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THE MINISTRY OF INDUSTRY AND TRADE
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SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom – Happiness
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No. 01/VBHN-BCT

Hanoi, September 06, 2013

 

CIRCULAR

PROVIDING FOR METHOD OF ELABORATION, ORDERS OF AND PROCEDURES FOR FORMULATION, PROMULGATION AND MANAGEMENT OF THE POWER TRANSMISSION PRICES

Circular No. 14/2010/TT-BCT dated April 15, 2010, of the Minister of Industry and Trade, providing for methods of elaboration, orders of and procedures for formulation, promulgation and management of power transmission prices, taken effect on June 01, 2010, and amended and supplemented by:

Circular No. 03/2012/TT-BCT dated January 19, 2012, of the Minister of Industry and Trade, amending and supplementing a number of Articles of the Circular No. 14/2010/TT-BCT dated April 15, 2010, of the Minister of Industry and Trade, providing for methods of elaboration, orders of and procedures for formulation, promulgation and management of power transmission prices, taken effect on March 05, 2012.

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

Pursuant to the Electricity Law dated December 03, 2004;

Pursuant to the Government’s Decree No. 105/2005/ND-CP dated August 17, 2005, detailing and guiding implementation of a number of Articles of the Electricity Law;

Pursuant to the Decision No. 153/2008/QD-TTg dated November 28, 2008, of the Prime Minister  defining the functions, tasks, powers and organizational structure of the Electricity Regulation Department of the Ministry of Industry and Trade.

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Chapter I

GENERAL PROVISIONS

Article 1. Scope and subject of application

1. This Circular provides for method of elaboration, orders of and procedures for formulation, promulgation and management of the power transmission prices.

2. This Circular applies to the Vietnam Electricity Group, National Power Transmission Corporation, units operating the power system and national power market, company of power purchase and sale, and units liable for cost of power transmission. 

Article 2. Interpretation of terms

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

1. Financial statements mean the audited financial statements made by independent audit agencies.

2. Points of electricity transfer and receipt means the points of electricity transfer and receipt between company of power purchase and sale, and power company, including point of electricity transfer and receipt between power transmission net and power distribution net, and points of electricity transfer and receipt between power plant transmitting up 110kV net and power distribution net of power company.

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4. Units liable for cost of power transmission include electricity companies, clients buying electricity directly from the power transmission net.

5. Clients buying electricity directly mean big clients using electricity connected directly into the power transmission net.

6. The power transmission net means system of power transmission lines, transformer stations, and synchronous equipment for transmitting electricity from  the power plants to points of electricity receipt of the electricity companies, including lines, transformer stations at voltage of 500kV - 100kV with function of transmission , belong to ownership of the National power transmission corporation.

7. [2] (annulled)

8. [3] Year N means calendar year calculated from January 01 to December 12.

9. [4] Year N-1 means the adjacent calendar year preceding year N.

10. [5] (Annulled)

11. Assets of power transmission include power grid for transmission, construction works and other auxiliary equipment which are used for power transmission and possessed by the national power transmission corporation.

12. [6] The maximum total transfer and receipt capacity means the largest total transfer and receipt capacity of points of electricity transfer and receipt in duration of between January 01 year N and December 31 year N of a unit liable to pay cost of electricity transmission.

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METHOD OF ELABORATION AND POWER TRANSMISSION PRICES

Article 3. Principles of defining the average power transmission price

1. The annual power transmission price is applied a unified price nationwide irrespective of distance of power transmission and point of transfer and receipt.

2. The average power transmission price is defined annually under the principle of ensuring the full withdrawal of valid cost and an allowed profit for operation of the power transmission net to meet the prescribed quality and satisfy financial norms for investment, development of power transmission net.

3. [7] The average power transmission price of year N () is defined on basis of total allowed revenues from power transmission in year N of the national power transmission corporation, and total electrical energy which the national power transmission corporation assigns to units liable to pay cost of power transmission, at points of electricity transfer and receipt, calculated under the following formula: 

In which:

 : Total allowed revenues from power transmission in year N of the National Power Transmission Corporation (VND)

: Total tentative transfer and receipt electrical energy of unit i at all points of transfer and receipt in year N (kWh)

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Article 4. Method to define total annual allowed revenues from power transmission [8]

Total allowed revenues from power transmission in year N () includes elements of the allowed capital cost (), the allowed cost of operation and maintenance () and elements adjusting revenues from power transmission for year N-1 (), defined under the following formula: 

In which:

: Total allowed capital cost of transmission in year N of the National Power Transmission Corporation (VND)

: Total allowed cost of transmission operation and maintenance in year N of the National Power Transmission Corporation (VND)

: Difference between cost and revenues from power transmission in year N-1 adjusted in total allowed revenues from power transmission in year N (VND), defined under method specified in Clause 9 Article 1 of this Circular

Article 5. Method to define total capital cost

1. Total capital cost of transmission in year N () is defined under the following formula:

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In which:

: Total depreciation cost of fixed assets in year N (VND)

: Total cost of long-term loan interests and charges for borrowing capital, which must be paid in year N for assets of power transmission (VND)

LNN: The allowed profit from power transmission in year N (VND)

2. Total depreciation cost of fixed assets in year N () defined according to regulations on use time and method to depreciate the fixed assets specified in Circular No. 203/2009/TT-BTC dated October 20, 2009, of the Ministry of Finance, guiding the regime of management, use and depreciation of fixed assets, and the guiding, replacing and supplementing documents issued in the future.     

For assets of power transmission with the depreciation time various to provisions in Circular No. 203/2009/TT-BTC, National Power Transmission Corporation shall formulate regime of depreciation for such assets, report to the Vietnam Electricity Group to consider; and National Power Transmission Corporation shall submit to the Electricity Regulation Department for approval before submitting to the Ministry of Finance for promulgation.  

3. Total cost of long-term loan interests and charges for borrowing capital, which must be paid in year N () defined under credit contracts for assets of power transmission.

