Chương 4 Nghị định 45/2001/NĐ-CP: Mua bán và sử dụng điện

Chapter IV

ELECTRICITY TRADING AND USE

Section 1. ELECTRICITY TRADING CONTRACTS

Article 26.-

1. The electricity trading must be carried out according to contracts. The electricity trading contracts are written agreements on the rights, obligations and relationships between the electricity seller and buyer. There are two types of electricity trading contract:

a) The civil contract, applicable to the electricity trading for daily-life purpose, to be performed according to the provisions of the Civil Code. The form of contract is set by the Ministry of Industry;

b) The economic contract, applicable to the electricity trading for production, business and other purposes, to be performed according to the provisions of the Ordinance on Economic Contracts.

2. The signatories to a contract shall have the responsibility to fully observe the provisions in the contract. Under practical conditions where the electricity supply fails to meet the demand of the electricity buyers, the electricity sellers must notify the former of the electricity system�s supply capability so as to reach agreement before signing or adjusting the contracts to suit the situation. In case of failure to meet the demands, the parties may request the provincial/municipal Services of Industry to solve the matter.

Article 27.-

1. Conditions for signing civil contracts on electricity trading:

a) The electricity buyer shall file a written request for electricity purchase together with the valid copy of one of the following papers: The permanent residence book or the temporary residence certificate, the house ownership certificate, house-renting contract;

b) The electricity buyer must have full capacity for civil acts as provided for by law; for persons with their civil act capacity restricted or lost, the authorization must be made under the Civil Code;

c) The daily-life consumer electricity grids must ensure the technical standards as provided for by law;

d) The measuring and counting system must be installed strictly according to designs, inspected according to the State standards and lead-sealed off according to regulations;

e) The electricity buyer must pay the costs of installation of branch wire lines from the electricity seller’s power grids to the electricity buyer’s house or property management area.

2. When the conditions prescribed in Clause 1 of this Article are fully met, within 7 days the parties must sign contracts and the sellers must switch on the electricity.

When receiving the written requests from the buyers but the sellers have no conditions to sell electricity, within 5 days, the sellers shall have to reply the buyers in writing.

Article 28.-

1. Conditions for signing economic contracts on electricity trading:

a) The buyers and the sellers must be legal persons or individuals that have business registration papers as provided for by law;

b) The electricity buyers being organizations and/or individuals that use electricity must have the written request, clearly stating the electricity use purposes and make lists of capacities of equipment consuming electricity. For organizations or individuals that use electricity with the use capacity of between 80 kW or more or have the transformers of 100 kVA or more must register the additional charge diagram and the technical and technological characteristics of the production chain;

c) Electricity projects must be constructed and tested before acceptance strictly according to standards and designs already approved by competent bodies;

d) The measuring system must be installed strictly according to designs, lead-sealed, inspected and given the standard certificates granted by State management bodies in charge of measuring standards and quality or the authorized organizations.

2. The time for electricity supply shall be agreed upon by both parties in the contracts.

Article 29.- The electricity buyers that have independent electricity generation sources may sell electricity to the national electricity system when so requested by the latter. The prices of electricity sold to the national electricity system shall be agreed upon by the two parties. Where the two parties fail to reach any agreement, each party may request a competent State body to settle it.

Article 30.- The electricity export and import shall be carried out under the agreements signed or acceded to by the Vietnamese Government with the Governments of concerned countries.

Section 2. ELECTRICITY QUALITY STANDARDS

Article 31.- The sellers must ensure the quality of electricity supplied to the buyers according to the following regulations:

1. Regarding the voltage:

Under normal conditions, the voltage may fluctuate within ±5% compared to the designated voltage and determined at the secondary side of the transformer supplying electricity to the buyer or at other positions agreed upon by the two parties in the contract when the buyer reaches the capacity coefficient (cos φ) ≥0.85 and comply with the additional charge diagram agreed upon in the contract.

In cases where the electricity grids are unstable, the voltage may fluctuate between + 5% and - 10%.

2. Regarding the frequency: Under normal conditions, the electric system frequency may fluctuate within the limit of ±0.2 Hz as compared to the prescribed standard of 50Hz. In cases where the electric systems are unstable, the permitted frequency fluctuation shall be ±0.5Hz.

