THE MINISTRY OF INDUSTRY -------	SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom Happiness ---------
No.: 32/2006/QD-BCN	Hanoi, September 06, 2006

 

DECISION

ON ISSUANCE OF THE REGULATIONS ON CONDITIONS, ORDER AND PROCEDURES FOR GRANTING, AMENDING, SUPPLEMENTING, WITHDRAWAL AND MANAGEMENT USAGE OF ELECTRICITY OPERATION LICENSE

THE MINISTER OF INDUSTRY

Pursuant to Decree No. 55/2003/ND-CP on May 28, 2003 by the Government regulating functions, tasks, powers and organizational structure of the Ministry of Industry;
Pursuant to the Electricity Law of December 3, 2004;
Pursuant to Decree No. 105/2005/ND-CP of August 17, 2005 by the Government detailing and guiding the implementation of some articles of the Electricity Law;
Pursuant to Decision No. 258/2005/QD-TTg of October 19, 2005 by the Prime Minister on establishing and regulating functions, tasks, powers and organizational structure of the Department of Electricity Regulation under Ministry of Industry;
At the request of the Director of Department of Electricity Regulation,

DECIDES:

Article 1. To issue together with this Decision the Regulation on conditions, order and procedures for granting, amending, supplementing, withdrawal and management usage of the electricity activity license.

Article 2. This Decision takes effect 15 days from the date of its publication in the official gazette and replaces the Decision No. 27/2002/QD-BCN of June 18, 2002 by the Minister of Industry on promulgating regulations on the conditions, order and procedures for granting the electricity activity permit.

Article 3. Chief of Office of the Ministry, Chief Inspector of the Ministry, the Director Generals under the Ministry, the People's Committees of provinces and centrally-affiliated cities, and other organizations or individuals engaged in electricity activities shall take responsibility for implementing this Decision./.

THE MINISTER Hoang Trung Hai

 

PROVISIONS

CONDITIONS, ORDERS AND PROCEDURES FOR GRANT, AMENDMENT, SUPPLEMENTATION, WITHDRAWAL AND MANAGEMENT OF THE USE OF THE ELECTRICITY ACTIVITY PERMIT
(Issued together with the Decision No.: 32/2006/QD-BCN of September 6, 2006 of the Minister of Industry)

Chapter 1:

GENERAL PROVISIONS

Article 1. Scope and subjects of application

1. This Regulation prescribes the conditions, orders and procedures for issuance, amendment, supplementation, withdrawal and management of the use of the electricity activity permit.

2. This regulation applies to the following electricity activities:

a) Consultancy on electricity planning;

b) Consultancy on investment in electrical construction field;

c) Consultancy on supervision of construction of electricity works;

d) Electricity generation;

e) Electricity transmission;

e) Electricity distribution;

g) Electricity wholesale;

h) Electricity retail;

i) Electricity export and import.

Article 2. Cases of exemption of the permit for electricity activities

The following activities are exempt from the permit for electricity activities:

1. Consultancy on appraisal and criticism of investment projects for electricity construction;

2. Generating electricity for self-use without selling the electricity to other organizations or individuals;

3. The electricity is generated with installation capacity below 50 kW for sale to other organizations or individuals;

4. Electricity business in rural, mountainous and island areas to buy electricity from the electricity network distributed with a total capacity of transformers being less than 50 kVA to sell electricity directly to customers who use electricity in rural, mountainous, island area;

5. Dispatch of the national electricity system and operating the electricity market transactions;

6. Construction and installation of electricity works.

Article 3. Principles for granting the electricity activity permit

1. Each organization or individual is granted a permit to carry one or more of the electricity activity sectors.

2. Organizations or individuals granted the electricity activity permit must maintain the registered conditions for licensed areas during operations.

3. An electricity activity permit is granted with different time limits for the electricity activity sectors based on the scope of operation, types of electricity, registration duration, competence and professional qualifications of the electricity operating unit.

Article 4. Content for the permit for electricity activities

1. Content for the permit for electricity activities specified in Article 35 of the Electricity Law and Article 22 of the Decree No. 105/2005/ND-CP of August 17, 2005 by the Government detailing and guiding the implementation of some articles of the Electricity Law, shall be printed on the permit for electricity activities.

2. The appendices attached to the permit over conditions, detailed scope, rights and obligations of organizations or individuals that was licensed or managed the use of the permit.

Article 5. Scope of use of electricity activity permit

1. The permit for electricity activities in the fields of electricity planning advice, consultancy on investment in electrical construction, consultancy and supervision of the construction of electricity works with usage value throughout the country.

