CIRCULAR

ON THE OPERATION OF COMPETITIVE GENERATION MARKET

Pursuant to the Government's Decree No. 189/2007/NĐ-CP dated December 27, 2007 on defining the functions, tasks, powers and organizational structure of the Ministry of Industry and Trade;

Pursuant to Law on Electricity dated December 03, 2004; 

Pursuant to the Prime Minister’s Decision No. 26/2006/QĐ-TTg dated January 26, 2006, approving the roadmap and conditions for establishing and developing the levels of electricity market in Vietnam;

The Ministry of Industry and Trade prescribes the operation of competitive generation market as follows:

Chapter I

GENERAL PROVISION

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This Circular prescribes the operation of the competitive generation market and the responsibilities of the units participating in the electricity market.

Article 2. Subjects of application

This Circular is applicable to the units participating in the competitive generation market, including:

1. The Single buyer.

2. Power generating units

3. The System and market operator.

4. Transmission network operators.

5. Electricity measurement units.

Article 3. Interpretation of terms

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1. Quotation is the quotation for electricity price on the electricity market of each generating station, submitted to the System and market operator in accordance with the form of quotations prescribed in this Circular.

2. Scheduled quotations are the quotations accepted by the System and market operator to schedule the mobilization of day-ahead and hour-ahead

3. Statement of payment is the list of payments to a power plant on the electricity market, made by the System and market operator for each trading day and each payment cycle.

4. Electricity market intervention is an act to change the usual operation of the electricity market taken by the System and market operator to handle the situations prescribed in Clause 1 Article 55 of this Circular.

5. Group quoting is a quoting mechanism performed by a representative for the whole group of conventional hydroelectric plants.

6. Full load expense is the variable expense of the generator when operating at full load, calculated in VND/kWh.

7. Trading cycle is the cycle of calculating the electricity prices on the electricity market in 01 hour starting from the first minute of an hour.

8. Payment cycle is the cycle of making invoices for the transactions on the electricity market in 01 month starting from the 1st.

9. Announced power is the maximum ready power of a generator  announced by quoting units or the System and market operator and power generating units that sign the contract to provide ancillary services according to the market schedule.

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11. Mobilized power of hour ahead is the power of a generating stations planned to mobilize for the first hour in the hour-ahead mobilization schedule .

12. Mobilized power of day ahead is the power of a generating stations planned to mobilize for trading cycles in the day-ahead mobilization schedule, considering the transmission limit of the transmission grid.

13. Extra power is the difference between the dispatched power and the power in the market price schedule of a generating station.

14. Paid power is the power of the generating stations in the hourly power schedule, and paid at CAN.

15. Ancillary services are services of frequency control, spinning reserve, fast-start reserve, cold start reserve, reliability must-run, voltage regulation, and black start.

16. Extra electricity is the mobilized amount of electricity of the generating stations corresponding to the extra power.

17. Quoting units are units that directly submit the quotations on the electricity market, including the power generating units or power plants register to provide direct quotations, the Single buyer providing quotations on behalf of BOT plants, and the representative that provide quotations for groups of conventional hydroelectric plants.

18. The Single buyer (SB) is the only unit in the electricity market that may purchase the entire electricity through the electricity market and Power purchase agreements.

19. Power generating units are units that possess one or multiple power plants that participate in the electricity market and Power purchase agreements between such power plants and the Single buyer.

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21. Direct trading generators are power generating units of which the power plants may directly provide quotations on the electricity market.

22. Metering Data Management Service Provider (MDMSP) are units that provide, install, and manage the system of collecting, processing, and storing data about electricity management and the communication network serving the electricity market.

23. Transmission network operators (TNO) are units licensed to transmit electricity, in charge of the management and operation of the national electricity grid.

24. The System and market operator (SMO) is the commanding unit that control the electricity generation, transmission, and distribution in the national electricity system, and control the electricity market.

25. Capacity add-on (CAN) is the price for a unit of power in each trading cycle for calculating the power payment to power generating units in the electricity market.

26. Floor price of the quotation is the lowest price that the quoting unit may provide for a generating station in the day-ahead quotation.

27. System marginal price (SMP) is the price for a unit of electrical energy in each trading cycle for calculating the electricity payment to power generating units in the electricity market.

28. Full market price (FMP) is the sum of SMP and CAN of each trading cycle.

29. Ceiling price of the quotation is the highest price that the quoting unit may provide for a generating station in the day-ahead quotation.

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31. Water value is the expected price of water in the reservoirs used for generating power as an alternative to thermoelectricity sources in the future, converted into a unit of electrical energy.

32. Productivity decline factor is the productivity decline factor of the generating stations over time.

33. Annual or monthly average load factor is the ratio of total electrical energy generated in a year or a month, to the multiplication of the installed capacity and total hours in a year or a month

34. Electricity market information system is the system of devices and databases serving the management and exchange of information about the electricity market managed by the System and market operator.

35. Ancillary service contract is the contract to provide the services of fast-start reserve, cold start reserve, and reliability must-run signed between a power generating unit and the System and market operator, made under the form promulgated by the Ministry of Industry and Trade.

36. Power purchase agreement (PPA) is a written agreement on trading electricity between the Single buyer and power generating units, or electricity importers, or electricity exporters.

37. Contract for difference (CfD) is a Power purchase agreement signed by between the Single buyer and direct trading generators, made under the form promulgated by the Ministry of Industry and Trade.

38. Default interest rate is the no-term interest rate of VND on the inter-bank market at the time of payment.

39. Restricted schedule is the mobilization order of generating stations towards optimizing the generation cost with regard to technical restriction in the electricity system, including transmission capacity, ancillary services, and other restrictions.

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41. Power schedule is the schedule made by the System and market operator after the operation to determine the payment power in each trading cycle.

42. Hour-ahead schedule is the anticipated schedule of the generating stations to generate and provide ancillary services for the coming trading cycle and three succeeding trading cycles.

43. Day-ahead schedule is the anticipated schedule of the generating stations to generate and provide ancillary services for the trading cycles of the coming trading day

44. SMP schedule is the schedule made by the System and market operator after current trading day to determine the SMP for each trading cycle.

45. The electricity market simulation model is the system of software that simulates the mobilization of generating stations and calculate SMP used by the System and market operator in the annual, monthly, and weekly operation plans.

46. Water value calculation model is the system of software that optimize hydrothermoelectricity to calculate the water value used by the System and market operator in the annual, monthly, and weekly operation plans.

47. Limited water level is the lower upstream water level of the hydroelectric reservoir at the end of the months or weeks, calculated and announced by the System and market operator.

48. N-year is the current year of electricity market operation, by calendar year.

49. D-day is the current trading day.

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51. BOT power plants are power plants invested inform of Build-Operate-Transfer via contracts between foreign investors and competent State agencies.

52. Best new power plant is the new thermoelectric plant of which the average electricity price in the succeeding year is lowest, and the price in the PPA is agreed according to the standard electricity price bracket promulgated by the Ministry of Industry and Trade. The best new power plant shall be chosen annually to calculate CAN.

53. Multi-purpose strategic hydroelectric plants are large hydroelectric plants that are important for the economy, society, National defense and security, exclusively built and operated by the State.

54. Group of conventional hydroelectric plants is a group of hydroelectric plants that the amount of water discharged from the reservoir of the upper hydroelectric plants makes up the whole or a large portion of water in the reservoir of the lower hydroelectric plant, and there is no regulation reservoir between them…

55. Scheduling software is software used by the System and market operator to make day-ahead and hour-ahead schedules for the generating stations in the electricity market..

56. System load is the total electricity output of the entire electricity system converted to the terminal of the generating stations in a trading cycle.

57. Measurable generation output is the measurable electrical energy of the power plant at the measuring position.

58. Contractual hourly generation output is the amount of generation output distributed from the monthly contract for each trading cycle, and paid according to contracts for difference.

59. Contractual annual generation is the committed generation output in contracts for difference.

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61. Planned annual generation is the generation output of a power plant planned to mobilize in the coming year.

62. Planned monthly generation is the generation output of a power plant planned to mobilize in each month.

63. Heat loss rate is the wasted thermal energy of the generating station or power plant to produce a unit of electrical energy at full load, depending on the thermoelectric technology.

64. Restricted generation payment is the payment received by a power generating unit for the extra electricity generation.

65. Participant in the electricity market is a unit that participate in the transaction or provision of services on the electricity market as prescribed in Article 2 of this Circular.

66. The electricity market is the competitive generation market, established and developed as prescribed in Article 18 in the Law on Electricity.

67. Power shortage is the situation that the total announced power of all power generating units is smaller than the estimated system load in a trading cycle.

68. Confidential information are the confidential information as prescribed by law or agreed by parties.

69. Market information is all the data an information related to the operation of the electricity market.

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71. Mobilization order is the arrangement of the power ranges in the quotation according to the principle of unrestricted schedule.

72. Power excess is the situation that the total power offered at the floor price, and the total power of the multi-purpose strategic hydroelectric plants announced by the System and market operator in a trading cycle is smaller than the estimated system load.

73. Peak load stations are generating stations mobilized at peak hours in the chart of electricity system load.

74. Intermediate load stations are generating stations mobilized at peak hours and usual hours in the chart of electricity system load.

75. Base load stations are generating stations mobilized at peak hours, usual hours and in the chart of electricity system load.

76. Slow-start stations are generating stations that are not able to start and join the grid within less than 30 minutes.

