Vietnam: Formula for a single instance of power cut and resupply from October 30, 2020

Specifically, according to Article 5 of Circular No. 23/2020/TT-BCT of the Ministry of Industry and Trade of Vietnam, the formula for a single instance of power cut and resupply is as follows:

T = M x k x n

In which:

- T: Amount of money permitted for collection for power cut or resupply;

- M: Expenditure on local power cut and resupply specified under Article 6 of this Circular;

- k: Adjustable distance coefficient under Article 7 of this Circular;

- n: Adjustable region coefficient under Article 8 of this Circular.

Note: Expenditure on a single instance of power cut or resupply in this Article does not include VAT.

Moreover, base expenditure on power cut and resupply (M) refers to expenditure on a single instance of power cut or resupply in plains with distance from offices of entities that cut or resupply power of areas subject to the cut or resupply no more than 5 km and shall be determined by following formula:

M = Labor cost + Transportation cost

In which:

- Labor cost shall be calculated based on: Statutory pay rate of Vietnam Electricity for 1 working day, salary multiplier for worker level, allowance multiplier for mobile jobs and unit price for 1 instance of power cut based on different levels of voltage;

- Transportation cost: Refers to transportation cost for a single instance of power cut or resupply in plains with distance from offices of entities that cut or resupply power of areas subject to the cut or resupply no more than 5 km.

Note: Base expenditure on power cut and resupply (M) is regulated as follow:

- In areas with voltage no more than 0.38 kV: M = VND 98,000;

- In areas with voltage ranging from exceeding 0.38 kV to 35 kV: M = VND 231,000;

- In areas with voltage exceeding 35 kV: M = VND 339,000.

View more details at Circular No. 23/2020/TT-BCT of the Ministry of Industry and Trade of Vietnam, effective from October 30, 2020.

Le Vy

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