Circular No. 27/2013/TT-BCT stipulates on inspection of electricity activities and electricity usage, and resolution of disputes in power purchase and sale contracts.

CIRCULAR

Regulations on inspecting power activities and electricity usage, resolving disputes in electricity purchase and sale contracts

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Pursuant to Decree No. 95/2012/NĐ-CP dated November 12, 2012, of the Government, detailing the functions, tasks, powers, and organizational structure of the Ministry of Industry and Trade;

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. 137/2013/NĐ-CP dated October 21, 2013, issued by the Government, detailing the implementation of certain provisions of the Electricity Law and the Law Amending and Supplementing Certain Provisions of the Electricity Law;

Pursuant to Decree No. 134/2013/NĐ-CP dated October 17, 2013 of the Government stipulating administrative penalties for violations in the field of power, safety of hydropower dams, energy conservation and efficiency;

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

The Minister of Industry and Trade issues this Circular regulating inspections of power activities and electricity usage, and resolving disputes in electricity purchase and sale contracts.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular stipulates on:

1. Procedures for inspecting power activities in the following areas: specialized power consulting, power generation, power transmission, power distribution, wholesale electricity sales, retail electricity sales; inspecting compliance with legal provisions on electricity usage, protection of power engineering facilities and power grids.

2. Standards, duties, and powers of Power Inspectors.

3. Procedures for resolving disputes in electricity purchase and sale contracts.

Article 2. Applicability

This Circular applies to organizations and individuals participating in power activities, electricity usage, and other related activities.

Article 3. Explanation of Terms

In this Circular, the following terms shall be understood as follows:

1. Compensation for damages is the act of the violator compensating for losses caused by their violation to the aggrieved party. The value of compensation for damages includes the actual and direct loss suffered by the aggrieved party due to the violation, and the direct benefit that the aggrieved party would have received had there been no violation. The party seeking compensation for damages must prove the loss, the extent of the loss caused by the violation, and the direct benefit that the aggrieved party would have received had there been no violation.

2. Power units operating regionally are power transmission units, power distribution units, wholesale electricity sales units, and retail electricity sales units operating within the scope of two provinces or more.

3. Administrative violations in the field of power are acts defined in Decree No. 134/2013/NĐ-CP dated October 17, 2013 of the Government stipulating administrative penalties for violations in the field of power, safety of hydropower dams, energy conservation and efficiency.

4. Power Purchase Agreement including electricity purchase and sale contracts for residential, production, business, service, public administration, irrigation water pumping purposes, and wholesale electricity sales contracts subject to pricing regulations by competent state authorities.

5. Force Majeure Event refers to an event occurring objectively and unpredictably, and which cannot be overcome despite the application of all necessary and feasible measures.

Article 4. Powers to inspect power activities and electricity usage

1. Power Inspectors of the Ministry of Industry and Trade, Power Inspectors of the Department of Industry and Trade under provincial People's Committees, and Power Inspectors of specialized departments under district, city district, town, and provincial city People's Committees (hereinafter referred to as District-level Power Inspectors) have the authority to inspect compliance with legal provisions on power activities, electricity usage, and electrical safety.

2. Power Inspectors of wholesale electricity sales units and retail electricity sales units have the authority to inspect compliance with legal provisions on electricity usage.

3. Power Inspectors of power transmission units and power distribution units have the authority to inspect compliance with legal provisions on protecting the safety of power engineering facilities and power grids.

Article 5. Competence to resolve disputes in electricity purchase and sale contracts

Clause 1. The Department of Industry and Trade shall have the competence to resolve disputes in electricity purchase and sale contracts with voltage below 110kV if the parties have not initiated civil litigation procedures or commercial arbitration and have agreed to request the Department of Industry and Trade to resolve the dispute.

Clause 2. The Electricity Regulatory Authority shall have the competence to resolve disputes in electricity purchase and sale contracts with voltage of 110kV or higher if the parties have not initiated civil litigation procedures or commercial arbitration and have agreed to request the Electricity Regulatory Authority to resolve the dispute.

Chapter II

ELECTRICITY INSPECTOR

Article 6. Tasks and powers of the Ministry of Industry and Trade's Electricity Inspector

The Ministry of Industry and Trade's Electricity Inspector shall perform inspection tasks and powers nationwide, including:

Point 1. Inspect the performance of obligations of electricity units and electricity consumers as stipulated in Clause 2, Article 39, Clause 2, Article 40, Clause 2, Article 41, Clause 2, Article 43, Clause 2, Article 44, Clause 2, Article 45, Clause 2, Article 46, Clause 2, Article 47 of the Electricity Law and Clause 17, Article 1 of the Law Amending and Supplementing Certain Provisions of the Electricity Law.

Point 2. Inspect the implementation of legal provisions on electrical safety.

Point 3. Identify and prevent prohibited acts as prescribed in Article 7 of the Electricity Law.

Point 4. Inspect the performance of duties of the Department of Industry and Trade's Electricity Inspector, county-level Electricity Inspector, and Electricity Inspector of electricity units.

Point 5. Require electricity units to stop or reduce power supply, and electricity users to cut off or reduce power consumption in cases where there is a risk threatening human life and equipment safety.

Point 6. Request organizations and individuals related to provide information, documents, and evidence relevant to the inspection and handling work.

Point 7. Prepare Inspection Records; Administrative Violation Records; Temporary Seizure Records of Evidence and Means of Violation in cases of detecting electricity theft.

Article 7. Tasks and powers of the Department of Industry and Trade's Electricity Inspector and county-level Electricity Inspector

The Department of Industry and Trade's Electricity Inspector and county-level Electricity Inspector shall perform inspection tasks and powers within their respective management areas, including:

Point 1. The Department of Industry and Trade's Electricity Inspector inspects the performance of obligations of electricity units and electricity consumers as stipulated in Clause 2, Article 39, Clause 2, Article 40, Clause 2, Article 41, Clause 2, Article 43, Clause 2, Article 44, Clause 2, Article 45, Clause 2, Article 46, Clause 2, Article 47 of the Electricity Law and Clause 17, Article 1 of the Law Amending and Supplementing Certain Provisions of the Electricity Law.

