Chương II Thông tư 57/2020/TT-BCT: Phương pháp xác định giá phát điện

Chapter II

METHODS OF DETERMINING ELECTRICITY GENERATION PRICE

Section 1. METHODS OF DETERMINING ELECTRICITY GENERATION PRICE FOR NEW POWER PLANTS

Article 3. Principles of determining electricity generation price

1. Electricity generation price of power plants shall be developed on the basis of:

a) Legitimate costs of project developers throughout economic life of projects;

b) Internal rate of return (IRR) does not exceed 12%.

2. Electricity generation price of power plants consists:

a) PPA price: Agreed upon by both parties and developed according to Article 4 of this Circular;

b) Specific connection price: Agreed upon by both parties and determined according to Article 8 of this Circular.

3. Electricity generation price does not include VAT, water resource tax, fee for licensing rights to extract water resource, forest environmental service fee, environmental protection fee for solid waste and for industrial wastewater (applicable to thermal power plants) and other taxes, fees, monetary charges according to the Government (except for fees and charges included in electricity price solutions).

4. PPA price for comparing with price range for electricity generation in the base year

PPA price must be within price range for electricity generation in the base year of power plants issued by Minister of Industry and Trade, in which, PPA price of thermal power plants for comparing with price range for electricity generation in the base year shall be calculated on the basis of cost components corresponding to cost components serving calculation of price range for electricity generation.

Article 4. Methods of determining PPA price in the base year of power plants

PPA price, or PC, (VND/kWh) shall be determined using following formula:

PC = PCD + PBD

1. PCD (VND/kWh) refers to fixed price in the base year and is determined using following formula:

PCD = FC + FOMCb

In which:

FC: Fixed cost determined under Article 5 of this Circular (VND/kWh);

FOMCb­­: Operational and maintenance costs in the base year determined under Article 6 of this Circular (VND/kWh);

2. PBD (VND/kWh) refers to variable prices in the base year.

a) For thermal power plants, PBD shall be determined using following formula:

In which:

: Components of variable price revised according to variation of cost of primary fuel (coal, natural gas, LNG) of power plants in the base year, determined using method under Clause 1 Article 7 of this Circular (VND/kWh);

: Components of variable price revised according to variation of cost of secondary fuel (oil) of power plants in the base year, determined using method under Clause 2 Article 7 of this Circular (VND/kWh);

: Components of variable price revised according to other variations of power plants in the base year, determined using method under Clause 3 Article 7 of this Circular (VND/kWh).

: Transportation cost for primary fuel for generating electricity in the base year, determined using method under Clause 4 Article 7 of this Circular (VND/kWh).

b) For thermal power plants, regular maintenance cost in the base year is calculated in operational and maintenance cost according to major repair cost and other costs of the base year, thus, PBD equals 0.

3. Costs for experimenting, testing operation and inspecting for acceptance of power plants:

a) For costs for experimenting, testing operation and inspecting for acceptance deriving before commercial operation date (COD): payment for such costs before the COD shall be agreed upon by both parties on the basis of total approved project investment; 

b) For costs for test operation deriving during operation of power plants: Agreed upon by both parties.

Article 5. Methods of determining average fixed cost of power plants

1. Average fixed cost (FC) of power plants is determined on the basis of financial analysis of projects in Schedules 1 and 2 under Annex 2 attached to this Circular. Input indices to determined FC of power plants are determined according to Clause 2 of this Article.

