Chương V: Giải quyết tranh chấp hợp đồng mua bán điện

CIRCULAR

ON INSPECTION OF ELECTRICTY OPERATIONS AND USE, AND SETTLEMENT OF DISPUTES PERTAINING TO POWER PURCHASE AGREEMENT

Pursuant to Decree 96/2022/ND-CP dated November 29, 2022 of the Government on functions, tasks, powers, and organizational structure of the Ministry of Industry and Trade;

Pursuant to the Law on Electricity dated December 3, 2004; the Law on amendment to the Law on Electricity dated November 20, 2012;

Pursuant to Decree No. 137/2013/ND-CP dated October 21, 2013 of the Government elaborating the Law on Electricity and the Law on amendment to the Law on Electricity; Decree No. 08/2018/ND-CP dated January 15, 2018 of the Government on amendment to Decrees relating to conditions for business and investment within the field of management of Ministry of Industry and Trade; Decree No. 17/2020/ND-CP dated February 5, 2020 of the Government on amendment to Decrees relating to conditions for business and investment within the field of management of Ministry of Industry and Trade;

Pursuant to Decree No. 134/2013/ND-CP dated October 17, 2013 of the Government on administrative penalties in the field of electricity, safety of hydroelectric dam, thrifty and effective use of energy; Decree No. 17/2022/ND-CP dated January 31, 2022 of the Government on amendment to Decrees on administrative penalties in the field of chemical and industrial explosive materials; electricity, hydroelectricity dam safety, effective and efficient use of energy; commercial, production, sale of counterfeits, prohibited goods, and protection of consumer’s rights; petroleum-related operations and sale of oil and gas;

At request of the Director of Electricity Regulatory Authority of Vietnam,

The Minister of Industry and Trade promulgates Circular on inspection of electricity operations and use and settlement of disputes pertaining to power purchase agreement.

Chapter I

GENERAL PROVISIONS

Article 1. Scope

This Circular prescribes:

1. Standards, tasks, and powers of Electricity inspectors.

2. Inspection of electricity operations in fields such as: Counseling in the field of electricity, electricity generation, electricity transmission, electricity distribution, electricity wholesale, electricity retail; inspection of compliance with regulations on electricity use, safety assurance of electric utilities, and electrical grids.

3. Solutions for determining amount of electricity stolen, illegal profits generated by electricity theft in order to compensate for organizations and individuals that are stolen from, damages and methods for organizing implementation of penalties and remedial measures in regard to electricity theft.

4. Settlement of disputes pertaining to power purchase agreements.

Article 2. Regulated entities

1. Organizations and individuals engaging in electricity operations such as: Counseling in the field of electricity, generating electricity, transmitting electricity, distributing electricity, wholesaling electricity, and retailing electricity.

2. Organizations and individuals using electricity.

3. Electricity inspectors and individuals engaging in electricity inspection, electricity use, and safety assurance of electric utilities and electrical grids.

4. Competent individuals entitled to produce administrative offence notice in the field of electricity as stated under Article 33 of Decree No. 134/2013/ND-CP dated October 17, 2013 of the Government which is amended by Clause 38 Article 2 of Decree No. 17/2022/ND-CP dated January 31, 2022 of the Government.

5. Other agencies, organizations, and individuals.

Article 3. Definitions

In this Circular, the terms below are construed as follows:

1. “power purchase agreement” (hereinafter referred to as “PPA”) refers to any of the following agreements (excluding agreements between units engaging in electricity operations that engage in electricity generation market, competitive wholesale electricity market and PPAs for electricity produced by rooftop photovoltaic installation):

a) PPAs for domestic or non-domestic purposes signed between electricity users (including large electricity users) and electricity retailers for immediate use;

b) Electricity wholesale, retail agreements signed between electricity retailers and electricity wholesalers for selling to a third party (except for agreements between member entities of Vietnam Electricity or agreements between Vietnam Electricity and member entities).

2. “electricity inspector” refers to an individual affiliated to transmission system operator, distribution system operator, electricity wholesaler, or electricity retailer who has been trained and obtained Electricity inspector card in accordance with this Circular.

3. “transmission system operator” (hereinafter referred to as “TSO”) refers to an electricity unit licensed to transmit electricity.

4. “distribution system operator” (hereinafter referred to as “DSO”) refers to an electricity unit licensed to distribute electricity.

5. “electricity wholesaler” refers to an electricity unit licensed to engage in electricity wholesaling.

6. “electricity retailer” refers to an electricity unit licensed to engage in electricity retailing.

7. “illegal profits generated by electricity theft” refers to profits gained by the offender from the stolen amount of electricity (including all costs that arise due to the theft (if any)).

Chapter II

ELECTRICITY INSPECTOR

Article 4. Tasks and powers of Electricity inspector

Electricity inspectors shall exercise their tasks and powers within the field of operation of their units as follows

1. Tasks and powers of Electricity inspectors affiliated to TSOs, DSOs:

a) Inspect compliance with regulations pertaining to safety assurance of electric utilities and electrical grids;

b) Examine and promptly prevent electrical safety violations under Article 7 of the Law on Electricity;

c) Promptly inform entities managing electricity transmission grids, distribution grids upon discovering risk to human lives and safety of equipment;

d) Produce Inspection records using forms under this Circular after inspecting safety assurance of electric utilities and electrical grids, except for cases under Point dd of this Clause;

dd) Electricity inspectors shall not produce Inspection record if no violation is found but instead log inspection details and contents on management system of electricity units.

2. Tasks and powers of Electricity inspectors of electricity wholesalers, electricity retailers

a) Inspect execution of PPAs of electricity users;

b) Inspect electrical safety of electricity users;

c) Inspect the suspension of electricity use, reduction of electricity consumption of electricity users;

d) Inspect and promptly prevent prohibited acts in electricity use under Article 7 of the Law on Electricity;

dd) Request electricity users to suspend electricity use or reduce electricity consumption in case of risk to human lives and safety of equipment;

e) Request electricity users to provide necessary information and documents for the purpose of inspection;

g) Produce Inspection log of electricity use using forms under this Circular when inspecting details mentioned under Points a, b, c, and d of this Clause, except for cases under Point h of this Clause;

h) Electricity inspectors shall not produce Inspection log of electricity use using forms under this Circular if no violation is found but instead log inspection contents and results on management system of electricity units.

Article 5. Standards of Electricity inspectors

Electricity inspectors must:

1. Have intermediate level or higher in the field of electricity or be electrical engineering technical at level 5/7 or higher; and

2. Have spent at least 3 years managing transmission electrical grid, distribution electrical grid in regard to Electricity inspectors of TSOs, DSOs respectively; have spent at least 3 years working in electricity trading in regard to Electricity inspectors of electricity wholesalers, electricity retailers; and

3. Have received training regarding regulations on electricity operations, electricity use, and safety assurance of electric utilities and electrical grid, standards, procedures, regulations pertaining to electrical engineering, electrical safety, and passed exam; and

4. Be capable of researching, detecting, analyzing, consolidating, and proposing solutions depending on the type of inspection; and

5. Have sufficient health, moral virtues, sense of responsibility, honesty, transparency, and fairness; and

6. Have not been met with criminal prosecutions or have had their criminal records expunged; have not been met with administrative penalties in the field of electricity or have been considered to have not met with administrative penalties in the field of electricity in accordance with Article 7 of the Law on Administrative Penalties.

Article 6. Training, exam, Electricity inspector card issuance and revocation

1. TSOs, DSOs, electricity wholesalers, and electricity retailers are responsible for organizing or authorizing affiliated entities to organize training, exam, and issue Electricity inspector card for their employees depending on practical demands of the units.