Point 2. Inspect the implementation of legal provisions on electrical safety.

Point 3. Identify and prevent prohibited acts as prescribed in Article 7 of the Electricity Law.

Point 4. The Department of Industry and Trade's Electricity Inspector has the right to inspect the performance of duties of county-level Electricity Inspector and Electricity Inspector of electricity units.

Point 5. Require electricity units to stop or reduce power supply, and electricity users to cut off or reduce power consumption in cases where there is a risk threatening human life and equipment safety.

Point 6. Request organizations and individuals related to provide information, documents, and evidence relevant to the inspection and handling work.

Point 7. Prepare Inspection Records; Administrative Violation Records; Temporary Seizure Records of Evidence and Means of Violation in cases of detecting electricity theft.

Article 8. Tasks and powers of the Electricity Inspector of electricity units

The Electricity Inspector of transmission units, distribution units, wholesale electricity units, and retail electricity units shall perform inspection tasks and powers within their respective management areas as follows:

Point 1. Tasks and powers of the Electricity Inspector of transmission units and distribution units

a) Inspect the implementation of legal provisions on protecting electrical equipment, power facilities, and electrical safety;

b) Inspect and promptly prevent violations of electrical safety as prescribed in Article 7 of the Electricity Law;

c) Promptly notify the unit directly managing the operation of the transmission grid and distribution grid in case of risks threatening human life and equipment safety;

d) Prepare Inspection Records; Administrative Violation Records.

Point 2. Tasks and powers of the Electricity Inspector of wholesale electricity units and retail electricity units

a) Inspect the performance of electricity purchase and sale contracts by electricity buyers;

b) Inspect safe, economical, and efficient electricity usage;

c) Inspect electricity cuts and reductions in electricity consumption by electricity users;

d) Inspect and promptly prevent prohibited acts in electricity usage as prescribed in Article 7 of the Electricity Law;

đ) Require electricity users to cut off or reduce electricity consumption in cases where there is a risk threatening human life and equipment safety;

e) Require electricity buyers to provide necessary information and documents for inspection purposes;

g) Prepare Electricity Usage Inspection Records; Administrative Violation Records; Temporary Seizure Records of Evidence and Means of Violation in cases of detecting electricity theft.

Article 9. Standards for Electricity Inspectors

1. Electricity Inspectors of the Ministry of Industry and Trade must meet the following standards:

a) Hold a bachelor's degree or higher in electrical engineering;

b) Have at least five years of work experience in state management of electricity activities and electricity usage, or in technical management and electricity business operations;

c) Have been trained in state management knowledge and legal knowledge regarding electricity activities and electricity usage;

d) Be proficient in electrical procedures, technical standards, safety standards, regulations on electricity inspection activities and electricity usage; have the ability to research, identify, analyze, synthesize, and propose solutions according to the functions of inspection work;

đ) Be in good health, possess good moral qualities, have a sense of responsibility, be honest, fair, and impartial.

2. Electricity Inspectors of the Department of Industry and Trade and Electricity Inspectors at the district level must meet the following standards:

a) Hold an associate degree or higher in electrical engineering;

b) Have at least three years of work experience in state management of electricity activities and electricity usage, or in technical management and electricity business operations;

c) Have been trained in state management knowledge and legal knowledge regarding electricity activities and electricity usage; be assigned to a specialized department responsible for monitoring electricity activities at the time of applying for an Electricity Inspector card;

d) Be proficient in electrical procedures, technical standards, safety standards, regulations on electricity inspection activities and electricity usage; have the ability to research, identify, analyze, synthesize, and propose solutions according to the functions of inspection work;

đ) Be in good health, possess good moral qualities, have a sense of responsibility, be honest, fair, and impartial.

3. Electricity Inspectors of transmission companies, distribution companies, wholesale electricity companies, and retail electricity companies must meet the following standards:

a) Hold a secondary vocational degree or higher in electrical engineering for Electricity Inspectors of transmission companies and distribution companies; hold a secondary vocational degree or higher in electrical engineering or be an electric technician with a rank of 5/7 or higher for Electricity Inspectors of wholesale electricity companies and retail electricity companies;

b) Have at least three years of work experience in grid management, electricity business operations;

c) Have been trained in legal knowledge regarding electricity activities and electricity usage;

d) Be proficient in standards, procedures, technical standards, safety standards, regulations on electricity activities and electricity usage; have the ability to research, identify, analyze, synthesize, and propose solutions according to the functions of inspection work;

đ) Be in good health, possess good moral qualities, have a sense of responsibility, be honest, fair, and impartial.

Article 10. Training and Examination of Electricity Inspectors

1. The Electricity Regulatory Authority organizes training, examination, and issues Certificates of Meeting Examination Requirements for Electricity Inspectors of the Ministry of Industry and Trade, Electricity Inspectors of the Department of Industry and Trade, Electricity Inspectors of the Vietnam Electricity Corporation, and Electricity Inspectors of regional and provincial electricity units.

2. The Department of Industry and Trade organizes training, examination, and issues Certificates of Meeting Examination Requirements for District-level Electricity Inspectors and Electricity Inspectors of local electricity units.

3. Examinations are conducted every five years. The Certificate of Meeting Examination Requirements is valid for a period of five years.

4. The costs of training and examination for Electricity Inspectors shall be borne by the managing agency or unit of the person applying for an Electricity Inspector card in accordance with financial accounting regulations.