4. The allowed profit in year N (LNN) is defined under the following formula:

LNN = VCSH,N x ROEN

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VCSH,N: [9] The average equity capital till December 31 year N-1 and the equity capital estimated till December 31 year N (VND)

ROEN: The profit rate on equity capital of National Power Transmission Corporation (%), is defined to ensure financial norms for investment, development of power transmission net including the Self Financing Ratio (SFR) and the Debt Service Coverage Ratio (DSCR) aiming to gradually increase until reaching the respective level of 25% and 1.5 times

National Power Transmission Corporation shall formulate method and regulation on management of increasing and decreasing assets of power transmission, submit to the Vietnam Electricity Group for approval so as to submit to the Electricity Regulation Department.

Article 6. Method to define total operation and maintenance cost

1. Total operation and maintenance cost of power transmission in year N () is defined under the following formula:

In which:

: Total cost of raw materials in year N (VND)

: Total salary cost in year N (VND)

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: Total cost of buying outside services in year N (VND)

: Total other costs in money in year N (VND)

2. Method to define total cost of raw materials

a) Total cost of raw materials in year N () is defined under the cost of raw material for lines, transformer stations and transformers in year N, including cost for direct raw materials and indirect raw materials (experiment, operation and maintenance of lines, transformer stations and transformers), according to the following formula:

In which:

: Total cost of raw materials for power transmission lines in year N (VND)

: Total cost of raw materials for transformer stations in year N (VND)

: Total cost of raw materials for transformers in year N (VND)

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In which:

Ld,i,h : Total length of power transmission lines of type d, at voltage level i, in terrain condition h, operating in year N (km)

: Unit price of raw material for power transmission lines of type d, at voltage level i, in terrain condition h (VND/km)

d: To describe type of wires including: Aerial wire with single circuit (D), aerial wire with double circuit (K), underground cable with 1 circuit (ND), underground cable with 2 circuits (NK)

i: To describe the voltage level including: 110 kV, 220kV, 500kV

h: To describe terrain conditions including: delta (DB), midland and mountainous (TD), high mountains and dense forests (NC)

c) Total cost of raw materials for transmission stations in year N () is defined under the following formula:

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Mi, h: Total cells at voltage level i, in terrain condition h, operating in year N (cell)

: Unit price of raw material for 1 cell, at voltage level i, in terrain condition h (VND/cell)

d) Total cost of raw materials for transmissions in year N () is defined under the following formula:

In which:

Si, h: Total capacity of transformer at voltage level i, in terrain condition h, operating in year N (MVA)

: Unit price of raw material for 1 MVA transformer, at voltage level i, in terrain condition h (VND/MVA)

dd) [10] Volume of wires, number of cells of transformer and total capacity of transformer anticipated in year N under voltage levels defined under the practical volume calculated till the end of December 31 year N-1, the increased-additionally volume performed till March 31 year N and the increased volume anticipated in year N;

e) Unit price of raw materials for wires, cells of transformer station and transformer including two direct and indirect parts, in which the indirect part is defined under the percentage of direct part;

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3. Method to define salary cost

a) Total salary cost in year N of National Power Transmission Corporation includes total salary costs and based-salary costs;

b) [11] The salary cost is defined according to Circular No. 27/2010/TT-BLDTBXH dated September 14, 2010, of the Ministry of Labor, Invalids and Social Affairs, guiding management of labor, salary, remuneration and bonuses in one-member limited liability companies owned by State, the guiding, replacing and supplementing documents issued in the future, and other relevant regulations;  

c) Other costs based on salary such as cost for medical insurance, social insurance, unemployment insurance and Trade Union funding are defined according to relevant legal regulations.

4. Method to define total cost of overhaul of assets

a) Total cost of overhaul of assets in year N () of National Power Transmission Corporation is defined under the following formula:

In which:

: Total cost of overhaul of power transmission lines in year N (VND)

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: Total cost for overhaul of transformer in year N (VND)

: Total cost for overhaul of auxiliary and serving works in year N (VND)

Cost for overhaul of assets does not include cost for renovating, upgrading the fixed assets causing increase of their primary price.

b) Total cost for overhaul of power transmission lines in year N () is defined under the following formula:

In which:

Ld, i, h : Total length of power transmission lines of type d, at voltage level i, in terrain condition h, which are performed overhaul in year N (km)

: Unit price of overhaul for 1 km power transmission lines of type d, at voltage level i, in terrain condition h (VND/km)

d: To describe type of lines including: Aerial wire with single circuit (D), aerial wire with double circuit (K), underground cable with 1 circuit (ND), underground cable with 2 circuits (NK)

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h: To describe terrain conditions including: delta (DB), midland and mountainous (TD), high mountains and dense forests (NC)

c) Total cost for overhaul of transmission stations in year N () is defined under the following formula:

In which:

Mi, h: Total cells at voltage level i, in terrain condition h, performed overhaul in year N (cell)

: Unit price of overhaul for 1 cell, at voltage level i, in terrain condition h (VND/cell)

d) Total cost for overhaul of transmissions in year N () is defined under the following formula:

In which:

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: Unit price of overhaul for 1 MVA transformer, at voltage level i, in terrain condition h (VND/MVA)

dd) Total cost for overhaul of auxiliary and serving works in year N () is defined under the following formula:

In which:

k: Rate of cost norm for overhaul of auxiliary and serving works compared to total cost for overhaul of lines and transformer (including cells and transformer) (%)

e) National Power Transmission Corporation shall: Formulate norms and unit prices for overhaul and submit them to the Vietnam Electricity Group for approval so as to submit to the Electricity Regulation Department for promulgation; formulate list of items performed overhaul annually and submit to the Vietnam Electricity Group for approval so as to calculate total cost of overhaul in year N.

