Decision No. 31/2006/QĐ-BCN on Issuing Regulations on Inspection of Electricity Activities and Electricity Usage, and Resolution of Disputes in Power Purchase Contracts

Pursuant to …;

Regarding the issuance of Regulations on Inspection of Electricity Activities and Electricity Usage, Resolution of Disputes in Power Purchase Contracts

and electricity usage, resolving disputes in power purchase and sale contracts

__________________________________

 

THE MINISTER OF INDUSTRY

On the basis of Decree No. 55/2003/NĐ-CP dated May 28, 2003 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Industry;

Pursuant to the Electricity Law dated December 3, 2004;

On the basis of Decree No. 105/2005/NĐ-CP dated August 17, 2005 of the Government detailing and guiding the implementation of certain provisions of the Electricity Law;

Pursuant to the proposal of the Director of the Electricity Regulatory Agency and the Head of the Legal Department,

DECISION:

Article 1. The attached Decision promulgates "Regulations on Inspection of Electricity Activities and Electricity Usage, Resolution of Disputes in Power Purchase Contracts."

Article 2. This Decision takes effect 15 days from the date of publication in the Official Gazette and replaces Decision No. 42/2002/QĐ-BCN dated October 9, 2002 of the Minister of Industry on the issuance of Regulations on Inspection of Electricity Supply and Usage, and Handling Violations in Power Purchase Contracts.

Article 3. AThe Heads of the Ministry's Office, Inspectorate, Department Heads, Bureau Directors under the Ministry, Provincial Industrial Departments of centrally governed cities, Heads of related agencies and organizations, and individuals participating in electricity activities and usage shall be responsible for implementing this Decision.

REGULATIONS

Inspection of electricity activities and electricity usage,

resolution of disputes in power purchase contracts

(Attached to Decision No. 31/2006/QĐ-BCN dated September 6, 2006 of the Minister of Industry)

These regulations stipulate the procedures and formalities for inspecting electricity activities in the fields of power generation, transmission, distribution, wholesale, retail, and electricity usage; resolving disputes in power purchase contracts applicable to organizations and individuals participating in electricity activities, electricity usage, and other related activities.

PART I

GENERAL PROVISIONS

Article 1. Scope and Applicability

Disputes in power purchase contracts in the competitive electricity market do not fall within the scope of application of these regulations.

Article 2. Authority to Inspect Electricity Activities, Electricity Usage, and Resolve Disputes in Power Purchase Contracts

1. Authority to Inspect Electricity Activities and Electricity Usage

a) Electricity inspectors of state management agencies regarding electricity activities and electricity usage have the authority to inspect compliance with legal provisions on electricity activities and electricity usage.

b) Electricity inspectors of wholesale electricity units and retail electricity units have the authority to inspect compliance with legal provisions on electricity usage.

c) Electricity inspectors of transmission electricity units and distribution electricity units have the authority to inspect compliance with legal provisions on the protection of safety of electricity construction works and power grids.

2. Provincial Industrial Departments

shall be responsible for resolving disputes in power purchase contracts when both parties to the contract cannot resolve them themselves but do not require referral to judicial authorities and have agreed to request the Provincial Industrial Department to resolve the dispute when it arises. In these regulations, the following terms are understood as follows:

Article 3. Definitions

Force majeure

1. Force Majeure Event refers to an objective event that cannot be foreseen or avoided despite the application of all necessary measures within the permitted capacity.

2. Electricity theft caught in the act refers to the act of illegally obtaining electricity without going through the meter, manipulating to alter the meter reading and other measuring devices, intentionally or colluding to record false meter readings, and other fraudulent acts of obtaining electricity discovered while being committed with clear evidence (scene, physical evidence of crime).

3. Acts violating the provisions on power purchase and sale are those acts prescribed in Clause 1 and Clause 2, Article 8 of Decree No. 105/2005/NĐ-CP dated August 17, 2005 of the Government detailing and guiding the implementation of certain provisions of the Electricity Law.