Chapter II

PARTICIPATING IN THE ELECTRICITY MARKET

Article 4. Responsibility to participate in the electricity market

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2. The power plants exempted from participate in the electricity market include:

a) BOT power plants;

b) Wind power plants and geothermal power plant;

c) Power plants in industrial zones that only sell part of the generation output to the national electricity system, and cannot determine the long-term electricity sale plan. Vietnam Electricity must make the list of these power plants and submit to The Electricity Regulatory Authority for approval.

3. The power plants prescribed in Clause 1 this Article must invest in and complete the equipment to connect to the electricity market information system, SCADA/EMS system, and the electricity measurement system in order to meet the demand of the electricity market.

Article 5. Dossier of application for participating in the electricity market

1. The power generating units that possess the power plants prescribed in Article 4 of this Circular must apply for participating in the electricity market separately for each power plant.

2. The dossier of application for participating in the electricity market include:

a) The application for participating in the electricity market, specifying the name, address of the power generating unit and power plant;

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c) The documents about the appraisal and acceptance of the equipment to connect to the electricity market information system, SCADA/EMS system, and the electricity measurement system.

d) Other necessary information at the request of the System and market operator.

Article 6. Order for approving dossiers of application for participating in the electricity market

1. Within 10 working days as from receiving the valid dossier, the System and market operator must appraise and submit it to The Electricity Regulatory Authority for approving the participation in the electricity market of the power plant.

2. If the dossier is not valid, within 05 working days as from receiving the dossier, the System and market operator must request the power generating unit to complete their dossier in writing.

3. Within 05 working days as from receiving the papers from the System and market operator, The Electricity Regulatory Authority must make decisions on approving the power plant to participate in the electricity market, and notify the System and market operator in writing so that they shall add the power plant in the list of the electricity market participants.

4. Within 05 working days as from the power plant is allowed to participate in the electricity market, the power generating units must register the quoting subject (generating units or power plants) with the System and market operator

Article 7. Information about participants in the electricity market

1. Transmission network operators, the Single buyer, and MDMSP must register the general information about the units with the System and market operator.

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3. Participants in the electricity market must notify the System and market operator when changing the registered information.

4. The System and market operator must disclose the registration information of the participants in the electricity market, and the changed information.

Article 8. Suspending and restoring the participation in the electricity market of power plants

1. A power plant shall have their participation in the electricity market suspended in the following cases:

a) Failing to comply with Article 4 of this Circular;

b) Committing the following acts:

- Failing to provide information or provide false information for planning electricity market operation and making mobilization schedule for generating stations in the electricity system;

- Making agreements with other power generating units or the System and market operator when providing quotations for the purpose of making mobilization schedules improperly;

- Directly or indirectly making agreements with other units on announcing power and providing quotations on the electricity market in order to increase SMP and affect the electricity supply security;

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2. The Electricity Regulatory Authority is entitled to suspend the participation in the electricity market of power plants that violate Clause 1 this Article. The order and procedures for suspending the participation of power plants are prescribed in Article 108 of this Circular.

3. While the participation in the electricity market of a power plant is suspended:

a) The power generating unit or power plant must not directly provide quotations on the electricity market and must comply with other provisions of this Circular;

b) The Single buyer must provide quotations on behalf of the power plant;

c) The power plant must provide information for the Single buyer to make quotations.

4. A suspended power plant may have their participation in the electricity market restored when the following conditions are satisfied:

a) The suspension period expires;

b) The obligations in the penalty decision are fulfilled.

5. When the conditions prescribed in Clause 4 this Article are satisfied, the power plant must send a written request for the restoration of the participation in the electricity market enclosed with the proving documents to the System and market operator. The System and market operator must verify and approve the participation in the electricity market of the power plant.

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Article 9. Terminating the participation in the electricity market

1. A power plant shall have their participation in the electricity market terminated in the following cases:

a) At the request of the power generating unit in the following cases:

- The power plant of the power generating unit stops operating or generating power in the national electricity system;

- The power plant of the power generating unit fails to sustain and restore the installed capacity > 30 MW.

b) The Electricity generation license of the power plant is revoked or expired.

2. In the case specified in Point a Clause 1 this Article, the power generating unit must send a written request for terminating the participation in the electricity market to The Electricity Regulatory Authority at least 30 days before the time they wish to stop participating in the electricity market.

3. The System and market operator must update the registration information and announce the termination of the participation in the electricity market of power plants.

4. In case the power plant commits violations before stopping participating in the electricity market, the power generating unit that possess such power plant must comply with provisions on inspection, verification, and handling of violations as prescribed in this Circular.

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PRINCIPLES OF ELECTRICITY MARKET OPERATION

Article 10. Limits of quoted prices

1. The quoted prices of generating stations on the competitive generation market are limited from the floor price of the quotation to the ceiling price of the quotation

2. The ceiling price of the quotation of a thermoelectric generating station is calculated annually, adjusted monthly on the following bases:

a) Heat loss rate of the generating station;

b) The factor of productivity decline over time of the generating station;

c) Fuel price;

d) Start expenses

3. The floor price of a thermoelectric generating station is 1 VND/kWh.

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Article 11. Water value

1. The water value use for making operation plans for the coming year, coming month, coming week, and limiting the quoted prices of hydroelectric generating stations in the electricity market.

2. The System and market operator must calculate and announce the water level in accordance with the market timetable prescribed in this Annex 1 of this Circular..

Article 12. Full market price (FMP)

The full market price of a trading cycle is the sum of:

1. System marginal price (SMP).

2. Capacity add-on (CAN).

Article 13. System marginal price (SMP)

1. SMP is the general price for the whole system, used for calculate the electricity payments on the electricity market for each trading cycle.

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3. SMP must not exceed the market ceiling price calculated by the System and market operator and approved by The Electricity Regulatory Authority every year.

4. The calculation of SMP is prescribed in Article 63 and Article 65 of this Circular.

Article 14. Capacity add-on (CAN).

1. CAN of each trading cycle is calculated by the System and market operator during making the operation plan of the coming year, and is not changed during the year of application.

2. CAN is calculated so that the best new power plant can recoup the variable and fixed expenses.

3. The calculation of CAN is prescribed in Article 25 and Article 26 of this Circular.

Article 15. Contracts for difference

1. The power generating unit trading directly and the Single buyer must sign contracts for difference made under the form promulgated by the Ministry of Industry and Trade.

2. The annual contractual generation output is calculated by the System and market operator based on the annual planned output and the proportion of payment output according to the contractual price as prescribed in Clause 5 this Article. The annual contractual generation output is calculated by the System and market operator during planning the operation of the coming year as prescribed in Article 27 of this Circular.

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4. The hourly contractual generation output is calculated by the System and market operator during planning the operation of the coming month based on the distribution of annual contractual output to the hours in that month as prescribed in Article 35 of this Circular.

5. The annual contractual generation output is calculated by the System and market operator based on the annual planned output and the proportion of payment output according to the contractual price as prescribed in Clause 5 this Article.

a) Objectives:

- Step by step reduce generation output paid at contractual price;

- Stabilize the revenue of power generating units;

- Stabilize the average electricity price, in compliance with the provisions on electricity retail pricing.

b) The proportion of generation output paid at contractual price in the year when the electricity market starts to operate must not exceed 95%, and must reduce in the succeeding years but must not be lower than 60%.

Article 16. principles of payment in the electricity market

1. Power generating units are paid at the contractual price or electricity market price.

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a) Contracts for difference for power generating units that directly make transactions;

b) PPAs for multi-purpose strategic hydroelectric plants;

c) Contracts for difference for power generating units that provide ancillary services;

3. The payments at the market price are only applicable to direct trading generators, and calculated based on the following factors:

a) SMP.

b) CAN.

c) The mobilized power and generation output.

4. The payments shall be made as prescribed in Chapter VI of this Circular.

Chapter IV

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SECTION 1. YEAR-AHEAD OPERATION PLAN

Article 17. Year-ahead operation plan

1. The System and market operator must make year-ahead operation plans, including:

a) The selection of the best new power plant;

b) Calculating CAN;

c) Calculating the water value and limited water level of hydroelectric reservoirs;

d) Calculating the quotation limits of thermoelectric generating stations;

dd) Determining the ceiling market price.

e) Leading and cooperating with the Single buyer in calculating the annual contractual output and planned generation output, and the distribution of annual contractual output to the months in a year of the direct trading generators.

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3. The System and market operator must submit the year-ahead operation plan according to the timetable prescribed in Annex 1 of this Circular to Vietnam Electricity for appraisal and to The Electricity Regulatory Authority for approval. The dossier must include the calculations prescribed, input data, and description.

Article 18. Classification of hydroelectric plants

1. The hydroelectric plants are classified as follows:

a) Multi-purpose strategic hydroelectric plants;

b) Groups of conventional hydroelectric plants;

c) Other hydroelectric plants.

2. Every year, the System and market operator must update the list of groups of conventional hydroelectric plants.

3. The Electricity Regulatory Authority must make and send the list of multi-purpose strategic hydroelectric plants to the Ministry of Industry and Trade for sending to the Prime Minister for approval.

Article 19. Estimating load for making year-ahead operation plan

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1. The total load of the system and the loads of each region (the North, the Middle, the South) for the whole year and each month in the year.

2. The load chart of typical days of the North, the Middle, the South, and all the months in a year.

3. The maximum and minimum load of the system in each month.

Article 20. Ancillary services for year-ahead operation plan

1. The System and market operator must determine the demand for ancillary services of the year ahead as prescribed in the Regulation on electricity transmission system promulgated by the Ministry of Industry and Trade.

2. The System and market operator must select power plants that provide ancillary services and sign the services contract with the power generating unit under the form promulgated by the Ministry of Industry and Trade.

