DIRECTIVE

ON STRENGTHENING THE PUBLICITY AND TRANSPARENCY TOWARDS ELECTRICITY AND GASOLINE TRADING

Electricity and gasoline are the essential commodities and have significant impact on the production and people's life. In recent years, the price of electricity and gasoline is subject to the State adjustment of electricity price and gasoline price has gradually been made openly and transparently with the monitoring of the state management agencies and the consumers.

To follow the guidance of the Prime Minister and to further strengthen the publicity and transparency towards the electricity and gasoline trading, the Minister of Industry and Trade gives this directive as follows:

1. The Electricity Regulatory Authority and the Vietnam Electricity and the relevant units should promptly implement the publicity and transparency to the business of electricity, especially the publicity of price and price formation factors, particularly:

a. Strengthening the information and propagation about the mechanisms and policies on the electricity price, the operation mechanisms of electricity price and electricity production and trading, including:

- Electricity Law 2004 and the Law amending and adding some articles of the Electricity Law 2012;

- Price Law 2012;

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- Decision No. 268/QD-TTg dated 23/2/2011 of the Prime Minister on electricity retailing price tariff;

- Decision No. 69/2013/QD-TTg dated 19/11/2013 of the Prime Minister providing for the mechanisms of adjusting the average electricity selling price.

- Decision No. 2165/QD-TTg dated 11/11/2013 of the Prime Minister on the price frame of the average electricity selling price from 2013 to 2015;

- Decision No. 28/2014/QD-TTg dated 07/04/2014 of the Prime Minister providing for the structure of electricity retailing price tariff;

- Circular No. 31/2011/TT-BCT dated 19/8/2011 of the Ministry of Industry and Trade providing for the adjustment of electricity selling price based on the basic input parameters.

- Circular No. 03/2013/TT-BCT dated 08/02/2013 of the Ministry of Industry and Trade providing for the operation of competitive electricity generation market superseding Circular No. 18/2010/TT-BCT and Circular No. 45/2011/TT-BCT;

- Circular No. 19/2013/TT-BCT dated 31/7/2013 of the Ministry of Industry and Trade providing for the electricity selling price and guiding the implementation;

- Circular No. 12/2014/TT-BCT dated 31/3/2014 of the Ministry of Industry and Trade providing for the calculation of average electricity selling price;

- Other mechanisms and policies pertaining to the operation of electricity selling price;

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- Electricity selling price in the market;

- Price of transmission, distribution and auxiliary services;

- The average power output, load demand, total demand for electricity system output; supply and supply reserve.

c. Implementing the publicity and transparency of formation factors of electricity selling price and plan for adjustment of electricity selling price.

- Plan and structure of electricity production and supply;

- Cost norms as a basis for calculating the cost of electricity;

- Fluctuation of input parameters and the basic average electricity price formation factors (including the fuel price, foreign currency rate, structure of generated electricity output, price of generated electricity in the electricity market…);

- The costs of electricity production and trading not included in the current electricity selling price are permitted to recover (if any), including the cost of social benefits such as improving rural low voltage grid and price compensation for remote areas, islands ...;

- Aggregation of result of calculation of increase or decrease of cost of electricity production and trading in the calculation period of the input parameters and the electricity price formation factors;

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- Basic average electricity selling price;

- Price frame of average electricity selling price;

- Recommended rate for adjustment of average electricity selling price (if any);

- Current structure of electricity retailing price tariff;

- Electricity retailing price tariff and principles of electricity retailing price tariff formulation;

- Calculation of impact of adjustment of electricity selling price on the components using electricity.

d) Implementing the transparency of result of electricity production and trading:

- Financial finalization report (audited);

- Enterprise’s result of production and trading;

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- Report on corporate finance monitoring;

- Report on corporate assessment and classification.

dd) Developing the mechanism and plan for separation of business functions with the public activities in electricity business.

e. Strengthening the propagation, warning and reminding the users about electricity safety; propagating and guiding the economical and effective use of electricity.

