Circular No. 16/2023/TT-BCT guides on electricity purchase and sale contracts for residential purposes

CIRCULAR

Guidelines on electricity purchase and sale contracts for residential purposes

Pursuant to the Electricity Law dated December 3, 2004; and the Law Amending and Supplementing Certain Provisions of the Electricity Law dated November 20, 2012;

Based on Decree No. 96/2022/NĐ-CP dated November 29, 2022 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Industry and Trade;

Pursuant to Decree No. 137/2013/NĐ-CP dated October 21, 2013 of the Government detailing the implementation of certain provisions of the Electricity Law and the Law Amending and Supplementing Certain Provisions of the Electricity Law; Decree No. 08/2018/NĐ-CP dated January 15, 2018 of the Government amending some Decrees related to investment conditions under the management of the Ministry of Industry and Trade; Decree No. 17/2020/NĐ-CP dated February 5, 2020 of the Government amending and supplementing some provisions of Decrees related to investment conditions under the management of the Ministry of Industry and Trade; Decree No. 104/2022/NĐ-CP dated December 21, 2022 of the Government amending and supplementing some provisions of Decrees related to the submission and presentation of household registration books and temporary residence certificates when performing administrative procedures and providing public services;

At the proposal of the Director of the Electricity Regulatory Authority;

The Minister of Industry and Trade issues this Circular guiding electricity purchase and sale contracts for residential purposes.

Article 1. Scope of Regulation

This Circular guides certain contents of electricity purchase and sale contracts for residential purposes and promulgates electricity purchase and sale contracts for residential purposes according to a model.

Article 2. Applicability

1. Retail electricity supplier (hereinafter referred to as the Seller).

2. Customer using electricity for residential purposes (hereinafter referred to as the Buyer).

3. Other relevant agencies, organizations, and individuals.

Article 3. Form electricity purchase and sale contract for residential purposes

1. Electricity purchase and sale contracts for residential purposes must be in writing in paper form (this contract shall be made in two copies of equal validity, each party holding one copy) or electronic data (for electronic data, the Buyer may access and download from the website of the Seller). The language used in the contract is Vietnamese.

The parties may agree to use additional ethnic languages of Vietnam or foreign languages. In case of discrepancies between the Vietnamese version and the ethnic language version of Vietnam or the foreign language version, the version that is more favorable to consumers shall take precedence.

2. Electricity purchase and sale contracts for residential purposes must be implemented according to the model attached hereto.

Article 4. Subject signing the contract purchasing and selling electricity for residential purposes

1. The subject signing the contract of the Buyer is the representative of the Buyer who meets the conditions stipulated in Clause 1, Article 8 of Decree No. 104/2022/NĐ-CP dated December 21, 2022 of the Government amending and supplementing some provisions of Decrees related to the submission and presentation of household registration books and temporary residence certificates when performing administrative procedures and providing public services (hereinafter referred to as Decree No. 104/2022/NĐ-CP) and has submitted the application file for registering to purchase electricity for residential purposes as stipulated in Clause 2, Article 8 of Decree No. 104/2022/NĐ-CP to the Seller.

2. In cases where the Buyer consists of multiple households sharing electricity and signing one contract, the subject signing the contract of the Buyer is the representative of the shared households signing the contract and has a power of attorney from other shared households. Shared households must meet the conditions stipulated in Clause 1, Article 8 of Decree No. 104/2022/NĐ-CP. The contract must clearly state the number of shared households (with a list attached) and the electricity price applied according to the regulations on implementing electricity prices issued by the Ministry of Industry and Trade.

3. In cases where the Buyer is a tenant renting a house for living, the subject signing the contract of the Buyer is determined according to the regulations on implementing electricity prices issued by the Ministry of Industry and Trade.

4. The subject signing the contract of the Seller is the legal representative or authorized representative of the retail electricity supplier with a distribution network capable of supplying electricity to meet the needs of the Buyer.

Article 5. Term of electricity purchase and sale contracts for living purposes

The term of the contract shall be agreed upon by both parties. In case the specific term of the contract is not agreed upon by both parties, the term of the contract shall be calculated from the date of signing to the date of termination of the contract as prescribed by law.

Article 6. Implementation Organization

1. The Electricity Regulatory Authority shall be responsible for guiding, inspecting, and supervising the implementation of regulations on electricity purchase and sale contracts for living purposes throughout the country.

