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NATIONAL ASSEMBLY
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THE SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
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Law No. 61/2024/QH15
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Hanoi, November 30, 2024
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LAW
ON ELECTRICITY
Pursuant
to the Constitution of the Socialist Republic of Vietnam;
The
National Assembly hereby promulgates the Law on Electricity.
Chapter I
GENERAL PROVISIONS
Article 1. Scope
This Law
provides for electricity development planning and investment in construction of
electricity projects; development of renewable energy power and new energy
power; electricity licenses; competitive electricity market, electricity
trading activities; dispatch and operation of national power system; protection
of electricity works and safety in the field of electricity; responsibilities,
rights and obligations of agencies, organizations and individuals in
electricity activities and electricity use; state management of electricity.
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This Law
applies to agencies, organizations and individuals conducting electricity
activities, using electricity or engaged in other electricity-related
activities in Vietnam.
Article 3. Application of laws
1. Where
regulations on any of the following issues in this Law are different from those
laid down in other laws promulgated before the effective date of this Law,
regulations of this Law shall apply:
a)
Authority to approve investment guidelines of electricity projects as
prescribed in clauses 2, 3 and 4 Article 13 of this Law;
b)
Specific regulations on investment in construction of emergency electricity
projects and works as prescribed in Article 15 of this Law;
c)
Selection of investors in electricity business investment projects as
prescribed in Articles 18 and 19 of this Law;
d)
Regulations on development of offshore wind power as prescribed in Section 2
Chapter III of this Law.
2. Where
a law promulgated after the effective date of this Law contains specific
regulations on investment contradicting regulations of this Law, the former is
required to specify the cases to which its regulations apply and the cases to
which this Law applies.
Article 4. Definitions
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1. “safety
of hydropower works” means any solution for preventing and combating the
impacts of hazardous factors to hinder harmful impacts and ensure safety of
dams, reservoirs, energy routes, hydropower plants and ancillary works in the
process of surveying, designing, constructing, managing, exploiting and
operating hydropower works.
2. “electrical
safety” means any solution for preventing and combating the impacts of
hazardous factors to hinder harmful impacts and ensure safety for persons,
equipment, and works in the process of producing, transmitting, distributing,
and using electricity.
3. “electricity
wholesaling” means the sale of electricity by one electric utility to
another for resale to a third party.
4. “electricity
retailing” means the sale of electricity by one electric utility to
electricity consumers.
5. “avoided
cost tariff” means the prices calculated according to the avoided costs on
the national power system per 01 kWh fed to the national grid by a small
renewable energy power plant.
6. “electricity
price cross-subsidy” means a mechanism for fixing a retail electricity
price for each group of electricity consumers to apply a unified electricity
retail tariff.
7. “voltage
level” means one of the values of nominal voltage used in the power
system, including:
a) Low
voltage which is a nominal voltage up to 01 kV;
b) Medium
voltage which is a nominal voltage above 01 kV and not exceeding 35 kV;
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d) Ultra
high voltage which is a nominal voltage above 220 kV.
8. “avoided
cost” means the cost of generating 01 kWh by generating sets with
the highest cost in the national power system which could have been avoided if
01 kWh was bought from an alternative small hydropower plant.
9. “electricity
work” means a combination of facilities, machinery, equipment and
construction structures in direct service of electricity generation,
electricity transmission, electricity distribution, power system dispatch,
electricity trading and system for protection of electricity works.
10. “electricity
retail tariff structure” means a table of percentages (%) of the average
retail electricity prices intended for calculating the specific retail
electricity price for each group of electricity consumers.
11. “ancillary
service” means any technical service necessary to maintain the stable and
reliable operation of the national power system, including frequency
adjustment, quick start, must-run operation, voltage adjustment, black start
and other related technical services as prescribed by the Minister of Industry
and Trade.
12. “electricity
project” means an investment project as prescribed by law, including a set
of proposals for use of capital use for investment, construction, renovation
and business of electricity works in a specific locality or region and within a
specified period of time. Power source project means a project on investment in
construction of a power plant or electrical grid synchronously connected to the
national power system (if any).
13. “new
energy power” means power produced from one or more of the following
sources:
a)
Hydrogen produced from the power sources specified in points a, b, c and d
clause 14 of this Article (hereinafter referred to as “green hydrogen”);
b)
Ammonia produced from the power sources specified in points a, b, c and d
clause 14 of this Article (hereinafter referred to as “green ammonia”);
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14. “renewable
energy power” means power produced from one or more of the following
primary energy sources:
a) Solar
energy;
b) Win
energy;
c) Ocean
energy, including tides, waves and ocean currents;
d)
Geothermal energy;
d) Energy
obtained from water power, including hydropower;
e)
Biomass energy including biofuels and other forms of energy derived from
plants;
g) Energy
from waste generated from production, business and daily activities, except for
waste generated from production and business processes using fossil fuels and
waste identified as hazardous according to regulations of law on environmental
protection;
h) Other
forms of renewable energy as prescribed by law.
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16. “power
system dispatching” means the commanding and control of the process of
electricity generation, electricity transmission, electricity distribution
within the national power system according to determined technical processes,
regulations and operation method.
17. “regulation
of electricity market transactions” means the management and regulation of
transactions in trading of electricity and ancillary services on the
competitive electricity market.
18. “electricity
regulation” means the impact exerted by the State on electricity activities
and competitive electricity market with a view to supplying electricity safely,
stably and qualitatively, using electricity economically and efficiently and
ensuring fairness, transparency and law compliance.
19. “electric
utility” means an organization or individual carrying out electricity
generation, electricity transmission, electricity distribution, power system
dispatching and operation, regulation of electricity market transactions,
electricity wholesaling and retailing or other relevant activities.
20. “average
retail electricity price” means the retail electricity price being
defined according to the principle of calculating sum of electricity trading
and production cost and average profit level for 01 kWh of commercial
electricity from time to time.
21. “wholesale
electricity price” means the price at which the electricity of an
electric utility is sold to another for resale to the third party.
22. “retail
electricity price” means the price at which the electricity of an electric
utility is sold to electricity consumers.
23. “electricity
prices and electricity-related service prices” means wholesale electricity
prices, retail electricity prices and prices of electricity generation service,
electricity transmission service, ancillary services for power system, power
system dispatch and operation service, electricity market transaction regulation
service and electricity distribution service.
24. “prices
of ancillary services for power system” means the prices which an
electricity generation unit charges for ancillary services for power system.
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26. “price
of power system dispatch and operation service” means the price charged by
a power system dispatch unit to perform the tasks related to power system
dispatch and operation.
27. “price
of electricity market transaction regulation service” means the price
charged by an electricity market transaction regulation unit to perform the
tasks related to competitive electricity market transaction regulation.
28. “price
of electricity distribution service” means the price charged by an
electricity distribution unit to conduct activities related to electricity
distribution.
29. “price
of electricity transmission service” means the price charged by an electricity
transmission unit to conduct activities related to electricity transmission.
30. “national
power system” means a system of electricity generating equipment,
electrical grids and ancillary equipment which are connected and uniformly
controlled nationwide.
31. “energy
storage system” means a set of devices for receiving electricity from power
sources, storing energy and generating electricity.
32. “electricity
activities” means activities of agencies, organizations or individuals in
the fields of electricity development planning, investment in electricity
development, electricity generation, electricity transmission, electricity
distribution, power system dispatch and operation, regulation of competitive
electricity market transactions, electricity wholesaling and retailing and
other relevant activities.
33. “electricity
forward contract” means a written agreement between parties to buy or sell
electricity at a specific future time at an agreed price.
34. “power
purchase agreement (PPA)” means a written agreement between an electricity
buyer and an electricity seller that is intended for the purchase and sale of
electricity.
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36. “electricity
futures contract” means an electricity forward contract whose main terms
are standardized as per regulations of this Law and listed on a central
exchange in the forward electricity market.
37. “electricity
consumer” means an agency, organization or individual that buys electricity
for use and does not resell the electricity bought to another agency,
organization or individual.
38. “large
electricity consumer” means a consumer that uses electricity with large
power and consumption as prescribed by the Minister of Industry and Trade in a
manner that is appropriate to each period of power system development.
39. “electricity
price bracket” means a range between the minimum price and the maximum
price.
40. “wholesale
electricity price bracket” means a range between the minimum wholesale
electricity price and the maximum wholesale electricity price.
41. “electricity
generation price bracket” means the average electricity generation price
bracket over the life cycle of a power plant project which ranges between the
minimum average price and the maximum average price.
42. “inspection
of technical safety of electrical equipment and instruments” means a
technical activity following a certain process in order to evaluate and confirm
the conformity of the electrical equipment and tools in respect of their safety
with the corresponding standards and technical regulations on electrical safety
before putting them into use, during their use and operation.
43. “electrical
grid” means a system of overhead power lines or underground power cables,
transformers and ancillary equipment for electricity transmission, including
transmission grid and distribution grid.
44. “power
plant” means a combination of one or more equipment, machinery and
structures intended for producing electricity.
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46. “long-term
minimum contracted electricity output” means the lowest electricity output
specified in the PPA, electricity forward contract, options contract to buy or
sell electricity or electricity futures contract.
47. “competitive
electricity market” means where participants in the competitive electricity
market compete to buy or sell electricity or provide services through the
national power system to optimize economic efficiency, ensure transparency and
improve the quality of electricity supply.
48. “spot
electricity market” means a market where electricity is bought or sold in
cycles of transactions conducted by the electricity market transaction
regulation unit according to regulations at competitive electricity market
levels.
49. “forward
electricity market” means a market where electricity output specified in
the PPA, electricity forward contract, options contract to buy or sell
electricity or electricity futures contract is bought or sold.
50. “electricity
metering devices” means those used for measuring the power, amount of
electric energy, electric current, voltage, frequency, power factor, including
electricity meters, and accompanying equipment and accessories.
51. “electricity
theft” means an act of illegally taking electricity without mater meters,
tampering with an electricity meter and other electrical equipment related to
electricity metering, deliberately recording or collaborating in recording
electricity meter readings and other acts of deliberately reflecting incorrect
electricity consumption data.
Article 5. State’s policies on electricity development
1. The
State promulgates policies on development and investment in the construction of
the electricity sector to ensure the requirement of being an important
infrastructure industry so as to serve the socio-economic development and
people's life, sustainable development on the basis of optimal exploitation of
all resources, meet the demand for electricity to serve the people's life and
socio-economic development with stable, safe and economic quality, civilized
services, environmental protection, thus contributing to the maintenance of
national defense, security and energy security.
2. The
State holds monopoly in the following activities for the purpose of ensuring
national energy security:
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b)
Investing in the construction and operation of projects on nuclear power
plants, multi-purpose strategic hydropower plants and important transmission grids
with a voltage of 220 kV or more according to a list decided by the Prime
Minister;
c)
Operating transmission grids, except for transmission grids invested in and
built by non-State economic sectors.
3.
Policies on development of electricity in rural areas, ethnic minority areas,
mountainous areas and border areas, on islands and in extremely disadvantaged
areas include:
a)
Prioritizing the allocation of state budget, mobilizing domestic and foreign
resources for investment in developing power sources and electrical grids to
ensure safe, regular and reliable electricity supply to households and serve
socio-economic development, national defense and security in the locality;
b)
Investment and financial incentives and other incentives and support for domestic
and foreign organizations and individuals building power source works and
electrical grids, and supply of commercial electricity to households in a
sustainable and effective manner.
4. All
economic sectors are attracted to participate in investment in the construction
of power source works and electrical grids according to power development
planning (hereinafter referred to as “PDP”), electricity supply network
development schemes in provincial planning, plans to implement PDP, electricity
generation and distribution, electricity wholesaling and retailing. Non-State
economic sectors are permitted to operate electrical grids which they invest
and build in accordance with law.
5.
Electricity projects funded by official development assistance (ODA) capital,
concessional loans from foreign donors of enterprises 100% of charter capital
of which is held by the State (hereinafter referred to as “wholly state-owned
enterprises”) or enterprises 100% of charter capital of which is held by these
enterprises acting as investors on the State's investment priorities list may
receive on-lent loans and the on-lending agencies shall not incur any credit
risk in accordance with the Law on Public Debt Management.
6. A
mechanism is in place to develop electricity projects appropriate to the level
of the competitive electricity market on the basis of ensuring national energy
security and national financial security, guarding the interests of the State
and the People, and ensuring macroeconomic stability from time to time, including:
long-term minimum contracted electricity output and application period,
principles of calculating electricity prices, guarantee for execution of
investment projects, and the duration of the policy in each case.
7. Power
plants using fossil fuels are encouraged to carry out the conversion to
low-emission fuel sources, install carbon capture equipment and systems to
reduce emissions into the environment, protecting the interests of the State,
the legitimate rights and interests of enterprises and employees; to develop
coal-fired power at a reasonable level in the direction of prioritizing
large-capacity and high-efficiency sets using advanced and modern technology;
ensuring compliance with the law on environmental protection.
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a)
Priority is given to the development of gas-fired thermal power using domestic
gas sources and rapid development of gas-fired thermal power using liquefied
natural gas to gradually turn gas-fired power into an important source of
electricity supply, thereby supporting the regulation of the power system;
b) A
mechanism is in place to mobilize thermal power projects using domestic natural
gas to the maximum according to the gas supply capacity and fuel constraints to
maintain the harmony of the overall interests of the country;
c) A
mechanism is in place to develop thermal power plants using liquefied natural
gas as prescribed in clause 6 of this Article; priority is given to the
development of power projects associated with the common use of infrastructure
of liquefied natural gas import terminals and gas pipelines to reduce
electricity production costs.
9.
Regarding policies on development of renewable energy power and new energy
power:
a)
Renewable energy power and new energy power are develop in a manner that is
suitable for the capacity for ensuring the safety power system safety at
reasonable electricity prices, in sync with the development of electrical grids
and the PDP and appropriate to the technological level and human resources, and
meets Vietnam's emission reduction targets from time to time;
b)
Mechanisms for providing incentives and support are tailored for each type of
power source, including small hydropower projects determined in accordance with
law, in accordance with the requirements for socio-economic development from
time to time. Policies on incentives and supports and breakthrough mechanisms
are also tailored for the development offshore wind power; the investment in
projects participating in the competitive electricity market is encouraged.
10.
Regarding policies on nuclear power development:
a)
Nuclear PDP must be contiguous, synchronous and consistent with electricity
development planning to achieve the objective of ensuring electricity supply
security.
b)
Investment in the construction, operation, termination of operation and safety
assurance of nuclear power plants must comply with regulations of the Law on
Atomic Energy and other relevant laws.
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a)
Separate the functions of production, business and service provision from the
functions of state management; separate activities with natural exclusivity and
state monopoly from competitive activities in the power generation line to form
independent service providers, form many power generating units and many
electricity wholesalers and retailers so as to increase the number of
participants and boost the efficiency of the electricity market;
b) Focus
on the core sectors and strengths of state-owned enterprises operating in the
electricity sector; optimize the use of resources and increase business value;
supply electricity to islands, border areas, disadvantaged areas and extremely
disadvantaged areas, and ensure national defense and security.
12.
Regarding policies on electricity prices and electricity-related service
prices:
a) Ensure
reasonable and valid reflection of electricity production and trading expenses
of electric utilities; enable economic sectors to invest in electricity
development with reasonable profits, save energy resources, use forms of
renewable energy and new forms of energy in electricity activities,
contributing to promoting socio-economic development, especially in rural
areas, ethnic minority areas, mountainous areas and border areas, on islands
and in extremely disadvantaged areas with;
b) The
electricity selling price shall comply with the State-regulated market
mechanism in a manner that is suitable for the level of the competitive
electricity market;
c)
Electricity prices shall be set in such a manner as to encourage efficient and
economical use of electricity;
d)
Implement a rational and gradually decreasing electricity retail tariff structure,
progress towards the elimination of the electricity price cross-subsidy among
groups of consumers who do not participate in the competitive retail
electricity market when they is yet to be eligible to participate in or do not
choose to participate in electricity trading on the competitive retail
electricity market;
dd)
Gradually reduce and progress towards the elimination the electricity price
cross-subsidy among consumer groups and regions in a manner that is appropriate
to the level of the competitive electricity market;
e) Retain
the right to self-determine electricity purchasing prices and electricity
selling prices in a manner that does not exceed the electricity price bracket
and electricity retail tariff structure prescribed by the State;
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h) Tailor
an appropriate electricity price mechanism for specific groups of consumers
under the State's guidelines in a way that is suitable for the socio-economic
development situation from time to time.
13.
Regarding State’s subsidies on electricity bills:
a) The
state budget shall provide subsidies on electricity bills for domestic purposes
for poor households and households with social policies according to the
criteria and mechanisms prescribed by the Prime Minister in accordance with the
socio-economic situation from time to time;
b) The
Government shall promulgate a plan to reduce electricity bills in case of
incidents or disasters in accordance with the Law on Civil Defense in order to
stabilize socio-economic development.
Article 6. Responsibility for state management of
electricity
1. The
Government shall perform uniform state management of electricity nationwide.
2. The
Ministry of Industry and Trade shall act as a conduit to assist the Government
in performing uniform state management of electricity.
3.
Ministries and ministerial agencies shall, within their jurisdiction, cooperate
with the Ministry of Industry and Trade in performing state management of
electricity in accordance with this Law and as assigned by the Government.
4.
People’s Committees at all levels shall, within their jurisdiction, perform
state management of electricity in their localities.
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1.
International cooperation in the electric power sector must be consistent with
Vietnam's foreign policies and guidelines; adhere to the principles of peace,
cooperation, friendship and mutual development on the basis of respect for
national independence, sovereignty, territorial integrity, non-interference in
each other's internal affairs, equality and mutual benefit and conform to the
Constitution and laws of Vietnam and treaties to which the Socialist Republic
of Vietnam is a signatory.
2.
International cooperation in the electric power sector shall mainly include:
a)
Promoting international cooperation in technology transfer, research and
development in the electric power sector;
b)
Providing training to improve quality of human resources in the electric power
sector;
c)
Promoting cooperation in financial investment and exchange of information and
data in the electric power sector and participating in international agreements
and treaties in the electric power sector in accordance with law.
Article 8. Application of science and technology and
development of manufacturing industry
in the electric power sector
1. Application
of science and technology in the electric power sector and electricity use is
meant to save and increase the efficiency of energy sources, protect the
environment, protect the protection corridors of electricity works, ensure
electrical safety and safety of hydropower dams and reservoirs.
2.
Important items, equipment and consulting services intended for maintaining
continuous electricity supply and ensuring national energy security must be
produced and supplied domestically at some stages. Encourage and support the
development of technological research, design, manufacturing, installation and
service industries in the electric power sector to meet domestic demand at the
maximum, aiming for export. Prioritize the development of electrical equipment
manufacturing and electrical services industries. Properly fulfil specific
requirements and targets on domestic content in the electric power industry.
Encourage the development of large-scale domestic enterprises having advanced
technology and capability to execute complex projects requiring high technical
requirements in the electric power sector, meeting international quality
standards.
3.
Ministries, ministerial agencies and People's Committees of provinces and
central-affiliated cities (hereinafter referred to as “provincial People's
Committees”) shall, within their jurisdiction, encourage the establishment of
innovation centers in the electric power sector at research and training
institutions, organize the formulation and implementation of national key
science and technology programs for research into, application and development
of energy technology, focusing on research into and manufacturing of energy
equipment and application of forms of renewable energy, new energy and smart
energy, and energy saving; digital transformation, management and operation of
information systems, data and other contents of scientific and technological
applications in the electric sector.
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Article 9. Prohibited acts in electricity activities and
electricity use
1.
Conducting electricity activities without the license as prescribed by this
Law.
2.
Electricity theft.
3. Theft
of electrical means and equipment.
4.
Destroying electrical means, equipment and works.
5. Using
means, equipment, flammable, explosive or corrosive substances and other acts
that cause damage or incidents to electricity works.
6.
Cutting electricity supply in contravention of laws.
7.
Violating regulations on protection of electricity works, electrical safety and
safety of hydropower dams and reservoirs.
8.
Planting trees, carrying out drilling, digging and filling operations,
constructing works, exploiting minerals, anchoring ships, discharging
wastewater, corrosive substances, flying kites and flying objects and other
activities that violate regulations of law on safety corridors of electricity
works.
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10.
Providing inaccurate and opaque information that infringes upon the legitimate
rights and interests of agencies, organizations and individuals conducting
electricity activities and using electricity.
11.
Hindering competent agencies, organizations and individuals from repairing,
renovating and restoring electricity works, inspecting and supervising
electricity activities and use.
12.
Causing troubles or earning illegal profits in electricity activities and use.
Chapter II
POWER DEVELOPMENT PLANNING, ELECTRICITY
SUPPLY NETWORK DEVELOPMENT SCHEMES AND INVESTMENT IN CONSTRUCTION OF
ELECTRICITY PROJECTS
Article 10. Power development planning, electricity supply
network development schemes
1. PDP is
the national sector planning.
2. The
electricity supply network development plan is a content integrated into a
provincial planning.
3. The
formulation, appraisal, approval, announcement, adjustment and implementary
organization of PDP, provincial planning, including contents of the electricity
supply network development scheme must comply with regulations of law on
planning and this Law.
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a) Ensure
sufficient electricity supply to serve the need for socio-economic development
and People's life;
b)
Effectively exploit and use domestic energy resources, ensuring sustainable
development;
c)
Generally optimize factors including power sources, power transmission,
distribution, economical and efficient use of electricity, have an appropriate
roadmap in tandem with the sustainable exploitation and use of natural
resources, environmental protection and economic model transformation, and
ensure national energy security;
d) Make
the energy transition according to national objectives and commitments on the
basis of scientific and technological advances and development policies on
renewable energy and new energy;
dd) Make
sure the electrical grid system is synchronized with power sources, meeting the
load development needs of regions and localities.
5. Based
on the power source capacity and voltage level of the electrical grid, every
competent agency or competent organization shall formulate PDP and electricity
supply network development scheme in the provincial planning. PDP and
electricity supply network development schemes in provincial planning do not
include the following projects:
a) Power
sources which have no impact or minor impact on the national power system;
b) Power
sources which are not connected to or sold to the national power system, except
electricity export or import;
c)
Low-voltage electrical grids;
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6. The
Government shall elaborate clause 5 of this Article.
Article 11. Plan to implement the PDP, plan to implement
the provincial planning covering contents of the electricity supply network
development scheme
1. The
plan to implement PDP must comply with regulations of law on planning and the
following requirements:
a)
Closely follow the objectives and orientations of the planning, concretize the
tasks assigned in the planning;
b) Ensure
that power sources are developed in a balanced manner by regions, progress
towards the balance of supply and demand within the regions; ensure
feasibility, synchronization and flexibility in the development of power
sources and electrical grids in a way that suits the national context and
resources;
c)
Determine the time for putting projects into operation in two phases in the
10-year planning period and the next 05-year projection for the vision period.
2.
Contents of the plan to implement the PDP must satisfy regulations of law on
planning and the list of electricity projects specified in point b clause 2
Article 5 of this Law shall be determined to form as a basis for assigning a
project to a wholly state-owned enterprise or an enterprise 100% of charter
capital of which is held by this enterprise for construction investment.
3. Every
provincial People's Committee shall formulate and promulgate a plan to
implement its provincial planning in accordance with regulations of law on
planning. Such plan shall contain contents of the electricity supply network
development scheme to form a basis for implementing power projects and
identifying electrical grid projects in service of socio-economic development
in the national and public interests invested in by a wholly state-owned
enterprise or an enterprise 100% of charter capital of which is held by this
enterprise.
Article 12. General regulations on investment in
construction of electricity projects
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2. From
time to time and for each type of power source investment project, the
Government shall prescribe a mechanism for ensuring the consumption of
domestically exploited gas; the principle of pass-through of fuel prices to
electricity prices; long-term minimum contracted electricity output.
3. The
Minister of Industry and Trade shall regulate the principles of calculating
electricity prices for execution of electricity projects.
4. The
Government shall regulate criteria for determining electricity projects on the
State's investment priorities list in the electric power sector. Based on the
criteria prescribed by the Government, the Minister of Industry and Trade shall
decide the list of electricity projects on the State's investment priorities
list specified in clause 5 Article 5 of this Law.
Article 13. Guidelines for investment in electricity
projects
1. Except
for emergency electricity projects specified in Article 14 of this Law and
electricity projects specified in clauses 2, 3 and 4 of this Article, the
decision on investment or approval for investment guidelines for electricity
projects subject to decision on investment or approval for investment
guidelines must comply with regulations of the Law on Public Investment, Law on
Public - Private Partnership Investment and Law on Investment.
2. Except
for emergency electrical grid projects specified in Article 14 of this Law, the
approval for investment guidelines for projects on investment in electrical
grid with a voltage of 220 kV or lower passing through at least 02 provinces
subject to approval for investment guidelines under regulations of the Law on
Investment shall be granted as follows:
a) The
People's Committee of the province where the starting point of the transmission
line is located and determined under the name of the electrical grid project in
the PDP or the electricity supply network development scheme in its provincial
planning has the authority to grant approval for investment guidelines;
b)
Applications for and contents of appraisal of request for investment guideline
approval shall comply with regulations of Law on Investment;
c)
Procedures for granting investment guideline approval are the same as those for
granting investment guideline approvals for projects under the authority of
provincial People's Committees under the Law on Investment and shall comply
with regulations on procedures for consulting with relevant localities
specified in points d and dd of this clause;
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dd)
Within 15 days from the date of receipt of a sufficient dossier, the People's
Committee(s) of the remaining province(s) shall give their written opinions on
the dossier on proposal for investment guidelines of the project within the
provincial-level administrative boundaries and send written opinions to the
provincial People's Committee specified in point a of this clause. A written
opinion must state an agreement or a disagreement; in case of disagreement, it
is necessary to explicitly state the reason so as for the investor to complete
the investment guideline proposal dossier;
e) The
investment registration authority shall be determined following the investment
guideline approval granted by the provincial People's Committee specified in
point a of this clause.
3. For
any low-voltage or medium-voltage electrical grid investment project subject to
investment guideline approval by a provincial People's Committee:
a) Based
on the electricity supply network development scheme in the provincial
planning, proposals of electric utilities and investors, the provincial
People's Committee shall approve the list of low-voltage and medium-voltage
electrical grids under the decentralized authority to manage the PDP and
electricity supply network development scheme in the provincial planning;
b) The
decision of the provincial People's Committee specified in point a of this
clause shall replace the written investment guideline approval for each
individual medium-voltage or low-voltage electrical grid investment project and
also serve as the basis for land allocation, land lease or land repurposing.
4. The
Government shall elaborate clauses 2 and 3 of this Article; stipulate cases in
which renewable energy and new energy power business investment projects fall
under the Prime Minister's authority to issue investment guideline approval as
specified in clause 4 Article 31 of the Law on Investment.
Article 14. Emergency electricity projects and works
1.
Emergency electricity projects and works include:
a)
Electricity projects and works newly built or repaired or renovated in order to
promptly overcome consequences of natural disasters, disasters or diseases
under the construction law and other relevant laws;
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c)
Projects and works for construction of electrical grids, which play an
important role in the transmission of power source capacity between regions to
prevent overload of the electrical grid; in an urgent response to the assurance
of national defense and security or to the local socio-economic development;
2. The
Government shall regulate the principles and criteria for determining emergency
electricity projects and works specified in points b and c clause 1 of this
Article on the basis of ensuring the timely satisfaction of the requirements
for handling urgent issues for ensuring electricity supply security.
Article 15. Specific regulations on investment in
construction of emergency electricity projects and works
1.
Emergency electricity projects and works specified in points b and c clause 1
Article 14 of this Law are eligible for certain specific regulations on
construction and investment below:
a) It is
not required to follow the procedures for approval for investment guidelines
under the Law on Investment and approval for forest repurposing but the
principle of minimizing the forest repurposing under the Forestry Law,
especially natural forests must be adhered to when building electricity
projects.
The Prime
Minister’s decision specified in clause 2 of this Article shall replace the
written investment guideline approval as per the Law on Investment and also
serve as the basis for land allocation, land lease and land repurposing. For
emergency electricity projects and works requiring forest repurposing, the
Prime Minister's decision specified in clause 2 of this Article shall serve as
a written investment guideline approval under the Law on Investment and also a
written approval for forest repurposing under the Forestry Law; the Prime
Minister's decision must explicitly state the area of the forest that needs to
be repurposed for project implementation;
b) Those
emergency electricity projects and works are eligible for Government guarantees
under the Law on Public Debt Management; may be granted credit overextensions
according to the Prime Minister’s decision in case the total outstanding debt
from credit extension granted to enterprises and related persons has exceeded
the limit specified in the Law on Credit Institutions; may be exempted from
guarantee for execution of investment projects under the Law on Investment;
c)
Investors in emergency electricity projects and works are not required to
follow procedures for submission to their state ownership representative agency
for approval of contents related to investment projects, plans on capital
raising and mortgage of assets for loans in accordance with the Law on
Management and Use of State Capital invested in Production and Business at
Enterprises;
d)
Investors may decide by themselves all tasks in construction investment
activities, including: assigning organizations and individuals to perform
survey, design and construction tasks and other necessary tasks to serve the
construction of emergency works; deciding the sequence of survey, design and
construction; deciding the supervision of construction and acceptance of
construction works to achieve the progress in construction of emergency works;
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e) After
completing the construction of a work, the investor must inspect and
re-evaluate the quality of the built work, provide warranty, complete the
as-built documentation and archive documents in accordance with the law on
construction and the settlement of the work in accordance with the law.
g) The
mechanism specified under clause 2 Article 12 of this Law may be applied.
2. The
authority to decide emergency electricity projects and works is as follows:
a) The
Prime Minister shall decide to approve the list of emergency electricity
projects, power source works and electrical grids specified in points b and c
clause 1 Article 14 of this Law on the basis of the assessment and proposals of
the Ministry of Industry and Trade or provincial People's Committees under the
decentralized authority to manage planning eligible for specific mechanisms
specified in this Article, except for emergency electricity projects, power
source works and electrical grids using public investment capital or projects
subject to investment guideline approval by the National Assembly under the Law
on Investment;
b) The
Prime Minister shall decide to assign wholly state-owned enterprises or
enterprises 100% of charter capital of which is held by these enterprises to
act as investors in emergency electricity projects, power source works and
electrical grids specified in points b and c clause 1 Article 14 of this Law;
c) The
authority to decide the construction of emergency electricity projects and
works specified in point a clause 1 Article 14 of this Law shall comply with
the law on construction and other relevant laws.
Article 16. Contract dossiers on public-private partnership
(PPP) projects on power plants applying build-operate-transfer (BOT) contracts
A
contract dossier on a PPP project on power plant applying BOT contract
comprises the documents in accordance with the law on PPP Investment and the
following documents:
1. PPA
which is a written agreement between an electricity buyer and an electricity
seller being the project enterprise;
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3.
Domestic fuel supply contract which is a written agreement between a domestic
fuel supplier and a project enterprise (if any);
4. Shared
infrastructure sharing contract which is a written agreement between an
investor or developer of the shared infrastructure and a project enterprise (if
any).
Article 17. Development of electricity in rural areas,
ethnic minority areas, mountainous areas and border areas, on islands and in
extremely disadvantaged areas
1.
Agencies, organizations and individuals are permitted to use public investment
capital, equity, loans, PPP investment capital and other legal sources of
capital as per regulations of law to ensure electricity supply to rural areas,
ethnic minority areas, mountainous areas, border areas, islands and extremely
disadvantaged areas.
2. The
State supports behind-the-meter investment to supply electricity for domestic
purposes to households in rural areas, ethnic minority areas, mountainous areas
and border areas, on islands and in extremely disadvantaged areas, and households
whose houses are damaged by natural disasters, fires and explosions.
3. Upon
making investment in the construction of renewable energy sources,
medium-voltage and low-voltage grids to supply electricity for domestic use by
households, production of goods, socio-economic development and assurance of
national defense and security, investment incentives shall be offered according
to regulations of the Law on Investment. In case surplus electricity is fed
back to the medium or low voltage national grid, the surplus electricity price
shall comply with the Government’s regulations.
4.
Investors in behind-the-meter assets in households as specified in clauses 1
and 2 of this Article shall transfer behind-the-meter assets to households for
management and use on their own terms.
5. The
Government shall elaborate clause 2 of this Article.
Article 18. Selection of investors in electricity business
investment projects
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a)
Investment projects over which the State holds its monopoly as
prescribed in points a and b clause 2 Article 5 of this Law;
b)
Hydropower plant expansion projects and electrical grid renovation or
upgradation projects for which the existing investors owning projects are
approved;
c)
Electricity projects approved by competent authorities on the basis of
investment proposals of wholly state-owned enterprises or enterprises 100% of
charter capital of which is held by these enterprises. The Prime Minister shall
approve the list of electricity projects not subject to investment guideline
approval by the National Assembly and are included in the PDP; provincial
People's Committees shall approve the list of electricity projects in the
provincial planning;
d)
Emergency power projects the investors in which are selected as prescribed in
clause 2 Article 15 of this Law;
dd)
Offshore wind power projects executed as prescribed in clause 2 Article 29 of
this Law;
e) Other
cases as prescribed by the law on investment and the law on land.
2. Except
the cases specified in clause 1 of this Article, cases of selection of
investors through auction of land use rights shall comply with the land law.
3. Except
the cases specified in clause 1 of this Article, cases of bidding for selection
of investors in electricity investment business projects shall comply with
Article 19 of this Law.
Article 19. Bidding for selection of investors in
electricity business investment projects
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2. Bid-winning
electricity price shall be the maximum electricity price as a basis for the
electricity buyer to negotiate the price of the PPA with the bid-winning
investor. The electricity buyer shall negotiate and conclude the PPA with the
bid-winning investor.
3. The
Government shall elaborate the following contents:
a) Cases
where it is required to organize bidding to select investors to implement
electricity business investment projects based on socio-economic development
conditions from time to time;
b) Specific
requirements of electricity business investment projects in the bidding
documents for investor selection;
c) The
negotiation and conclusion of business investment project contracts and PPAs
with bid-winning investors on the basis of safeguarding the interests of the
parties.
Chapter III
DEVELOPMENT OF RENEWABLE ENERGY POWER AND
NEW ENERGY POWER
Section 1. REGULATIONS ON RENEWABLE ENERGY POWER AND NEW
ENERGY POWER
Article 20. General regulations on development of renewable
energy power and new energy power
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a) Comply
with regulations of Vietnamese laws on national defense, security, social order
and safety, community health, environmental protection, response to climate
change, protection of natural resources and cultural heritage, preservation of
historical-cultural sites and scenic landscapes;
b) Use
modern techniques and technologies, comply with national technical regulations
and apply standards in accordance with Vietnamese laws.
2.
Principles of development of renewable energy power and new energy power
include:
a)
Ensuring electricity supply security and power system safety;
b)
Developing renewable energy power and new energy power in regions and
localities that have potentials for and advantages in renewable energy power
and new energy power together with the development of the power system
infrastructure so as to avoid wastefulness and loss in construction investment
due to inability to carry out curtailment in order to effectively exploit power
sources and ensure the reliability of electricity supply; minimizing technical
loss, reducing pressure on power transmission over long distances; satisfying
environmental requirements and suiting socio-economic conditions of areas where
the development takes place;
c)
Synchronizing plans for training and development of human resources
participating in research and activities in the field of renewable energy power
and new energy power, progressing towards technological autonomy at a number of
appropriate stages;
d)
Prioritizing effective exploitation and use of renewable and new energy sources
in order to exploit natural resources in a sustainable and rational manner,
ensure national energy security and serve electricity export;
dd)
Prioritizing the development of large power source projects to form clusters of
renewable energy plants or renewable energy centers so as to promote natural
advantages and develop electrical grid infrastructure in a manner that is
within the capacity for curtailment and satisfies operation requirements of the
national power system of each region or each locality, and the conditions and
technological level from time to time;
e)
Encouraging appropriate development of rooftop solar power, floating solar
power on water surface and irrigation reservoir beds; prioritizing development
on the water surface of existing hydropower reservoir beds, not requiring
investment in new transmission grids;
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3.
Organizations and individuals are encouraged to invest in wind and solar power
projects in combination with investment in energy storage systems or production
of green hydrogen or green ammonia to serve electricity generation and use. For
solar and wind power sources connected to the national power system, the total
generating capacity of solar and wind power plants and the capacity of the
energy storage system must not exceed the capacity of solar and wind power
plants which have been determined in the PDP or the electricity supply network
development scheme in the provincial planning; the installed capacity shall be
decided by the investor in the stage of executing the construction investment
project on the basis of achieving the prescribed capacity ratio of the energy
storage system and ensuring the efficient use of natural resources.
4. Developing
electricity from renewable energy and new energy to create a foundation for
shifting the power structure in the direction of low carbon, achieving the goal
of reducing emissions and ensuring the sustainable development of the power
system.
5. A wind
power project at sea employs all wind turbines which are built in the
territorial waters of Vietnam and located outside the lowest mean water line of
the mainland for multiple years towards the sea. Wind power projects at sea are
classified into the following categories:
a)
Inshore wind power projects which employ all turbines built in the territorial
waters of 06 nautical miles from the lowest mean water line of the mainland for
multiple years towards the sea;
b)
Offshore wind power projects which employ all turbines built outside the
territorial waters of 06 nautical miles from the lowest mean water line of the
mainland for multiple years towards the sea.
6. The
planning for and investment in wind power projects at sea shall be carried out
in the following order of priority:
a)
Projects on production of electricity for supply to the national power system;
b)
Self-produced or self-consumed electricity projects or electricity projects for
production of green hydrogen or green ammonia and projects serving other
domestic demands;
c)
Projects on production of electricity for export and production of green
hydrogen or green ammonia for export.
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8. The
Government shall elaborate the following contents:
a)
Mechanisms for providing incentives and support for the development of energy
storage systems of electricity projects from renewable energy sources
appropriate to the technological level in this field;
b)
Policies on incentives and support for appropriate research and development of
technologies in the field of wind and solar power in Vietnam;
c)
Mechanisms for sharing and providing information and data on monitoring of
parameters of primary energy sources and production of statistics on
electricity output of renewable energy power plants and new energy power
plants, except for self-produced and self-consumed rooftop solar power sources.
Article 21. Baseline surveys of renewable energy power and
new energy power resources
1.
Baseline surveys of renewable energy power and new energy power resources in
the Vietnam’s territory shall cover:
a) Solar,
wind and geothermal power resources;
b) Wave
power resources, tidal power resources and other forms of power resources from
ocean energy;
c)
Electricity resources from domestic and urban solid waste;
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dd)
Electricity resources from waste from production and business processes other
than those specified in point c of this clause;
e)
Hydropower resources.
2.
Responsibility for conducting baseline surveys of renewable energy power and
new energy power resources is provided for as follows:
a)
Authority and responsibility for conducting baseline surveys of renewable
energy power and new energy power resources in the territorial waters of
Vietnam shall comply with regulations of law of the sea and law on natural
resources and environment of sea and islands;
b)
Authority and responsibility for conducting baseline surveys of hydropower
resources shall comply with regulations of law at water resources;
c) Except
the case specified in point d of this clause, provincial People's Committees
shall conduct baseline surveys of renewable energy power and new energy power
resources on the mainland and islands within the scope of administrative
boundary management;
d) The
Ministry of Natural Resources and Environment shall assign wholly state-owned
enterprises to conduct and public service providers having functions of
conducting baseline surveys of natural resources and environment of sea and
island to preside over conducting baselines surveys in certain sea areas within
Vietnam’s territorial waters.
3. The
State encourages and mobilizes legal financial resources and scientific and
technical contributions from organizations and individuals to serve baseline
surveys.
4. The
information and data specified in clause 1 of this Article shall serve as
inputs so as for authorities organizing planning formulation and planning
consultancies to formulate PDP and provincial planning. In case an area is yet
to have the information and data specified in this clause, the authority
organizing planning formulation shall collect reliable and appropriate data to
perform tasks as prescribed by law. The Ministry of Natural Resources and
Environment shall aggregate information and data nationwide as prescribed in
clause 1 of this Article.
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6. Costs
of conducting baseline surveys as specified in clause 1 of this Article shall
be covered by:
a) State
budget;
b)
Funding provided by wholly state-owned enterprises for covering these costs as
prescribed by law, derived from their funding for production and business
expenses and other lawful funding sources.;
c) Amounts
voluntarily donated from organizations and individuals.
7. The
Minister of Natural Resources and Environment shall elaborate the scope of
baseline surveys as specified in clause 1 of this Article, except for the tasks
performed according to regulations of law on water resources and law on natural
resources and environment of sea and islands.
Article 22. Development of self-produced and self-consumed
electricity from renewable energy sources and new energy sources
1.
Self-produced and self-consumed power sources may be connected to the national
power system, and the connection must comply with regulations of the
electricity law; it is permitted to sell surplus electricity output as per
laws; to use land for multi-purpose energy and public lighting works as per the
land law.
2. Based
on technical capability, economic conditions and state budget capacity from
time to time, the Prime Minister and provincial People's Councils shall
promulgate policies to support households in installing electricity for self-production
and self-consumption as follows:
a)
Provide financial support for investment in the installation of rooftop solar
power and energy storage systems;
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3. The
Government shall elaborate the following contents:
a) The
production capacity and electricity suitable for the electricity load and
development conditions of the power system;
b)
Installation of energy storage systems in combination with investment in
self-produced and self-consumed power sources;
c)
Procedures for development of self-produced and self-consumed power sources;
d)
Mechanisms for purchase and sale prices for surplus electricity output;
dd)
Responsibilities of relevant organizations and individuals when developing
self-produced and self-consumed power sources.
Article 23. Development of new energy power
1. New
energy power project means a clean energy production project which is eligible
for the State's tax and investment credit policies and credit in accordance
with relevant laws.
2. Based
on the requirements for ensuring electricity supply security, scientific and
technological progress, and socio-economic development conditions from time to
time, the Government shall regulate the conditions and time limits for
application of the following mechanisms and policies for new energy power
projects:
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b)
Exemption or reduction of land levy or land rent;
c)
Minimum long-term contracted electricity output for projects feeding
electricity back to the national power system on the basis of protecting the
interests of the State and the People, and ensuring the safety of the power
system from time to time.
Article 24. Renovation, repair and replacement of equipment
of renewable energy and new energy power plants
1. During
the period of operating a power plant according to the approved design in
accordance with operation duration of a renewable energy power or new energy
power project, such power plant may be renovated, repaired or replaced with
equipment whose specifications are different from its current operating
specification to ensure safe and efficient operation in compliance with the
provisions of laws without leading to an increase in the area of land or sea
area used.
2. The
capacity of electricity of the projects in clause 1 of this Article fed back to
the national power system must not exceed the capacity stated in the following
legal documents of the projects:
a) The
written investment guideline decision or approval or investment registration
certificate;
b)
Electricity license.
Article 25. Decommissioning of works of renewable energy
and new energy power projects
1. A work
of a renewable energy power or new energy power project must be decommissioned
after termination of the project in the following cases:
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b) When
the operation duration expires without any extension granted as per the law on
construction;
c) When
there is any difference in the duration specified in points a and b of this
clause, the decommissioning after termination shall be carried out on a first
come, first served basis.
2. The
decommissioning of a solar or wind power plant after its shutdown is regulated
as follows:
a) The
owner of the solar or wind power plant must decommission its plant as required
above; all decommission costs shall be borne by the owner;
b) The
decommissioning, recovery, treatment and management of wastes, materials and
scraps must comply with the law on environmental protection and other relevant
laws, and meet the requirements for restoration of the premises and environment
after the decommissioning;
c) From
the time of termination as specified in clause 1 of this Article, the owner
shall complete the decommissioning within the time limit prescribed by the
Government.
3. For
cases other than those specified in clauses 1 and 2 of this Article, the
decommissioning of works of new and renewable energy power projects must comply
with other relevant regulations of law.
Section 2. REGULATIONS ON DEVELOPMENT OF OFFSHORE WIND
POWER
Article 26. General regulations
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a)
Organizations and individuals implementing and participating in the
implementation of offshore wind power projects must comply with regulations of
laws on assurance of national defense and security;
b) The
production and use of equipment and the creation, transmission, collection,
processing, storage and exchange of information and data outside the border
must comply with laws.
2. The
implementation of offshore wind power projects must comply with this Law and
Vietnamese laws on maritime safety and safety of equipment and works and
conform to treaties to which the Socialist Republic of Vietnam is a signatory.
3.
Offshore wind power projects are entitled to the following mechanisms and
policies provided that the conditions and deadlines prescribed by the
Government are met:
a)
Minimum long-term contracted electricity output for projects feeding
electricity back to the national power system;
b)
Exemption or reduction of sea area levy;
c)
Exemption or reduction of land levy or land rent.
4. In
addition to the mechanisms and policies specified in clause 3 of this Article,
wholly state-owned enterprises may be exempt from providing guarantees for
investment project execution under the investment law; may be considered to
have overextensions for a customer and related persons granted by the Prime
Minister to their offshore wind power projects in accordance with the Law on
Credit Institutions.
5. Based
on socio-economic development conditions, development objectives and investment
attraction in each period and the level of the competitive electricity market,
and in order to ensure electricity supply security, the Government shall
elaborate following contents:
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b)
Conditions for implementation and participation in the implementation of
offshore wind power projects applicable to organizations being foreign
investors or domestic investors, including the ownership ratio of shares and
stakes in offshore wind power projects;
c) The
time of termination of the mechanisms and policies specified in clause 3 of
this Article.
6.
Offshore wind power projects are identified as construction investment projects
and subject to the following regulations:
a) The
survey of offshore wind power projects shall be subject to standards, technical
regulations, economic-technical norms, and unit prices according to
international and foreign standards in case they have not yet been promulgated
on a national basis;
b)
Offshore wind power works shall be subject to standards and technical
regulations according to international and foreign standards in case they have
not yet been promulgated on a national basis.
7. The
Government shall prescribe a mechanism for cooperation between Ministries,
ministerial agencies and People's Committees of coastal provinces and other
relevant agencies in the management of offshore wind power projects and works.
8. The
transfer of projects, shares and stakes in offshore wind projects must comply
with regulations set out in clause 1 of this Article and other relevant
regulations of laws. The Government shall elaborate this clause.
Article 27. Survey of offshore wind power projects
1. The
survey of offshore wind power projects shall comply with regulations of law of
the sea, law on natural resources, environment of sea and islands and law on
construction, and conform to treaties to which the Socialist Republic of
Vietnam is a signatory and international practices.
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a) The
Prime Minister shall assign wholly state-owned enterprise to conduct surveys;
b) Based
on the socio-economic development conditions in each period, the Government
shall regulate the selection of units surveying offshore wind power projects,
except for the regulations set out in point a of this clause.
3. The
survey costs of enterprises specified in point a clause 2 of this Article shall
be handled as follows:
a) Survey
costs in the case specified in point a clause 2 of this Article shall be
covered by a wholly state-owned enterprise; this enterprise may contribute
capital to invest in projects in the areas in which the Prime Minister assign
it to conduct surveys;
b) In
case of failure to apply the regulations set forth in point a of this clause,
the investor selected to execute a project shall reimburse the survey costs to
the enterprise mentioned in point a clause 2 of this Article.