4. Administrative violations in the field of power are those acts prescribed in Decree No. 74/2003/NĐ-CP dated June 26, 2003 of the Government on administrative penalties in the field of electricity.

5. Selling at an incorrect price as determined by the competent authority is the act prescribed in Article 11 of Decree No. 169/2004/NĐ-CP dated September 22, 2004 of the Government on administrative penalties in the field of pricing.

6. Compensation for damages Compensation for damages caused by the violation

7. Power Purchase Agreement includes compensation for losses caused by the violation to the aggrieved party. The value of compensation for damages includes the actual and direct losses suffered by the aggrieved party due to the violation and the direct benefits that the aggrieved party would have received if there had been no violation. The party requesting compensation for damages must prove the loss, the extent of the loss caused by the violation, and the direct benefits that the aggrieved party would have received if there had been no violation.

8. Power units operating regionally includes power purchase and sale contracts for residential purposes, production, business, services, and other power purchase and sale contracts.

Chapter II

ELECTRICITY INSPECTOR

Article 4. Responsibilities and Powers of the Electricity Inspector of the Ministry of Industry

The Electricity Inspector of the Ministry of Industry performs inspection duties and powers nationwide, including:

1. Inspecting the fulfillment of obligations by electricity units and electricity customers 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 46, and Clause 2, Article 47 of the Electricity Law.

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

3. Identifying and preventing prohibited acts as prescribed in Article 7 of the Electricity Law.

4. Inspecting the performance of duties by provincial industrial electricity inspectors and electricity unit inspectors.

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

6. Requesting relevant organizations and individuals to provide necessary information, files, and evidence in a timely manner to serve inspection and handling work.

7. Preparing inspection records and administrative penalty records in the field of electricity when conducting inspections.

8. Cooperating with relevant agencies to verify, prepare records, and propose solutions to complaints and reports in the field of electricity activities and electricity usage.

Article 5. Duties and powers of the Electricity Inspector of the Industry Department

The Electricity Inspector of the Industry Department performs duties and powers to inspect within their management scope on the provincial territory, including:

1. Inspecting the fulfillment of obligations by electricity units and electricity customers 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 46, and Clause 2, Article 47 of the Electricity Law.

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

3. Identifying and preventing prohibited acts as prescribed in Article 7 of the Electricity Law.

4. Inspect the performance of the Electricity Inspector's tasks at electricity units.

5. Require electricity units to stop or reduce power supply, users to cut off or reduce electricity consumption in cases where there is a risk threatening human lives and equipment according to the law.

6. Request organizations and individuals related to provide necessary information promptly for inspection and handling work.

7. Preparing inspection records and administrative penalty records in the field of electricity when conducting inspections.

8. Cooperating with relevant agencies to verify, prepare records, and propose solutions to complaints and reports in the field of electricity activities and electricity usage.

Article 6. Duties and powers of the Electricity Inspector of electricity units

The Electricity Inspector of transmission units, distribution units, wholesale electricity units, retail electricity units performs duties and powers to inspect within their management scope.

1. Duties and powers of the Electricity Inspector of transmission units, distribution units

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

b) Timely notify the directly managing operation unit in case of discovering risks threatening human lives and equipment;

c) Prepare inspection records, administrative violation records in the field of electricity when conducting inspections.

2. Duties and powers of the Electricity Inspector of wholesale electricity units, retail electricity units

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

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

c) Inspect the cutting off of electricity or reduction of electricity consumption according to the law;

d) Inspect and promptly prevent prohibited acts in electricity activities and electricity usage;

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

e) Require electricity buyers to provide necessary information for inspection work;

g) Prepare inspection records, administrative violation records in the field of electricity when conducting inspections.

