Order No. 26/2012/L-CTN on the promulgation of the Law Amending and Supplementing a Number of Articles of the Electricity Law No. 24/2012/QH13

17. Electricity wholesale price mums the Promulgation of Legal Documents, price of electricity. sold by an elcctrici t unit to another one for resale. PROMULGATES:

18. Electricity retail price means die price of The Law Amending and Supplementing electricity sold by an electricity unit Ic electricit ■ users." a Number of Articles of the Electricity Law, which was passed on November 20. 2012, 2. To add Clause la to the end of Clause by the XIII National Assembly of We Socialist 1, and amend and supplement Clauses 3 Republic of Vietnam at its 4 u1 session. and 4, A rtiele 4 as follows: " a. To prioritize the de vel opulent tir President of electricity for rural, mountainous, border and the Socialist Republic of Vietnam island areas and areas meetine with extreme TRUONG TAN SANG socio-economic difficulties. IV t ' * VIEWS LAW & LEGAL COM Issue nos 06-08/December 2012 OFFICIAL GAZETTE 79 (COng Rio noN765-766/December24,2012)

3. To apply scientific and technological electricity development master plans shall be advances to electricity activities and use with a formulated for each ten-year period N. \ ith the view to sto Mg. and raising the use efficiency of. orientation for the subsequent ten years. - energy sources and protecting the environment: to encourage the research, development, 4. To add the following Article Sa to the production and use of modem equipment to meet end of Article 8: electricity de N. elopment requirements. Article Sa. Contents of electricity

4. To step up the exploitation and use of new development master plans and renewable energy sources for electricity generation: to adopt preferential policies [or 1. The national electricity development in projects on the development of master plan has the following principal contents: electricity plants using new and renewable a/ Overview of the national socio-economic energy sources."' development situation and energy system in the planning period;

3. To amend and supplement Clauses 1 and 3. Article 8 as follows: b/ Forecast of electricity demand; I. Electricity development master plans are c/Assessment of primary energy sources and specialized master plans including national the capacity toexploit, import and export energy; electricity de elopment master plan and assessment of the capacity to exchange provincial-level electricity development master electricity among regions and areas: and forecast plans. Electricity development master plans shall of prices of fuel for electricity production; be formulated and approved as a basis for d/ The national electricity development electricity development investment activities and program, comprising detailed programs for adjusted to suit socio-economic conditions in each developing power sources andelectricity grids, period. Electricity development master plans linking electricity grids with regional countries. must comply with the master plan on primary developing rural electricity, new and renewable energy sources for electricity generation, energy sources, and other relevant contents; including new and renewable energy sources, and taking into account other relevant master c/ Summarization of the construction volume plans in accordance with law. and investment capital for the national electricity development program; economic-financial

3. Provincial-level electricity development analysis of the national electricity development master plans shall be formulated on the basis of program; local socio-economic development master plans and must comply with the national electricity Ii Environmental protection and natural development master plan. Provincial-level disaster prevention and control; Sian 0 VIETNAM LAW & LEGAL FORUM 80 OFFICIAL GAZETTE Issue nos 06-08/December 2012 ' g Enos 765-766/Dan nivr 24, 20 12 ) On g/ Projected land fund for electricity works; implementing the provincial-level electricity development master plan in the planning period." 1-1/ Mechanisms, policies and solutions for implementing the national electricity

5. To amend and supplement the title and development program in the planning period. Clauses 1 and 2 of Article 9 as follows:

2. Aprovincialdevel electricity development "Article 9. Formulation, approval, publicization master plan has the following principal contents: and adjustment of electricity development master a/ The local socio-economic development plans planning, orientations and objectives in the

