Decree No. 45/2001/ND-CP on electric power operation and use

In this decree, there are many new positive points suitable to electricity operation and use as follows:

* Diversification of investment forms; Apart from EVN (Electricity of Vietnam), organisations and inviduals who are Vietnamese or foreigners, if eligible, are allowed to make investments and develop power generation projects or use of power projects. In addition independent power generation systems can be connected to the national power grid if they have power purchase agreements (PPAs) with EVN.

* The electricity tariffs of entities who connect their power projects to the national power grid are stipulated by the Government as follows: if the company connected to the national power grid and sells electricity to EVN the electricity tariff is agreed by both parties of the PPA or if directly sells electricity to invidual or institutional electricity users, the tariff is agreed by the parties in the PPA. The ceiling electricity tariff for rural users is regulated by the Prime Minister of the Government. The Chairmen of People committees of provinces or cities directly under the Central Government will regulate concrete tariffs for each area.

* Supplying electricity to rural, mountainous and island areas, is implemented in the principles "diversification of investment and management of electricity supply the mean the state, people, central and local Governments will do together"

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