Article 21. Classification of base load, intermediate load, and peak load stations of year ahead

1. The System and market operator must classify the base load, intermediate load, and peak load stations as prescribed in the Classification procedures, and calculate the ceiling price of the quotation of the thermoelectric plant.

2. The System and market operator must use the market simulation model to calculate the annual average load factor of the generating stations.

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a) Base load stations include the generating stations of which the annual average load factor ≥ 60%;

b) Intermediate load stations include the generating stations of which the annual average load factor is higher than 20% and lower than 60%;

c) Peak load stations include the generating stations of which the annual average load factor ≤ 25%.

Article 22. Determining quoted prices of thermoelectric generating stations

1. Calculating the ceiling price of thermoelectric generating stations

a) Ceiling price of the quotation of a thermoelectric generating station is calculated as follows:

In particular:

: ceiling price of the quotation of the thermoelectric generating station (VND/kWh);

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f: coefficient of auxiliary expenses, calculated by the ratio of total variable expenses on auxiliary fuel, operation and maintenance to the expense on primary fuel;

PNL: the price of primary fuel of the thermoelectric generating station (VND/BTU);

: heat loss rate of the thermoelectric generating station (BTU/kWh).

b) The fuel price used to calculate the ceiling price of the quotation is the estimated fuel price for N-year provided for the System and market operator by the Single buyer. The fuel price is calculated within the power plant boundary;

c) The heat loss rate of a station is calculated based on the heat loss rate agreed in the PPAs or the contract negotiation documents provided by the Single buyer, and adjusted based on the productivity decline factor.

If a thermoelectric generating station does not have the data about the heat loss rate in the PPA or contract negotiation documents, the heat loss rate of such station shall equal the heat loss rate of a standard power plant in the same group of generation technology and installed capacity. The System and market operator must calculate the heat loss rate of the standard power plant.

If there is no data about the heat loss rate in the PPA or contract negotiation documents and no standard power plant in the same class, the System and market operator shall calculate the heat loss rate based on the previous operation data provided by the power generating unit.

d) The productivity decline factor of a station is calculated based on the productivity decline factor in the PPA or the contract negotiation documents provided by the Single buyer.

If a thermoelectric generating station does not have the data about the productivity decline factor in the PPA or contract negotiation documents, the productivity decline factor of a standard power plant in the same group determined by the System and market operator shall apply;

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2. The floor price of thermoelectric generating stations is prescribed in Clause 3 Article 10 of this Circular.

3. The System and market operator must announce the approved quotation limits of the thermoelectric generating stations in accordance with the market timetable prescribed in Annex 1 of this Circular.

Article 23. Quotation limits of BOT power plants

1. The ceiling price of the quotation of a BOT power plant equals the electricity price in the PPA of the BOT plant

2. The floor price of the quotation of a BOT power plant = 1 VND/kWh.

Article 24. Selecting the best new power plant

1. The best new power plant in N-year is a power plant that participates in the electricity market and satisfy the following criteria:

a) Starting to operate commercially and generate all the installed power in N-1 year;

b) Being a base load power plant, classified by the criteria in Clause 3 Article 21 of this Circular;

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d) The average overall electricity generation price for 1 kWh is lowest

2. The Single buyer must make the list of power plants that satisfy the criteria in Point a and Point c Clause 1 this Article, and provide the data of their PPAs to the System and market operator to determine the best new power plant. The data includes:

a) The variable price of N-year;

b) The fix price of N-year;

c) The agreed generation output for calculating the contractual price.

3. If there is no power plant satisfy the criteria prescribed in Point a, b and c Clause 1 this Article, the System and market operator shall use the selected the best new power plant in N-1 year and request the Single buyer to update and provide the data prescribed in Clause 2 this Article to calculate for the N-year.

4. The System and market operator must calculate the average overall generation expense on 1 kWh for the power plants that satisfy the criteria prescribed in Point a, b and c Clause 1 this Article using the following formula:

: average overall electricity generation expense on 1 kWh in N-year of the power plant (VND/kWh);

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: variable price for N-year according to the contracts for difference of the power plant (VND/kWh);

: the agreed generation output for calculating the contractual price for N-year of the power plant (kWh);

: estimated generation output in N-year of the power plant determined from the market simulation model using the method of restricted scheduling (kWh).

5. The chosen best new power plant in N-year is the power plant of which the average overall electricity generation expense on 1 kWh is lowest according to the calculation in Clause 4 this Article.

Article 25. Principle of calculating CAN

1. Ensure that the best new power plant can completely recoup the generation expense when participating in the electricity market.

2. Do not apply CAN to the off-peak hour at night: 0:00 – 4:00, 22:00 – 24:00.

3.  CAN is proportional with the estimated system load of a trading cycle.

Article 26. Order for calculating CAN

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1. a) The selection of the best new power plant;

a) the estimated revenue on the market of the best new power plant is calculated as follows:

In particular:

RTTĐ: estimated revenue according to SMP of the best new power plant in N-year (VND);

i: i^th trading cycle in N-year;

I: total trading cycles in N-year;

SMPi: estimated SMP of the i^th trading cycle in N-year calculated from the electricity market simulation model using the method of unrestricted scheduling (VND/kWh);

: estimated generation output in N-year of the best new power plant in the i^th trading cycle determined from the market simulation model using the method of restricted scheduling (kWh).

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In particular:

TC_BNE: annual generation expense of the best new power plant in N-year (VND);

P_BNE: average overall electricity generation expense on 1 kWh of the best new power plant calculated in Clause 4 Article 24 of this Circular (VND/kWh);

: estimated generation output in N-year of the best new power plant in the i^th trading cycle determined from the market simulation model using the method of restricted scheduling (kWh).

i: i^th trading cycle in N-year;

I: total trading cycles in N-year.

b) Calculate the annual shortage of expense of the best new power plant using the following formula:

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AS: annual shortage of expense of the best new power plant in N-year (VND);

TC_BNE: annual total generation expense of the best new power plant in N-year calculated in Point b this Clause (VND);

 : estimated revenue according to SMP of the best new power plant in N-year calculated in Point a this Clause (VND).

2. Calculating monthly lacking expense:

Monthly lacking expense of the best new power plant is calculated by distributing the annual shortage of expense to the months in N-year using the following formula:

In particular:

t: t-month in N-year;

MS: shortage of expense of t-month of the best new power plant (VND);

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: peak load in t (MW).

3. Calculating CAN in a trading cycle.

a) The annual average usable power of the best new power plant is calculated as follows:

In particular:

Q_BNE: average usable power in N–year of the best new power plant (kW);

I: total number of trading cycles in N-year, except off-peak hours at night;

i: the trading cycle that the best new power plant is planned to be mobilized except off-peak hours at night;

: estimated mobilized power of the best new power plant in the i^th trading cycle of the N-year determined from the market simulation model using the method of restricted scheduling (kW).

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In particular:

I: total number of trading cycles in t-month , except off-peak hours at night;

i: i^th trading cycle in t-month, except off-peak hours at night;

: CAN of the i^th trading cycle (VND/kW);

Q_BNE: average usable power in N–year of the best new power plant (kW);

MS: lacking expense of t-month of the best new power plant (VND);

: estimated system load of the i^th trading cycle according to the estimated load chart of a typical day in t-month prescribed in Article 19 of this Circular (MW);

: estimated minimum system load of t-month (MW).

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Annual contractual output of a power plant  is calculated while making the year-ahead operation plan, including the following steps:

1. Using the market simulation model to estimate the generation output of the power plant using the method of restricted scheduling.

2. Calculating the annual planned output of the power plant using the following formula:

    if    

   if   

  if   

In particular:

: planned generation output in N-year of the power plant (kWh);

: estimated generation output in N-year of the power plant determined from the market simulation model using the method of restricted scheduling converted into the measuring position (kWh).

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A,b: coefficient of annual generation output adjustment. a = 0.9; b = 1.1

3. Calculate the annual contractual output of the power plant using the following formula:

In particular:

Qc: contractual output in N-year (kWh);

: planned output in N-year of the power plant (kWh);

: proportion of payment output at contractual price applicable to N-year (%).

Article 28. Calculating monthly contractual output

Monthly contractual output of a power plant is calculated while making the year-ahead operation plan, including the following steps:

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2. Calculate the monthly contractual output using the following formula:

In particular:

: contractual output in t-month of the power plant (kWh);

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

: estimated generation output in t-month of the power plant determined from the market simulation model using the method of restricted scheduling (kWh).

Article 29. Responsibility to calculate and conclude annual and monthly contractual output

1. The System and market operator must:

a) Calculate the annual and monthly contractual output of power generating units as prescribed in Article 27 and Article 28 of this Circular;

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2. The Single buyer and direct trading generators must:

a) Provide data for the System and market operator to calculate the annual and monthly contractual output;

b) Check and cooperate with the System and market operator to handle the errors in the calculations;

c) Supplement the annex of annual and monthly contractual output in the contracts for difference according to the calculations.

Article 30. Determining the ceiling market price.

1. The System and market operator must calculate the plans for ceiling market prices, include ceiling market price, estimated average generation price in N-year and the fluctuation of average generation price compared to that in N-1 year. There must be at least 3 plans for the ceiling market prices.

2. The ceiling market price in N-year must not exceed 115% of the ceiling price of the quotation of the most expensive intermediate-load thermoelectric generating station.

3. Calculate the annual average generation price using the following formula:

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j: j^th power plant of the direct trading generator;

J: total number of power plants of the direct trading generator;

P_PDTB: the average generation price of the whole system in N-year (VND/kWh);

: average full market price in N-year prescribed in Clause 4 this Article (VND/kWh);

: total generation output in N-year of the whole system (kWh);

: total generation output in N-year of direct trading generators (kWh);

: total generation output in the Contract for difference in N-year of the j^th power plant (kWh);

: price in the contract for difference in N-year of the j^th power plant (kWh);

: total expense on purchasing electricity from BOT power plants in N-year (VND);

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C_DVPT: total expense on purchasing ancillary services in N-year (VND).