2. The permit for electricity activities in the field of electricity generation is granted to units generating electricity that have electricity generating project invested in line with the approved electricity planning.

3. The permit for electricity activities in the field of electricity transmission is granted to electricity units operating the electricity transmission with scope of management and operation of specific transmitted electricity network.

4. The permit for electricity activities in the field of electrical distribution, import and export of electricity is granted to the electricity units that operate electricity distribution, import and export of electricity with specific geographic area of the electricity.

5. The permit for electricity activities in the field of electricity wholesale and electricity retail is granted to each unit of electricity wholesale and electricity retail in a specific geographic area.

Article 6. Fees and charges related to electricity activity permit

1. Organizations or individuals licensed to carry out electricity activities shall pay licensing fees and other related charges in accordance with the laws.

2. Licensing agencies are allowed to use fees from granting the permit and other related charges for the evaluation, management of use of the permit, inspection and handling violations of the permit. The collection/payment and use of the fees from granting the electricity activity permit and other related fees as prescribed by law.

Chapter 2:

CONDITIONS FOR GRANTING ELECTRICITY ACTIVITY PERMIT

Article 7. General conditions

Organizations or individuals requesting for the permit for electricity activities must meet the following general conditions:

1. As organizations or individuals with business registration, established and operating under the provisions of the laws, including:

a) As an enterprise of all economic sectors is established and operating under the provisions of the laws;

b) As a cooperative is established and operating under the Cooperative Law;

c) As a business household or individual with business registration as prescribed by law;

d) Other institutions which are established under the provisions of the laws.

2. Having a valid dossier for the granting of, amendment or supplementation to the electricity activity permit.

3. Having the financial capacity to carry out the electricity activity sectors that was proposed the permit.

Article 8. Electricity planning consultancy

Electricity planning consultancy includes: the planning for national electric power development, the planning for electricity development of provinces and centrally-affiliated cities and the planning for electricity development at district, town and provincial cities (hereinafter referred to as the planning for local electricity development) hydro-electric terrace planning of rivers.

The organization registering for electricity planning consultancy, in addition to the conditions stipulated in Article 7 of this Regulation, shall satisfy the following conditions:

1. For planning consultancy on national electricity development:

a) Being specialized consultancy organization with professional capabilities of planning forms of primary energy, of demand forecasting, of research and analysis of consumption market, calculating and analyzing optimal planning of electricity system, technical analysis of electricity system operation, economic finance for the project;

b) Having consultants with experience on types of power plants, electrical systems, economic - finance and environment. Consultants shall lead the main professional fields of consultancy organizations must have a university degree or higher, have at least five year of experience working in the field of planning consultancy and has chaired or participated as a main partner in making at least one the planning for development of national electricity.

Requirements on the number of principal consultants in the areas of expertise as follows:

- Experts who predict the electricity load demand: At least 05 experts graduating from university specialized in electricity or energy economic;

- Experts who calculate and analyze the optimal electricity network and resource development: At least 08 experts who have graduated from university specialized in electricity or energy economic;

- Experts in economics- finance and investment: At least 05 experts have bachelor degree in financial economics or energy economics;

- Expert in technology and environment: At least 02 experts graduating from universities specialized in thermal power, hydropower and mechanical.

c) Having equipment, technical means, applied software necessary to meet the requirements of the planning for the development of national electricity.

2. For consultancy on planning local electricity development:

a) Being a specialized consultancy organizations, having professional capabilities of electricity network development planning, researching and forecasting of load, calculating and analyzing the optimal electricity transmission and distribution, analysis of economic - finance of the project;

b) Having consultants with experience in load prediction, structure and operation mode of electricity network, analysis of economic - finance of the project. Consultants taking charge of major professional domains must have university diploma or higher, have experience at least five years working in the field of planning consultancy and has chaired or participated as a main partner in at least one planning for development of local electricity;

c) Requirements for the number of main consultants for the field of electricity development planning of provinces and centrally-affiliated cities as follows:

- Experts who predict the electricity load demand: At least 03 experts graduating from university specialized in electricity or energy economic;

- Experts who calculate and analyze the optimal electricity system and technology: At least 05 experts graduating from university specialized in electricity or energy economic;

- Experts in economic - finance and investment: At least 02 experts with bachelor degrees in financial economics or energy economics.

d) Requirement for the number of main consultants for the field of electricity development planning of districts, towns and provincial cities as follows:

- Experts who predict the electricity load demand: At least 01 expert graduating from university specialized in electricity or energy economic;

- Experts who calculate and analyze the optimal electricity network: At least 03 experts graduating from university specialized in electricity or energy economic;

- Experts in economic - finance and investment: At least 01 expert having bachelor degrees in financial economic or energy economic;

e) Having equipment, technical means, applied software necessary to meet the requirements of the planning for the development of local electricity.