4. The
management, exploitation and use of samples, documents, information, data and
results of surveys of offshore wind power projects must comply with the
following regulations:
a) State
agencies and enterprises shall preside over surveying and managing samples,
documents, information, data and results of surveys of offshore wind power
projects conducted by them; other organizations in charge of conducting surveys
must submit approved samples, documents, information, data and results of
surveys of offshore wind power projects to authorities in charge of state
management of natural resources and environment of sea and islands for
management;
b)
Organizations and individuals that access, consult, exploit and use samples,
documents, information, data and results of surveys of offshore wind power
projects must keep the information confidential in accordance with laws and the
agreement between the parties.
5. The
Government shall elaborate clause 4 of this Article and survey contents,
mechanism for handling survey costs, conditions and capacity of survey units;
regulate the delegation of responsibilities to prescribe economic-technical
norms, survey unit prices, verification of survey results, surveyed area and
use of sea areas, payment of costs of preparation of pre-feasibility study
reports on project construction investment.
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1.
Investors shall prepare applications for approval of investment guidelines of
an offshore wind power project as follows:
a) A
wholly state-owned enterprise shall prepare an application for approval of both
investment guidelines and investor or prepare an application for investment
guideline approval for bidding for investor selection;
b) The
investor conducting survey as prescribed in point b clause 2 Article 27 of this
Law shall prepare an application for approval of investment guidelines for
investor selection in case the surveyed area and the scale of the project are
consistent with the PDP.
2.
Contents of the application for approval of both investment guidelines and
investor or application for approval of or decision on investment guidelines of
an offshore wind power project are specified under the Law on Investment or the
Law on Public Investment or the Law on Public-Private Partnership Investment
and include the following:
a)
Expected location, coordinates and area of the sea area to be used instead of
documents determining the right to use the location for execution of the
investment project;
b)
Expected duration of use of the sea area.
3. When
appraising investment guidelines as per the law on investment, the law on
public investment, and the law on public-private partnership investment, the
agency presiding over appraisal of an offshore wind power project must consult
the following agencies:
a) The
Ministry of National defense, the Ministry of Public Security, the Ministry of
Foreign Affairs, the Ministry of Natural Resources and Environment, the
Ministry of Transport and other Ministries and central authorities as assigned
by the Government;
b)
People's Committees of coastal provinces in areas where the offshore wind power
project is executed.
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Article 29. Selecting investors in offshore wind power
projects
1.
Investors in offshore wind power projects shall be selected as follows:
a)
Regarding public investment projects, the law on public investment shall be
complied with;
b)
Regarding PPP investment projects, the law on PPP investment shall be complied
with;
c)
Regarding business investment projects, the law on investment shall be complied
with.
2. Except
for projects subject to investment policy approval by the National Assembly,
the Prime Minister shall approve both investment guidelines and investors in
the following offshore wind power business investment projects:
a)
Projects that are not subject to bidding for investor selection due to defense
and security reasons according to the opinions of the Ministry of National
Defense or the Ministry of Public Security;
b)
Projects granted approval for both investment guidelines and investors as
prescribed in point a clause 1 Article 28 of this Law.
3. Apart
from the projects specified in clause 2 of this Article, the selection of
investors for execution of offshore wind power business investment projects
feeding electricity back to the national power system must comply with this Law
and law on bidding. The ceiling electricity price in the bidding documents must
not be higher than the maximum price of the electricity generation price
bracket issued by the Ministry of Industry and Trade. The bid-winning
electricity price for selecting an investor shall be the maximum electricity
price as a basis for the electricity buyer to negotiate with the bid-winning
investor. The bidding documents shall be prepared in accordance with laws and
the following documents and contents:
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b)
Mechanisms and policies specified in clause 3 Article 26 of this Law.
4. Based
on socio-economic development conditions, development objectives and investment
attraction in each period and conditions for development of the electricity
market, and in order to ensure electricity supply security, the Government
shall elaborate following contents:
a)
Conditions to be satisfied by investors to participate in bidding;
b) The
selection of investors for execution of offshore wind power projects in an
effort to achieve the development objectives according to the planning and the
demand for attracting investment to this field;
c) The
negotiation and conclusion of business investment project contracts and PPAs
with bid-winning investors as specified in clause 3 of this Article.
Chapter IV
ISSUANCE OF ELECTRICITY LICENSES
Article 30. Principles of issuing electricity licenses
1. The
following fields of electricity activities are subject to issuance of the
electricity license: electricity generation, electricity transmission,
electricity distribution, electricity wholesaling and electricity retailing.
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3. The
electricity license shall not be issued at the investment stage. The investment
in the field of electricity shall be made as prescribed by the law on
investment.
4. The
electricity license shall be issued to an organization so as for it to perform
one or more electricity activities.
5. The
electricity license in the field of electricity generation shall be issued to
each organization owning a power plant by work item or the entire work.
6. The
electricity license in the field of electricity transmission shall be issued by
the scope of management and operation of each specific transmission grid.
7. The
electricity license in the field of electricity distribution shall be issued by
the scope of management and operation of each specific distribution grid.
8. The
electricity license in the field of electricity wholesaling shall be issued by
the specific scope of electricity sale.
9. The
electricity license in the field of electricity retailing shall be issued by
the specific scope of electricity sale, except for the scope covered by the
license issued by the competent authority to another unit. When going through
the stage of operating the competitive retail electricity market, the electricity
license in the field of electricity retailing shall be issued to every
organization participating in the retail electricity market within the scope of
the retail electricity market.
10. Prior
to the stage of operating the competitive retail electricity market, the
electricity license in the field of electricity retailing shall be issued
together with the electricity license in the field of electricity generation or
electricity distribution.
11. The
electricity license may be issued to one or more organizations participating in
the same field in compliance with this Law, Law on Investment, Law on
Enterprises and other relevant regulations of law.
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1. An
organization will be issued with the electricity license if it fully satisfies
the following conditions:
a) It is
lawfully established as prescribed by law;
b) It has
technical managers, business managers and operators that meet the requirements
for quantity and qualifications.
2. In the
field of electricity generation, electricity transmission or electricity
distribution, an organization will be issued with the electricity license if it
fully satisfies the conditions set out in clause 1 of this Article and the
following conditions:
a) It has
electricity generation, transmission or distribution work items or works which
conform to the PDP and electricity supply network development scheme in the
provincial planning, plan to implement PDP, plan to implement provincial
planning including contents of the electricity supply network development
scheme and adjustment decisions (if any); such work items or works are
constructed and installed according to the approved design and meet the
conditions for putting work items or works into operation;
b) It has
projects or works for power generation, transmission or distribution which are
built and installed in compliance with regulations of law of the sea, law on
land, law on fire prevention and fighting, and rescue, law on environmental
protection and other relevant regulations of law;
c) It has
documents on dam and reservoir safety management according to regulations of
law regarding the field of hydropower plant power generation.
3. In the
field of electricity wholesaling or retailing, an organization will be issued
with the electricity license if it fully satisfies the conditions set out in
clause 1 of this Article and formulates an appropriate plan for electricity
wholesaling or retailing.
4. The
Government shall elaborate conditions applicable to fields subject to issuance
of the electricity license.
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1. A new
electricity license shall be issued in the following cases:
a)
Issuance of the first license to a work item or entire work in the field of
electricity generation;
b)
Issuance of the first license to a specific scope in the field of electricity
transmission, distribution, wholesaling or retailing;
c)
Issuance of a new electricity license in case of change of the scope of
operation, main specifications of an electricity work or technology used in
electricity activities specified in the issued license.
2. A
revised electricity license shall be issued in the following cases:
a) At the
request of the license holder when there is a change to any of the contents of
the electricity license specified in clause 1 Article 34 of this Law or any
activity specified in clause 2 Article 34 of this Law are removed;
b) At the
request of a competent authority in case it is needed to protect the national
defense or national security interests, socio - economic interests or public
interests;
c) There
is any error in the information written on the issued license.
3. An
electricity license shall be re-issued in the following cases:
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b) The
issued license is expiring in 06 months or less or is expired and the license
holder makes a request. In this case, contents of the license specified in
clauses 2, 3 and 4 Article 34 of this Law are the same as those of the issued
license;
c) The
case prescribed in clause 2 Article 36 of this Law.
4. The
electricity license may be extended at the request of the license holder if the
interval between its expiry date and the date of transfer of any asset or
electricity work or the date of terminating the project does not exceed 12
months. The license may be extended once and the expiry date of the extended
license must not be later than the date of transfer of the asset or electricity
work or the date of terminating the project.
5. The
Government shall elaborate applications and procedures for issuance of the
electricity license.
Article 33. Exemption from electricity license exemption
1. Electricity license exemptions:
a) Any
organization invests in construction of facilities generating electricity for
domestic consumption and does not sell electricity to other organizations and
individuals, and the installed capacity smaller than the capacity prescribed by
the Government;
b) Any
organization generates electricity with an installed capacity smaller than the
capacity prescribed by the Government;
c) Any
organization trading in electricity in rural areas or mountainous areas or on
islands buys electricity with a capacity smaller than the capacity prescribed
by the Government from the distribution grid to sell it directly to electricity
consumers in rural areas or mountainous areas or on islands;
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dd)
National power system dispatch units and electricity market transaction
regulation units;
e)
Emergency electricity work items, emergency works for construction of power
sources and emergency electrical grids specified in Article 14 of this Law are
exempt from the electricity license within 06 months from the date of being put
into operation;
g) Other
electricity activities not covered by clause 1 Article 30 of this Law.
2. The
organizations exempt from the electricity license specified in clause 1 Article
34 of this Law must comply with procedures and technical regulations on
management and operation, regulation on electricity prices, technical and
safety conditions and fulfill the obligations by electricity activities
specified in this Law.
3.
Provincial People’s Committees shall manage and inspect organizations
conducting electricity activities in their provinces as specified in clauses 1
and 2 of this Article.
4. The
Government shall regulate specific capacity at which the electricity license is
exempted as specified in clause 1 of this Article.
Article 34. Contents of an electricity license
1. Name
and head office address of the license holder.
2.
Electricity activities.
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4. Main
specifications of the electricity work or technology used in electricity
activities with regard to the fields of electricity generation, electricity
transmission and electricity distribution.
5.
Validity period of the electricity license.
6. Rights
and obligations of the license holder.
Article 35. Validity period of electricity licenses
1. The
validity period of an electricity license must not exceed the operation
duration of a project or work for electricity transmission or electricity
distribution.
2. The
Government shall elaborate validity period of the electricity license by each
activity and in each case of issuance of the electricity license according to
regulations of this Law.
Article 36. Revocation of electricity licenses
1. An
organization shall have its electricity license revoked in the following cases:
a) It
wishes to terminate an electricity license or transfer the licensed electricity
license to another organization;
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c) It
operates against the electricity activity or scope written on the electricity
license;
d) It
leases out or lends out the license for conduct of any electricity activity;
arbitrarily modifies any content of the license;
dd) It
forges the documents in the application for issuance of electricity license;
e) It
fails to abide by the decision on imposition of penalties for administrative
violations issued by the competent authority when violating regulations on
electricity licenses and fails to take corrective actions within the time limit
required by the competent authority.
2. Any
organization having its electricity license revoked as prescribed in points b,
c, d, dd and e clause 1 of this Article is entitled to apply for re-issuance of
the electricity license after fulfilling the responsibilities and obligations
as prescribed by law.
3. The
Government shall elaborate this Article, and applications and procedures for
revocation of the electricity license.
Article 37. Authority to issue, revise, re-issue, extend
and revoke electricity licenses
1. The
Ministry of Industry and Trade shall issue electricity licenses in the fields
of electricity generation, electricity transmission, electricity distribution,
electricity wholesaling and electricity retailing, except the regulations in
clause 2 of this Article.
2.
Provincial People’s Committees shall issue electricity licenses in the fields
of electricity generation, electricity distribution, electricity wholesaling
and electricity retailing within their provinces according to the Government's regulations.
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4. The
licensing authority reserves the right to revise, re-issue, extend and revoke
electricity licenses.
5. Based
on socio-economic development conditions and state management requirements from
time to time, the Government shall elaborate clauses 1 and 2 of this Article on
the authority to issue, revise, re-issue, extend and revoke electricity
licenses by capacity, voltage level and scope of each electricity activity.
Chapter V
COMPETITIVE ELECTRICITY MARKET AND
ELECTRICITY TRADING
Section 1. COMPETITIVE ELECTRICITY MARKET
Article 38. Principles of operation
1. Ensure
publicity, transparency, equality, fair competition, and non-discrimination
among participants in the competitive electricity market; protect legitimate
rights and interests of electric utilities and electricity consumers.
2.
Respect and protect the rights to freely choose partners and transaction forms
of electricity traders on the competitive electricity market appropriate to the
level of the competitive electricity market.
3. The
State regulates the operation of the competitive electricity market in order to
facilitate sustainable development of the power system and satisfaction of the
requirements for safe, stable and efficient supply of electricity.
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1. The
competitive electricity market is developed at the following levels:
a)
Competitive electricity generation market;
b) Competitive wholesale electricity market;
c) Competitive
retail electricity market.
2.
Conditions to be fulfilled before operating the competitive electricity market
at levels include:
a)
Formulating and perfecting legislative documents;
b)
Restructuring the electric power sector;
c)
Building and completing the infrastructure of the power system and electricity
market;
d)
Reforming the electricity price mechanism, gradually reducing and progressing
towards the elimination of cross-subsidy among consumer groups and regions.
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Article 40. Participants in the competitive electricity
market at levels
1.
Participants in the competitive electricity market comprise:
a)
Electricity generation units;
b)
Electricity transmission units.
c)
Electricity distribution units.
d)
Electricity wholesalers;
dd)
Electricity retailers;
e)
National power system dispatch units;
g)
Electricity market transaction regulation units
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2. The
Minister of Industry and Trade shall elaborate the participation by the
participants specified in clause 1 of this Article in a manner that is suitable
for levels of the competitive electricity market.
Article 41. Electricity trading on the competitive
electricity market at levels
1.
Electricity traders on the competitive electricity market comprise:
a)
Electricity generation units;
b)
Electricity wholesalers;
c)
Electricity retailers;
d)
Electricity consumers.
2. The
electricity trading on the electricity market shall be effected in the
following forms:
a) Under
a contract between an electricity seller and an electricity buyer;
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c) Under
an electricity forward contract, options contract to buy or sell electricity or
electricity futures contract between an electricity seller and an electricity
buyer.
3. Spot
electricity prices shall be formed according to each transaction cycle of the
competitive electricity market and announced by the electricity market
regulation unit.
Article 42. Transactions and regulation of transactions on
competitive electricity market at levels
1.
Transactions and regulation of transactions on the competitive electricity
market include:
a) Fully
and reliably predicting the electricity supply and demand and formulating an
electricity market operation plan;
b) Spot
electricity trading on the electricity market;
c)
Offering prices and determining market prices;
d)
Providing ancillary services and prices of ancillary services appropriate to
each level of the competitive electricity market;
dd)
Preparing invoices and making payment between the traders specified in clause 1
Article 41 of this Law and ancillary service providers;
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g)
Providing transaction services and payment services for the amount of electricity
and capacity traded under a spot contract and ancillary services;
h)
Receiving and handling propositions related to transactions in electricity
trading on the electricity market in order to ensure the stability and
efficiency and prevent unfair competition practices;
i)
Controlling the operation of the electricity market;
k)
Reporting transactions in the electricity trading on the electricity market.
2. The
Minister of Industry and Trade shall elaborate clause 1 of this Article in a
manner that is suitable for each level of the competitive electricity market.
Article 43. Suspending and resuming operation of the spot
electricity market in the competitive electricity market at levels
1. The
operation of the spot electricity market in the competitive electricity market
at levels shall be suspended in any of the following cases:
a) An
emergency situation which is a disaster or natural disaster arises or national
defense and security protection is required;
b) The
power system operates in extreme emergency mode, thereby failing to ensure
stable, safe and continuous operation of the power system and the electricity
market;
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2. The
operation of the spot electricity market in the competitive electricity market
at levels shall be resumed as the causes of suspension specified in clause 1 of
this Article are eliminated.
3. The
Minister of Industry and Trade shall elaborate this Article.