1. The Ministry of Industry and Trade shah planningporiod; formulate the national electricity development b/ Forecast of specific electricity demands master plan and submit it to the Prime Minister for rural districts, urban districts, towns and for approval; publicize, and guide. monitor and provincial:cities in the planning period; examine the implementation of, the approved c/ Assessment of the local potential to national electricity development master plan: develop electric sources. including electric specify the contents of, order and procedures sources using new and renewable energies; the for formulating, appraising and adjusting the capacity to exchange electricity with neighboring electricity development master plans, and guide regions; - the formulation of implementation plans. &Assessment of the local electricity supply 2. Provincial-level People's Committees shall situation, especially in areas meeting with formulate provincial-level electricity development extreme Socio-economic difficulties; master plans and submit them to provincial-LyeI People's Councils for opinions before submitting e/ The local power source and grid them to the Minister of Industry and Trade for developrnent program for the planning period; approval; publicize, and guide. monitor and detailed designs of electricity grid development examine the implementation of, the approved diagrarnsior rural districts, urban districts, towns , provincial-level electricity development master and provincial cities; plans." f/ Environmental protection and natural disaster prevention and control; 6. To amend and supplement Clause 1, g/ Summarization of the construction volume Article 11 as follows: and investment capital for the selected electricity "1. Electricity development investment must development plan; economic-financial analysis comply with the electricity development master of the selected plan; plans. Investment projects not yet included in h/ Projected land fund for electricity works; the electricity development master plans may be i/ Mechanisms. policies and solutions for implemented only after being submitted by the VIETNAM LAW & LEGAL FORUM Issue nos 06-08/December 2012 OFFICIAL GAZETTE 81 Pang Eijonos765-766aceinkr24,2012) electricity development master plan-formulating must satisfy measurement-related technical agency and pemiitted by the authority competent requirements and must be inspected, calibrated to approve the master plans." and experimented in accordance with the law on measurement."

7. To amend and supplement Point e, Clause 1, Article 16 as follows: 11. To amend and supplement the title "el To conduct periodical audit of electric and Clauses 1 and 2 of Article 25 as follows: energy and take adjusting measures after audit "Article 25. Inspection, calibration and conclusions are made in accordance with the experimentation of electricity-metering and - law on energy conservance and efficiency." counting devices

8. To amend and supplement Clause 2, 1. Only inspection. calibration and Article 18 as follows: experimentation institutions registered or "2. The Prime Minister shall stipulate the designated in accordance with the law on conditions for and structure of the electricity measurement may inspect, calibrate and industry for forming and developing different experiment electricity-metering and -counting levels of the electricity market; stipulate a devices. roadrnap for developing the electricity market, 2. Electricity sellers shall organize the review and accelerate such roadmap to suit the inspection, calibration and experimentation of socio-economic situation in each period." electricity-metering and -counting devices according to the requirements and time limit

9. To amend and supplement Clause 6, provided in the law on measurement." Article 23 as follows: "6. When the electricity buyer fails to pay 12. To amend and supplement Point c, the electricity charge though having twice Clause 2, Article 28 as follows: received the seller's notice of the payment, fifteen days after issuing the first notice, the seller "c/ Not to harm the interests of electricity may stop supplying electricity. The seller shall users, the interests of the State and national notify the buyer of the time of stopping the energy security." electricity supply 24 hours in advance and not

13. To add Clause la to the end of Clause bear responsibility for the damage caused by 1, and amend and supplement Clauses 3 such stoppage." and 4, Article 29 as follows:

10. '16 amend and supplement Clause 2, "Ia. Electricity sale prices coin p1 with the Article 24 as follows: state-regulated market mechanism and suit the

1 . Electricity-metering and -counting devices electricity market's dm/Joplin level. "ISIS c VIETNAM LAW & LEGAL F OS 82 OFFICIAL GAZETTE Issue nos (k6-08/Decernber 2012 (C6ng Eklono‘ 765 7(4Th (who 24 2, )12 -

3. To apply a rational electricity retail price Any adjustments to electricity retail price:: tariff structure to different groups of customers, must be made public and transparent with regard the State will support retail prices of electricity to changes in price constituents related to the for daily-life activities for poor and social policy- adjustment. The State will take methods to benefiting households identified based on the stabilize electricity sale prices in accordance \\ oh Prime Minister-prescribed criteria to suit the the law on pricing. socio-economic situation in each period.

