Specifications on reactive power capacity purchase

a. Customers required to purchase reactive power capacity

Electricity purchasers having their own substations or those without their own substations but having their registered maximum utilization capacity of 40 kW or higher as in their electricity purchase contracts and having power factor cosφ < 0.9 are required to purchase reactive power capacity.

If according to his/her electricity purchase contract, the electricity purchaser has the maximum utilization capacity registered as below 40 kW but in fact, in three consecutive metering periods, that purchaser has actually his/her maximum utilization capacity of 40 kW or more, the purchaser is required to buy reactive power capacity beginning from the metering period after the above-mentioned three consecutive metering periods. The electricity purchaser is responsible for the re-negotiation of the electricity purchase contract with the electricity supplier in accordance with Article 15 item 3 of the Decree No. 137/2013/ND-CP.

If the electricity supplier does not ensure electricity quality as stipulated in Decree No. 137/2013/ND-CP of October 21, 2013, detailing a number of articles of the Electricity Law and the Law amending and supplementing a number of articles of the Electricity Law, then the electricity purchaser does not have to buy reactive power capacity when having a power factor cosφ < 0.9.

b. Method of calculation of reactive power capacity charges

T_q = T_a * k%

In which:

T_q: Charge for reactive power capacity (VAT not included);

T_a: Charge for active electricity (VAT not included);

k : Coefficient of cost compensation as a result of the electricity purchaser’s electricity consumption exceeding the regulated reactive capacity (%).

 Coefficient k is calculated as in the following table: