Chương V: Tổ chức thực hiện

CIRCULAR

METHODS FOR FORMULATION AND PROCEDURES FOR APPROVAL OF ELECTRICITY ANCILLARY SERVICE PRICE; CONTENTS OF CONTRACTS FOR PROVISION OF ANCILLARY SERVICES

Pursuant to Law on Electricity dated November 31, 2024;

Pursuant to Government’s Decree No. 96/2022/ND-CP dated November 29, 2022 defining functions, tasks, powers and organizational structure of the Ministry of Industry and Trade of Vietnam; Government’s Decree No. 105/2024/ND-CP dated August 01, 2024 on amendments to Decree No. 96/2022/ND-CP and Decree No. 26/2018/ND-CP dated February 28, 2018 on Charter of organization and operation of Vietnam Electricity;

At the request of the Director of Electricity Regulatory Authority of Vietnam;

The Minister of Industry and Trade promulgates Circular on methods for formulation and procedures for approval of electricity ancillary service price; contents of contracts for provision of ancillary services.

Chapter I

GENERAL PROVISIONS

Article 1. Scope and regulated entities

1. This Circular elaborates some Articles of the Law on Electricity No. 61/2024/QH15, including:

a) Clause 5, Article 44 on basic details of contracts for provision of ancillary services;

b) Point a, Clause 6, Article 51 on methods of formulation, documents, and procedures for approval of electricity ancillary services.

2. This Circular applies to Vietnam Electricity (EVN), electricity traders, units operating electricity systems and electricity markets, and ancillary service providers.

Article 2. Interpretation of terms

For the purposes of this Circular, the terms below shall be construed as follows:

1. Expected available capacity of a generator group refers to the maximum expected capacity that can be achieved when the generator group operates continuously, stably, and maintained for a specified period agreed upon by both parties in accordance with the technical specifications of such generator group.

2. Ancillary services refers to technical services serving the stable and reliable operation of the national power system, including:

a) Frequency regulation service;

b) Rapid start service;

c) Must-run operation service, including regular must-run ancillary services of power plants to ensure the capable of supplying electricity and must-run ancillary services of gas turbine power plants as instructed by the units operating electricity systems and electricity markets to ensure the capable of supplying electricity (hereinafter referred to as “must-run ancillary services of gas turbine power plants”) when the power plant operates in simple cycle or its main fuel is lacking and a portion or all of the ancillary fuel is used.

d) Voltage regulation ancillary service;

dd) Black start ancillary service and other relevant services as stipulated by the Minister of Industry and Trade.

3. Ancillary service provider refers to an entity owning one or more power plants that is mobilized to provide ancillary services as requested by units operating electricity systems and electricity markets.

4. Units operating electricity systems and electricity markets refer to units responsible for the functions of national power system dispatch units and electricity market transaction regulation units according to the Law on Electricity (currently the National Power System and Market Operator Single-member Limited Liability Company – NSMO)

5. Dispatch order refers to an order to control and manage operation mechanism of power system in real-time.

6. The limit of forced outage hours due to unexpected factors refers to the total number of forced outage hours due to unexpected factors depending on the specific characteristics of each generator group and power plant, including the number of outage hours due to malfunctions and the number of outage hours for repairing or maintaining equipment outside of the approved plans.

7. Year N refers to the Gregorian calendar year from January 1 to December 31 of the year in which the ancillary service price is applicable.

8. Year N-1 refers to the Gregorian calendar year immediately preceding Year N.

9. Year N-2 refers to the Gregorian calendar year immediately preceding Year N-1.

Chapter II

METHODS FOR DETERMINING ANCILLARY SERVICE PRICES AND COSTS

Article 3. Rules for determining ancillary service price

1. For providers of rapid start services and regular must-run ancillary services of power plants to ensure capable of supplying electricity: The ancillary service price shall be determined based on the principle of adequate compensation for annual reasonable and legitimate costs (reasonable profit margin included) of the ancillary service provider. The ancillary service price does not include value-added tax, other taxes, or any other payments required by relevant laws and regulations. The price of ancillary services includes:

a) Fixed price;

b) Variable price;

c) Start price;

d) Other costs (if any).