4. The average full market price is calculated as follows:

In particular:

i: i^th trading cycle in N-year;

I: total number of trading cycles in N-year;

: average full market price in N-year (VND/kWh);

: estimated generation output of all power plants that participate in the market in the i^th trading cycle determined from the market simulation model with restricted transmission (kWh);

: estimated SMP of the i^th  trading cycle determined from the electricity market simulation model without restricted transmission (VND/kWh);

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SECTION 2. MONTH-AHEAD OPERATION PLAN

Article 31. Estimating load for making month-ahead operation plan

The System and market operator must estimate the load to make the month-ahead operation plan using the method prescribed in the Regulation on electricity transmission system promulgated by the Ministry of Industry and Trade. The load estimate for making month-ahead operation plan includes:

1. The total load of the system and the loads of each region (the North, the Middle, the South) for the whole month and each week in the year.

2. The load chart of typical days of the North, the Middle, the South, and all the weeks in a month.

Article 32. Calculating water value

The System and market operator must calculate the water value for the weeks in the month ahead. The water value is used to make the month-ahead operation plan, including:

1. Estimated output of multi-purpose strategic hydroelectric plants.

2. Water value of groups of conventional hydroelectric plants.

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4. The limited water level of hydroelectric reservoirs of the weeks in a month.

Article 33. Classification of base load, intermediate load, and peak load generating stations of month ahead

1. The System and market operator must classify the base load, intermediate load, and peak load stations in the month ahead as prescribed in the Classification procedures, and calculate the monthly ceiling price of the quotation of the thermoelectric plant.

2. The System and market operator must use the market simulation model to calculate the monthly average load factor of the generating stations in the month ahead.

3. Based on the monthly average load factor from the simulation results, the stations are classified as 3 following groups:

a) The base load stations including the generating stations of which the monthly average load factor ≥ 70%;

b) The intermediate load stations including the generating stations of which the monthly average load factor is higher than 25% and lower than 70%;

c) The peak load stations including the generating stations of which the monthly average load factor ≤ 25%.

Article 34. Adjusting the ceiling price of the quotation of thermoelectric generating stations

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2. The System and market operator must announce the ceiling price of the quotation of the thermoelectric generating stations in the month ahead according to the market timetable prescribed in Annex 1 of this Circular.

Article 35. Calculating hourly contractual output

The System and market operator must calculate the hourly contractual output in the month ahead for the power plant as follows:

1. Using the market simulation model to estimate the generation output of each hour in the month of the power plant.

2. Calculate the hourly contractual output using the following formula:

In particular:

i: the i^th trading cycle in the month;

I: total number of cycles in the month;

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: estimated generation output of the power plant in the i^th trading cycle calculated from the market simulation model using the method of restricted scheduling (kWh).

: monthly contractual output of the power plant determined as prescribed in Article 28 of this Circular (kWh);

3. The System and market operator must send the calculations of the hourly contractual output to the Single buyer and direct trading generators in accordance with the market timetable prescribed in Annex 1 of this Circular.

4. The Single buyer and direct trading generators must certify the hourly contractual output calculated by the System and market operator.

SECTION 3. WEEK-AHEAD OPERATION PLAN

Article 36. Week-ahead water value

1. The System and market operator must update the data of load estimate, hydrography, and the relevant data to calculate the week-ahead water value.

2. The System and market operator must update the information and recalculate the week-ahead water value and announce the following results:

a) Estimated hourly output and water value of multi-purpose strategic hydroelectric plants;

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c) Water value of other hydroelectric plants.

d) The weekly limited water level of hydroelectric reservoirs.

Article 37. Quotation limits of power plants

The quotation limits of a hydroelectric plant are calculated based on the week-ahead water value of that plant, and announced as prescribed in Clause 2 Article 36 of this Circular. In particular:

1. If the water value > 0 VND/kWh:

a) The ceiling price of the hydroelectric plant = 110% of the water value;

b) The floor price of the hydroelectric plant = 80% of the water value.

2. If the water value ≤ 0 VND/kWh, the ceiling price and floor price of the hydroelectric plant = 0 VND/kWh.

Chapter V

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SECTION 1. ELECTRICITY MARKET OPERATION OF DAY AHEAD

Article 38. Information for electricity market operation of day ahead

Before 9:00 of the D-1 day, the System and market operator must determine and announce the following information:

1. The D-day load estimate chart of the whole system and each region (the North, the Middle, the South).

2. The estimated exported and imported generation output in each trading cycle of the D-day. The exported and imported generation output supplied by the Single buyer as prescribed in Article 58 and Article 59 of this Circular.

3. The short-term system security assessment for D-day as prescribed in the Regulation on electricity transmission system promulgated by the Ministry of Industry and Trade.

Article 39. Quotation

A quotation must comply with the following principles:

1. Having at lest 5 couples of prices (VND/kWh) and power (MW) for each station in each trading cycle of D-day.

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3. The minimum pricing step is 3 MW.

4. The specifications of the station, include:

a) The announced power of the station on D-day;

b) The minimum stable power of the station;

c) The speed of increasing and decreasing the maximum power of the station.

5. The announced power of the station in the D-day quotation must not be lower than that in the D-2 day in accordance with the short-term electricity system security assessment procedures prescribed in the Regulation on electricity transmission system, except for inevitable technical breakdowns.

6. The first range of powers in the quotation must equal the minimum stable power of the station. The last range in the quotation must equal the announced power.

7. The unit of quoted prices is VND/kWh, the smallest decimal is 0.1.

8. The quoted prices must be in the range from the floor price to the ceiling price of the station inversely proportional to the offered powers.

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Article 40. Quotations of groups of conventional hydroelectric plants;

1. Groups of conventional hydroelectric plants must provide a joint quotation and comply with the quotation limits prescribed in Article 37 of this Circular.

2. The power plants in a group of conventional hydroelectric plants must make an agreement on appointing a representative unit to provide quotations. The representative unit that provides quotation must submit a written registration enclosed with the written agreement among the power plants in the group of conventional hydroelectric plants to the System and market operator.

3. If the representative unit of a group of conventional hydroelectric plants is not registered, the System and market operator must provide quotations on their behalf, in accordance with their water value.

4. The representative unit  that provides quotations must comply with the provisions on quoting applicable to all power plants in groups of conventional hydroelectric plants.

5. The water value of a group of conventional hydroelectric plants is the water value of the biggest hydroelectric reservoir on that level. The System and market operator must determine the hydroelectric reservoirs used in the calculation of water value for a group of conventional hydroelectric plants, and classify the hydroelectric plants prescribed in Article 18 of this Circular.

6. In case there is a multi-purpose strategic hydroelectric plant in a group of conventional hydroelectric plants:

a) The System and market operator must announce the hourly generation output in the week ahead of each power plant in the group of conventional hydroelectric plants as prescribed in Clause 2 Article 36 of this Circular;

b) When the announced output of the multi-purpose strategic hydroelectric plant in the group is changed as prescribed in Article 51 of this Circular, the System and market operator must adjust the announced output of the power plants at the lower levels accordingly.

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1. Other hydroelectric plants that have regulation reservoirs more than 01 week must provide quotations and comply with the quotation limits prescribed in Article 37 of this Circular.

2. Other hydroelectric plants that have regulation reservoirs less than 01 week must announce the hourly generation output of D-day to the System and market operator before 10:00 on the D-1 day to make the mobilization schedule.

3. The Single buyer must provide quotation on behalf of BOT power plant.

Article 42. Quotation submission

1. Before 10:00 of D-1 day, quoting units must submit the quotation of D-day.

2. Quoting units shall submit the quotation via the market information system. If the market information system is not available, quoting units must reach an agreement with the System and market operator on other methods of quotation submission in the following order:

a) By email to the email address provided by the System and market operator;

b) By fax to the fax number provided by the System and market operator;

c) Direct submission at the System and market operator.

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1. 30 minutes before the end of the quoting period, the System and market operator must check the validity of the quotations received from the quoting units as prescribed in Article  39 of this Circular. If a quoting unit sends multiples quotations, only the last one received shall be considered.

2. If a quotation is not valid, the System and market operator must promptly notify the sender and request them to submit another quotation before the end of the quoting period.

3. Right after being notified by the System and market operator of the invalid quotation, the quoting unit must amend and submit it again before the end of the quoting period. 

Article 44. Scheduled quotations

1. After the end of the quoting period, the System and market operator must check the validity of the last quotations received as prescribed in Article 39 of this Circular. The last valid quotation received shall be used as a scheduled quotations for making the day-ahead mobilizing schedule.

2. If the System and market operator doest not receive the quotation, or the last quotation is not valid, the System and market operator shall use the default quotation of that power generating unit as a scheduled quotations.

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

a) For thermoelectric plants, the default quotation is the nearest valid quotation or quotation of a similar generating station determined by the System and market operator;

b) For hydroelectric plants and groups of conventional hydroelectric plants, the default quotation is the quotation which the quoted price equals the announced weekly water value.

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The System and market operator must use the data below to make day-ahead mobilization schedules:

1. The D-day load chart of the whole system and each region (the North, the Middle, the South).

2. The scheduled quotations from quoting units.

3. The announced output of hydroelectric plants prescribed in Clause 2 Article 36, Clause 6 Article 40, and Clause 2 Article 41 of this Circular.

