Accordingly, when becoming an independent accounting unit, the National Power System and Electricity Market Operator shall preside over and coordinate with Vietnam Electricity to develop and report the cost calculation plan to determine the price for power system operation and electricity market transaction management according to the provisions of this Circular to report to the Electricity Regulatory Authority for appraisal.
The price for power system operation and electricity market transaction management is determined annually based on reasonable, valid expenses with allowable profits to perform tasks related to dispatching, operating the power system, and managing electricity market transactions during the year and is determined based on the total revenue from dispatching and operating the power system and managing electricity market transactions over the total upstream electricity output of wholesale electricity buyers in the wholesale electricity market.
Working scene at National Power Load Dispatch Center. Photo: VGP
Costs forming the price of power system operation and electricity market transaction management
The total annual revenue from power system operation and electricity market transaction management is determined from the components of allowable capital costs, allowable operation and maintenance costs, allowable profits, and the amount of revenue adjustment in year N.
The allowable capital costs are determined based on the following costs: expected fixed asset depreciation costs, expected financial costs, expected exchange rate differences arising from debt repayment in foreign currency, and expected exchange rate differences in revaluation.
The allowable operation and maintenance costs include expected costs such as material costs, salary costs, major repair costs, outside service costs, and other cash costs.
The expected allowable profit is determined according to the Owner's Equity as of December 31 (or June 30 in case there is no data as of December 31) of year N-1 with the Pre-tax Profit Margin on the Owner's Equity based on the current average retail electricity price plan or the decision of the competent authority, not exceeding 10% in the period up to 2030.
In addition, Circular No. 10/2024/TT-BCT also stipulates that in case there is a difference between the data for calculating the price of power system operation and electricity market transaction management and the actual data, which leads to changes in the estimated price of power system operation and electricity market transaction management compared to the approved price, the price of power system operation and electricity market transaction management will be adjusted according to the report of the Power System and Electricity Market Operator.
Based on the approved price for power system operation and electricity market transaction management, the Power System and Electricity Market Operator and Vietnam Electricity will sign a Service Contract for operating the power system and electricity market. Vietnam Electricity is responsible for paying the cost of dispatching the power system and operating the electricity market transactions according to the signed contract.