3. Where the buyer needs electricity with quality higher than the standards prescribed in Clauses 1 and 2 of this Article, the parties must reach agreement thereon in the contract.

Article 32.-

1. Under the conditions where the electricity grids meet the prescribed quality, the buyer of electricity for production, business or service activities with the use capacity of 80 kW upward or the transformer of 100 KVA upward, the cos j of ≥ 0.85 must be ensured at the places where electricity meters are installed.

2. Where the cosφ is <0.85, the electricity buyer must apply the following measures:

a) Installing the resistance capacity offsetting equipment to raise cosφ to 0.85 or higher;

b) Buying more resitance capacity on the seller’s electricity system.

3. Where the electricity buyer can transmit the resistance capacity onto grids, the two parties may reach agreement on such purchase and sale in the contract. The Ministry of Industry and the Government Pricing Committee shall guide the purchase and sale of resistance capacity prescribed in Clauses 2 and 3 of this Article.

Section 3. ELECTRICITY MEASUREMENT AND COUNTING

Article 33.-

1. The electricity measurement and counting shall be effected with the standard electricity measuring and counting equipment (electricity meters, current adaptor, voltage transformer) which are lead sealed by competent expertising organizations.

2. Only competent or authorized organizations defined by the General Department of Quality, Standardization and Measurement can expertise the electricity measuring and counting equipment.

Article 34.- Where the buyer of electricity for use for various purposes at different electricity prices, each price subject must have a separate measuring and counting meter. Where such meter cannot be installed and a common meter must be used, the two parties must reach agreement on ways of calculating the electricity percentage according to each type of price in the contract.

Article 35.-

1. The electricity sellers have the responsibility to install the already expertised electricity measuring and counting equipment to sell electricity to the buyers and take responsibility for such equipment’s standard compatibility and accuracy, except otherwise agreed upon by the two parties.

2. Organizations and individuals using electricity for production, business and/or service activities and having equipment that use three-phase electricity with the use capacity of 80 kW or more or transformer with capacity of 100 kVA or more must have effect meters and resistance meters installed.

3. Meters and measuring equipment, meter protection devices and accompanying safety equipment are the property of the electricity sellers; the labor costs and auxiliary materials for the installation thereof shall be borne by the electricity buyers.

4. The positions for installation of meters shall be agreed upon by the electricity buyers and sellers and must satisfy the requirements on safety, beauty and convenience for the inspection of meters’ numbers by both parties. If both parties fail to reach agreement on the meter positions, the electricity sellers shall request the provincial/municipal Industry Services to consider and decide the matter.

Article 36.-

1. When there is any doubt about the inaccuracy of meters, electricity buyers may request the electricity sellers to check it. Within 3 days at most after receiving the request from the electricity buyers, the electricity sellers shall have to inspect and fix it. The electricity sellers must pay all expenses for inspection and repair of meters.

2. If disagreeing with the results of inspection and repair by the electricity sellers, the electricity buyers may complain with the provincial/municipal Industry Services and request the latter to nominate an independent expertising organization to re-examine it. Depending on the expertise results:

a) If the meters are accurate, the electricity buyers shall have to pay the expertise costs;

b) If the meters are inaccurate (fast or slow), the electricity sellers must re-fix them and pay the expenses for expertise and repair of meters.

3. Pending the expertise results, the electricity buyers shall still have to pay the electricity charges on time according to the meters’ numbers. After the conclusions made by the expertising organization, the settlement of the difference of electricity charges shall comply with Article 40 of this Decree.

4. When changing meters, the buyers and the sellers must together sign the record confirming the meters’ numbers.

Article 37.-

1. The electricity sellers shall have the responsibility:

a) To organize the first inspection of meters, regular and irregular inspection and replacement in order to ensure that meters operate within the limit of permitted errors. In case of replacement of meters, to inform the buyers thereof;

b) For meters placed outside the electricity buyers property management areas, which are lost or damaged not due to the electricity buyers faults, the electricity sellers shall have to install other meters and re-supply electricity to the buyers within no more than 7 days as from the date of making records confirming that the meters are lost or damaged;

c) For organizations and individuals using electricity for daily life purpose, to record the meters numbers once a month, permitting to change the recording date 1 or 2 days earlier or later. If the recording date falls on a holiday or Tet festival, the numbers recording shall be made 1 to 2 days before or after such holiday or Tet festival;

d) For organizations and individuals using electricity for purposes other than the daily-life activities, the recording of meters’ numbers is stipulated as follows:

- For under 10,000 kWh/month, to record the meters numbers once a month.

