Amending the Electricity Law is very necessary and urgent to promptly and comprehensively institutionalize policies and strategies on sustainable development of the electricity sector; ensuring energy security in the coming period.
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#Minister of Industry and Trade Nguyen Hong Dien briefly presented the Proposal on the Electricity Law Project (amended) at the 8th Session of the 15th National Assembly (Photo: Chinhphu.vn)[/caption]The Government proposed that the National Assembly consider and approve the Electricity Law (amended) project according to the 1-session process.
The Electricity Law was promulgated in 2004 and was amended and supplemented with a number of articles in 2012, 2018, 2022 and 2023. Although it has been amended and supplemented four times and each time has resolved a number of difficulties and problems, many provisions of the current Electricity Law have revealed shortcomings and problems, failing to resolve new and important issues arising in practice.
Resolution No. 937 dated December 13, 2023 of the National Assembly Standing Committee pointed out institutional shortcomings and problems in the electricity sector and proposed the need for comprehensive regulations and mechanisms to resolve the above shortcomings and problems, especially in the context of the Fourth Industrial Revolution, digital transformation, and green energy transition that are taking place strongly and are the main trends, greatly impacting the development of our country's electricity industry.
On the other hand, in recent times, the Party and State have issued many major policies and guidelines related to the energy sector in general and electricity in particular; many new related laws have also been issued or amended and supplemented by the National Assembly.
"Therefore, amending the Electricity Law is very necessary and urgent to promptly institutionalize the Party's new guidelines and policies; at the same time, overcome the difficulties and shortcomings of the current Law, ensure the synchronization and unity of the legal system, contribute to promoting the sustainable and effective development of the electricity industry, achieve the goal of doubling the installed capacity of the entire system by 2030 and fundamentally change the structure of power sources to achieve zero net emissions by 2050, ensure national energy security, provide enough electricity for socio-economic development and meet people's living needs", said Tran Viet Hoa, Director of the Electricity Regulatory Authority (Ministry of Industry and Trade) .
Mr. Hoa also said that the Government proposed that the National Assembly consider and approve this Law project according to the 1-session process (to give opinions and approve at the 8th session of the 15th National Assembly) to ensure energy security in the coming period and overcome difficulties and shortcomings in the practical implementation of the Law such as lack of 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; encouragement to convert the use of fossil fuels to the use of low-emission fuel sources in electricity production; no regulations on specific mechanisms to develop offshore wind power suitable to Vietnam's conditions in each period to attract domestic and foreign investment; no policies for small-scale renewable energy to serve the living needs of households, administrative agencies, public works to ensure compliance with development goals and power system conditions.
Timely and comprehensively institutionalize policies and strategies on sustainable development of the electricity sector.
According to Director of the Electricity Regulatory Authority Tran Viet Hoa, the Electricity Law (amended) is being developed to promptly and comprehensively institutionalize the Party's guidelines and policies on sustainable development of the electricity sector.
In addition, comprehensively and synchronously amend the provisions of the Electricity Law in the direction of ensuring the inheritance of "ripe, clear, agreed upon by the majority and verified in practice" provisions; abolishing provisions that are no longer suitable, causing difficulties and obstacles; supplementing and developing provisions of a principled and fundamental nature suitable to the new situation, associated with promoting decentralization, delegation of power, reforming administrative procedures and selectively absorbing international experience.
This draft Law does not contain any content contrary to the Constitution, does not contain policies contrary to the Party's guidelines and policies, or the State's laws and policies; does not contain group or local interests, and ensures compatibility with international treaties/commitments to which Vietnam is a member.
The drafting of the Law project has ensured compliance with the provisions of the Law on Promulgation of Legal Documents, specifically:
The Ministry of Industry and Trade has summarized and evaluated the provisions of the current Electricity Law, reviewed relevant laws, prepared a report reviewing legal documents and established a Drafting Committee and Editorial Team in March 2024 to draft the draft law.
The Draft Law was sent for comments as prescribed from March to May 2024; was appraised by the Ministry of Justice and approved by the Government to submit to the National Assembly.
The Minister of Industry and Trade, authorized by the Prime Minister, signed and issued on behalf of the Government Submission No. 380/TTr-CP dated August 7, 2024 to the National Assembly on the draft Law on Electricity (amended) and the Committee for Science, Technology and Environment (UBKHCNMT) and agencies of the National Assembly have conducted a preliminary review of the draft Law; the Standing Committee of the National Assembly (UBTVQH), the Conference of full-time National Assembly deputies have given their opinions on the draft Law.