2. Training and exam shall be developed by the units in accordance with Clause 3 Article 5 hereof. Interval between exams shall be decided by card issuing entities and does not exceed 5 years in all cases. Trainees must pass the exam in order to obtain Electricity inspector card (including new issue, re-issue when previous card is close to expiry or has expired).

3. Electricity inspector card shall only be issued (including issued anew and reissued) if trainees meet all standards under Article 5 hereof.

4. Cases where Electricity inspector card is reissued:

a) Previous Electricity inspector card is close to expiry date or has expired;

b) Changes to scope, details specified in the card take place;

c) Previously issued Electricity inspector card is missing, or damaged, or blurred.

5. Cases where Electricity inspector card is revoked:

a) Card holder no longer meets any of the standards under Article 5 hereof;

b) Scope or details of the card are no longer appropriate;

c) The card expires or is damaged or blurred;

d) Card holder is reassigned, reassigns, or is no longer exercising tasks of Electricity inspector;

6. Card issuing entities are responsible for revoking Electricity inspector card for all cases under Clause 5 of this Article.

Article 7. Card sample and valid period of Electricity inspector card

1. Electricity inspector card has dimension of 58 mm x 90 mm and sample prescribed under Appendix I attached hereto.

2. Electricity inspector card is yellow-orange in color.

3. Electricity inspector card remains valid for 5 years from the date of issue. If Electricity inspector card is reissued in accordance with Point b and Point c Clause 4 Article 6 hereof, the new card shall share the expiry date as the old card.

Article 8. Responsibilities of Electricity inspector

1. Electricity inspector is responsible for complying with the law, internal regulations or rules of electricity units in the performance of their tasks. Violation of the law or internal regulations or rules shall be met with penalties prescribed by the law or internal regulations or rules of electricity units.

2. Electricity inspect shall be legally responsible for their behaviors in the performance of inspection task.

3. Entities overseeing Electricity inspectors are responsible for compensating in case Electricity inspectors cause damage in the performance of their duty as per the law; entities overseeing Electricity inspectors which have compensated according to this Clause have the right to request the Electricity inspectors who have caused the damage to incur part of the damages as per the law.

Chapter III

INSPECTION OF ELECTRICITY OPERATIONS, ELECTRICITY USE, SAFETY ASSURANCE OF ELECTRIC UTILITIES AND ELECTRICAL GRIDS

Article 9. Inspection forms

Inspection of electricity operations and electricity use carried out by competent authorities specializing in the field of electricity and inspection of electricity use, safety assurance of electric utilities and electrical grids carried out by Electricity inspectors shall be carried out as follows:

1. A planned inspection means an inspection carried out according to plan approved on an annual basis by heads of inspecting entities or superior authority, including:

a) Inspection in which the inspected party is informed of the inspection;

b) Regular inspection of an electricity unit in which they inspect property (electric utilities, electrical grids, and other equipment) under their ownership or management or use.

2. An irregular inspection means an inspection in which the inspected party is not informed of the inspection and is carried out in any of the following cases:

a) Competent authority requests an inspection;

b) Organizations, individuals report signs of violations in electricity operations, electricity use, safety assurance of electric utilities and electrical grids;

c) Signs of violations of the law pertaining to electricity operations, electricity use, safety assurance of electric utilities and electrical grids are found.

Article 10. General regulations pertaining to inspection of competent authorities specializing in the field of electricity

1. Annual inspection plan

a) Annual inspection plan shall be developed on the basis of: Functions, tasks, and powers of entities; or direction, request of competent authorities; or guidelines, orientation regarding annual inspection of superior authorities; or social issues;

b) Annual inspection plans can be adjusted to meet practical operation of entities.

2. Establishment of inspectorates

a) Each inspectorate must have at least 3 members, including: chief of inspectorate, deputy chief of inspectorate (if deemed necessary), and other members, in which, chief inspectorate must have at least 3 years of experience working in the field of state administration of electricity. An inspection is conducted if at least 2/3 of inspectorate members are present;

b) Inspectorate members must not be under effective disciplinary actions or temporary suspension as per the law;

c) Public officials and public employees are not eligible for participating in inspectorates if their spouses, biological parents, sibling, or their in-laws hold managerial, directorial positions of inspected organizations or are electricity users which are to be inspected.

3. Duration of inspection

a) No more than 10 working days at each inspected entity. If cooperation with entities affiliated to subjects of inspection is required, inspection at each affiliated entities shall not exceed 5 working days and duration of cooperation shall not add to total inspection duration;

b) If subjects of inspection delay or refuse to cooperate with the inspectorate, the delay shall not add to total inspection duration;

c) If necessary, chief of inspectorate has the right to request person who issue decision on inspection to extend inspection duration. The extended duration shall not exceed the duration under Point a of this Clause.

4. Powers and responsibilities of inspectorate

a) Inspectorate has the power to:

- request inspected entities to cooperate or assign representative to cooperate with the inspectorate;

- request inspected entities to provide all information, documents, records, equipment, instruments, and present issues relating to the inspection;

b) Inspectorate has the responsibility to:

- organize the inspection in accordance with the decision on inspection;

- use information; use, secure documents, records, equipment, exhibits, instruments relating to inspection details as per the law; refrain from damaging or costing legal property of inspected entities;

- produce inspection report (which proposes penalties and damage mitigation solutions if necessary);

- Monitor and urge inspected entities to implement propositions of inspectorate under inspection log or inspection conclusion or guiding official dispatch. If inspected entities fail to fulfill the proposition, inspectorate must request persons issuing decision on inspection to order the inspected entities to produce presentation on implementation results of the proposition or inspection conclusion or organize inspection of proposition implementation (if necessary);

c) Chief of inspectorate has responsibility to:

- publicize and send decision on inspection to inspected entities; coordinate inspection in accordance with the decision on inspection; assign tasks to members of inspectorate; be responsible to persons issuing decision on inspection and the law for operation of inspectorate;

- produce report, request order from persons issuing decision on inspection regarding issues and details that extend beyond competence;

- consolidate reports of members of the inspectorate in order to produce then sign inspection log as soon as the inspection concludes in order to acknowledge inspection results; request persons issuing decision in inspection to promulgate inspection conclusion or official dispatch requesting entities to implement propositions of inspectorate (if necessary);

d) Deputy chief of inspectorate has responsibility to:

- exercise tasks of members of inspectorate under Point dd of this Clause if authorized by chief of inspectorate;

- exercise tasks of chief of inspectorate if authorized by chief of inspectorate. Authorized individuals are responsible to chief of inspectorate, persons issuing decisions on inspection, and the law for operation of inspectorate;

dd) Members of inspectorate have responsibility to:

- carry out inspection tasks according to authorization of chief of inspectorate and decision on inspection;

- submit reports on implementation results of their tasks to chief of inspectorate and be responsible for accuracy, veracity of the reports;

- retain remarks pertaining to the inspection details authorized by chief of inspectorate if necessary; request chief of inspectorate to take necessary measures to ensure effective and law-compliant inspection.

5. Rights and responsibilities of inspected entities

a) Inspected entities have the right to:

- receive written notice regarding inspection plan, decision on inspection except for irregular inspection; propose and present details relating to inspection details specified in the inspection log; present relevant details under draft Inspection conclusion at request of persons issuing decision on inspection (if any);

- file a complaint regarding inspection conclusion or guiding official dispatch and administrative violations of competent individuals during inspection process according to regulations and law on complaints;

- denounce administrative violations of competent individuals during inspection process in accordance with regulations and law on denunciation;

- Refuse to provide information and documents that are not related to inspection details;

b) Inspected entities have the responsibility to:

- cooperate and enable inspectorate to exercise their task during the inspection;

- produce reports at request of the inspectorate; promptly provide adequate information and documents; assume legal responsibility for reports, information, and documents serving inspection, and provide explanation for issues relating to inspection details;

- Comply with propositions of inspectorate under inspection log; inspection conclusion, guiding official dispatch (if any);

- produce written report on situation and solution results in order to remediate drawbacks according to propositions of inspectorate or inspection conclusion or guiding official dispatch in a timely manner;

- be accountable for failure to adequately implement propositions of inspectorate or inspection conclusion or guiding official dispatch.

