Decision No. 15/2007/QD-BCT dated December 31, 2007 of the Ministry of Industry and Trade promulgating the electricity wholesale price bracket applicable to industrial parks

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Issuing body:	Prime Minister; Ministry of Industry and Trade	Effective date:	Known Please log in to a subscriber account to use this function. Don’t have an account? Register here
Official number:	15/2007/QD-BCT	Signer:	Nguyen Tan Dung
Type:	Decision	Expiry date:	Known Please log in to a subscriber account to use this function. Don’t have an account? Register here
Issuing date:	31/12/2007	Effect status:	Known Please log in to a subscriber account to use this function. Don’t have an account? Register here
Fields:	Industry

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THE MINISTER OF TRADE AND INDUSTRY	SOCIALIST REPUBLIC OF VIET NAM Independence – Freedom - Happiness
No. 15/2007/QD-BCT	Hanoi, December 31, 2007

DECISION

PROMULGATING THE ELECTRICITY WHOLESALE PRICE BRACKET APPLICABLE TO INDUSTRIAL PARKS

THE MINISTER OF TRADE AND INDUSTRY

Pursuant to Resolution No. 01/2007/QH12 of July 31, 2007, of the first session of the XIIth National Assembly of the Socialist Republic of Vietnam on the structure and organization and the number of Deputy-Prime Ministers of the Government of the XIIth tenure;

Pursuant to the Governments Decree No. 178/2007/ND-CP of December 3, 2007, defining the functions, tasks, powers and organizational structures of ministries and ministerial-level agencies;

Pursuant to the December 3, 2004 Law on Electricity;

Pursuant to the Governments Decree No. 105/2005/ND-CP of August 17, 2005, detailing and guiding the implementation of the Law on Electricity;

Pursuant to the Prime Ministers Decision No. 276/2006/QD-TTg of December 4, 2006, on electricity sale pries;

At the proposal of the Director of the Electricity Regulation Department,

DECIDES:

Article 1. To promulgate the electricity wholesale price bracket applicable to industrial parks, specifically as follows:

1. The electricity wholesale price bracket at the 110kV main bars of industrial parks 110 kV transformer stations applies to cases in which industrial park management boards purchase electricity at the 110 kV main bars of industrial parks and retail electricity to electricity users in industrial parks at the transformers medium-voltage main bars of consumption stations in industrial parks, depending on the stations capacity, as follows:

Total installation capacity of transformers of 110/35-22-10-6kV transformer stations	Electricity wholesale price bracket (VND/kWh)
	Normal hours	Off-peak hours	Peak hours
>100MVA 50 MVA -100 MVA < 50MVA	772-785 762-777 754-769	418-425 412-421 408-417	1,565-1,590 1,542-1,574 1,526-1,558

2. In case industrial park management boards purchase and retail electricity at the same voltage, the electricity wholesale price is the electricity sale price at that voltage applicable to manufacturing industries defined in the Prime Ministers Decision No. 276/2006/QD-TTg of December 4, 2006, on electricity sale prices (below referred to as Decision No. 276/2006/QD-TTg for short) with 2% reconciliation.

3. In case industrial park management boards purchase electricity at the medium voltage and retail electricity to users at the low voltage, the electricity wholesale price is the electricity sale price at the purchase voltage, applicable to manufacturing industries defined in Decision No. 276/2006/QD-TTg.

4. Guidance on the application of the electricity wholesale price bracket to industrial parks (see the enclosed Appendix).

Article 2. Implementation effect

1. This Decision takes effect 15 days after its publication in CONG BAO.

2. This Decision annuls Clause 1, Section VI of Circular No. 11/2006/TT-BCN of December 20, 2006, of the Minister of Industry, guiding the application of electricity sale prices; to annul all previous regulations which are contrary to this Decision.

3. The director of the Office the chief inspector, directors of Bureaus and Departments of the Ministry, the General Director of the Vietnam Electricity Group, and concerned electricity units shall implement this Decision.

FOR THE MINISTER OF INDUSTRY AND TRADE
VICE MINISTER

Do Huu Hao

APPENDIX

GUIDANCE ON THE APPLICATION OF THE ELECTRICITY WHOLESALE PRICE BRACKET TO INDUSTRIAL PARKS
(Promulgated together with the Minister of Trade and Industrys Decision No. 015/2007/QD-TTg of December 31, 2007)

1. Subjects of application

a/ The electricity wholesale price bracket defined in this Decision applies to units conducting electricity activities in industrial parks (below referred to as electricity purchaser), which fully meet the following conditions:

- Having electricity activity licenses granted for electricity distribution and electricity retail;

- Purchasing electricity at various voltages for retail to electricity users in industrial parks.

b/ Electricity wholesale price bracket defined in this Decision does not apply to the following cases:

- Industrial parks which have independent electricity generation sources and concurrently purchase electricity from the national electricity system;

- Electricity purchasers retail electricity to users at agreed prices other than the retail prices specified in Decision No. 276/2006/QD-TTg.