The Ministry of Industry and Trade has received and explained the comments of the National Assembly deputies and revised the draft Law. On September 25, 2024, the Minister of Industry and Trade, authorized by the Prime Minister, signed and issued on behalf of the Government Submission No. 520/TTr-CP on the draft Law on Electricity (amended) and the Committee for Science, Technology and Environment held a meeting to review the draft Law.
Currently, the Ministry of Industry and Trade is researching, receiving and explaining the review opinions to complete the Draft Law and report to the National Assembly at the 8th session of the 15th National Assembly.
The Electricity Law (amended) includes 6 major policies.
Based on identifying the political foundations and summarizing the existing problems, obstacles and difficulties in implementing the Electricity Law in the recent past, the Government has submitted to the National Assembly a proposal to develop the Electricity Law (amended) with 6 major policies including:
(1) Planning and investing in power development to ensure energy security for the country;
1(2) Development of renewable energy and new energy;
(3) Completing regulations on conditions for electricity operations and the granting and revocation of electricity operation licenses;
(4) Manage electricity trading activities in the direction of promoting a transparent, fair, and efficient competitive electricity market and electricity prices according to market mechanisms;
(5) Manage and operate the power system, focusing on encouraging economical use of electricity, strengthening the implementation of solutions to manage electricity demand and adjust electricity load;
(6) Safe use of electricity after the meter and ensuring safety of dams and hydroelectric reservoirs during the construction and operation of hydroelectric projects.
The Draft Electricity Law (amended) includes 9 chapters with 130 articles, closely following the 6 policies mentioned above and does not add any new policies.
The Draft Law inherits and mainly amends 62 articles on general regulations, granting of electricity operation licenses, electricity market, electricity purchase and sale, electricity prices, rights and obligations of electricity units and electricity customers, protection of electricity works and electrical safety, removes 4 articles (propaganda, dissemination and education of law; application dossier for granting, amending and supplementing electricity operation licenses; rights and obligations of specialized electricity consulting units; electricity inspection), and merges 4 articles into other articles (on the content of development policies, investment, electricity saving and electricity prices).
At the same time, 68 articles on power development planning, bidding policies for investors in power source projects, policies on handling emergency power sources, policies on development and operation of gas-fired thermal power plant projects, power source projects invested under the public-private partnership method applying build-operate-transfer contracts, policies on renewable energy (solar power, offshore wind power), new energy (such as hydrogen), direct electricity trading mechanism, fully implementing all levels of the competitive electricity market, moving towards eliminating cross-subsidy of electricity prices between economic sectors, electricity trading prices based on time of day, multi-component electricity prices, etc.
The increase in Articles and Clauses in the draft Law are mainly and essentially new regulations to pave the way for the strong development of the country's renewable energy potential; develop a competitive electricity market according to market mechanisms, with State management; supplement regulations on investment in the construction of emergency electricity projects to ensure security of electricity supply and strict sanctions for slow-progressing electricity projects.
During the process of drafting the law, the Ministry of Industry and Trade has developed the content of the Draft to ensure compatibility with international treaties/commitments to which Vietnam is a member and the principles of ensuring equality between men and women and non-discrimination based on gender, concretizing and ensuring human rights in the spirit of the 2013 Constitution and the Law on Gender Equality.
This draft Law does not contain any content contrary to the Constitution. The proposed contents are public and transparent. There are no policies contrary to the Party's guidelines and regulations and the State's laws. There are no group or local interests.
The draft Law is built in the direction of clearly defining the responsibilities of state management agencies on electricity (central and local) to improve the effectiveness of state management.
Main contents of the Draft Law on Electricity (amended)
- Chapter I. General provisions includes 8 articles with main amendments and supplements on:
+ Regarding the scope of regulation: regulations on electricity development planning and investment in construction of electricity projects; development of renewable energy and new energy electricity; electricity operation license; competitive electricity market, electricity price, 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.
+ Regarding applicable subjects: agencies, organizations, individuals performing electricity activities, using electricity or having other activities related to electricity activities in Vietnam.
+ Add 01 article regulating the application of law between the Electricity Law and other relevant Laws in accordance with the specific nature of the Electricity Law.
+ Add some explanations of terms related to electricity activities such as types of electricity prices, power plants...