Article 7. Standards for Electricity Inspectors

1. Standards for Electricity Inspectors of the Ministry of Industry

The Electricity Inspector of the Ministry of Industry must meet the following standards:

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

b) Have at least five years of experience working in state management of electricity activities and electricity usage or technical and business management in the electricity sector;

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

d) Be proficient in electrical technical procedures, safety regulations, inspection work regulations for electricity activities and electricity usage; Possess 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. Standards for Electricity Inspectors of the Industry Department

The Electricity Inspector of the Industry Department must meet the following standards:

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

b) Have at least three years of experience working in state management of electricity activities and electricity usage or technical and business management in the electricity sector;

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

d) Be proficient in electrical technical procedures, safety regulations, inspection work regulations for electricity activities and electricity usage; Possess 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. Standards for Electricity Inspectors of electricity units

The Electricity Inspector of transmission units, distribution units, wholesale electricity units, retail electricity units must meet the following standards:

a) Have an associate degree in electrical engineering or higher for Electricity Inspectors of transmission units, distribution units; have a secondary degree in electrical engineering or a technical electrician level 5/7 or higher for Electricity Inspectors of wholesale electricity units, retail electricity units;

b) Have at least three years of experience working in grid management, distribution, and electricity business;

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

d) Be proficient in electrical standards, technical procedures, safety regulations, current regulations on electricity activities and electricity usage; Possess 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 8. Training and examination of Electricity Inspectors

1. The Electricity Regulatory Authority is responsible for organizing training and examination of Electricity Inspectors of the Ministry of Industry, Industry Departments, Vietnam Electricity Corporation, and electricity units operating regionally to implement the issuance of Electricity Inspector cards according to Article 10 of this Regulation.

2. The Industry Department is responsible for organizing training and examination of Electricity Inspectors of electricity units under its provincial jurisdiction to implement the issuance of Electricity Inspector cards according to Article 10 of this Regulation.

3. Periodic examinations are conducted every five years; Electricity Inspectors can only be issued cards if they meet the requirements in all examination periods.

Article 9. Authority to issue Electricity Inspector cards

1. The Director of the Electricity Regulatory Authority issues Electricity Inspector cards to Electricity Inspectors of the Ministry of Industry, Industry Departments, Vietnam Electricity Corporation, and electricity units operating regionally.

2. The Director of the Industry Department issues Electricity Inspector cards to Electricity Inspectors of electricity units under its provincial jurisdiction.

Article 10. Procedures for Issuing and Revoking Power Inspector Cards

1. Procedures and formalities for issuing Power Inspector cards

a) Applications for issuing Power Inspector Cards from the Ministry of Industry, Provincial Departments of Industry, Vietnam Electricity Corporation, and power units operating regionally shall be submitted to the Electricity Regulatory Authority.

b) Applications for issuing Power Inspector Cards from power units within the scope of a province shall be submitted to the Provincial Department of Industry.

c) The initial application for a Power Inspector Card shall include:

- A request letter for issuance of Power Inspector cards;

- A certified copy of the relevant academic certificate and the decision on increasing the worker's salary grade.

- A certificate confirming successful examination as a Power Inspector;

- Two photographs measuring 2 x 3 cm;

- A work history statement confirmed by the unit.

d) The application for issuing a Power Inspector Card when the card has expired shall include:

- 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.

d) Within five working days from the date of receiving complete and valid applications, the Electricity Regulatory Authority and the Provincial Department of Industry shall issue Power Inspector Cards. In case of non-issuance, they shall provide a written response within three working days, specifying the reasons.

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 for reissuing a Power Inspector Card shall include:

- An application form for reissuing a Power Inspector Card.

- Two photographs measuring 2 x 3 cm;

- A letter requesting reissuance of the card.

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

c) Within five working days from the date of receiving complete and valid applications, the issuing authority shall check the retained files and reissue the Power Inspector Card 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;

- Power Inspectors who have been criminally processed; administratively sanctioned 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;

- Those who no longer meet the criteria for Power Inspectors.

b) The managing unit of Power Inspectors shall be responsible for collecting the Power Inspector Card in cases stipulated in point a, Clause 3, Article 10 of this Regulation, and must complete reporting procedures and return the card to the issuing authority within ten days.

c) Based on reports from the managing unit of Power Inspectors, the issuing authority shall make a decision to revoke the Power Inspector Card.