Article 11. Authority to Issue Power Inspector Cards

1. The Director of the Electricity Regulatory Agency shall issue Power Inspector cards for the Ministry of Industry and Trade's Power Inspectors, Provincial Industry and Trade Departments' Power Inspectors, Vietnam Electricity Group's Power Inspectors, and Power Inspectors of electricity units operating regionally or provincially.

2. The Director of the Provincial Industry and Trade Department shall issue Power Inspector cards for district-level Power Inspectors and Power Inspectors of electricity units within the provincial territory.

Article 12. Procedures and Formalities for Issuing and Revoking Power Inspector Cards

1. Procedures and formalities for issuing Power Inspector cards

a) The application dossier for requesting issuance of Power Inspector cards for the Ministry of Industry and Trade, Provincial Industry and Trade Departments, Vietnam Electricity Group, and Power Inspectors of electricity units operating regionally or provincially shall be submitted to the Electricity Regulatory Agency;

b) The application dossier for requesting issuance of district-level Power Inspector cards and Power Inspectors of electricity units within the provincial territory shall be submitted to the Provincial Industry and Trade Department;

c) The application dossier for the first issuance of Power Inspector cards includes (one set):

- A request letter for issuance of Power Inspector cards;

- A valid copy of the professional qualification certificate or decision on wage grade increase for workers;

- A certificate confirming successful examination as a Power Inspector;

- Two photographs measuring 2 x 3 cm;

- A work experience report certified by the relevant agency or unit.

d) The application dossier for requesting issuance of Power Inspector cards when the card has expired includes (one set):

- A request letter for issuance of Power Inspector cards;

- A certificate confirming successful examination as a Power Inspector;

- Two photographs measuring 2 x 3 cm.

đ) Within five working days from the date of receiving complete and valid dossiers, the Electricity Regulatory Agency and the Provincial Industry and Trade Department shall have the responsibility to issue Power Inspector cards. In case of non-issuance, they must provide a written response with reasons within three working days.

2. Procedures and formalities for reissuing Power Inspector cards in cases of loss or damage

a) Power Inspectors must report in writing to their direct managing unit head the reason for the loss or damage of the card;

b) The application dossier for reissuing Power Inspector cards includes (one set):

- A request letter for reissuance of the card from the managing unit of the Power Inspector;

- An application letter for reissuance of the card from the Power Inspector;

- Two photographs measuring 2 x 3 cm;

- The Power Inspector card in cases where the card is damaged.

c) Within five working days from the date of receiving complete and valid dossiers, the issuing authority shall have the responsibility to check the retained files and reissue Power Inspector cards according to the validity period of the old card.

3. Revocation of Power Inspector cards

a) Power Inspector cards shall be revoked in the following cases:

- When the Power Inspector card has expired;

- When the Power Inspector transfers to other work or moves to another area;

- When the Power Inspector is criminally processed or administratively penalized in the field of electricity;

- When the Power Inspector is disciplined by the managing unit of the Power Inspector and recommended for revocation of the card;

- When the Power Inspector no longer meets the criteria for a Power Inspector.

b) The managing unit of the Power Inspector shall have the responsibility to revoke and destroy the Power Inspector card in the cases stipulated in point a Clause herein and report in writing to the issuing authority within ten days from the date of revocation.

Article 13. Model and Validity Period of the Electricity Inspector Card

1. The Electricity Inspector Card has dimensions of 58 mm x 90 mm as specified in Appendix 1 attached to this Circular and is valid for use for five years.

2. The pink card is issued to Electricity Inspectors of the Ministry of Industry and Trade, Electricity Inspectors of the Department of Industry and Trade, and Electricity Inspectors at the district level.

3. The orange card is issued to Electricity Inspectors of power units for inspecting electricity usage.

4. The light yellow card is issued to Electricity Inspectors of power units for inspecting the protection of electrical equipment, power facilities, and electrical safety.

Article 14. Responsibilities of Electricity Inspectors

Electricity Inspectors are responsible under the law for their actions while performing inspection duties. In cases where Electricity Inspectors violate regulations, they may be subject to disciplinary action, administrative penalties in the field of electricity, or criminal prosecution according to the law, and their Electricity Inspector Cards may be revoked in accordance with point a, Clause 3, Article 12 of this Circular. If damage is caused, compensation must be provided according to the law.

Chapter III

INSPECTION OF ELECTRICITY ACTIVITIES AND USAGE

Article 15. Forms of Inspection

Inspection of electricity activities and usage is conducted in the following forms:

1. Planned inspection is a form of inspection that is notified in advance to power units and organizations or individuals using electricity.

2. Unannounced inspection is a form of inspection conducted without prior notification when requested by competent state management agencies, power units, or when signs of violation of laws on electricity activities and usage are discovered.

Article 16. Principles of Inspection of Electricity Activities and Usage

1. Electricity Inspectors only conduct inspections upon being assigned tasks. When discovering acts with signs of violations, they have the right to conduct unannounced inspections but must promptly report to their direct supervisors.

2. During inspections, the inspecting party must organize an inspection team or group with a team leader or inspection group leader, among which there must be at least one Electricity Inspector. Electricity Inspectors are responsible for presenting their Electricity Inspector Cards and informing the inspected party about the inspection content.

3. The inspection must be carried out in the presence of a representative from the inspected party.

In case the representative from the inspected party is absent, the Electricity Inspector must invite at least two witnesses with full civil capacity or local government representatives or area police officers to witness the inspection.

4. Upon discovering acts of electricity theft, Electricity Inspectors have the right to take necessary measures to protect the scene before presenting their Electricity Inspector Cards and must bear responsibility under the law for their actions.

5. Electricity Inspectors must prepare an Inspection Report detailing all inspected contents as prescribed; prepare an Administrative Violation Report when discovering administrative violations in the field of electricity; prepare a Temporary Seizure Report of Evidence and Means of Violation when discovering acts of electricity theft as prescribed.

6. Electrical measuring devices used by Electricity Inspectors during inspections must be calibrated and verified as required.