Article 11. General regulations on inspection operation of Electricity inspector

1. Planned inspection must be approved by heads of inspecting entities or superior entities on an annual basis; annual inspection plan can be adjusted to meet implementation situation.

2. Electricity inspectors shall only carry out inspections when they are assigned to do so. If Electricity inspectors discover signs of violations beyond the scope of their assigned tasks, Electricity inspectors must promptly report to persons in charge in order to adopt appropriate form of inspection.

3. Upon carrying out inspection, inspecting entities must establish inspection team or inspectorate which contains at least 3 members, including the chief or deputy chief of inspectorate (with decision on inspection or written assignment of tasks, except for the case of irregular inspection where decision on inspection and written assignment of tasks are not required); and at least 1 Electricity inspector. The Electricity inspector is responsible for presenting his/her Electricity inspector card to the inspected entities and notifying the inspected entities of the inspection details.

4. The inspection must be carried out in the presence of representative of the inspected entities, except for cases under Point b Clause 1 Article 9 hereof.

If the inspection requires the presences of representative of the inspected entities who is absent, the inspected entities must assigns at least 1 witness with full legal capacity or representative of the local authority or police authority to observe the inspection.

5. Electrical measuring instruments used by inspecting entities for the purpose of inspection must be evaluated and calibrated as per the law.

6. If entering electricity user’s property to inspect electricity use from 10 p.m. to 6 a.m. the following day is required, inspecting entities must cooperate with local authority or police authority in observing the inspection and inspecting in accordance with this Circular.

Article 12. Inspection of electricity operations

Inspection of electricity operations involves inspecting compliance with the Law on Electricity (and amendments thereof) and guiding documents pertaining to any of the following:

1. Inspecting electricity operation conditions in fields that require license to operate.

2. Inspecting compliance with regulations on operation of electrical system.

3. Inspecting compliance with regulations on electricity market (in regard to participants to competitive electricity market of all levels).

4. Inspecting compliance with regulations on electricity price, electricity trading (including suspension, reduction of electricity supply), and power purchase agreement.

5. Inspecting protection of electrical appliances, electric utilities, and electrical safety.

6. Inspecting compliance with other regulations on electricity.

Article 13. Inspection of electricity use

Depending on inspection scope and competence, inspection of electricity use involves the following:

1. Inspecting voltage.

2. Inspecting power and power factor as follows:

a) Power and power factor is determined by data recorded in electronic meter or measured directly or indirectly by other measuring instruments at the time of inspection;

b) If measuring instruments are suspected to be inaccurate on a well-grounded basis, power and power factor must be determined by other measuring instruments;

c) When measuring power in peak hours either directly or indirectly by other measuring instruments, measure 3 times throughout inspection duration and the highest measurement shall prevail.

3. Inspecting electricity measuring system and relevant documents, including: electricity meters, voltage transformer, current transformers, wiring diagram, integrity of seal, and inspection period of electricity measuring system; installation and dismantlement record of electricity meter, electricity measuring instruments, and other relevant documents.

4. Inspecting compliance with regulations on safety in electricity use.

5. Inspecting compliance with obligations under PPAs and other obligations stated in the Law on Electricity (and amendments thereof) and guiding documents.

Article 14. Inspection of safety assurance of electric utilities and electrical grids of Electricity inspectors

Inspect compliance with Articles 50 through 53 of the Law on Electricity and guiding documents pertaining to:

1. Inspecting compliance with regulations on safety corridor of high-voltage grid.

2. Inspecting compliance with safety assurance of overhead lines.

3. Inspecting compliance with regulations on safety assurance of underground cables.

4. Inspecting compliance with regulations on safety assurance of electrical substations.

Article 15. Inspection procedures of competent authorities specializing in the field of electricity

1. Planned inspection

Based on annual inspection plan approved by competent authorities, planned inspection shall be carried out as follows:

a) Issue decision on inspection using form under Appendix III attached hereto which consists of: date of issue; basis for issuance; inspected entities; inspection duration, details, scope, time; composition of inspectorate, powers and responsibilities of inspectorate; powers and responsibilities of inspected entities (if necessary);

b) Inspectorate or authorized entities are responsible for requesting competent individual to approve inspection plan using form under Appendix III attached hereto;

c) Inspecting entities must inform inspected entities of inspection program in details using form under Appendix III attached hereto, including: inspection details, inspection time, documents to be prepared for the purpose of the inspection (if report request is not attached to decision on inspection, it must be attached to official dispatch notifying inspection). Notifying official dispatch attached to decision on inspection and report request must be sent to inspected entities at least 7 working days before inspection date;

d) Inspectorate shall carry out inspection in accordance with decision on inspection and approved inspection plan. At the end of each inspection, inspectorate and inspected entities must produce inspection log using form under Appendix III attached hereto. The log shall be made into 2 copies where the inspecting entities shall keep 1 copy and the inspected copy shall keep the other copy. If inspected party disagrees about contents in the log, they shall specify their remarks at the end of the record. The log must contain signatures of representatives of inspecting entities and inspected entities (or appending fingerprint instead of signing) and of witnesses (if any). If inspected party refuses to sign or append fingerprints in the log, person producing the record must specify the reason in the record. This log is still legitimate if representative of local authority or police authority or at least 1 witness with full legal capacity signs and verifies that violating organization, individual refuses to sign the log;

dd) If administrative violation in the field of electricity is found, in addition to the inspection log, inspectorate must produce administrative offence notice in accordance with Article 12 of Decree No. 118/2021/ND-CP dated December 23, 2021 of the Government elaborating the Law on Administrative Penalties;

e) Within 10 working days from the date on which the inspection ends, chief of inspectorate is responsible for submitting report to person issuing decision on inspection. Inspection report shall use form under Appendix III attached hereto and include: Overview on the inspected entities; inspection results according to the outline; solutions taken within competence (if any); propositions of inspected entities (if any); propositions of inspectorate;

g) If necessary, person issuing decision on inspection shall promulgate inspection conclusion or official dispatch requesting inspected entities to comply with propositions of inspectorate (using form under Appendix III attached hereto);

h) If inspectorate must produce administrative offence notice as per administrative penalty laws, head of inspecting entities shall take actions within his/her competence or transfer the administrative offence notice, dossiers, exhibits, instruments (if any) of the violation to competent individual as per the law.

2. Irregular inspection

a) Irregular inspection shall be carried out as soon as decision on establishment of inspectorate is promulgated and inspected entities shall not be informed of inspection time or inspection details;

b) Regulations on inspectorate, inspection time, inspection log, inspection report, inspection conclusion, guiding official dispatch (if any) shall conform to Points a, b, d, dd, e, g, and h Clause 1 of this Article and Article 10 hereof.

