Quyết định 14754/QD-BCT

DECISION

ON PROMULGATION OF THE ELECTRICITY GENERATION PRICE BRACKET OF 2016

MINISTER OF INDUSTRY AND TRADE

Pursuant to the Electricity Law dated December 03, 2004 and the Law on amendment and supplement to the Electricity Law dated November 20, 2012;

Pursuant to the Government’s Decree No. 95/2012/ND-CP dated November 12, 2012 on the functions, missions, authority and organizational structure of the Ministry of Industry and Trade;

Pursuant to the Government’s Decree No. 137/2013/ND-CP dated October 21, 2013 on the implementation of certain articles of the Electricity Law and the Law on amendments to the Electricity Law;

Pursuant to the Circular No. 56/2014/TT-BCT dated December 19, 2014 by Minister of Industry and Trade on the method for determination of electricity generation price and the process of inspection of power purchase agreements;

Pursuant to the Circular No. 57/2014/TT-BCT dated December 19, 2014 by Minister of Industry and Trade on the method and process of establishing and issuing the electricity generation price bracket;

At the request of the Head of the Electricity Regulatory Authority,

HEREBY DECIDES:

Article 1. The 2016’s electricity generation price bracket is promulgated for power plants to engage in price negotiations in relation to power purchase agreements as per Article 1 of the Circular No. 57/2014/TT-BCT dated December 19, 2014 by the Minister of Industry and Trade.

Article 2. Electricity of Vietnam and power generators shall base on the electricity generation price bracket as stated in Article 1 of this Decision and parameters of fuel, which constitute to the formation of the electricity generation price bracket for coal-fired thermal power stations, to negotiate the actual power purchase price in conformity to current legal regulations by competent authorities on the method of determination of electricity generation price and management of construction costs and investments.

Article 3. Implementation

1. The price bracket enclosed to this Decision shall come into force as of January 01, 2016.

2. Manager of the Office of the Ministry, Head of the Electricity Regulatory Authority, Head of the General Directorate of Energy, Inspectorate of the Ministry, Heads of Departments: Finance, Planning, Legal affairs, General Director of the Electricity of Vietnam and Directors of power generators shall be responsible for implementing this Decision./.

ELECTRICITY GENERATION PRICE BRACKET FOR THE YEAR OF 2016

(Enclosed to the Decision No. 14754/QD-BCT dated December 31, 2015 by Minister of Industry and Trade)

1. Electricity generation price bracket for coal-fired thermal power stations

The ceiling level of the electricity generation price (not including the value added tax) for coal-fired thermal power stations is defined as follows:

Parameters of fuel for calculation of electricity generation price:

- Type of coal: Powdered coal 6a.1, whose quality conforms to technical requirements for powdered coal 6a.1 as per TCVN 8910:2015.

- Price of coal (covering losses, management fee and insurance, but not including transport) is: VND 1,301,665/tonne.

2. Electricity generation price bracket for hydropower plants

The ceiling level of the electricity generation price bracket (not including the severance tax for water, the forest environment service fee and the value added tax) for hydropower plants is VND 1,070/kWh.