3. For advice hydro-electric terrace planning of rivers:

a) Being a specialized consultancy organization, having expertise in hydroelectricity, hydrology, hydrodynamics, works geology, hydro-electric construction and other fields related to the hydropower terrace planning;

b) Having consultants with experience in the fields of hydrology, technology hydraulic, engineering geology, hydropower, hydropower construction. Consultants taking charge of the main professional fields of consultancy organizations must have a university degree or higher and work experience for at least five years in the planning consultancy and has lead or participated as a main partner in establishing at one hydro-electric terrace planning.

Specific requirement for the number of main consultants is divided by the professional field as follows:

- Expert in hydrodynamics, hydrology: At least 02 experts;

- Experts in energy economics: At least 02 experts;

- Experts in hydraulic power, hydroelectricity: At least 03 experts;

- Experts in geology and geotechnical: At least 02 experts;

- Experts in structure: At least 01 expert;

- Experts in organizing the construction: At least 01 expert.

c) Having equipment, technical means, applied software necessary for setting up hydro-electric terrace planning.

Article 9. Consultancy on investment in electrical construction

Organizations registered for consultancy on investment in electricity construction, depending on their professional abilities and qualifications, can register to operate in one or more expertise scopes (making investment project, basic design, technical design, construction engineering design, bidding), for one or more types of electricity works (hydropower plants, thermal power plants, transmission lines and transformer stations with different voltage levels), apart from conditions stipulated in Article 7 of this Regulation, must satisfy the following conditions:

1. For hydropower works:

a) Being a specialized consultancy organization, having professional capabilities in technology and engineering of hydro power plants, technical analysis, economic - finance for the project, environmental impact assessment;

b) Having consultants with experience in the field of hydroelectricity equipment, electrical equipment, water treatment, automatic control, hydroelectricity, hydrology, hydrodynamics, engineering geology, hydropower construction and other sectors related to the types of hydropower plants. Experts taking charge of major professional domains must have university diploma or higher, have working experience at least five years in the field of consultancy and have experience in leading or participated as a major partner in designing at least one hydropower plant project in the field of consultancy;

c) Having equipment, technical means, applied software necessary for consultancy on investment in the construction of hydropower plant works;

d) The capacity of the consultancy organizations for investment in construction hydropower plants are classified into five categories according the scale of installation capacity of hydropower plants as follows:

- Grade 1: Without limiting the scale of the installation capacity;

- Grade 2: Scale of installation capacity to 300 MW;

- Grade 3: Scale of installation capacity to 100MW;

- Grade 4: Scale of installation capacity to 30MW;

- Grade 5: Scale of installation capacity below 10MW.

e) Requirements for the competence of the consultancy organization operating under the class of hydropower works as follows:

- Grade 1: At least 25 major consultants in the specialties: hydraulic power, technology hydraulic, hydrodynamics, hydrology, energy economic, geology, geotechnical, structure, and organization of construction of hydropower plant;

- Grade 2: At least 20 major consultants in the specialties: hydroelectricity, technology hydraulic, hydrodynamics, hydrology, energy economic, geology, geotechnical, structure, and organization of construction of hydropower plant;

- Grade 3: At least 15 major consultants in the specialties: hydraulic power, technology hydraulic, hydrodynamics, hydrology, energy economic, geology, geotechnical, structure, and organization of construction of hydropower plant;

- Grade 4: At least 10 major consultants in the specialties: hydraulic power, technology hydraulic, hydrodynamics, hydrology, energy economic, geology, geotechnical, structure, and organization of construction of hydropower plant;

- Grade 5: At least 05 major consultants in the specialties: hydraulic power, technology hydraulic, hydrodynamics, hydrology, energy economic, geology, geotechnical, structure, and organization of construction of hydropower plant.

2. For thermal electricity plant works:

a) Being a specialized consultancy organization, having professional capabilities in technology and engineering of thermal electricity power plants, technical analysis, economic - finance for the project, environmental impact assessment

b) Having consultants with experience in the fields of: boilers, turbines, generators, electrical equipment, automatic control, engineering geology, construction of thermal power and fields related to the kinds of thermal power plants. Experts taking charge of major professional domains must have university diploma or higher, have working experience at least five years in the field of consultancy and have experience in leading or participated as a major partner in designing at least one thermal electricity plant project in the field of consultancy;

c) Having equipment, technical means, applied software necessary for consultancy on investment in the construction of thermal power plant works;

d) The capacity of the consultancy organizations on investment of construction of thermal power plants is classified into three categories according the scale of the installation capacity of thermal power plants as follows:

- Grade 1: Without limiting the scale of the installation capacity;

- Grade 2: Scale of installation capacity to 100MW;

- Grade 3: Scale of installation capacity below 50MW.

e) Requirements for the competence of the consultancy organization operating under the categories of thermal power works as follows:

- Grade 1: At least 20 major consultants in the specialties: thermal electricity, geology, geotechnical, chemistry, structure, and organization of construction of thermal power plant works;

- Grade 2: At least 15 major consultants in the specialties: thermal electricity, geology, geotechnical, chemistry, structure, and organization of construction of thermal power plant works;

- Grade 3: At least 10 major consultants in the specialties: thermal electricity, geology, geotechnical, chemistry, structure, and organization of construction of thermal power plant works.

3. For the transmission line and transformer station

a) Being a specialized consultancy organizations, having professional capabilities in engineering design, equipment of transmission lines and transformer stations, relay protection, automatic control, environmental impact assessment, analysis of economic- finance of projects for lines and transformer stations with appropriate voltage levels;

b) Having consultants with experience in the fields of physical-mechanical power lines, electrical equipment, automatic control, relay protection, organization of construction, project finance. Experts taking charge of major professional domains must have university diploma or higher, have working experience at least five years in the field of consultancy and have participated in performing at least one project for lines and transformer stations with a similar voltage level;

c) Having equipment, technical means, applying software necessary for consultancy on investment in the construction of lines and transformer stations works;

d) The capacity of consultancy construction of power lines and transformer stations are classified into four grade scale voltage levels as follows:

The capacity of the consultancy organizations on investment of construction of lines and transformer stations is classified into 4 categories according the scale of voltage levels as follows:

- Grade 1: Without limiting the scale of voltage level;

- Grade 2: Scale of the voltage level to 220 kV;

- Grade 3: Scale of the voltage to 110 kV;

- Grade 4: Scale of the voltage to 35kV.

e) Requirements for the competence of the consultancy organization operating under the categories of transmission line and substation as follows:

Requirements for the competence of the consultancy organization operating under the categories of lines and transformer station works as follows:

- Grade 1: At least 20 major consultants in the specialties: electricity systems, technical electricity, electrical equipment, automation, energy economics, geology, construction, organization of construction of lines and transformer station works;

- Grade 2: At least 15 major consultants in the specialties: electricity systems, technical electricity, electrical equipment, automation, energy economics, geology, construction, organization of construction of lines and transformer station works;

- Grade 3: At least 10 major consultants in the specialties: electricity systems, technical electricity, electrical equipment, automation, energy economics, geology, construction, organization of construction of lines and transformer station works;

- Grade 4: At least 05 major consultants in the specialties: electricity systems, technical electricity, electrical equipment, automation, energy economics, geology, construction, organization of construction of lines and transformer station works;

Article 10. Consultancy on construction supervision of electricity works

Organization registering for consultancy on construction supervision of electricity works, depending on their professional abilities and qualifications, can register for operating for one or more types of electricity works (hydropower plants, thermal power plants, lines and transformer station with the different scale of voltage levels), apart from the conditions prescribed in Article 7 of this Regulation must also meet the following conditions:

1. For hydropower plant works:

a) Being a specialized consultancy organization, having professional capabilities in technology and engineering of hydro power plants;

b) Having consultants with experience in the fields of: technology hydraulic equipment, electrical equipment, water treatment, automatic control, technology hydraulic, hydrology, hydrodynamics, engineering geology, hydropower construction and fields related to hydro power plants. The leading consultants must have university diploma or higher, have experience at least five years working in the field of consultancy and have experience on leading construction supervision for at least one hydroelectric plant work;

c) Having equipment, technical means necessary for supervision of construction of hydropower plant works;

d) The capacities of consultancy organization on construction supervision of hydropower plants is classified into four categories according the scale of installation capacity of hydropower plants specified at Point d, Clause 1 of Article 9 of this Regulation;

e) Requirements for the capacity of the consultancy organization on supervision of construction according to the categories of hydroelectric power work as follows:

- Grade 1: At least 20 major consultants having certificate for supervision of construction of works in all hydropower specialties;

- Grade 2: At least 17 major consultants having certificate for supervision of construction of works in all hydropower specialties;

- Grade 3: At least 12 major consultants having certificate for supervision of construction of works in all hydropower specialties;

- Grade 4: At least 08 major consultants having certificate for supervision of construction of works in all hydropower specialties;

- Grade 5: At least 05 major consultants having certificate for supervision of construction of works in all hydropower specialties.

