| THE MINISTRY OF INDUSTRY | SOCIALIST REPUBLIC OF VIET NAM |
| No. 05/2009/TT-BCT | Hanoi, February 26, 2009 |
CIRCULAR
PRESCRIBING 2009 ELECTRICITY SALE PRICES AND GUIDING THE APPLICATION THEREOF
THE MINISTER OF INDUSTRY AND TRADE
Pursuant to the Government’s Decree No. 189/2007/ND-CP of December 27, 2007, defining the functions, tasks, powers and organizational structure of the Ministry of Industry and Trade;
Pursuant to the December 3, 2004 Electricity Law; and the Government’s Decree No. 105/2005/ND-CP of August 17, 2005, detailing and guiding a number of articles of the Electricity Law;
Pursuant to the Prime Minister’s Decision No. 21/2009/QD-TTg of February 12, 2009, approving market-based electricity sale prices to be applied in 2009 and during 2010-20/2;
At the proposal of the director of the Electricity Regulatory Authority of Vietnam,
PRESCRIBES:
Chapter I.
GENERAL PROVISIONS
Article 1. Scope of regulation and subjects of application
1. This Circular prescribes electricity wholesale and retail prices and guides the application thereof.
2. This Circular applies to organizations and individuals buying and selling electricity from the national power system.
3. Provincial-level People’s Committees shall decide on electricity sale prices in localities which are not connected with the national power grid after getting written opinions from the Electricity Regulatory Authority of Vietnam.
Article 2. Voltage-based electricity sale prices
1. Voltage-based electricity sale prices under this Circular are applicable to all electricity buyers other than those buying electricity at daily-life electricity retail prices or at wholesale prices applicable to rural areas, condominiums and residential clusters.
2. Electricity shall be sold at the price applicable to the voltage of the electric metering system.
Article 3. Consumption hour-based electricity sale prices
Electricity sale prices are set based on the time of consumption during the day (below referred to as three-price system).
1. Off-peak hours:
a/ From Monday to Saturday:
- From 4:00 h to 9:30 h (5 hours and 30 minutes);
- From 11:30 h to 17:00 h (5 hours and 30 minutes);
- From 20:00 h to 22:00 h (2 hours).
b/ Sunday:
From 4:00 h to 22:00 h (18 hours).
2. Peak hours:
a/ From Monday to Saturday:
From 9:30 h to 11:30 h (2 hours);
From 17:00 h to 20:00 h (3 hours);
b/ Sunday: no peak hours
3. Low hours:
All days from 22:00 h to 4:00 h (6 hours).
Article 4. Conditions for application of electricity wholesale prices
Electricity wholesale prices under Articles 8, 9 and 10 of this Circular are applicable to power units fully meeting the conditions below:
a/ Possessing a permit for electricity distribution and retail granted by a competent agency.
b/ Keeping accounting books according to regulations, which account electricity sales separately.
c/ Having electricity trading contracts, installing separate electric meter for each household, and issuing electricity charge invoice to each consumer in each payment period under electricity trading contracts.
Article 5. Guidance on application of electricity sale prices
1. Electricity sale prices under this Circular are exclusive of value-added tax.
2. Detailed guidance on application of prices is provided in Appendix to this Circular.
Chapter II.
ELECTRICITY WHOLESALE PRICES
Article 6. Parameters for calculating 2009 electricity sale prices
Parameters for calculating the 2009 electricity sale price (the average electricity retail price is VND 948.5/kWh, exclusive of value-added tax) include:
1. Estimated total commercial electricity output in 2009: 74.701 billion kWh.
2. Estimated total output of domestically generated and imported electricity in 2009: 85.046 billion kWh.
3. Frequency of water flow to hydropower reservoirs: 50%.
4. Prices of coal for electricity generation: grade-5 slack: VND 405,500/ton; grade-4b slack: VND 442,000/ton (up 27% over the 2008 price).
5. Price of southwestern gas for electricity generation calculated according to the 2009 average crude oil price: USD 60/barrel, equivalent to Singapore market MFO price: USD 47.4/barrel.
6. The 2009 average price of DO (diesel oil) for electricity generation: VND 11,000/liter.
7. The 2009 average price of FO (fuel oil) for electricity generation: VND 8,500/kg.
8. VND/USD exchange rate: VND 17,000/USD.
Article 7. Electricity wholesale prices applicable to power companies
1. Average electricity wholesale prices applicable to power companies
The Electricity Purchase and Trading Company’s average electricity wholesale price applicable to power companies at points of delivery is VND 706.96/kWh, comprising:
a/ The average electricity production cost to the point of delivery (comprising costs of electricity generation, imported electricity and transmission loss): VND 629.05/kWh.
b/ The average expense for regulating the electricity system, administering and operating the electricity market, and support services and branch management: VND 9.25/kWh.
c/ The average cost of electricity transmission to the point of delivery: VND 68.66/kWh (calculated for the output of domestically generated electricity and electricity imported through transmission grids).
2. Before March 31, 2009, Electricity of Vietnam (EVN) shall, based on the price level specified in Clause 1 of this Article, elaborate adjusted electricity wholesale price applicable to each power company and cross compensation among power companies on the principle of ensuring the ratio of profit to own capital for each power company at the level under the approved 2009 electricity pricing scheme for report to the Electricity Regulatory Authority of Vietnam.