2. The price of frequency regulation services shall be determined as follows:

a) For power plants under EVN which are on the list of providers of frequency regulation services specified in the regulations on determining generation cost of power plants before participating in the competitive electricity market for certain types of power plants promulgated by the Minister of Industry and Trade: Reasonable and legitimate costs incurred from providing frequency regulation ancillary services are included in the annual cost of the power plant as stipulated in the regulations on determining generation cost of power plants before participating in the competitive electricity market for certain types of power plants promulgated by the Minister of Industry and Trade;

b) For power plants participating in the electricity market on the list of providers of frequency regulation services: Revenue is calculated according to the regulations on competitive wholesale electricity market operation of the Minister of Industry and Trade.

3. The price of voltage regulation ancillary services, must-run ancillary services of gas turbine power plants, and black start ancillary services shall be determined as follows:

a) For power plants under EVN which are on the list of providers of voltage regulation ancillary services and black start ancillary services specified in the regulations on determining generation cost of power plants before participating in the competitive electricity market for certain types of power plants promulgated by the Minister of Industry and Trade: Reasonable and legitimate costs incurred from providing voltage regulation ancillary services and black start ancillary services are included in the annual cost of the power plant as stipulated in the regulations on determining generation cost of power plants before participating in the competitive electricity market for certain types of power plants promulgated by the Minister of Industry and Trade;

b) For power plants on the list of providers of voltage regulation ancillary services, must-run ancillary services of gas turbine power plants, and black start ancillary services which are not affiliated to EVN specified in the Regulation on determining generation cost of power plants before participating in the competitive electricity market for certain types of power plants promulgated by the Minister of Industry and Trade: These ancillary service providers shall negotiate ancillary service prices and sign contracts for provision of ancillary services with EVN. Methods for determining the costs of voltage regulation ancillary services, must-run ancillary services of gas turbine power plants, and black start ancillary services shall comply with regulations in Chapter II of this Circular.

Section 1. METHODS OF DETERMINING THE PRICE OF RAPID START SERVICES AND REGULAR MUST-RUN ANCILLARY SERVICES OF POWER PLANTS TO ENSURE CAPABLE OF SUPPLYING ELECTRICITY

Article 4. Methods for determining fixed price

1. Fixed price (g_cd) of ancillary service providers shall be determined using the following formula:

Where:

g_cd: Fixed price (VND/( kW.month));

G_cd,N: Total fixed revenue in year N of the ancillary service provider (VND)

: Planned annual coefficient of available capacity of the ancillary service provider determined as per Clause 2 of this Article;

P_kd,i: Expected available capacity of generator group i in year N (kW);

n: Number of generator groups of the ancillary service provider.

The ancillary service provider shall determine expected available capacity of generator groups in year N, which shall be negotiated and stipulated in the contract for provision of ancillary services with EVN. Such parameter shall serve as the basis for determining the fixed price of the ancillary service provider.

2. Planned annual coefficient of available capacity of the ancillary service provider shall be determined using the following formula:

Where:

 Number of hours for repairs of generator group i in year N (hour);

H_nam: Number of hours in year N (hours)

H_DMCB,i: Limit of forced outage hours due to unexpected factors of generator group i in year N (hour), agreed upon by both parties;

n: Number of generator groups of the ancillary service provider.

Article 5. Methods for determining total fixed revenue

Fixed revenue in year N (G_cd) of ancillary service providers shall be determined using the following formula:

G_{cd =} C_{KH +} C_{OM,N +} C_{LVDH +} G_{DC +} LN_N

Where:

C_KH: Total fixed asset depreciation costs in year N of the ancillary service provider shall be determined in accordance with Clause 1 of this Article (VND);

C_OM,N: Total fixed operation costs in year N determined in accordance with Clause 2 of this Article (VND);

C_LVDH : Total costs for interest payments and lending fees for investments in assets payable in year N of the ancillary service provider (VND);

G_DC: Fixed revenue adjusted in year N (VND);

LN_N: Normal profit in year N (VND).