2. Domestic Market Department: Vietnam National Petroleum Group (Petrolimex) and the relevant units shall implement the publicity and transparency to the gasoline business, especially the publicity of price, price formation factors, appropriation, management and use of price stability fund, particularly:

a. Strengthened propagation of mechanisms and policies on gasoline price; operation mechanism of gasoline price and gasoline production and trading, including:

- Price Law 2012;

- Decree No. 84/2009/ND-CP dated 15/10/2009 of the Government on gasoline business and the Decree superseding the Decree No. 84/2009/ND-CP;

- Circular No. 36/2009/TT-BCT dated 14/12/2009 of the Ministry of Industry and Trade issuing the regulation on gasoline business agent;

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- Other mechanisms and policies pertaining to the operation of gasoline price

b. Announcement of information about gasoline market:

- Gasoline price around the world;

- List of key gasoline trading enterprises;

- Market share of gasoline trading;

- Retailing price of gasoline of key gasoline enterprises

c. Implementation of publicity and transparency of gasoline price and the relevant information:

- Prescribed basic calculation price;

- Structure for formation of basic price: The costs and norm profits, taxes, fees (import tax, excise tax, environmental protection tax and other taxes and fees);

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d. Implementation of publication and transparency of result of gasoline business:

- Financial finalization report (audited);

- Enterprise’s result of production and trading (separating the gasoline business and other production and trading activities);

- Report on corporate finance monitoring;

- Report on corporate assessment and classification.

3. The Vietnam Electricity and the Vietnam National Petroleum Group (Petrolimex) and the relevant units must implement the publicity of corporate financial information in accordance with the provisions in Decree No. 61/2013/ND-CP dated 25/6/2013 of the Government on issuing the Regulation on financial monitoring and assessment of performance and financial publicity towards the state-owned enterprises and enterprises with state capital, including:

- Financial reality, effective use and preservation of state capital in enterprises;

- Result of production and trading of enterprises;

- Appropriation and use of enterprise’s funds;

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- Employee’s incomes and average incomes;

- Reality of corporate governance;

- Reality of salary, remuneration, bonus and average monthly income of the preceding year of each enterprise’s manager’

4. Implementation:

4.1. Electricity Regulatory Authority:

a. Coordinates with the E-Commerce and Information Technology Agency, Ministerial Office and Vietnam Electricity to make public announcement on the website of the Ministry of Industry and Trade:

- Regularly announces documents pertaining to the mechanisms and policies on electricity price and mechanisms of electricity price operation and production and trading;

- Publicly announces the electricity retailing price tariff;

- On the monthly basis, announces the information on electricity price according to the market mechanism.

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- Annually, based on the result of annual inspection of the Ministry of Industry and Trade and the Ministry of Finance, publicizes the cost of electricity production and trading of the financial year in which the cost of electricity production and trading of the phases of electricity generation, transmission, distribution - retailing, operation - management and auxiliary services; the expenses not yet included in the cost of electricity production and trading;

b. Announces the information about the electricity price and mechanisms of electricity price and electricity production and trading at the regular press conferences of the Ministry of Industry and Trade or at the unexpected press conferences on the plan for adjustment of electricity selling price.

c. Reviews, summarizes and develops the regulations on economic-technical norms for the electricity production and trading and submit them to the Ministry of Industry and Trade for promulgation in quarter 4/2014;

d. Urgently studies and develops the mechanisms and plans for separating the business functions  with public activities in electricity production and trading.

4.2. The Domestic Market Department:

a. Coordinates with the E-Commerce and Information Technology Agency, Ministerial Office, Vietnam National Petroleum Group (Petrolimex) and the key gasoline trading enterprises to make public announcement on the website of the Ministry of Industry and Trade:

- Regularly announces documents pertaining to the mechanisms and policies on gasoline price and the mechanisms of operation of gasoline price and production and trading;

- Publicly announces the gasoline retailing price of the key gasoline trading enterprises;

- Daily announces the price of gasoline around the world and the prescribed basic calculation price;

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- On a quarterly basis, announces the information on gasoline market including the list of key gasoline trading enterprises and the market share of gasoline trading, rate of appropriation, balance, management and use of price stability fund.

b. Announces information about the price, operation mechanism of price and gasoline production and trading at the regular press conferences of the Ministry of Industry and Trade or the unexpected press conferences on the plan for adjustment of electricity selling price.

