8th Session, 15th National Assembly: National Assembly passes Electricity Law

The amendment of the Electricity Law is considered very necessary and urgent in order to promptly institutionalize the Party's new guidelines and policies, creating a basis for breakthrough actions to develop the electricity industry.

The National Assembly voted to pass the Law on Electricity (amended). (Photo: Doan Tan/VNA)

Continuing the working program, on the afternoon of November 30, the National Assembly voted to pass the Electricity Law with 439/463 National Assembly deputies participating in the vote (accounting for 91.65%).

The Draft Law on Electricity (amended) consists of 9 chapters with 130 articles, regulating electricity development planning and investment in construction of electricity projects; development of renewable energy and new energy electricity; electricity operation licenses; competitive electricity market, electricity prices, electricity trading activities; responsibilities, rights and obligations of organizations and individuals operating in electricity and using electricity; operation and regulation of the national electricity system, management of electricity market transactions; protection of electricity works and safety in the electricity sector; state management of electricity.

The amendment of the Electricity Law is considered very necessary and urgent in order to promptly institutionalize the Party's new guidelines and policies, creating the basis for drastic and breakthrough actions to develop the electricity industry.

At the same time, overcome the difficulties and shortcomings of the current Law and the existing shortcomings and limitations such as: lack of clear and specific regulations for investment in emergency power projects; lack of adequate regulations on mechanisms to promote investment, construction and exploitation of new energy sources and renewable energy; no regulations on specific mechanisms for developing offshore wind power, suitable for Vietnam's conditions in each period, to attract domestic and foreign investment; no policies for rooftop solar power, small-scale wind power serving the living needs of households, state agency headquarters, public works to ensure compliance with development goals and power system conditions in each period...

Presenting a summary report on the explanation, acceptance and revision of the draft Law on Electricity (amended), Chairman of the Committee on Science, Technology and Environment Le Quang Huy said that to ensure the consistency of the legal system, the National Assembly Standing Committee has directed relevant agencies to review and unify the revision of related contents, ensuring consistency and consistency with the legal system, especially the laws that have been considered and passed by the National Assembly at the 8th Session on planning, investment and bidding.

Regarding the development of electricity in rural areas, ethnic minority areas, mountainous areas, border areas, islands and areas with particularly difficult socio-economic conditions, taking into account the opinions of National Assembly deputies, the draft Law has been revised and stated in Clause 3, Clause 13, Article 5, Article 17, which clarifies the mobilization of investment capital for electricity development in rural areas, ethnic minority areas, mountainous areas, border areas, islands, areas with particularly difficult socio-economic conditions and the State's support for electricity bills used for living purposes of poor households and social policy households.

In addition, the development of renewable energy depends on renewable energy sources, natural conditions, and technical infrastructure; in cases where rural, mountainous, and island areas meet sufficient conditions, preferential mechanisms will be applied to invest in the construction of renewable energy power plants according to the provisions of this Law.

Regarding the content of eliminating cross-subsidy in electricity prices, the Standing Committee of the National Assembly finds that it is necessary to gradually reduce and eliminate cross-subsidy in electricity prices between customer groups and regions in accordance with the spirit of Resolution No. 55-NQ/TW. Currently, retail electricity prices are applied uniformly nationwide, with cross-subsidy in electricity prices between regions.

For cross-subsidization of electricity prices between customer groups, it is necessary to gradually reduce and eventually eliminate them through building a retail electricity price structure that reflects costs according to the characteristics of electricity consumption caused to the power system.

The implementation of cross-subsidy reduction in electricity prices depends on many factors (such as the progress of implementation and the level of restructuring of the electricity sector, feasible financial policies/tools to implement cross-subsidy reduction...), and needs to be carefully and thoroughly researched and considered to develop a specific roadmap; the regulation to immediately eliminate cross-subsidy in electricity prices is not feasible.

Therefore, the draft Law only stipulates the roadmap for eliminating cross-subsidy in electricity prices and assigns the Ministry of Industry and Trade to submit to the Prime Minister for approval, the implementation roadmap is synchronous with the levels of electricity market development as shown in Point d, Clause 2, Article 39 and Point c, Clause 3, Article 50.

Incorporating the opinions of National Assembly deputies, the draft Law stipulates that the winning electricity price is the maximum electricity price for the electricity buyer to negotiate with the winning investor. The Government is assigned to specify the details of the negotiation and conclusion of investment and business project contracts and electricity purchase and sale contracts with the winning investor on the basis of ensuring the rights of the parties in Clause 2, Point c, Clause 3, Article 19.

Regarding the futures electricity market, this is a new issue, with no practical experience in Vietnam. A thorough impact assessment is needed before it is included in the draft Law. The draft Law only stipulates general principles and assigns the Government to specify details as shown in Clause 6, Article 45.

The approval of the Electricity Law (amended) will contribute to accelerating the implementation of electricity projects and works, ensuring security of electricity supply, especially in the context of huge demand for electricity and forecast to increase rapidly in the coming time.

This is also the legal basis for the Government to direct ministries and branches to urgently and actively develop and complete draft documents guiding the implementation of the Law./.

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