2. Application guidance

a/ The electricity wholesale prices applicable to industrial parks comply with the price bracket defined in Decision No. 276/2006/QD-TTg and the guidance in Section VI of Circular No. 11/2006/TT-BCN of December 20, 2006, of the Ministry of Industry, guiding the application of electricity sale prices (below referred to as Circular No. 11/2006/TT-BCN for short) until this Decision takes effect.

b/ The electricity wholesale price bracket is set based on electricity use time in a day according to three prices. The electricity use time in a day for application of three prices is specified at Point a, Clause 2.1, Section II of Circular No. 11/2006/TT-BCN.

c/ Electricity wholesale price negotiations comply with Article 20 of the Governments Decree No. 105/2005/ND-CP of August 17, 2005, detailing and guiding the implementation of a number of articles of the Law on Electricity, and the prices must be within the price bracket defined in this Decision.

d/ The electricity wholesale price bracket defined in Clause 1, Article 1 of this Decision applies to industrial parks where electricity purchasers invest in 110kV transformer stations and medium-voltage transmission lines to retail electricity to electricity users at the medium voltage. The electricity wholesale price bracket applicable to each transformer station is determined on the basis of its total capacity.

Specific prices are determined based on the additional charge coefficients of transformer stations on the principle of gradual increase when the additional charge coefficients rise. The bottom limit of the electricity price bracket is used when the additional charge coefficient is lower than or equal to 50%; the top limit of the electricity price bracket is used when the additional charge coefficient is higher than or equal to 68.5%; when the additional charge coefficient is higher than 50% and lower than 68.5%, the electricity price lies within the electricity price bracket and is determined under the agreement between the electricity purchaser and the electricity seller.

The additional charge coefficient of a transformer station is determined according to the following formula:

HSpt = x x 100%

In which:

HSpt: The transformer station additional charge coefficient (%);

At: The transformer stations output measured at the 110kV main bar in the payment period (kWh);

Tt: The payment periods duration (hours);

75%: The full charge coefficient of the transformer station when the stations reserve is taken into account;

cos φ: The capacity coefficient;

Sdm: The total capacity of the transformer (kVA).

Examples on price bracket application: Industrial park A management board purchases electricity from electricity seller B at the 110 kV main bar of the 110/22 kV transformer station for sale to electricity users in the industrial park at the voltage of 22 kV; the 110/22 kV transformer station has two transformers with a capacity of 40 MVA. The total capacity of the transformer station is 2 x 40 MVA = 80 MVA.

The prices agreed upon by the two parties must not fall outside the following price bracket:

	Electricity wholesale price bracket (VND/kWh)
- Normal hours	762 - 777
- Off-peak hours	412 - 421
- Peak hours	1,542- 1,574

If the transformer stations additional charge coefficient in the calculation period is 70%, the electricity purchase prices will be as follows:

	Electricity wholesale price bracket (VND/kWh)
- Normal hours	777
- Off-peak hours	421
- Peak hours	1,574

Industrial park A management board sells electricity to production households in the industrial park at the 22 kV voltage at the prices:

	Electricity sale price (VND/kWh)
- Normal hours	815
- Off-peak hours	443
- Peak hours	1,645

dd/ The electricity wholesale price bracket defined in Clause 2, Article 1 of this Decision applies in cases in which industrial park management boards purchase electricity from electricity sellers at the medium-voltage main bars of the industrial parks transformer stations and retail electricity to industrial park-based users for their production activities at the medium-voltage main bars of 6 kV; 10 kV; 22 kV and 35 kV/0.4 kV transformers.

The selling party sells electricity to electricity purchasers at the general electric meters at the prices applicable to manufacturing industries defined in Decision No. 276/2006/QD-TTg, reconciling 2%. The electricity output used for calculation of reconciliation is based on the actual output used in the payment period by customers in the industrial who buy electricity at the same voltage as the voltage at which the industrial park management boards buy electricity from electricity sellers.

Example: Industrial park A management board purchases electricity from the electricity seller at the 22 kV main bar of the industrial parks 110/22 kV transformer station for sale to households using electricity for production activities in the industrial park at the 22 kV main bar of the 22/0.4 kV transformer station:

The electricity prices paid by industrial park A management board to the electricity seller will be calculated as follows:

	Electricity sale prices (VND/kWh)
- Normal hours	815 x 98% = 798.7
- Off-peak hours	445 x 98% = 436.1
- Peak hours	1,645 x 98% = 1,612.1

Industrial park A management board sells electricity to electricity users in the industrial park at the 22kV voltage as follows:

	Electricity sale prices (VND/kWh)
- Normal hours	815
- Off-peak hours	445
- Peak hours	1,645

e/ The electricity wholesale price bracket defined in Clause 3, Article 1 of this Decision applies in cases in which industrial park management boards purchase electricity from electricity sellers at the medium-voltage main bars of the 110/35-22-10-6 kV transformer stations and retail electricity to electricity users for production activities in the industrial parks at the 0.4 kV voltage.

The electricity purchase prices and retail prices are prices of electricity sold at the corresponding voltages to manufacturing industries defined in Decision No 276/2006/QD-TTg.

Example: Industrial park A management board purchases electricity from the electricity seller at the 22 kV voltage for sale to electricity users in the industrial park at the 0.4kV voltage:

The electricity prices paid by industrial park A management board to the electricity seller are calculated as follows:

	Electricity sale price (VND/kWh)
- Normal hours	815
- Off-peak hours	445
- Peak hours	1,645

Industrial park A management board sells electricity to electricity users in the industrial park at the 0.4kV voltage as follows:

	Electricity sale price (VND/kWh)
- Normal hours	895
- Off-peak hours	505
- Peak hours	1,775

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Decision No. 15/2007/QD-BCT dated December 31, 2007 of the Ministry of Industry and Trade promulgating the electricity wholesale price bracket applicable to industrial parks

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