When EVN’s determination of adjusted electricity wholesale price applicable to each power company and cross compensation tails to comply with the prescribed principle and match parameters, within 15 days alter receiving EVN’s official notice, the Electricity Regulatory Authority of Vietnam shall request in writing EVN to make justifications and recalculations.
Article 8. Electricity wholesale prices applicable to rural areas
1. Conditions for application
The electricity wholesale price for rural areas is applied to rural electricity retailers that fully meet the conditions specified in Article 4 of this Circular and install general electric meters at transformer stations.
After August 31, 2009, if rural electricity retailers fail to meet the above conditions, provincial-level Industry and Trade Services shall report to provincial-level People’s Committees for revoking their operation permits and adopting plans to stop their operation and transfer the permission for direct electricity sale to rural consumers to power companies.
2. Daily-life electricity wholesale prices applicable to rural areas are as follows:
| No. | A rural household’s average monthly consumption level after a general electric meter | Electricity sale price (VND/kWh) |
| 1 | First 50 kWh | 420 |
| 2 | From the 51st to 100th kWh | 605 |
| 3 | From the 101st to 150th kWh | 795 |
| 4 | From the 151st to 200th kWh | 1,120 |
| 5 | From the 201st to 300th kWh | 1,215 |
| 6 | From the 301st to 400th kWh | 1,305 |
| 7 | From the 401st kWh onward | 1,345 |
The daily-life electricity wholesale price applicable to rural areas means the price of electricity sold at a general electric meter by a power company or authorized EVN-attached unit to rural electricity retailers. The principles for determining the number of electricity consuming households after each general electric meter are detailed at Point b, Clause 1, Section IV of the Appendix to this Circular.
3. The wholesale price of electricity for other purposes is VND 865/kWh.
Article 9. Electricity wholesale prices applicable to condominiums and residential clusters
1. Conditions for application:
Electricity wholesale prices for condominiums and residential clusters are applied to electricity retailers which fully meet the conditions specified in Article 4 of this Circular and install general electric meters at transformer stations or at the shunting connections of low-voltage transmission lines.
After August 31, 2009, if electricity retailers fail to meet the above conditions, provincial-level Industry and Trade Services shall submit to provincial-level People’s Committees for approval plans to stop their operation and transfer the permission for direct electricity sale to consumers to power companies and report to the Electricity Regulatory Authority of Vietnam for revocation of operation permits of violators.
2. Daily-life electricity wholesale prices applicable to condominiums and residential clusters are as follows:
| No. | A household’s average monthly consumption level after a general electric meter | Electricity sale price (VND/kWh) |
| 1 | For cities and towns |
|
| a/ | For transformer stations invested by electricity buyers |
|
|
| First 50 kWh | 515 |
|
| From the 51st to 100th kWh | 745 |
|
| From the 101st to 150th kWh | 975 |
|
| From the 151st to 200th kWh | 1,315 |
|
| From the 201st to 300th kWh | 1,425 |
|
| From the 301st to 400th kWh | 1,530 |
|
| From the 401st kWh onward | 1,575 |
| b/ | For transformer stations invested by electricity sellers |
|
|
| First 50 kWh | 535 |
|
| From the 51st to 100th kWh | 770 |
|
| From the 101st to 150th kWh | 1,010 |
|
| From the 151st to 200th kWh | 1,360 |
|
| From the 201st to 300th kWh | 1,475 |
|
| From the 301st to 400th kWh | 1,585 |
|
| From the 401st kWh onward | 1,630 |
| 2 | For townships and districts |
|
| a/ | For transformer stations invested by electricity buyers |
|
|
| First 50 kWh | 485 |
|
| From the 51st to 100th kWh | 700 |
|
| From the 101st to 150th kWh | 920 |
|
| From the 151st to 200th kWh | 1,225 |
|
| From the 201st to 300th kWh | 1,325 |
|
| From the 301st to 400th kWh | 1,425 |
|
| From the 401st kWh onward | 1,465 |
| b/ | For transformer stations invested by electricity sellers |
|
|
| First 50 kWh | 500 |
|
| From the 51st to 100th kWh | 720 |
|
| From the 101st to 150th kWh | 945 |
|
| From the 151st to 200th kWh | 1,270 |
|
| From the 201st to 300th kWh | 1,375 |
|
| From the 301st to 400th kWh | 1,480 |
|
| From the 401st kWh onward | 1,520 |
The daily-life electricity wholesale price applicable to condominiums and residential clusters means the price of electricity sold at a general electric meter by a power company or authorized unit to retailers of electricity for condominiums and residential clusters. The principles for determining the number of electricity consuming households after each general electric-meter are detailed at Point b, Clause 1, Section V of the Appendix to this Circular.
Daily-life electricity wholesale prices applicable to highrise buildings of new urban centers equal respective progressive retail price levels specified in Article 15 of this Circular deducted by 3%.
3. Electricity wholesale prices for other purposes applicable to condominiums and residential clusters are as follows:
| No. | Area | Electricity sale price (VND/kWh) |
| I | Cities (except highrise buildings of new urban centers), towns, townships, districts (regardless of voltage) | 940 |
| II | Highrise buildings of new urban centers in cities |
|
| 1 | 22 kV or higher | 1,463 |
| 2 | Between 6 kV and under 22 kV | 1,568 |
| 3 | Under 6 kV | 1,639 |
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