2. Related electricits units may set

4. To assure the right of electricity buyers electricity generation price brackets. Heinrich e and sellers to decide on electricity purchase and wholesale price brackets. electricits sale prices on the electricity market within the transmission prices, electric ss stem suppi ri state-prescribed electricity retail price brackei service prices, electric ss stem operation and tariff structure." regulation charges and electricity market transaction administration charges, the

14. To add the following Clause 6 to electricity regulator \ authorit \ "hall appraise Article 30: such prices and charges and submit them L. "6. Audited annual financial statements of the Minister of Industrs and Trade and the Minister of Finance or appros al as assigned electricity units." by the Government. except the Cami' pros Lied

15. To amend and supplement Clauses in Clause 2. Article 62 of this Lass 1, 2 and 3. Article 31 as follows: The Ministrs of industry and Trade shall "I. Electricity retail LttlitS may set electricity assume the prime responsi I its for, and retail prices based on the average electricity coordinate with the Ministry of Finance in. retail price brackets, the price adjustment guiding the methods of setting electricit) mechanism and the electricity retail price tariff generation price brackets. elecricits u holesale structure prescribed by the Prime Minister to price brackets, electricity transmission p r i c e s,. suit the electricity market's development level, electric system support service charges, elc`ctrIc except the case provided in Clause 2, Article system operation regulation charges and 62 of this Law, electricity market transaction administration charges. The Ministry of Industry and Trade shall assume the prime responsibility for, and coordinate 3. Electricity units shall reach agreement on with the Ministry of Finance in. formulating the electricity generation prices under electricity average electricity retail price brackets, the price trading contracts with a definite term and on adjustment mechanism and the electricity retail electricity wholesale prices, which must not price tariff structure and submitting them to the exceed the approved electricity generation price Prime Minister for decision. baskets and wholesale price brackets. . VIETNAM LAW & LEGAL FORUM Issue nos O&M/December 2012 OFFICIAL GAZETTE 83 (Cei7gBaor/0,7654604)acHiber2420/2)

16. 'lb amend and supplement Clauses finishing the use of. electricity works and other 1 and 4 of, and add Clause 5 to, Article 32 works as follows:

4. When an electricity ,y ork is no longer Organizations and individuals may be operated or used, it must be handled and managed granted license, For operating in one or more to ensure safety in accordance oh the than one field of electricity activity. GovenimenEs regulations.

4. The Government shall specify the

20. To amend and supplement Clause 1, conditions for the grant of licenses in each field Article 54 as follows: of eleetricit activity. I. Power plants and electricity generation

5. The Ministiw of 1 ndustn and Trade shall stations must he strictly protected and stipulate the order and procedures for the grant, surrounded by protection walls and signboards extension. modification. supplementation and for electricity safety and fire pre cut in and saliditv duration of electricity activity licenses in fighting, unauthorized persons are not allowed each field of electricity activity. - to enter pow.. er plants and electricity generation stations.

17. To amend and supplement Point a, Clause 2. Article 39 as follows: Reservoirs, hydropower dams and ancillar ■ works serving hydropower plants must be built. "a/ To comply with technical processes and managed and protected to ensure safety in the regulations on operation of power plants and operation of power plants and for lowlands. All electricity grids: or hydropower plants, to comply acts of encroaching. hydropcm er dams or with regulations on safety of hydropower dams reservoir beds, polluting water sources and and operation of reservOirS;" affecting the electricity generation capacity are prohibited."

18. To amend and supplement Point c, Clause 1. Article 44 as follows: 21. To add the following Article 59a to "c/ To set electricity sale prices in the the end of Article 59: competitive electricity retail market in accordance "Article 59a. Handling of power incidents with Clause I Article 31 of this Law, except the case provided in Clause 2, Article 62 of this Law." 1. Electricity units shall, within the ambit of their tasks and powers, handle power incidents.

19. To amend and supplement the title if any, in accordance with law. of, and add Clause 4 to, Article 49 as follows:

2. In case a serious power incident occurs. "Article 49. Responsibility for implementation causing a major catastrophe. the announcement coordination when building, renovating, and of a state of emergency and application of istmea •- VIETNAM LAW & LEGAL FORUM 84 OFFICIAL GAZETTE Issue nos 06-08/December 2012 (CeingBannos765-7('6/Deronber24, 2012) responsive measures must comply with the law organizing the implementation of electricity price - on the state of emergency." related mechanisms and policies;

22. To amend and supplement Article 62 g/ Setting electricity generation price brackets as follows: and electricity wholesale price brackets; approving electricity transmission prices, electric "Article 62. Electricity sale prices in rural, system support service charges, electric system mountainous, border and island areas operation regulation charges and electricity

1.Electricity sale prices in rural, mountainous, market transaction operation charges; border and island areas which are connected to j/ Examining and supervising the adjustment the national electricity grid comply with Article and application of electricity prices; 31 of this Law. I/Examining electricity trading contracts with