+ On State policy on electricity development:
(i) Supplementing regulations towards the goals of environmental protection, climate change response, energy transition and Vietnam's commitments to reduce net emissions to zero in the new period.
(ii) Fully institutionalize policies related to electricity prices, apply appropriate electricity price mechanisms to groups of electricity customers with high electricity consumption and high emissions, tourist accommodation establishments, customers producing industrial products; electric charging stations serving green vehicles in accordance with the socio-economic situation of each period.
(iii) Policy on electricity development to serve rural areas, ethnic minorities, mountainous areas, border areas, islands and areas with particularly difficult socio-economic conditions.
(iv) General principles in nuclear power development to contribute to ensuring electricity supply and energy security.
+ Amend and supplement prohibited acts in electricity activities and electricity use to suit the new situation.
- Chapter II. Power development planning and power project investment includes 4 sections with 22 articles as follows:
+ Section 1. Power development planning, source development plan, provincial power grid and plan for implementing the planning, including 9 articles;
+ Section 2. Investment in construction of power projects and works, including 8 articles;
+ Section 3. Selection of investors for power projects, including 3 articles;
+ Section 4. Power plant projects invested under the PPP method applying BOT contract type, including 2 articles.
The main content of the amendment and supplement is on the specific requirements of the National Power Development Plan and the Power Supply Network Development Plan in the Provincial Plan to clarify the subjects of planning management according to decentralization (national, provincial); supplement the bidding mechanism for selecting power source investors, monitoring progress and the mechanism for handling slow-progressing power source projects to manage the progress of power projects; regulate the investment and construction of emergency power works to ensure power supply security; supplement regulations on project contracts for power source projects invested under the PPP method applying the BOT contract type.
- Chapter III. Development of renewable energy and new energy includes 2 sections with 16 articles as follows:
+ Section 1. Regulations on renewable energy and new energy electricity, including 7 articles;
+ Section 2. Regulations on offshore wind power development, including 9 articles.
This chapter is newly added to institutionalize the Party's policies and guidelines on developing renewable energy, new energy, especially self-produced and self-consumed electricity and offshore wind power.
- Chapter IV. Electricity operation license includes 13 articles specifically regulating the granting and revocation of electricity operation licenses in electricity generation, electricity transmission, electricity distribution, electricity wholesale, and electricity retail according to decentralization at the central and local levels, in which, 06 articles are added on the conditions for granting electricity operation licenses for the fields and rights and obligations of the licensed unit.
- Chapter V. Electricity trading activities includes 3 sections with 29 articles as follows:
+ Section 1. Competitive electricity market includes 12 articles;
+ Section 2. Electricity purchase and sale contract and electricity supply service includes 14 articles;
+ Section 3. Electricity prices and prices of electricity services include 3 articles.
The main additional contents are: (i) Electricity futures contracts; (ii) Direct electricity trading between large electricity users and power generation units; (iii) Rights and obligations of participants in the competitive electricity market; the main revised contents are electricity prices and prices of electricity services according to competitive electricity market levels in accordance with policies and instructions on electricity prices, mechanisms for adjusting electricity prices in the competitive electricity market, and principles for moving towards eliminating "cross-subsidy" in electricity prices.
- Chapter VI. Operation and dispatching of the national power system includes 13 articles. The main contents of amendments and supplements are about operation and dispatching of the national power system, connection of the power grid with foreign countries and management of electricity demand.
- Chapter VII. Protection of power works and safety in the electricity sector includes 3 sections with 22 articles as follows:
+ Section 1. Protection of power works includes 8 articles;
+ Section 2. Electrical safety includes 08 articles;
+ Section 3. Safety of hydroelectric works includes 6 articles.
The main contents of the amendment and supplement are on the Protection of safety of power source works, Technical safety inspection of electrical equipment and tools, General requirements on electrical safety and 01 new section (06 Articles) on safety according to the characteristics of the hydropower sector that are not currently regulated by the Law on Irrigation and the Law on Water Resources.
- Chapter VIII. State management responsibilities for electricity include 4 articles, regulating the responsibilities and contents of state management of electricity according to the principle of clear decentralization, specifying the responsibilities of the Government, the Ministry of Industry and Trade, ministries, branches, and People's Committees at all levels in state management of electricity.
- Chapter IX. Implementation provisions include 03 articles, of which 01 additional transitional provision is added to ensure uniform application of the law, with no legal gaps when this Law comes into effect and the current Electricity Law expires.
PV
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