5. Method to define total cost for outside services

a) Total cost for outside services of year N () is total costs for goods and services at the request, which are performed and provided by organizations and individuals outside unit, including electricity, water, telephone and telecommunication services, books, newspapers; cost for hiring audit advisory; cost for hiring assets; cost for insuring assets and cost for other services with conclusion of contracts of supplying service so as to serve for management, operation of power transmission net in year N.

b) [12] Total cost of outside service in year N is defined under demand of tentative outside services in year N on the basis of cost performed practically and audited in year N-1 (at contracts of buying outside services and cost for outside services), and cost for implementation till the end of March 31 year N.

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a) Total other costs in money in year N  are costs including: working-trip allowances; costs for conferences, reception of guests; cost for training; cost for buying reactive power; cost for scientific study, inventions for renovation; cost for shift meals; cost for militia and self-defense forces, safe guards, prevention and fighting of storm and flood, fire prevention and fighting; cost for labor protection, working costume, labor safety, industrial and environmental hygiene; cost for drinking water in working time, allowances in kind for working in night shift, toxic allowances; cost for first-aid in labor accidents, normal medical treatment drugs, cost for rehabilitation for laborers; cost for recruitment; losses accounted in cost; cost for tax of all kinds; land rents; cost for payable short-term loan interests in year (including short-term loan interests for the necessary circulating capital in serve of activities of power transmission); differences of rate to perform the long-term loans matured in year and other costs in money in year N;      

b) [13] Total other cost in money in year N defined according to costs anticipated in year N on the basis of costs performed practically and already audited in year N-1 and costs performed till the end of March 31 year N. 

Article 7. Method to define the annual power transmission price for units liable to pay cost of power transmission

1. The power transmission price () (VND/kWh) of year N for unit liable to pay cost of power transmission i is defined under the following formula:

In which:

TC: Cost for power transmission which is paid by the unit liable to pay cost of power transmission i in year N (VND)

: Total transferred electrical energy as anticipated by the unit liable to pay cost of power transmission i at all points of transfer and receipt in year N

2. [14] Cost for power transmission which is paid by the unit liable to pay cost of power transmission i in year N is calculated under the following formula:

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In which:

TCP,i: Elements of cost for power transmission under capacity (VND)

TCA,i: Elements of cost for power transmission under electrical energy (VND)

: Total the adjusting volume of cost for power transmission which is paid by the unit liable to pay cost of power transmission i in year (N-1) (VND)

3. Elements of cost for power transmission under capacity and electrical energy are defined respectively under two formulas as follows:

In which:

: Total tentative maximum capacity of transfer and receipt of unit liable to pay cost for power transmission i at points of electricity transfer and receipt in year N (MW)

n: Total units liable to pay cost for power transmission.

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4. [15] Total adjusting volume of cost for power transmission of the unit liable to pay cost for power transmission i due to difference between the output of transfer and receipt, the actual maximum capacity of transfer and receipt with  the maximum capacity of transfer and receipt anticipated for year N-1 (DCi,N-1) is calculated under the following formula:

In which:

: Total revenues from power transmission in year (N-1) (VND)

: Total tentative maximum capacity of unit liable to pay cost for power transmission i at points of electricity transfer and receipt from power transmission net in year (N-1) (MW)

: Total actual maximum capacity of unit liable to pay cost for power transmission i at points of electricity transfer and receipt from power transmission net in year (N-1) (MW)

: The tentative electrical energy transferred and received of the unit liable to pay cost of power transmission i in year (N-1) (MWh)

: The electrical energy transferred and received practically of the unit liable to pay cost of power transmission i in year (N-1) (MWh)

: The average interest of VND interest rate on deposit, term of 12 months, postpaid for enterprise clients on December 31 year (N-1) of 04 commercial banks (the Joint Stock Company Bank of Foreign Trade of Vietnam, the Vietnam Joint Stock Company Bank for Industry and Trade, the Joint Stock Company Bank for Investment and Development of Vietnam, the Vietnam Bank for Agriculture and Rural Development) plus 3%

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Cost for power transmission in month j (TCij) of the unit liable to pay cost of power transmission i is defined under the following formula:

In which:

: Total electrical energy transferred and received practically at points of electricity transfer and receipt of the unit liable to pay cost of power transmission i in month j (kWh)

: The power transmission price of year N for the unit liable to pay cost of power transmission i (VND/kWh)

Chapter III

THE REGIME OF ADJUSTING REVENUES FROM POWER TRANSMISSION

Article 9. Principles of adjusting revenues from power transmission [16]

1. The National power transmission corporation shall make and maintain system of books to monitor items of cost for defining difference of cost and revenue of year N-1 so as to adjust in total allowed revenues from power transmission in year N.

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a) The total actual revenue in year N-1 of National Power Transmission Corporation is different with total allowed revenues from power transmission already approved;

b) To arise difference between the rational and valid actual cost in year N-1 (based on Financial statement) in comparison with the counting cost already approved in plan on power transmission prices in year N-1 (including cost for depreciation, cost for interest rates of long-term loans, cost for salary, cost for overhaul, cost for outside services, difference of the execution exchange rate), except for case of arising the cost prescribed in point c and point d of this Clause;  

c) Arising costs for remedying consequences due to natural disasters and handling incidents force majeure in year N-1;

d) Arising cost for rational investment in assets for power transmission outside the plan on investment in power transmission net in year N-1 which is approved by competent state agencies.

Article 10. Solving the arising costs for remedying consequences due to natural disasters and handling incidents force majeure and outside-plan investment

1. In case where costs for remedying consequences arise due to natural disasters and handling incidents force majeure, within 15 days from day of happening events, the National Power Transmission Corporation shall report on events and estimate the arising costs to remedy, submit to the Vietnam Electricity Group for approving and reporting the Electricity Regulation Department.

2. In case of arising cost for rational investment in assets of power transmission outside the approved plan, the National Power Transmission Corporation shall make dossier to supplement plan on expanding the annual power transmission net, submit to the Vietnam Electricity Group for approval so as to submit to the Electricity Regulation Department for approval.  