 2. For thermal electricity plant works:

a) Being a specialized consultancy organization, having professional capabilities in technology and engineering of thermal power plants;

b) Having consultants with experience in the fields of: boilers, turbines, generators, electrical equipment, automatic control, engineering geology, construction of thermal power and fields related to the kinds of thermal power plants. The leading consultants must have university diploma or higher, have experience at least five years working in the field of consultancy and have experience on leading construction supervision for at least one thermal power plant work;

c) Having equipment, technical means, applied software necessary for consultancy on investment in the construction of thermal electricity works;

d) The capacities of consultancy organization on construction supervision of thermal power plants are classified into three categories according the scale of installation capacity of thermal power plants specified at Point d, Clause 2 of Article 9 of this Regulation;

e) Requirements for the capacity of the consultancy organization operating under the categories of the thermal power works as follows:

- Grade 1: At least 20 major consultants having certificate for supervision of construction of works in all thermal power specialties;

- Grade 2: At least 15 major consultants having certificate for supervision of construction of works in all thermal power specialties;

- Grade 3: At least 10 major consultants having certificate for supervision of construction of works in all thermal power specialties.

3. For the lines and transformer stations;

a) Being a specialized consultancy organization, having professional capabilities in technology and engineering of lines and transformer stations;

b) Having consultants with experience in the fields of: physical-mechanical powers of lines, electrical equipment, automatic control, relay protection, organization of construction. The leading consultants must have university diploma or higher, have experience at least five years working in the field of consultancy and have experience on leading construction supervision for at least one line and transformer station work;

c) Having equipment, technical means, applied software necessary for consultancy on investment in the construction of line and transformer station works;

 d) The capacities of consultancy organization on construction supervision of lines and transformer stations work are classified into four grades according to scale of voltage levels specified at Point d, Clause 3, Article 9 of this Regulation;

e) Requirements for the competence of the consultancy organization operating under the categories of line and transformer station work as follows:

- Grade 1: At least 20 major consultants having certificate for supervision of construction of line and transformer station works;

- Grade 2: At least 15 major consultants having certificate for supervision of construction of line and transformer station works;

- Grade 3: At least 10 major consultants having certificate for supervision of construction of line and transformer station works;

- Grade 4: At least 05 major consultants having certificate for supervision of construction of line and transformer station works.

Article 11. Electricity Generation

Organization register for electricity generation, apart from the conditions prescribed in Article 7 of this Regulation must also meet the following conditions:

1. Having technological equipment, means, workshops, architectural works in line with the approved technical design, built, installed and tested in line with current technical regulations and standards.

2. People who directly manage the technique and operation must have a relevant bachelor degree in electricity or technique and have worked in the field of electricity production at least five years. Workers who directly operate must be trained and tested for operating procedures and safety procedures.

3. The equipments of electricity plant that require strict labor safety must be tested and granted a certificate of labor safety by competent agencies.

4. The report on environmental impact assessment of electricity generation projects that have been approved by a competent state agency.

5. System of fire prevention and fighting of electricity plant must be tested and accepted by a competent agency as provided by law.

Article 12. Electricity Transmission

Organization registering for electricity transmission, apart from the conditions prescribed in Article 7 of this Regulation must also meet the following conditions:

1. Having technological equipment, means, workshops, architectural works in line with the approved technical design, built, installed, inspected and accepted in line with technical standards and regulations, satisfying requirements for maintenance, repair and test of electrical transmission lines, transformer stations, cutting stations, compensator stations in the electricity transmission system.

2. People who directly manage the technique must have a relevant bachelor degree in electricity and have worked in the field of electricity transmission at least five years. Workers who directly operate must be trained and tested for operating procedures and safety regulation

Article 13. Distribution of Electricity

Organizations or individuals registering for operating distribution of electricity, apart from the conditions specified in Article 7 of this Regulation must also meet the following conditions:

1. Having technological equipment, means, workshops and architectural works that are constructed, installed, inspected and accepted in line with technical standards in accordance with the approved technical designs and current norms, satisfying the requirements of the operation, maintenance and repair of power distribution networks, transformer stations and accompanied synchronized equipments.

2. People who directly manage the technique and operation must have bachelor degrees in electricity and have worked in the field of electricity trading and distribution at least five years. Workers who directly operate must be trained and tested for operating procedures and safety procedures according to ranks and grades that were prescribed.

Organizations or individuals engaged in electricity distribution in rural areas must meet the following conditions: People who directly operate and repair electricity must be trained in electricity specialty, hold a certificate issued by a vocational training institutions, have professional competence skills, be trained and tested for electrical safety and be granted a certificate of safety to work on rural electricity network by the Provincial Department of Industry.

