On October 16, 2018, the Ministry of Industry and Trade (MIT) issued Circular No. 36/2018 / TT-BTC regulating the procedures for granting and withdrawing electricity activity licenses. This Circular takes effect on 6, December 2018.
Accordingly, Circular No. 36/2018 / TT-BTC regulates the procedures for granting and withdrawing electricity activity licenses and term of electricity activity licenses in the fields of: electricity; Power generation; Electricity transmission; Power distribution; Wholesale electricity; Retail electricity.
In addition, this Circular also provides for exemptions for electricity activity licenses, including (i) electricity generation for self-use, not selling electricity to other organizations or individuals; (ii) Generating electricity with an installed capacity of less than 1 MW (01 MWp for solar power plants installed at 01 location and 01 connection point) for selling electricity to other organizations and individuals; (iii) Trading electricity in rural, mountainous and island areas purchasing electricity with a capacity of less than 50 kVA from the distribution grid to sell electricity directly to customers in rural, mountainous and coastal areas island; (iv) regulating the national electricity system and administering the electricity market transactions.
In addition, the term of the electrical activity license is also specified as follows:
– 05 years for specialized electricity consultancy;
– For electricity generation:
+ 20 years for large power plants with special social-economic, defense and security significance according to the list approved by the Prime Minister;
+ 10 years for power plants not on the list of big power plants with special social-economic, defense and security significance, which are approved by the Prime Minister;
– 20 years for power transmission;
– 10 years for electricity distribution and wholesale and retail.
In case of extension of the electrical activity permit for a shorter period of time, the license shall be granted within the prescribed time limit; Basing themselves on the actual conditions of the electricity work items, the electricity activity permit-granting agencies may grant electricity activity licenses with a shorter duration than the prescribed time limit.
It can be seen that the clarification of the order and procedures for the granting and withdrawal of electricity activity licenses and the validity of the operating license will contribute to the improvement of the transparency of the process. To apply for a license and at the same time to have grounds for management activities for the duration of operation of organizations when conducting business in the electricity domain.