Decree No. 18/2025/NĐ-CP provides detailed regulations on certain provisions of the Electricity Law related to electricity trading activities and situations ensuring power supply.

DECREE

Detailed regulations on certain provisions of the Electricity Law related to electricity trading activities and power supply assurance situations Based on the Government Organization Law dated June 19, 2015;

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Based on the Law Amending and Supplementing Certain Provisions of the Government Organization Law and the Local Administration Organization Law dated November 22, 2019;

Based on the Electricity Law dated November 30, 2024;

The Government issues this Decree detailing certain provisions of the Electricity Law related to electricity trading activities and power supply assurance situations.

At the proposal of the Minister of Industry and Trade;

This Decree details certain provisions of the Electricity Law, including:

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

1. Clause 6 of Article 44 regarding the guarantee measures and quality of electric energy for the buyer in electricity purchase contracts for purposes other than household use; conditions for concluding electricity purchase contracts for household use.

2. Clause 7 of Article 48 regarding recording meter readings.

3. Clause 5 of Article 53 regarding urgent situations threatening the ability to ensure power supply.

This Decree applies to agencies, organizations, and individuals engaged in electricity activities and using electricity in Vietnam.

Article 2. Applicability

GUARANTEE MEASURES, QUALITY OF ELECTRIC ENERGY, CONDITIONS FOR CONCLUDING ELECTRICITY PURCHASE CONTRACTS FOR HOUSEHOLD USE, RECORDING METER READINGS

Chapter II

Article 3. Guarantee of electricity purchase contract performance

1. The electricity buyer who is a customer with an average monthly consumption of 1,000,000 kWh or more as registered in the electricity purchase contract shall be responsible for implementing guarantee measures before the contract takes effect. In cases where the average monthly consumption registered in the electricity purchase contract is below this level but the actual average monthly consumption over the last 12 months is 1,000,000 kWh or more, the buyer shall cooperate with the seller to amend and supplement the signed electricity purchase contract to include content on guarantee measures and implement guarantee measures before the amended and supplemented contract takes effect. Annually, the seller and buyer shall agree on the value of the guarantee corresponding to the actual average monthly consumption over the previous 12 months.

2. The value of the guarantee for contract performance shall be agreed upon by the buyer and seller within the range of 10 to 15 days' worth of electricity charges, based on the average monthly consumption registered in the electricity purchase contract or the actual average monthly consumption over the last 12 months and the applicable normal time-of-use electricity tariff.

3. The methods, forms, effectiveness of guarantees, rights, and obligations in guaranteeing the contract shall be specifically agreed upon by the parties in the electricity purchase contract; it is encouraged to implement bank guarantees.

4. Regulations on guaranteeing the performance of electricity purchase contracts do not apply to customers using electricity for the purpose of supplying power to government agency offices, public service units, armed forces units, political organizations, and political-social organizations.

2. The value of the guarantee for the performance of the power purchase contract shall be agreed upon by the electricity buyer and seller within a range of 10 to 15 days' worth of electricity charges, calculated based on the average monthly electricity consumption registered in the power purchase contract or the average actual electricity consumption of the last 12 months and the normal hourly electricity rate applied.

3. The measures, forms, effectiveness of the guarantee, rights, and obligations regarding the guarantee in the power purchase contract shall be specifically agreed upon by the parties in the power purchase contract; it is encouraged to implement the bank guarantee measure.

4. The provisions on the guarantee for the performance of the power purchase contract shall not apply to customers using electricity for the purpose of supplying power to the offices of state agencies, public service units, armed forces units, political organizations, and political-social organizations.

Article 4. Obligations to ensure the quality of electric power for electricity purchasers outside residential purposes

1. The electricity purchaser shall be responsible for ensuring that their electrical equipment meets the requirements for the quality of electric power according to the technical standards for electricity issued by the Minister of Industry and Trade.

2. An electricity purchaser who uses electricity for production and business with its own substation or with a maximum usage capacity of 40 kW or more over three consecutive meter reading cycles shall be responsible for:

a) Registering load profiles and technical characteristics of electrical equipment with the electricity seller;

b) Ensuring that the power factor cosφ ≥ 0.9 at the point where the electricity measuring device is installed under conditions where the power system ensures the quality of electric power according to the regulations of the Minister of Industry and Trade. In cases where the power factor cosφ < 0.9, the electricity purchaser must purchase additional reactive power on the electricity seller's power system in accordance with Article 5 of this Decree;

c) Ensuring technical standards regarding harmonic waves, voltage fluctuations, and voltage flicker according to the regulations on transmission systems, distribution systems, and electricity metering issued by the Minister of Industry and Trade.