Article 14. Electricity Export and Import

Organizations or individuals registering for electricity export and import activities, apart from the conditions stipulated in Article 7 of this Regulation must also meet the following conditions:

1. Having technological equipment, means, workshops, architectural works that are constructed, installed, inspected and accepted in line with technical standards in accordance with the approved technical designs and current norms satisfying the requirements of the operation, maintenance and repair of electricity network, transformer stations and associated synchronized equipments.

2. People who directly manage the technique and operation must have a university degree in electricity and has worked in the field of electricity distribution and sales for at least five years. Workers who directly operate must be professionally trained and tested for operating procedures and safety procedures according to ranks and grades that were prescribed.

Article 15. Electricity wholesale and electricity retail

Organizations or individuals registering for operating electricity wholesale and electricity retail, apart from the conditions prescribed in Article 7 of this Regulation must also meet the following conditions:

1. People who directly manage the technique and the production must have college degree or higher in electricity and have worked in the field of electricity distribution and trading at least five years.

2. Workers who directly perform operation must be professionally trained and tested for operation procedures and safety regulations according to prescribed grades and ranks.

Chapter 3:

DOSSIER FOR GRANT, AMENDMENTS AND SUPPLEMENTATION TO THE ELECTRICITY OPERATION PERMIT

Article 16. The dossier for the grant, amendment, supplement to the permit for specialized electricity consultancy

For organization which perform consultancy on electricity planning, consultancy on investment in electricity construction and consultancy on construction supervision of electricity works, the dossier include:

1. Written request for grant, amendment, supplementation to the electricity activity permit (in Appendix 1 attached to this Decision).

2. A valid copy of the document certifying the legal status of organizations or individuals together with the organizational chart, a list of the affiliated units and branches.

3. An extracted list of managerial staff, consultants leading the main fields of consultancy (Appendix 3 attached to this Decision), together with valid copies of diploma and employment contract that have been signed with consultancy organizations.

4. A list of similar projects that the consultancy organization has done or major specialists of the consultancy organizations have lead or participated in most recent five years.

5. A list of equipment, means, applied software for consultancy licensed by the requesting organization.

6. Financial statements of most recent three years (for organizations which still operating).

Article 17. Dossier for the grant, amendment, supplement to the permit for electricity generation

The dossier includes:

1. Written request for grant, amendment, supplementation to the electricity activity permit (as in Appendix 1 attached to this Decision).

2. A valid copy of the document certifying the legal status of organizations or individuals together with the organizational chart, list the affiliated units and branches.

3. Technical documents that define the installation capacity of each generation set and a list of main electricity work items of the project for electricity generation.

4. Valid copy of the decision approving the technical design of electricity generation projects approved by the competent authorities.

5. The extracted list of managerial staff such as directors, deputy directors of enterprises, the people who directly manage the technique, major experts for the management and operation of power plants accompanied by a valid copy of diploma or graduation certificate.

6. Documentation of fuel or source of water to use.

7. Technical documentation on connection and operation mode of the power plant in electrical systems.

8. Documentation of training and employment.

9. Valid copy of the written confirmation of eligibility for the fire protection and fighting granted by competent agency.

10. A copy of report on the environmental impact assessment of the project for investment in electricity generation approved by competent state agencies; a copy of the written approval of environmental impact assessment report or environmental standard certification by the competent state agencies.

11. A copy of the signed long-term power purchase contract (PPA).

12. A copy of the partially acceptance minute of main items of the electricity work of the project for electricity generation.

13. A valid copy of the written confirmation about ensuring conditions for operation for devices with strict requirements on labor safety.

14. A copy of financial statements in the most recent year prior to filing the application for a permit (for organizations which are still operating).

15. For organizations requesting for the permit for electricity generation for new electricity generation projects, within thirty (30) days from the date of commercial operation of power plants, it is necessary to add to the dossier a copy of the acceptance minutes for the entire power plant work.

Article 18. Dossier for the grant, amendment, supplementation to the permit for electricity transmission, distribution and import/export

The dossier includes:

1. Written request for the permit for electricity activities (as in Appendix 1 attached to this Decision);

2. A valid copy of the document certifying the legal status of organizations or individuals together with the organizational chart, list the affiliated units and branches.

3. The extracted list of managerial staff such as directors, deputy directors of enterprises, the person who directly manage technique, major experts for the management and operation of electricity network for transmission and distribution together with a valid copy of diploma or certificate of graduation.

4. Documents on the capacity of electricity transmission, power distribution, voltage level and the area of operation.

5. Documentation of training and employment.

6. A list of main items of electricity work operated by the managing organization or the organization will receive in accordance with the decision of the competent authorities.