1. Total depreciation costs of fixed assets in year N (C_KH) of the ancillary service provider, determined based on the value of existing fixed assets and projected assets to be put into operation in Year N, following the regulations on the management, utilization, and depreciation of fixed assets promulgated by the Ministry of Finance or other competent authorities. Total fixed asset depreciation cost is the expected value of fixed asset depreciation to be allocated in year N at the time where both parties negotiate the pricing plan.

In cases where there is a difference between the expected fixed asset depreciation value in the pricing plan for ancillary services in year N-1 and the actual depreciation value in year N-1, this difference shall be considered by both parties for adjusting the depreciation cost in pricing plan for ancillary services in year N.

2. Fixed operating costs in year N (C_OM,N) of ancillary service providers shall be determined using the following formula:

C_OM,N = C_VLcd + C_TL + C_SCL+ C_MN + C_K

Where:

C_VLcd: Total fixed material costs for year N (VND);

C_TL: Total payroll costs in year N (VND);

C_SCL: Total major repair costs in year N (VND);

C_MN: Total outsourced service costs in year N (VND);

C_K: Total other monetary costs in year N (VND).

a) Methods for determining total material costs (C_VLcd):

Total fixed material cost in year N (C_VLcd) of the ancillary service provider shall be determined based on data audited by an independent audit firm in year N-2, excluding any extraordinary and abnormal costs incurred in Year N-2, with annual indexation adjusted based on average Consumer Price Index (CPI) of the three most recent years prior to the cost determination period, as published by the central statistical agency. Additionally, the reasonable projected costs arising in Year N that were not accounted for or not fully accounted for in Year N-2 shall be included.

In cases where the power plant is recently put into operation or provides ancillary services without having its financial statements audited by an independent audit firm, within the first 02 years, the ancillary service provider shall formulate, negotiate and reach an agreement with EVN regarding the total fixed material cost in year N (C_VLcd).

b) Methods for determining total payroll cost (C_TL)

Total payroll cost in year N (C_TL) includes total wages and wage-related expenses such as electrical safety allowances, health insurance, social insurance, unemployment insurance, and trade union fees, determined in accordance with relevant legal regulations;

In cases where there is a difference between the total wages and wage-related expenses (such as electrical safety allowances, health insurance, social insurance, unemployment insurance, and trade union fees) in the pricing plan for ancillary services in year N-2 and the actual total wages and wage-related expenses in year N-2 according to the regulations of the competent authorities, both parties shall consider adjusting the pricing plan for ancillary services in year N.

c) Methods for determining total major repair cost (CSCL)

Total major repair cost (C_SCL) in year N shall be agreed upon by both parties based on the value approved by competent authorities. In cases where there is a difference between the expected value of major repair in the pricing plan for ancillary services in year N-2 and the actual value in year N-2 due to changes in repair items, repair schedule, and repair content, both parties shall consider adjusting the major repair cost in the pricing plan for ancillary services in year N.

d) Methods for determining total outsourced service cost (C_MN)

Total outsourced service cost expected in year N (C_MN), including:

Costs paid to organizations, individuals outside the unit providing the following services: Electricity, water, software, telecommunications, newspapers; expenses for purchasing and using technical documents; maintenance costs for computational software; auditing service fees; security service fees (if any); office rental expenses; property insurance costs;

Costs for other services as regulated by contract signed for providing managing and operating services for the ancillary service provider in year N.

Total outsourced service cost in year N of the ancillary service provider shall be determined based on data audited by an independent audit firm in year N-2, excluding any extraordinary and abnormal costs incurred in Year N-2, with annual indexation adjusted based on average CPI of the 03 most recent years prior to the cost determination period, as published by the central statistical agency. Additionally, the reasonable projected costs arising in Year N that were not accounted for or not fully accounted for in Year N-2 shall be included.

In cases where the power plant is recently put into operation or provides ancillary services without having its financial statements audited by an independent audit firm, within the first 02 years, the ancillary service provider shall formulate, negotiate and reach an agreement with EVN regarding the total outsourced service cost in year N.

dd) Methods for determining total other monetary costs (C_K)

Total other monetary costs in year N (C_K) shall not include taxes and fees.