Section 2. POWER PURCHASE AGREEMENTS AND POWER SERVICE
SUPPLY AGREEMENTS
Article 44. Power purchase agreements and power service
supply agreements
1. A PPA
or power service supply agreement must be established in the form of a physical
document or a data message having the same validity as a document in accordance
with law.
2. A PPA
between an electricity generation unit and an electricity buyer, except for a
power plant invested in the form of PPP; electricity wholesale agreement or
contract for provision of ancillary services for the power system must contain
the following main contents:
a)
Information of the parties to the contract, including: name, address, phone
number, other contact methods (if any);
b) Price
of the PPA; wholesale electricity prices; prices of ancillary services for the
power system;
c)
Contracted electricity output (if any);
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dd)
Rights and obligations of the parties;
e)
Language used: Vietnamese. In case the electricity seller has a foreign
investor(s), the electricity seller and the electricity buyer may agree to
employ another contract written in English language;
g) Other
contents agreed upon by the two parties.
3. A PPA
serving domestic purposes must primarily contain:
a)
Information of the parties to the contract, including: name, address, phone
number, other contact methods (if any);
b) Service standards and quality, address of electricity use;
c) Retail
electricity price, payment methods and deadline;
d) Rights
and obligations of the parties;
dd)
Electricity buyer's responsibility for protecting information;
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g) Force
majeure events pursuant to the civil law;
h)
Methods for dispute settlement;
i) Time
of agreement conclusion, term of the agreement;
k)
Penalty clauses;
l) Other
contents agreed upon by the two parties.
4. A PPA
serving non-domestic purposes shall contain the contents agreed upon by the
parties. The electricity buyer shall ensure power quality as prescribed in
Article 57 of this Law. In case an electricity consumer has a large monthly
average electricity consumption, they must furnish performance security as
agreed upon by the parties.
5. The
Minister of Industry and Trade shall elaborate clause 2 of this Article in a
manner that is suitable for each level of the competitive electricity market.
6. The
Government shall elaborate the performance security and assurance of power
quality specified in clause 4 of this Article and regulate the conditions for
concluding PPAs serving domestic purposes.
Article 45. Electricity forward contracts, options
contracts to buy or sell electricity, electricity futures contracts
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a) The
contracted electricity output and electricity purchase and sale price in the
electricity forward contract to be determined on the basis of negotiation and
agreement between the electricity buyer and the electricity seller;
b) The
reference price in the electricity forward contract which is the spot
electricity market price calculated and announced in accordance with the
regulations on operation of the competitive electricity market;
c) The
electricity buyer or the electricity seller are obliged to pay the difference
between the electricity buying price and the reference price in the electricity
forward contract with regard to the committed electricity output.
2. Main
contents of an options contract to buy or sell electricity:
a) The
option in the options contract to buy or sell electricity which may be the
option to buy or sell, which is determined on the basis of the agreement
between the option buyer and the option seller;
b) The
contracted electricity output, electricity price and validity period of the
options contracts to buy or sell electricity to be determined on the basis of
negotiation and agreement between the option buyer and the option seller;
c) The
option buyer may choose whether to exercise the option or not within the
validity period of the contract;
d) The
option seller is obliged to sell the electricity output at the contracted price
when the buyer exercises the option to buy or buys the electricity output at
the contracted price when the buyer exercises the option to sell;
dd) The
option buying price is determined on the basis of supply and demand for the
options contracts to buy or sell electricity on the forward electricity market.
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4.
Value-added tax mechanism applicable to transactions of electricity forward
contracts, options contracts to buy or sell electricity and electricity futures
contracts must comply with the law on value-added tax.
5. The
Minister of Industry and Trade shall elaborate clauses 1 and 2 of this Article.
6. The
Government shall regulate the conditions and roadmap for forming and developing
the competitive electricity market, mechanism for operation of the forward
electricity market in conformity with the requirements for assurance of
electricity supply security, levels of the competitive electricity market and
other relevant regulations of law.
Article 46. Trading of electricity with foreign countries
1. The
trading of electricity with a foreign country includes electricity trading
activities with a foreign country through the national power system or through
the direct connection which bypasses the national power system. The trading of
electricity with a foreign country must ensure national energy security and
protect interests of the State and the People and the interests of electricity
consumers and must conform to the strategy for trading of electricity with
foreign countries and PDP approved.
2. The
connection of the electrical grid with a foreign country through the national
power system must meet the following requirements:
a) Ensure
security, safety, reliability and stability during operation of the national
power system;
b) Ensure
the economic-technical optimization of the power system, conform to standards,
technical regulations, management and operation processes of the national power
system;
c)
Projects and works connecting the electrical grid with the foreign country in
land border areas must not change border identification signs or affect
national border markers.
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4. The
direct connection of electrical grid with a foreign country which bypasses the
national power system shall be made with the agreement of the parties to the
power grid connection.
5.
Electricity import prices determined at Vietnam's shall be agreed upon by the
electricity buyer and the electricity seller in line with the electricity
import price bracket promulgated by the Minister of Industry and Trade, aiming
at minimizing the cost of electricity buying.
6. Prices
of export of electricity to a foreign country shall be agreed upon by the
electricity seller and the electricity buyer by way of adhering to the
following principles:
a) The
regulations specified in clause 1 of this Article are complied with;
b) In
case the export of electricity bypasses the national power system, the
electricity export price must not be lower than the maximum price of the
domestic electricity generation price bracket corresponding to the type of
electricity generation promulgated by the Minister of Industry and Trade;
c) In
case of exporting electricity to foreign countries through the national power
system, the electricity export price shall rely on the retail electricity price
specified in clause 1 Article 50 of this Law and must not be lower than the
maximum price of the price bracket of the average domestic retail electricity
price.
7. Based
on the demands for socio-economic development from time to time, the Prime Minister
shall decide the strategy for trading of electricity with foreign countries.
8. The
Minister of Industry and Trade shall approve guidelines for trading of
electricity with foreign countries in conformity with the strategy for trading
of electricity with foreign countries, PDP and plan to implement the planning
approved; regulate applications and procedures for formulation and approval of
electricity import price brackets, methods of formulating electricity import
price brackets applicable to specific countries, dossiers and procedures for
trading of electricity with foreign countries.
Article 47. Direct electricity trading between large
electricity consumers and electricity generation units
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a)
Trading of electricity through a separate connected electrical grid;
b)
Trading of electricity through the national grid.
2. The
direct trading of electricity between large electricity users and electricity
generation units must adhere to the following principles:
a) Comply
with regulations of laws on planning and investment, regulations on issuance of
electricity licenses, electricity trading activities and other relevant
regulations of law;
b) Be
suitable for levels of the competitive electricity market.
3. The
Government shall regulate the mechanism for direct trading of electricity
between large electricity users and electricity generation units; regulate
dossiers, procedures and responsibilities of relevant parties upon
participation in the mechanism for direct trading of electricity between large
electricity users and electricity generation units.
Article 48. Payment of electricity bills under PPAs with
electricity consumers
1.
Electricity bills under a PPA with an electricity consumer serving domestic
purposes shall be paid in accordance with the following regulations:
a)
Electricity bills shall paid using the method agreed upon by the two parties
under the PPA; if the electricity buyer delays paying electricity bills, they
must pay a late payment interest to the electricity seller in proportion to the
period of late payment;
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c) If the
electricity seller collects electricity bill overpayment, they must refund the
excess to the electricity buyer, including the interest on such overpayment or
agree with the electricity buyer to offset the electricity bill overpayment in
the next payment period;
d) The
interest on electricity bill overpayment shall be determined as prescribed in
point b of this clause;
dd) The
electricity seller shall record meter reading once a month on a fixed date,
except force majeure events that pose a safety risk to workers as specified in
the PPA. The date of recording meter readings may be 01 day sooner or later
than the fixed date or changed as agreed upon in the PPA.
2.
Electricity bills under a PPA with an electricity consumer serving non-domestic
purposes shall be paid as agreed upon by the parties under the agreement. Any
party that delays the payment or collects electricity bill overpayment is
obliged to pay a late payment interest in proportion to the period of late
payment in accordance with regulations of civil law.
3.
Regulations on reconsidering the electricity bill payable:
a) The
electricity buyer is entitled to request the electricity seller to re-consider
the electricity bill payable using any of the following methods: directly at
the electricity seller; via postal services; by electronic means or another
method agreed upon by the parties;
b) Upon
receiving the electricity buyer’s request, the electricity seller shall process
it within 07 days from the date of receiving the request. Where they disagree
with the electricity seller, the electricity buyer shall request a competent
authority to initiate the conciliation procedure in accordance with regulations
of law on conciliation or request an arbitration center or court to proceed
with their request as prescribed by law;
c)
Pending the request processing result, the electricity buyer still has to pay
the electricity bill; the electricity seller must not disconnect the
electricity supply.
4. Where
the electricity buyer fails to pay the electricity bill as agreed upon under
the agreement after the electricity seller has sent 02 separate notifications,
at least 03 days apart, the electricity seller is entitled to disconnect the
electricity supply. The electricity seller is entitled to disconnect the
electricity supply from the time of supply disconnection which shall be agreed
upon by the two parties in PPA but not more than 10 days after seller sends the
first notification. The electricity seller must notify the time of electricity
supply disconnection to the electricity buyer 24 hours in advance and is not
required to bear responsibly for the damage caused by the electricity supply
disconnection. After the electricity buyer pays the electricity bill and
completes the procedures for applying for electricity supply resumption, the
electricity seller must resume the electricity supply as per the law on
electricity.
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6. The
determination of electricity bills in cases where the electricity metering
device is not accurate according to technical requirements for measurement,
where the electricity buyer uses electricity during the period during the
period the metering system is faulty causing the meter to stop working and
where the electricity buyer uses electricity during the period the metering
system is lost shall comply with regulations of the Minister of Industry and
Trade.
7. The Government
shall elaborate the recording of electricity meter readings.
Article 49. Disconnecting and reducing supply of
electricity to electricity consumers
1.
Disconnecting and reducing supply of electricity to an electricity consumer
shall comply with regulations of law and signed PPA. The electricity buyer and
electricity seller must agree to the cases of electricity supply disconnection
and reduction and methods of notifying the electricity supply disconnection and
reduction in the PPA.
2. Cases
of electricity supply disconnection and reduction:
a) As an
incident or force majeure event which is beyond the electricity seller's
control occurs, thereby seriously threatening the safety of persons and
equipment or a power shortage occurs, thereby threatening the safety of the
power system, the electricity seller may disconnect or reduce the electricity
supply; must, within 24 hours since the electricity supply disconnection or
reduction, notify the electricity buyer of the status of electricity supply and
the estimated time of electricity supply resumption;
b) When
there is a plan for repair, maintenance or other tasks, the electricity seller
shall notify the electricity buyer thereof at least 05 days before the
electricity supply disconnection or reduction by the notification method agreed
upon in the PPA;
c)
Electricity bills are not paid as prescribed in clause 4 Article 48 of this
Law;
d) At the
request of a competent authority in case an organization or individual violates
regulations of this Law or regulations of other laws and is required to be
subject to the electricity supply measures according to regulations of such
laws.
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Section 3. ELECTRICITY PRICES AND ELECTRICITY-RELATED
SERVICE PRICES
Article 50. Electricity prices
1. Retail
electricity price is prescribed as follows:
a) The
retail electricity price shall be set by the electricity retailer on the basis
of the electricity price policy, the price bracket of the average retail
electricity price, the mechanism for adjusting the average retail electricity
price and the electricity retail tariff structure;
b) The
retail electricity price is specific to each group of electricity consumers in
a manner that is appropriate to the socio-economic situation in each period and
the level of the competitive electricity market, including: manufacturing,
business, administrative and daily activities. The time-based retail
electricity price is applied to eligible electricity consumers, including the
retail electricity price during peak hours, off-peak and normal hours. For the
group of domestic electricity consumers, progressive pricing shall apply to
consumers that are not eligible to participate or do not participate in buying
and selling electricity on the competitive electricity market.
2.
Wholesale electricity price under a PPA shall be agreed upon by the electric
utilities as prescribed in point e clause 12 Article 5 of this Law.
3. The
authority to set, submit, approve and decide electricity prices is as follows:
a) The
Government shall regulate the mechanism and time for adjustment of the average
retail electricity price;
b) The
Prime Minister shall regulate the electricity retail tariff structure and the
price bracket of the average retail electricity price;
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d) The
Minister of Industry and Trade shall provide for the method of determining
wholesale electricity prices; methods of establishing and procedures for
approving the wholesale electricity price bracket.
Article 51. Electricity-related service prices
1.
Electricity generation service prices are prescribed as follows:
a) The
price of a PPA includes the following components: fixed price determined on
average according to the economic life of the project; operation and maintenance
price and variable price;
b) The
price of the PPA in base year shall be agreed upon by the electric utilities in
the PPA. The electricity seller and the electricity buyer have the right to
sign a PPA at a fixed price for each contract year on the basis of ensuring
that the fixed price remains unchanged;
c) In
case an agreement on the price of the PPA has not yet been reached, the
electricity seller and the electricity buyer may agree on a temporary price to
be applied until the official price is agreed;
d) In
case of organizing bidding to select investors in a power plant project, the
price of the PPA shall be determined by the electricity seller and the
electricity buyer as prescribed in points a, b and c of this clause and clause
2 Article 19 of this Law;
dd)
Prices of power generation services for power plants invested in the form of
PPP shall comply with Article 16 of this Law;
e) Small
renewable energy power plants may apply the avoided cost tariff mechanism;
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2. The
electricity buyer and the electricity seller may agree on the price of the PPA
on the principle of ensuring that a power plan recoups its investment (if any)
and expenses for electricity production and trading activities and agree on a
reasonable profit level with regard to the following power plants:
a) The
small renewable energy plants specified in point e clause 1 of this Article as
the time limit for applying the avoided cost tariff has expired;
b) The
power plants which have been commercially operated as the time limit for
applying the price of the PPA has expired;
c) The
power plants for which the BOT contract has expired and which need to be
transferred to the Government as prescribed in Article 16 of this Law.
3. The
Minister of Industry and Trade shall provide for the dossiers, procedures and
methods for determining electricity generation price brackets; approve the
electricity generation price bracket established and submitted by electric
utilities.
4. The
Minister of Industry and Trade shall regulate the method of determining the
cost of electricity generation of power plants during the period over which
they have yet to participate in the competitive electricity market in the
following cases:
a) The
power plants prescribed in clause 2 Article 5 of this Law;
b) Power
plants cooperating with power plants prescribed in clause 2 Article 5 of this
Law in operation to support the regulation of the system according to the list
prescribed by the Ministry of Industry and Trade;
c) Other
power plants which fail to determine the prices of electricity generation
services.
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6. The
Minister of Industry and Trade shall elaborate the following contents:
a)
Methods of setting, dossiers and procedures for approving prices of electricity
transmission services, prices of electricity distribution services, prices of
ancillary services for power system, prices of power system dispatch and
operation services and prices of electricity market transaction regulation
services;
b)
Methods of providing guidance on and forms of valuation of transmission grids
invested in and built by non-state economic sectors as prescribed in clause 4
Article 5 of this Law.
7. The
Minister of Industry and Trade shall approve prices of electricity transmission
services, prices of electricity distribution services, prices of ancillary
services for power system, prices of power system dispatch and operation
services and prices of electricity market transaction regulation services set
and submitted by electric utilities.
8. Based
on the characteristics of power plants from time to time, the Minister of
Industry and Trade shall decide the following contents:
a)
Application of the electricity generation price bracket to offshore wind power
plants as prescribed in this Law and power plants mentioned in clause 2 of this
Law;
b)
Multi-component electricity price mechanism, including capacity add-on price,
electrical energy price, fixed price, variable price or other prices (if any).
Article 52. Bases for setting and adjusting electricity
prices and electricity-related service prices
1. Bases
for setting electricity prices include:
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b)
National socio-economic conditions;
c)
Electricity supply and demand;
d)
Reasonable expenses for electricity production and trading and reasonable
profits of electric utilities;
dd)
Levels of the competitive electricity market.
e)
Annually audited financial statements of electric utilities.
