equipment must meet technical measurement requirements and be inspected, calibrated and tested in accordance with the law on measurement.

3. Positions for installation of electricity meters must ensure safety and aesthetics and be convenient for electricity buyers to check electricity meter readings and for electricity sellers to record electricity meter readings.

4. Electricity metering equipment owners shall organize the inspection, calibration and testing of electricity metering equipment according to requirements and deadlines specified in the law on measurement.

5. If suspecting that an electricity metering equipment is inaccurate, the electricity buyer may request the electricity seller to inspect it; the electricity seller shall inspect, repair or replace it. For cases of electricity retail, the electricity seller shall complete the inspection, repair or replacement within 3 days after receiving the electricity buyer’s request. If disagreeing with results of the inspection, repair or replacement by the electricity seller, the electricity buyer may request the specialized agency in charge of electricity under the provincial-level People’s Committee to organize the inspection. Within 15 days after receiving the electricity buyer’s request, the specialized agency in charge of electricity under the provincial-level People’s Committee shall organize the inspection with an independent inspection organization.

6. Expenses for the inspection of electricity metering equipment specified in Clause 5 of this Article:

a/ If the independent inspection organization determines that the electricity metering equipment meets technical measurement requirements, the electricity buyer shall pay inspection expenses;

b/ If the independent verification organization determines that the electricity metering equipment fails to meet the technical measurement requirements, the electricity seller shall pay the inspection expenses and concurrently carry out the collection of charge arrears or refund collected charge amounts for electricity in accordance with law and the concluded power purchase agreement.

Article 57. Assurance of electricity quality

1. Electricity generation, transmission and distribution units shall ensure capacity, electricity amounts and duration of electricity supply under concluded contracts; and voltage and frequency according to relevant technical requirements set by the Minister of Industry and Trade. If failing to ensure the voltage, frequency, capacity, electricity amounts and duration of electricity supply as stated in concluded contracts, thereby causing damage to electricity buyers, electricity sellers shall pay compensation to electricity buyers in accordance with law.

2. Electricity buyers shall ensure safe operation of their electricity-consuming equipment so as to neither cause incidents to the power system nor affect the voltage and frequency quality of the power grid.

Chapter VII

RIGHTS AND OBLIGATIONS OF ELECTRICITY UNITS AND ELECTRICITY USERS

Article 58. Rights and obligations of electricity units that are granted electricity activity licenses

1. Electricity units that are granted electricity activity licenses have the following rights:

a/ To carry out electricity activities in accordance with their electricity activity licenses;

b/ To request the re-grant, extension, modification or supplementation of fields of electricity activities after satisfying the law-specified conditions;

c/ To be provided with necessary information in accordance with law in the fields stated in their electricity activity licenses;

d/ Other rights provided by law.

2. Electricity units that are granted electricity activity licenses have the following obligations:

a/ To carry out electricity activities in accordance with their electricity activity licenses;

b/ To maintain conditions for the licensed electricity activities throughout the period stated in their electricity activity licenses;

c/ To report to the licensing agency at least 60 days before ceasing their electricity activities;

d/ To refrain from leasing, lending or arbitrarily modifying contents of electricity activity licenses;

dd/ To request the modification or supplementation of their electricity activity licenses when their names or business registration addresses are changed;

e/ To report to the licensing agency on their operation in the licensed fields before March 1 every year;

g/ Other obligations specified by law.

Article 59. Rights and obligations of electricity generation units

1. Electricity generation units have the following rights:

a/ To connect to the national power system after meeting relevant conditions and technical requirements;

b/ To request competent state agencies to amend or supplement relevant technical regulations and techno-economic norms;

c/ To sell electricity to electricity buyers under power purchase agreements;

d/ To sell electricity to electricity buyers through power forward contracts, power purchase or sale option contracts, or power futures contracts, and offer spot prices for electricity on the competitive electricity market;

dd/ To be provided with necessary information related to electricity generation activities;

e/ Other rights provided in this Law and other relevant laws.

2. Electricity generation units have the following obligations:

a/ To ensure safe, stable and reliable operation of turbines and equipment in their power plants; to prepare sufficient fuel to serve different operation modes and operation requirements of the power system in order to ensure safe and uninterrupted electricity supply;

b/ To cease electricity generation or reduce electricity generation levels if other solutions are unavailable in case there exist risks threatening human life or equipment safety;

c/ To comply with regulations on load dispatch and operation of the power system, electrical safety and the electricity market;

d/ To comply with operation modes, command orders and control instructions of the load dispatch level with the control authority;

dd/ To immediately notify the load dispatch level with the control authority and related organizations and individuals of the occurrence of an electricity generation incident;

e/ To invest in power stations, electricity meters and electric wires to meters for electricity buyers unless otherwise agreed with electricity transmission units, electricity distribution units or electricity buyers;

g/ To report information about the availability and reserve capacity of their power plants and other relevant information as requested by the national power system load dispatch unit, electricity market transaction administration units or competent state agencies;

h/ To carry out the collection, treatment and recycling of ash and slag generated from thermal power plants and discarded photovoltaic panels, electricity storage devices, wind turbine blades, and other discarded electrical equipment as specified in the law on environmental protection;

i/ Other obligations specified in this Law and other relevant laws.

Article 60. Rights and obligations of electricity transmission units

1. Electricity transmission units have the following rights:

a/ To connect to the national power system after meeting relevant conditions and technical requirements;

b/ To request competent state agencies to amend or supplement relevant technical regulations and techno-economic norms;

c/ To formulate and submit electricity transmission service prices for approval;

d/ To provide electricity transmission services under regulations;

dd/ To be provided with necessary information related to electricity transmission activities;

e/ To enter areas managed by electricity buyers to operate, maintain, repair and replace their electrical equipment;

g/ Other rights provided in this Law and other relevant laws.