Costs for shift meals and land rent in year N shall be determined as regulated. Total other monetary costs in year N (C_K) excluding costs for shift meals and land rent of the ancillary service provider shall be determined based on data audited by an independent audit firm in year N-2, excluding any extraordinary and abnormal costs incurred in Year N-2, with annual indexation adjusted based on average CPI of the 03 most recent years prior to the cost determination period, as published by the central statistical agency. Additionally, the reasonable projected costs arising in Year N that were not accounted for or not fully accounted for in Year N-2 shall be included.

In cases where the power plant is recently put into operation or provides ancillary services without having its financial statements audited by an independent audit firm, within the first 02 years, the ancillary service provider shall formulate, negotiate and reach an agreement with EVN regarding the total other monetary costs in year N.

e) Exchange rate differences in year N shall be calculated based on loan agreements in foreign currency, actual repayment plan, and the expected exchange rate payable in year N. In cases where there is a difference between the expected exchange rate difference in the pricing plan for ancillary services in year N-2 and the actual exchange rate difference in year N-2, both parties shall consider adjusting the exchange rate difference in the pricing plan for ancillary services in year N.

In cases where the power plant is recently put into operation or provides ancillary services without having its financial statements audited by an independent audit firm, within the first 02 years, the ancillary service provider shall formulate, negotiate and reach an agreement with EVN regarding the total exchange rate difference in year N.

g) In cases where material costs, outsourced service costs, and other monetary costs in year N have been audited and settled, both parties may agree and calculate the corresponding costs in year N based on such data.

3. Interest cost and lending fees payable in the year N (C_LVDH): shall be determined based on loan agreements or valid documents between investors and credit institutions or banks providing the loans.

4. Adjusted fixed revenue (GDC) of the ancillary service provider in year N shall be determined based on the difference between the actual coefficient of available capacity and the coefficient of available capacity in the pricing plan due to changes in maintenance schedule and cessation for maintenance in year N-2 (excluding cessation duration shortened due to the request of the NSMO unit to ensure power supply of the power plant).

5. Profit in year N (LN_N) shall be determined using the following formula:

LN_N = ROE x V_CSH

Where:

ROE: Return on equity in year N applied to the ancillary service provider (%), not exceeding the pre-tax profit rate stipulated in the calculation of the average electricity retail price plans in accordance with regulations on means and interval for adjusting average electricity retail prices

 V_CSH: Equity of the ancillary service provider shall be determined based on the equity invested in the power plant as of December 31 of year N-2 according to the audited financial statements (VND)

In cases where the power plant is recently put into operation or provides ancillary services, the ancillary service provider shall provide documents on equity forming the assets of the power plant providing ancillary services.

Article 6. Methods for determining long-term ancillary service price

1. The pricing cycle equals the long-term contract period for supplying ancillary services:

Price of long-term ancillary services shall be determined for each year from year N (which is the first year in the pricing cycle) until the end of the contract period.

2. Rules of determining annual prices:

a) Fixed price, total fixed revenue, fixed asset depreciation costs, interest rates, fixed material costs, payroll costs, major repair costs, outsourced service costs, other monetary costs, and profit for each year within the pricing cycle shall be determined in accordance with Article 5, Section 1, Chapter II of this Circular..

b) Material costs, outsourced service costs, other monetary costs (excluding shift meal costs and land rent) in year N shall be determined according to regulations similar to those under Clause 2, Article 5, Section 1, Chapter II of this Circular. From year N+1 until the end of the contract period, these costs are adjusted annually based on the average CPI of the 03 most recent years prior to the cost determination period, as published by the central statistical agency from year N. Shift meal costs and land rent are determined according to relevant laws.

3. Mechanism for adjusting annual ancillary service prices:

a) Before November 1st each year, when there are settlement and audit data from the previous consecutive year, any difference in major repair costs, payroll costs, exchange rate differences, coefficients of available capacity between the pricing plan and the actual implementation from the previous year shall be considered for adjustment in pricing plan for the next year;

b) Before November 1st each year, any difference in fixed asset depreciation costs between the pricing plan and the actual implementation of this year shall be considered for adjustment in pricing plan for the next year;

c) Before November 1st each year, when there is audit data from the previous consecutive year regarding material costs, outsourced service costs, other monetary costs, both parties shall consider updating these costs in the pricing plan for the next year.

