Circular No. 12/2025/TT-BCT dated February 01, 2025 on methods for determining electricity generation service price; rules for determining electricity price for electricity project implementation; main contents of power purchase agreement

CIRCULAR

METHODS FOR DETERMINING ELECTRICITY GENERATION SERVICE PRICE; RULES FOR DETERMINING ELECTRICITY PRICE FOR ELECTRICITY PROJECT IMPLEMENTATION; MAIN CONTENTS OF POWER PURCHASE AGREEMENT

Pursuant to the Law on Electricity dated November 30, 2024;

Pursuant to Decree No. 96/2022/ND-CP dated November 29, 2022 of the Government on functions, tasks, powers, and organizational structure of the Ministry of Industry and Trade; Decree No. 105/2024/ND-CP dated August 1, 2024 on amendment to Decree No. 96/2022/ND-CP and Decree No. 26/2018/ND-CP dated February 28, 2018 of the Government on Organization and operation regulations of Vietnam Electricity;

At request of the Director of Electricity Regulatory Authority of Vietnam;

The Minister of Industry and Trade promulgates Circular on methods for determining electricity generation service price; rules for determining electricity price for electricity project implementation; main contents of power purchase agreement.

Chapter I

GENERAL PROVISIONS

Article 1. Scope and regulated entities

1. This Circular provides guidelines on implementing Clause 3 Article 12, Clause 5 Article 44, Point g Clause 1 Article 51 of the Law on Electricity No. 61/2024/QH15 on method for determining electricity generation service price; rules for determining electricity price for electricity project implementation; main contents of power purchase agreement.

2. This Circular applies to:

a) Power plants operating in territory of the Socialist Republic of Vietnam and connected to national electricity system;

b) Other agencies, organizations, and individuals.

3. Provisions pertaining to methods for determining electricity generation service price; rules for determining electricity price for electricity project implementation; main contents of power purchase agreement (PPA) hereunder do not apply to: multi-objective strategic hydroelectricity plants, small-scale renewable energy power plants that adopt avoidable cost tariff, independent power plants invested under BOT model, power plants and generator groups providing auxiliary services; power plants where electricity purchase mechanics dictated under documents of competent authorities are adopted.

Article 2. Definitions

In this Circular, the terms below are construed as follows:

1. The Seller means an Electric utility possessing a power plant.

2. The Buyer means Vietnam Electricity (or authorized representatives thereof), Northern Power Corporation, Central Power Corporation, Southern Power Corporation, Hanoi City Power Corporation, Ho Chi Minh City Power Corporation, major electricity users, other electricity buyers according to regulations of electricity market.

3. Project developer means an agency, organization, individual possessing capital, applying for capital loan, or being assigned to manage, use capital for investment in electricity project.

4. Electricity delivered means electricity delivered to the Buyer by the Seller.

5. Electric utility means an electricity entity in possession of a power plant or power plants.

6. Electrical system and market operator means the National Power System and Market Operator Company or other entity depending on development level of electricity market.

7. Fuel purchase agreement means an agreement between the Electric utility and a fuel trading entity for the supply of fuel for power plants, signed in accordance with applicable laws, guarantees legitimate fuel sources and competitive, transparent prices.

8. Liquefied natural gas (LNG) storage, regasification, and distribution agreement means an agreement between Electric utility or a fuel trading entity and LNG storage investment, management entity for the storage, regasification, distribution, and supply of gas for power plant and is signed in a manner compliant with applicable laws with competitive and transparent prices.

9. Fuel transport agreement means an agreement between Electric utility or fuel trading entity for the transportation of fuel to power plants, is signed in accordance with applicable laws, and guarantees competitive, transparent prices.

10. Base year means the year in which total investment is approved for use in calculation of electricity generation service price.

11. New power plant means a power plant built new or a part of power plant built new that has not entered into first-time power purchase agreement (PPA).

12. Net heat rate means the amount of thermal energy consumed to produce one kWh of electrical energy at delivery point (BTU/kWh or kJ/kWh or kCal/kWh).