2. The
adjustment of average retail electricity price shall be made as follows:
e) The
average retail electricity price shall be reflected and adjusted promptly
according to actual fluctuations in input parameters to compensate for
reasonable and valid expenses and reasonable profits so as to preserve and
develop business capital of enterprises in a manner that is appropriate to
socio-economic conditions from time to time and levels of the competitive
electricity market;
b) When
the retail electricity market is operated, the retail electricity price shall
be applied according to the market mechanism;
c) The
Government shall elaborate point a of this clause.
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4. Bases
for adjusting electricity generation service prices in signed PPAs:
a)
Changes to policies and laws promulgated by competent authorities, which
adversely affect the legitimate interests of electricity sellers or electricity
buyers;
b)
Complying with competent authorities’ requests for review and adjustment of
electricity generation service prices;
c) An
electricity seller is assigned to invest in the construction, upgrade or
renovate items (outside the scope of investment management of the electricity
generation unit in the signed PPA) to implement planning or to fulfill new
requirements for standards and technical regulations as prescribed by law;
d)
Optimizing the process for management, production, technological change and
innovation in electricity production activities.
Chapter VI
NATIONAL POWER SYSTEM DISPATCH AND
OPERATION
Article 53. Principles and requirements for dispatch and
operation of national power system
1. The
dispatch and operation of national power system shall adhere to the following principles:
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b) Ensure
technical constraints of the power system;
c) Meet
the requirements for flood management, irrigation, maintenance of minimum flow
and downstream water supply as prescribed by law;
d)
Implement agreements on electricity output and capacity in PPAs, electricity
export and import on the basis of ensuring the safety of the national power
system, safeguarding the interests of the State and the People; constraints on
primary fuel consumption for electricity generation approved by competent
authorities;
dd) Carry
out techno-economic optimization of the power system;
e) Ensure
fairness in mobilizing capacity and electrical energy of power generation units
in the national power system.
2. Technical
requirements and requirements for commanding operation of the national power
system:
a)
Electricity generating equipment, electrical grids and ancillary equipment
connected to the transmission grid and distribution grid must satisfy the
requirements for connection and techniques for operation of the national power
system;
b) The
national power system shall be commanded by a dispatch level vested with
controlling rights, including the national dispatch level, regional dispatch
level, and distribution dispatch level;
c) Each
unit managing and operating the power source and electrical grid shall obey the
command of the dispatch level vested with controlling rights; formulate a plan
for maintenance and repair of equipment under its management to ensure safe
operation and lessen the possibility of incidents, cooperate with relevant
units in operation to ensure the safe, stable and reliable operation of the
power system.
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4. The
Minister of Industry and Trade shall regulate functions and tasks and grant of
controlling rights to the dispatch levels vested with control authority,
principles of dispatch and operation, incident handling, black start and
restoration of the national power system; requirements for techniques,
connection, electricity metering and operation of the electricity transmission
and distribution system; directs the formulation of power supply plans, inspection
and supervision of power supply and power system operation to balance the
electricity supply and demand.
5. The
Government shall regulate emergency situations that severely threaten to
interrupt electricity supply as specified in clause 3 of this Article.
Article 54. Demand side management
1. Demand
side management involves encouraging and providing instructions for shifting of
electricity use; saving electricity, reducing electricity loss; lowering peak
demand and load difference between peak and off-peak hours.
2. Each
electric utility shall conduct electrical load research, design and organize
the implementation of the demand side management program to optimize the
operation of the power system.
3.
Electricity consumers shall participate in the demand side management program
to optimize the operation of the power system, decrease the capacity difference
between peak and off-peak hours of the power system load profile.
4. The
Ministry of Industry and Trade shall design and submit to the Prime Minister
for approval a national demand side management program which is appropriate to
the socio-economic condition from time to time and includes measures for demand
side management, financial mechanism and responsibilities of related parties.
The Minister of Industry and Trade shall stipulate the demand side management.
Article 55. Thrift practice in electricity generation,
transmission, distribution and use
1. Thrift
practice in electricity generation is provided for as follows:
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b)
Self-consumption power systems in power plants must be appropriately designed
and installed, and used during the operation process in a manner that is satisfies
the requirements for self-consumption power saving;
c) The
Minister of Industry and Trade shall specify the norms for self-consumption of
power plants.
2. Thrift
practice in electricity transmission and distribution is provided for as
follows: Transmission and distribution lines and electrical substations must
meet advanced techno-economic parameters and standards and be operated by
optimal methods in order to satisfy the requirements for stable, safe and
constant supply of electricity and take into account the economic efficiency of
solutions for reducing electrical energy loss.
3. Thrift
practice in electricity use is provided for as follows:
a)
Organizations and individuals using electricity for production shall improve
and rationalize the process for manufacture and application of technologies and
electrical equipment with low power consumption to save electricity; maintain
the capacity factor according to technical standards and minimize the underload
use of electrical equipment;
b)
Organizations and individuals that manufacture or import electrical equipment
must meet the advanced energy efficiency criteria so as to reduce the cost of
electricity, thus contributing to electricity saving;
c)
Electricity-using organizations shall promulgate regulations on thrift practice
in electricity use within their respective organizations.
Article 56. Electricity metering
1.
Electricity sellers, electricity generation units, electricity transmission
units and electricity distribution units shall invest in, install and manage
all electricity metering devices, ancillary equipment for electricity metering
and systems for collecting and managing metering data, unless otherwise agreed
upon by the parties to safeguard their interests in compliance with regulations
of law.
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3. The
meter installation positions must ensure safety and aesthetic appearance, and
prime electricity buyers to check meter readings and electricity sellers to
record meter readings.
4.
Electricity metering device owners shall carry out inspection, calibration and
testing of metering devices in accordance with the requirements and within the
time limit specified by regulations of law on measurement.
5. If it
is suspected that the electricity metering device operates inaccurately, the
electricity buyer is entitled to request the electricity seller to conduct a
check; the electricity seller must completely check, repair or replace it; in
case of electricity retailing, the electricity seller must completely check,
repair or replace it within 03 days from the date of receiving the electricity
buyer's request. In case of disagreeing with the result of the check, repair or
replacement by the electricity seller, the electricity buyer may request an
electricity authority affiliated to the provincial People’s Committee to carry
out an independent inspection. Within 15 days from the date of receiving the
request, the electricity authority affiliated to the provincial People’s
Committee shall carry out the inspection with an independent inspection
organization.
6. The
cost of electricity metering device inspection specified in clause 5 of this Article
shall be paid as follows:
a) Where
the independent inspection organization determines that the electricity
metering device has satisfied technical requirements for measurement, the
electricity buyer shall pay the inspection cost;
b) Where
the independent inspection organization determines that the electricity
metering device has failed to satisfy technical requirements for measurement,
the electricity seller shall pay the inspection cost and carry out
retrospective collection or refund disgorgement of electricity under the signed
PPA and regulations of law.
Article 57. Electric power quality assurance
1.
Electricity generation units, electricity transmission units and electricity
distribution units must meet capacity, electrical energy and electricity supply
duration standards laid down in the signed agreements; ensure the
compliance of voltage and frequency with technical requirements promulgated by
the Minister of Industry and Trade. In case of failure to satisfy the voltage,
frequency, capacity, electrical energy and electricity supply duration
standards under the signed agreements causing damage to the electricity buyer,
the electricity seller must pay compensation to the electricity buyer according
to regulations of law.
2. The
electricity buyer shall ensure that their electrical equipment operates safely
so as not to cause any breakdown to the power system and not to affect quality
of voltage and frequency of the electrical grid.
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RIGHTS AND OBLIGATIONS OF ELECTRIC
UTILITIES AND ELECTRICITY CONSUMERS
Article 58. Rights and obligations of electric utilities
issued with electricity licenses
1. An
electric utility issued with the electricity license has the right to:
a)
Conduct electricity activities according to the electricity license;
b) Apply
for re-issuance, extension, amendment or addition of electricity activities
when fully satisfying conditions as prescribed by law;
c) Be
provided with necessary information in accordance with regulations of law in
the fields covered by the electricity license;
d) Other
rights as prescribed by law.
2. An
electric utility issued with the electricity license has the obligation to:
a)
Conduct electricity activities according to the electricity license;
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c) Report
to the licensing authority at least 60 days before the date on which it stops
conducting electricity activities;
d) Do not
lease or lend out or arbitrarily modify any content of the electricity license;
dd) Apply
for revision to the electricity license after change of its name or registered
business address;
e) Report
the conduct of licensed electricity activities to the licensing authority
before March 01 every year;
g) Other
obligations as prescribed by law.
Article 59. Rights and obligations of electricity
generation units
1. An
electricity generation unit has the right to:
a)
Establish connection to the national power system when satisfying the technical
conditions and requirements;
b)
Request a competent authority to make amendments to relevant technical
regulations and techno-economic norms;
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d) Sell
electricity to a buyer under an electricity forward contracts, options contracts
to buy or sell electricity or electricity futures contracts and offer spot
selling prices of electricity on the competitive electricity market;
dd) Be
provided with necessary information relating to electricity generation
activities;
e) Other
rights as prescribed by this Law and other relevant regulations of law.
2. An
electricity generation unit has the obligation to:
a) Ensure
safe, stable and reliable operation of generating sets and equipment in power
plants, prepare sufficient fuel to facilitate the adoption of operation methods
and satisfaction of operation requirements of the power system with the aim of
ensuring safe and constant supply of electricity;
b) Where
human life and safety of equipment are threatened, disconnect or reduce the
electricity supply if there is no alternative;
c) Comply
with regulations on dispatch and operation of the power system, electrical
safety and electricity market;
d) Follow
operation methods, command and control orders of dispatch levels vested with
controlling rights;
dd)
Immediately notify a dispatch level vested with controlling rights,
organizations and individuals concerned of any fault in electricity generation;
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g) Report
information relating to the readiness and reserve capacity of power plants and
related information at the request of the national load dispatch unit,
electricity market transaction regulation unit or competent authority;
h)
Collect, treat and recycle ash and slag generated from thermal power plants,
solar panels, energy storage equipment, wind turbine blades and other discarded
electrical equipment in accordance with regulations of law on environmental
protection;
i) Other
obligations as prescribed by this Law and other relevant regulations of law.
Article 60. Rights and obligations of electricity
transmission units
1. An electricity
transmission unit has the right to:
a)
Establish connection to the national power system when satisfying the technical
conditions and requirements;
b)
Request a competent authority to make amendments to relevant technical
regulations and techno-economic norms;
c) Set
and submit prices of electricity transmission services for approval;
d)
Provide electricity transmission services as prescribed;
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e) Enter
the electricity buyer’s premises to operate, maintain, repair or replace
electrical equipment of the electricity transmission unit;
g) Other
rights prescribed by this Law and other relevant regulations of law.
2. An
electricity transmission unit has the obligation to:
a)
Provide transmission services and ancillary services to relevant parties,
protect the right of organizations and individuals conducting electricity
activities to establish connection to the transmission grid which they are
assigned to manage and operate, except where the transmission grid is
overloaded as certified by the Ministry of Industry and Trade;
b) Where
human life and safety of equipment are threatened, disconnect or request a
dispatch level vested with controlling rights to reduce the electricity
transmission if there is no alternative;
c)
Formulate a plan for investment in transmission grid development and invest in
the transmission grid development to satisfy the electricity transmission
demands under the PDP and plant to implement PDP; invest in electricity
metering devices and ancillary equipment, unless otherwise agreed with the
electricity transmission unit, electricity distribution unit or electricity
buyer;
d) Ensure
that the electrical grid and equipment under its management are operated in a
safe, stable and reliable manner;
dd)
Comply with regulations on dispatch and operation of the power system,
electrical safety and electricity market;
e) Follow
operation methods, command and control orders of dispatch levels vested with
controlling rights;
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h) Report
information relating to the readiness and reserve capacity of equipment and other
related information at the request of the national load dispatch unit,
electricity market transaction regulation unit or competent authority;
i) Other
obligations as prescribed by this Law and other relevant regulations of law.
Article 61. Rights and obligations of electricity
distribution units
1. An
electricity distribution unit has the right to:
a)
Establish connection to the national power system when satisfying the technical
conditions and requirements;
b)
Request a competent authority to make amendments to relevant technical
regulations and techno-economic norms;
c) Set
and submit prices of electricity distribution services for approval; provide
electricity distribution services as prescribed;
d) Enter
the electricity buyer’s premises to operate, maintain, repair or replace
electrical equipment of the electricity distribution unit;
dd) Be
provided with necessary information relating to electricity distribution
activities;
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2. An
electricity distribution unit has the obligation to:
a)
Provide electricity distribution services for electricity consumers,
electricity retailers and electricity wholesalers in compliance with technical
requirements, and requirements for service quality and safety under agreements,
except where the distribution grid is overloaded as certified by an electricity
authority affiliated to the provincial People's Committee;
b)
Formulate a plan for investment in transmission grid development and invest in
the transmission grid development to satisfy the electricity demands according
to the electricity supply network development plan in the provincial planning;
plan to implement provincial planning containing contents of the electricity
supply network development plan; invest in electricity meters and lines
transmitting electricity to meters for the electricity buyer, unless otherwise
agreed with the electricity buyer;
c) Comply
with regulations on dispatch and operation of the power system, electrical
safety and electricity market, and operation methods at the request of a
dispatch level vested with controlling rights, adjust load, disconnect and
reduce electricity supply in accordance with regulations to ensure the power
system is operated in a safe and constant manner;
d) Where
human life and safety of equipment are threatened, disconnect or reduce the
electricity distribution if there is no alternative;
dd)
Report information relating to the readiness and reserve capacity of equipment
and other related information at the request of the national load dispatch
unit, electricity market transaction regulation unit or competent authority;
e) In
case of any emergency situation that severely threatens to interrupt
electricity supply, the electricity distribution unit shall mobilize backup
generators of electricity consumers to maintain the supply to the national
power system;
g) Other
obligations as prescribed by this Law and other relevant regulations of law.
Article 62. Rights and obligations of electricity wholesalers
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a)
Directly buy electricity from any electricity seller under a power wholesale
agreement;
b) Use
electricity transmission services, electricity distribution services, power
system dispatch services and electricity market transaction regulation services
appropriate to each level of the competitive electricity market;
c) Buy
and sell electricity on the competitive electricity market under a power
wholesale agreement, electricity forward contract, options contract to buy or
sell electricity or electricity futures contract; determine the wholesale
electricity price within the approved wholesale electricity price bracket;
d) Be
provided with necessary information relating to electricity wholesaling
activities;
dd) Other
rights prescribed by this Law and other relevant regulations of law.
2. An
electricity wholesaler has the obligation to:
a) Sell
electricity according to the quantity, quality and prices agreed upon in
agreements;
b) Pay
compensation when causing damage to the electricity buyer or electricity seller
according to regulations of law;
c) Abide
by regulations on operation of the competitive electricity market and
electrical safety; provide necessary information relating to the participation
in the competitive electricity market at the request of the national load
dispatch unit, electricity market transaction regulation unit or competent
authority;
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Article 63. Rights and obligations of electricity retailers
1. An
electricity retailer has the right to:
a)
Directly buy electricity from any electricity seller under a PPA;
b)
Compete to buy and sell electricity on the competitive electricity market under
a PPA, electricity forward contract, options contract to buy or sell
electricity or electricity futures contract; determine the retail electricity
price on the competitive retail electricity market as prescribed;
c) Use
electricity transmission services, electricity distribution services, power
system dispatch services and electricity market transaction regulation services
appropriate to each level of the competitive electricity market;
d) Enter
the electricity buyer’s premises to check meters, record their readings, and contact
consumers;
dd) Be
provided with necessary information relating to electricity retailing
activities;
e) Other
rights as prescribed by this Law and other relevant regulations of law.