Article 16. Inspection procedures of DSOs, TSOs, electricity wholesalers, electricity retailers

1. Planned inspection

Based on annual inspection plan approved by competent authorities, planned inspection shall be carried out as follows:

a) Inspecting entities must notify inspected entities of inspection time at least 5 working days in advance, except for cases under Point b Clause 1 Article 9 hereof. The notice must be signed by competent individual and specify inspection details, scope, location, time, composition of inspectorate or inspection teams;

b) Inspecting entities shall carry out inspection in accordance with approved annual plan and assigning document or decision on inspection (if any);

c) Inspected entities, upon receiving the notice of inspection, must prepare in accordance with the request and assign person in charge to cooperate with inspecting entities. Inspected entities have the right to reject incorrect details or details not listed among those notified by inspecting entities;

d) If violations are found during inspection, inspecting entities must take appropriate preventive measures. Violations that exceed inspecting entities’ competence or inspection details or inspection scope, inspecting entities must immediately inform competent individual;

dd) While carrying out inspection, inspecting entities must produce inspection record or electricity use inspection record containing all inspection details using form under Appendix III attached hereto (except for cases under Point dd Clause 1 and Point h Clause 2 Article 4 hereof); the record shall be made into 3 copies where the inspecting entities keep 2 copies and the inspected entities keep 1 copy;

e) Regulations on inspection record or electricity use inspection record apply to inspection carried out by Electricity inspectors:

- Records must bear adjoining seals of entities overseeing Electricity inspectors and be numbered for administration purposes; used records, including records that are written incorrectly or discarded must be managed and stored adequately as per the law;

- Records must contain full name of people participating in the inspection, representatives of inspected entities and witnesses (if any). If inspected party disagrees about contents in the record, they shall specify their remarks at the end of the record;

- The record must contain signatures of representatives of inspecting entities (Electricity inspectors) and inspected entities (or appending fingerprint instead of signing) and of witnesses (if any);

- If inspected parties refuse to sign or append fingerprints in the record, person producing the record must specify the reason in the record. This record is still legitimate if representative of local authority or police authority or at least 1 witness with full legal capacity signs and verifies that violating organization, individual refuses to sign the record;

- If multiple violations in the field of electricity are found, all violations must be described in detail individually in the record.

2. Irregular inspection

a) Heads of inspecting entities have the power to issue decision on irregular inspection or documents assigning irregular inspection in the manner that fulfills inspection Clause 3 Article 11 hereof;

b) If signs of violations are found while not performing inspection tasks, Electricity inspectors must promptly report to persons in charge in order to organize inspections;

c) Irregular inspection shall be carried out as soon as Electricity inspectors present Electricity inspection card, state reason, and inspection scope to inspected entities; inspecting entities shall carry out inspection in accordance with Point d, Point dd, and Point e Clause 1 of this Article; inspected entities shall prepare in accordance with request and assign personnel to cooperate with inspecting entities.

3. If administrative violations in the field of electricity are found during inspection, chief of inspection team or inspectorate shall follow the procedures below:

a) Inspecting entities have the right to take necessary measures to protect the scene and are legally responsible for their actions;

b) If members of inspection teams or inspectorates are entitled to produce administrative offence notice in the field of electricity according to Article 33 of Decree No. 134/2013/ND-CP (amended under Clause 38 Article 2 of Decree No. 17/2022/ND-CP), these members are responsible for producing administrative offence notice based on inspection record or electricity use inspection record in accordance with Article 12 of Decree No. 118/2021/ND-CP dated December 23, 2021 of the Government and sending documents to competent individuals entitled to impose administrative penalties in accordance with Point b Clause 1 Article 20 hereof;

c) If none of the members of inspection teams or inspectorates are entitled to produce administrative offence notice in the field of electricity, inspecting entities shall produce inspection record or electricity use inspection record using form under Appendix III attached hereto and send case files, exhibits, and related instruments (if any) to competent individuals entitled to produce administrative offence notice in the field of electricity in accordance with Point c Clause 1 Article 20 hereof.

Article 17. Responsibilities of organizations and individuals if irregularities in electricity measuring system are found in violation

1. If inspecting entities discover missing electricity meter, damaged or displaced or abnormal electricity measuring system during electricity use inspection, inspecting entities must specify the current conditions and proposed solutions in the inspection log (in regard to inspections carried by competent authorities specializing in the field of electricity) or inspection record (in regard to inspections carried out by Electricity inspectors).

2. The dismantlement of electricity measuring instrument in case of damaged or unusual electricity measuring system shall be implemented as follows:

a) Inform electricity vendors pertaining to the dismantlement of electricity measuring system;

b) Retain seals of inspecting organization. Other electricity measuring instruments and seals must be gathered, packaged, and sealed (seals must bear signatures of Electricity inspectors or public officials, employees performing their duty, representatives of electricity buyers and electricity vendors). If electricity buyers refuse to sign the seal, inspecting entities must request a witness with full legal capacity or representative of local authority or police authority to witness, sign the seal, and verify the refusal of electricity buyers;

c) Produce inspection log (in regard to inspections carried by competent authorities specializing in the field of electricity) or inspection record (in regard to inspections carried out by Electricity inspectors), which states inspection time, location, detailed description of current conditions, irregularities of electricity measuring system and reason for dismantlement of electricity measuring system.

3. Once the inspection ends and electricity measuring instruments are inspected by inspecting organizations, related parties are responsible for witnessing the inspection and verification of electricity measuring instruments. If related parties are absent from the inspection process without justifiable reasons, they are required to acknowledge the results.

4. Methods of determining electricity production in case electricity measuring instruments are inaccurate or damaged in a way that causes electricity meter to stop working or in case electricity meter is missing shall conform to Clause 2, Clause 3, Clause 4 Article 20 of Decree No. 137/2013/ND-CP dated October 21, 2013 of the Government.

Article 18. Responsibilities of organizations and individuals when inspecting and taking actions against electricity theft

1. If inspecting entities discover electricity theft during electricity use inspection, inspection log (in regard to inspections carried by competent authorities specializing in the field of electricity) or inspection record (in regard to inspections carried out by Electricity inspectors) must contain the following details:

a) Description of electricity theft and parameters relating to calculation and penalties;

b) Drawing of electricity theft diagram;

c) Other evidence such as tools involved, photos, video recordings, other electronic data (if any);

d) The delivery of exhibits and instruments relating to electricity theft between inspected entities and inspecting entities in case exhibits and instruments relating to electricity theft at time of the inspection.

2. Responsibilities of electricity vendors or Electricity inspectors of electricity vendors

a) If members of inspection team or inspectorate are entitled to produce administrative offence notice for electricity theft, Electricity inspectors affiliated to electricity vendors or representatives of electricity vendors participating in the inspectorate are responsible for providing documents, calculation figures relating to amount of electricity stolen, revenues generated by electricity theft, and illegal profits for competent individuals entitled to produce administrative offence notice and accepting the case;

b) If none of the members of inspection team or inspectorate are entitled to produce administrative offence notice for electricity theft, electricity vendors or Electricity inspectors affiliated to electricity vendors are responsible for transferring electricity use inspection record, documents, calculation figures relating to amount of electricity stolen, revenues generated by electricity theft, illegal profits, and all exhibits, instruments relating to the case to competent individuals entitled to impose administrative penalties.

3. If electricity theft is discovered during or after inspection process, on the basis of inspection log or electricity use inspection record and information provided by electricity vendors pertaining to documents and electricity theft figures, competent individuals entitled to produce administrative offence notice in the field of electricity according Article 33 of Decree No. 134/2013/ND-CP (amended by Clause 38 Article 2 of Decree No. 17/2022/ND-CP) are responsible for:

a) determining amount of electricity stolen and value thereof in accordance with Article 21 hereof;

b) producing administrative offence notice for electricity theft at the time of inspection or after receiving case files regarding electricity theft transferred to by electricity units (including the case where value of stolen electricity is at least 2.000.000 VND) and transferring to competent individuals entitled to impose administrative violations.