2. Elenricity sale prices in rural, mountainous, a definite term between electricity generation border and island areas which are not connected units and electricity purchasers, and electricity to the national electricity grid are prescribed as wholesale contracts with a definite term in follows: accordance with the Government's regulations; a/ Retail prices of electricity for daily-life m/ Examining, and handling violations in the activities are set by relevant electricity units and electricity industry in accordance with law. decided by provincial-level People's Committees in line with the Prime Minister-prescribed 2. The Prime Minister shall specify the mechanism of supporting retail prices of organization, functions, tasks and powers of the electricity for daily-life activities in the localities; electricity regulatory authority." b/ Other electricity prices are set by relevant 24. To amend and supplement Article 67 electricity units and decided by provincial-level as follows: People's Committees on the principle of offsetting all costs and ensuring reasonable "Article 67. Specialized electricity profits for the electricity units after consulting inspectorate the electricity regulatory authority." The specialized electricity i nspectorate complies with the inspection law. -

23. To amend and supplement Points e, g and j of, and add Points land m to, Clause Article 2. 1, and amend and supplement Clause 2, Article 66 as follows: 1. To amend a number of terms used in the Electricity Law as follows: "e/ Setting brackets of average electricity retail prices, the price adjustment mechanism and a/ To replace the phrase "local electricits the electricity retail price tariff structure; development master plans - w ith the phrase 0 VIETNAM LAW & LEGAL FORUM Issue nos 06-08/December 2012 OFFICIAL GAZETTE 85 (Ding BaOnev765-766Deconher24,211l2) provincial-level electricity developmentmaster 2. To annul Point h, Clause 1, Article 41. and plans- in Clause 2, Article 10; Point f, Clause 1. Article 66. of the Electricity Law. h/ To replace the phrase 'support service charges - with the phrase "support service prices" 3. To add the word "transparency" to the at Point h. Clause 1. Article 2 I; to replace the end of the phrase "To ensure publicity" in Clause phrase "service charges" with the phrase I. Article 17 of the Electricity Law. "support ser% ice prices - at Point h, Clause 2. Article 21; 4. To add the phrase "ensuring the interests of the parties which, however, must not el' To replace the phrase "electricity contravene the law" to the end of the phrase transmission charges" with the phrase "unless otherwise agreed by the parties" in "electricity transmission prices" at Point h, Clauses I and 3. Article 24. and to the end of the Clause I. Article 40; sentences at Point i. Clause 2, Article 39. Point d/ To replace the word "rules" with the f, Clause 2, Article 40. and Point g, Clause 2. phrase "technical IlitU lutions" in Clause 4, Article Article 41, of the Electricity Law. 11 : Point h, Clause 2, Article 28; Clause 2, Article

5. To add the word "border - to the end of 34; Point e. Clause 1. Article 39; Point d, Clause the phrase "rural, mountainous" in the title of

1. Article 40; Point e. Clause 1, Article 41; Point Chapter VIII; in the titles of A rticles 60. 61 and h, Clause 1. and Point a, Clause 2, Article 45; 64; in Clauses I, 3 and 4, Article 60; Clause 4, Clauses 5 and 6. Article 54; Clauses 7 and 8. Article 61; and Clauses 1.2 and 4. Article 64, of Article 55; Clauses 1, 2, 3 and 7, Article 57; and the Electricity Law. Clause 1. Article 64; el To replace the phrase "technical rules" Article 3. with the phrase "technical regulations" in Clause I. This Law takes effect on July I. 2013. 12, Article 3 and Clause 5, Article 55;

2. The Government and competent agencies I/ To replace the phrase "Ministry of shall detail and guide the implementation of Industry - with the phrase "Ministry of Industry articles and clauses as assigned in the Law. and Trade" in Clause 7, Article 3; Clause 4, Article 10; Clause 5, Article 11; Clause 3, Article This Law was passed on November 20, 2 012. 13: Clause *Article 21; Point b, Clause 1, Article by the XIIIt h National Assembly of the Socialist 34; Clauses 1 and 2. Article 38: Clauses 1 and 2, Republic of Vietnam at its 4 111 session.- Article 56; Clause 5. Article 59; Clause 3, Article 61; Clause 4, Article 64; and Clauses 2 and 3. Chairman of the National Assembly Article 65. NGUYEN S1NH HUNG ARMIIII 0 VIETNAM LAW & LEGAL FORUM ci cosi