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  INTER - MINISTRY        SOCIALIST REPUBLIC Of VIETNAM
  GOVERNMENT PRICE       Independence-freedom-Happiness
     COMMITTEE               htmlhtmlhtml-----
 MINISTRY Of ENERGY 
    No.01 TT/LB
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                                 Hanoi, 26th July 1994.

INTER - MINISTRY CIRCULAR GUIDANCE ON IMPLEMENTING ELECTRIC POWER PRICE

Pursuant to Prime Minister decision in the Notice No.3976/KTTH dated 21st July, 1994 concerning the completion of electric power price system and decision No.20/VGCP-TLSX dated 26th July, 1994 of Government Price Committee regarding the selling price of electric power for 1994.

After discussed with the related Ministries, branches, Interministry, Government Committee for Price of Goods-Ministry of Energy hereby guide the implementation of selling price of electric power as follows:

A. PRICE LEVELS AND APPLICATION OBJECTS

The electric power price levels hereunder belonging to the power source directly managed by Ministry of Energy shall be the prices selling to the power users which have signed the power purchasing contracts directly with the power s uppliers of power branch under the Ministry of Energy.

Price objects and levels hereunder shall be applied identically in the whole country

PRICE OBJECTS Measuring unit Price levels

I. Power selling price for production, non productive administrative organizations

1. Power selling price according to voltage levels

a) Buying power of voltage higher than 20 kv

- Normal demand hours (normal hours) VND/kwh 450

- High demand hours (high hours) VND/kwh 710

- Low demand hours (low hours) VND/kwh 280

b) Buying power of voltage between 6-20kv

- Normal demand hours VND/kwh 500

- High demand hours VND/kwh 800

- Low demand hours VND/kwh 300

c) Buying power of voltage lower than 6kv

- Normal demand hours VND/kwh 550

- High demand hours VND/kwh 800

- Low demand hours VND/kwh 320

II. Power selling price for pumping the irrigational water serving the production rice and agricultural products

1. Power selling price according to to voltage levels equal to and higher than 6kv

- Normal demand hours VND/kwh 180

- The rest hours VND/kwh 450

2. Power selling price according to voltage levels lower than 6kv

- Low demand hours VND/kwh 190

- The rest hours VND/kwh 480

III. Power selling price for public lighting VND/kwh 450

IV. Power retail price for living conditions according to stair system

- for the first 150 kwh VND/kwh 450

- for the next 100 kwh VND/kwh 600

- from 251 kwh and more VND/kwh 800

V. Whole sale price

1. Central powermeter placed in the transforming station of villages VND/kwh 360

2. Central powermeter placed in the own transforming station of living quarters, for living conditions VND/kwh 400

3.Central powermeter of the living quarters which is placed in the transforming station of power organization, for living conditions VND/kwh 420

VI.Power selling price for commercial business and service VND/kwh 850

VII.Power selling price regulated in foreign currency

1. Production organization

a) Buying at voltage of 20kv and higher USD/kwh 0.07

b) Buying at voltage between 6-20kv USD/kwh 0.075

c) Buying at voltage lower than 6kv USD/kwh 0.08

2. Commercial business and service organization

a) Buying at voltage of 20kv and higher USD/kwh 0.09

b) Buying at voltage between 6-20kv USD/kwh 0.10

c) Buying at voltage lower than 6kv USD/kwh 0.11

3. for living conditions

a) Buying at voltage of 20kv and higher USD/kwh 0.080

b) Buying at voltage between 6-20kv USD/kwh 0.085

c) Buying at voltage lower than 6kv USD/kwh 0.090

I. Power selling price for production, non-productive administrative organizations.

1. Power selling price according to voltage levels.

Power price shall be determined according to the voltage level of the place where the users' powermeter is located. Power amount used for price calculation is the amount recorded at the powermeter without discrimination whether the powerme ter is on the primary or secondary side of transformer, without discrimination whether the powermeter is of the customers or of power organization, without any addition of any kinds of power loss.

If customers require to change the location of powermeter, it should be discussed and agreed with power organization. All the installation expenses shall be paid by customers.

2. Power selling price according to high demand and low demand hours.

Power selling price according to high and low demand hours shall be applied only for the production units, capital construction units which have installed the two prices or three prices power-meter agreed by the power user and power organiz ation. Powermeter shall be invested and installed by the power organization for customers. Customers shall pay all the installation expenses and the rent of powermeter.