- Between 10,000 and 50,000 kWh/month, to record the meters numbers twice a month.

- Over 50,000 kWh/month, to record the meters’ number thrice a month.

e) For organizations or individuals that use less than 15 kWh/ month, the recording of meter’s numbers may be made once every 3 months. In cases where an organization or individual use less than 15 kWh in 3 months, the exact numbers on the meter shall be recorded and the seller may collect the electricity charge at a fixed level equal to the value of 15 kWh according to the current electricity price index;

f) To inform the electricity buyers of the electricity volumes used in the month with bills inscribing the meters’ numbers and the full names of the meters’ number recorders. In case of change of the recording date, to inform the electricity buyers thereof;

g) To ensure the accuracy of the already recorded numbers on meters;

h) In case of detecting that an electricity buyer has committed act of fraudulence in using electricity by damaging or falsifying the numbers on meters, the electricity seller may make the record of such act of violation and request the competent State management body to settle the case.

2. The electricity buyers shall have the responsibility:

a) To promptly inform the electricity sellers of the loss, damage or inaccuracy of meters upon the detection or doubt thereof;

b) To protect the meters (including lead seals and connection diagrams) placed within their property management areas. In case of causing loss or damage to the meters, to pay the compensation therefor or pay the costs of repair or inspection;

c) Not to disconnect and/or remove meters at their own will. When wishing to do so, there must be the consent of the electricity sellers before removing the meters to other positions. The costs of removing meters shall be borne by the electricity buyers.

Section 4. ELECTRICITY PRICES AND ELECTRICITY CHARGE PAYMENT

Article 38.-

1. The electricity price index of the national electricity system shall be elaborated by the Ministry of Industry and submitted to the Prime Minister for approval after it is appraised by the Government Pricing Committee and concerned bodies.

2. Organizations and individuals that buy wholesale electricity from the national electricity system to re-sell it to other organizations and/or individuals must strictly adhere to the electricity price index approved by the Prime Minister.

3. The electricity selling prices of organizations and individuals conducting independent electricity activities shall be prescribed as follows:

a) The price of electricity sold to Vietnam Electricity Corporation for transmission into the national electricity system shall be agreed upon by the two parties in the contract. In special cases where the two parties fail to reach agreement thereon, it shall be proposed to the competent State management body for submission to the Prime Minister for decision;

b) Where electricity is sold directly to electricity users being organizations and/or individuals, it shall be agreed upon by the two parties in the contracts. In special cases where the two parties fail to reach agreement thereon, it shall be proposed to the competent State body for solution.

Article 39.-

1. The paid electricity volume shall be determined according to the indexes and technical parameters of electricity measuring and counting equipment. The way of determining the paid electricity volume must be clearly inscribed in the contract.

2. The price level for electricity charge payment shall comply with the provisions in Article 38 of this Decree.

3. The electricity charges shall be paid in Vietnamese currency. The payment mode and conditions shall be inscribed in the electricity trading contracts. Where the electricity charges are calculated in foreign currency(ies), such foreign currency(ies) shall be converted into Vietnamese currency at the average exchange rates on the inter-bank foreign currency market, announced on the first day of the month when the bill is made. The electricity trading in export processing zones, open economic zones shall be effected in the type of currency agreed upon by the buyer and the seller in the contracts.

4. The electricity charges shall be paid according to the time of recording the numbers on meters as provided for at Points c, d and e of Clause 1, Article 37 of this Decree.

5. Upon receiving the request for payment of electricity charge, if a buyer has not yet made the payment, the seller shall have to send the electricity charge payment notice to the buyer. Within 7 days after receiving the notice of the seller, the buyer shall have to make the payment. If past the above-said time limit the buyer still fails to make the payment:

a) For civil contracts: the seller may agree to let the buyer delay the payment if the latter has plausible reasons. If past the agreed time limit the buyer still fails to make the payment, the seller may suspend the electricity sale;

b) For economic contracts: when the seller has reached agreement with the buyer on the payment delay, the buyer shall have to pay the three-month commercial loan interest of Vietnam Bank for Industry and Commerce on the delayed payment amount counting from the 10th date. If past the agreed time limit the buyer still fails to make the payment, the seller may suspend the electricity sale.