2. Input indices used for calculating FC of power plants

a) Total investment:

Total investment refers to total investment valid at the time of negotiating electricity price for calculating electricity price, including all costs within investment responsibility of the Seller until the connection points of power plants which consist of:

- Power plants;

- Infrastructure, wharfs for power plants, LNG import ports (for power plants utilizing LNG), other relevant costs and costs allocated to projects (if any);

Specific connection costs shall conform to Article 8 of this Circular.

b) Economic life: Conform to Annex 1 of this Circular, unless otherwise prescribed by competent authority;

c) Electricity generated on average over multiple years at generator terminals:

- For thermal power plants: Determine according to capacity of generator terminals according to approved design and average number of hour in which power plants are operating at maximum capacity (Tmax) over several years.    Tmax of power plants is determined according to approved design but must not be lower than Tmax specified under Annex 1 hereof, unless otherwise approved by competent authority in writing. Average capacity degradation rate for economic life of power plants shall be agreed upon by both parties on the basis of technical documents of equipment manufacturers (kWh);

- For hydroelectric power plants: Determine according to approved fundamental design or written approval of competent agencies (kWh).

d) Percentage of used electricity and depreciation of step-up transformers of power plants, depreciation of power lines from step-up transformers of power plants to points of connection (if any): Is a value smaller than value determined according to approved fundamental design of power plants or according to technical documents of equipment manufacturers (%);

dd) Period in which depreciation of each primary fixed asset category is accounted for: Determined on the basis of period in which depreciation of each primary fixed asset category is accounted for based on the period regulated by Ministry of Finance from time to time or based on written permission of competent authority (if any) (year);

e) Owner’s equity rate, loan capital and investment capital phases in total investment:

Determined according to decision on approving investment projects and capital mobilization situation at the time of negotiating, conforming to regulations and law issued by competent authority. Minimum owner’s equity shall be 15% of total investment of projects;

g) Interest rate and repayment period during operation period: Based on loan agreements, documents between project developers and credit institutions, lending banks;

h) Corporate income tax rate, other taxes, fees: Determined according to relevant law provisions.

Article 6. Methods of determining operational and maintenance costs of power plants

Operational and maintenance cost in the base year FOMCb (VND/kWh) is determined using following formula:

In which:

: Operational and maintenance cost according to major repair cost and other costs of the base year, determined according to Clause 1 of this Article (VND/kWh);

: Operational and maintenance cost according to personnel cost in the base year, determined according to Clause 2 of this Article (VND/kWh).

1. Operational and maintenance cost based on major repair cost and other cost in the base year (VND/kWh) determined using following formula:

In which:

: Total major repair cost and other costs in the base year including major repair cost, secondary material costs, externally purchased material cost, other monetary cost (VND).

In case of failure to determine total major repair cost and other costs after using formula under this Clause, calculate TCscl in the base year using following formula:

TCscl =VDTXD+TB x kscl

In which:

VDTXL+TB: Total construction costs and equipment costs determined on the basis of total investment specified under Point a Clause 2 Article 5 of this Circular (VND);

kF,scl: Percentage of major repair cost and other costs (%) of power plants agreed upon by both parties and not exceeding value under Annex 1 hereof;

AGN: Average power generated over multiple years at delivery points between the Buyer and the Seller (kWH) and calculated as follows:

- For thermal power plants:

In which:

Pt: Generator terminal capacity under approved design (kW);

Tmax: Average hours in which power plants operate at maximum capacity, determined according to Point c Clause 2 Article 5 hereof (hour);

ttd: Percentage of electricity used and depreciation of step-up transformers of power plants, power line depreciation from step-up transformers to connection points with national electrical grids, determined according to Point d Clause 2 Article 5 hereof (%);

kCS: Average percentage of capacity degradation for economic life of power plants determined according to Point c Clause 2 Article 5 hereof (%).

- For hydroelectricity power plants:

In which:

Abq : Average power generated over multiple years at generator terminals, determined according to Point c Clause 2 Article 5 hereof (kWh);

ttd : Percentage of electricity used and depreciation of step-up transformers of power plants, power line depreciation from step-up transformers to connection points with national electrical grids, determined according to Point d Clause 2 Article 5 hereof (%).

2. Operational and maintenance cost based on personnel cost in the base year (VND/kWh) determined using following formula:

In which:

TCnc: Total personnel cost in the base year include cost for salary, social insurance, health insurance, union fee and other allowances (VND);

Total personnel cost TCnc of the base year is determined on the basis of total personnel cost of power plants and calculation to covert to the base year as follows:

- In case salary for calculating personnel cost of power plants equals region-based minimum wage  of the year in which electricity price is calculated: Conversion rate conforms  to region-based minimum wage;

- In case of inability to determine total personnel cost as specified above: Adopt following formula:

TCnc =VDTXL+TB x kF,nc

In which:

VDTXL+TB: Total construction cost and equipment cost determined on the basis of total investment specified under Point a Clause 2 Article 5 of this Circular (VND);

kF,nc: Percentage of personnel cost (%) of power plants agreed upon by both parties without exceeding value under Annex 1 hereof;

AGN : Average power generated over multiple years at delivery points between the Buyer and the seller and calculated according to Clause 1 of this Article (kWh);

Article 7. Methods of determining variable price of thermal power plants

Variable price, PBD, of thermal power plants in the base year (VND/kWh) is determined using following formula:

In which:

: Components of variable price revised depending on variation of primary fuel price of power plants in the base year, determined using method under Clause 1 of this Article (VND/kWh);

: Components of variable price revised depending on variation of secondary fuel price (oil) of power plants in the base year, determined using method under Clause 2 of this Article (VND/kWh);

: Components of variable price revised depending on other variations of power plants in the base year, determined using method under Clause 3 of this Article (VND/kWh).

: Transportation cost for primary fuel for generating electricity in the base year, determined using method under Clause 4 of this Article (VND/kWh).

1. is determined using following formula:

In which:

: Average net heat loss rate of primary fuel agreed upon by both parties and not greater than fundamental design/technical design corresponding to total investment for calculation of electricity price or specifications of equipment manufacturers, determined corresponding to load level under Annex 1 hereof;

: Primary fuel price in the base year is determined as follows:

Primary fuel price in the base year is calculated by weighted average of PPA or written agreements (VAT not included), unit of measurement: VND/kcal or VND/kJ or VND/BTU.

2. is determined using following formula:

In which:

: Average net heat loss rate of secondary fuel (oil) agreed upon by both parties (kg/kWh);

: Price of secondary fuel (oil) in the base year includes costs for transporting to power plants and other fees as per the law (VAT not included) (VND/kg).

3. is determined using following formula:

In which:

Cvlp: Total annual auxiliary material cost of power plants determined based on quantity and unit price of auxiliary materials used for electricity generation in the base year (VND);

Ckd: Total initiation costs include fuel costs, other costs serving initiation (VND); number of initiation sessions agreed upon by both parties on the basis of electrical grid demand and operational characteristics of power plants;

Ck: Annual regular repair and maintenance costs including regular repair and maintenance costs calculated on the basis of total construction and equipment investment of power plants, percentage of regular repair and maintenance costs agreed upon by both parties without exceeding value under Annex 1 hereof and costs for dredging port entry agreed upon by both parties (if any) (VND);

AGN­: Average electricity generated over multiple years at delivery points between the Buyer and the Seller and calculated according to Clause 1 Article 6 hereof (kWh).

4. is determined using following formula:

In which:

: Average net heat loss rate determined according to Clause 1 Article 7 hereof.

: Transportation price for primary fuel for generating electricity in the base year (VAT not included), unit of measurement: VND/kcal or VND/kJ or VND/BTU and determined as follows:

- For coal-fired thermal power plants: weighted average according to coal transportation agreements or written agreements;

- For gas-fired thermal power plants: weighted average according to fees for collecting, transporting and distributing gas approved by competent authority as per the law or according to written agreements.

- For LNG-fired thermal power plants: weighted average according to LNG transportation agreements, LNG storage, regasification and distribution contracts (if any) or other written agreements.

For fuel sale contracts in which primary fuel price, , has inlcuded transportation price for primary fuel, fees for collection, transportation, distribution, storage and regasification, repsective shall equal 0.

Article 8. Methods of determining specific connection prices of power plants

1. Specific connection prices (PDT) serve to salvage specific connection costs implemented by project developers of power plants or is allocated and agreed upon with the Buyer on the basis of specific connection costs, investment capital components, loan interest during operation period according to loan agreements, costs for managing, operating and maintaining and other factors according to agreement between both parties to ensure that project developers recover costs for constructing, managing, operating and maintaining as per the law.   Unit of measurement: VND/kWh or VND/kW or VND/month.

2. Once specific connection costs are settled, parties shall recalculate specific connection prices using method under Clause 1 of this Article.

3. Specific connection costs shall be considered legitimate costs and included in electricity purchase prices in methods of calculating average electricity retail price of EVN.   

Article 9. Methods of determining electricity generation price for other power plants

For other power plants, based on principles under Section 1 of this Chapter, the Buyer and the Seller shall develop methods of determining electricity generation price and PPA depending on practical situations of power plants, request Electricity Regulatory Authority of Vietnam and report to Ministry of Industry and Trade.

Section 2. METHODS OF DETERMINING ELECTRICITY GENERATION PRICE OF POWER PLANTS ENTERING COMMERCIAL OPERATION

Article 10. Methods of determining electricity generation price for power plants with expired PPAs and power plants with unexpired economic life  

For power plants with expired PPAs and unexpired economic life: Electricity generation price under current PPAs shall continue to apply to subsequent years until economic life expires.

Article 11. Methods of determining electricity generation price for power plants with expired economic life

1. Fixed price of power plants with expired economic life is determined in a manner that enables power plants to recover costs serving electricity production, according to period for calculation shall conform to frequency of major repair of primary equipment and according to agreement on reasonable interest.   In case competent authority approves period for calculation in writing, comply with written approval of competent authority.

2. Variable price of power plants with expired economic life is determined according to Article 7 hereof. 

3. In case a power plant with expired economic life is subject to investment and upgrade, both parties shall agree upon, negotiate PPA value of power plants based on Articles 4, 5, 6, and 7 hereof and conforming to depreciation period of primary equipment subject to upgrade.

Article 12. Methods of determining electricity generation price for power plants under renegotiation based on settled investment capital

For power plants where both parties have the rights to renegotiate electricity price based on settled investment capital according to Clause 2 Article 28 hereof: After determining settled investment capital, the Seller is responsible for sending documents related to settled investment capital to the Buyer. Both parties shall renegotiate electricity price based on following principles:

1. Methods of determining PPA value according to Article 4 hereof.

2. Indicators for calculating PPA value shall conform to Article 4 hereof and input indicators are updated at the same time settled investment capital is determined.

3. PPA value for comparing with price range for electricity generation must be within the price range of the year in which settled investment capital is approved.

4. Electricity generation price shall be applied from the commercial operation date of power plants, fixed price of each year according to Article 13 hereof; do not revise annual fixed price of years preceding the date on which parties sign contracts for revising PPA based on electricity price identified on the basis of settled investment capital. 

Section 3. METHODS OF DETERMINING POWER PURCHASE AGREEMENT VALUE BY EACH YEAR OF PPAS

Article 13. Principles of determining annual fixed price of power purchase agreements

1. Both parties have the rights to adopt weighted average fixed price agreed upon during years under contracts.

In case both parties agree on converting average fixed price to fixed price of each year, these fixed prices must be determined in a manner satisfactory to Clause 2 of this Article.

2. On the basis of practical loan capacity and financial capacity of projects, both parties shall negotiate about average fixed price of power plants and convert to annual fixed cost (FCj fixed cost of year j) as long as average fixed cost does not change compared to mutually agreed value and following principles are complied:

a) Financial discount rate when calculating annual fixed price agreed by both parties according to the IRR of power plants;

b) Projects developers shall return loans for investment and construction of power plants according to deadline for repaying loan capital.

Article 14. Principles of adjusting electricity generation price of each year under power purchase agreements

1. Component of operational and maintenance costs of power plants shall be adjusted according to following principles:

a) Components of operational and maintenance costs according to major repair costs and other costs shall be adjusted based on inflation rate of average costs under Annex 1 hereof.  Both parties shall conduct research, propose solutions for adjusting components of operational and maintenance costs according to major repair costs and other costs for items in foreign currency; 

b) Components of operational and maintenance costs according to personnel costs shall be adjusted based on variation of minimum region-based wages at the time of payment or based on CPI publicized by General Statistics Office of Vietnam without exceeding 2.5%/year.

2. On an annual basis, based on total loan in foreign currency, plans for repaying loan in foreign currency, figures on principle debt paid in practice, conversion rate agreed upon by both parties in electricity price solutions and conversion rate of the previous year, both parties shall calculate difference in rates, propose payment solutions, send to Electricity Regulatory Authority of Vietnam and request Ministry of Industry and Trade to consider approving payment solutions.

Foreign exchange rate difference (FED) is calculated using following formula:

In which:

m: Number of foreign currency in electricity solution both parties agree upon (number);

n: Number of times principle debt in foreign currency i is paid in calculating year (time);

Di,j: Number of principle debt in foreign currency paid for the jth time foreign currency i in practice in calculating year. Principle debt in foreign currency i paid in practice in calculating year must not be greater than principle debt in foreign currency i in respective year in electricity price solutions agreed upon by both parties;

λi,j: Conversion rate in the jth payment of foreign currency i in the year (.../VND);

λi,b: Base conversion rate of foreign currency i agreed upon by both parties under electricity price solutions (.../VND).

Article 15. Methods of determining power purchase agreement value of power plants at the time of payment

PPA value of power plants at the time of paying electricity bill in month t, year j: PC,j,t (VND/kWh) is determined using following formula:

In which:

FCj: Fixed costs in year j determined according to Clause 1 of this Article (VND/kWh);

FOMCj,t: Operational and maintenance costs in month t, year j determined according to Clause 2 of this Article (VND/kWh);

: Variable price in month t, year j determined according to Clause 3 of this Article (VND/kWh).

1. Fixed costs in year j: FCj is determined according to Article 13 hereof.

2. Operational and maintenance costs in month t, year j are determined using following formula:

In which:

: Components of operational and maintenance costs according to major repair costs and other costs in year j (VND/kWh);

: Components of operational and maintenance costs according to personnel costs in month t, year j (VND/kWh).

a) Components of operational and maintenance costs according to major repair costs and other costs are determined using following formula:

In which:

: Operational and maintenance costs according to major repair costs and other costs in the base year determined according to Clause 1 Article 6 hereof;

i: Inflation rate of components of operational and maintenance costs according to major repair costs and other costs specified under Annex1 hereof;

l: Order of payment year from the base year (for base year, I=1).

b) Components of operational and maintenance costs according to personnel costs in month t, year j: determined as follows:

- In case wages in electricity price solutions equal minimum region-based wages, apply following formula:

In which:

: Operational and maintenance costs according to personnel costs in the base year determined according to Clause 2 Article 6 hereof;

: Minimum region-based wages at the time of payment in month t, year j (VND/month);

: Minimum region-based wages in the base year (VND/month).

- In case total personnel costs: TCnc are calculated based on construction and equipment investment, apply following formula (VND/kWh):

In which:

: Operational and maintenance costs according to personnel costs in the base year, determined according to Clause 2 Article 6 hereof;

i1: Inflation rate of components of operational and maintenance costs according to personnel costs, determined based on consumer price index (CPI) in year (j-1) compared to year (j-2) publicized by General Statistics Office of Vietnam in December of year (j-1) without exceeding 2.5%/year;

l: Order of payment year starting from the base year (for the base year: l = 1, i1 = 0).