4. The imported and exported generation output prescribed in Article 58 and Article 59 of this Circular.

5. The power of power plants that provide ancillary services.  

6. Requirements for spinning reserve and frequency control power.

7. The transmission grid repair and maintenance schedule and the generating station approved by the System and market operator.

8. The short-term system security assessment for D-day as prescribed in the Regulation on electricity transmission system promulgated by the Ministry of Industry and Trade.

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Article 46. Making day-ahead mobilization schedules

The System and market operator is responsible for making day-ahead mobilization schedules. A day-ahead mobilization schedule includes:

1. The unrestricted mobilization schedule, including:

a) The SMP in each day-ahead trading cycle;

b) The mobilization order of generating stations in each day-ahead trading cycle.

2. The restricted mobilization schedule, including:

a) The planned mobilization chart of each generating station in each day-ahead trading cycle.

b) The starting and stopping schedule, and the anticipated connection status of each station on the day ahead;

c) The method of operation and wire connection diagram of the electricity system in each day-ahead trading cycle;

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Article 47. Announcing day-ahead mobilization schedules

Before 15:00 every day, the System and market operator must announce the information in the day-ahead mobilization schedule. In particular:

1. The anticipated mobilized power (including frequency control and spinning reserve) of the stations in each day-ahead trading cycle.

2. The SMP in each day-ahead trading cycle.

3. The list of stations anticipated to increase or decrease the generation power in each day-ahead trading cycle..

4. Warnings about shortage of power on day ahead (if any), including:

a) The anticipated trading cycle of power shortage;

b) Minimum power;

c) The violated restrictions on system security.

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a) The anticipated trading cycle of power excess;

b) The stations planned to stop generating.

Article 48. Connecting generating stations

1. For slow-starting stations, the power generating unit must be ready to connect them in accordance with the day-ahead mobilization schedule announced by the System and market operator. If the starting period of the station exceeds 24 hours, the power generating unit must be ready to connect it based on the short-term system security assessment announced by the System and market operator.

2. For non-slow-starting stations, the power generating unit must be ready to connect them in accordance with the hour-ahead mobilization schedule announced by the System and market operator.

Article 49. Handling measures for warnings about power shortage 

1. Adjusting quotations

a) Quoting units may adjust and submit the quotation for day ahead or for the remaining trading cycles in D-day to the System and market operator at least 60 minutes before the operation time of which the quoted price is changed;

b) The adjusted quotation must not reduce the offered power nor changing the quoted prices compared to the day-ahead quotation of that quoting unit;

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2. Adjusting the announced power of multi-purpose strategic hydroelectric plants 

The System and market operator may adjust the announced output of the multi-purpose strategic hydroelectric plants as prescribed in Clause 2 Article 51 of this Circular.

SECTION 2. ELECTRICITY MARKET OPERATION OF HOUR AHEAD

Article 50. Data for making hour-ahead mobilization schedules

The System and market operator must use the data below to make hour-ahead mobilization schedules:

1. The load chart of the whole system and each region (the North, the Middle, the South) estimated for hour ahead and the succeeding 03 hours.

2. The scheduled quotations of quoting units.

3. The connection plan of the slow-starting stations according to the announced day-ahead mobilization schedules.

4. Announced output of multi-purpose strategic hydroelectric plants.

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6. The readiness of the transmission grid and generating stations from the SCADA system or provided by transmission network operators and power generating units.

7. Other restrictions on system security.

Article 51. Adjusting the announced output of multi-purpose strategic hydroelectric plants

1. Before making hour-ahead mobilization schedules, the System and market operator may adjust the hourly generation output of multi-purpose strategic hydroelectric plants announced as prescribed in Clause 2 Article 36 of this Circular in the following cases:

a) Having unusual hydrographical fluctuation;

b) Having warnings about power shortage according to day-ahead mobilization schedules;

c) Having decisions from competent State management agencies on regulating the reservoirs of multi-purpose strategic hydroelectric plants for the purpose of irrigation and flooding prevention.

2. The range of regulating the hourly output of multi-purpose strategic hydroelectric plants in the cases prescribed in Point a and Point v Clause 1 this Article is annually prescribed by The Electricity Regulatory Authority at the request of the System and market operator based on the electricity market and electricity system operation in the preceding year. In the first year of electricity market operation, the range of regulation is ± 5%.

Article 52. Making hour-ahead mobilization schedules

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2. Making hour-ahead mobilization schedules during power shortage

a) The System and market operator shall schedule the mobilization of the stations in the following order:.

- According to the scheduled quotation;

- The multi-purpose strategic hydroelectric plants according to adjusted output;

- The stations that provide services of fast-start reserve and cold start reserve according to day-ahead mobilization schedules;

- The stations that provide services of reliability must-run;

- Spinning reserve power;

- Reducing the frequency control reserve power to the allowed minimum level.

The System and market operator shall check and estimate the amount of power that needs to be discarded to ensure system security.

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Before 15:00 every day, the System and market operator must adjust hour-ahead mobilization schedules in the following order:

a) Stop the stations that voluntarily stop generating;.

b) Minimize the generation output of the spinning reserve stations;

c) Minimize the generation output of the frequency control stations;

d) Stop the non-slow-starting stations from highest to lowest prices according to the quotation;

d) Gradually reduce the generation output of slow-starting stations lowest stable generation output;

e) Stop the slow-starting stations in the following orders:

- The shortest startup time;

- The lower starting expense. The startup expense agreed by the Single buyer and power generating units, and provided to the System and market operator;.

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Article 53. Announcing hour-ahead mobilization schedules

The System and market operator must announce the hour-ahead mobilization schedule before the operation 15 minutes, including:

1. The estimated load of the whole system and each region (the North, the Middle, the South). 

2. The mobilization schedule of generating stations of hour ahead and the succeeding 3 hours made as prescribed in Article 52 of this Circular.

3. The measures of the System and market operator for power shortage and power excess.

4. The information about the adjustment of announced power of multi-purpose strategic hydroelectric plants as prescribed in Article 51 of this Circular.

5. The schedule of discarding load (if any).

Section 3. REAL-TIME OPERATION

Article 54. Regulate real-time electricity system

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2. Power generating units must comply with the dispatch instruction from the System and market operator.

Article 55. Electricity market intervention

1. Cases of electricity market intervention

The System and market operator may intervene the electricity market in the following cases:

a) The system runs in the emergency mode prescribed in the Regulation on electricity transmission system promulgated by the Ministry of Industry and Trade;

b) The hour-ahead mobilization schedule is not made before the operation 15 minutes.

2. Measures of electricity market intervention

The System and market operator shall schedule the mobilization of the stations in the following order:

a) According to the valid quotations from quoting unit in that trading cycle;

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- Apply the floor price to the contractual output;

- Apply the ceiling price of the quotation to the remaining output.

c) If the measures prescribed in Point a and Point b this Clause cannot be taken, the System and market operator must mobilize the stations to meet the objectives in the following order:

- Ensure the balance of output and load;

- Satisfy the requirements for frequency control reserve;

- Satisfy the requirements for spinning reserve;

- Satisfy the requirements for voltage quality.

3. Disclosing information about electricity market intervention

a) When intervening the electricity market, the System and market operator must disclose the following information:

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- The trading cycles planned to intervene.

b) within 24 hours as form the end of the electricity market intervention, the System and market operator must announce the following information:

- Reasons for electricity market intervention

- The intervened trading cycles;

- The measures taken by the System and market operator to intervene the electricity market.

Article 56. Suspending the electricity market

1. The electricity market shall be suspended in one of the following cases:

a) States of emergency related to natural disaster or National defense and security;

b) The System and market operator requests the suspension in the following cases:

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- The security and continuity of electricity market operation is not ensured.

c) The electricity market operation does not achieve the set targets.

2. The Electricity Regulatory Authority must consider and make decisions on suspending the electricity market in the cases prescribed in Clause 1 aquatic products Article and notify it to the System and market operator.

3. The System and market operator must notify the participants in the electricity market of the decisions on suspending the electricity market made by the Electricity Regulatory Authority.

4. Operating the electricity system during the electricity market suspension:

a) The System and market operator must regulate and operate the electricity system in accordance with the following principles:

- Ensure that the system is operated safely, stably, and reliably with lowest electricity purchase price for the whole system;

- Fulfill the agreements on the output in the electricity export and import contracts, PPAs of BOT power plant, and PPAs with committed output of other power plants;

b) The power generating units, Transmission network operators, and other relevant units must comply with the dispatch instruction of the System and market operator.

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1. The electricity market shall be restored when the following conditions are satisfied:

a) The causes for suspending the electricity market are settled;

b) The System and market operator certifies the restoration of the electricity market operation.

2. The Electricity Regulatory Authority must consider and make decisions on restoring the electricity market and notify it to the System and market operator.

3. The System and market operator must notify the participants in the electricity market of the decisions on restoring the electricity market made by the Electricity Regulatory Authority.

SECTION 4. EXPORTING, IMPORTING ELECTRICITY IN ELECTRICITY MARKET OPERATION

Article 58. Handling exported electricity when scheduling mobilization

1. Before 16:00 on D-2 day, the Single buyer must notify the System and market operator of the estimated exported generation output in each trading cycle of D-day.

2. The exported generation output is calculated similarly to the load at the export location and used for estimating the system load serving the making of day-ahead and hour-ahead mobilization schedules.

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1. Before 16:00 on D-2 day, the Single buyer must notify the System and market operator of the imported electricity in each trading cycle of D-day.

2. The imported electricity is calculated similarly to the generator at the import location with the quoted price at 0 VND/kWh when making day-ahead and hour-ahead mobilization schedules.