13. Total investment means total investment costs of the project determined in accordance with applicable regulations and law, fundamental design, and other contents of feasibility study.

14. Revised total investment means total investment costs revised in accordance with construction laws applicable as of the date on which electricity generation service price negotiation is conducted.

15. Finalized investment means total legitimate expenditure incurred during investment process until project operation. Legitimate expenditure means expenditure incurred within the scope of approved project, design, estimates; signed construction contracts compliant with regulations of the law; including amendments thereto approved in a law compliant manner. Finalized investment is to be limited by approved total investment (or revised total investment) as per the law.

Chapter II

METHODS FOR DETERMINING ELECTRICITY GENERATION SERVICE PRICE, RULES FOR DETERMINING ELECTRICITY PRICE FOR ELECTRICITY PROJECT IMPLEMENTATION

Section 1. METHODS FOR DETERMINING ELECTRICITY GENERATION SERVICE PRICE FOR NEW POWER PLANT

Article 3. Rules for determining electricity generation service price

1. PPA price of a power plant shall be developed on the basis of:

a) Legitimate, reasonable costs incurred by Project developer throughout economic life of the project;

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

2. PPA price is to be negotiated between the Seller and the Buyer and developed in accordance with Article 4 hereof.

3. PPA price does not include value-added tax (VAT), water tax, licensing fee for water resource mining, forest environment service fee, environmental protection fee in respect of solid waste and industrial wastewater (applicable to thermal power plants) and other taxes, fees, monetary collectables according to regulations of competent authorities (other than those included in electricity generation service price).

4. PPA price for comparing with electricity generation service price bracket in the Base year:

a) PPA price in the Base year must be within price bracket for electricity generation imposed by the Minister of Industry and Trade in the Base year, in which, PPA price of power plant for comparison with price bracket 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;

b) In case electricity generation service price bracket is not available in Base year, PPA price shall be calculated by converting corresponding cost components in order to compare with electricity generation service price bracket of the latest year applicable to the power plant model.

Article 4. Methods for determining PPA price in Base year of power plant

PPA price of Base year P_C (VND/kWh) is to be determined using formula below:

P_C = P^CD + P^BD

1. P^CD (VND/kWh) means fixed costs of the Base year and is determined using the formula below:

P^CD = FC + FOMC_b

Where:

2. P^BD (VND/kWh) means variable price of the Base year and is determined as follows:

a) In respect of thermal power plant, P^BD is determined using the formula below:

Where:

b) In respect of hydroelectricity plant, solar power plant, and wind power plant: P^BD equals 0.

3. Experimentation, test, commissioning costs of power plant: Payment of experimentation, test operation, commissioning costs prior to commercial operation date agreed upon by the Seller and the Buyer is not to be repeated in total approved investment of the project.

Article 5. Methods for determining average fixed costs of power plant

1. Average fixed costs of power plant (FC) are determined on the basis of project financial analysis according to Schedule 1 and Schedule 2 under Appendix II attached hereto. Input data for determination of average fixed costs (FC) of power plant are determined in accordance with Clause 2 of this Article.

2. Primary input data used in determination of average fixed costs (FC) of power plant:

a) Investment expenditure: Investment expenditure determined on the basis of total investment (or revised total investment) effective as of the date on which negotiation for electricity generation service price or finalized investment is conducted in respect of negotiating power plant in accordance with Article 15 hereof shall be used in the calculation of electricity generation service price, including all expenditure within investment liability of the Seller until connection points of power plant such as: power plant; infrastructure, power plant wharfs, electricity storage system (in case of renewable energy power plants), investment expenditure on electrical grid from power plant to connection points, other relevant costs, and costs allocated to the project (if any);

b) Economic life: Determined in accordance with Appendix I attached hereto, unless competent authority issue documents approving economic life of project that is different from that stipulated under this Circular at which point said documents prevail (in years);

c) Average electricity generated in multiple years at delivery point (A_GN) is calculated:

Where:

Where A_GN cannot be determined using the aforementioned formula, the Seller and the Buyer shall determine in accordance with fundamental design, technical design converted to effective delivery points on negotiation date (in respect of wind power plant, the parties shall negotiate to determine productivity in accordance with P50 energy yield). Where A_GN cannot be determined on the basis of approved technical design or fundamental design, A_GN shall then be determined in accordance with documents of competent authority. Where A_GN cannot be determined even via documents of competent authority, A_GN shall then be agreed upon by the Seller and the Buyer.

d) Period of provisions for depreciation of primary fixed property (year): Determined on the basis of period of provisions for depreciation of individual group of primary fixed property in accordance with periods for creating provisions for depreciation under relevant laws from time to time or documents of competent authority permitting provisions for depreciation (if any);

dd) Percentage of equity, local capital, and investment stage in total investment shall be determined in accordance with decision approving investment project, capital mobilization on negotiation date and compliant with regulations promulgated by competent authority. Equity accounts for at least 15% of total investment;

e) Loan interest and loan repayment period during operating period: determined on the basis of loan agreements, documents, dossiers between Project developer and credit institutions, creditors.

Where total loan capital under load agreements or legitimate documents between Project developer and credit institutions is lower than total loan capital according to electricity price calculation plan, the Seller and the Buyer shall negotiate about the remaining loan capital on the basis of: Minimum dept repayment period of 10 years and loan interest as follows:

e1) Foreign currency loan interest shall be equal to the Secured Overnight Financing Rate (SOFR) with an average term of 180 days over 36 months preceding the calculation date announced by FED (www.newyorkfed.org) plus (+) annual average arrangement fee charged by the bank at 3% per year;

e2) VND loan interest shall be equal to the average VND deposit interest rate with a term of 12 months for individual customers of 05 years preceding the year of calculation, determined on September 30th every year by Vietcombank, VietinBank, BIDV and Agribank or their lawful inheritors, plus (+) the annual average arrangement fee charged by the banks at 3%/year.  

g) Corporate income tax rates, other taxes and fees: Determined in accordance with relevant laws.

Article 6. Methods for determining operating and maintenance costs of power plant

FOMC_b of the Base year (VND/kWh) shall be determined using the formula below:

Where:

1.  of the Base year (VND/kWh) shall be determined using the formula below:

Where:

: Is total major repair costs and other costs in Base year and determined using formula below:

TC_scl =VDT_XD+TB x k_scl + C_cdk

Where:

2.  (VND/kWh) shall be determined using the formula below:

Where:

Article 7. Methods for determining variable prices of thermal power plant

Variable prices of thermal power plant in the Base year P^BD (VND/kWh) are determined using formula below:

Where:

1. Variable price components dependent on changes to primary fuel costs of power plant in the Base year , are determined using formula below:

Where:

2. Variable price components dependent on changes to secondary fuel costs of power plant in the Base year , are determined using formula below:

Where:

3. Variable cost components adjusted by other factors of power plant in the Base year  are determined using the following formula:

Where:

4. Transportation costs for primary fuel of power plant in the Base year  are determined using formula below:

Where:

Article 8. Power plants where methods for determining electricity generation service prices have not been promulgated

For power plants where methods for determining electricity generation service prices and electricity generation service price bracket have not been promulgated, the Buyer and the Seller shall negotiate about development of methods for determining electricity generation service prices in accordance with actual conditions of power plants and request the Ministry of Industry and Trade to review.

Article 9. Provisional prices

Where negotiation on PPA price has not concluded, the Buyer and the Seller have the right to agree on provisional prices until official prices are decided.

Article 10. Methods for determining electricity generation service prices for solar power plants, wind power plants that have entered into PPA with EVN but have not satisfied requirements for adoption of electricity prices according to Decisions of the Prime Minister

Methods for determining electricity generation service prices for solar power plants, wind power plants that have entered into PPA with EVN but have not satisfied requirements for adoption of electricity prices according to Decision No. 11/2017/QD-TTg dated April 11, 2017, Decision No. 13/2020/QD-TTg dated April 6, 2020, Decision No. 37/2011/QD-TTg dated June 26, 2011, Decision No. 39/2018/QD-TTg dated September 10, 2018 of the Prime Minister:

1. The Seller and the Buyer shall rely on rules in determining electricity generation service prices under this Circular to develop electricity generation service price plan of power plant:

a) Base year of power plant undergoing electricity generation service price negotiation means the year in which said power plant enters into commercial operation;

b) Where electricity generation service prices have not been adopted for parts of power plant, said electricity generation service prices shall be determined by input data of the entire power plant.