Article 11. Responsibility for maintenance and regime of report about difference of cost and revenue from power transmission [17]

The National power transmission corporation shall maintain system of books to monitor items of cost and make annual reports (in dossier requesting for approving total revenue from power transmission) about situation of increasing and decreasing difference of adjusting cost and revenue from power transmission in year N-1, including:

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2. Difference between cost and revenue in year N-1 () adjusted in total revenue from power transmission in year N

3. Surplus of difference between cost and revenue from power transmission until the end of December 31 year N-1.

Article 12. Method to define difference between cost and revenue from power transmission [18]

Difference of cost and revenue from power transmission  of National Power Transmission Corporation in year N-1 adjusted in total revenues from power transmission in year N, is defined under the following formula:

In which:

: Total revenues from power transmission executed practically in year N-1 (under financial statement), is defined under the following formula:

: Total revenues from power transmission already approved in year N-1

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: Total cost arising for remedying consequences due to natural disaster and handle incidents force majeure; total cost of depreciation, cost of interest of loans, profit of equity capital of investment amounts arising reasonably in year N-1 (as prescribed in point c and point d Clause 2 Article 9 of the Circular No. 14/2010/TT-BCT, amended in Clause 7 Article 1 of this Circular)

: The average interest of VND interest rate on deposit, term of 12 months, postpaid for enterprise clients on March 31 year N of 04 commercial banks (the Joint Stock Company Bank of Foreign Trade of Vietnam, the Vietnam Joint Stock Company Bank for Industry and Trade, the Joint Stock Company Bank for Investment and Development of Vietnam, the Vietnam Bank for Agriculture and Rural Development) plus 3%

Chapter IV

SANCTION REGULATION OF FAILING TO ENSURE SERVICE QUALITY

Article 13. Principles of sanction of failing to ensure service quality

1. The National Power Transmission Corporation shall be sanctioned of failing to ensure quality of power transmission service in case of incidents involving power outages on lines and transformers for power transmission in year of power transmission net in excess of the prescribed norms for each voltage level, except for incidents force majeure (natural disaster) or incidents which are not caused by National Power Transmission Corporation.

2. The sanction regulation shall be applied annually by deducting from welfare fund an amount equal to total fines of failing to ensure quality of power transmission services and transfer into the development investment fund of National Power Transmission Corporation.

Article 14. Method to define total fines of failing to ensure service quality

1. The annual total fines of failing to ensure quality of power transmission service (year N) N of National Power Transmission Corporation, is defined under the following formulas:

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In which:

: The fines of failing to ensure quality of power transmission service due to incident of power transmission lines (VND)

: The fines of failing to ensure quality of power transmission service due to incident of transformer (VND)

Li,N (Lj, N, Lk,N): Total length of power transmission lines of 110kV (220kV, 500kV) which are outage when happen incident i (j,k) (km)

i,N (Sj,N­, Sk,N): Total installing capacity of transformers with voltage at high-voltage side of 110kV (220kV, 500kV) which are outage when happen incident i (j,k) (MVA)

ti (tj, tk): Time of power outage of power transmission line or transformers with voltage at high-voltage side of 110kV (220kV, 500kV) when happen incident i (j,k) (minute)

n (m, l): Number of times of incidents of power transmission lines or transformers with voltage at high-voltage side of 110kV (220kV, 500kV) in year N (from September 01 year N-1 to August 31 year N)

The fining rate of failing to ensure quality of power transmission service due to incident of power outage on power transmission lines in year N calculated for each kilometer of power transmission line of 110 kV in one minute [VND/(km x minute)], calculated under the following formula:

= X110 x GTT N

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= X220 x GTT N

The fining rate of failing to ensure quality of power transmission service due to incident of power outage on power transmission lines in year N calculated for each kilometer of power transmission line of 500 kV in one minute [VND/(km x minute)], calculated under the following formula:

= X500 x GTT N

The fining rate of failing to ensure quality of power transmission service due to incident of power outage of transformer in year N calculated for each MVA of capacity of transformer with voltage at high-voltage side of 110 kV in one minute [VND/(MVA x minute)], calculated under the following formula:

= Y110 x GTT N

The fining rate of failing to ensure quality of power transmission service due to incident of power outage of transformer in year N calculated for each MVA of capacity of transformer with voltage at high-voltage side of 220 kV in one minute [VND/(MVA x minute)], calculated under the following formula:

= Y220 x GTT N

The fining rate of failing to ensure quality of power transmission service due to incident of power outage of transformer in year N calculated for each MVA of capacity of transformer with voltage at high-voltage side of 500 kV in one minute [VND/(MVA x minute)], calculated under the following formula:

= Y500 x GTT N

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X220: The fining coefficient of failing to ensure quality of power transmission service due to incident of power outage on power transmission lines of 220 kV [1/(km x minute)]

X500: The fining coefficient of failing to ensure quality of power transmission service due to incident of power outage on power transmission lines of 500 kV [1/(km x minute)]

Y110: The fining coefficient of failing to ensure quality of power transmission service due to incident of power outage of transformer of power transmission of 220 kV [1/(MVA x minute)]

Y220: The fining coefficient of failing to ensure quality of power transmission service due to incident of power outage of transformer of power transmission of 220 kV [1/(MVA x minute)]

Y500: The fining coefficient of failing to ensure quality of power transmission service due to incident of power outage of transformer of power transmission of 500 kV [1/(MVA x minute)]

A (B, C): The fining norm of incident of power outage of power transmission line of 110kV (220kV, 500kV)

D (E, G): The fining norm of incident of power outage of transformer of transmission line of 110kV (220kV, 500kV)

2. Total fines of failing to ensure quality of power transmission service in year N () of National Power Transmission Corporation will be 0.1% of total allowed revenues from power transmission in year N, maximally (0.1% x ).

3. Incidents of lines and transformers of power transmission which are calculated when defining the fining level of failing to ensure quality of power transmission service are incidents with duration of power outage of more or equal to one minute. Duration of power outage of incidents of lines and transformers of power transmission is rounded under minute.