Article 7. Methods for determining variable price

1. Variable price  of the ancillary service provider providing ancillary services at the request of units operating electricity systems and electricity markets shall be determined according to the following formula:

Where:

: Variable price of generator group i generating at power level j (dong/kWh);

b_ij: Net specific fuel consumption norm of generator group i at power level j, determined according to the fuel consumption curve of the generator group (kg/kWh or BTU/kWh);

G_nl : Price of fuel used for electricity generation (VND/kg or VND/BTU);

C_{vlp,i :} Cost norm of auxiliary materials used for generating 01 kWh of electricity by generator group i (dong/kWh);

i: Generator group i of the ancillary service provider;

A_tt: Power consumption for power storage (kWh);

G_sx: Retail electricity prices corresponding to peak, off-peak, and normal hours for manufacturing fields according to voltage levels (VND/kWh);

C_CSPK: Cost of purchasing reactive power (VND//kWh).

2. Ancillary service providers shall develop the fuel consumption curve of the generator group and cost norm of auxiliary materials based on the electricity generation output used for electricity generation. These curve and norms shall serve as the basis for negotiating, compiling the contract for provision of ancillary services between the ancillary service provider and EVN, and determining variable price of the generator group.. The curve and norms of year N-1 may be applicable to year N if necessary.

Article 8. Methods for determining start price

1. Start price  of generator groups shall be determined for each start operation in each mode of start, using the following formula:

Where:

: Start price of generator group i in start mode j (VND);

M_i,j: Fuel consumption norm for starting up generator group i in start mode j (kg or BTU);

G_nlkđ: Price of fuel used for starting up the generator group (VND/kg or VND/BTU);

: Power consumption norm for self-starting the generator group i in start mode j (kWh);

g_kđ: Price of electricity purchased from the power system by the ancillary service provider for starting up the generator group, determined based on the current retail electricity price (average hourly price) generating at the voltage level for self-consumption (VND/ kWh);

: Fuel consumption norm for auxiliary fuel used for starting up generator group i in start mode for coal-fired power plants (kg);

g_nlp: Price of auxiliary fuel used for starting up generator group for coal-fired power plants (VND/kg);

: Fuel consumption norm for auxiliary fuel used for starting up generator group i in start mode for coal-fired power plants (kg);

j: Start mode of the generator group (hot, warm, or cool mode)

i: Generator group i of the ancillary service provider.

2. Ancillary service providers shall develop the consumption norms of fuel, auxiliary materials, and self- consumpted power for hot start, warm start, and cool start of each generator group. These norms shall serve as the basis for negotiating, compiling the contract for provision of ancillary services between the ancillary service provider and EVN, and determining variable price of the generator group. The norms of year N-1 may be applicable to year N if necessary.

Section 2. METHODS FOR DETERMINING THE COSTS OF BLACK START ANCILLARY SERVICES, VOLTAGE REGULATION ANCILLARY SERVICES, AND MUST-RUN ANCILLARY SERVICES OF GAS TURBINE POWER PLANTS

Article 9. Methods for determining costs of black start services

1. For a thermal power plants:

Total black start service costs (G_k,i,j) of the ancillary service provider shall be determined using the following formula:

a) Black start service cost (C_k,i,j,l) for each start operation in each mode of start shall be determined using the following formula:

Where:

C_k,i,j,l: Black start service cost of generator group i in start mode j in start time l (VND)

_Mi,j: Fuel consumption norm for black start of generator group i in start mode j (kg or BTU);

G_nlkđ: Price of fuel used for black start of the generator group (VND/kg or VND/BTU);

 : Consumption norm of auxiliary fuel for black start of generator group i in start mode j (kg);

g_nlp: Price of auxiliary fuel used for black start of the generator group (VND/kg);

: Cost of auxiliary materials used for black start of generator group i in start mode j (VND);

j: Start mode of the generator group (hot, warm, or cool)

i: Generating set i of the ancillary service provider;

L: Total number of black starts;

l: Black start time.

b) The maintenance cost of black start (C_dt) includes the cost of black start simulation as regulated in the regulations of black start and restoration of the national electricity system promulgated by the Ministry of Industry and Trade of Vietnam and the maintenance cost of equipment serving black start (if any).