- High demand and low demand hours are specified as follows:

High demand hours: from 18 o'clock to 22 o'clock (4 hours)

Low demand hours: from 22 o'clock to 4 a.m. the day after (6 hours)

Besides the above mentioned hours the rest hours are called normal demand hours.

Meantime when there are not the two prices or three prices powermeters the price regulated by normal demand hours can be applied.

3. Application objects.

a) Power selling price for production branches.

Production units of all branches, capital construction, transportation and Communication units in all economic sectors of the national economy, including the pictures/music tape production units, ice making factories, units of repair a nd maintenance service, producing equipment recondition, food grains grinding, school equipment companies, information technology investment companies, power for irrigation in industrial and fruit tree planting area, tree breeding are a, breeding farms, all services for agricultural production.

b) Power selling price for non-productive, administrative units. Including ministries, state organs, general department. Bureaus Departments and sections of State Bank (including its branches) doing the state administrative functions, trea suries, organizations and communities, religious organizations, hospitals, schools, research institutes, museums, activities of literature and arts, propaganda, theaters, cinemas, performance companies, state owned film showing companies , clubs, literature houses, sport houses, exhibition houses, fairs (the parts having allowance), air film showing yards, holiday homes for workers and officers paid by the expenditure of social insurance, market management teams (aided by non -productive budget).

II. Power selling price for pumping the irrigational water for rice and agricultural products.

Power selling price for pumping the irrigational water serving rice vegetables and other alternative trees applied for electric pumping stations of irrigation and agriculture companies, electric pumping stations of agricultural cooperat ives and pumping stations of other economic sectors. Power selling price for water pumping has two levels of price specified for low demand hours and the rest hours.

The applied power amount for low demand hour price shall be calculated equal to 25% of the power amount really used for water pumping for the pumping stations which have not installed the two prices powermeter because of that the power organi zation has not powermeter available for that pumping stations.

Pumping stations shall not enjoy the low demand hour price when the power organization prepare enough two prices powermeters and the pumping stations refused to install them. for pumping stations that have installed two prices powerm eters, low demand hours shall be determined as follows: from 22 o'clock to 4 a.m. the day after. Power organizations shall be responsible for the investment, supply and installation of two prices powermeters. Customers shall pay the i nstallation expenses and the rent of powermeter.

III. Power selling price for public lighting (street lamps)

Power selling price for public lighting (street lamps) shall be applied for the units having the function to serve the streets, lanes, hamlets lighting system 100% invested by Budget. Electric stations of these units should install their separate powermeters to serve the public lighting, and should not share the powermeters of other power using purposes. It is strictly forbidden to use the public lighting power for sale to other power users for getting the profit o f difference between the power prices.

IV. Power retail price for living conditions according to stair system.

1. Power retail price for living conditions according to stair system shall be applied to the power buyers for living requirements of family that have signed the power purchasing contract directly with power organization. Calculation of the money buying electric power for living conditions according to stair system by the retail buyers which shall be paid every month as follows:

Example 1 :

Power amount used by the user A for a month: 58 Kwh

Money amount to be paid by the user A for the used power for a month:

58 Kwh x 450 VND/kwh = 26.100 VND

Example 2 :

Power amount used by the user B for a month: 265 Kwh

Money amount to be paid by the user B for the used power for a month:

for the first 150 kwh: 150 Kwh x 450 VND/kwh = 67.500 VND

for the next 100 kwh: 100 Kwh x 600 VND/kwh = 60.500 VND

for the next 15 kwh: 15 Kwh x 800 VND/kwh = 13.500 VND

Total amount to be paid for 265 kwh = 139.500 VND

2. for the buyers of power for living conditions, that share one powermeter and have only one representative person who signed the contract directly with power organization, the stair system power prices applied for the families ( having separate registration books) shall be calculated by general level of stair system for all families and equal to the maximum power level of each stair as specified in power price list multiplied by the number of the buyers who share that po wermeter.