2. Average annual delivered electricity is determined as follows:

a) On the basis of fundamental design (or technical design if compliance with fundamental design is not feasible) appraised by competent authority (in respect of wind power plant, the parties shall negotiate to determine productivity in accordance with P50 energy yield);

b) Where method detailed under Point a of this Clause is not viable, the parties shall negotiate based on technical specifications in fundamental design or technical design dossiers used in notice on appraisal results of competent authority. Where annual delivered electricity is determined by fundamental design, total investment based on fundamental design shall be used; where annual delivered electricity is determined by technical design, total investment based on corresponding technical design shall be used.

3. FOMC_b is determined using formula below:

Where:

TC: Total operating and maintenance costs of power plant and determined by: TC = VDT x k

Where:

4. Other parameters for calculating electricity generation service prices, methods for determining PPA prices of power plant upon payment, and rules in determining annual fixed costs of PPA shall be negotiated by the Seller and the Buyer on the basis provided under Chapter II hereof.

5. Documents serving PPA negotiation shall conform to Clause 1 Article 19 hereof.

Article 11. Rules in determining electricity prices in bidding for investor selection of electricity project

Where bidding for investor selection of electricity projects is conducted in accordance with Clause 1 Article 19 of the Law on Electricity, electricity prices in bidding documents are to be developed in a manner compliant with principles under Chapter II hereof. Data for calculation of electricity prices are to be proposed on the basis of bidding documents and consulting entities.

Section. METHODS FOR DETERMINING ELECTRICITY GENERATION SERVICE PRICES OF POWER PLANTS IN COMMERCIAL OPERATION

Article 12. Methods for determining electricity generation service prices for power plants with expired PPA and unexpired economic life

For power plant (of which PPA has been negotiated and signed in accordance with Circular No. 41/2010/TT-BCT, Circular No. 56/2014/TT-BCT , Circular No. 57/2020/TT-BCT , and Circular No. 07/2024/TT-BCT) of which PPA has expired and economic life has not expired, the Seller and the Buyer shall negotiate about electricity generation service prices of subsequent years until expiry of economic life in a manner that ensures the average fixed costs does not change relative to prices agreed upon by the Seller and the Buyer.

Article 13. Methods for determining electricity generation service prices for power plants with expired economic life

1. Fixed costs of power plant with expired economic life shall be so determined to allow power plant to recover operational costs. Period of calculation shall be negotiated by the parties or determined in accordance with major repair cycle of primary equipment and agreement on reasonable profits. Where documents of competent authority approving period of calculating fixed costs, said documents shall prevail.

2. Variable prices of thermal power plant with expired economic life shall be determined in accordance with Article 7 hereof taking into account elements appropriate to actual operating situations.

3. Average electrical production generated shall be so determined on the basis of power plant capacity under approved design and T_max under Appendix I attached hereto. In respect of power plant that lacks T_max under Appendix I attached hereto, average electrical production shall be so determined on the basis of actual statistics of the nearest period appropriate to the next calculation period.

4. Where economic life of a power plant has expired and power plant upgrade investment is implemented, both parties shall negotiate on prices of PPA of the power plant in accordance with Article 4, Article 5, Article 6, and Article 7 hereof and depreciation period of primary equipment subject to the upgrade.

5. PPA term of power plant with expired economic life shall be negotiated by the Seller and the Buyer on the basis of major repair cycle of primary equipment.