Article 60. Payment for exported and imported electricity

Exported and imported electricity is paid under the PPA signed by the Single buyer.

Chapter VI

CALCULATING SMP AND PAYMENT IN THE ELECTRICITY MARKET

Section 1. ELECTRICITY MEASUREMENT DATA

Article 61. Provision of measurement data

1. Before 15:00 on D+1 day, MDMSP must provide the electricity measurement data of each trading cycle of D-day to the System and market operator.

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Article 62. Keeping measurement data

The System and market operator must keep the electricity measurement data and relevant documents in at least 5 years.

Section 2. CALCULATING SMP AND PAID POWER

Article 63. Calculating SMP

1. After D-day, the System and market operator must schedule the calculation of SMP for each trading cycle of D-day in the following order:

a) Calculate the system load in the trading cycle by converting the measurable output to the terminal of generating stations;

b) Arrange the ranges of power in the scheduled quotations from power generating units and the announced output of multi-purpose strategic hydroelectric plants using the method of unrestricted scheduling until the total power meets the system load.

2.  SMP equals the quoted price of the last range of power in the schedule of SMP calculation. In case the quoted price of the last range of power in the schedule of SMP calculation is higher than the ceiling market price, SMP shall equal the ceiling market price.

3. Before 9:00 on D+2 day, the System and market operator must announce the SMP of each trading cycle of D-day.

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1. After D-day, the System and market operator must make the power schedule for each trading cycle of D-day in the following order:

a) The adjusted load in a trading cycle equals the system load plus:

- a) The spinning reserve power for the trading cycle;

- a) The frequency control power for the trading cycle;

- The proportion of encouraged power (at 3% of the system load of a trading cycle).

b) Arrange the ranges of power in the scheduled quotations from power generating units and the announced output of multi-purpose strategic hydroelectric plants using the method of unrestricted scheduling until the total power meets the adjust load. The power of frequency control and spinning reserve for the trading cycle of the station is arranged with the quoted price at 0 VND/kWh.

2. The paid power of the station in the trading cycle equals the power of that station in the power schedule.

3. Before 9:00 on D+2 day, the System and market operator must announce the paid power of each station in the trading cycles of D-day.

Article 65. Calculating SMP and paid power when intervening the electricity market

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a) The System and market operator must use valid quotations to calculate SMP as prescribed in Article 63, and the paid power as prescribed in Article 64 of this Circular;

b) In case the station does not provide valid quotations, the System and market operator shall apply the floor price to the hourly contractual output, and apply the ceiling price of the quotation to non-contractual output to make SMP calculation schedule and the power schedule for that trading cycle.

2. In case the market intervention lasts longer than 24 hours, the System and market operator is not responsible for calculating SMP and paid power for the intervened period.

Section 3. MAKING PAYMENTS TO DIRECT TRADING GENERATORS

Article 66. The generation output serving the electricity market payment

1. The System and market operator must calculate the proportions of generation output or power plants in the trading cycles serving the electricity market payment, including:

a) The generation output paid at quoted prices for thermoelectric plants quoting prices higher than the ceiling market price (Qbp);

b) Extra output (Qcon);

c) The generation output paid at the SMP (Qsmp).

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a) Determining the stations with higher quoted prices than the ceiling market price

b) The generation output paid at quoted prices at each measuring location determined in Point a this Clause is calculated as follows:

          if  

                                                      if  

In particular:

i: the i^th trading cycle;

j: the j^th measurement position of the thermoelectric plant, specified in Point a this Clause;

: the generation output paid at the quoted price at the measuring position in the i^th trading cycle (kWh);

: the measurable generation output at the measuring position in the i^th trading cycle (kWh);

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: the generation output corresponding to the power with quoted at prices higher than the ceiling market price and arranged in the market price calculation schedule in the i^th trading cycle of the stations connected to the measuring position j, and converted to that measuring position (kWh).

c) The generation output paid at the quoted price is calculated as follows:

In particular:

j: the j^th measurement position of the thermoelectric plant, specified in Point a this Clause;

J: The total number of measuring positions of power plant with the station quoted at a higher price that ceiling market price and scheduled to calculate the market price;

: the generation output paid at the quoted price of the power plant in the i^th trading cycle (kWh);

: the generation output paid at the quoted price at the j^th measuring position in the i^th trading cycle (kWh);

3. The extra generation output of the power plant in the i^th trading cycle is determined in the following order:

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b) Calculating the extra generation output in a trading cycle at the terminal of the station as follows:

- If the station is not restricted to generate under an hour-ahead mobilization schedule and generate extra power under dispatch instruction in a trading cycle:

- In case the station is restricted to generate under a hour-ahead mobilization schedule:

In particular:

: extra generation output of the station at the terminal in the i^th trading cycle (kWh);

: Generation power of the station according to the dispatch instruction of the System and market operator in the i^th trading cycle (kW);

: Generation power of the station according to the dispatch instruction of the System and market operator in the i^th trading cycle (kW);

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: the period of extra generation according to the dispatch instruction in the i^th trading cycle (minute).

c) Calculating the extra generation output in the trading cycle of the station, , by converting the output  from the terminal of the station to the measuring position.

d) Calculate the extra generation output of the power plant in the i^th trading cycle using the following formula:

In particular:

: extra generation output of the station at the terminal in the i^th trading cycle (kWh);

g: the station that generates extra power in the i^th trading cycle;

G: total number of stations that generate extra power of the power plant in the i^th trading cycle;

: extra generation of the g^th station in the i^th trading cycle (kWh);

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In particular:

: the generation output paid at SMP of the power plant in the i^th trading cycle (kWh);

: the measurable generation output of the power plant in the i^th trading cycle (kWh);

: the generation output paid at the quoted price in the i^th trading cycle for thermoelectric plants quoting prices higher than the ceiling market price(kWh);

: extra generation output of the power plant in the i^th trading cycle (kWh).

Article 67. Market electricity payment

1. The System and market operator must calculate the total payment for market electricity of the power plant in the payment cycle using the following formula:

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Rg: total market electricity payment in the payment cycle (VND);

Rsmp: payment for the generation output paid at SMP in the trading cycle (VND);

Rbp: payment for the generation output paid at the quoted price for thermoelectric plants quoting prices higher than the ceiling market price in the payment cycle (VND);

: payment for the extra generation in the payment cycle (VND).

2. The payment for the generation paid at SMP of the power plant in the trading cycle is calculated in the following order:

a) Calculate for each trading cycle using the following formula:

In particular:

: payment for the generation paid at SMP of the power plant in the i^th trading cycle in the payment cycle (VND);

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: the generation paid at the SMP in the i^th trading cycle in the payment cycle (kWh);

b) Calculate for a payment cycle using the following formula:

In particular:

: payment for the generation paid at SMP of the power plant in the payment cycle (VND);

i: the i^th trading cycle in the payment cycle;

l: number of trading cycles in the payment cycle;

: payment for the generation paid at SMP of the power plant in the i^th trading cycle (VND);

3. The payment for the generation paid at the quoted price for thermoelectric plants quoting prices higher than the ceiling market price in the payment cycle is determined in the following order:

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- If the measurable generation output of the power plant is higher or equals the generation paid at the contractual price:

In particular:

: payment for the generation paid at the price higher than the ceiling price of the power plant in the i^th trading cycle (VND);

j: the j^th quoting range in the quotations from the stations of the thermoelectric plants quoting prices higher than the ceiling market price and are arranged in the SMP calculation schedule

j: total number of quoting ranges in the quotations from the thermoelectric plant quoting prices higher than the ceiling market price and are arranged in the SMP calculation schedule;

: the quoted price corresponding to the j^th quoting range in the quotation of the stations of the g^th thermoelectric plant in the i^th trading cycle (VND/kWh);

: the highest quoted price in the quoting ranges arrange in the SMP calculation schedule of the thermoelectric plant in the i^th trading cycle (VND/kWh);

: Total quoted power at the price  in the quotation of the thermoelectric plant mobilized in the trading cycle and converted to the measuring position (kWh);

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- If the measurable generation output of the power plant is smaller than the generation paid at the contractual price:

In particular:

: payment for the generation paid at the price higher than the ceiling price of the power plant in the i^th trading cycle (VND);

SMPi : SMP in the i^th trading cycle (VND/kWh);

: total generation output quoted at a higher price than the ceiling market price of the power plant in the i^th trading cycle (kWh);

b) Calculate for a payment cycle using the following formula:

In particular:

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I: i^th trading cycle  when the power plant is mobilized at a higher price than the ceiling price;

I: number of trading cycles when the power plant is mobilized at a higher price than the ceiling price;

: payment for the generation quoted at the price higher than the ceiling price of the power plant in the i^th trading cycle (VND);

4. The payment for extra generation of the power plant in the trading cycle is determined in the following order:

a) Calculate for each trading cycle using the following formula:

In particular:

: payment for the extra generation in the i^th trading cycle (VND).

g: the station that generates extra power in the i^th trading cycle;

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: extra generation of the g^th station in the i^th trading cycle (kWh).

: the quoted price corresponding to the extra power range the g^th stations in the i^th trading cycle (VND/kWh);

b) Calculate for a payment cycle using the following formula:

In particular:

: payment for the extra generation in the payment cycle (VND).

i: the i^th trading cycle  of the payment cycle when the thermoelectric plant must generate extra power according to the dispatch instruction;

l: total number of trading cycles when the thermoelectric plant must generate extra power according to the dispatch instruction;

: payment for the extra generation in the i^th trading cycle (VND).