2. The Department of Industry and Trade shall be responsible for guiding, inspecting, and supervising the implementation of regulations on electricity purchase and sale contracts for living purposes within its management scope.

3. The seller of electricity shall be responsible for registering and re-registering electricity purchase and sale contracts for living purposes according to the model and general transaction conditions with competent state management agencies regarding consumer protection rights; publicly announcing the contract according to the model and general transaction conditions and complying with other relevant provisions under the Consumer Protection Law and implementing guidance documents.

Article 7. Effective Date

1. This Circular takes effect from October 16, 2023.

Circular No. 19/2014/TT-BCT dated June 18, 2014, issued by the Minister of Industry and Trade on the model of electricity purchase and sale contracts for living purposes and Circular No. 38/2022/TT-BCT dated December 30, 2022, abolishing Clause 1, Article 2 of Circular No. 19/2014/TT-BCT dated June 18, 2014, issued by the Minister of Industry and Trade on the model of electricity purchase and sale contracts for living purposes shall cease to be effective from the date this Circular takes effect.

2. Contracts signed before the date this Circular takes effect shall continue to be implemented until the expiration date stated in the contract. During the implementation period, both parties must still comply with the provisions of the Electricity Law, implementing guidance documents, and may agree to supplement new contents suitable for the contract according to the model attached to this Circular. If either party or both parties have the need to sign a new contract before the expiration date, both parties shall consider and agree to sign a new contract. The signing of a new contract shall be carried out in accordance with the provisions of this Circular.

3. During the implementation process, if the regulatory legal documents referred to in this Circular and the attached appendices are amended, supplemented, or replaced by new documents, the new documents shall apply.

4. During the implementation of this Circular, if there are any difficulties, related organizations and individuals shall be responsible for requesting the Electricity Regulatory Authority to take the lead in researching and proposing the Minister of Industry and Trade to amend and supplement this Circular appropriately.

Appendix

ELECTRICITY PURCHASE AND SALE CONTRACT

FOR LIVING PURPOSES ACCORDING TO THE MODEL

(Issued together with Circular No. 16/2023/TT-BCT dated August 31, 2023, of the Minister of Industry and Trade)

SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness

…, day … month … year …

CONTRACT

PURCHASE AND SALE OF ELECTRICITY FOR LIVING PURPOSES

Contract number...

Pursuant to the Civil Code on November 24, 2015;

Pursuant to the Electricity Law dated December 3, 2004; and the Law Amending and Supplementing Certain Provisions of the Electricity Law dated November 20, 2012;

Based on the Consumer Protection Law dated November 17, 2010;

Pursuant to Decree No. 137/2013/NĐ-CP dated October 21, 2013 of the Government detailing the implementation of certain provisions of the Electricity Law and the Law Amending and Supplementing Certain Provisions of the Electricity Law; Decree No. 08/2018/NĐ-CP dated January 15, 2018 of the Government amending some Decrees related to investment conditions under the management of the Ministry of Industry and Trade; Decree No. 17/2020/NĐ-CP dated February 5, 2020 of the Government amending and supplementing some provisions of Decrees related to investment conditions under the management of the Ministry of Industry and Trade; Decree No. 104/2022/NĐ-CP dated December 21, 2022 of the Government amending and supplementing some provisions of Decrees related to the submission and presentation of household registration books and temporary residence certificates when performing administrative procedures and providing public services;¹

Based on the electricity purchasing needs of the Buyer,

We include:

Seller (Party A): ....................................................................................

Main Office Address:...

Phone: …

- Number: …

Tax code: ...

Account number: ...At Bank: ...

Represented by Mr./Ms.: ...Position: ...

Pursuant to the Power of Attorney No.: ...dated...month...year...

of Mr./Ms....position.....²

[Both parties agree that the Electricity Company/Electricity Supply Unit...is a unit subordinate to Party A, established and operating legally in accordance with the law, will represent Party A to implement, manage, and execute the contract and has the following specific information:

Tax code: ...

Address: …

- Number: …

Account number: ...At Bank: ...]³

Buyer (Party B)⁴:..................................................................................

Address: …

Phone: …

- Number: …

Tax code⁵:.....................................................................................................

Account number: ...At Bank: ...⁶

Represented by Mr./Ms.⁷: ......................................................................................

Position (applicable to organizations): ...

ID/CCCD/passport number: ...Date of issue: ...Place of issue: ...