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1. Before October 01 every year (year N), National Power Transmission Corporation must report statistics of incidents of power transmission lines (time of power outage ti, length of lines suffering incident Li,N for each incident), incident of transformer of power transmission (time of power outage ti, total installing capacity of transformer suffering incident Si,N for each incident) of power transmission net from September 01 year N-1 till the end of August 31 year N to send to unit operating the national electrical system and electricity market.

2. Before November 01 every year (year N), unit operating the national electrical system and electricity market shall examine, confirm statistical reports of incidents of lines, transformers of power transmission from September 01 year N-1 till the end of August 31 year N, send report to the Electricity Regulation Department and send copy of report to National Power Transmission Corporation to serve as basis to define the fining level of failing to ensure quality of power transmission service in year N.

3. Before December 01 every year (year N), the National Power Transmission Corporation shall report the Electricity Regulation Department to provide explanations, statistics of incidents of lines, transformers of power transmission from September 01 year N-1 till the end of August 31 year N; calculate the fining level of failing to ensure quality of power transmission services in year N; submit to the Vietnam Electricity Group for approval so as to submit to the Electricity Regulation Department for approval to serve as basis for implementation.

Chapter V

ORDER OF AND PROCEDURES FOR APPRAISAL, APPROVAL AND PAYMENT OF POWER TRANSMISSION PRICE

Article 16. Order of and procedures for appraisal and approval of total revenue from power transmission [19]

1. National Power Transmission Corporation shall make dossier of appraisal of total revenues from power transmission in year N, submit it to the Vietnam Electricity Group for approval. Before May 15 every year (year N), the Vietnam Electricity Group shall submit to the Electricity Regulation Department for appraisal and issuing written approval. In case of a invalid dossier as prescribed in Article 17 of the Circular No. 14/2010/TT-BCT (amended in Clause 11 and Clause 12 Article 1 of this Circular), the Vietnam Electricity Group shall complete and supplement within five (05) days after receiving request of the Electricity Regulation Department.

In necessary case, the Electricity Regulation Department may use consultant for appraisal of dossier submitted for approving total revenue from power transmission of National Power Transmission Corporation.

2. Before June 10 every year (year N), the Electricity Regulation Department shall have a written approval for allowed total revenues from power transmission in year N of National Power Transmission Corporation to serve as basis for approving the power transmission price.

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Dossier of submission for approving total revenues from power transmission every year (year N) of National Power Transmission Corporation includes:

1. Report of appraising total revenues from power transmission year N of National Power Transmission Corporation.

2. Notes and tables calculating total revenues from power transmission in year N, include:

a) [20] Analyzing, assessing implementation of the assigned norms of electricity output, rate of loss during power transmission, level of incidents of lines and transformer at voltage levels, implementation of revenue, cost of year N-1 and till the end of March 31 year N; analyzing, assessing implementation of profit, equity capital, financial norms such as rate of profit on equity capital, structure of equity capital and borrowing capital, rate of self-investment, rate of paying debt till the end December 31 year N-1;

b) Notes and calculation of total allowed capital cost  in year N of National Power Transmission Corporation include:

- Total depreciation cost in year N: The table summing up depreciation deductions of fixed assets in year N and the detailed table of cost for basic depreciation under each type of fixed assets in year N;

- Total cost to pay interest of long-term loans payable in year N for works of power transmission: Table of calculating interest of loans anticipated to be payable in year N;

- The equity capital estimated till the end of year N-1 and anticipated till the end of year N: notes and the detailed counting table of increasing and decreasing equity capital in year N-1 and year N;

- The tentative profit of year N, the rate of profit on equity capital, rate of self investment, rate of debt payment.

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- Total cost of raw materials in year N: Notes and the table counting cost of raw materials executed practically in year N-1 and till the end of March 31 year N, tentative cost of year N according to total length of line and types of wire lines, total capacity of transformer, quantity of cells of transformer according to levels of voltage and terrain conditions; 

- Total salary cost in year N: notes and the counting table of salary cost;

- Total cost for overhaul in year N: notes and table counting cost for overhaul in year N as prescribed in Clause 4 Article 6 of the Circular 14/2010/TT-BCT;

- Total cost of outside services in year N: notes and the table of counting cost of outside service according to work items executed practically in year N-1 and till the end of March 31 year N, and tentative cost of year N;

- Total other cost in money in year N: notes and the counting table of other actual costs in money in year N-1, and till the end of March 31 year N and tentative cost of year N.

d) [22] Notes and calculation of difference between cost and revenues from power transmission in year N-1; report of increasing and decreasing difference of cost and revenues from power transmission;  

dd) Notes and calculation of total allowed revenues from power transmission in year N.

3. Enclosed documents, including:

a) [23] List of investment projects which have been finished and put into operation till March 31 year N and anticipated to execute till the end of year N in conformity with the master plan on national electricity development and plan to expand power transmission net every year of National Power Transmission Corporation already approved;  

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c) [25] The summary  table of changes on regular and official labor quantity in salary table of corporation and units in year N-1 and plan in year N;

d) [26] Summing up reserve materials existing and supplemented in year N-1 and plan in year N;

dd) List of works items made overhaul of fixed assets in year N-1 and anticipated in year N;

e) [27] Financial statements of year N-1: accounting balance sheet, statement of production and business result, statement of cash flows, notes to the financial statements; 

g) Norms of cost elements used in dossier approved by competent authorities.

Article 18. Order of elaborating the power transmission price [28]

1. Before January 05 every year (year N), units liable to pay cost for power transmission shall send figures of total maximum capacity and electrical energy received practically at each point of transfer and receipt of year N-1 to National Power Transmission Corporation to serve as basis for calculation of the adjusting elements DCN-1  of year N-1.

2. Before April 01 every year (year N), units liable to pay cost for power transmission shall make forecast of electrical energy of transfer and receipt and total maximum capacity at all points of transfer and receipt of year N and send to National Power Transmission Corporation. National Power Transmission Corporation shall sum up, calculate forecast of electrical energy of transfer and receipt and total maximum capacity of each unit liable to pay cost for power transmission, send the forecast result to Unit operating the national electricity system and electricity market for consulting.