Article 11. Format and Validity Period of the Power Inspector Card

1. The Power Inspector Card measures 58 mm x 90 mm as specified in Appendix 1 of this Regulation and is valid for five years.

2. Pink cards are issued to Power Inspectors of the Ministry of Industry and Power Inspectors of the Provincial Department of Industry.

3. Orange cards are issued to Power Inspectors of power units for inspecting electricity usage.

4. Light yellow cards are issued to Power Inspectors of power units for inspecting the protection of electrical equipment, power facilities, and electrical safety.

Article 12. Responsibilities of Power Inspectors

Power Inspectors are legally responsible for their actions while performing inspection duties. If a Power Inspector commits an act that violates regulations, they may be subject to disciplinary action, administrative penalties, or criminal prosecution according to the law, and their Power Inspector Card may be revoked according to point a, Clause 3, Article 10 of this Regulation. In case of damage caused, compensation must be provided according to the law.

Chapter III

INSPECTION AND PREPARATION OF INSPECTION REPORTS

ELECTRICITY OPERATIONS AND ELECTRICITY USE

Article 13. Forms of Inspection

Inspections of electricity operations and electricity use for organizations and individuals shall be conducted in the following forms:

1. Planned inspections are announced in advance to organizations and individuals engaged in electricity operations and electricity use.

2. Unannounced inspections are carried out without prior notice when requested by competent state management agencies, power units, or when there are signs of violations of laws on electricity operations and electricity use.

Article 14. Principles for inspecting electricity operations and electricity usage

1. Electricity inspectors may only conduct inspections when assigned by their superiors. In cases where violations are discovered, they are permitted to conduct surprise inspections but must promptly report to their direct supervisors.

2. When conducting inspections, the inspecting party must organize inspection teams or groups with a team leader or group leader, among which there must be at least one electricity inspector. The electricity inspector must present their electricity inspector card and inform the inspected party about the content of the inspection.

3. Inspections must be carried out in the presence of the inspected party. If the inspected party is absent, the electricity inspector must invite two witnesses who have full civil capacity and representatives of local authorities to witness the inspection.

4. Upon discovering acts of electricity theft in person, electricity inspectors are permitted to take necessary measures to protect the scene before presenting their inspector card and must bear responsibility under the law for their actions.

5. Electricity inspectors must prepare inspection records and fully document all contents of the inspection according to the model provided in Appendix 2, Appendix 3, or Appendix 4 of this Regulation. Within two working days, the record must be transferred to the electricity supplier or state management agency responsible for electricity operations and usage for resolution within their authority.

Article 15. Procedures and formalities for inspecting electricity operations and electricity usage

1. Planned Inspection

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

b) The inspecting party must notify the inspected party at least seven days before the inspection date. The notification must be signed by an authorized person, clearly stating the content, location, time of the inspection, and the 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 notification as prescribed.

2. Surprise Inspection

Surprise inspections shall be conducted in the following cases:

a) Inspect according to tasks assigned by the managing agency or unit of electricity inspectors

During the inspection, there must be at least two people involved and it must be conducted in accordance with Clause 2 of Article 14 of this Regulation.

In cases where violations are discovered, electricity inspectors must take immediate measures to stop them. If the situation exceeds their authority, they must immediately report to those with authority to resolve it.

b) Inspect upon self-discovery

If the electricity inspector meets the conditions stipulated in Clauses 2, 3, and 4 of Article 14 of this Regulation, they may conduct the inspection. If the conditions are not met, they must immediately report to the supervisor to organize the inspection promptly.

c) In cases of sudden inspections requiring entry into residential homes to check electricity usage from 10 PM the previous night to 6 AM the following morning, the inspecting party must coordinate with local police or local authorities and must strictly follow legal regulations.

