Consulting on the Draft Decree of the Government on the mechanism of direct electricity purchase and sale

The Ministry of Industry and Trade has just completed Draft 1 of the Government Decree regulating the direct electricity purchase and sale mechanism between power generation units and large electricity users (DPPA mechanism).

Implementing the tasks in the Resolutions of the National Assembly , the National Assembly Standing Committee and implementing the direction of the Prime Minister, on December 29, 2023, the Ministry of Industry and Trade submitted to the Prime Minister a dossier proposing to develop a Government Decree regulating the DPPA mechanism.

On March 15, 2024, at the Government headquarters, Prime Minister Pham Minh Chinh chaired a meeting of the Government Standing Committee on the development of a Government Decree regulating the DPPA mechanism.

On March 22, 2024, the Government Office issued Official Dispatch No. 112/TB-VPCP and Official Dispatch No. 1942/VPCP-CN dated March 25, 2024, in which the Ministry of Industry and Trade was assigned to organize the drafting of the Decree in accordance with the provisions of the Law on Promulgation of Legal Documents, submit it to the Government in May 2024 and conduct parallel, independent coordination with the Ministry of Justice to review the shortened process. In case of drafting according to the full or shortened process, it is still necessary to seek opinions and fully assess the impact of relevant parties and the impact on the macro economy.

On April 9, 2024, the Minister of Industry and Trade signed and issued Decision No. 814/QD-BCT on the establishment of the Drafting Committee and Editorial Team to develop the Decree.

To date, Draft 1 of the Decree on the DPPA mechanism has been completed, including 6 Chapters and 35 Articles. Accordingly, Chapter I provides general provisions (including 4 Articles); Chapter II: Direct electricity trading via private lines (including 4 Articles); Chapter III: Direct electricity trading via the national grid (including 2 Sections and 15 Articles); Chapter IV: Procedures for participating in the direct electricity trading mechanism (including 2 Articles); Chapter V: Inspection, supervision and implementation (including 9 Articles); Chapter VI: Implementation provisions (including 1 Article).

The first draft was completed based on the comments of the members of the Drafting Committee and Editorial Team at the meeting with the Minister of Industry and Trade on the afternoon of April 10, 2024.

In this Draft, basic issues such as the scope of regulation, applicable subjects and forms of the direct electricity trading mechanism have been clearly defined, along with regulations on contracts, prices, payment mechanisms between parties and especially the responsibilities of parties participating in electricity trading under the DPPA mechanism.

Regarding the form of direct electricity trading through the national grid, the Draft Decree is divided into 3 sections with different subjects participating in electricity trading: Electricity trading between power generation units and Vietnam Electricity Group through the spot market; Electricity trading and payment between large electricity users and the Electricity Corporation; Electricity trading and payment between large electricity users and power generation units.

The Ministry of Industry and Trade is continuing to widely collect opinions on the Draft Decree of the Government regulating the DPPA mechanism to synthesize, absorb, complete and submit to the Government before April 30, 2024.

People, businesses and localities wishing to contribute their opinions will send them to the Electricity Regulatory Authority, Ministry of Industry and Trade.

According to Thu Trang/Tin Tuc Newspaper

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