2. Electricity transmission units have the following obligations:

a/ To ensure the provision of transmission services and ancillary services to related parties, and the right to connection of organizations and individuals engaged in electricity activities to transmission grids assigned for operation management, except the case in which such grids are overloaded as certified by the Ministry of Industry and Trade;

b/ To cease electricity generation or request the load dispatch level with the control authority to reduce electricity transmission level if other solutions are unavailable in case there exist risks threatening human life or equipment safety.

c/ To formulate investment plans for, and invest in, the development of transmission grids in order to meet electricity transmission needs under power development plans and plans on implementation of power development plans; to invest in electricity metering equipment and ancillary equipment, unless otherwise agreed with electricity generation units, electricity distribution units or electricity users;

d/ To ensure safe, stable and reliable operation of power grids and equipment under their operation management;

dd/ To comply with regulations on load dispatch and operation of the power system, electrical safety and the electricity market;

e/ To comply with operation modes, command orders and control instructions of the load dispatch level with the control authority;

g/ To immediately notify the load dispatch level with the control authority and related organizations and individuals of the occurrence of incidents in transmission grids;

h/ To report information related to the availability and reserve capacity of equipment and other relevant information as requested by the national power system load dispatch unit, electricity market transaction administration units or competent state agencies;

i/ Other obligations specified in this Law and other relevant laws.

Article 61. Rights and obligations of electricity distribution units

1. Electricity distribution units have the following rights:

a/ To connect to the national power system when meeting relevant conditions and technical requirements;

b/ To request competent state agencies to amend and supplement relevant technical regulations and technical-economic norms;

c/ To set and submit for approval electricity distribution service prices; to provide electricity distribution services under regulations;

d/ To enter areas managed by electricity buyers to operate, maintain, repair or replace their electrical equipment;

dd/ To be provided with necessary information on electricity distribution activities;

e/ Other rights provided by this Law and other relevant laws.

2. Electricity distribution units have the following obligations:

a/ To ensure the provision of electricity distribution services to electricity users, electricity retail units, and electricity wholesale units in conformity with technical, service quality and safety requirements under contracts, except case where distribution power grids are overloaded as certified by specialized agencies in charge of electricity under provincial-level People’s Committees;

b/ To formulate plans on investment in the development of distribution power  grids, and invest in the development of distribution power  grids to meet the electricity demand under electricity supply network development plans in provincial master plans; to formulate plans on implementation of provincial master plans which include contents on electricity supply network development plans; to invest in meters and transmission lines to meters for electricity buyers, unless otherwise agreed upon with electricity buyers;

c/ To comply with regulations on load dispatch and operation of the power system, electrical safety and the electricity market, operation methods at the request of the dispatch level with the control competence and carry out the load adjustment, cease or reduce the electricity supply under regulations in order to ensure the safe and uninterrupted operation of the power system;

d/ Upon occurrence of risks threatening human life and equipment safety, to cease or reduce the electricity distribution level if other solutions are unavailable;

dd/ To report on information on availability and reserve level of equipment, and other related information at the request of the national power system load dispatching unit, electricity market transaction administration unit or competent state agencies;

e/ In cases of emergency seriously threatening the capacity of electricity supply assurance, to mobilize backup generators of electricity users to make up for the supply deficit of the national power system;

g/ Other obligations specified by this Law and other relevant laws.

Article 62. Rights and obligations of electricity wholesale units

1. Electricity wholesale units have the following rights:

a/ To purchase electricity directly from electricity sellers under power-whole purchase agreements;

b/ To use electricity transmission, electricity distribution, power system load dispatch and electricity market transaction administration services as suitable to each level of the competitive electricity market;

c/ To purchase and sell electricity on the competitive electricity market under power whole-purchase agreements, power forward contracts, power purchase or sale option contracts and power futures contracts; to set electricity wholesale prices within the approved electricity wholesale price bracket;

d/ To be provided with necessary information on electricity wholesale activities;

dd/ Other rights provided by this Law and other relevant laws.

2. Electricity wholesale units have the following obligations:

a/ To sell electricity of the volume and quality and at the prices agreed upon in contracts;

b/ To pay compensations when causing damage to electricity buyers or electricity sellers in accordance with law;

c/ To comply with regulations on operation of the competitive electricity market, electrical safety; to provide necessary information on participation in the competitive electricity market at the request of the national power system load dispatching unit, electricity market transaction administration units or competent state agencies;

d/ Other obligations specified by this Law and other relevant laws.

Article 63. Rights and obligations of electricity retail units

1. Electricity retail units have the following rights:

a/ To purchase electricity directly from electricity sellers under power purchase agreements;

b/ To compete for electricity purchase and sale on the competitive electricity market under power purchase agreements, power forward contracts, power purchase or sale option contracts and power futures contracts; to set electricity retail prices on the competitive electricity retail market under regulations;

c/ To use electricity transmission, distribution, power system load dispatch and electricity market transaction administration services as suitable to each level of the competitive electricity market;

d/ To enter areas managed by electricity buyers to check and record electricity meter readings and contact customers;

dd/ To be supplied with necessary information on electricity retail activities;

e/ Other rights provided by this Law and other relevant laws.

2. Electricity retail units have the following obligations:

a/ To sell electricity of the volume and quality and at the prices agreed upon in contracts;

b/ To pay compensations for damage caused to electricity buyers or electricity sellers in accordance with law;

c/ To provide necessary information on retailed electricity volumes at the request of competent state agencies;

d/ To inspect the performance of power purchase agreements;

dd/ To comply with regulations on operation of the competitive electricity market and electrical safety;

e/ Other obligations specified by this Law and other relevant laws.