(Pursuant to the Power of Attorney No.: ...dated ........... month ...year ...of Mr./Ms. ...⁸ Position (applicable to organizations): ...)

[Number of households sharing: ...(specific list attached to this contract).]⁹

Both parties agree to sign an electricity purchase and sale contract for living purposes with the following contents:

Article 1. Specific contents

1. The two parties agree to apply THE GENERAL TERMS AND CONDITIONS attached hereto.

2. Electricity usage address: ...

3. Location for determining electricity quality: ...

4. Installation location of electricity metering equipment: ...

During the performance of this contract, the following persons may represent Party B to witness and sign the installation, removal, and replacement records of electricity metering equipment when Party A installs, removes, or replaces such equipment:

a) Subject signing the contract ▢;

b) Persons authorized by Party B, including: Another member with full civil capacity within Party B's household/family ▢; Other authorized person: ...

5. Meter reading date: ...

6. Payment form and deadline:

a) Apply flexibly one or more payment methods: Automatic deduction ▢; Electronic payment ▢; Bank transfer ▢; Collection point ▢; Other form: ...

b) Payment deadline: ... days from the date Party A first notifies Party B of payment for the billing period.

7. Notification and information exchange forms:

Apply flexibly one or more notification and information exchange methods (including late payment, power supply suspension or reduction, meter reading date change, installation, removal, and replacement of metering equipment, etc.) as follows: Email ▢; Telephone/SMS ▢; Messaging application ▢; Party A’s customer care application ▢; Other form: ...

For any information requests between the parties, if there is no other provision, the receiving party must respond with agreement or disagreement within seven days from the date of receipt of the request.

[8. The two parties agree that under this contract, payment vouchers for all payments according to the provisions of the contract will be issued by the Power Company/Electricity Company... to Party B, and Party B shall make payment to the Power Company/Electricity Company...]¹⁰

9. Penalty rate for breach of contractual obligations or total penalty for multiple breaches agreed upon by both parties:¹¹... percent of the value of the breached contractual obligation.

10. Both parties agree to choose one or more dispute resolution methods:¹²Negotiation ▢; Mediation ▢; Arbitration ▢; Court ▢.

Article 2. Additional Agreements¹³

.................................................................................................................................

.................................................................................................................................

Article 3. Implementation Provisions

1. This contract shall take effect from the date of ... month ... year ... [or from the date of signing the contract] until the date of ... month ... year ... [or until the contract terminates according to the agreement herein or as provided by law].¹⁴

2. During the performance period, either party may request termination, modification, or supplementation of the signed content in the contract, and must notify the other party at least fifteen days in advance to resolve together./.

THE GENERAL TERMS AND CONDITIONS

(Attached to the electricity purchase contract for residential purposes)

Article 1. Service Standards and Quality

1. Electricity Quality

a) Electricity quality is determined at the location agreed upon in the contract;

b) Voltage and frequency must comply with the provisions of Clause 1, Article 15 of Decree No. 137/2013/ND-CP dated October 21, 2013 of the Government detailing certain provisions of the Electricity Law and the Law Amending and Supplementing Certain Provisions of the Electricity Law (hereinafter referred to as Decree No. 137/2013/ND-CP).

2. Energy Metering

a) Electricity consumption is determined through the electricity metering equipment and the multiplier of the metering equipment. The multiplier is reflected in the installation, removal record of the metering equipment;

b) The electricity metering equipment must be calibrated in accordance with the law;

c) When installing, removing, or replacing the electricity metering equipment, a record must be established with Party B's confirmation consistent with the content agreed upon in Clause 4, Article 1 (Specific Contents) of the contract. The record can be in paper or electronic format.

Article 2. Electricity prices, payment methods, and deadlines

1. Meter reading

a) Party A shall record the meter reading on the designated day of each month, which may be shifted forward or backward by one day, except in cases of force majeure as provided for under civil law regulations. The meter reading date will be reflected as the last day of the meter reading cycle on the electricity bill;

b) During the performance of this contract, Party A has the right to agree to change the previously set monthly meter reading date through a notification document (in paper or electronic form) that complies with the specific contents agreed upon in Clause 7 of Article 1 (Specific Contents) of this contract, sent to Party B and must be agreed upon by Party B. The change in the meter reading date can only be implemented after both parties have reached an agreement. The agreement between the two parties is an integral part of this contract.