Article 16. Inspection Record

1. Inspection records must be prepared according to the model specified in the appendix attached to this Regulation, stamped with a cross-stamp, and numbered for management purposes. The record is made in three copies, the inspecting party retains two copies, and the inspected party retains one copy. All used records, including those that are incorrect or canceled, must be managed and retained fully as prescribed.

2. In cases where violations of electricity operations or usage are discovered, the record must clearly, fully, and accurately describe each violation. 3. Inspection records must clearly state the names of those participating in the inspection, representatives of the inspected party, and witnesses (if any). If the inspected party disagrees with the content recorded in the inspection record, they have the right to note their comments at the end of the record.

4. Inspection records must contain signatures of the electricity inspector, representatives of the inspected party, and witnesses (if any).

If the inspected party refuses to sign the record, the record preparer must note the reason for the refusal on the record. This record still has legal validity if signed by at least two witnesses.

In the case where the inspected party refuses to sign the record, the person preparing the record shall note on the record the reason for the refusal to sign by the inspected party; this record still has legal validity if signed by at least two witnesses.

Article 17. Administrative Violation Record in the Field of Electricity

1. In case of discovering administrative violations in the field of electricity, the Electricity Inspector must prepare an Administrative Violation Record according to Model Record No. 01 stipulated in Decree No. 134/2003/NĐ-CP dated November 14, 2003 detailing the implementation of certain provisions of the Administrative Violations Handling Ordinance 2002 (Appendix 4 of this Regulation) and transfer the record to the competent authority for punishment as prescribed in Decree No. 74/2003/NĐ-CP dated June 26, 2003 of the Government on administrative penalties in the field of electricity.

2. The Administrative Violation Record shall be prepared in three copies, with the inspecting party retaining one copy, the inspected party retaining one copy, and one copy sent to the competent authority for punishment. The record shall be stamped and numbered for management purposes. All used records, including those containing errors and those that have been canceled and are no longer in use, must be managed and retained fully in accordance with regulations.

Article 18. Content and Methods of Inspecting Electricity Activities

1. Inspection of electricity quality

a) Voltage

Voltage is determined using voltage measuring equipment meeting standards certified by organizations with inspection functions.

b) Frequency

Frequency is determined using frequency measuring equipment meeting standards certified by organizations with inspection functions.

2. Inspection of electricity metering equipment including various types of meters, electric meters, and accompanying devices, the integrity of seals of the electricity metering system; hanging and removal records of meters and electricity metering devices, and other related documents.

3. Inspection of work to protect electrical equipment, power facilities, and electrical safety.

4. Inspection of the performance of obligations under electricity purchase and sale contracts and other obligations prescribed in the Electricity Law.

5. Inspection of compliance with procedures and formalities for stopping or reducing electricity supply levels.

Article 19. Content and Methods of Inspecting Electricity Usage

1. Inspection of voltage

Voltage is determined directly or indirectly using voltage measuring equipment certified by organizations with inspection functions.

2. Inspection of power

Power is determined by directly measuring instantaneous power values or indirectly through other measuring devices. Measuring devices must be certified by organizations with inspection functions.

For peak hour power, measure three times during the inspection period, then take the highest power value from one of the three measurements.

3. Inspection of electricity metering systems, including: Meters, voltage transformers for measurement, current transformers for measurement, wiring diagrams, the integrity of seals of the electricity metering system; hanging and removal records of meters and electricity metering devices, and other related documents.

4. Inspection of compliance with electrical safety regulations.

5. Inspection of the performance of obligations recorded in electricity purchase and sale contracts and other obligations prescribed in the Electricity Law.

Article 20. Inspection to Detect Electricity Theft

1. In cases where inspections reveal acts of electricity theft, inspectors must prepare a record with the following main contents:

a) Description of the act of theft and relevant parameters for calculating the handling of electricity usage violations;

b) Diagram of the theft (bypassing, disabling metering equipment);

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

2. In cases where tools used for electricity theft are temporarily seized, the inspecting party must seal these tools (the sealing paper must bear signatures of both the inspecting party and the inspected party).