2. For a hydropower plant:

a) For power plants under EVN specified in the Regulation on determining generation cost of power plants before participating in the competitive electricity market for certain types of power plants promulgated by the Minister of Industry and Trade: Reasonable and legitimate costs incurred from providing black start services are included in the annual cost of the multi-purpose strategic hydropower plant as stipulated in Regulation on determining generation cost of power plants before participating in the competitive electricity market for certain types of power plants promulgated by the Minister of Industry and Trade;

b) For power plants other than those affiliated to EVN as specified in the Regulation on determining generation cost of power plants before participating in the competitive electricity market for certain types of power plants promulgated by the Minister of Industry and Trade: Total black start costs (G_k,i,j) of ancillary service providers shall be determined by the maintenance cost of black start (C_dt) in accordance with point b Clause 1 of this Article.

3. Payment terms for black start costs shall be agreed upon by both parties in their contract for provision of ancillary services.

Article 10. Methods for determining costs of voltage regulation service

1. Total voltage regulation service costs shall be determined by the costs incurred by the power plants providing voltage regulation services during the time generator groups are mobilized for voltage regulation (R_cb), as follows:

Where:

R_cb : Amounts payable by the Buyer to the Provider for the electricity received for voltage regulation (VND);

D: Total number of days in the month;

d: The day on which electricity output is received for the purpose of compensation;

A_{cb :} Electricity output received for voltage regulation according to the table of electricity received issued by the ancillary service provider (kWh);

G_sx: Retail electricity prices corresponding to peak, off-peak, and normal hours of manufacturing fields according to the voltage levels for voltage regulation service as prescribed by the competent authorities (VND/kWh);

c_bd: Maintenance cost of equipment (if any).

2. Payment terms for the voltage regulation costs shall be agreed upon by both parties in their contract for provision of voltage regulation ancillary services.

Article 11. Methods for determining costs of must-run ancillary services of gas turbine power plants

1. Costs of must-run ancillary services of gas turbine power plants includes fuel costs, operation costs, and maintenance costs as specified in the contract for provision of ancillary services. Fixed costs (or capacity fees) and other costs agreed by parties must comply with legal regulations

2. Payment terms for costs of must-run ancillary services of gas turbine power plants shall be agreed upon by both parties in their contract for provision of ancillary services.

Chapter III

PROCEDURES FOR FORMULATION, APPRAISAL, AND APPROVAL OF ANCILLARY SERVICE PRICES

Article 12. Procedures for formulation, appraisal, and approval of ancillary service prices

1. Before the 25th of November of year N-1, EVN shall submit the prices of rapid start services and regular must-run ancillary services of power plants for appraising the capable of supplying electricity in year N (for annual ancillary service contracts) or each year within the contract term (for long-term ancillary service contracts) to the electricity authority affiliated to the Ministry of Industry and Trade in accordance with Articles 4, 5, 6, 7, and 8 of this Circular.

2. The electricity authority affiliated to the Ministry of Industry and Trade shall verify the validity of the documents and request the Users and providers to supplement any missing documents as required. EVN and ancillary service providers shall submit supplementary documents within 5 working days from the date of receiving the request from the electricity authority affiliated to the Ministry of Industry and Trade.

3. Within 25 days from the date of receiving the valid prices of ancillary services, the electricity authority affiliated to the Ministry of Industry and Trade shall appraise the prices in accordance with Clause 1 of this Article and submit them to the Minister of Industry and Trade for approval the prices of ancillary services in year N of providers of rapid-start backup power services and must-run ancillary services of gas turbine power plants to ensure the capable of supplying electricity.