2. Electricity Prices

a) Retail electricity prices for residential use shall be implemented according to the provisions of the competent state agency. Party A is responsible for notifying Party B of Party A's retail electricity price before signing the contract and whenever there is a change in the retail electricity price;

b) When changes in electricity prices are approved by the competent state agency, the new prices shall be applied and the parties do not need to sign a new contract.

3. Payment of Electricity Charges: Party B shall pay the electricity charges to Party A once a month in Vietnamese currency according to the method and within the deadline agreed upon in Clause 6 of Article 1 (Specific Contents) of this contract and must pay the full amount indicated on the invoice.

4. In case Party B fails to pay the electricity charges and has been notified by Party A twice, then after 15 days from the first notification date, Party A has the right to stop supplying electricity. Party A must notify Party B of the time of stopping electricity supply at least 24 hours in advance and is not liable for damages caused by the stoppage of electricity supply if it has fulfilled its obligation to notify as stipulated in this provision. After Party B pays the electricity charges and completes all procedures to request resumption of electricity supply according to the laws on electricity (including the costs of resuming electricity supply), Party A must resume electricity supply according to the laws on electricity.

5. In case of disagreement regarding the amount of electricity charges to be paid, the parties shall proceed as follows:

a) Party B has the right to request Party A to review the amount of electricity charges to be paid. Upon receiving Party B's request, Party A is responsible for resolving it within 15 days;

b) In case Party B disagrees with Party A's resolution, Party B may resolve the dispute through the dispute resolution methods agreed upon by both parties in this contract;

c) During the period awaiting resolution of the amount of electricity charges to be paid, Party B still must pay the electricity charges based on the payment vouchers issued by Party A, and Party A cannot stop supplying electricity. If Party B fails to pay the electricity charges, Party A shall implement the stoppage and resumption of electricity supply according to the provisions of Clause 4 of this Article;

d) Party A must refund any overcharged electricity payments or collect any outstanding electricity payments from Party B (if applicable) after the resolution of the dispute regarding the amount of electricity charges to be paid.

Article 3. Rights and Obligations of Party A

1. Entering the management area of Party B to inspect, record meter readings, repair, and replace electricity measuring equipment located within the management area of Party B, and contacting Party B to resolve issues related to the contract. The dispatching of personnel into the management area of Party B must be carried out in accordance with relevant laws.

2. Ensuring the safe, stable, and reliable operation of the power grid and electrical equipment. Providing electricity to Party B in compliance with technical standards, service quality, and safety requirements, except in cases where the distribution network is overloaded as confirmed by the Electricity Regulatory Authority or authorized agency.

3. Implementing the cessation, reduction of electricity supply, and timely restoration of electricity supply to Party B in accordance with the provisions of the law.

4. Notifying Party B at least five days prior to the time of cessation or reduction of electricity supply by announcing on mass media for three consecutive days or through other agreed communication methods stipulated in Clause 7, Article 1 (Specific Contents) of this contract when there is a plan to cease or reduce electricity supply for maintenance, overhaul, construction, or installation of electrical facilities.

5. In case Party A has temporarily ceased electricity supply upon request of Party B, within seven days from the date of receiving Party B's notification of continued electricity usage, Party A must restore electricity supply to Party B after Party B has completed the procedures for requesting resumption of electricity supply in accordance with the law on electricity.

6. Party A is permitted to charge costs for ceasing and resuming electricity supply according to the method and level of such costs prescribed by the Ministry of Industry and Trade.

7. Within fifteen days from the date of receiving Party B's notification regarding any of the following: purpose of electricity use leading to changes in electricity rates; change in the number of registered shared users; change in living quota; or need to terminate the contract, Party A shall have the responsibility to inspect and implement amendments, supplements, or termination of the electricity purchase contract for living purposes as agreed in this contract or as provided by law. in accordance with the agreement in this contract or the provisions of the law.

8. Notifying Party B about the termination date of the contract in the form agreed upon in Clause 7, Article 1 (Specific Contents) of this contract at least seven working days before the contract ends.

9. Unilaterally terminating the contract when Party B does not use electricity for more than six consecutive months without prior notice to Party A, or when Party B no longer meets the conditions for signing an electricity purchase contract for living purposes as stipulated in Clause 1, Article 11 of Decree No. 137/2013/NĐ-CP (amended and supplemented by Clause 1, Article 8 of Decree No. 104/2022/NĐ-CP). The procedure and formalities for unilateral termination of the contract shall be carried out in accordance with the Civil Code.