3. If the electricity purchaser has the ability to inject reactive power into the power system and the electricity seller has a need to purchase reactive power, both parties may negotiate and conclude agreements on the purchase and sale of reactive power through contracts.

4. If the electricity purchaser requests a higher quality of electric power than that specified by the Ministry of Industry and Trade, the purchaser and seller may agree and specify detailed requirements regarding the quality of electric power in the electricity purchase and sale contract.

Article 5. Implementation of the Purchase and Sale of Reactive Power

1. An electricity purchaser who uses electricity for production and business with its own substation or with a maximum usage capacity registered in the electricity purchase and sale contract of 40 kW or more and a power factor cosφ < 0.9 must purchase reactive power. The method for determining the power factor cosφ is stipulated in Clause 2 of this Article.

In cases where the electricity purchaser has a maximum usage capacity registered in the electricity purchase and sale contract below 40 kW but has a maximum actual usage capacity of 40 kW or more over three consecutive meter reading cycles, the electricity purchaser falls within the category required to purchase reactive power from the next meter reading cycle following the three cycles mentioned above. The electricity purchaser is responsible for renegotiating the electricity purchase and sale contract with the seller to comply with the provisions of Clause 2 of Article 4 of this Decree.

2. The power factor cosφ used to determine the purchase of reactive power by the electricity purchaser is calculated based on meter readings taken during one meter reading cycle as prescribed in Item 1 of the Appendix attached to this Decree.

3. In cases where the electricity purchaser signs a Contract for multiple electricity meters at one location supplied by the same line, the active energy is the total active energy consumption of all meters and the reactive energy is the total reactive energy consumption of all meters.

4. In cases where the electricity purchaser uses electricity for other purposes in addition to production and business, the determination of the power factor cosφ is as follows:

a) When there is a separate meter for the portion of electricity used for production and business, the purchase of reactive power applies only to this purpose;

b) When there is no separate meter for the portion of electricity used for production and business, but only a common meter, if the power factor cosφ < 0.9, the electricity purchaser must purchase reactive power for the portion of electricity used for production and business. The portion of electricity used for production and business is determined by subtracting the amount of electricity used for other purposes, calculated based on the agreed usage capacity and time of electrical equipment serving other purposes as stipulated in the electricity purchase and sale contract.

5. The cost of purchasing reactive power is the amount of money the electricity purchaser must pay to the seller to compensate for additional costs incurred due to exceeding the specified reactive power limit, calculated according to the formula prescribed in Item 2 of the Appendix attached to this Decree.

6. The electricity purchaser must pay the cost of purchasing reactive power concurrently with the cost of purchasing active energy. The handling of overdue payments for reactive power purchases is carried out similarly to the handling of overdue payments for active energy purchases.

7. In cases where the electricity seller fails to ensure the quality of electricity as specified by the Ministry of Industry and Trade, the electricity purchaser does not have to purchase reactive power when the power factor cosφ < 0.9.

Article 6. Conditions for entering into electricity purchase and sale contracts for living purposes

1. Organizations and individuals when proposing to enter into electricity purchase and sale contracts for living purposes must ensure the following conditions:

a) The subject proposing to enter into the contract on behalf of the electricity buyer is the legal representative or authorized agent of the electricity buyer to conclude the contract;

b) The subject proposing to enter into the contract on behalf of the electricity seller is the legal representative or authorized agent of the retail electricity supplier meeting the needs of the electricity buyer to conclude the contract;

c) The subjects participating in the proposal to enter into the contract must meet the conditions for the civil transaction to be valid under the Civil Code. In cases where a person lacks capacity for civil acts, the legal representative of that person shall be the subject participating in the proposal to enter into the contract;

d) When the electricity buyer consists of multiple households sharing one contract, the contracting subject of the electricity buyer is the representative of the shared households signing the contract and having a written authorization from other shared households. The contract must clearly state the number of shared households (with a list attached) and the electricity selling price applied according to the laws on electricity. The authorization shall be carried out in accordance with the laws on civil matters;

đ) When the electricity buyer is a tenant renting a house for residence, the contracting subject of the electricity buyer is the owner of the house or the tenant authorized in writing by the owner of the house. In this case, the house owner commits to paying the electricity bill in the event that the authorized contracting subject of the tenant does not fulfill the payment obligation;

e) At one registered electricity purchasing location, if the electricity buyer is a single household, only one contract may be concluded;