4.3. The Finance Department shall coordinate with the E-Commerce and Information Technology Agency, the Ministerial Office, the Vietnam Electricity and the Vietnam National Petroleum Group (Petrolimex) to make public announcement on the website of the Ministry of Industry and Trade:

a. Every 06 months, makes announcement of:

- Result of production and trading of the Vietnam Electricity and the Vietnam National Petroleum Group (Petrolimex);

- Report on corporate finance monitoring of the Vietnam Electricity and the Vietnam National Petroleum Group (Petrolimex);

b. Annually, announces the financial finalization report (audited) of the Vietnam Electricity and the Vietnam National Petroleum Group (Petrolimex);

4.4. The Personnel Department shall coordinate with the E-Commerce and Information Technology Agency, the Ministerial Office, the Vietnam Electricity and the Vietnam National Petroleum Group (Petrolimex) to make the annual announcement of Report on assessment and classification of enterprises, Report on incomes and average incomes of employees and Report on reality of salary, remuneration, bonus and monthly average income of each management official of the Vietnam Electricity and the Vietnam National Petroleum Group (Petrolimex) on the website of the Ministry of Industry and Trade.

4.5. The General Department of Energy shall coordinate with the relevant units to propagate the electricity safety and economical and effective use of electricity.

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4.7. Vietnam Electricity:

a. Coordinates with the Electricity Regulatory Authority in making public the electricity trading activities, especially the price, price formation factors on the website of the Ministry of Industry and Trade.

b. Makes public the electricity trading activities proactively, especially the price and the price formation factors on the website of its website.

c. Annually, within 180 days after the end of financial year, makes public the audited financial statement on its website.

d. Makes public the corporate financial information in accordance with the provisions of Decree No. 61/2013/ND-CP dated 25/6/2013 of the Government.

e. Studies and implements the communication program and make monthly propagation on Vietnam Television (VTV) and the mass media about the contents:

- The legal normative documents on mechanisms and policies on electricity price, the operation mechanisms of electricity price and electricity production and trading;

- Warning and reminding the users about electricity safety;

- Propagating and guiding the economical and effective use of electricity

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e. Studying and implementing other forms of propagation about safe use of electricity, economical and effective use of electricity and publicity of electricity price according to the market mechanisms.

4.8. National Petroleum Group (Petrolimex):

a. Coordinates with the Domestic Market Department in publicizing the gasoline trading activities, especially publicizing the price and price formation factors, appropriation, management and use of price stability fund on the website of Ministry of Industry and Trade.

b. Proactively implements the publicity of gasoline trading activities, especially the publicity of price and price formation factors, appropriation, management and use of price stability fund on the website of the Group.

c. Annually, within 180 days after the end of financial year, implements the publicity of audited financial statement on the website of the Group.

d. Implements the publicity of corporate financial information in accordance with the provisions in Decree No. 61/2013/ND-CP dated 25/6/2013 of the Government.

dd) Studies and implements the communication programs and make monthly propagation on Vietnam Television (VTV) and on the mass media on the following contents:

- The legal normative documents on mechanisms and policies on gasoline price, the operation mechanisms of gasoline price and gasoline production and trading;

- Propagation and instructions on economical and effective use of energy;

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- Publicity of appropriation, balance, management and use of price stability Fund.

e. Studies and implements other forms of propagation (such as the study of placement of electronic information panel at public places) to propagate the economical and effective use of gasoline; daily gasoline price and basic gasoline price…

4.7. Other relevant units and the key gasoline trading enterprises must coordinate to implement the publicity and transparency towards the electricity and gasoline trading activities.

5. Form of publicity and transparency:

- Making public announcement on the website of the Ministry of Industry and Trade:

http://www.moit.gov.vn

- Making public announcement on the website of enterprise;

- Making announcement on the mass media and via the regular or unexpected press conference of the Ministry of Industry and Trade or of enterprises.

- The enterprises shall proactively implement other forms of information announcement in line with the contents of information announcement and with their capacity.

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MINISTER




Vu Huy Hoang

Chỉ thị 11/CT-BCT năm 2014 tăng cường công khai, minh bạch đối với hoạt động kinh doanh điện, xăng dầu do Bộ Công thương ban hành