2. An
electricity retailer has the obligation to:
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b) Pay
compensation when causing damage to the electricity buyer or electricity seller
according to regulations of law;
c) Be
provided with necessary information relating to the amount of retailed
electricity at the request of the competent authority;
d)
Inspect the execution of PPAs;
dd)
Comply with regulations on operation of the competitive electricity market and
electrical safety;
e) Other
obligations as prescribed by this Law and other relevant regulations of law.
Article 64. Rights and obligations of the national load
dispatch unit
1. The
national load dispatch unit has the right to:
a)
Command and control electricity generation units, electricity transmission
units and electricity distribution units to follow the national power system
operation plan and method;
b)
Command the handling of emergency or unusual situations in the national power
system; mobilize capacity and electrical energy of power plants in the national
power system; command the operation of transmission and distribution grids;
disconnect or reduce the electricity supply in case the safe and reliable
operation of the national power system is threatened;
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d) Set
and submit prices of power system dispatch and operation services for approval;
dd)
Request relevant electric utilities to provide information on technical
specifications, readiness for participation in operation and load carriage of
equipment for electricity generation, transmission and distribution; consumers’
electricity demands in order to determine the method for operation of the
national power system;
e) Assess
the balance between supply and demand of the power system;
g)
Benefit from special mechanisms and incentives provided by the Government for
the maintenance of infrastructure and other essential systems serving the
dispatch and operation of the power system, aiming to satisfy the requirements
for operation and contribute to ensuring electricity supply;
h) Be
entitled to priority mechanisms and incentives provided by the Government to attract
high quality human resources for the dispatch of the power system;
i) Other
rights prescribed by this Law and other relevant regulations of law.
2. The
national load dispatch unit has the obligation to:
a)
Operate the national power system in a safe, stable and economical manner;
b) Comply
with regulations on dispatch and operation of the national power system,
electricity transmission system and electricity distribution system promulgated
by the Minister of Industry and Trade;
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d) Notify
the capacity, amount of electricity and ancillary services mobilized for the
electricity market transaction regulation unit;
dd)
Manage, operate, maintain and service telecommunications and information system
infrastructure and specialized systems serving power system dispatch;
e)
Promptly report to the Ministry of Industry and Trade and notify the
electricity market transaction regulation unit of the emergency or unusual
situations which seriously threaten safe and reliable operation of the national
power system;
g) Other
obligations as prescribed by this Law and other relevant regulations of law.
Article 65. Rights and obligations of electricity market
transaction regulation units
1. An
electricity market transaction regulation unit has the right to:
a)
Operate the spot electricity market;
b)
Request related electric utilities to provide data in service of the regulation
of electricity market transactions on the competitive electricity market as per
regulations of law;
c) Invest
in, install, manage and operate the metering data collection system and
metering data management system under its management at each level of the
competitive electricity market;
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dd) Set
and submit prices of electricity market transaction regulation services for
approval;
e)
Benefit from special mechanisms and incentives provided by the Government for
the maintenance of infrastructure and other essential systems serving the
operation of the electricity market;
g) Be
entitled to priority mechanisms and incentives provided by the Government to
attract high quality human resources for the operation of the electricity
market;
h) Other
rights prescribed by this Law and other relevant regulations of law.
2. An
electricity market transaction regulation unit has the obligation to:
a) Comply
with regulations on the competitive electricity market;
b)
Regulate and coordinate transactions in trading of electricity and ancillary
services on the competitive electricity market;
c)
Formulate and disclose information about the electricity market operation plans
in the coming years, months and weeks, draw up schedules in the coming days and
cycles;
d) Set
and disclose spot electricity prices and ancillary service prices;
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e) Manage,
operate, maintain and service electricity market information system
infrastructure and specialized telecommunications and information
infrastructure serving power system dispatch and electricity market transaction
regulation;
g)
Receive, appraise, assess and confirm applications for participation in the
electricity market of units wishing to participate in the electricity market;
h)
Supervise the registration for participation in the electricity market by its
members;
i) Other
obligations as prescribed by this Law and other relevant regulations of law.
Article 66. Rights and obligations of electricity consumers
1. An
electricity consumer has the right to:
a)
Receive adequate amount of capacity and electricity of the quality agreed upon
in the agreement;
b)
Request the electricity seller to promptly resume the electricity supply after
blackouts;
c)
Receive compensation for the damage caused by the electricity seller according
to regulations of law;
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dd) Be
provided with necessary information relating to electricity retailing
activities and electrical safety instructions;
e) Select
the electricity seller in the competitive retail electricity market;
g) Other
rights prescribed by this Law and other relevant regulations of law.
2. An
electricity consumer has the obligation to:
a) Pay
fully and on schedule electricity bills and adhere to other agreements in the
PPA;
b) Use
electricity in a safe, economical and efficient manner; implement regulations
on and programs for demand side management to ensure the safe and continuous
operation of the power system;
c) Use
electricity transmission services, electricity distribution services, power
system dispatch services and electricity market transaction regulation services
appropriate to each level of the competitive electricity market;
d) Comply
with regulations on eligible end users and use electricity for its intended
purposes specified in the PPA;
dd)
Promptly notify the electricity seller of the unusual events that may cause a
blackout or threaten safety of people and property;
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g)
Investing in behind-the-meter transmission lines to the place of electricity
use, except for the case specified in clause 2 Article 17 of this Law; design
the electrical system in the project under their management to meet standards
and technical regulations as prescribed by law;
h) Ensure
electrical equipment satisfies technical requirements and requirements for
electrical safety and fire safety;
i) Pay
compensation when causing damage to the electricity seller according to
regulations of law;
k)
Protect the electric meter placed in the location under their management as
agreed upon in the PPA; do not arbitrarily remove or move the electric meter.
When it is needed to move the electric meter, it is required to obtain the
electricity seller’s consent and bear the moving costs;
l) Other
obligations as prescribed by this Law and other relevant regulations of law.
3. A
large electricity consumer has the right to:
a)
Exercise the rights specified in clause 1 of this Article and use electricity
transmission or distribution services as specified in the agreement signed with
the electricity transmission unit or electricity distribution unit;
b) When
participating in the competitive electricity market, buy electricity directly
from the electricity generation unit via a PPA, electricity forward contract,
options contract to buy or sell electricity, electricity futures contract or
spot agreement on the competitive retail electricity market.
4. A
large electricity consumer has the obligation to:
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b)
Implement the regime for electricity use at the request of a dispatch level
vested with controlling rights, measures to satisfy requirements for
electricity quality satisfy and electrical safety and other regulations agreed upon
in the PPA and agreement signed with the electricity transmission unit or
electricity distribution unit.
Chapter VIII
PROTECTION OF ELECTRICITY WORKS AND SAFETY
IN ELECTRICITY FIELD
Section 1. PROTECTION OF ELECTRICITY WORKS AND ELECTRICAL
SAFETY
Article 67. Assurance of safety of electricity works
1.
Electric utilities, organizations and individuals shall assure safety of
overhead transmission lines, underground electrical cables, transformer
substations, power plants and other electricity works as prescribed by law.
Land users shall enable electric utilities to access electricity works for
inspection, repair, maintenance and incident recovery.
2. When
constructing, renovating, repairing or expanding any electricity work or other
works that may affect each other, the electric utility and related
organizations and individuals have the responsibility to:
a)
Cooperate in synchronous implementation of measures to ensure electrical and
construction safety;
b)
Promptly notify a competent authorities, organizations and individuals
concerned upon discovering any risk or event that threatens safety of the
electricity work;
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3. When
any electricity work or electrical equipment is no longer in operation, it must
be handled, dismantled and managed in a safe manner as per regulations of law
on construction and law on environmental protection.
4.
Ministries, ministerial agencies, Governmental agencies and People's Committees
at all levels shall, within their jurisdiction, organize the
implementation of regulations on the assurance of safety of electricity works
in this Law and other relevant laws; carry out inspection, prevent, and
promptly impose penalties for violations against the law on assurance of safety
of electricity works.
5. The
Government shall elaborate clauses 1 and 2 of this Article.
Article 68. Safety corridors of electricity works
1. The
safety corridor of an electricity work means an area which surrounds the
electricity work that needs protecting to ensure the safety of people and
electricity work. The safety corridor can be overhead, on the ground,
underground, on water or under water depending on each type of electricity
work.
2.
Electricity work safety corridors include:
a) Safety
corridors of overhead transmission lines;
b) Safety
corridors of underground electric cables;
c) Safety
corridors of transformer substations;
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3. The
use of land within the safety corridor of an electricity work is provided for
as follows:
a) Land
in the electricity work safety corridor may continue to be used for the
purposes determined in accordance with law; land use must not affect the
assurance of safety of the electricity work. The land user shall receive
compensation and assistance due to restrictions on land use or damage to
property attached to land according to the law on land;
b) In
case the use of land within the electricity work safety corridor affects the
safety of the electricity work, the land user must cooperate with the electric
utility in taking remedial measures;
c) If the
remedial measures specified in point b of this clause still fail to ensure the
safety of the electricity work, the State shall expropriate land and provide
compensation as prescribed by law. The compensation, assistance and
resettlement upon the State’s expropriation of land within the electricity work
safety corridor shall comply with regulations of law on land;
d) Where
the safety corridor of an electricity work overlaps that of another work,
further actions shall be taken according to the Government’s regulations.
4. The
safety corridor of an offshore electricity work is part of the sea area
assigned to implement an electricity project. The use of sea area within the
safety corridor of the offshore electricity work shall comply with the
following regulations:
a) Use
marine resources in an economical and efficient manner;
b) Ensure
the safety of people, electricity works and other legal activities in service
of exploitation and use of marine resources according to regulations of law;
c) Ensure
the safety of organisms, wild animals and migratory birds in accordance with
the law on biodiversity and treaties to which the Socialist Republic of Vietnam
is a signatory.
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6. Trees
inside and outside the electricity work safety corridor must maintain a safety
distance of electrical discharge by voltage level. In case the growth of a tree
encroaches upon the safety distance of electrical discharge, the tree owner and
land user must promptly trim the encroaching branches. In case a tree
encroaches upon the safety distance of electrical discharge causing a fault in
the electrical grid, the tree owner and land user shall, depending on the
degree of the damage, incur a penalty as prescribed by law. The electric utility
shall cooperate with a local competent authority in trimming trees encroaching
upon the safety distance of electrical discharge in areas where the tree owners
are unidentifiable.
7.
Houses, works and activities must satisfy safety conditions to be permitted to
exist within the electricity work safety corridor. The owner or occupier of a
house or work which is permitted to exist within the electricity work safety
corridor must not use the roof or any part of such house or work in a manner
that encroaches upon the safety distance of electrical discharge by
voltage level and must comply with regulations on assurance of safety of
electricity works upon repair and renovation of houses and works.
8. Houses
and works where people live or work are not permitted to exist within safety
corridors of overhead transmission lines of 500 kV or higher, except for
specialized works in service of operation of such electrical grid.
9.
People's Committees at all levels shall, within their jurisdiction, formulate
and implement the relocation, resettlement and land clearance plan; provide
compensation for loss of land or property; manage and protect the area of land
or sea area reserved for projects and electricity work safety corridor.
10. The
Government shall elaborate this Article.
Article 69. General regulations on electrical safety
1.
Persons who directly build, repair, renovate, manage and operate power systems
and electricity works; inspect electrical equipment and instruments and perform
other tasks directly related to power systems must be trained in and tested on
electrical safety and issued with electrical safety cards.
2.
Investors in electricity projects, organizations and units managing, operating,
building, repairing and renovating electricity works and conducting activities
using electricity for production have the responsibility to:
a) Comply
with standards and technical regulations on electrical engineering, electrical
safety and regulations of law on electrical safety;
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c)
Organize or hire a sufficiently competent unit to organize electrical safety
training and testing and issuance of electrical safety cards to workers in
clause 1 of this Article under their management;
d) When
an electrical incident or accident occurs, measures must be immediately taken
to remedy the incident or accident, provide first aid, evacuate people from the
dangerous area and promptly report such to competent authorities;
dd)
Follow the regime for reporting of electrical safety and violation of
electricity work safety corridors.
3.
Manufacturers and traders of electrical equipment and instruments must be
responsible for the quality of products and goods according to regulations of
law; provide customers with instructions for installation, use, preservation
and maintenance of electrical equipment and instruments to ensure safety
according to regulations.
4.
Electricity shall be used as a direct means of protection only when other
protection measures have been applied inefficiently in areas where electric
fences are permitted for erection prescribed by the Minister of Public Security
and Minister of National Defense and safety conditions set out by the Minister
of Industry and Trade must be satisfied.
5. The
Minister of Industry and Trade shall promulgate technical regulations on
electrical engineering and electrical safety as prescribed in point a clause 2
of this Article; regulate the inspection of safety in electricity generation,
electricity transmission, electricity distribution and electricity use.
6. The
Ministry of Industry and Trade shall preside over and cooperate with relevant
ministries and central authorities and provincial People’s Committees in
promulgating and organizing the implementation of the National Program for
Safety in Electricity Use.
7. The
Minister of Construction shall regulate requirements for power systems for
houses and works in accordance with law on construction.
8.
Provincial People's Committees shall promulgate regulations on management of
safety in electricity use in their provinces; organize inspection of safety in
electricity use under regulations of this Law and other relevant regulations of
law; disseminate and provide guidance on regulations on management of safety in
electricity use to electricity users and raise their awareness of such
regulations.
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Article 70. Inspection of technical safety of electrical
equipment and instruments
1.
Electrical equipment and instruments on the list specified in clause 4 of this
Article must be inspected before being put into use. During their use and
operation, standards and technical regulations must be satisfied as prescribed
by law.
2. The
inspection of technical safety of electrical equipment and instruments must be
performed by an organization that meets the conditions for provision of
inspection services and has its registration of inspection of product and goods
quality certified by the Ministry of Industry and Trade in accordance with
regulations of law on product and goods quality.
3. The
Ministry of Industry and Trade and provincial People's Committees shall, under
their authority, audit and examine the inspection technical safety of
electrical equipment and instruments.
4. The
Minister of Industry and Trade shall regulate the list of electrical equipment
and instruments subject to inspection; inspection contents; inspection cycle;
inspection process; responsibilities of organizations and individuals for
inspection of technical safety of electrical equipment and instruments.
Article 71. Safety in electricity generation
1.
Organizations and individuals investing in the construction, management and
operation of electricity generation works must comply with general regulations
on electrical safety set out in Article 69 of this Law and the following
regulations:
a)
Regulations on safe environmental distance from residential areas as specified
in the law on environmental protection;
b)
Standards and technical regulations on construction, electrical engineering,
electrical safety, fire safety and environmental protection;
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d) Conduct
of periodic technical safety assessment as prescribed by the Minister of
Industry and Trade.
2. In the
event of electricity-related fire, explosion, incident or accident, the
investor or the unit in charge of management and operation shall promptly apply
measures to rescue victims from dangerous areas, provide first aid and
emergency care for victims; handle and eliminate the possibility that the fire,
explosion, incident or accident continues to cause danger so as to reduce
damage to people and property; implement measures to ensure electrical safety
of forces and means mobilized to handle the fire, explosion, incident or
accident; determine the cause and implement remedial measures after fire,
explosion, incident or accident according to regulations.
Article 72. Safety in electricity transmission and
distribution
1.
Investors in electrical substations and electrical grids shall adhere to
general regulations on electrical safety set forth in Article 69 of this Law.
The construction, management and operation of electrical substations and
electrical grids must conform to the construction planning and regulations of
law on ensuring safety of railway, road and inland waterway facilities,
navigational channels and other relevant regulations of law.
2. At the
intersections between overhead transmission lines, roads, railways,
navigational channels, inland waterway channels and electrical cables running
underground or running in conjunction with other works must maintain a safety
distance according to the Government’s regulations. The installation and
renovation of other power lines running in conjunction with overhead
transmission lines must ensure safety and urban aesthetics and must be
permitted by the investor in overhead transmission lines. Investors and units
managing and operating overhead transmission lines and underground electrical
cables shall establish, manage, maintain and service specialized signals
according to the provisions of law.