Article 64. Rights and obligations of the national power system load dispatch unit

1. The national power system load dispatch unit has the following rights:

a/ To command and direct electricity generating units, electricity transmission units and electricity distribution units in implementing plans and modes of operation of the national power system;

b/ To command the response to cases of emergency or abnormal circumstances in the national power system; to mobilize capacity and output of power plants in the national power system; to command the operation of transmission power grids and distribution power grids; to cease or reduce the electricity supply upon occurrence of risks threatening the safe and reliable operation of the national power system;

c/ To adjust plans and modes of mobilizing capacity of power plants in cases of emergency or abnormal circumstances in the national power system in order to ensure the safe and stable operation of the national power system;

d/ To set and submit for approval service prices of the load dispatching and operation of the power system;

dd/ To request related electricity units to provide information on technical properties, readiness to participate in the operation and load carriage of electricity generation, transmission and distribution equipment; electricity demand of customers in order to determine modes of operation of the national power system;

e/ To evaluate the supply-demand balance in the power system;

g/ To enjoy preferential mechanisms and policies promulgated by the Government to ensure that infrastructure and other essential systems can serve the load dispatching and operation of the power system meeting operation requirements, thus contributing to ensuring the electricity supply;

h/ To enjoy preferential mechanisms and policies promulgated by the Government to attract high-quality human resources for the load dispatching of the power system;

i/ Other rights provided by this Law and other relevant laws.

2. The national power system load dispatch unit has the following obligations:

a/ To operate the national power system, ensuring its safe, stable and economical operation;

b/ To comply with the regulations on load dispatching and operation of the national power system, electricity transmission system and electricity supply system promulgated by the Minister of Industry and Trade;

c/ To annually formulate the mode of operation of the national power system and submit it to the Minister of Industry and Trade for approval; to formulate, approve and implement modes of operation of other power systems;

d/ To notify capacity, output and ancillary services mobilized to electricity market transaction administration units;

dd/ To manage, operate and maintain infrastructure of the telecoms-information system and specialized systems serving the load dispatching of the power system;

e/ To promptly report to the Ministry of Industry and Trade on, and to notify the electricity market transaction administration units of, cases of emergency or abnormal circumstances seriously threatening the safe and reliable operation of the national power system;

g/ Other obligations specified by this Law and other relevant laws.

Article 65. Rights and obligations of electricity market transaction administration units

1. Electricity market transaction administration units have the following rights:

a/ To operate the spot electricity market;

b/ To request related electricity units to provide data to serve the transaction administration on the competitive electricity market in accordance with law;

c/ To invest in, install, manage and operate the metering data collection system and the metering data management system under its management according to each level of the competitive electricity market;

d/ To invest in and develop information infrastructure of the electricity market under its management to serve the operation of the electricity market according to different levels of the competitive electricity market;

dd/ To set and submit for approval service prices of the electricity market transaction administration;

e/ To enjoy preferential mechanisms and policies promulgated by the Government to ensure infrastructure facilities and other essential systems serving the administration of the electricity market;

g/ To enjoy preferential mechanisms and policies promulgated by the Government to attract high-quality human resources for the administration of the electricity market;

h/ Other rights provided by this Law and other relevant laws.

2. Electricity market transaction administration units have the following obligations:

a/ To comply with regulations on the competitive electricity market;

b/ To regulate and coordinate electricity purchase and sale transactions and ancillary services on the competitive electricity market;

c/ To formulate, and announce information on, electricity market operation plans for the next year, next month and next week, and work out schedules for the next day and next cycle;

d/ To set and announce spot electricity prices and ancillary service prices;

dd/ To provide transaction and payment services for electricity and capacity traded on the spot electricity market and ancillary services as suitable to each level of the competitive electricity market;

e/ To manage, operate and maintain the electricity market information infrastructure and telecommunications infrastructure, and specialized information serving the load dispatching of the power system and the transaction administration of the electricity market;

g/ To receive, appraise, evaluate and certify registration dossiers for participation in the electricity market of units wishing to participate in the electricity market;

h/ To monitor the registration of members to participate in the electricity market;

i/ Other obligations specified by this Law and other relevant laws.

Article 66. Rights and obligations of electricity users

1. Electricity users have the following rights:

a/ To be provided with adequate electricity volume and output, be assured of electricity quality as agreed upon in contracts;

b/ To request electricity sellers to promptly resume the electricity supply after blackouts;

c/ To be compensated for damage caused by electricity sellers in accordance with law;

d/ To request electricity sellers to check the electricity service quality, the precision of electricity meters and payable electricity charges;

dd/ To be provided with necessary information on electricity retail services and guidance on electrical safety;

e/ To select electricity sellers on the competitive electricity retail market;

g/ Other rights provided in this Law and other relevant laws.