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The System and market operator must calculate the total payment for market power of the power plant in the payment cycle in the following order:

1. Calculate for each trading cycle using the following formula:

In particular:

: payment for power to the power plant in the i^th trading cycle (VND);

g: the generating station of the power plant that is paid at CAN; (VND);

G: total number of generating stations of that are paid at CAN; (VND);

: CAN in the i^th trading cycle (VND/kW);

: the paid power of the g^th station in the i^th trading cycle  (kW);

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In particular:

: payment for power to the power plant in the payment cycle (VND);

i: the i^th trading cycle in the payment cycle;

l: total number of trading cycles in the payment cycle;

: payment for power to the power plant in the i^th trading cycle (VND);

Article 69. Payment under contracts for difference

Based on the SMP and CAN announced by the System and market operator, power generating units must calculate the payment under contract for difference in the payment cycle in the following order:

1. Calculate for each trading cycle using the following formula:

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In particular:

: the difference of payment in the i^th trading cycle (VND);

: the generation paid at the contractual price in the i^th trading cycle (kWh);

Pc: price of contract for difference (VND/kWh);

SMPi : SMP in the i^th trading cycle (VND/kWh);

CANi: CAN in the i^th trading cycle (VND/kWh).

2. Calculate for a payment cycle using the following formula:

In particular:

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i: the i^th trading cycle in the payment cycle;

l: number of trading cycles in the payment cycle;

: the difference of payment in the i^th trading cycle (VND);

Article 70. Payments during electricity market intervention

If the market intervention is shorter than 24 hours, power generating units shall receive the payments in Article 67, Article 68, and Article 69 with the SMP and paid power specified in Article 65 of this Circular.

If the market intervention ≥  24 hours, power generating units shall be paid at the contractual price for all measurable generation.

Article 71. Payment during electricity market suspension

During the electricity market suspension, power generating units shall be paid at the contractual price for all measurable generation.

Section 4. PAYMENT FOR ANCILLARY SERVICES AND OTHER PAYMENTS

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1. The System and market operator must calculate payment for the opportunity cost to power generating units that provide spinning reserve services in the payment cycle in for following order:

a) Calculate for each trading cycle using the following formula:

In particular:

: payment for the opportunity cost to the power generating units in the i^th trading cycle (VND).

g: the station that provide spinning reserve services of the power generating units in the i^th trading cycle;

G: total number of stations that provide spinning reserve services of the power generating units in the i^th trading cycle;

: dispatched power of spinning reserve services of the g^th station in the i^th trading cycle according to the hour-ahead mobilization schedule (kWh);

: opportunity cost in the i^th trading cycle of the g^th station (VND/kWh); The opportunity cost is calculated as follows:

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In particular:

SMPi : SMP in the i^th trading cycle on D-day (VND/kWh);

: highest quoted price in the quoted prices corresponding to the ranges of power of spinning reserve services (VND/kWh).

Calculate for a payment cycle using the following formula:

In particular:

: payment for the opportunity cost in the trading cycle (VND).

i: the i^th trading cycle in the payment cycle when the power generating unit provides spinning reserve services;

l: total number of trading cycles in the payment cycle when the power generating unit provides spinning reserve services;

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2. The opportunity cost is only paid to thermoelectric generating stations that provide spinning reserve services.

Article 73. Payments for spinning reserve, fast-start reserve, cold start reserve, and reliability must-run services

Units that provide services of spinning reserve, fast-start reserve, cold start reserve, and reliability must-run shall be paid under the contracts to provide ancillary services signed with the System and market operator.

Article 74. Payment to multi-purpose strategic hydroelectric plants

The payment to multi-purpose strategic hydroelectric plants are made under the PPAs signed with the Single Buyer.

Article 75. Other payments

1. Power generating units having stations that generate reactive power serving the voltage regulation shall be paid for the electricity taken from the grid to generate reactive power:

a) Based on the SMP, applicable to stations that provide quotations on the electricity market;

a) Based on PPAs, applicable to stations that do not provide quotations on the electricity market.

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3. In case the monthly generation measurement provided by MDMSP as prescribed in Clause 2 Article 61 does not match the total generation measurement of the days in that month provided by MDMSP as prescribed in Clause 1 Article 61 of this Circular, the difference of generation shall be paid at the price in the PPA signed by the Single Buyer and the power generating unit.

Section 5. PAYMENT ORDER AND PROCEDURES 

Article 76. Data serving the electricity market payment

Before 9:00 on D+2 day, the System and market operator must summarize and provide the data serving the payment to each power plant to the Single Buyer and power generating units as prescribed in this Annex 6 of Circular.

Article 77. The statement of payment of the trading day.

1. Before D+4 day, the System and market operator must make and send the preliminary statement of electricity market payment on that trading day under the form provided in this Annex 4 of Circular to the Single Buyer and power generating units.

2. Before D+6 day, direct trading generators and the Single Buyer must notify the errors in the preliminary statement of electricity market payment (if any) to the System and market operator.

3. On D+6 day, the System and market operator must make and send the complete statement of electricity market payment on D-day to the Single Buyer and power generating units.

Article 78. The statement of electricity market payment for the payment cycle

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2. Within 10 working days as from the last trading day of the payment cycle, the System and market operator must make and issue the statement of electricity market payment for the payment cycle.

3. The statement of electricity market payment for the payment cycle includes the statements of payment for each trading day and the summary table made under the form provided in this Annex 5 of Circular, and the written certification specifying the counter number and the generation.

Article 79. Electricity payment documents

1. Direct trading generators shall make and send the invoices of electricity market payments to the Single Buyer based on the statement of electricity market payment for the payment cycle.

2. The power generating unit shall make and send the invoices of contract payments to the Single Buyer under the PPAs signed by the Single Buyer and the power generating unit.

3. Before 20^th every month, the power generating unit must make and send payment invoices to the Single Buyer. The invoices include the electricity market payments and contract payments in the payment cycle.

Article 80. Invoices of payments for auxiliary service contracts

Power generating units must make invoices of ancillary services payments according to auxiliary service contracts between power generating units and the System and market operator.

Article 81. Invoice adjustment

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2. Power generating units must add the adjusted payment to the invoice of the next payment cycle.

Article 82. Making payment

1. On the last day of the month at the latest, the Single Buyer and  the System and market operator must make payment under the invoices from power generating units.

2. Power generating units and the Single Buyer must reach an agreement on the method of payment in the electricity market in conformity with this Circular and relevant provisions.

Article 83. Handling errors of payment

If the payment is excessive or insufficient compared to the invoice, the relevant units shall handle such errors in accordance with the PPA or the auxiliary service contract.

Chapter VII

SOFTWARE SERVING THE ELECTRICITY MARKET OPERATION

Article 84. Software serving the electricity market operation

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a) Market simulation model;

b) Water value calculation model;

c) Mobilization and dispatch scheduling program;

d) Programs serving payment calculation;

dd) Other software programs serving the electricity market operation.

2. The System and market operator must develop and use the software serving the electricity market operation.

Article 85. Requirements for software serving the electricity market operation

1. Ensure the accuracy, reliability, confidentiality, and satisfy the standards formulated by the System and market operator.

2. Have technical and operational guides.

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1. The software service the electricity market operation must be develop to support the calculation and trading prescribed in this Circular, and the operation process of the electricity market.

2. The System and market operator must:

a) Formulate the standards of software serving the electricity market operation;

b) Appraise and check the adherence to the standards prescribed in Point a this Clause before applying;

c) Announce the list of algorithm and order of using the software serving the electricity market operation.

Article 87. Software audit

1. The software serving the market must be audited in the following cases:

a) Before the official operation of the electricity market;

b) Before putting new software into use;

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d) Periodic audit

2. The software audit shall be carried out by independent audit units. The System and market operator must choose independent audit units and obtain the approval from the Electricity Regulatory Authority.

Chapter VIII

THE ELECTRICITY MARKET INFORMATION SYSTEM AND PROVISIONS ON INFORMATION DISCLOSURE.

Section 1. THE ELECTRICITY MARKET INFORMATION SYSTEM

Article 88. The structure of the electricity market information system

The electricity market information system comprises the following components:

1. The system of hardware and software serving the management and exchange of the electricity market information.

2. The database and storage system.

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Article 89. The management and operation of the electricity market information system

1. The System and market operator must develop, manage, and operate the electricity market information system.

2. The participants in the electricity market must invest in the devices within their management in order to satisfy the technical requirements set by the System and market operator, ensuring the connection with the electricity market information system.

3. MDMSP must develop, manage, and operate the connection network between the electricity market information system of the System and market operator and the devices of participants in the electricity market.

4. The System and market operator only operates or changes the electricity market information system after it is completely appraised and approved by the Electricity Regulatory Authority.

5. The System and market operator must equip backup devices for the market information system in order to collect, transmit, and disclose information when the primary the electricity market information system malfunctions or fails to operate.

Section 2. MANAGING AND DISCLOSING ELECTRICITY MARKET INFORMATION

Article 90. Providing and disclosing electricity market information

1. Power generating units, the Single Buyer, transmission network operators, and MDMSP must provide the System and market operator with the information and data serving the making of operation plans, mobilization schedules, and payment calculation as prescribed in this Circular via the website of the electricity market information system.

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3. The range of accessing information is provided in accordance with the functions of the units as prescribed in the Process of operating the electricity market information system and information disclosure.

4. The System and market operator must public announce the following information on public websites:

a) Information about participants in the electricity market;

b) Data about the system load;

c) The market price statistics;

d) Other information prescribed in the Process of operating the electricity market information system and information disclosure.

Article 91. Responsibility to ensure the accuracy of electricity market information

1. Participants in the market must ensure the accuracy and sufficiency of electricity market information.

2. If the provided information is not accurate and complete, the participants in the market must rectify and provide the accurate one to relevant units.