Article 14. Methods for determining electricity generation service prices for power plants with unexpired PPA, expired electricity generation service prices or power plants with expired BOT contracts and delivered to the Government or power plants where electricity pricing under documents of competent authorities is adopted and power plants in commercial operation with expired PPA

1. Electricity generation service prices shall be determined in a manner that allows power plant to recover investment (if any), electricity production costs, and ensures reasonable profits.

2. Calculation period of electricity generation service prices shall be compliant with the remainder of economic life or PPA term or agreement between the parties.

3. Average electrical production generated shall be so determined on the basis of power plant capacity under approved design and T_max under Appendix I attached hereto. In respect of power plant that lacks T_max under Appendix I attached hereto, average electrical production shall be so determined on the basis of actual statistics of the nearest period appropriate to the next calculation period.

4. Variable prices of thermal power plant with expired economic life shall be determined in accordance with Article 7 hereof taking into account elements appropriate to actual operating situations.

5. Operating and maintenance costs are negotiated between the parties.

6. Investment expenditure for calculation of electricity generation service prices shall be determined on the basis of remaining property value on the date on which electricity generation prices no longer take effect or PPA expires plus renovation, upgrade costs (if any).

Article 15. Methods for determining electricity generation service prices of power plants renegotiated based on finalized investment

In respect of power plant where electricity generation service prices are renegotiated in accordance with finalized investment according to Clause 1 and Clause 2 Article 27 hereof:

1. Upon determining finalized investment, the Seller has the responsibility to send documents related to the finalized investment to the Buyer.

2. The Seller and the Buyer shall re-negotiate about electricity generation service prices on the following principles:

a) Methods for determining PPA price are compliant with Article 4 hereof;

b) Calculation parameters for PPA prices are compliant with Article 4 hereof and updated on the date on which finalized investment is determined;

c) PPA prices for comparison with electricity generation price bracket do not exceed the applicable price bracket of the year in which the entire power plant enters into commercial operation;

d) Electricity generation service prices applicable from commercial operation date of power plant and annual fixed costs shall conform to Article 16 hereof; annual fixed costs of years preceding the date on which the Seller and the Buyer enter into contracts for PPA amendments on the basis of electricity prices determined by finalized investment;

dd) The Base year of power plant of which electricity generation service prices are negotiated on the basis of finalized investment shall be the year in which the entire power plant enters into commercial operation.

Section 3. METHODS FOR DETERMINING ANNUAL POWER PURCHASE AGREEMENT PRICES

Article 16. Rules in determining annual fixed costs of PPA

1. The parties have the right to apply average fixed costs that they have negotiated to years within contract term. Where the parties agree to convert the negotiated average fixed costs to annual fixed costs, the determination of these fixed costs must adhere to principles under Clause 2 of this Article.

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

a) Financial discount rate when calculating annual fixed costs agreed by both parties shall equal the IRR of power plant;

b) Projects developer shall repay loans for investment and construction of power plant according to deadline for repaying loan capital.

Article 17. Rules in adjusting annual electricity generation service prices in PPA

1. Components of operating and maintenance costs of power plant are to be adjusted on the principles below:

a) Components of operating and maintenance costs dependent on major repair costs and other costs are to be adjusted for average inflation rate in accordance with Appendix I attached hereto. The Seller and the Buyer shall negotiate about mechanism of adjusting components of operating and maintenance costs dependent on major repair costs and other costs in respect of items where foreign currency is involved;

b) Components of operating and maintenance costs dependent on personnel costs are to be adjusted by changes to region-based minimum wage application on the date of payment or CPI provided by central statistics authority to a maximum of 2,5%/year.