4. Responsibilities of competent individuals entitled to impose administrative penalties dealing with the case

a) Temporarily suspending exhibits, instruments of violations as per the law (if any);

b) Promulgating decision on administrative penalties as per the law or transferring case files in accordance with Clause 3 and Clause 4 Article 20 hereof;

c) Notifying and requesting electricity vendors to temporarily cut power immediately within 24 hours from the moment in which administrative offence notice is received.

Article 19. Inspection documents

Inspecting entities are responsible for storing inspection documents or copies of inspection documents below if case files are transferred to competent individuals:

1. Documents on electricity operation inspection and electricity use inspection of competent authorities specializing in the field of electricity

a) Decision on inspection (may include request for report);

b) Approved inspection plan;

c) Notice of inspection (if the request for report is not attached to decision on inspection, it must be attached to notice of inspection);

d) Report of inspected entities according to the outline (except for inspection of electricity use of households);

dd) Inspection log;

e) Report, presentation of inspected entities (if any);

g) Report on inspection results;

h) Inspection conclusion or guiding official dispatch (if any);

i) Documents on implementation, requesting implementation (if there are propositions to be fulfilled);

k) In case of administrative violations or criminal intent: Administrative offence notice (main copies if the case is within capacity of inspecting entities or duplicate copies in case the case files are transferred to competent individuals); decision on suspension of exhibits, instruments (if any); decision on administrative penalties or official dispatch on case file transfer;

l) Other relevant documents (if any).

2. Inspection documents on electricity use, safety assurance of electric utilities and electrical grid of Electricity inspectors

a) Decision on establishment of inspection teams or inspectorates or assigning documents of inspecting entities (applicable to planned inspections and notified inspections or irregular inspections where decision on inspection or assigning documents are issued) and documents of relevant entities assigning participants (if any);

b) Notice on inspection (in case of planned inspection and notified inspection);

c) Inspection record or electricity use inspection record (except for cases under Point dd Clause 1 and Point h Clause 2 Article 4 hereof); electronic or physical data recording inspection details and results on management system of electricity units (for cases under Point dd Clause 1 and Point h Clause 2 Article 4 hereof);

d) Photos, video recordings, electronic data recording and depicting the violation (if any);

dd) Inspection record of electricity measuring instrument if electricity use inspection is carried out (if any). If inspection record of electricity measuring instruments is produced, assessment record of electricity measuring instruments is required as attachment; dismantled electricity measuring instruments (if instruments are to be stored with documents) or documents on equipment handling (if any);

e) Electricity theft diagram if electricity theft is found;

g) Spreadsheet of stolen electricity and illegal profits gained by electricity theft determined by inspecting entities in case of electricity;

h) Duplicates of administrative offence notice if inspection teams or inspectorates discover and record violations;

i) Spreadsheet of damages and fines for violations (if any);

k) Other relevant papers, documents, and exhibits.

Article 20. Transfer of case files

1. If Electricity inspectors affiliated to DSOs, TSOs, wholesalers, retailers produce inspection records or electricity use inspection records

a) If electricity buyers infringe PPAs according to Clause 2 Article 13 of Decree No. 137/2013/ND-CP dated October 21, 2013 of the Government, case files must be stored at electricity units or transferred to relevant electricity units within 2 working days from the date of producing inspection record;

b) If electricity buyers commit administrative violations under Clauses 1 through 8 Article 12 of Decree No. 134/2013/ND-CP (amended by Clause 15 Article 2 of Decree No. 17/2022/ND-CP) and competent individuals in inspecting teams or inspectorate have produce administrative offence notice, once the inspection ends, inspecting entities shall cooperate with individuals producing administrative offence notice in finalizing the case files and transferring the case files (and relevant exhibits and instruments (if any)) to competent individuals entitled to impose administrative penalties within 2 working days from the date on which inspection record is produced;

c) If electricity buyers show sign of administrative violations under Clauses 1 through 8 Article 12 of Decree No. 134/2013/ND-CP (amended by Clause 15 Article 2 of Decree No. 17/2022/ND-CP) and none of the members of inspecting teams or inspectorates are entitled to produce administrative offence notice, case files (including documents and calculation figures relating to electricity theft) must be sent to competent individuals entitled to produce administrative offence notice within 3 working days from the date on which inspection record is produced; competent individuals entitled to produce offence notice upon receiving the case files are responsible for complying with Clause 3 Article 18 hereof.

2. If public officials and employees affiliated to competent authorities specializing in the field of electricity produce inspection logs which reveal infringement of PPAs according to Article 13 of Decree No. 137/2013/ND-CP dated October 21, 2013 of the Government, the case files must be sent to the infringed parties within 2 working days from the date on which inspection log is produced.

3. If signs of violations of criminal laws are present, competent individuals entitled to impose penalties accepting the case must transfer the case files (including administrative offence notice) to competent authorities entitled to press criminal charges as per the law.

4. Case files of electricity theft transferred to competent authorities entitled to press criminal charges include:

a) Documents on transfer of electricity theft case files;

b) Administrative offence notice;

c) Spreadsheet containing calculation of value of stolen electricity, illegal profits; Spreadsheet containing damages incurred as a result of electricity theft (if any);

d) Decision on administrative penalties (if administrative penalties have been issued after which point signs of violations of criminal laws are found);

dd) Decision on suspension of decision on administrative penalties (if signs of violation of criminal laws are found while administrative penalties are being complied with);

e) Electricity use inspection record or inspection log;

g) Electricity measuring instrument inspection record (if any), electricity measuring instrument assessment record (if any);

h) Electricity theft diagrams, images, video recordings, electronic data recording and depicting the violation (if any);

i) Other relevant documents and items.

Chapter IV

METHODS FOR DETERMINING AMOUNT OF STOLEN ELECTRICITY, PROFITS GENERATED BY ELECTRICITY THEFT, AND DAMAGES

Article 21. Methods for determining value of stolen electricity

1. Value of stolen electricity shall be determined using the formula below:

a) Electricity theft for non-domestic purpose:

In which:

T_tc: Value of stolen electricity (VND);

i: Numbers of electricity bills where electricity theft occurs;

A_HDi: Amount of electricity used by the offender incurred in the i^th electricity bill (kWh);

A_SDi: Amount of electricity used by the offender according to the i^th electricity bill that involves electricity theft, calculated in accordance with Clause 2 of this Article (kWh).

g: Electricity rate of the i^th electricity bill (VND/kWh), determined as follows:

- If stolen electricity serves business purposes: Use peak-hour rate of the i^th electricity bill;

- If stolen electricity serves manufacturing purposes: Use peak-hour rate of the i^th electricity bill;

- If electricity vendors use electricity for manufacturing, business, service purposes, are provided with electricity by specialized transformers below 25 kVA or have average electricity consumption in the last 3 consecutive months below 2.000 kWh/month and have not purchased electricity using three-band rates, use standard rate;

- If stolen electricity serves administrative purposes: Use retail rate of the i^th electricity bill.

b) Electricity theft for domestic purpose:

In which:

T_tc: Value of stolen electricity (VND);

i: Numbers of electricity bills where electricity theft occurs;

j: Number of tier in electricity tiered rate for domestic purpose;

A_HDij: Amount of electricity used for domestic purposes corresponding to the j^th tier and incurred by the offender in the i^th electricity bill (kWh), A_HDij is derived from amount of electricity incurred in the i^th electricity bill (A_HDi);

A_SDij: Amount of electricity used for domestic purposes corresponding to the j^th tier by the offender in the i^th electricity bill (kWh). A_SDij is derived from amount of electricity used during the i^th electricity bill (A_SDi) where electricity theft occurs and is calculated in accordance with Clause 2 of this Article;

g_j: Electricity retail rate corresponding to the j^th tier according to electricity tariff tier (VND/kWh).

c) If inspected entity uses stolen electricity for multiple purposes, profit generated by electricity theft shall be total profit generated by stolen electricity used for each purpose and electricity rate which is applied on a case-by-case basis with the following order of priority:

- Electricity rate for each purpose relies on percentage of said purpose;

- Electricity rate of each purpose relies on percentage agreed upon under PPAs;

- Electricity rate under tariff tier.