7. A valid copy of documents certifying the conformity to the conditions for equipments with strict requirements on labor safety.

8. A valid copy of the written confirmation of eligibility for the fire protection and fighting granted by competent authorities.

9. A copy of financial statements in the most recent year prior to filing the application for a permit (for organizations which are still operating)

10. A copy of the electricity export/import contracts approved by competent state agencies (for electricity export/import activities.)

Article 19. Dossier for the grant, amendment, supplementation to the permit for electricity wholesale and electricity retail

The dossier includes:

1. Written request for the permit for electricity activities (as in Appendix 1 attached to this Decision);

2. A valid copy of documents certifying the legal status of organizations or individuals together with the organizational chart, list the affiliated units and branches.

3. The extracted list of managerial staff such as directors, deputy directors of enterprises, the person who directly manage techniques together with a valid copy of diploma or certificate of graduation.

4. Voltage level and the area of operation.

5. Financial statements of the most recent year (for organizations which are still operating).

Chapter 4:

ORDER AND PROCEDURES FOR GRANTING, AMENDING AND SUPPLEMENTING THE PERMIT FOR ELECTRICITY ACTIVITIES

Article 20. The order and procedures for granting, amending and supplementing the electricity activity permit

1. Organizations or individuals propose granting, amending and supplementing the electricity activity permit shall submit to the competent agency three sets of dossiers as prescribed in Chapter III of this Regulation and shall take responsibility for the accuracy, authenticity of the dossier for granting the permit.

2. Within five working days after receipt of the dossier asking for granting, amending and supplementing the electricity activity permit, the licensing authority shall inform in writing to the electricity unit on the validity of dossier. Where the dossier is invalid, the licensing authority must state the reasons and request for an amendment or supplementation to figures, documents and relevant information to complete the dossier.

3. Within thirty working days after receiving fully valid dossiers, the licensing authority must conduct assessment of the dossier, inspection at the facility (if necessary) to grant, amend, supplement the permit, in case of refusal, must notify in writing stating the reasons therefore.
4. Where the competent authorities granting the permit for electricity activities require electricity units to supplement and amend the permit, within fifteen working days from the date of receipt of the request of the licensing authorities, electricity units must reply in writing.

5. The electricity activity permit shall be made in three originals, one to the organizations or individuals that are granted, two are kept at the licensing authorities.

Article 21. The duration of the electricity activity permit

1. The term of a permit to operate electricity generation is accord with the technology of each type of power plant and based on the request of organizations or individuals applying for the permit, but does not exceed 50 years.

2. The term of a permit to operate electricity transmission is based on the request of the organization applying the permit but not more than 30 years.

3. The term of a permit to operate the electricity distribution is based on the proposal by organizations or individuals applying for the permit, but does not exceed 20 years.

4. The term of a permit for electricity wholesale and retail is based on the request of organizations or individuals applying for the permit, but does not exceed 10 years.

5. The term of a permit for consultancy on electricity specialty is based on the request of the organization applying for the permit, but not more than 10 years.

6. The term of a permit for electricity import/export is based on the request of organizations or individuals applying for the permit, but does not exceed 15 years.

The duration of the permit for electricity activities in the fields of operation, scale of operation is specified in detail in Appendix 4 to this Decision.

Article 22. Renewal of the electricity activity permit

1. The electricity activity permit may be extended if it satisfies the specified conditions.

2. Six months before the electricity activity permit expired, electricity units must make a dossier as prescribed in Chapter III of this Regulation to request for the extension of the electricity activity permit.

3. The extended term of the electricity activity sectors should not exceed half of its activities term of field specified in the granted electricity activity permit.

Chapter 5:

COMPETENCE FOR GRANTING, AMENDMENTING, SUPPLEMENTING AND MANAGING THE USE OF ELECTRICITY ACTIVITY PERMITS

Article 23. Competent to grant the permit for electricity activities

Competence to grant the permit for electricity activities shall be as follows:

1. The Ministry of Industry grants the permit for electricity activities for the following fields:

a) Planning consultancy on national electricity development, development planning of local electricity and hydro-electric terrace planning of rivers;

b) Consultancy on investment in power plant construction, consultancy on investment in construction of lines and transformer stations;

c) Consultancy on supervision of the construction of power plant works, the lines and transformer station works;

d) Electricity generation for electricity units that have a power plant project with a scale of capacity of 3 MW or more;

e) Electricity transmission;

e) Electricity distribution;

g) Electricity export/import;

h) Electricity wholesale;

i) Electricity retail.