Article 17. Procedures for inspecting electricity activities and electricity usage

1. Planned Inspection

a) The inspection plan must be approved by the head of the state management agency or the electricity unit and sent to relevant organizations and individuals.

b) The inspecting party must notify the inspected party at least five working days before the inspection date. The notification must be signed by an authorized person and specify the content, location, time, and composition of the inspection team.

c) Upon receiving the notification, the inspected party must prepare adequately according to the requirements and assign a responsible person to work with the inspection team. The inspected party has the right to refuse the inspection if the inspecting party does not comply with the content of the notification.

2. Surprise Inspection

Surprise inspections shall be conducted in the following cases:

a) Inspections carried out based on tasks assigned by the Electricity Inspector Management Agency. Such inspections shall be conducted in accordance with Clause 2 and Clause 3 of Article 16 of this Circular.

In case of discovering violations, the Electricity Inspector must take immediate measures to stop them. If the situation exceeds their authority, they must immediately report to the authorized person for resolution.

b) Inspections initiated upon self-discovery of violations

The Electricity Inspector may conduct inspections when conditions stipulated in Clause 2, Clause 3, and Clause 4 of Article 16 of this Circular are met. If the conditions are not met, they must immediately inform the responsible person to organize timely inspections.

c) In cases where it is necessary to enter residential premises for inspections between 10:00 PM and 6:00 AM, the inspecting party must coordinate with local police or local authorities to conduct inspections in accordance with regulations.

Article 18. Contents of Inspection of Electricity Activities

1. Inspection of compliance with obligations prescribed in the Electricity Law, the Law Amending and Supplementing Certain Provisions of the Electricity Law, and guiding documents for implementation; inspection of maintenance of operating conditions for electricity activities as specified in the issued Operating License.

2. Inspection of electricity quality

a) Voltage;

b) Frequency;

c) Other electricity quality standards as prescribed for the power grid, if necessary.

3. Inspection of electricity metering equipment, including electric meters, electricity measuring devices, and accompanying accessories; integrity of seals on the electricity metering system; records of meter installation and removal, and related documents.

4. Inspection of protection of electrical equipment, power facilities, and electrical safety.

5. Inspection of compliance with obligations under the electricity purchase and sale contract.

6. Inspection of compliance with regulations on stopping or reducing electricity supply levels.

Article 19. Contents of Inspection of Electricity Usage

1. Inspection of voltage.

2. Inspection of power and power factor

Power and power factor are determined through direct or indirect measurements using other measuring devices at the time of inspection. For peak hour power, three measurements are taken during the inspection period, and the highest value from these three measurements is recorded.

3. Inspection of the electricity metering system and related documents, including electric meters, voltage transformers for measurement, current transformers for measurement, wiring diagrams, integrity of seals on the electricity metering system; records of meter installation and removal, and related documents.

4. Inspection of compliance with electrical safety regulations.

5. Inspection of compliance with obligations recorded in the electricity purchase and sale contract and other obligations prescribed in the Electricity Law, the Law Amending and Supplementing Certain Provisions of the Electricity Law, and guiding documents for implementation.

Article 20. Inspection to Detect Electricity Theft

1. In cases where inspection detects electricity theft, the Power Inspector shall be responsible for preparing the Inspection Report and Administrative Violation Report. The Inspection Report must clearly state the following contents:

a) Description of the electricity theft behavior and related parameters for calculating and handling electricity usage violations;

b) Diagram of the electricity theft;

c) Other evidence such as theft tools, photographs, video recordings, other electronic data (if available).

2. In cases where items or tools used for electricity theft are temporarily seized, the Power Inspector must prepare a Temporary Seizure Report for Items and Tools Involved in Violations according to the model prescribed in Appendix 3 issued together with this Circular and seal these items and tools (the sealing paper must have signatures of the Power Inspector, representatives of the inspected party, and other relevant parties as prescribed).

3. The Power Inspector shall notify the electricity supplier to implement the suspension of power supply.

Article 21. Inspection of Electrical Energy Measurement Systems

The inspection of electrical energy measurement systems (electric meters, current transformers, voltage transformers, seals, wiring diagrams) shall be carried out as follows:

1. In cases where electric meters are missing, electrical energy measurement systems are damaged, displaced, or show abnormal signs, the Power Inspector must record the current status and propose measures for handling in the Inspection Report.

2. The removal of electrical energy measurement devices for inspection in cases where the electrical energy measurement system is damaged or shows abnormal signs must comply with the following regulations:

a) Notify the electricity supplier about the removal of the electrical energy measurement system so that the supplier is aware and sends personnel to carry it out;

b) Must maintain the seal of the calibration organization. Other electrical measuring devices and seals must be collected, packaged, and sealed (the sealing paper must have signatures of the Power Inspector, representatives of the electricity buyer and seller);

c) Prepare the Inspection Report, which must clearly record the time and location of the inspection, detailed description of the current status, abnormal manifestations of the electrical energy measurement system, and reasons for removing the electrical energy measurement system.

3. All related parties are responsible for witnessing the inspection and verification of the electrical energy measurement devices of the calibration organization. If they are absent during the inspection without a valid reason, they still must recognize the inspection results.

4. The method for determining the amount of electrical energy in cases where electric meters are missing, the electrical energy measurement system operates inaccurately, or stops functioning shall be implemented according to Clause 2, Clause 3, and Clause 4 of Article 20 of 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.

Article 22. Inspection Reports

1. Inspection Reports are prepared according to the model prescribed in Appendix 3 issued together with this Circular. Inspection Reports are made in three copies, the inspecting party retains two copies, and the inspected party retains one copy. The report must bear a stamp and sequential numbering for management; all used Inspection Reports, including those with errors or canceled ones, must be managed and retained fully as prescribed.