6. For electricity in service of irrigation, which is used for watering and draining rice fields, vegetable gardens, industrial plants intercropped in areas cultivated with rice or subsidiary food crops, the payment time limit shall be agreed upon by the seller and the buyer, but must not exceed 120 days as from the date of receiving the electricity charge payment notice.

Article 40.- Where a meter is lost, operates inaccurately or stops working, the paid electricity volume shall be determined as follows:

1. If the meter runs fast as compared to the prescribed standards:

a) In cases where the fast-running duration cannot be determined, the electricity seller shall refund the overpaid electricity charge amounts, with the calculation time limit being four cycles of recording the numbers on the meters, including the current electricity-using cycle which has not yet reached the date of numbers recording;

b) In cases where the fast-running duration can be determined, the seller shall refund the electricity charge amount actually collected in excess from the buyer.

2. If a meter runs slow as compared to the prescribed standards:

a) In cases where the slow-running duration cannot be determined accurately, the electricity seller may additionally collect the electricity charge collected inadequately during the time limit of not more than two cycles of recording numbers on the meter, including the current electricity using cycle which has not yet reached the recording date;

b) In cases where the slow-running duration can be concretely determined with plausible reasons, the buyer shall have to pay the outstanding electricity charge amount to the seller.

3. If a meter stops working or is lost while the electricity buyer still uses the electricity, the paid electricity volume during the period of temporary supply of electricity without going through the meter shall be the daily average electricity volume of three preceding consecutive cycles of recording the numbers on the meter multiplied by the number of days of temporary supply of electricity.

4. In cases where the seller has installed the multi-price meter, during the time the multi-price meter is out of order without any replacement, the single-price meter shall be temporarily replaced and the electricity charge shall be calculated according to the normal hours.

Section 5. RIGHTS AND DUTIES OF THE ELECTRICITY SELLERS

Article 41.- The electricity sellers shall have the right:

1. To refuse signing the electricity-selling contracts when the buyers fail to meet all conditions prescribed in Articles 27 and 28 of this Decree.

2. To regularly and irregularly inspect the observance of terms in the electricity trading contracts, make record of contractual breaches, if any, by the buyers.

3. To switch off electricity first, then notify such to the buyers in case of danger of causing serious incidents or unsafety to people and/or equipment.

4. To detect and record acts of administrative violation in electricity activities and use by organizations and individuals and promptly report them to competent bodies for consideration and handling according to law provisions.

5. To partly or fully stop selling electricity when buyers commit violations in one of the following cases:

a) Using equipment which fail to satisfy the electricity safety standards as provided for, thus threatening to cause serious incidents to electricity grids, unsafety to people and equipment;

b) Breaching the provisions in Clauses 5 and 6 of Article 39 of this Decree;

c) Obstructing the inspection by electricity sellers in the performance of the electricity trading contracts;

d) Committing acts of fraudulence in using electricity;

e) Using electricity, thus causing danger to people, animals and property of the State and people, adversely affecting the environment;

f) Deliberately falsifying the operation of measuring and counting system;

g) Other cases at the request of the competent State bodies.

6. The electricity sale shall resume only after the buyers fully execute the competent authorities’ decisions on handling of violations prescribed in Clause 5 of this Article and pay charges for electricity switch-on and switch off under regulations of the Ministry of Industry.

7. The Ministry of Industry shall prescribe the order and procedures for stopping the electricity supply.

Article 42.- The electricity sellers shall have the duty:

1. To sell in adequate volume (capacity, electric energy), ensure stable quality (current, voltage) for the buyers according to the provisions in Article 31 of this Decree and the agreement in the contracts.

2. To make written notices and post up at electricity trading transaction places the relevant law provisions and the sellers stipulations, which the electricity buyers should know for joint implementation.