2. Electricity users have the following obligations:

a/ To pay electricity charges fully and on time and to fulfill other agreements in power purchase agreements;

b/ To use electricity in a safe, thrifty and efficient manner; to comply with regulations and programs on management of the electricity demand to ensure safe and uninterrupted operation of the power system;

c/ To use electricity transmission, electricity distribution, power system load dispatching, and electricity market transaction administration services as suitable to each level of the competitive electricity market;

d/ To use electricity for right subjects and purposes as stated in power purchase agreements;

dd/ To promptly notify electricity sellers of abnormal circumstances upon detection thereof, which may cause blackouts or unsafety to people and property;

e/ To create conditions for electricity sellers, electricity transmission units and electricity distribution units to check, and record electricity meter readings, maintain, repair, install and replace the electricity metering system and electricity equipment of electricity transmission units and electricity distribution units, and contact customers;

g/ To invest in electricity transmission lines from meters’ outlets to electricity-using places, except the case specified in Clause 2, Article 17 of this Law; to design power systems in works under their management up to technical standards and regulations in accordance with law;

h/ To ensure that electrical appliances satisfy technical requirements and requirements on electrical safety and fire prevention and fighting;

i/ To pay compensations for damage caused to electricity sellers in accordance with law;

k/ To protect electricity meters under their management as agreed upon in power purchase agreements; to refrain from arbitrarily removing or moving electricity meters. When there is a need to move electricity meters to other positions, electricity users shall obtain the consent of electricity sellers and bear moving costs;

l/ Other obligations specified in this Law and other relevant laws.

3. Large electricity users have the following rights:

a/ The rights provided in Clause 1 of this Article, and the right to use electricity transmission or distribution services under contracts signed with electricity transmission units and electricity distribution units;

b/ When participating in the competitive electricity market, to buy electricity directly from electricity generation units under power purchase agreements, power forward contracts, power purchase or sale option contracts, power futures contracts, and power spot purchase contracts on the competitive electricity market.

4. Large electricity users have the following obligations:

a/ The obligations specified in Clause 2 of this Article;

b/ To follow the electricity-using regime at the request of the load dispatching level with the control right, apply measures to ensure electricity quality, electrical safety and other contents agreed upon in power purchase agreements and contracts signed with electricity transmission or distribution units.

Chapter VIII

PROTECTION OF ELECTRICITY WORKS AND SAFETY IN THE FIELD OF ELECTRICITY

Section 1

PROTECTION OF ELECTRICITY WORKS AND ELECTRICAL SAFETY

Article 67. Electricity work safety protection

1. Electricity units, organizations and individuals shall protect the safety of overhead electricity transmission lines, underground electricity cables, transformer stations, power plants and other electricity works in accordance with law. Land users shall create favorable conditions for electricity units to access electricity works to check, repair and maintain equipment and remedy incidents.

2. Upon the construction, renovation, repair or expansion of electricity works or other works, which may affect one another, electricity units and related organizations and individuals shall:

a/ Coordinate with one another in synchronously implementing measures to ensure electrical and construction safety;

b/ Promptly notify competent state agencies and related organizations and individuals upon the detection of risks and phenomena of electricity work hazard;

c/ Pay compensations for damage caused to organizations and individuals in accordance with the civil law.

3. If no longer being used, electricity works and electrical equipment shall be handled, dismantled and managed to ensure safety in accordance with the laws on construction and environmental protection.

4. Ministries, ministerial-level agencies, government-attached agencies and People’s Committees at all levels shall, within the ambit of their functions, tasks and powers, organize the implementation of the provisions on electricity work safety protection of this Law and other relevant laws; check, prevent and promptly handle violations of the law on electricity work safety protection.

5. The Government shall detail Clauses 1 and 2 of this Article.

Article 68. Safety corridors of electricity works

1. A safety corridor of an electricity work means an area surrounding such electricity work, which requires protection measures to ensure safety for people and such electricity work. It shall be determined to be situated above ground, on the ground, under the ground, on water surface or underwater, depending on the type of electricity work.

2. Safety corridors of electricity works include:

a/ Safety corridors of overhead electricity transmission lines;

b/ Safety corridors of underground electricity cables;

c/ Safety corridors of transformer stations;

d/ Safety corridors of wind power works and other electricity source works.

3. The use of land areas within safety corridors of electricity works is as follows:

a/ Land areas within safety corridors of electricity works may continue to be used for the proper purposes specified by law; the land use must not affect the safety protection of electricity works. Land users are entitled to compensations and support due to their limited access to land or land-attached property damage in accordance with the land law;

b/ In case the use of land areas within safety corridors of electricity works affects the safety of such electricity works, land users shall coordinate with electricity units to take remedial measures;

c/ In case no remedial measures can be taken under Point b of this Clause, the State shall recover land and pay compensations in accordance with law. The payment of compensation, provision of support for resettlement upon the land recovery by the State within safety corridors of electricity works shall be carried out in accordance with the land law.

d/ Cases in which the safety corridor of an electricity work overlaps with that of another work shall be handled under the Government’s regulations.

4. Safety corridors of electricity works at sea constitute part of sea areas assigned for implementation of electricity projects. The use of sea areas within safety corridors of electricity works at sea must comply with the following regulations:

a/ Economical and efficient use of marine resources;

b/ Safety for people, electricity works, and lawful exploitation and use of marine resources in accordance with law;

c/ Safety for organism species, wild animals and migratory birds in accordance with the law on biodiversity and treaties to which the Socialist Republic of Vietnam is a contracting party.

5. For houses or structures located outside safety corridors of electricity works with their electrical intensity exceeding the permitted limits, owners of such houses or structures and land users shall be compensated and provided with support like those located within safety corridors of electricity works under Clause 3 of this Article.

6. Trees within and outside safety corridors of electricity works must be within a safe distance for electrical discharge for different voltage levels. Tree owners or land users must prune part of trees that encroach the law-specified safety distance for electrical discharge. If trees encroach the law-specified safety distance for electrical discharge, causing incidents in power grids, tree owners or land users shall, depend on severity of damage, be handled in accordance with law. Electricity units shall coordinate with local authorities in organizing the pruning of trees that encroach the law-specified safety distance in areas where tree owners remain unidentifiable.

7. Houses, structures and activities must satisfy safety conditions for existence within safety corridors of electricity works. Owners or users of houses and structures permitted to exist within safety corridors of electricity works may not use roofs or any part of such houses or structures that encroach the law-specified safety distance for electrical discharge for different voltage levels and shall comply with regulations on electricity work safety when repairing or renovating their houses or structures.

8. No houses and structures with people living or working therein are permitted to exist within safety corridors of overhead power lines with a voltage of 500 kV or higher, except specialized structures serving the operation of such power grids.

9. People’s Committees at all levels shall, within the ambit of their tasks and powers, formulate and implement plans for ground clearance and resident relocation and resettlement; payment compensation for damage caused to land, property and costs of investment in land; manage and protect land areas and sea areas reserved for projects and safety corridors of electricity works.

10. The Government shall detail this Article.

Article 69. General provisions on electrical safety

1. Individuals directly engaged in the construction, repair, renovation, management and operation of the power system and electricity works; the inspection of electrical equipment and tools, and other jobs directly related to the power system shall undergo coaching and testing for grant of electrical safety cards.

2. Electricity work project owners, organizations and units engaged in the management of operation, construction, repair and renovation of electricity works and other activities using electricity for production have the following responsibilities:

a/ To comply with technical standards and regulations on electrical engineering, electrical safety, and regulations on electrical safety;

b/ To install prohibition signs, warning signs and safety signals for electrical safety, fire protection and traffic safety in accordance with law;

c/ To organize or hire qualified units to organize coaching and testing and grant electrical safety cards to their employees under Clause 1 of this Article;

d/ Upon the occurrence of electrical incidents or accidents, to immediately take measures to remedy electrical incidents or accidents, provide first aid, and evacuate people from dangerous zones, and promptly report such to competent state management agencies;

dd/ To report on electrical safety and violations of safety corridors of electricity works.

3. Organizations and individuals producing and trading in electrical equipment and tools shall take responsibility for the quality of products and goods in accordance with law; and provide customers with safety instructions for installation, use, preservation and maintenance of electrical equipment and tools in accordance with law.

4. The use of electricity as a direct protective measure may only be implemented when the use of other protective measures is ineffective in areas permitted for use of electrical fences as specified by the Minister of Public Security and Minister of National Defense, satisfying the safety conditions specified by the Minister of Industry and Trade.

5. The Minister of Industry and Trade shall promulgate technical standards on electrical engineering and electrical safety specified at Point a, Clause 2 of this Article; specify the content of safety check in the electricity generation, transmission, distribution and use.

6. The Ministry of Industry and Trade shall assume the prime responsibility for, and coordinate with related ministries and sectors and provincial-level People’s Committees in, formulating and submitting to the Prime Minister for issuance and organizing the implementation of the National Program on Electricity Use Safety.

7. The Minister of Construction shall provide power system requirements for houses and works in accordance with the construction law.

8. Provincial-level People’s Committees shall promulgate regulations on safety management of the electricity use in their localities; organize safety check in electricity use in accordance with this Law and other relevant laws; and organize public communication, dissemination and guidance on electricity use safety to improve the awareness of electricity-using agencies, organizations and individuals about electricity use safety.

9. The Government shall detail Clauses 1 and 2 of this Article.

Article 70. Safety inspection of electrical equipment and tools

1. Electrical equipment and tools on the list specified in Clause 4 of this Article shall be inspected before they are put into use and throughout the course of use and operation, ensuring their conformity with technical standards and regulations in accordance with law.

2. The safety inspection of electrical equipment and tools shall be carried out by organizations that satisfy the conditions for provision of inspection services as certified by the Ministry of Industry and Trade for quality inspection activities in accordance with the law on product and goods quality.

3. The Ministry of Industry and Trade and provincial-level People’s Committees shall, within the ambit of their competence, inspect and examine the safety inspection of electrical equipment and tools.

4. The Minister of Industry and Trade shall specify: the list of electrical equipment and tools subject to inspection; inspection contents; inspection cycle; inspection procedure; and responsibilities of organizations and individuals in the safety inspection of electrical equipment and tools.

Article 71. Electricity generation safety

1. Organizations and individuals investing in the construction, management and operation of electricity generation works shall comply with the general provisions on electrical safety of Article 69 of this Law and the following provisions:

a/ Provisions on environmental safety distances from residential quarters in accordance with the law on environmental protection;

b/ Technical standards and regulations on construction, electrical engineering, electrical safety, fire prevention and fighting, and environmental protection;

c/ Measures to prevent unauthorized access to electricity generation works;

d/ Periodic technical safety assessment under regulations of the Minister of Industry and Trade.

2. Upon the occurrence of a fire or an explosion, electrical incident or accident, project owners or operation management units shall promptly apply measures to rescue victims from dangerous areas and provide victims with first aid and emergency care; remedy and prevent fire, explosion, electrical incident or accident risk from occurring again to cause dangerous harms, mitigate harms to people and property; take measures to ensure electrical safety for forces and vehicles mobilized for remedying fires, explosions, incidents or accidents; and identify causes and take remedial measures after such fires, explosions, incidents or accidents under regulations.

Article 72. Electricity transmission and distribution safety

1. Project owners of electricity stations and power grid works shall comply with the general provisions on electrical safety of Article 69 of this Law. The construction, management and operation of transformer stations and electricity transmission lines must comply with construction master plans and the law on safety assurance for railways, roads, inland waterways, maritime channels, and other relevant laws.

2. At cross-sections between overhead power grid works and roads, railways, maritime channels, inland waterways and electricity cables laid underground or stretching along other structures, safety distances must be maintained under the Government’s regulations. The installation and renovation of other lines stretching along overhead electricity transmission lines must ensure safety and urban aesthetics and shall be approved by project owners of such overhead electricity transmission lines. Project owners and units managing the operation of overhead electricity transmission lines and underground electricity cables shall establish, manage, maintain specialized signals in accordance with law.