10. Protecting Party B's information, and not collecting, using, or transferring Party B's information to third parties without Party B's consent in accordance with consumer protection laws and other relevant laws.

11. Warning about potential risks of unsafe electricity use that may affect the lives, health, and property of Party B or related parties, and informing Party B about measures to ensure safe electricity use in accordance with the law.

12. Other rights and obligations as prescribed by law.

Article 4. Rights and Obligations of Party B

1. Request Party A to ensure the quality of electricity at the agreed location in the contract; inspect the quality of electricity, the accuracy of the electricity metering equipment, the amount of electricity bill to be paid; promptly restore power supply after power outage.

2. Create favorable conditions for Party A to inspect, record the index of the electricity meter, repair, and replace the electricity metering equipment located within the area managed by Party B.

3. Immediately notify Party A when discovering that the electricity metering equipment is damaged or suspected of running inaccurately, or when abnormal phenomena that may cause power outage or endanger people and property are detected.

4. Notify Party A fifteen days in advance in case of changing the purpose of electricity usage leading to changes in electricity prices; immediately notify Party A when changing the number of shared households registered in the contract, changing the quota for living purposes, or having the need to terminate the contract.

5. Notify Party A five days prior to the date of the need to temporarily stop using electricity continuously for more than six months; immediately notify Party A when Party B no longer has legal ownership, management, or usage rights over the electricity usage location.

6. Be responsible for managing assets and ensuring safety for the electrical wiring from the point after the electricity meter to the place of electricity usage. Shall not arbitrarily provide electricity to other users.

7. Pay the monthly electricity bill fully and on time as stipulated in the contract.

8. Shall not arbitrarily remove or move the electricity metering equipment. When there is a need to move the electricity metering equipment to another location, it must obtain Party A's consent and bear all relocation costs.

9. Shall not steal electricity in any form. In case of acts of stealing electricity, Party B will be held responsible according to the provisions of the law on administrative violations or criminal law, and if causing other damages to Party A, shall compensate for such damages according to the provisions of the civil law.

10. Other rights and obligations as prescribed by law.

Article 5. Compensation for Damages and Contract Violation Penalties

1. Acts of Contract Violation

a) Acts of Violation by Party A

Failure to ensure the quality of electricity as stipulated in Article 1 (General Provisions) of this contract, except in cases of force majeure as prescribed by the civil law; recording incorrect indices of the electricity meter, calculating incorrectly the electricity charges in the invoice; when Party B submits a written request and meets the conditions for increasing the number of shared households but Party A does not implement the adjustment; other acts violating the laws on electricity purchase and sale.

b) Acts of Violation by Party B

Using electricity for purposes with higher rates than those agreed upon in the contract; delaying payment of electricity bills as prescribed by law; failing to notify Party A when reducing the number of shared households; other acts violating the laws on electricity purchase and sale.

2. Compensation for Damages

a) When Party A commits acts of violation as specified in point a, Clause 1 of this Article and causes damage to Party B, compensation shall be provided;

b) When Party B commits acts of violation as specified in point b, Clause 1 of this Article and causes damage to Party A, compensation shall be provided;

c) The amount of compensation shall be determined according to the method prescribed in the regulations on inspection of electric power activities and electricity usage, resolution of disputes in electricity purchase and sale contracts issued by the Ministry of Industry and Trade.

3. Contract Violation Penalties

In addition to the compensation for damages stipulated in Clause 2 of this Article, the parties shall be subject to contract violation penalties as follows:

a) When Party A commits acts of violation as specified in point a, Clause 1 of this Article and causes damage to Party B, Party A shall be penalized for breach of contract obligations with the penalty level agreed upon by both parties as stipulated in Clause 9 of Article 1 (Specific Contents) of this contract;

b) When Party B commits acts of violation as specified in point b, Clause 1 of this Article and causes damage to Party A, Party B shall be penalized for breach of contract obligations with the penalty level agreed upon by both parties as stipulated in Clause 9 of Article 1 (Specific Contents) of this contract.

Article 6. Dispute Resolution

1. The two parties commit to fulfilling the agreements stipulated in the contract; the party that breaches will be dealt with according to the agreement set forth in this contract and the provisions of the law.

2. In case of disputes arising, the two parties shall resolve the disputes through the method agreed upon by both parties in Clause 10, Article 1 (Specific Contents) of this contract in accordance with the laws on consumer protection and electricity./.