2. On an annual basis, the Seller and the Buyer shall calculate and negotiate payment plan for exchange rate differences on the basis of total capital loan in foreign currency, repayment plan for loan in foreign currency, data on actual principal repayment, exchange rate agreed upon by the Seller and the Buyer in electricity generation service pricing, and exchange rate of the previous year. Difference in FED rates (VND) is calculated using the formula below:

Where:

Article 18. Methods for determining PPA prices of power plant at the time of payment

PPA prices of power plant at the time of payment for electricity bill of month t, year j are P_{C,j t} (VND/kWh) and are determined using formula below:

Where:

1. Operating and maintenance costs of month t and year j are determined using formula below:

Where:

a) Components of operating and maintenance costs dependent on major repair costs and other costs are determined using the formula below:

Where:

b) Components of operating and maintenance costs dependent on personnel costs of month t and year j  are determined as follows:

Where salaries used in calculation of electricity prices equal the region-based minimum wage, components of operating and maintenance costs dependent on personnel costs are to be determined using the formula below:

Where:

Where total personnel costs TC_nc are calculated based on percentage of investment in construction and equipment, components of operating and maintenance costs dependent on personnel costs are determined using formula below (VND/kWh):

Where:

2. Variable prices of thermal power plant in month t and year j  (VND/kWh) are determined using formula below:

Where:

a) Components of variable costs depending on changes to primary fuel costs of power plant in month t and year j  are determined using formula below:

Where:

 b) Components of variable costs dependent on changes to secondary fuel costs of power plant in month t and year j  are determined using formula below:

Where:

c) Components of variable costs adjusted according to other variations of power plant in the year j  are determined using the following formula:

Where:

d) Transportation costs for primary fuel of power plant in month t year j  (VND/kWh) are determined using formula below:

Where:

3. Total activation costs in the month t of thermal power plant  (VND) are determined using formula below:

Where:

4. Regulations on payment of activation costs:

a) For thermal power plants: conform to regulations on competitive electricity market promulgated by the Ministry of Industry and Trade;

b) For waste-to-energy power plants, bioenergy power plants, new energy power plants: conform to agreement between the Seller and the Buyer.

Chapter III

POWER PURCHASE AGREEMENT

Article 19. Primary contents of power purchase agreement

1. Primary contents of PPA under Appendix III attached hereto shall serve as the basis for negotiation between the Seller and the Buyer. Both parties have the right to negotiate and amend terms and clauses under PPA in a manner compliant with Vietnam’s laws.

2. Language in use is Vietnamese. Where the Seller consists of foreign investors, the Seller and the Buyer may negotiate about the use of English as an additional contract language.

Article 20. Documents serving PPA negotiation between the parties

1. Documents requesting PPA negotiation for new power plants include:

a) Draft PPA according to Appendix III attached hereto;

b) Written approval for investment guidelines of Decision on investment guidelines or Certificate of investment registration of projects;

c) Decision on construction investment and presentation, appraisal reports for power plant investment projects produced by independent advisors, and attachments.

d) Decision approving initial total investment or revised total investment effective as of the date on which negotiation on electricity generation prices and main contents of fundamental design of investment projects relevant to PPA negotiation is conducted, appraisal reports for fundamental design and written notice on appraisal results of fundamental design, total investment issued by construction authorities as per the law (if any);

dd) Negotiation on connection of power plants to national electricity system and connection solution;

e) Loan agreements or documents, texts between Developer and creditors, disbursement plan or recordings for all loan capital;

g) Fuel supply contracts for power plants indicating fuel price for electricity generation, fuel transportation costs, LNG storage, regasification, and distribution costs, and other fees, fuel delivery points and fuel supply time limit;

h) Documents calculating loss of capacity and electricity in transformers, power lines from step-up transfers to points connected to national electrical system and documents calculating self-sufficient electricity in power plants;

i) Documents calculating net heat rate in case of thermal power plants;

k) Electricity pricing defined in accordance with Section 1 and Section 3 of Chapter II hereof;

l) Other relevant documents (if any).

2. Documents serving PPA negotiation of power plants that have entered into commercial operation include:

a) Draft PPA according to Appendix III attached hereto;

b) Existing PPA;

c) Technical dossiers of power plants, technical specifications of SCADA/EMS, protective and automated relay system, P-Q operational characteristics of generator groups thus far;

d) Fuel supply agreements;

dd) Electricity pricing plan of power plants determined in accordance with Chapter II hereof;

e) Financial statements or relevant documents of power plants in recent years up to the date on which PPA negotiation is conducted;

g) Other relevant documents (if any).