2. Amount of electricity used in the i^th electricity bill (A_SDi) where electricity theft occurs is determined as follows:

a) Methods for determining amount of electricity used (ASDi) based on inspected variation of electricity meters

If the offender only tampers in order to cause electricity meters to produce incorrect reading which can be verified by inspection, amount of electricity used in the i^th electricity bill shall be determined as follows:

In which:

A_SDi: Amount of electricity used in the ith electricity bill where electricity theft occurs (kWh);

i: Numbers of electricity bills where electricity theft occurs;

m_i: Number of days where electricity is used in the i^th electricity bill (day);

n_i: Number of days where electricity theft occurs in the i^th electricity bill (day), determined in accordance with Clause 3 of this Article;

 : Amount of electricity used in days where electricity theft does not occur of the i^th electricity bill (kWh). Amount of electricity used in days where electricity theft does not occur shall equal number of days where electricity theft does not occur (T_i - n_i) multiplied by average electricity usage according to the i^th electricity bill (A_HDi divided by T_i) as seen in the formula below:

 : Amount of electricity used in days where electricity theft occurs in the i_th electricity bill (kWh), determined based on variation of electricity meter reading and the following formula:

s: The greatest variation according to inspection results of independent inspecting agencies (in %);

b) Methods for determining amount of electricity used in case of other electricity theft schemes or in case methods under Point a of this Clause cannot be applied or calculation results under Point a of this Clause do not fit the situation. Amount of electricity used in the i^th electricity bill (A_SDi) is determined as follows:

In which:

i: Numbers of electricity bills where electricity theft occurs;

m_i: Number of days where electricity is used in the i^th electricity bill (day);

n_i: Number of days where electricity theft occurs in the i^th electricity bill (day), determined in accordance with Clause 3 of this Article;

 : Amount of electricity used in days where electricity theft does not occur of the i_th electricity bill (kWh). Amount of electricity used in days where electricity theft does not occur shall equal number of days where electricity theft does not occur (m_i - n_i) multiplied by average electricity usage according to the i^th electricity bill (A_HDi divided by m_i) as seen in the formula below:

: Amount of electricity used in days where electricity theft occurs in the i^th electricity bill (kWh), determined in accordance with Point c of this Clause;

c) Amount of electricity used in days where electricity theft occurs in the i^th electricity bill (kWh) shall be determined as follows:

Step 1: Determine electricity consumption of days where electricity theft occurs: Based on inspection results, determine the highest electricity consumption among all electricity consumption values using the following methods:

- Method 1: Total electricity consumption at the time of inspection or violation discovery;

- Method 2: The highest electricity consumption in load profile registered under PPAs;

- Method 3: Electricity consumption of all electric appliances under manifest of electricity consumption of electric appliances registered in PPAs (in regard to PPAs serving manufacturing, business, and/or service);

- Method 4: Electricity consumption of electric appliances specified in inspection record (electricity consumption written on labels of manufacturers is also viable);

Step 2: Determine amount of electricity in days where electricity theft occurs 

- If electricity consumption is determined using either method 1 or method 2, apply formula below:

i: Numbers of electricity bills where electricity theft occurs;

P: Total consumption (kW) measured at the time of inspection or discovery of violation or the highest consumption (kW) in the load profile registered under PPAs;

t_tb: Average number of hours of use per day of all electric appliances (hour/day), determined in accordance with inspection log or inspection record or registered load profile, if unidentifiable, Section 11 of Appendix II attached hereto prevails;

n_i: Number of days where electricity theft occurs in the i^th electricity bill (day), determined in accordance with Clause 3 of this Article;

- If electricity consumption is determined using either method 3 or method 4, apply formula below:

In which:

i: Numbers of electricity bills where electricity theft occurs;

k: Number of each electric appliance;

P₁, P₂, …, P_k: Electricity consumption (kW) of each electric appliance under manifest of electricity consumption of electric appliances registered under PPAs or electricity consumption (kW) of each electric appliance specified in inspection log or inspection record;

t₁, t₂, …, t_k: Number of hours of use per day of each appliance (hour/day), determined in accordance with inspection record; if unidentifiable, Appendix II attached hereto prevails;

n_i: Number of days where electricity theft occurs in the i^th electricity bill (day), determined in accordance with Clause 3 of this Article.

3. Number of days where electricity theft occurs (n) and number of days where electricity theft occurs in the ith electricity bill (n_i) under Clause 2 of this Article is determined as follows:

a) Determine number of days where electricity theft occurs (n):

- Starting from the date on which violation is committed until the date on which it is discovered, minus periods of electricity shortage and temporary suspension of electricity use with justifiable reasons;

- If solution under Point a of this Clause is not viable, number of days where electricity theft occurs shall start from the latest electricity inspection date or the latest replacement, repair, or periodic inspection of electricity measuring system until the date of discovery without exceeding 365 days and shall not include periods of electricity shortage and temporary suspension of electricity use with justifiable reasons;

b) Determine number of days where electricity theft occurs in i^th electricity bill (n_i) by comparing time period under i^th electricity bill with periods where electricity theft occurs determined under Point a of this Clause using the formula: 

Article 22. Illegal profits generated by electricity theft and damages

1. Organizations and individuals committing electricity theft must return illegal profits generated by electricity theft to electricity vendors, including:

a) Value of stolen electricity determined under Article 21 hereof;

b) All costs that arise as a result of the violation, including: Costs for repairing, inspecting, calibrating, or compensating for the damaged measuring instruments or system; costs that arise and are incurred by the offender during adoption of penalties and other relevant costs as per the law (if any).

2. In addition to returning illegal profits as specified under Clause 1 of this Article, organizations and individuals committing electricity theft must compensate for other damage that they have caused to electricity vendors in accordance with civil laws.

Article 23. Implementation of decision on penalties and remedial measures of electricity theft

1. The sending of decisions on penalties for electricity theft for the purpose of organizing implementation shall conform to Article 71 and Article 73 of the Law on Administrative Penalties (and amendments thereof) and guiding documents. Organizations and individuals committing electricity theft must adopt a remedial measure which is mandated return of illegal profits generated by electricity theft (including all costs that arise as a result of the violation) in accordance with Clause 1 Article 22 hereof to the affected organizations and individuals in accordance with Point b Clause 11 Article 12 of Decree No. 134/2013/ND-CP (amended by Clause 15 Article 2 of Decree No. 17/2022/ND-CP).

2. If signs of criminal activities are found during implementation of decision on administrative penalties for electricity theft, competent individuals must issue decision on temporary suspension of decision on administrative penalties and transfer the case file to competent authorities entitled to initiate criminal proceeding in accordance with Article 62 of the Law on Administrative Penalties (and amendments thereto) and guiding documents.

3. If criminal proceeding authorities issue either decision on no criminal prosecution or decision on cancellation of decision on criminal prosecution or decision on temporary suspension of investigation or decision on temporary suspension of the case or decision on temporary suspension of the case against the defendant or exempt the offender from criminal liabilities according to judgment if the case involves administrative penalties and transfer the case file to competent individuals entitled to impose administrative penalties in accordance with Clause 3 Article 62 and Article 62 of the Law on Administrative Penalties (and amendments thereto), competent individuals entitled to impose administrative penalties are responsible for issuing decision on administrative penalties based on fine under Point b Clause 8 Article 12 of Decree No. 134/2013/ND-CP (amended by Clause 15 Article 2 of Decree No. 17/2022/ND-CP). If decision on administrative penalties is not issued in accordance with Article 125 of the Law on Administrative Penalties (and amendments thereof), competent individuals must issue decision on adoption of remedial measures for electricity theft as per the law.