2. People's Committees of provinces and centrally-affiliated cities grant or authorize the Department of Industry to grant the permit for electricity activities in the fields of activity:

a) Consultancy on investment in construction of lines and transformer stations with a voltage level of 35kV or less, with the business registration at the localities;

b) Electricity generation for electricity units that have a power plant project with a scale of capacity of below 3 MW in localities;

c) Electricity distribution in rural areas;

d) Electricity retail in rural areas.

Article 24. Responsibility of the agencies granting the permit for electricity activities

1. Receiving, assessing and managing the dossier requesting for granting, amending and supplementing the electricity activity permit. Guiding organizations or individuals engaged in electricity activities to comply with the content, order and procedures for proposal for granting, amendment and supplementation to the permit for electricity activities in this Regulation.

2. Resolving complaints about the permit for electricity activities under its competence.

3. Inspecting and supervising the implementation of the permit for electricity activities under the conditions registered in the dossier for granting the permit for electricity activities.

4. Withdrawing the electricity activity permit from violating organizations or individuals.

5. Proposing competent agencies to handle the violating organization or individual in accordance with the laws.

Article 25. Responsibilities of organizations or individuals being granted the permit for electricity activities

1. Performing electricity activities in accordance with the provisions in the permit.

2. Requesting for extending or supplementing the electricity activity sectors when getting complete condition as prescribed.

3. Maintaining the condition for electricity activities that have been registered and have been granted in the permit during the operation.

4. Paying fully charges and fees relating to the permit for electricity activities in accordance with the laws.

5. Reporting to licensing agencies no later than 60 days prior to stopping the electricity activities.

6. Not modifying the content of the permit, or transferring or allowing other organizations or individuals to use the permit.

7. Subject to examination, inspection and observing the handling decision by the competent state agency over usage of the permit and registered operation conditions.

8. Requesting for amending and supplementing the electricity activity permit when changing the field and the content of electricity activities.

9. Reporting to the licensing agency on the situation of production or trading in the licensed field, the difficulties and proposals, before 15 December each year.

10. Sending copies of the granted permit for electricity activities to electricity buyer (for the permit for electricity generation) to provide a basis for the electricity buyer to implement the long-term contract.

Chapter 6:

INSPECTION AND HANDLING OF VIOLATIONS AND WITHDRAWAL OF THE PERMIT FOR ELECTRICITY ACTIVITY

Article 26. Inspection and handling of violations of the electricity activity permit

1. The Agencies that grant the permit for electricity activities shall be responsible for examining the implementation of the granted electricity activity permit. In case of detecting institutions and individuals that licensed with violations shall be handled according to competence or propose competent agencies for handling according to the laws.

2. Electricity Regulation Department is responsible for inspecting the implementation of this Regulation throughout the country, solving problems and recommending content to report to the Ministry of Industry for amendment and supplementation to this Regulation when necessary.

3. People's Committees of provinces and centrally-affiliated cities shall inspect the implementation of this Regulation within its administration; solve problems and Industry Ministry to propose amendments and supplements as needed.

ANNEX 4

TIME-LIMIT OF THE ELECTRICITY OPERATION LICENSE

No. Order	Field of electricity operation	Time-limit of license
1.	Consultancy on project:	10 years
2.	Consultancy on investment for electricity construction:
a)	Consultancy on investment for power plant construction	10 years
b)	Consultancy on investment for electricity lines and substation construction with the level of voltage:
	- Over 35kV	10 years
	- Below or 35kV	05 years
3.	Consultancy on supervisory for electricity works construction:
a)	Power plant	10 years
b)	Electricity lines and substation construction with the level of voltage:
	- Over 35kV	10 years
	- Below or 35kV	05 years
4.	Generator:
a)	The big power plants which mean special importance on economy, social, national defense, safety according to the list approved by the Prime Minister.	50 years
b)	The power plants without the list of big power plants which mean special importance on economy, social, national defense, safety, approved by the Prime Minister.	30 years
5.	Transmission:
a)	Transmission operation with the level of voltage 500kV	30 years
b)	Transmission operation with the level of voltage 220kV	20 years
c)	Transmission operation with the level of voltage 110kV	15 years
6.	Electricity Distribution:
a)	Distribution operation in area of many provinces/cities or one province/city.	20 years
b)	Rural Electricity Business operation (Cooperative on electricity distribution and business/ Individual has registered business).	10 years
7.	Electricity wholesale and retail:
a)	Electricity wholesale in area of many provinces/cities or one province/city.	10 years
b)	Electricity retail in area of province/city	10 years
8.	Electricity Import and Export:
a)	Electricity import and export with the level of voltage over 35kV	15 years
b)	Electricity import and export with the level of voltage below or 35kV	10 years