Article 13. Documents for approval of ancillary service prices

These documents shall be submitted to the electricity authority affiliated to the Ministry of Industry and Trade for appraisal, then be submitted to the Ministry of Industry and Trade for approval of the prices of rapid-start backup power services and regular must-run ancillary services of power plants to ensure the capable of supplying electricity, including:

1. Written proposal for approving ancillary service prices;

2. Explanatory documents and calculation of electricity ancillary service prices, including:

a) Reports on the economic and technical performance of power plants as of September 30 and estimated until the end of December of year N-1, including:

Reports on the electricity output delivered and average fuel consumption rates for Year N-1;

Reports on production and business results: Revenue, costs of ancillary service providers as of September 30 and estimated revenue, costs, and profits of power plants until the end of December of year N-1.

b) Explanatory documents and calculation of electricity ancillary service prices in year N include:

Explanatory documents and calculation sheet of production and business plan: including depreciation costs, loan interest costs, payroll costs, auxiliary material costs, major repair costs, outsourced service costs, other monetary costs, drying costs, exchange rate differences, normal profit to determine the fixed costs of power plants and fixed prices for year N of power plants.

c) Supporting documents:

Audited financial statements for Year N-2 and cost report by each factor of the production of electricity in the year N-2, which have been conducted by an independent audit firm (if any);

Major repair plan for year N of generator groups of ancillary service providers;

Expected available capacity registration for generator groups and ancillary service providers in year N;

Fuel consumption curves of generator groups of ancillary service providers;

Auxiliary material norms used for electricity generation of ancillary service providers;

Fuel and self-use electricity consumption norms for starting generator groups under different start modes;

Electricity consumption norms for drying generator groups during standby;

Expected fuel and material prices for year N for electricity generation and regular maintenance.

3. These documents shall be prepared in written form, or as a legally valid electronic message in accordance with legal regulations. EVN shall send 01 set of documents in the form of electronic message and 01 set of documents in written form (if necessary) to the electricity authority affiliated to the Ministry of Industry and Trade.

Chapter IV

MAIN CONTENTS OF CONTRACT FOR PROVISION OF ANCILLARY SERVICES

Article 14. Main contents of Contract for provision of ancillary services

1. Main contents of Contract for provision of ancillary services specified in the Appendix attached hereto shall serve as the basis for the negotiation and signing of contract between the Users and providers of ancillary services. Users and providers of ancillary services shall negotiate to amend or supplement main contents, supplement other provisions in their contract for provision of ancillary services in accordance with Vietnamese laws and regulations.

2. The contract must be made in Vietnamese language. Users and providers of ancillary services may agree to supplement the contract with the use of the English language.

Chapter V

IMPLEMENTATION

Article 15. Implementation

1. The electricity authority affiliated to the Ministry of Industry and Trade shall:

a) Appraise and request the Minister of Industry and Trade to approve the electricity ancillary service prices of power plants providing rapid-start ancillary services and regular must-run ancillary services of power plants to ensure the capable of supplying electricity.

b) Provide guidance and inspect the implementation of this Circular.

2. EVN shall:

a) Negotiate and agree on ancillary service prices with auxiliary service providers based on the list of power plants providing ancillary services published in accordance with the regulations on dispatch, operation, handling, troubleshooting, black start, and restoration of the national electricity system promulgated by the Ministry of Industry and Trade of Vietnam; submit the agreed ancillary service prices to the electricity authority affiliated to the Ministry of Industry and Trade of Vietnam for approval.

b) Negotiate prices and costs; sign contract for provision of ancillary services with ancillary service providers.

3. Providers of rapid-start ancillary services, regular must-run ancillary services of power plants to ensure the capable of supplying electricity, frequency regulation ancillary services, voltage regulation ancillary services, and black start ancillary services shall:

a) Negotiate, sign contracts for ancillary service provision;

b) Provide information; ensure the accuracy and validity of the data and documents provided to the relevant units and authorities during the negotiation of prices, costs, and contract for provision of ancillary services.

Article 16. Effect

1. This Circular shall come into forces from February 01, 2025.

2. Circular No. 21/2015/TT-BCT dated June 23, 2015 of the Minister of Industry and Trade and Circular No. 46/2018/TT-BCT dated November 15, 2018 of the Minister of Industry and Trade shall be annulled.

3. Article 8 of Circular No. 12/2024/TT-BCT dated August 1, 2024 of the Minister of Industry and Trade shall be annulled.

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