3. When handing over power grid works, project owners shall hand over to units managing the operation of such power grids all technical documents, operation processes, maintenance processes, pre-acceptance test records, land allocation or land lease decisions and documents related to the payment of compensations for ground clearance and compensations for damage due to limited access to land use, environmental protection, and fire prevention and fighting in accordance with law.

4. Units managing the operation of power grids shall periodically organize the inspection, technical maintenance and repair of power grids, ensuring that the power grid system operates safely under regulations; carry out regular checks to detect and prevent acts of violation of the regulations on electrical safety, safety corridors of electricity works, and coordinate with one another in implementing technical solutions and optimal operation modes in order to minimize the electricity loss in the course of transmission.

5. When repairing or maintaining power grid works, units managing the operation of power grids and units in charge of repair or maintenance shall fully and strictly follow the order of application of safety measures under technical regulations on electrical safety.

6. The lightning-arresting and earthed equipment and systems of transformer stations, power transmission and distribution grids shall be installed strictly according to their designs, tested for acceptance and periodically checked in strict conformity with technical standards and regulations on electrical engineering and electrical safety.

Article 73. Safety in the use of electricity for production

1. Organizations and individuals using electricity for production shall comply with the general provisions on electrical safety of Article 69 of this Law and the following provisions:

a/ Electrical equipment must be of quality up to relevant technical standards and regulations;

b/ Systems of electrical equipment and appliances, lightning-arresting and earthed systems must be tested for acceptance, periodically and extraordinarily checked and inspected for technical safety, and repaired and maintained in accordance with technical standards and regulations on electrical engineering and electrical safety, and other relevant regulations. The diagrams of these systems must be true to actual positions and be kept in a file together with repair and maintenance records and inspection minutes throughout the course of operation.

c/ Power grids under the management of electricity-using organizations and individuals shall be installed and managed for operation in accordance with technical standards and regulations on electrical engineering and electrical safety, and other relevant regulations;

d/ Electricity transmission lines shall be designed and installed to ensure clear and airy production grounds, thus avoiding mechanical or chemical impacts which may cause breakdowns. Metal structures of workshops, machinery, metal pipelines and lightning-arresting lines may not be used as neutral conductors.

dd/ Power systems in areas where exist inflammables and explosive substances shall be designed, installed and used up to fire and explosion protection requirements; equipment and tools for special use in the fire and explosion prevention and fighting shall be used in accordance with law.

2. Electricity sellers shall ensure the safe and uninterrupted electricity supply for production in accordance with law. At the request of competent agencies, electricity sellers shall carry out safety checks of power systems of electricity users. Upon the detection of risk of electrical hazards, prompt measures shall be taken to prevent such risk or suspend the electricity supply.

Article 74. Safety in the use of electricity for domestic use or service provision purpose

1. Agencies, organizations and individuals using electricity for domestic use or service provision purpose have the following responsibilities:

a/ To design and install wiring and switching devices and electrical equipment for domestic use or service provision purpose in their residential houses or facilities, ensuring quality, electrical safety and fire protection requirements, and conforming to technical standards and regulations on construction works in accordance with law, and with a view to meeting the total electricity demand of users;

b/ To install electricity transmission lines from electricity meters to their residential houses, facilities or areas using electricity, ensuring quality and safety and preventing obstruction of transportation activities;

c/ To provide information about the power system in their houses or facilities and the electricity demand upon the signing of power purchase agreements;

d/ To ensure safety for power systems in their houses or works under their ownership, management or use; to regularly check and promptly repair or replace wiring and electrical equipment that fail to meet quality standards. Upon the occurrence of electrical incidents, to take measures to prevent the risk of fire spreading to other objects or equipment in their houses or facilities, and promptly notify such to electricity sellers and local functional agencies;

dd/ To coordinate with functional agencies in carrying out electricity use safety checks.

2. Electricity sellers have the following responsibilities:

a/ To guide the safe installation and use of power systems and equipment; to provide electricity users with information about the risks of electrical hazards in electricity use and measures to ensure electrical safety;

b/ To apply digital technology in notifying electricity users of the risk of electrical hazards in the course of electricity use;

c/ To periodically organize public communication, dissemination, provision of guidance for improvement of customers’ awareness about safe electricity use;

d/ When requested by competent agencies, to coordinate with the former in carrying out safety checks of power systems of electricity users. Upon the detection of a risk of electrical hazards, to take prompt measures to prevent such risk or suspend the electricity supply in accordance with law.

3. The Government shall detail this Article.

Section 2

SAFETY OF HYDROPOWER WORKS

Article 75. Principles of safety management of hydropower works

1. To ensure the safety of hydropower dams and reservoirs is the highest priority in the investment, construction, management and operation of hydropower works.

2. The safety management of hydropower works shall be carried out regularly and continuously throughout the processes of survey, designing, construction, management, operation and protection of hydropower works, ensuring compliance with this Law and other laws on construction and safety of dams and water reservoirs, water resources, disaster prevention and control, and environmental protection.

3. Owners, organizations and individuals managing the operation of hydropower  works shall take responsibility for the safety of the hydropower works they own and invest in, synchronously applying advanced technical infrastructure solutions in the management and exploitation of hydropower  works in order to ensure safety, maximize the efficiency of integrated exploitation, and serve multiple objectives of the system of hydropower  works, thus contributing to ensuring the safety of dams’ downstream areas.