In case where a unit liable to pay cost for power transmission fails to send forecast figures, National Power Transmission Corporation may use figures of year N-1 to do as figures for calculating the power transmission price in year N.

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4. Before June 15 every year (year N), the National Power Transmission Corporation shall define the power transmission price applied from July 01 year N to June 30 of the following year () for each unit liable to pay cost of power transmission (based on revenue from power transmission in year N already approved and the adjusting elements of year N-1–, submit to the Vietnam Electricity Group for approval so as to submit to the Electricity Regulation Department for the approval. In case of an invalid dossier as prescribed in Clause 14 Article 1 of this Circular, National Power Transmission Corporation shall complete and supplement within five (05) days after receiving request of the Electricity Regulation Department.

Article 19. Dossier of submission for approving the power transmission price [29]

1. A report requesting for approval of power transmission price.

2. Notes and table calculating cost of power transmission of each unit liable to pay cost of power transmission, including:

a) Cost elements of power transmission according to capacity, electrical energy;

b) Total maximum capacity of transfer and receipt, total electrical energy of transfer and receipt anticipated of each unit liable to pay cost of power transmission at points of transfer and receipt in year N;

c) Total adjustments of cost of power transmission of units liable to pay cost of power transmission in year N-1 (the detailed counting table).

3. Enclosed documents, including:

a) Forecast of the received electrical energy and total maximum capacity in year N of each unit liable to pay cost for power transmission which is made by Unit operating the national electrical system and electricity market;

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Article 20. Payment of power transmission cost

1. The power trading company shall pay cost of power transmission to the National Power Transmission Corporation. Units liable to pay cost of power transmission shall pay cost of power transmission to the power trading company.

2. Before tenth date of each month (month T), the National Power Transmission Corporation shall send dossier of paying cost of power transmission of previous month (month T-1) of each unit liable to pay cost of power transmission and total cost of power transmission in month T-1 of all units.

In case of detecting that dossier of payment has errors or is insufficient, within ten (10) days from the date of receiving dossier of payment, the power trading company must notify in writing the National power transmission corporation for amendments and supplementations.

3. Before the fifteen day every month (month T), the power trading company shall advance cost of power transmission in month T-1 to the National Power Transmission Corporation with amount equal to 50% of total cost of power transmission defined in payment dossier of month T-1.

4. Before twentieth date of each month (month T), the National Power Transmission Corporation shall send invoice of total cost of power transmission in month T-1 to the power trading company (enclosed with a complete payment dossier in case of having amendments, supplementations).

5. Before the fifth day of month T+1, the power trading company must pay the remaining cost of power transmission of month T-1 for the National Power Transmission Corporation according to the payment invoice.

In case where figures in invoice are different to figures as informed by the National power transmission corporation, the power trading company shall pay amounts according to invoice to the national power transmission corporation. Payment of difference shall be agreed by two parties in contract.

Chapter VI

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Article 21. Organization of implementation

1. The Electricity Regulation Department shall guide, examine implementation of this Circular and solve relevant arising disputes. In case where the Prime Minister changes time of adjusting the annual power retail price, the Electricity Regulation Department shall inform relevant units about time of adjustment, landmarks of time to take figures and time of implementing steps of calculating power transmission prices.

2. The Vietnam Electricity Group shall direct National Power Transmission Corporation in elaborating total revenues and price of power transmission every year; approving steps of elaborating the annual power transmission prices as prescribed in this Circular, and direct the power trading company and National Power Transmission Corporation in signing contracts of power transmission services.

3. National Power Transmission Corporation shall:

a) Elaborating annual total revenues and power transmission prices to submit to the Vietnam Electricity Group for the approval so as to submit to the Electricity Regulation Department for the appraisal and approval;

b) Elaborating types of unit price, norm of cost and type of coefficient; sanctioning norm for incident of failing to ensure quality of power transmission service, make statistics of incidents of lines and transformers of power transmission for each voltage level of 110kV, 220kV, 500kV specified in this Circular and submit to the Vietnam electricity Group for the approval to submit to the Electricity Regulation Department for promulgation;  

c) [30] Having settlement report, independent audit report before May 01 every year.

Article 22. Effect [31]

1. This Circular takes effect on June 01, 2010.

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CERTIFICATION OF THE CONSOLIDATING DOCUMENTS

Hanoi, September 06, 2013

THE MINISTER




V
u Huy Hoang

 


[1] Circular No. 03/2012/TT-BCT dated January 19, 2012, of the Minister of Industry and Trade amending and supplementing a number of Articles of the Circular No. 14/2010/TT-BCT dated April 15, 2010, of the Minister of Industry and Trade providing method of elaboration, order of and procedures for formulation, promulgation and management of power transmission price have grounds for promulgation as follows:  

"Pursuant to the Government’s Decree No. 189/2007/ND-CP dated December 27, 2007, defining the functions, tasks, powers and organizational structure of the Ministry of Industry and Trade, the Government’s Decree No. 44/2011/ND-CP dated June 14, 2011, amending and supplementing Article 3 of the Government’s Decree No.189/2007/ND-CP dated December 27,2007,defining the functions, tasks, powers and organizational structure of the Ministry of Industry and Trade;     

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Pursuant to the Government’s Decree No. 105/2005/ND-CP dated August 17, 2005, detailing and guiding implementation of a number of Articles of Law on electricity;     

The Minister of Industry and Trade amends and supplements a number of articles of the Circular No. 14/2010/TT-BCT dated April 15, 2010, of the Ministry of Industry and Trade providing method of elaboration, order of and procedures for formulation, promulgation and management of power transmission price as follows:”

[2] This Clause is annulled as prescribed at point a clause 1 Article 1 of the Circular No. 03/2012/TT-BCT dated January 19, 2012, of the Minister of Industry and Trade amending and supplementing a number of Articles of the Circular No. 14/2010/TT-BCT dated April 15, 2010, of the Minister of Industry and Trade providing method of elaboration, order of and procedures for formulation, promulgation and management of power transmission prices, taking effect on March 05, 2012.