3. In case of electricity shut-off according to plans, to notify such to the electricity buyers at least 5 days before the time of electricity break in the following forms:

a) Sending written notices to organizations and individuals that use electricity for production activities and electricity users being organizations and individuals that have exclusive transformer stations;

b) Publishing announcements on the mass media for organizations and individuals using electricity for daily life.

4. To break off electricity strictly at the time already announced. In cases where the electricity buyers request the change of electricity-shut-off time, the buyers shall have to notify such to the sellers at least 48 hours before the time of electricity break. The electricity sellers shall have to consider and reasonably settle the request of the electricity buyers.

If the electricity shut-off cannot be delayed, the electricity sellers can shut-off the electricity according to plans but shall have to inform the buyers thereof at least 24 hours before the announced time of electricity shut-off.

Where the electricity seller agrees to change the time of or delay the electricity shut-off, the electricity buyers must be informed thereof 24 hours before the announced time of electricity shut-off, except for force majeure cases.

5. When electricity grid is hit by an incident, thus causing power failure or urgent electricity shut-off to handle dangerous circumstance, important organizations and individuals that use electricity in great volume must be promptly notified of such as of well as the expected time of electricity re-supply.

6. To handle the incident within 2 hours as from the time the electricity buyers report on power failure; where the incident cannot be overcome within the above-said time limit, the electricity sellers shall have to promptly inform the electricity buyers thereof.

7. To compensate the buyers for the damage caused by the sellers according to regulations and agreement in the contracts, except for force majeure cases.

8. To effect the signing of contracts and electricity sale as provided for in Article 27 and 28 of this Decree.

9. To reach agreement with owners when using the electricity projects of the buyers to supply electricity to other electricity users being organizations and individuals.

10. To submit to the examination and inspection by competent State bodies as provided for by law.

11. To fulfill other obligations as prescribed by law.

Section 6. RIGHTS AND DUTIES OF THE ELECTRICITY BUYERS

Article 43.- The electricity buyers shall have the rights:

1. To choose the electricity sellers.

2. To request the electricity sellers to sign electricity sale contracts with all conditions prescribed in Articles 27 and 28 of this Decree.

3. To request the electricity sellers to supply electricity in adequate volume, ensuring the electricity quality and supply time inscribed in the contracts.

4. To request the electricity sellers to immediately handle incidents of power failure or the danger of possible blackout, unsafety to people and property and adverse impacts on environment.

5. To request the electricity sellers to supply or recommend legal documents concerning the electricity purchase and sale.

6. To request the electricity sellers to compensate for damage caused by the seller as provided for in Clause 7, Article 42 of this Decree.

7. To coordinate with the electricity sellers in inspecting the observance of contractual terms. If the electricity sellers fail to strictly comply with the provisions in contracts, the electricity buyers shall request the sellers to confirm such in writing and together with the sellers work out remedial measures.

Article 44.-

1. The electricity buyers shall have the duties:

a) To register electricity use demands with the electricity sellers, sign contracts and fully comply with the provisions and agreements in the electricity trading contracts;

b) To immediately reduce the current capacity to the limited capacity according to the sellers� notices upon force majeure incidents to the electricity system;

c) To use electricity strictly according to technical process, in a safe and thrifty manner;

d) To immediately inform the electricity sellers of any damage or doubtful inaccuracy of measuring and counting equipment upon the detection thereof;

e) To send written notices to the electricity sellers 15 days in advance on the requests, if any, for changes in contractual terms for joint discussion about amendments to the contracts;

f) To notify the electricity sellers 15 days in advance of the requests for termination of electricity trading contracts. Within 5 days after receiving the electricity buyers’ notices, the electricity sellers and the buyers shall proceed with the liquidation of the contracts according to regulations;

g) To create favorable conditions for the electricity sellers to inspect the performance of electricity trading contracts, the realization of requests and proposals of competent State bodies as provided for by law;

h) To compensate the sellers for damage caused by their faults according to law provisions and the specific agreements in the electricity trading contracts;

i) To fulfill other obligations as prescribed by law.

2. Apart from the duties prescribed in Clause 1 of this Article, the electricity buyers being organizations and individuals using electricity must not sell electricity to other electricity-using organizations and individuals if not so agreed upon by the electricity sellers, except for special cases of satisfying unexpected demands or incidents, which must, however, be reported to the electricity sellers.

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