4. Upon the occurrence of incidents in the management and operation of hydropower dams or reservoirs, project owners and units in charge of management and operation shall take responsibility for coordinating with functional agencies in implementing response plans and remedial measures, thereby ensuring the safety of hydropower dams and reservoirs and dams’ downstream areas, and take other responsibilities in accordance with law.

5. Hydropower works are classified and graded to serve the designing, construction, management, operation, maintenance, monitoring and inspection to ensure their safety.

6. The Minister of Industry and Trade shall promulgate technical regulations on hydropower works.

7. The Government shall detail Clause 5 of this Article.

Article 76. Safety in the stage of construction of works before they are put into operation

1. In the course of construction of hydropower works, construction project owners and units in charge of construction shall comply with the laws on dam and water reservoir safety, and on construction.

2. In the course of construction of new hydropower projects, project owners shall work out disaster response plans for works and hydropower dams’ downstream areas, and submit them to competent state agencies for approval and implementation in accordance with the law on disaster prevention and control. For expanded investment projects, project owners shall assume the prime responsibility for, and coordinate with units in charge of management and operation of existing works in, working out disaster response plans for the works and dams’ downstream area and submitting them to competent state agencies for approval, and organizing the implementation thereof in accordance with the law on disaster preparedness

3. Project owners shall organize the formulation of processes of hydropower reservoir operation, emergency response plans, and hydropower dam and reservoir protection plans, and submit them to competent state agencies for appraisal and approval before filling water and handing over works to organizations in charge of management and operation thereof and state management agencies in charge of electricity, hydraulic works, water resources and disaster preparedness.

4. Before approving the initial water filling, project owners shall fulfil their responsibilities and obligations specified in this Law and relevant laws on construction, land, water resources, forestry and environmental protection. An initial water filling plan shall be notified to agencies competent to approve processes of hydropower reservoir operation and to People’s Committees at all levels within 10 days from the date of initial water filling.

5. Competence to appraise and approve processes of hydropower reservoir operation, emergency response plans, and hydropower dam and reservoir protection plans is as follows:

a/ The Ministry of Industry and Trade shall appraise and approve processes of hydropower reservoir operation and hydropower dam and reservoir protection plans, for particularly important hydropower projects and hydropower works each located in 2 or more than 2 provincial administrative units;

b/ Provincial-level People’s Committees shall appraise and approve or delegate powers to management agencies under their management to appraise and approve processes of hydropower reservoir operation, emergency response plans, and hydropower dam and reservoir protection plans for hydropower works in the localities under their management, except those specified at Point a of this Clause.

6. The Government shall detail Clauses 3 and 4 of this Article, and specify dossier, order and procedures for appraisal and approval of processes and plans specified in Clause 5 of this Article.

Article 77. Safety in the stage of management and operation

1. Project owners, organizations and individuals managing and operating hydropower works shall comply with the laws on hydropower dam and reservoir safety, water resources, disaster preparedness, and the following provisions:

a/ To operate hydropower works in compliance with inter-reservoir operation processes, hydropower reservoir operation processes, emergency response plans, and hydropower dam and reservoir protection plans approved by competent state management agencies;

b/ To declare and register hydropower  dam and reservoir safety; to monitor hydropower  dams and reservoirs, sedimentation in reservoirs; to carry out specialized meteorological and hydrological monitoring; to carry out periodical or extraordinary inspection of works; to check and assess hydropower dam and reservoir safety; to work out and implement plans on maintenance, repair, upgrade and modernization of works and equipment; to protect and ensure the safety of hydropower  dams and reservoirs and their downstream areas in accordance with law;

c/ To install and maintain stable operation of warning systems for water discharge, surveillance cameras, water-level monitoring equipment, online information transmission systems, and specialized monitoring devices, and update information and data into the database on hydropower work operation under regulations;

d/ To organize inspection and assessment of hydropower dam and reservoir safety, and report on dam and reservoir safety before and after the rainy season every year;

dd/ To arrange qualified personnel in charge of dam and reservoir safety management who are professionally trained and updated on knowledge and skills on dam and reservoir safety management.

2. Every 5 years or upon a change in the scale or items of a hydropower work, the work owner shall review and adjust the hydropower reservoir operation process, emergency response plan, and hydropower dam and reservoir protection plan, and submit them to a competent state agency for approval.

3. Before the rainy season every year, competent state management agencies shall examine the assessment of dam and reservoir safety by hydropower work owners.

4. The Ministry of Industry and Trade shall establish, manage and operate the database on hydropower work operation. The operation of the database on hydropower work operation is covered by the state budget funds and other lawful sources in accordance with law.

5. The Government shall detail this Article.

Article 78. Scope of protection of hydropower works

1. The scope of protection of hydropower works covers dams, reservoirs, energy chains, plants, transformer stations, ancillary works and surrounding areas determined according to grades of hydropower works. When the use scope and purpose are adjusted, surrounding areas shall also be adjusted in accordance with law. Surrounding areas specified in this Clause include vicinities of dams, energy chains and hydropower reservoirs.

2. Hydropower work owners shall plant boundary marks of the scope of protection of hydropower works and provide funds for boundary mark planting and maintenance.

3. Organizations or units managing the operation of hydropower works shall implement plans on hydropower work protection approved by competent authorities; coordinate with local state management agencies in examining activities within the scope of protection of hydropower works; and promptly report to competent agencies when detecting activities likely to make hydropower works unsafe.

4. The organization of the implementation of plans on protection of important hydropower works related to national security must comply with this Law and the law on protection of important works related to national security.

5. Activities within the protection scope of hydropower works must comply with hydropower dam and reservoir safety requirements.

6. The exploration and extraction of sand and gravel and the dredging combined with mineral recovery in hydropower reservoirs must ensure safety for hydropower dams and reservoirs specified in Clause 5 of this Article and comply with the laws on geology and minerals and water resources.

7. Existing works within the protection scope of hydropower works may continue to be used for determined purposes in accordance with law. If the safety and operation capacity of hydropower works are affected, remedial measures shall be implemented at the request of local state management agencies. If remediation is impossible, they shall be removed or relocated in accordance with the law on construction and other relevant laws.

8. The Government shall detail Clauses 1 and 5 of this Article.

Chapter IX

IMPLEMENTATION PROVISIONS

Article 79. To amend and supplement a number of articles and clauses of relevant laws

1. To amend and supplement Law No. 50/2014/QH13 on Construction, which has a number of articles amended and supplemented under Law No. 03/2016/QH14, Law No. 35/2018/QH14, Law No. 40/2019/QH14, Law No. 62/2020/QH14, Law No. 45/2024/QH15, Law No. 47/2024/QH15 and Law No. 55/2024/QH15, as follows:

a/ To amend and supplement Point a, Clause 2, Article 52 as follows:

“a/ For national important projects and group-A projects using public investment capital; PPP projects under the law on investment in the form of public-private partnership; projects under the competence for investment policy approval of the National Assembly and the Prime Minister in accordance with the Law on Investment, and electricity projects in which bidding for investor selection is organized in accordance with the Law on Electricity, construction investment prefeasibility study reports are required;”;

b/ To add Point i1 below Point i, and amend and supplement Point k, Clause 2, Article 89 as follows:

“il/ Offshore works belonging to offshore wind power projects have been assigned marine areas by competent authorities for project implementation;

k/ Owners of projects on construction of works specified at Points b, e, g, h, i and i1 of this Clause, except residential houses specified at Point i of this Clause, shall send notices of time of construction commencement and construction design dossiers under regulations to local state management agencies in charge of construction for management.”.

2. To amend and supplement Clause 1, Article 3 of Law No. 82/2015/QH14 on Marine and Island Resources and Environment, which has a number of articles amended and supplemented under Law No. 35/2018/QH14 and Law No. 18/2023/QH15, as follows:

“1. Marine and island resources include living and non-living resources underwater, on the seabed and the subsoil thereof, on sea surface, in coastal areas and archipelagos, islands, low-tide elevations and banks (below collectively referred to as islands) which are under the sovereignty, sovereign rights and jurisdiction of Vietnam.”.

3. To amend and supplement Section 2 of Appendix 2 to Price Law No. 16/2023/QH15 which has a number of articles amended and supplemented under Law No. 44/2024/QH15, as follows:

Article 80. Effect

1. This Law takes effect on February 1, 2025.

2. Law No. 28/2004/QH11 on Electricity, which has a number of articles amended and supplemented under Law No. 24/2012/QH13, Law No. 28/2018/QH14, Law No. 03/2022/QH15, Law No. 16/2023/QH15 and Law No. 35/2024/QH15 (below referred to as Law No. 28/2004/QH11 on Electricity), ceases to be effective on the effective date of this Law, except the cases specified in Clauses 1 thru 4, Article 81 of this Law.

Article 81. Transitional provisions

1. For electricity business investment projects of which bidding dossiers are approved and issued before the effective date of this Law, the selection of investors, signing and management of the performance of contracts must continue to comply with Law No. 28/2004/QH11 on Electricity and regulations detailing and guiding the implementation thereof. The Government shall specify the transitional application for organization of bidding to select investors to implement electricity business investment projects.

2. For power purchase agreements signed before the effective date of this Law, agreements therein may continue to be implemented. In case there are provisions on levels of the competitive electricity market different from those of this Law, the parties shall modify their agreements to suit such provisions.

3. Electricity units that are granted electricity activity licenses before the effective date of this Law may continue to operate until the expiration date stated in such licenses. If entitled to exemption from electricity activity licenses before the effective date of this Law, they may continue to enjoy the exemption.

4. For organizations that submit valid dossiers of request for grant or modification or supplementation of electricity activity licenses to licensing agencies before the effective date of this Law and are not yet granted electricity activity licenses, Law No. 28/2004/QH11 on Electricity may be applied for licensing. In case they request grant, modification, supplementation, re-grant or extension of their licenses in accordance with this Law, this Law may be applied for grant of electricity activity licenses.

5. An investment project on construction of a power grid with a voltage level of 220 kV or lower stretching across administrative boundaries of 2 or more provincial-level administrative units that has its valid dossier of request for approval or adjustment of investment policy received by the Ministry of Investment and Planning before the effective date of this Law may continue to be implemented in accordance with Law No. 61/2020/QH14 on Investment, which has a number of articles amended and supplemented under Laws No. 72/2020/QH14, No. 03/2022/QH15, No. 05/2022/QH15, No. 08/2022/QH15, No. 09/2022/QH15, No. 20/2023/QH15, No. 26/2023/QH15, No. 27/2023/QH15, No. 28/2023/QH15, No. 31/2024/QH15, No. 33/2024/QH15, No. 43/2024/QH15, and No. 57/2024/QH15.

6. For a power  grid project with a voltage level of 220 kV or lower stretching across administrative boundaries of 2 or more provincial-level administrative units that has investment policy approved by the Prime Minister before the effective date of this Law and now falls under the competence of investment policy approval of a provincial-level People’s Committee specified at Point a, Clause 2, Article 13 of this Law, such provincial-level People’s Committees is competent to approve the adjustment of its investment policy.

This Law was passed on November 30, 2024, by the 15^th National Assembly of the Socialist Republic of Vietnam at its 8^th session.-

Chairman of the National Assembly
TRAN THANH MAN