[3] This Clause is amended as prescribed at point b clause 1 Article 1 of the Circular No. 03/2012/TT-BCT dated January 19, 2012, of the Minister of Industry and Trade amending and supplementing a number of Articles of the Circular No. 14/2010/TT-BCT dated April 15, 2010, of the Minister of Industry and Trade providing method of elaboration, order of and procedures for formulation, promulgation and management of power transmission prices, taking effect on March 05, 2012.

[4] This Clause is amended as prescribed at point b clause 1 Article 1 of the Circular No. 03/2012/TT-BCT dated January 19, 2012, of the Minister of Industry and Trade, amending and supplementing a number of Articles of the Circular No. 14/2010/TT-BCT dated April 15, 2010, of the Minister of Industry and Trade providing method of elaboration, order of and procedures for formulation, promulgation and management of power transmission prices, taking effect on March 05, 2012.

[5] This Clause is annulled as prescribed at point a clause 1 Article 1 of the Circular No. 03/2012/TT-BCT dated January 19, 2012, of the Minister of Industry and Trade amending and supplementing a number of Articles of the Circular No. 14/2010/TT-BCT dated April 15, 2010, of the Minister of Industry and Trade providing method of elaboration, order of and procedures for formulation, promulgation and management of power transmission prices, taking effect on March 05, 2012.

[6] This Clause is amended as prescribed at point b clause 1 Article 1 of the Circular No. 03/2012/TT-BCT dated January 19, 2012, of the Minister of Industry and Trade, amending and supplementing a number of Articles of the Circular No. 14/2010/TT-BCT dated April 15, 2010, of the Minister of Industry and Trade providing method of elaboration, order of and procedures for formulation, promulgation and management of power transmission prices, taking effect on March 05, 2012.

[7] This Clause is amended as prescribed at clause 2 Article 1 of the Circular No. 03/2012/TT-BCT dated January 19, 2012, of the Minister of Industry and Trade, amending and supplementing a number of Articles of the Circular No. 14/2010/TT-BCT dated April 15, 2010, of the Minister of Industry and Trade providing method of elaboration, order of and procedures for formulation, promulgation and management of power transmission prices, taking effect on March 05, 2012.

[8] This Article is amended as prescribed at clause 3 Article 1 of the Circular No. 03/2012/TT-BCT dated January 19, 2012, of the Minister of Industry and Trade, amending and supplementing a number of Articles of the Circular No. 14/2010/TT-BCT dated April 15, 2010, of the Minister of Industry and Trade providing method of elaboration, order of and procedures for formulation, promulgation and management of power transmission prices, taking effect on March 05, 2012.

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[10] This point is amended as prescribed at point a clause 5 Article 1 of the Circular No. 03/2012/TT-BCT dated January 19, 2012, of the Minister of Industry and Trade, amending and supplementing a number of Articles of the Circular No. 14/2010/TT-BCT dated April 15, 2010, of the Minister of Industry and Trade providing method of elaboration, order of and procedures for formulation, promulgation and management of power transmission prices, taking effect on March 05, 2012.

[11] This point is amended as prescribed at point b clause 5 Article 1 of the Circular No. 03/2012/TT-BCT dated January 19, 2012, of the Minister of Industry and Trade, amending and supplementing a number of Articles of the Circular No. 14/2010/TT-BCT dated April 15, 2010, of the Minister of Industry and Trade providing method of elaboration, order of and procedures for formulation, promulgation and management of power transmission prices, taking effect on March 05, 2012.

[12] This point is amended as prescribed at point c clause 5 Article 1 of the Circular No. 03/2012/TT-BCT dated January 19, 2012, of the Minister of Industry and Trade, amending and supplementing a number of Articles of the Circular No. 14/2010/TT-BCT dated April 15, 2010, of the Minister of Industry and Trade providing method of elaboration, order of and procedures for formulation, promulgation and management of power transmission prices, taking effect on March 05, 2012.

[13] This point is amended as prescribed at point d clause 5 Article 1 of the Circular No. 03/2012/TT-BCT dated January 19, 2012, of the Minister of Industry and Trade, amending and supplementing a number of Articles of the Circular No. 14/2010/TT-BCT dated April 15, 2010, of the Minister of Industry and Trade providing method of elaboration, order of and procedures for formulation, promulgation and management of power transmission prices, taking effect on March 05, 2012.

[14] This Clause is amended as prescribed at clause 6 Article 1 of the Circular No. 03/2012/TT-BCT dated January 19, 2012, of the Minister of Industry and Trade, amending and supplementing a number of Articles of the Circular No. 14/2010/TT-BCT dated April 15, 2010, of the Minister of Industry and Trade providing method of elaboration, order of and procedures for formulation, promulgation and management of power transmission prices, taking effect on March 05, 2012.

[15] This Clause is amended as prescribed at clause 6 Article 1 of the Circular No. 03/2012/TT-BCT dated January 19, 2012, of the Minister of Industry and Trade, amending and supplementing a number of Articles of the Circular No. 14/2010/TT-BCT dated April 15, 2010, of the Minister of Industry and Trade providing method of elaboration, order of and procedures for formulation, promulgation and management of power transmission prices, taking effect on March 05, 2012.

[16] This Article is amended as prescribed at clause 7 Article 1 of the Circular No. 03/2012/TT-BCT dated January 19, 2012, of the Minister of Industry and Trade, amending and supplementing a number of Articles of the Circular No. 14/2010/TT-BCT dated April 15, 2010, of the Minister of Industry and Trade providing method of elaboration, order of and procedures for formulation, promulgation and management of power transmission prices, taking effect on March 05, 2012.