Chapter IV

IMPLEMENTATION

Article 21. Responsibilities of electricity authorities affiliated to the Ministry of Industry and Trade

Provide guidelines and examine compliance with this Circular. When necessary, propose Circular amendments to stay in line with practice and conform to regulations of the law.

Article 22. Responsibilities of EVN

1. Take charge and cooperate with the Buyer, the Seller in calculating, unifying solutions for paying rate differences in implementation of PPA in accordance with this Circular.

2. Take charge and cooperate with the Buyer, the Seller in reviewing, unifying PPAs to stay in line with operations of electric utilities, improve operational effectiveness, reduce general costs of national electrical system at request of the Buyer or the Seller.

Article 23. Responsibilities of the Buyer

1. Negotiate PPA with the Seller in accordance with this Circular; ensure accountability, accuracy, legitimacy, and adequacy of provided data and documents.

2. Cooperate with the Seller in calculating, unifying rate differences in implementation of PPA in accordance with this Circular and providing to EVN for consideration of payment solutions.

Article 24. Responsibilities of the Seller

1. Negotiate PPA with the Buyer in accordance with this Circular; ensure accountability, accuracy, legitimacy, and adequacy of provided data and documents.

2. Provide adequate information, ensure accuracy, legitimacy, adequacy of data, documents provided to relevant entities and authorities during negotiation and examination of PPA.

3. Select fuel providers, fuel transport service providers and enter into fuel supply and transport agreements in a manner compliant with Vietnam’s laws and ensuring equality, competitiveness, and transparency.

4. Control fuel supply and fuel transport agreements in order to ensure legitimate fuel origin, competitive and transparent prices in accordance with relevant law provisions.

5. Cooperate with the Buyer in calculating annual rate differences in implementation of PPA in accordance with this Circular and requesting EVN to consider payment solutions.

Article 25. Responsibilities of fuel providers and fuel transport service providers

Sign framework agreements, fuel supply agreements, fuel transport agreements, and other relevant fuel agreements as per the law in a manner respecting equality, competition, transparency.

Article 26. Amendment to electricity generation service price

The Seller and the Buyer shall re-negotiate electricity generation service prices under signed PPA in accordance with Clause 4 Article 52 of the Law on Electricity.

Article 27. Transition clause

1. Where power plants have entered into PPAs in accordance with Circular No. 57/2020/TT-BCT , Circular No. 56/2014/TT-BCT , Circular No. 51/2015/TT-BCT and new energy power projects initiated before September 19 of 2017, the parties shall, when finalized investment is available, request re-calculation of electricity generation service prices depending on approved finalized investment under Article 15 hereof.

2. Where power plants have entered into PPAs in accordance with Circular No. 41/2010/TT-BCT and where competent authorities request re-negotiation on electricity prices according to finalized capital, the parties shall re-calculate electricity generation service prices based on approved finalized capital in accordance with Article 15 hereof.

3. Where power plants have entered into PPAs, the parties have the right to negotiate and discuss amendment to PPAs in accordance with this Circular.

4. For every phase of electricity market, the parties are responsible for revising and amending clauses under PPAs accordingly.

5. For rate differences of which payment plan has not been issued before the effective date of Circular No. 07/2024/TT-BCT , the parties shall calculate and negotiate payment plan for rate differences for this stage in accordance with Circular No. 07/2024/TT-BCT.

6. For electricity projects of which specific connection is invested before the effective date hereof, methods for determining specific connection prices under Circular No. 07/2024/TT-BCT continue to apply.

Article 28. Entry into force

1. This Circular comes into force from February 01, 2025.

2. Annul Circular No. 07/2024/TT-BCT dated April 12, 2024 of the Minister of Industry and Trade.

3. Annul Article 4 of Circular No. 13/2017/TT-BCT dated August 3, 2017 of the Minister of Industry and Trade on amendment to Circular No. 57/2014/TT-BCT dated December 19, 2014.

4. Difficulties that arise during implementation must be reported to Ministry of Industry and Trade./.