2. The Inspection Report must clearly state the names of the participants in the inspection, representatives of the inspected party, and witnesses (if any). If the inspected party does not agree with the content recorded in the Inspection Report, they have the right to record their comments at the end of the report.

3. The Inspection Report must have signatures from the Power Inspector, representatives of the inspected party, and witnesses (if any).

In cases where the inspected party refuses to sign the report, the person preparing the report must clearly state the reason why the inspected party did not sign the report. This report still has legal validity for processing if it has signatures of at least two witnesses with full civil capacity or representatives of local authorities or area police.

4. In cases where multiple violations of regulations on electricity activities or electricity usage are detected, the Inspection Report must clearly, fully, and accurately describe each violation.

Article 23. Administrative Violation Record

1. In cases where acts violating administrative regulations in the field of electricity are discovered, in addition to establishing the Inspection Record in accordance with Article 22 of this Circular, the Electricity Inspector must establish the Administrative Violation Record in accordance with the model prescribed in Appendix 3 issued together with this Circular and transfer the record to the authority competent to impose penalties as provided for.

2. In cases where acts of stealing electricity as stipulated in Clause 9, Article 12 of Decree No. 134/2013/NĐ-CP dated October 17, 2013 of the Government on administrative penalties for violations in the field of electricity, safety of hydropower dams, and efficient energy use are discovered, the Electricity Inspector shall be responsible for establishing the Administrative Violation Record, the determination of the volume of stolen electricity and the corresponding compensation amount shall be calculated in accordance with Article 32 of this Circular.

3. The Administrative Violation Record shall be established in three copies, the inspecting party retains one copy, the inspected party retains one copy, and one copy is sent to the authority competent to impose penalties. The record shall be stamped and numbered for management purposes. Used records, including those containing errors or cancellations, must be managed and retained fully in accordance with the provisions.

Article 24. Transfer of Inspection Records and Violation Files in Electricity Activities and Electricity Usage

1. Inspection Records established by Electricity Inspectors of electricity units

a) In cases where the electricity buyer does not violate the electricity purchase and sale contract, the Inspection Record shall be kept at the electricity unit;

b) In cases where the electricity buyer violates the electricity purchase and sale contract, the Inspection Record and evidence of violation shall be kept at the electricity unit for handling.

2. Inspection Records established by Electricity Inspectors of the Ministry of Industry and Trade, Departments of Industry and Trade, and Electricity Inspectors of district-level departments

a) In cases where the electricity buyer or seller does not violate the electricity purchase and sale contract, the Inspection Record shall be kept at the Ministry of Industry and Trade or Department of Industry and Trade or specialized department under the People's Committee of the district;

b) In cases where there are violations of the provisions set out in Article 13 of Decree No. 137/2013/NĐ-CP dated October 21, 2013 of the Government detailing the implementation of certain articles of the Electricity Law and the Law amending and supplementing certain articles of the Electricity Law, the Inspection Record must be transferred to the party that has been violated for handling within two working days from the date the record is completed.

3. In cases where there are administrative violations in the field of electricity, the Inspection Record and Administrative Violation Record must be transferred to the authority competent to impose administrative penalties within two working days from the date the record is completed, while sending copies to related electricity units for their knowledge.

4. In cases where the violation indicates criminal law violations, the case files and objects, means of violation shall be transferred to the investigation agency for handling in accordance with the law.

Chapter IV

RESOLUTION OF DISPUTES IN ELECTRICITY PURCHASE AND SALE CONTRACTS

Article 25. Principles for Resolving Disputes in Electricity Purchase and Sale Contracts

1. The resolution of disputes in electricity purchase and sale contracts must comply with the provisions of the law.

2. The resolution of disputes in electricity purchase and sale contracts must be based on the agreement reached between the electricity buyer and seller in the signed contract.

3. The Electricity Regulatory Agency, Departments of Industry and Trade shall only resolve disputes in cases where both parties fail to reach an agreement through negotiation and agree to request the Electricity Regulatory Agency, Department of Industry and Trade to resolve the dispute.

Article 26. Procedure for Resolving Disputes in Electricity Purchase and Sale Contracts

1. Prior to requesting the Electricity Regulatory Authority or the Department of Industry and Trade to resolve disputes, the parties must conduct self-negotiation.

2. In case self-negotiation fails, one party or both parties have the right to submit a written request to the Electricity Regulatory Authority or the Department of Industry and Trade to resolve the dispute within their jurisdiction.

3. Documents for Requesting Resolution of Disputes

a) A written request for resolution of disputes;

b) Minutes of meetings or other documents proving that the dispute cannot be resolved through self-negotiation;

c) An authentic copy of the electricity purchase and sale contract;

d) Power business operation license (if applicable);

đ) Documents proving that the request for resolution of disputes is based on facts and is lawful;

e) Relevant documents and evidence related to the case.

4. Within no more than five working days from the date of receiving the request for resolution of disputes, the Electricity Regulatory Authority or the Department of Industry and Trade shall notify the relevant parties about accepting the dispute for processing, require the parties to provide documents and materials, inspect the actual situation (if necessary), and complete the dossier. If the request for resolution of disputes is rejected, the Electricity Regulatory Authority or the Department of Industry and Trade must respond in writing and specify the reasons.

5. Within no more than twenty working days from the date of receiving valid documents, the Electricity Regulatory Authority or the Department of Industry and Trade shall organize mediation meetings and issue conclusions on resolving disputes.

For complex cases, organizing mediation meetings and issuing conclusions on resolving disputes shall not exceed forty working days from the date of receiving valid documents.

6. If one of the two parties does not agree with the conclusion of the Electricity Regulatory Authority or the Department of Industry and Trade, they have the right to refer the matter to commercial arbitration or file a lawsuit at the court for resolution.