3. Variable prices of thermal power plants in month t, year j: (VND/kWh) are determined using following formula:

In which:

: Components of variable prices adjusted according to variation of primary fuel prices of thermal power plants in month t, year j, determined according to Point a of this Clause (VND/kWh);

: Components of variable prices adjusted according to variation of secondary fuel (oil) price of power plants in month t, year j determined according to Point b of this Clause (VND/kWh);

: Components of variable prices adjusted according to other variations of power plants in year j, determined according to Point c of this Clause (VND/kWh).

: Transportation costs for primary fuel of power plants in month t, year j, determined according to Point d of this Clause (VND/kWh).

a) Components of variable prices adjusted according to variation of primary fuel prices of power plants in month t, year j: are determined using following formula:

In which:

: Average net heat loss rate determined according to Clause 1 Article 7 hereof;

kHR: Coefficient for average net heat loss rate for actual operating coditions depending on temperature of coolant and ambient temperature agreed upon by both parties;

kHS: Percentage of capacity reduction in year j (%);

l: Year of commercial operation of power plants;

: Primary fuel price for electricity generation at the time of payment in month t, year j, determined by weighted average based on quantity of invoices under fuel sale contracts at the time of calculation.

b) Components of variable prices adjusted according to variation of secondary fuel (oil) price of power plants in month t, year j: are determined using following formula:

In which:

: Components of variable prices adjusted according to variation of secondary fuel (oil) prices of power plants in the base year, determined under Clause 2 Article 7 hereof;

kHS: Percentage of capacity reduction in year j (%);

l: Year of commercial operation of power plants;

: Secondary fuel (oil) prices for electricity generation including fees for transporting to power plants at the time of payment in month t, year j;

: Secondary fuel (oil) prices for electricity generation in the base year determined under Clause 2 Article 7 hereof.

c) Components of variable prices adjusted according to other variations of power plants in year j: determined using following formula:

In which:

: Components of variable prices adjusted according to other vairations of power plants in the base year determined under Clause 3 Article 7 hereof;

i: Inflation rates of components of variable prices adjusted according to other variations based on rates under Annex 1 hereof.

kHS: Percentage of capacity reduction in year j (%);

l: Year of commercial operation of power plants.

d) Fees for transporting primary fuel of power plants in month t, year j: (VND/kWh) are determined using following formula:

In which:

: Average net heat loss rate determined according to Clause 1 Article 7 hereof.

kHR: Coefficient for adjusting average net heat loss rate depending on practical operating conditions, coolant temperature and ambient temperature agreed upon by both parties;

kHS: Percentage of capacity reduction in year j (%);

l: Year of commercial operation of power plants;

: Fees for transporting primary fuel at the time of payment in month t, year j are determined by weighted average based on quantity of invoices according to fuel transport agreements, LNG storage, regasification and distribution contracts (if any) (VATnot included), to be sepcific:

- For coal-fired thermal power plants: weighted average according to coal transportation agreements;

- For gas-fired thermal power plants: weighted average according to fees for collecting, transporting and distributing gas;

- For LNG-fired thermal power plants: weighted average according to LNG transportation agreements, LNG storage, regasification and distribution contracts (if any).

For fuel sale contracts already including primary fuel transportation prices, components of primary fuel transportation prices shall equal 0.

4. Total costs for initiation in month t of thermal power plants (VND), are determined using following formula:

In which:

u: Machine order of power plants;

U: Number of machines of power plants;

f: Type of fuel (for primary fuel f = 1; secondary fuel f = 2);

s: Initiation status of machines;

S: Initiation status number of machines;

pu,f,s: Number of ignitions of machines u, use fuel f, in initiation status s in the month;

Mu,f,s: Amount of coal (kg) or gas (BTU) consumed for a single instance of initiation of machines u, using fuel f in initiation status s;

Du,f,s: Fuel unit price for a single instance of initiating machines u, using f, in initiation status s, determined, determined in VND/kg for coal and VND/BTU for gas;

: Total of other costs serving initiation.

Payment for initiation costs of thermal power plants shall conform to regulations on electricity market publicized by Ministry of Industry and Trade.