[17] This Article is amended as prescribed at clause 8 Article 1 of the Circular No. 03/2012/TT-BCT dated January 19, 2012, of the Minister of Industry and Trade, amending and supplementing a number of Articles of the Circular No. 14/2010/TT-BCT dated April 15, 2010, of the Minister of Industry and Trade providing method of elaboration, order of and procedures for formulation, promulgation and management of power transmission prices, taking effect on March 05, 2012.

[18] This Article is amended as prescribed at clause 9 Article 1 of the Circular No. 03/2012/TT-BCT dated January 19, 2012, of the Minister of Industry and Trade, amending and supplementing a number of Articles of the Circular No. 14/2010/TT-BCT dated April 15, 2010, of the Minister of Industry and Trade providing method of elaboration, order of and procedures for formulation, promulgation and management of power transmission prices, taking effect on March 05, 2012.

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[20] This point is amended as prescribed at clause 11 Article 1 of the Circular No. 03/2012/TT-BCT dated January 19, 2012, of the Minister of Industry and Trade, amending and supplementing a number of Articles of the Circular No. 14/2010/TT-BCT dated April 15, 2010, of the Minister of Industry and Trade providing method of elaboration, order of and procedures for formulation, promulgation and management of power transmission prices, taking effect on March 05, 2012.

[21] This point is amended as prescribed at clause 11 Article 1 of the Circular No. 03/2012/TT-BCT dated January 19, 2012, of the Minister of Industry and Trade, amending and supplementing a number of Articles of the Circular No. 14/2010/TT-BCT dated April 15, 2010, of the Minister of Industry and Trade providing method of elaboration, order of and procedures for formulation, promulgation and management of power transmission prices, taking effect on March 05, 2012.

[22] This point is amended as prescribed at clause 11 Article 1 of the Circular No. 03/2012/TT-BCT dated January 19, 2012, of the Minister of Industry and Trade, amending and supplementing a number of Articles of the Circular No. 14/2010/TT-BCT dated April 15, 2010, of the Minister of Industry and Trade providing method of elaboration, order of and procedures for formulation, promulgation and management of power transmission prices, taking effect on March 05, 2012.

[23] This point is amended as prescribed at clause 12 Article 1 of the Circular No. 03/2012/TT-BCT dated January 19, 2012, of the Minister of Industry and Trade, amending and supplementing a number of Articles of the Circular No. 14/2010/TT-BCT dated April 15, 2010, of the Minister of Industry and Trade providing method of elaboration, order of and procedures for formulation, promulgation and management of power transmission prices, taking effect on March 05, 2012.

[24] This point is amended as prescribed at clause 12 Article 1 of the Circular No. 03/2012/TT-BCT dated January 19, 2012, of the Minister of Industry and Trade, amending and supplementing a number of Articles of the Circular No. 14/2010/TT-BCT dated April 15, 2010, of the Minister of Industry and Trade providing method of elaboration, order of and procedures for formulation, promulgation and management of power transmission prices, taking effect on March 05, 2012.

[25] This point is amended as prescribed at clause 12 Article 1 of the Circular No. 03/2012/TT-BCT dated January 19, 2012, of the Minister of Industry and Trade, amending and supplementing a number of Articles of the Circular No. 14/2010/TT-BCT dated April 15, 2010, of the Minister of Industry and Trade providing method of elaboration, order of and procedures for formulation, promulgation and management of power transmission prices, taking effect on March 05, 2012.

[26] This point is amended as prescribed at clause 12 Article 1 of the Circular No. 03/2012/TT-BCT dated January 19, 2012, of the Minister of Industry and Trade, amending and supplementing a number of Articles of the Circular No. 14/2010/TT-BCT dated April 15, 2010, of the Minister of Industry and Trade providing method of elaboration, order of and procedures for formulation, promulgation and management of power transmission prices, taking effect on March 05, 2012.

[27] This point is amended as prescribed at clause 12 Article 1 of the Circular No. 03/2012/TT-BCT dated January 19, 2012, of the Minister of Industry and Trade, amending and supplementing a number of Articles of the Circular No. 14/2010/TT-BCT dated April 15, 2010, of the Minister of Industry and Trade providing method of elaboration, order of and procedures for formulation, promulgation and management of power transmission prices, taking effect on March 05, 2012.

[28] This Article is amended as prescribed at clause 13 Article 1 of the Circular No. 03/2012/TT-BCT dated January 19, 2012, of the Minister of Industry and Trade, amending and supplementing a number of Articles of the Circular No. 14/2010/TT-BCT dated April 15, 2010, of the Minister of Industry and Trade providing method of elaboration, order of and procedures for formulation, promulgation and management of power transmission prices, taking effect on March 05, 2012.

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[30] This point is amended as prescribed at clause 15 Article 1 of the Circular No. 03/2012/TT-BCT dated January 19, 2012, of the Minister of Industry and Trade, amending and supplementing a number of Articles of the Circular No. 14/2010/TT-BCT dated April 15, 2010, of the Minister of Industry and Trade providing method of elaboration, order of and procedures for formulation, promulgation and management of power transmission prices, taking effect on March 05, 2012.

[31] Article 2 of the Circular No.03/2012/TT-BCT dated January 19, 2012, of the Minister of Industry and Trade, amending and supplementing a number of Articles of the Circular No. 14/2010/TT-BCT dated April 15, 2010, of the Minister of Industry and Trade providing method of elaboration, order of and procedures for formulation, promulgation and management of power transmission prices, taking effect on March 05, 2012, prescribing as follows:

 “Article 2. Effect

1. This Circular takes effect on March 05, 2012, previous provisions promulgated by the Ministry of Industry and Trade, which are contrary to this Circular are hereby annulled.

2. The Director of Electricity Regulation Department, President and General Director of Vietnam Electricity Group, General Director of National Power Transmission Corporation, Direct of Regulation Center of national electrical system, Director of power trading company, general directors of power corporations, units liable to pay cost of power transmission and relevant organizations and individuals shall implement this Circular.”