Article 27. Responsibilities of the Parties Involved in Resolving Disputes in Electricity Purchase and Sale Contracts

1. Responsibilities of the Parties with Disputes in Electricity Purchase and Sale Contracts

a) Ensuring the truthfulness of the documents and information provided to the dispute resolution authority;

b) Cooperating and creating conditions for the dispute resolution authority to collect full information and inspect the actual situation (if necessary);

c) Implementing measures within their capacity or as required by the dispute resolution authority to minimize losses.

2. Responsibilities of the Authority for Resolving Disputes in Electricity Purchase and Sale Contracts

a) Issuing an objective conclusion based on the dossier for resolving disputes and evidence provided by the parties during the dispute resolution process;

b) Respecting agreements not contrary to the law and the right to self-negotiation between the parties with disputes in electricity purchase and sale contracts throughout the resolution process;

c) In case of discovering signs of law violations outside their jurisdiction, they must report and transfer the dossier to the competent authority for resolution according to the law.

Article 28. Penalties for Breach of Contractual Obligations and Compensation for Damages

1. The level of penalty for breach of contractual obligations is based on the agreement in the contract but shall not exceed 8% of the value of the breached contractual obligation.

In case the parties have no agreement on penalties for breach, the aggrieved party only has the right to demand compensation for damages.

In case the parties have an agreement on penalties for breach, the aggrieved party has the right to apply both the penalty mechanism and compel compensation for damages.

2. The level of compensation for damages due to breach of contractual obligations is based on the agreement in the contract; if there is no agreement in the contract, it shall be implemented according to the provisions of the law.

3. Methods for determining the value of the breached contractual obligation, the value of compensation for damages for each act of breach are stipulated in Articles 29, 30, 31, and 32 of this Circular; if other damages occur, the two parties may negotiate.

4. The deadline for paying compensation for damages is agreed upon by the two parties but shall not exceed fifteen days from the date of acceptance of the compensation claim. If beyond this period, the breaching party must bear interest on late payment on the amount of compensation for damages according to the law.

5. Within fifteen days from the date of receipt of the notification requesting payment of fines, the breaching party must pay the fine for breach of contract to the aggrieved party; if beyond this period, the breaching party must bear interest on late payment on the amount of the fine according to the law.

Article 29. Method for calculating the value of the breached contractual obligation due to the breach by the electricity seller

1. Delaying electricity supply according to the agreed term in the signed power purchase contract

a) Compensate the electricity buyer for the direct loss that the buyer must bear due to the breach;

b) The amount of contractual breach penalty shall be agreed upon by both parties in the contract and based on the value of the breached contractual obligation.

The value of the breached contractual obligation is determined by the agreed electricity production volume in the contract and calculated based on the registered capacity, the time of registered daily electricity purchase, the price of electricity recorded in the power purchase contract, and the number of delayed days from the committed supply date to the actual supply date, using the following formula:

T = A x g x n

Where:

- T: Value of the breached contractual obligation (VND);

- A: Daily electricity consumption determined based on the parameters registered in the power purchase contract (KWh/day);

- g: Electricity price (VND/KWh) for compensation, calculated based on the highest price in the signed power purchase contract;

- n: Number of delayed days.

2. Selling electricity without ensuring quality or sufficient quantity as stipulated in the signed contract causing damage to the electricity buyer

a) Compensate the electricity buyer for the actual and direct loss that the buyer must bear due to the seller's breach and the direct benefit that the buyer should have enjoyed if there had been no breach;

b) The amount of contractual breach penalty shall be agreed upon by both parties in the contract and based on the value of the breached contractual obligation.

The value of the breached contractual obligation is determined by the agreed electricity production volume in the contract and calculated based on the registered capacity, the electricity price recorded in the power purchase contract, and the time of selling electricity without ensuring quality or sufficient quantity, using the following formula:

T = P x t x g

Where:

- T: Value of the breached contractual obligation (VND);

- P: Registered capacity in the power purchase contract (kW);

- t: Time of selling electricity without ensuring quality or sufficient quantity (hours);

- g: Electricity price (VND/KWh) for compensation, calculated based on the highest price in the signed power purchase contract.

3. Recording incorrect electricity consumption index, calculating incorrect invoices causing damage to the electricity buyer

a) The electricity seller must refund the excess electricity payment collected from the buyer plus interest agreed upon by both parties in the contract;

b) Contractual breach penalty agreed upon by both parties in the power purchase contract.

Article 30. Method for calculating the value of the breached contractual obligation due to the breach by the electricity buyer

1. Delaying the performance of the signed contract causing damage to the electricity seller

a) Compensate the electricity seller for the direct loss that the seller must bear due to the breach;

b) Contractual breach penalty agreed upon by both parties in the power purchase contract and based on the value of the breached contractual obligation.

The value of the breached contractual obligation is determined by the agreed electricity production volume in the contract and calculated based on the registered capacity, the time of registered daily electricity purchase, the electricity price recorded in the power purchase contract, and the number of delayed days from the committed performance date to the actual performance date, using the following formula:

T = A x g x n

Where:

- T: Value of the breached contract (VND);

- A: Daily electricity consumption determined based on the parameters registered in the power purchase contract (capacity multiplied by the time of daily electricity purchase);

- g: Electricity price (VND/KWh) for compensation, calculated based on the highest price in the signed power purchase contract;

- n: Number of delayed days.

2. Using electricity for purposes with higher prices than those agreed in the contract

a) Compensate the electricity seller for the price difference during the period of violating the purpose of electricity use plus interest on the price difference agreed upon by both parties in the contract. In cases where the violation period cannot be clearly determined, it will be calculated as 12 months;

b) Contractual breach penalty agreed upon by both parties in the power purchase contract.

3. Exceeding the registered capacity in the load profile chart recorded in the power purchase contract during peak hours

a) The electricity buyer must compensate the seller for losses caused to the seller;

b) The amount of contractual breach penalty shall be agreed upon by both parties in the contract and based on the value of the breached contractual obligation.