Example:

3 families (having separate registration books) share one powermeter. The stair level of power retail price for living conditions can be calculated as follows:

150 x 3 = first 450 kwh with price level of 450 VND/kwh

100 x 3 = next 300 kwh with price level of 600 VND/kwh

The kwh after that is calculated in price level of 800 VND/kwh

The calculation of the money amount to be paid by the 3 families for the shared powermeter is similar to the examples in the Art. above.

V. Wholesale price

1. Power wholesale price for countryside.

Power wholesale price for countryside shall be applied according to the inter-ministerial circular (VGNN-NL) No.18 TT/LB dated August 3, 1992. Power wholesale level of 360 VND/kwh shall be applied for the power amount recorded at the c entral powermeter in transforming station of village with many purposes of power use. In particular, power for pumping irrigational water serving rice, vegetables and alternative trees shall be implemented according to the regulations in Ar t.11.

2. Power wholesale price for living quarters

It is applied for the living quarters buying the power according to central powermeter placed in the transforming station of living quarter or of power organization. The person, who signs contract directly with the power suppliers under Mi nistry of Energy for purchasing the power in wholesale price for living conditions of living quarters shall be:

- The offices/ enterprises if the living quarters is of that offices/ enterprises.

- The authorities of districts, towns, townlets or the representative person delegated by them if the living quarters belong to that districts, towns, townlets.

VI. Power selling price for service, commerce business.

Application objects:

a) All commercial units/ shops selling wholesale retail of materials/ goods, all monetary commercial banks (including monetary banks savings-banks, trust funds, gold and precious stone trading companies), also the power used in the stores of general companies, business managing companies of all economic sectors.

b) All touring companies photoshops, books/ newspapers publishing units

c) All service of foods/drinks, hairdressing, tailoring..., services of repairing/reconditioning the living household appliances (having the business registration or name table)

d) All hotels, guest houses, resting houses (including those for foreigner)

e) Postal service, transport service, power using on the bus/rail stations.

VII. Power selling price regulated in foreign currency.

Power selling price regulated in foreign currency shall be identically applied for foreigners, business and production Joint-ventures with foreigners (including the following countries: Laos, Kampuchea, Palestine Liberation organization) that use power for the following purposes:

1. Production units:

- Application objects:

1.1 Power used for production, capital construction of foreign organizations or individuals that invest or make joint-venture with Vietnamese organizations or individuals according to the Law on foreign Investment in Vietnam.

1.2 Power selling to Export Processing Zones

1.3 foreign ships on Vietnamese ports.

2. Service commercial businesses:

- Application objects: All foreign companies, organizations or individuals that directly invest to Vietnam or make joint-venture with Vietnamese organizations individuals with the aim of business on services, touring, commerce accor ding to the Law on foreign Investment in Vietnam.

3. Living conditions

Application objects:

- All embassies, commercial affairs, representative organizations, international organizations, diplomacy organizations and other foreign organizations.

- Living quarters for foreign employees, staffs of foreign business/ production units

- Private houses of foreign individuals or families that live in Vietnam (and do not live in hotels, guest house as mentioned above in item d, art.VI)

B. SOME GENERAL MATTERS

1. All power users shall sign contract with power organization and shall not use power in entrusted form.

2. for the users, that use power for many different purposes, there are different levels of price (as specified in art.I..VII), therefore it is necessary to make separate powermeters for each level of price and it shall be written in power pu rchasing contract.

In case that it is impossible to separate the powermeters, the two sides-power buyer and seller shall jointly determine power shares of each price level. The power companies shall guide in detail this method of calculation

3. Power payment terms shall be applied according to the existing applicable regulations.

Customer who delay the power payment shall bear the interest rate as regulated by bank.

4. Customer who change the using purpose of power (hence the price level also changes), shall inform the power organization 15 days before. Otherwise, the customer shall be treated according to the regulation "Treatment for power usi ng Break"

5. Power using amount shall be agreed by both buyer and seller and shall be written in the contract.

C. PROVISION Of IMPLEMENTATION

- All services of finance - Price of Goods, power services shall combine to implement this circular.

- This circular comes into force from 1st August, 1994. All previous regulations contrary to this circular shall be abolished.

- Any troubles arisen during the implementation shall be reported to Inter-Ministry for timely solution.

for Ministry Energy for the Government Price Committee Minister Head of the Government Price Committee

THAI PHUNG NE TRAN QUANG NGHIEM (Signed) (Signed)