3. When
transferring an electrical grid, the investor must transfer to the unit in
charge of managing and operating the electrical grid all technical documents,
operation process, maintenance process, minutes of acceptance records, decision
on land allocation or land lease and documents relating to compensation, land clearance,
compensation for damage due to restrictions on land use, environmental
protection and fire safety according to regulations of law.
4. The
electrical grid management and operation unit must periodically organize
inspection, technical maintenance and repair of electrical grids, ensuring that
they operate safely according to regulations; regularly inspect, detect and
prevent violations of regulations on electrical safety and electricity work
safety corridors and cooperate in adoption of technical solutions and optimal
operation to reduce electricity loss during the electricity transmission
process.
5. When
repairing and maintaining an electrical grid, the electrical grid management
and operation unit and the unit responsible for repair and maintenance must
fully and correctly implement safety measures according to technical
regulations on electrical safety.
6.
Lightning protection and earthing equipment and systems of electrical
substations, transmission and distributions grids must be installed according
to their design, tested, accepted and periodically inspected according to
standards and technical regulations on electrical engineering and electrical
safety.
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1.
Organizations and individuals using electricity for production must comply with
general regulations on electrical safety specified in Article 69 of this Law
and the following regulations:
a)
Electrical equipment must ensure quality according to corresponding standards
and technical regulations;
b)
Electrical equipment and instrument systems, lightning protection and earthing
systems must be accepted, undergo periodical and surprise inspection and
technical safety inspection and be repaired and maintained according to
standards and technical regulations on electrical engineering and safety, and
other relevant regulations of law. The diagrams of these systems must reflect
their actual status and archived together with repair and maintenance documents
and inspection records throughout their operation.
c)
Electrical grids under management of electricity users must be installed,
managed and operated according to standards and technical regulations on
electrical engineering and safety, and other relevant regulations of law.
d)
Transmission lines must be designed and installed so that production premises
are clear and airy, thus avoiding mechanical or chemical impacts which may
cause breakdowns. Metal structures of factories, machinery, metal tubes and
lightning conductors must not be used as neutral conductors;
dd) The
power system in areas where inflammable substances exist must be designed,
installed and used according to regulations on fire and explosion prevention
and fighting; only specialized equipment and tools for fire and explosion
preventing and fighting shall be used as prescribed by law.
2. Every
electricity seller shall maintain safe and constant supply of electricity to
facilitate production as prescribed by law. At the request of a competent
authority, the electricity seller shall inspect safety of electricity
consumers’ power systems. In case of detecting any safety risk, preventive
measures must be promptly taken or the electricity supply shall be
disconnected.
Article 74. Safety in use of electricity for domestic and
commercial purposes
1.
Agencies, organizations and individuals using electricity for domestic and
commercial purposes shall:
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b)
Install conductors from electricity meters to houses, works and areas using
electricity in such a manner as to ensure quality and safety and not to hinder
traffic activities;
c)
Provide information about the power systems in houses and works and electricity
demand when signing PPAs;
d) Ensure
safety of power systems in houses and works which they own, manage or use.
Regularly check, promptly repair and replace conductors and electrical
equipment that do not meet quality standards. When an electrical incident
occurs, measures shall be in place to prevent the fire from spreading to other
objects and equipment in the houses and works and the electricity seller and
local competent authorities must be promptly notified thereof;
dd)
Cooperate with competent authorities in inspecting safety in electricity use.
2.
Electricity sellers have the responsibility to:
a)
Provide instructions on the installation and use of power systems and
electrical equipment to ensure safety; provide electricity consumers with
information on risks of threatening safety in electricity use and measures to
ensure electrical safety;
b) Apply
digital technology to inform electricity consumers of the risks of threatening
electrical safety during electricity use;
c)
Periodically organize activities to disseminate and provide guidance on
regulations on safety in electricity use to electricity consumers and raise
their awareness of such regulations;
d) At the
request of a competent authority, the electricity seller shall cooperate in
inspecting safety of electricity consumers’ power systems. In case of detecting
any safety risk, preventive measures must be promptly taken or the electricity
supply shall be disconnected as prescribed by law.
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Section 2. SAFETY OF HYDROPOWER WORKS
Article 75. Principles of management of hydropower work
safety
1.
Ensuring the safety of dams and hydropower reservoirs is a top priority in
investment in construction, management and operation of hydropower works.
2. Safety
management of hydropower works must be performed regularly and continuously
throughout the process of survey, design, construction, management, operation
and protection of hydropower works in compliance with this Law, law on
construction, safety of dams and reservoirs, law on water resources, law on
natural disaster management and law on environmental protection.
3. Owners
of, organizations and individuals managing and operating hydropower works shall
assume responsibility for the safety of hydropower works they own and invest in
and shall synchronously apply advanced technical infrastructure solutions to
the management and exploitation of hydropower works so as to ensure safety,
promote the efficiency in comprehensive exploitation and serving of multiple
purposes of hydropower works, thereby contributing to ensuring safety of
downstream areas of dams.
4. In
case an incident occurs during management and operation of a dam or hydropower
reservoir, the investor and the management and operation unit shall cooperate
with competent authorities in implementing a response plan and remedial
measures to ensure the safety of the dam, hydropower reservoir or downstream
area of the dam and bear other responsibilities according to regulations of
law.
5.
Hydropower works are classified and graded to facilitate the design,
construction, management, operation, maintenance, servicing, monitoring and
inspection for assurance of their safety.
6. The
Minister of Industry and Trade shall promulgate technical regulations on
hydropower works.
7. The
Government shall elaborate clause 5 of this Article.
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1. During
the construction of a hydropower work, the investor and construction unit must
comply with regulations of law on dam and reservoir safety and law on
construction.
2. During
the construction process of a new hydropower work project, the investor shall
tailor a disaster response plan for the hydropower work and downstream area of
the hydropower dam, submit it to a competent authority for approval and
organize its implementation in accordance with regulations of law on natural
disaster management. For an expansion investment project, the investor shall
preside over and cooperate with the existing construction management unit in
tailoring a disaster response plan for the hydropower work and downstream area
of the hydropower dam, submit it to a competent authority for approval and
organize its implementation in accordance with regulations of law on natural
disaster management.
3. The
investor shall organize the establishment of hydropower reservoir operation
procedures, emergency situation response plan, hydropower dam and reservoir
protection plan, and submit them to competent authorities for appraisal and
approval before filling water and assigning them to management and operation
organization, electricity, irrigation, water resources and natural disaster
management authorities.
4. Before
approving the first water filling, the investor must fulfill its
responsibilities and obligations according to this Law, law on construction,
law on land, law on water resources, law on forestry and law on environmental
protection. The first water filling plan must be notified to the authority
competent to approve the hydropower reservoir operation procedures and People's
Committees at all levels in the locality 10 days before the date of first water
storage.
5. The
authority to appraise and approve hydropower reservoir operation procedures,
emergency situation response plans and hydropower dam and reservoir protection
plans is prescribed as follows:
a) The
Ministry of Industry and Trade shall appraise and approve the hydropower
reservoir operation procedures and hydropower dam and reservoir protection
plans for hydropower works of special significance and hydropower works located
in at least 02 provinces;
b)
Provincial People's Committees shall appraise, approve or decentralize
authority to management agencies under their management to appraise and approve
hydropower reservoir operation procedures, emergency situation response plans
and hydropower dam and reservoir protection plans for hydropower works in areas
under their management, except for the subjects specified in point a of this
clause.
6. The
Government shall elaborate clauses 3 and 4 of this Article; regulate
applications and procedures for appraising and approving the procedures and
plans specified in clause 5 of this Article.
Article 77. Safety in stage of management and operation
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a)
Operation of hydropower works must comply with inter-reservoir operation
procedures, hydropower reservoir operation procedures, emergency situation
response plans, and hydropower dam and reservoir protection plans approved by
competent authorities;
b) Follow
procedures for registration of hydropower dam and reservoir safety; carry out
monitoring of hydropower dams and reservoirs, reservoir sedimentation; carry
out monitoring of specialized hydrometeorological monitoring; conduct periodic
or surprise inspection of works; inspect and evaluate the safety of hydropower
dams and reservoirs; formulate a plan for and carry out maintenance, repair,
upgradation and modernization of works and equipment; protect and ensure the
safety of works and downstream areas of hydropower dams and reservoirs; archive
records according to regulations;
c)
Install and maintain stable operation of water discharge warning system,
surveillance cameras, water level monitoring equipment, online information
transmission system and specialized monitoring equipment, and update
information and data to the hydropower work operation database system according
to regulations;
d)
Organize inspection and assessment of hydropower dam and reservoir safety and
follow the regime for reporting of hydropower dam and reservoir safety before
and after the annual rainy season;
dd)
Assign personnel that have appropriate expertise, and receive regular training
and refresher courses on knowledge and skills in management of hydropower
dam and reservoir safety to perform management of hydropower dam and reservoir
safety
2. Every
05 years or upon any change of the scale of the hydropower work or its item,
its owner shall review and adjust hydropower reservoir operation procedures,
emergency situation response plan and hydropower dam and reservoir protection
plan approved by the competent authority.
3. Prior
to the annual rainy season, the competent authority shall inspect the
assessment of hydropower dam and reservoir safety by hydropower work owners.
4. The
Ministry of Industry and Trade shall build, manage and operate the hydropower
work operation database system. The costs of maintenance of the hydropower work
operation database system shall be covered by the state budget and other lawful
sources of capital according to regulations of law.
5. The
Government shall elaborate this Article.
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1. The
protection corridors of hydropower works including dams, reservoirs, energy
routes, hydropower plants, other ancillary works and their vicinity shall be
determined according to the class of hydropower works; when adjusting their scale
and uses, the vicinity must be adjusted in accordance with law. The vicinity
specified in this clause includes the vicinity of dams, vicinity of energy
routes and vicinity of hydropower reservoir beds.
2. Each
hydropower work owner shall plant hydropower work protection corridor boundary
markers and provide funding for planting and maintenance of hydropower work
protection corridor boundary markers.
3.
Organizations and units managing and operating hydropower works shall implement
hydropower work protection plans approved by competent authorities; cooperate
with local regulatory bodies to inspect activities conducted within
hydropower work protection corridors; promptly report to competent
authorities when detecting any activity that poses a risk to the safety of
hydropower works.
4. The
implementation of a plan to protect significant hydroelectric works related to
national security shall comply with this Law and law on protection of
significant works related to national security.
5. Any
activity within a hydropower work protection corridor shall satisfy
requirements for safety of hydropower dams and reservoirs.
6. The
exploration and mining of sand and gravel and dredging combined with recovery
of minerals in hydropower reservoir beds must ensure safety of hydropower dams
and reservoirs as prescribed in clause 5 of this Article and comply with
regulations of law on geology and minerals and law on water resources.
7. Any
existing work within hydroelectric work protection corridors may continue to
be used for their intended purposes determined in accordance with law. In case
the existing work affects the safety and operational capacity of the hydropower
work, remedial solutions must be implemented according to the requirements laid
down by local regulatory bodies; in case of failure to implement remedial
solutions, such existing work must be dismantled or relocated according to
regulations of law on construction and other relevant regulations of law.
8. The
Government shall elaborate clauses 1 and 5 of this Article.
Chapter IX
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Article 79. Amendments to some Articles and clauses of
relevant laws
1. The
Law on Construction No. 50/2014/QH13 amended by the Law No. 03/2016/QH14, Law
No. 35/2018/QH14, Law No. 40/2019/QH14, Law No. 62/2020/QH14, Law No.
45/2024/QH15, Law No. 47/2024/QH15, Law No. 54/2024/QH15 and Law No.
55/2024/QH15 is amended as follows:
a) Point
a clause 2 of Article 52 is amended as follows:
“a) For
projects of national significance, Group A projects using public investment
capital; PPP projects under regulations of law on investment in public-private
partnership form; projects subject to investment guideline approval by the
National Assembly or the Prime Minister as prescribed by the Law on Investment,
electricity projects that organize bidding to select investors in accordance
with the Electricity Law, the formulation of a construction investment
pre-feasibility study report is compulsory;”;
b) Point
i1 is added after point i and point k clause 2 of Article 89 is amended as
follows:
“i1)
Offshore installations of offshore wind power projects to which sea area is
assigned by a competent authority for project execution;
k)
Investors in construction of the works prescribed in points b, e, g, h, i and
i1 of this clause, except detached houses prescribed in point i of this clause,
shall send notices of the time of construction commencement and construction
design dossiers according to regulations to local construction authorities for
management.”.
2. Clause
1 Article 3 of the Law on Natural Resources, Environment of Sea and Islands No.
83/2015/QH13 amended by the Law No. 35/2018/QH14 and Law No. 18/2023/QH15 is
amended as follows:
“1.
Natural resources of sea and islands include biological resources
and non-biological resources within seawater column, seabed, subsoil, on sea
surface, coastal areas, archipelago, archipelagoes, islands, low-tide
elevations and submerged features (hereinafter referred to as “islands”) that
belong to sovereignty, sovereign rights and national jurisdiction of Vietnam.”.
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2
Natural
gas pipeline transportation services and liquefied natural gas storage,
regasification, transportation and distribution services for electricity
production
The
Ministry of Industry and Trade sets specific prices
Article 80. Effect
1. This
Law comes into force from February 01, 2025.
2. The
Law on Electricity No. 28/2004/QH11 amended by the Law No. 24/2012/QH13, Law
No. 28/2018/QH14, Law No. 03/2022/QH15, Law No. 16/2023/QH15 and Law No.
35/2024/QH15 (hereinafter referred to as “the Law on Electricity No.
28/2004/QH11”) shall cease to have effect from the effective date of this Law,
except for the case specified in clauses 1, 2, 3 and 4 Article 81 of this Law.
Article 81. Transitional clauses
1. If
bidding documents for an electricity business investment project has been
approved and issued before the effective date of this Law, the investor
selection, signing and management of performance of the contract for that
project shall still comply with provisions of the Law on Electricity No.
28/2004/QH11 and other instruments providing details and instructions about
implementation thereof. The Government is required to specify the application
of transitional clauses to the bidding for selection of investors for execution
of electricity business investment projects.
2. Any
PPA signed before the effective date of this Law shall continue to be executed
according to the signed agreements. In case there are regulations different
from those on the levels of the competitive electricity market in accordance
with this Law, the parties must revise the agreement to make it suitable for
these levels.
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4. In
case an organization has submitted a valid application for issuance or revision
of its electricity operation license to the licensing authority before the
effective date of this Law but has not yet been granted an electricity license,
the license shall be issued as per the Law on Electricity No. 28/2004/QH11. In
case an organization applies for the issuance, revision, re-issuance or
extension of its electricity license in accordance with this Law, the license
shall be issued as per this Law.
5.
Regarding any project on investment in construction of an electrical grid with
a voltage of 220 kV or lower passing through at least 02 provinces for which a
valid application for approval or adjustment of investment guidelines has been
received by the Ministry of Planning and Investment before the effective date
of this Law, it may continue to be implemented in accordance with the Law on
Investment No. 61/2020/QH14 amended by the Law No. 72/2020/QH14, Law No.
03/2022/QH15, Law No. 05/2022/QH15, Law No. 08/2022/QH15, Law No. 09/2022/QH15,
Law No. 20/2023/QH15, Law No. 26/2023/QH15, Law No. 27/2023/QH15, Law No.
28/2023/QH15, Law No. 31/2024/QH15, Law No. 33/2024/QH15, Law No. 43/2024/QH15
and Law No. 57/2024/QH15.
6. For
any project on an electrical grid with a voltage of 220 kV or lower passing
through at least 02 provinces which has its investment guidelines approved by the
Prime Minister before the effective date of this Law and is now subject to
investment guideline approval by the provincial People’s Committee as specified
in point a clause 2 Article 13 of this Law, the provincial People’s Committee
shall be the authority having power to approve adjustments to investment
guidelines.
This
Law is adopted by the 15th National Assembly of Socialist Republic
of Vietnam on this 30th of November 2024 during its 8th session.
CHAIRMAN OF THE NATIONAL ASSEMBLY
Tran Thanh Man