Issues Related to Competition Laws

Vietnam

F. Law on Electricity

- A law on Electricity has also passed the National Assembly of Vietnam in November 9, 2004 and come into enforced by July 1, 2005, at the same time of Competition law.

The Electricity law is a detailed legislative instrument governing electricity sector. It sets out provisions concerning:

Scope of application

This Law provides regulations on the electric power sector planning and investment; electricity savings; power market; the rights and obligations of organizations and individuals participating in electricity activities and usage; protection of electrical equipment, electricity works and power safety.

Objects of application

This Law shall apply to organizations and individuals who engage in electricity activities and usage or other activities related to electricity in Viet Nam. In case of otherwise stipulated by an Intenational treaty, to which the Socialist Republic of Viet Nam has signed or acceded, the regulations specified in the treaty would prevail.

Principle of activities of an electric power market

• Ensure the transparency, equality, healthy competition and nondiscrimination between (electric) power market's participants.
• Respect right of freedom to select partners and forms of transactions of the market's participants, in conformity with levels of development of the power market.
• The Government that regulates the power market activities to ensure sustainable power system development, satisfying the requirements to supply electricity in a secure, stable and effective fashion.

Formation and development of power market

Power market is formed and developed under the sequent levels as follows:

a) Competitive power generation market;

b) Competitive power bulk market;

c) Competitive power retail market.

The Prime Minister shall define the road map, pre-conditions to form and develop levels of the power market.

State management of electricity activities and usage

The Ministry of Industry shall be responsible to the Government for conducting functions of state management of electricity activities and usage.

Contents of electricity regulation

(i). Develop regulations on operation of a competitive power market and directions for implementation.

(ii). Research and recommend measures to regulate power supply-demand relationship and manage the realization of power supply-demand balance.

(iii). Issue, modify, amend, and revoke electricity activity license as prescribed in Article 38 of this Law.

(iv). Specify conditions and procedures for interruption or deduction of electricity consumption; conditions and procedures for connection to the national power grid.

(v). Research and develop retail electricity tariffs and implement electricity tariff regimes and policies.

(vi). Conduct consultations with relevant organizations and agencies on the retail electricity tariff.

(vii). Approve and adjust bulk power sale tariffs; approve transmission charges, distribution charge and others according to Government's regulation.