The value of the breached contractual obligation is determined using the following formula:

T = Domestic air passenger transport service on regular basic economy classP x t x g

Where:

- T: Value of the breached contract (VND);

- DP is the excess capacity during peak hours, which is the maximum usage capacity minus the registered capacity in the load profile chart at the corresponding time;

- t: Actual number of hours of violation (if less than one hour, it is counted as one hour);

- g: Peak-hour electricity selling price according to the pricing regulations of the competent state authority during the compensation period (VND/KWh).

4. Failing to promptly cut off or reduce electricity consumption when notified by the electricity seller in cases stipulated in Article 27 of the Electricity Law

a) The electricity buyer must compensate the seller for losses caused to the seller;

b) Contractual breach penalty agreed upon by both parties in the contract.

5. Late payment for electricity

a) Handling late payment for electricity shall be carried out in accordance with Clause 2 and Clause 4 of Article 23 of the Electricity Law;

b) Contractual breach penalty agreed upon by both parties in the contract.

Article 31. Compensation for Damage in Cases of Selling Electricity at Incorrect Prices as Prescribed by Competent Authorities

The electricity seller must refund to the electricity buyer the excess amount collected plus interest as agreed upon in the contract.

In cases where the incorrect pricing period cannot be clearly determined, it shall be calculated based on a period of 12 months.

Article 32. Compensation for Damage in Cases of Electricity Theft

1. The violator must compensate the aggrieved party with an amount equivalent to the value of the lost electric energy production caused by the act of electricity theft, calculated according to the following formula:

T = A_BT x g = (A_SD : Actual electricity delivered to the grid at the delivery point in the payment month._HĐ) x g

T: Compensation amount (VND);

A_BT: Electric energy quantity to be compensated (kWh);

A_SD: Electric energy quantity consumed by electrical devices during the violation period (kWh);

A_HĐ: Electric energy quantity reflected on the payment bill during the violation period (kWh);

g: Electricity price (VND/kWh) for compensation purposes, calculated based on the highest rate applicable to the actual purpose of electricity usage according to the electricity tariff in effect at the time of discovery.

In cases where the inspected party uses stolen electricity for multiple purposes, the electricity price for calculating compensation shall be determined based on the highest rate from the electricity tariff for the various purposes of the inspected party.

2. Method for Determining the Quantity of Consumed Electric Energy (A_SD) as follows:

a) Method for Determining the Quantity of Consumed Electric Energy Based on the Measured Error of the Electricity Meter

In cases where the violator uses only one method of tampering with the meter to steal electricity and this error is determinable through calibration, the quantity of consumed electric energy is calculated based on the highest measured error of the electricity meter determined by an independent calibration agency and applied according to the following formula:

s: The largest error among the meter calibration values (as a percentage);

A_bqn: Daily average electric energy consumption during the billing period with the highest daily average consumption within the violation period.

If the violation period cannot be determined, it will be calculated from the most recent electricity inspection date or from the last replacement, repair, or regular inspection of the electricity measurement system up to the discovery date but not exceeding 12 months.

n: Number of days for compensation (days).

b) Method for Determining the Quantity of Consumed Electric Energy for Other Methods of Electricity Theft or When the Method Specified in Point a of This Clause Cannot Be Applied

Step 1: Determine Power

Based on the actual inspection results to determine the highest power value that can be identified using the following methods:

Method 1: Total power measured at the time of inspection or detection of the violation.

Method 2: The highest power value in the load profile registered in the electricity purchase and sale contract.

Method 3: Power of the electrical equipment listed in the equipment power registration table in the electricity purchase and sale contract (for electricity purchase and sale contracts serving production, business, and service purposes).

Method 4: Power of the electrical equipment recorded in the Inspection Report (the manufacturer's label power rating may be used).

Step 2: Determine Consumption

- For cases where power is determined using Method 1 or Method 2, apply the following formula to calculate the quantity of consumed electric energy:

A_SD = P x t_tb x n

Where:

P: Total power (kW) measured at the time of inspection or detection of the violation or the highest power (kW) in the load profile registered in the electricity purchase and sale contract.

organize credit institutions, foreign bank branches are responsible for organizing the implementation of this Circular._tb: Average daily usage time of all electrical devices (hours/day) determined based on the Inspection Report or the registered load profile; if undeterminable, refer to Item 10 of Appendix 2 issued together with this Circular.

n: Number of days for compensation (days)

- For cases where power is determined using Method 3 or Method 4, apply the following formula to calculate the quantity of consumed electric energy:

ASD = (P₁ x t₁ + P₂ x t₂ +….+ P_i x t_i ) x n

Where:

"5. The pre-tax weighted average cost of capital i (%) is determined according to the formula below:₁kWp, kW₂, …P_i: Power (kW) of each electrical device listed in the equipment power registration table in the electricity purchase and sale contract or power (kW) of each electrical device recorded in the Inspection Report.

organize credit institutions, foreign bank branches are responsible for organizing the implementation of this Circular.₁1. Inspection₂, …t_i: Usage time of each device per day (hours/day), determined based on the Inspection Report; if undeterminable, refer to Appendix 2 issued together with this Circular.

n: Number of days for compensation (days)

- For individuals or organizations using electricity for residential purposes, the calculation can be based on the electricity bill according to the following formula:

A_SD = A_bqn x n

Where:

A_bqn: Daily average electric energy consumption during the billing period with the highest daily average consumption within the 12-month period immediately preceding the violation period.

n: Number of days for compensation (days).

3. The number of days for compensation (n) specified in Clause 2 of this Article shall be determined as follows:

a) Calculated from the date of the violation act until the date of discovery, excluding periods of justified power disconnection and non-use.

b) If undeterminable according to the provisions of Point a of this Clause, the number of days for compensation shall be calculated from the most recent electricity inspection date or from the last replacement, repair, or regular inspection of the electricity measurement system up to the discovery date, but not exceeding 12 months, excluding periods of justified power disconnection and non-use.

c) For cases of electricity theft using magnets or direct tapping, the number of days for compensation is 12 months, excluding periods of justified power disconnection and non-use.

