Chương I Thông tư 57/2020/TT-BCT: Quy định chung

Chapter I

GENERAL PROVISIONS

Article 1. Scope and regulated entities

1. This Circular prescribes:

a) Methods of determining electricity sale prices and power purchase agreement value for various forms of power plants specified under Clause 2 of this Article.

b) Procedures for conducting self-inspection of power purchase agreements.

2. This Circular applies to:

a) Power plants connecting to national electrical grids with more than 30MW of gross installed capacity and power plants with 30MW of installed capacity or lower participating in electricity market on a voluntary basis;

b) Other relevant organizations and individuals;

c) This Circular does not apply to small hydroelectric power plants adopting schedules of avoidable costs, multi-objective strategic hydroelectric power plants independent power plants invested in form of BOT, power plants providing solely auxiliary services, biomass power plants, wind power stations, solar power plants, waste-to-energy plants and municipal solid waste-to-energy plants;

Other power plants not specified by Prime Minister and Ministry of Industry and Trade shall conform to Article 9 of this Circular.

Article 2. Term interpretation

In this Circular, terms below are construed as follows:

1. “Seller” refers to a generating entity owning power plants.

2. “Buyer” refers to Vietnam Electricity (EVN) (or representatives thereof by authorization), Northern Power Corporation, Central Power Corporation, Southern Power Corporation, Hanoi Power Corporation, Ho Chi Minh Power Corporation, primary energy consumers and other electricity traders according to regulations of power market.

3. “project developer” refers to an organization or individual directly managing, utilizing capital to invest in power plant construction projects, power line and electrical substation construction investment projects.

4. “connection costs” refer to costs for construction of power lines and electrical substations from power plants to connection points.  

5. “specific connection costs” refer to costs implemented by project developers or allocated for:

a) Constructing power lines and electrical substations from power plants to load capacity of power plants to connection points upon being assigned by competent authority to conduct construction investment.

b) Constructing power lines and electrical substations from power plants to connection points according to agreements between project developers and the Buyer.   

6. “connection point” refers to a point at which electrical equipment, electrical grids and power plants are connected to national electrical grid. Depending on electrical grid structure and connecting lines, connection points are determined to be:

- The final points of ceramic insulators holding transmission lines connecting to disconnector switches of power stations or power plants in case of overhead power lines.

- The ceramic insulators of disconnector switches of power stations or power plants in case of underground cable.

In case of connection points other than those specified above, substitute connection points shall be agreed upon by the Seller and power distributors or transmitters.

7. “delivered and received electricity” refers to electricity provided to the Buyer by the Seller to serve payment for electricity sale between the Buyer and the Seller.

8. “generating entity” refers to an organization or individual owning at least a power plant as per Vietnam laws.

9. “electrical system and national electricity market operator” (hereinafter referred to as “operator”) refers to National Load Dispatch Center or other load dispatch centers depending on level of development of electricity market.   

10. “parties” refer to the Buyer and the Seller under power purchase agreements.

11. “liquefied natural gas (LNG) storage, regasification and distribution contracts” refer to agreements between generating entities or fuel traders and entities investing, managing LNG storage to store, perform regasification, distribute and supply gas materials for powers plants signed as per applicable laws and ensuring competitive price and transparency.

12. “power purchase agreement (PPA)” refers to a contract serving power purchase of each power plant and is specified under Annex 3 of this Circular. 

13. “gas sale and purchase agreement (GSPA)” refers to a gas purchase agreement between gas seller and mine owner to purchase natural gas extracted domestically and provide to gas seller   

14. “gas sale agreement (GSA)” refers to gas sale agreement between gas seller and consumer.

15. “fuel (coal, natural gas, LGN) sale contract” refers to an agreement between a generating entity and a fuel trading entity to provide fuel for power plants, is signed according to applicable law and guarantees legitimate fuel origin, competitive price and transparency.

16. “fuel (coal, natural gas, LGN) transportation agreement” refers to an agreement between a generating entity or a fuel trading entity and a fuel transport service provider to transport fuel to power plants, is signed according to applicable law and guarantees competitive price and transparency.

17. “base year” refers to a year in which total investment or total revised project investment for calculating electricity generation price is approved.

18. “other power plants” refer to power plants not specified under Points a and c Clause 2 Article 1 hereof.

19. “new power plants” refer to power plants that have not signed first time PPA.

20. “construction commencement date” refers to the date on which the Seller is eligible for commencing construction according to Construction Law.

21. “net heat loss rate” refers to amount of heat required to produce 1 kWh of electricity at delivery point (BTU/kWh or kJ/kWh or kcal/kWh).

22. “total investment” refers to total construction investment of a project identified according to applicable laws and satisfactory to fundamental design and other details under construction investment feasibility reports. Total investment includes: compensation, assistance and relocation costs (if any); construction cost; equipment cost; project management cost; construction investment and consultancy cost; other costs; backup costs for additional workload and inflation.

23. “total revised investment” refers to total investment valid at the time of negotiating electricity price, in which total investment is revised to calculate electricity price when revising construction investment projects in following cases:

+ Natural disasters, environmental emergencies, conflicts, fire and other force majeure;

+ Appearance of factors that introduce higher effectiveness for the projects once project developers have proven the financial and socio-economic efficiency brought upon by revising the projects; 

+ Direct impact on the projects due to changes to construction planning;

+ Construction price indices publicized by Ministry of Construction, People’s Committees of provinces during project execution period exceeding construction price indices employed to calculate for inflation scenario under approved total project investment;

+ Project revision as a result of investment guideline revision.

24. “investment for settlement” refers to all legitimate costs required in investment process to bring projects into use.  Legitimate costs are all costs within the scope of approved projects, designs, estimates; construction contracts signed as per the law, including approved amendments thereto. Investment for settlement must be within total approved (or revised) investment as per the law.

25. “Circular No. 56/2014/TT-BCT” refers to Circular No. 56/2014/TT-BCT dated December 19, 2014 of Minister of Industry and Trade on methods of determining electricity generation price; procedures for inspecting power purchase agreements.