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1. The System and market operator must not reveal the information provided by participants in the electricity market, including:

a) Information about PPAs;

b) The quotations from power generating units before the end of the trading day;

c) Other information ultra vires.

2. Participants in the electricity market must not reveal the information apart from one authorized to provide and announce.

Article 93. Exemption from information security

1. Providing information at the request of the Electricity Regulatory Authority or competent agencies as prescribed by law.

2. The information summarized, analyzed from the information announced on the electricity market at variance with Article 92 of this Circular, not being provided by participants in the electricity market.

Article 94. Storing electricity market information

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Section 3. ELECTRICITY MARKET OPERATION REPORTS

Article 95. Disclosing information about electricity market operation

The System and market operator must periodically make and disclose the information about the electricity market operation prescribed in the Process of operating the electricity market information system. In particular:

1. Before 15:00 every day, make and announce the report on the electricity market operation of the previous day.

2. Before Tuesday every week, make and announce the report on the electricity market operation of the previous week.

3. Before 10^th every month, make and announce the report on the electricity market operation of the previous month.

4. Before January 31^st every year, make and announce the report on the electricity market operation of the previous year.

Article 96. Electricity market operation reporting regime

1. Before 10^th every month, the System and market operator must send the report on the electricity market and electricity system operation of the previous month to the Electricity Regulatory Authority under the form provided by the Electricity Regulatory Authority.

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3. Within 24 hours as from stopping intervening in the electricity market, the System and market operator must report the electricity market intervention to the Electricity Regulatory Authority.

4. The System and market operator must make and send irregular reports on the operation of the electricity system and the electricity market at the request from the Electricity Regulatory Authority..

Article 97. Audit of the electricity market data and adherence

1. Periodic audit

Before January 31st every year, the System and market operator must organize and complete the audit of the electricity market data and adherence of the previous year. The annual audit includes:

a) Auditing the data and calculations of the System and market operator in the electricity market, including:

- The data serving the electricity market calculation;

- The calculation steps;

- The calculation results.

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2. Irregular audit

The Electricity Regulatory Authority is entitled to request the System and market operator to organize irregular audit in the following cases:

a) Detecting unusual signs in electricity market operation;

b) At the request of participants in the electricity market. In particular:

- The participant in the electricity market shall send a written request to the Electricity Regulatory Authority, specifying the contents and reasons for audit;

- Within 30 days as from receiving the written request, the Electricity Regulatory Authority must consider and make decisions on approving or disapproving the request for audit, specifying the contents and range of audit, or the explanation for the disapproval.

3. The System and market operator must appoint a competent independent audit unit to audit the electricity market and obtain the approval from the Electricity Regulatory Authority.

4. Participants in the electricity market must be cooperative during the electricity market audit.

5. The expense on audit:

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b) Is paid by the unit that request the audit in the case prescribed in Point b Clause 2 this Article.

6. Within 10 days after the audit, the System and market operator must send reports to the Electricity Regulatory Authority and relevant units.

Chapter IX

SETTLING DISPUTES AND HANDLING VIOLATIONS

Section 1. SETTLING DISPUTES

Article 98. Order for settling disputes in the electricity market

1. The disputes arising in the electricity market shall be settle in accordance with the Regulation on the procedures for settling disputes in the electricity market promulgated by the Ministry of Industry and Trade.

2. Before settling disputes, the parties must negotiate to seek reconciliation within 60 days in one of the following forms;

a) Voluntary reconciliation;

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Article 99. Responsibility of the parties during the conciliation

1. Reaching agreements on the form of conciliation, the time and location of negotiation.

2. Providing sufficient and accurate information and documents related to the dispute.

3. Giving legal proof to protect the lawful rights and interests.

4. Participating in the negotiation in an amicable and cooperative manner.

5. During the conciliation, if the dispute denotes violations of electricity market regulations, the party that detects must notify the other party to stop conciliating and send reports to the Electricity Regulatory Authority. 

Article 100. Notification of disputes and preparation of negotiation

1. When disputes arise, the complainer must send written notification to the complained of the dispute, and the request for dispute settlement, and send 1 copy to the Electricity Regulatory Authority as a report.

2. Within 15 days as from receiving the notification, the parties must reach an agreement on the form of conciliation, the dispute to be settle, the time and place of negotiation. For conciliation via an intermediary, the parties must reach an agreement on the selection of the intermediary. The parties may change the intermediary before the anticipated time of conciliation.

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1. Voluntary reconciliation

The parties must discuss and reach an agreement on the dispute settlement.

2. Conciliation via an intermediary

a) The parties must select an intermediary and make an agreement on the responsibility of the intermediary;

b) The parties must provide the contents of the dispute, the information and documents related to the dispute, and the requirements of both parties to the intermediary.

c) The parties may or may not concur with the solution given by the intermediary; and may request the intermediary to amend and supplement such solution, or make an agreement on new solutions.

Article 102. Conciliation records

1. After the conciliation or the conciliation period expires, the disputing parties must make the conciliation record, including:

a) The time and place of conciliation;

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c) Summary of the dispute;

d) Requirements of the parties;

dd) The agreed contents;

e) The disagreed contents and explanation for disagreement.

2. Within 05 days as from making the conciliation record, the parties must send the Electricity Regulatory Authority 01 copy as a report.

Article 103. Settling disputes at the Electricity Regulatory Authority

1. The parties may present the case to the Electricity Regulatory Authority for settling in the following cases:

a) The conciliation fails after the conciliation period prescribed in Clause 2 Article 98 of this Circular, or one party does not participate in the conciliation.

b) One party fails to implement the agreements in the conciliation record.

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Section 2. HANDLING VIOLATIONS

Article 104. Detecting and reporting violations

1. The detected acts of violations in the electricity market must be reported to the Electricity Regulatory Authority in writing.

2. The violation report includes:

a) Name and address of the unit that reports;

b) Name and address of the unit that commits the violations;

c) The violations;

d) The day and time of committing violations;

dd) The reason for violation detection.

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1. The Electricity Regulatory Authority must verify the violation within 05 days as from being reported.

2. While verifying the violation, the Electricity Regulatory Authority is entitled to:

a) Request the reported unit and reporting unit to provide necessary information and documents serving the verification;

b) Request the reported unit to explain;

c) Request examination and obtain opinions from experts or relevant agencies;

d) Summon the reported unit and the unit affected by the violation to obtain opinions about the settlement and remedy of the violation.

3. During the verification, the Electricity Regulatory Authority must secure the information and documents in accordance with the provisions on information security prescribed in this Circular.

Article 106. Making violation records. 

1. Within 30 days as from the verification, the Electricity Regulatory Authority must finish, verify, and make records on the violations of provisions on electricity market operation. The complicated cases that need more time to verify, the verification period may be extended but must not exceed 60 days as from the commencement of the verification.

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3. If the verification shows that the reported unit does not commit violations of the provisions on electricity market operation, the Electricity Regulatory Authority shall stop the inspection and notify the reporting organization or individual.

Article 107. Forms of handling violations

1. The violating unit must incur one of the penalties for each violation in accordance with the provisions on handling violations of electricity.

2. For power plant committing violations prescribed in Clause 1 Article 8 of this Circular, apart from the penalties prescribed in Clause 1 this Article, they also have their participation in the electricity market suspended. The suspension period depends on the nature and extent of the violations, but must not exceed 6 months.

Article 108. Order and procedures for suspending the electricity market participation

1. For power plants committing violations prescribed in Clause 1 Article 8 of this Circular, within 05 days as from making the violation record, the Electricity Regulatory Authority shall consider and make send the decision on suspending the participation in the electricity market of the power plant that commits violations to the violating power plant and the System and market operator.

2. Within 01 day as from receiving the decision on suspending the participation in the electricity market, the System and market operator must announce the suspension.

3. If the power plant fails to rectify the violation when the period in Clause 2 Article 107 of this Circular expires, the Electricity Regulatory Authority is entitled to suspend the participation in the electricity market. The extension must not exceed 6 months as from the suspension expires.

Chapter X

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Article 109. Implementation organization

1. The Electricity Regulatory Authority must disseminate, guide, inspect, and supervise the implementation of this Circular.

2. Vietnam Electricity must guide the System and market operator to:

a) Establish and send the technical process to The Electricity Regulatory Authority for promulgation within 06 months as from this Circular takes effect, including:

- The process of making year-ahead, month-ahead, and week-ahead schedules;

- The process of choosing best new plant and calculating CAN;

- The process of electricity market simulation;

- The process of water value calculation;

- The process of classifying stations and calculating the ceiling price of the quotation of thermoelectric plants;

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- The process of operating the market information system and information disclosure.  

b) Invest in, construct, install, and upgrade the electricity market information system and the software serving the electricity market appropriate for the requirements prescribed in this Circular.

3. The participants in the electricity market must complete the information devices appropriate for the electricity market information system prescribed in this Circular.

4. The power generating units participating in the electricity market must Power purchase agreement (PPA) under the form promulgated by the Ministry of Industry and Trade applicable to competitive generation market

5. Relevant units must report the difficulties arising during the course of implementation to the Electricity Regulatory Authority for considering and requesting the Ministry of Industry and Trade to amend and supplement this Circular.

Article 110. Effects

1. This Circular takes effect on June 25, 2010.

2. The director of The Electricity Regulatory Authority, The Chief of the Ministry Office, the Chief Ministerial Inspector, Directors of relevant Departments affiliated to Ministries, relevant units, and electricity market members are responsible for implementing this Circular./.

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FOR THE MINISTER
DEPUTY MINISTER




Do Huu Hao