4. In addition to compensating the aggrieved party for the value of the lost electric energy production caused by the act of electricity theft, the violator must also bear the costs for repairing, calibrating, or replacing damaged measuring equipment caused by the violation.

Chapter V

MANAGEMENT OF CASE FILES AND EVIDENCE, VIOLATION TOOLS IN ELECTRICITY ACTIVITIES AND ELECTRICITY USE

Article 33. Documents and evidence related to violations of electricity activities and electricity usage

1. Documents and evidence related to violations of electricity activities include:

a) Inspection records of electricity activities, administrative violation records; Temporary detention records for evidence and means of violation in cases of detecting electricity theft and accompanying evidence and means of violation (if any);

b) Photographs, video recordings, electronic data recording and describing violations of electricity activities (if any);

c) Calculation statements for compensation and fines for violations of laws on electricity activities;

d) Other relevant documents, materials, and objects.

2. Documents and evidence related to violations of electricity usage include:

a) Electricity usage inspection records, administrative violation records (if any);

b) Electricity metering equipment inspection records (if any), calibration records of electricity metering equipment;

c) Diagrams of electricity theft, photographs, video recordings, electronic data recording and describing violations of electricity usage (if any);

d) Calculation statements for compensation and fines for violations of regulations on electricity usage;

đ) Temporary detention records for evidence and means of violation in cases of detecting electricity theft and accompanying evidence and means of violation (if any);

e) Removed electricity metering equipment (if any);

g) Other relevant documents, materials, and objects.

Article 34. Management of inspection documents for electricity activities, electricity usage, and electrical safety

1. The agency or unit managing Electricity Inspector shall be responsible for issuing inspection records and managing documents, establishing and managing the following registers: Register for tracking issuance and statistics of inspection records; Register for managing documents of violations of electricity activities, electricity usage, and electrical safety. These registers must be numbered and stamped with cross-seal.

2. The transfer and receipt of documents and evidence and means of violation must be clearly recorded with date, month, year, place of issuance, place of receipt, and signed off in the Transfer Register. The Transfer Register must be numbered and stamped with cross-seal.

3. The final handling agency or organization is responsible for retaining documents of violations of electricity activities, electricity usage, and electrical safety. The management period for documents of violations of electricity activities, electricity usage, and electrical safety shall be implemented according to the provisions of the law.

Chapter VI

IMPLEMENTATION

Article 35. Sample inspection records and decision forms

Appendix 3 attached hereto provides sample inspection records and decision forms for use during inspections and penalties for violations in the electricity sector. Related samples not specified in this Circular shall be applied pursuant to Decree No. 81/2013/NĐ-CP dated July 19, 2013 of the Government detailing certain provisions and measures for implementing the Law on Administrative Violation Handling.

Article 36. Responsibilities of the Electricity Regulatory Authority and Department of Industry and Trade

1. The Electricity Regulatory Authority shall be responsible for:

a) Organizing guidance, inspection, and supervision of the implementation of regulations on

electricity activity inspection work and electricity usage by state management agencies

for electricity activities and electricity usage at local levels and power units;

b) Inspecting and supervising the issuance and recovery of Electricity Inspector cards by the Department of Industry and Trade.

2. The Department of Industry and Trade shall be responsible for organizing inspections and supervision of the implementation of regulations on electricity activity inspection work, electricity usage, and electrical safety by power units within the province.

Article 37. Reporting System

1. Power units within the provincial territory shall be responsible for submitting ad hoc, quarterly, and annual reports on electricity usage inspection work and electrical safety to the Department of Industry and Trade; in cases where necessary, they may report directly to the Electricity Regulatory Authority.

2. The Department of Industry and Trade shall be responsible for submitting ad hoc, quarterly, and annual reports on inspection work, handling violations of power activities, electricity usage, and electrical safety to the Electricity Regulatory Authority.

3. Vietnam Electricity Corporation shall be responsible for submitting ad hoc, quarterly, and annual reports on electricity usage inspection work and electrical safety to the Electricity Regulatory Authority.

4. The Electricity Regulatory Authority shall receive and compile ad hoc, quarterly, and annual reports on inspection work, handling violations of power activities, and electricity usage from the Departments of Industry and Trade and Vietnam Electricity Corporation to report to the Minister of Industry and Trade.

Article 38. Responsibility for Implementation

1. This Circular takes effect from December 15, 2013. Decision No. 31/2006/QD-BCN dated September 6, 2006, issued by the Minister of Industry regarding the Regulation on Inspection of Power Activities and Electricity Usage, Resolution of Electricity Purchase and Sale Contract Disputes, Decision No. 12/2007/QD-BCN dated March 6, 2007, issued by the Minister of Industry amending and supplementing certain provisions of the Regulation promulgated together with Decision No. 31/2006/QD-BCN, Circular No. 11/2011/TT-BCT dated March 30, 2011, issued by the Ministry of Industry and Trade amending and supplementing Article 10 of the Regulation on Inspection of Power Activities and Electricity Usage, Resolution of Electricity Purchase and Sale Contract Disputes promulgated together with Decision No. 31/2006/QD-BCN dated September 6, 2006, shall cease to be effective from the date this Circular takes effect.

2. Power Inspector cards issued prior to the effective date of this Circular shall continue to be valid until their expiration date as indicated on the card.

The Director of the Ministry's Office, the Director of the Ministry's Inspectorate, Heads of Departments, General Directors, Directors of the Ministry's affiliated agencies, People's Committees of provinces and centrally governed cities, and power units, organizations, and individuals using electricity shall be responsible for implementing this Circular./.