2. The electricity buyer shall prepare a written application or electronic message with equivalent legal value, as prescribed by law, to propose the conclusion of an electricity purchase and sale contract for living purposes, and submit one set of the application to the electricity seller in the case of a written application. The application for concluding an electricity purchase and sale contract includes the following documents and materials:

a) Application for concluding an electricity purchase and sale contract for living purposes;

b) Personal identification number of the legal representative or authorized agent of the electricity buyer established by the National Population Database. In cases where it cannot be retrieved from the National Population Database, a copy of the citizen identity card or citizen identity card or ID card or a certificate confirming residential information of the electricity buyer's representative containing the residential information of the household at the electricity purchasing location or one of the following documents: Certificate of ownership of housing; certificate of land use rights (on land with housing); decision on housing allocation; housing purchase contract; lease agreement with a term of one year or more or other documents proving the right to own, manage, and use the electricity purchasing location for a term of one year or more for registration of electricity purchase;

3. The electricity seller must conclude the contract and supply electricity to the electricity buyer within seven working days from the date when all parties comply with the provisions of Clause 1 and Clause 2 of this Article.

Article 7. Recording Electricity Consumption Meter Readings

1. For electricity purchases and sales for residential purposes, the electricity seller shall record the meter readings once a month on the agreed date specified in the electricity purchase and sale contract, except in cases of force majeure posing a risk to worker safety as stipulated in the electricity purchase and sale contract. The recording time may be moved forward or backward by one day from the agreed date or according to the agreement in the electricity purchase and sale contract.

2. For electricity purchases and sales for non-residential purposes, the electricity buyer and seller may agree on the number of times meter readings are recorded each month. In case of disagreement, the frequency of meter reading shall be determined based on the average registered electricity consumption in the electricity purchase and sale contract as follows:

a) Less than 50,000 kWh/month, record the meter reading once a month;

b) From 50,000 to 100,000 kWh/month, record the meter reading twice a month;

c) More than 100,000 kWh/month, record the meter reading three times a month.

3. If the actual average monthly electricity consumption of the electricity buyer for non-residential purposes over the last three months exceeds or falls below the corresponding consumption thresholds applicable under points a, b, and c of Clause 2 of this Article, the electricity seller and buyer may agree to adjust the frequency of meter readings.

4. For electricity buyers using less than 15 kWh/month, the meter reading cycle shall be agreed upon by both parties.

5. For wholesale electricity purchases and sales, the recording of meter readings shall be agreed upon in the contract.

6. The electricity seller must ensure the accuracy of the recorded meter readings.

Chapter III

EMERGENCY SITUATIONS ENDANGERING THE ABILITY TO ENSURE ELECTRICITY SUPPLY

ENDANGERING THE CAPABILITY TO GUARANTEE ELECTRICITY SUPPLY

Article 8. Emergency Situations Endangering the Capability to Ensure Electricity Supply

1. Occurrence or potential occurrence of power imbalance between electricity generation sources and load leading to the need to stop or reduce electricity supply as determined by the National Power System Dispatch Unit in the Power System Operation Methods.

2. Occurrence or potential occurrence of insufficient electricity generation capacity to meet load requirements leading to the need to stop or reduce electricity supply as determined by the National Power System Dispatch Unit in the Power System Operation Methods.

3. Situations involving loss of power generation availability, transmission system failures, sudden increases in load demand resulting in power imbalance between generation sources and load.

Chapter IV

EFFECTIVE DATE

Article 9. Effective Date

1. This Decree takes effect from the date of signature.

2. Provisions regarding electricity purchase and sale contracts for residential purposes set forth in Article 11 of Decree No. 137/2013/NĐ-CP, amended and supplemented pursuant to Article 8 of Decree No. 104/2022/NĐ-CP, and provisions concerning the implementation of electricity purchase and sale contracts, electricity quality, and meter reading of electricity meters set forth in Articles 12, 15, and 17 of Decree No. 137/2013/NĐ-CP shall cease to be effective from the date this Decree takes effect.

3. For electricity purchase and sale contracts signed before the date this Decree takes effect, they shall continue to be implemented according to the signed contracts. Customers who have fulfilled their contractual obligations under Decree No. 137/2013/NĐ-CP as stipulated in Clause 4 of Article 3 of this Decree may request the electricity seller to amend the electricity purchase and sale contract in accordance with this Decree./.