4. Organizations and individuals met with administrative penalties or mandated adoption of remedial measures for electricity theft must comply with the decision within 10 days from the date on which they receive the decision unless otherwise specified in the decision.

5. If organizations and individuals committing administrative violations fail to comply with decision on administrative penalties or decision on adoption of remedial measures, competent individuals are responsible for organizing enforcement in accordance with Decree No. 166/2013/ND-CP dated November 12, 2013 of the Government or later amending documents.

Chapter V

SETTLEMENT OF DISPUTES PERTAINING TO POWER PURCHASE AGREEMENTS

Article 24. Entitlement to settle disputes in PPAs

1. Departments of Industry and Trade are entitled to settle disputes pertaining to PPAs relating to up to 100 kV of voltage if the parties have not initiated civil proceeding or trade arbitration but have agreed upon requesting Departments of Industry and Trade to settle disputes.

2. Electricity Regulatory Authority of Vietnam is entitled to settle disputes pertaining to PPAs relating to exceeding 110 kV if the parties have not initiated civil proceedings or trade arbitration but have agreed upon requesting Electricity Regulatory Authority of Vietnam to settle disputes.

3. Electricity Regulatory Authority of Vietnam and Departments of Industry and Trade shall only settle disputes if the parties fail to reach a consensus and have requested Electricity Regulatory Authority of Vietnam and Departments of Industry and Trade to settle disputes.

Article 25. Procedures for settling disputes pertaining to PPAs

1. The parties must attempt to negotiate before requesting Electricity Regulatory Authority of Vietnam or Departments of Industry and Trade to settle disputes.

2. If negotiation fails, either party has the right to request Electricity Regulatory Authority of Vietnam or Departments of Industry and Trade in writing to settle disputes.

3. Request for dispute settlement

a) Written request for dispute settlement;

b) Inspection log or other documents proving the parties’ inability to settle the disputes and agreement on requesting Electricity Regulatory Authority of Vietnam or Departments of Industry and Trade to settle;

c) Copies of PPAs;

d) Copies of license to engage in electricity operations (if any);

dd) Documents proving grounded basis and legitimacy of the request for dispute settlement;

e) Documents and evidence relating to the case.

4. Within 5 working days from the date on which written request for dispute settlement is received, Electricity Regulatory Authority of Vietnam and Departments of Industry and Trade are responsible for informing relevant parties. If request for dispute settlement is rejected, Electricity Regulatory Authority of Vietnam or Departments of Industry and Trade must respond in writing and state reason.

5. Electricity Regulatory Authority of Vietnam and Departments of Industry and Trade have the right to request relevant parties to provide documents, conduct physical inspection (if necessary), and verify documents.

6. Within 20 days from the date on which adequate request is received, Electricity Regulatory Authority of Vietnam or Departments of Industry and Trade are responsible for holding meetings for dispute settlement.

7. Within 5 days from the date on which meeting for dispute settlement is held, Electricity Regulatory Authority of Vietnam or Departments of Industry and Trade are responsible for promulgating notice on settlement results.

8. In regard to complicated cases, meetings for settlement of dispute and promulgation of dispute settlement results must be done within 40 working days from the date on which adequate request is received.

9. If either party disagrees with settlement results of Electricity Regulatory Authority of Vietnam or Departments of Industry and Trade, they have the right to request trade arbitration or press charges.

Article 26. Responsibilities of relevant parties in settling disputes pertaining to PPAs

1. Parties having disputes pertaining to PPAs have the responsibility to

a) ensure accuracy of documents and information provided for dispute settlement authorities;

b) cooperate and enable dispute settlement authorities to collect adequate information and carry out physical inspection (if necessary);

c) take actions within their powers or at request of dispute settlement authorities in order to minimize damage.

2. Dispute settlement authorities have the responsibility to:

a) produce objective conclusion on the basis of request for dispute settlement and evidence provided by each party during settlement process;

b) respect the agreement without contradicting the law and the right to negotiation between parties with disputes pertaining to PPAs;

c) Notify and transfer case files to competent authorities in order to deal with violations that exceed their powers as per the law.

Article 27. Penalties for contract breach and damages

1. Penalties for contract breach shall depend on agreement under contract and conform to regulations and law.

If parties have not agreed on penalties for contract breach, the non-breaching party only has the right to demand damages.

If the parties have agreed on penalties for contract breach, the non-breaching party has the right to impose penalties and demand damages.

2. Damages of contract breach shall depend on regulations and law unless otherwise agreed upon under the contract.

3. Value of the breached obligations and damages of each violation shall be determined in accordance with Article 28 and Article 29 hereof. Other damage shall be agreed upon by both parties.

4. The time limit for paying damages shall be agreed upon by both parties but no more than 15 days from the date on which damages request is accepted. If breaching party fails to pay damages within the aforementioned time limit, they shall incur late payment interest on the damages as per the law or otherwise agreed upon in the contract.

5. Within 15 days from the date on which request for contract breach damages is received, breaching party must pay damages to the non-breaching party and late payment interest prescribed by the contract or by law if they fail to pay damages in a timely manner.

6. Breaching party shall compensate for all losses of the non-breaching party that originate from the breach. Damages include compensation for actual losses and direct losses sustained by the non-breaching party as a result of the breach and profits which the non-breaching party would have gained if the breach had not occurred. The party that requests damages must prove the losses and level thereof caused by the breach and profits which they would have gained if the breach had not occurred.

Article 28. Methods for determining value of breached contract obligations in regard to violation of electricity vendors

1. Delaying electricity supply as agreed upon in PPAs

a) Compensate electricity buyers for damage sustained by the buyers as a result of the breach;

b) Penalties for contract breach shall be agreed upon by the parties in the contract and based on value of the breached contract obligations.

Value of breached contract obligations shall be determined by amount of electricity agreed upon in the contract and calculated based on registered power, the duration of power usage in a day, electricity rate specified in PPAs, and number of days in which electricity supply is delayed which is determined from the date on which electricity vendors produce commitment to supply electricity to the date on which electricity is supplied and formula below:

T = A x g x n

In which:

T: Value of breached contract obligations (VND);

A: Daily electricity usage based on parameters registered in PPA (kWh/day);

g: Electricity rate (VND/kWh) for the purpose of calculating compensation, calculated using the highest rates among signed PPAs;

n: Number of days where electricity supply is delayed.

2. Failing to maintain quality or quantity of electricity as per signed contracts thereby causing damage to electricity buyers

a) Compensate electricity buyers for damage sustained by the electricity buyers as a result of electricity vendor’s failure and profits which electricity vendors would have gained if the breach had not occurred;

b) Penalties for contract breach shall be agreed upon by the parties in the contract and based on value of the breached contract obligations.

Value of breached contract obligations shall be determined by amount of electricity agreed upon in the contract and calculated based on registered consumption, electricity rate in PPAs, and period in which electricity quality or quantity is compromised and formula below:

T = P x t x g

In which:

T: Value of breached contract obligations (VND);

P: Consumption registered under PPAs (kW);

t: Period in which electricity quality or quantity is compromised (hour);

g: Electricity rate (VND/kWh) for the purpose of calculating compensation, calculated using the highest rates among signed PPAs.

3. Incorrectly recording electricity reading or incorrectly calculating electricity bill thereby causing damage to electricity buyers

a) Electricity vendors must return any amount overpaid by the electricity buyers together with interest rate agreed upon by the parties in the contract;

b) Electricity vendors must be met with penalties for contract breach agreed upon in PPAs.

4. Failing to adjust when electricity buyers notify and fulfill requirements for increasing the number of households sharing an electricity meter or notify and fulfill requirements for increasing domestic electricity usage

a) Electricity vendors must return any amount overpaid by electricity buyers during the duration of the violation. The duration of the violation starts from the electricity bill period that follows the period in which electricity buyers notify and fulfill requirements for increasing the number of households sharing an electricity meter or notify and fulfill requirements for increasing domestic electricity usage to the date on which electricity vendors adjust accordingly;

b) Electricity vendors must be met with penalties for contract breach agreed upon in PPAs.

Article 29. Methods for determining value of breached contract obligations in regard to violation of electricity buyers

1. Delaying execution of signed PPAs thereby causing damage to electricity vendors

a) Compensate electricity vendors for damage sustained by the vendors as a result of the breach;

b) Penalties for contract breach shall be agreed upon by the parties in the contract and based on value of the breached contract obligations.

Value of breached contract obligations shall be determined by amount of electricity agreed upon in the contract and calculated based on registered capacity, the duration of power usage in a day, electricity rate specified in PPAs, and number of days in which contract execution is delayed which is determined from the date on which electricity buyers produce commitment to execute the contract to the date on which the contract is executed and formula below:

T = A x g x n

In which:

T: Value of breached contract obligations (VND);

A: Daily power usage, determined by parameters registered under PPAs (consumption multiplied by duration of electricity usage in a day);

g: Electricity rate (VND/kWh) for the purpose of calculating compensation, calculated using the highest rates among signed PPAs;

n: Number of days where contract execution is delayed.

2. Using electricity for purposes that correspond to a rate higher than that agreed upon in PPAs

a) Compensate electricity vendors for the difference between electricity rates for the entire duration of the violation plus interest thereof agreed upon under PPAs. If time of violation cannot be clearly identified, duration of the violation shall be considered 365 days;

b) Electricity buyers must be met with penalties for contract breach agreed upon in PPAs.

3. Exceeding the consumption registered in load profile under PPAs during peak hours

a) Electricity buyers must compensate electricity vendors for damage caused to the vendors;

b) Penalties for contract breach shall be agreed upon by the parties in the contract and based on value of the breached contract obligations.

Value of breached contract obligations shall be determined using the following formula:

T= ∆P x t x g

In which:

T: Value of breached contract obligations (VND);

∆P: excess consumption in peak hours, determined by subtracting consumption registered in load profile for the corresponding time band from the maximum consumption;

t: Duration of the violation in hours (count as 1 hour if less than 1 hour);

g: Peak-hour electricity rate according to tariff prescribed by competent authorities during the period for which compensation is calculated (VND/kWh).

4. Failing to cut power or reduce electricity consumption upon receiving notice of electricity vendors for cases under Article 27 of the Law on Electricity.

a) Electricity buyers must compensate electricity vendors for damage caused to the vendors;

b) Electricity buyers shall be met with penalties for contract breached agreed upon in the contract.

5. Failing to pay electricity bill in a timely manner

a) Conform to Clause 2 and Clause 4 Article 23 of the Law on Electricity;

b) Electricity buyers shall be met with penalties for contract breached agreed upon in the contract.

6. Failing to notify electricity vendors upon reducing number of households sharing an electricity meter or reducing domestic electricity usage or failing to correctly declare quantity of electricity users in order to obtain higher electricity usage

a) Electricity buyers must pay the arrears that have accumulated over the duration of the violation. The duration of the violation starts from the period of electricity bill in which electricity buyers reduce the number of households sharing an electricity meter or reducing domestic electricity usage without notifying electricity vendors or incorrectly declaring quantity of electricity users in order to obtain higher electricity usage to the date on which the electricity vendors make adjustment. If electricity buyers fail to present documents proving the date on which the number of households sharing an electricity meter is reduced or domestic electricity usage is reduced, duration of the violation shall start from the date on which the latest inspection for number of households sharing electricity meters or domestic electricity usage is conducted to the date on which the electricity vendors make the adjustment but not lower than 365 days;

b) Electricity buyers must be met with penalties for contract breach agreed upon in PPAs.

Chapter VI

ORGANIZING IMPLEMENTATION

Article 30. Responsibilities of Electricity Regulatory Authority of Vietnam and Departments of Industry and Trade

1. Electricity Regulatory Authority of Vietnam has the responsibility to:

a) guide, inspect, and supervise the implementation of regulations on inspection of electricity operations and electricity use of Departments of Industry and Trade, specialized Departments affiliated to People’s Committees of districts, towns, cities, and inspection of electricity use, safety assurance of electric utilities and electrical grids of electricity units;

b) guide, inspect, and supervise training, examination, and issuance of electricity inspector card in accordance with this Circular on a nationwide scale.

2. Departments of Industry and Trade are responsible for:

a) guide, inspect, and supervise the implementation of regulations on inspection of electricity operations and electricity use of specialized Departments affiliated to People’s Committees of districts, towns, cities, and inspection of electricity use, safety assurance of electric utilities and electrical grids of electricity units in the provinces;

b) guide, inspect, and supervise training, examination, and issuance of electricity inspector card in accordance with this Circular on a provincial scale.

Article 31. Report

1. By the end of February 15 each year, provincial electricity units are responsible for submitting reports on training, examination, and issuance of electricity inspector card; inspection of electricity use and safety assurance of electric utilities and electrical grids in person or via pos or via email (if any) to Departments of Industry and Trade using form No. 1 under Appendix IV attached hereto.

2. By the end of March 1 each year, Departments of Industry and Trade are responsible for submitting reports on inspection and penalties for violations in electricity operations, electricity use, and settlement of disputes pertaining to PPAs in person or via post or via email (if any) to Electricity Regulatory Authority of Vietnam using form No. 2 under Appendix IV attached hereto.

3. By the end of March 1 each year, Vietnam Electricity, National Power Transmission Corporation and Power Corporations affiliated to Vietnam Electricity are responsible for submitting reports on training, examination, and issuance of electricity inspector card, inspection of electricity use, safety assurance of electric utilities and electrical grids of electricity inspectors holding cards that they have issued in person or via post or via email (if any) to Electricity Regulatory Authority of Vietnam using form No. 3 under Appendix IV attached hereto.

Article 32. Responsibilities for implementation

1. This Circular comes into force from February 16, 2023.

2. The following documents or parts of documents expire from the effective date hereof:

a) Circular No. 27/2013/TT-BCT dated October 31, 2013 of the Minister of Industry and Trade;

b) Circular No. 31/2018/TT-BCT dated October 5, 2018 of the Minister of Industry and Trade on amendment to Circular No. 27/2013/TT-BCT dated October 31, 2013;

c) Article 28 and Section 12, Section 13 of Appendix attached to Circular No. 42/2019/TT-BCT dated February 18, 2019 of the Minister of Industry and Trade;

d) Clause 3 Article 7 and Clause 3 Article 10 of Circular No. 22/2020/TT-BCT dated September 9, 2020 of the Minister of Industry and Trade.

3. Electricity inspector cards issued to public officials and public employees working in competent authorities specializing in the field of electricity shall expire from the effective date hereof. Electricity inspector cards issued to personnel of DSOs, TSOs, electricity wholesalers, and electricity retailers before the effective date hereof shall remain effective for the remaining duration.

4. Difficulties that arise during the implementation of this Circular should be reported to Electricity Regulatory Authority of Vietnam or the Ministry of Industry and Trade./.

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