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

Article 21. Inspection of electricity metering 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 acts of damaging or tampering with electricity metering systems are discovered, the Electricity Inspector must clearly describe the condition and make recommendations in the inspection record.

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) The inspection record must detail the condition, abnormal manifestations of the electricity metering system, and reasons for removing the electricity metering system. The inspection record must be handed over to representatives of the parties involved, specifying the time and place so that all parties can witness the verification process;

c) Seals of the certifying organization must remain intact. Metering equipment and other seals must be collected, packaged, and sealed (the sealing paper must bear signatures of the Electricity Inspector and the electricity buyer and seller parties).

3. The parties involved are responsible for witnessing the verification process of the metering equipment of the certifying organization. If they are absent during the inspection without a valid reason, they must still recognize the inspection results.

4. The method of determining electricity consumption in cases where meters are missing, malfunctioning, or not operating is carried out in accordance with Article 14 of Decree No. 105/2005/NĐ-CP dated August 17, 2005 of the Government detailing and guiding the implementation of certain provisions of the Electricity Law..

Chapter IV

RESOLUTION OF DISPUTES IN ELECTRICITY PURCHASE AND SALE CONTRACTS

Article 22. Principles for Resolving Disputes in Electricity Purchase and Sale Contracts

1. Resolution of disputes in electricity purchase and sale contracts must comply with legal regulations.

2. Resolution of contract disputes is based on agreements made in the signed contract between the two electricity buying and selling parties.

3. The Department of Industry will only organize mediation in cases where the two parties cannot negotiate on their own and have agreed to request the Department of Industry to resolve the dispute.

4. During the resolution of contract disputes, if signs of administrative violations or criminal offenses are discovered, the file must be transferred to the competent authority for resolution in accordance with the law.

Article 23. Compensation for Damage and Penalties for Breach of Contractual Obligations

1. The amount of compensation for damage caused by breach of contractual obligations shall be based on the agreement in the contract. If there is no such agreement, it shall be implemented according to the provisions of the law.

2. The amount of penalty for breach of contractual obligations shall be based on the agreement in the contract but shall not exceed 8% of the value of the breached contractual obligation.

In cases where the parties have no agreement on penalties for breach, the aggrieved party shall only have the right to request compensation for damage.

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

3. The method of determining the value of the breached contractual obligation, the value of compensation for damage for each act of breach is stipulated in Articles 25, 26, 27, and 28 of this Regulation. If other damages occur, the two parties shall negotiate.

4. The deadline for payment of compensation for damage shall be agreed upon by the parties but shall not exceed fifteen days from the date of acceptance of the claim for compensation for damage. If the deadline is exceeded, the breaching party must bear interest on late payment on the amount of compensation for damage according to the provisions of the law.

5. Within fifteen days from the date of receipt of the notice requesting payment of the fine, the breaching party must pay the penalty for breach of contract to the aggrieved party. If the deadline is exceeded, the breaching party must bear interest on late payment on the amount of the fine according to the provisions of the law.

Article 24. Procedure for Resolving Disputes in Electricity Purchase and Sale Contracts

Within fifteen working days from the date of receiving the dispute resolution request, the Department of Industry shall be responsible for completing the file, organizing mediation, and issuing a conclusion on the resolution of the dispute.

If one of the two parties disagrees with the conclusion of the Department of Industry, they have the right to transfer the case to commercial arbitration for resolution or to initiate a lawsuit at the Court.

Article 25. Method of Calculating the Value of the Breached Contractual Obligation for Acts of Breach by the Electricity Seller

1. Delaying electricity supply according to the agreed time in the signed electricity purchase and sale contract

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

b) The amount of penalty for breach of contract shall be agreed upon by the parties in the contract and shall be 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 registered daily electricity purchasing time, the electricity price recorded in the electricity purchase and sale contract, and the number of delayed days from the committed supply time to the actual supply time, according to 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 registered parameters in the electricity purchase and sale contract (capacity multiplied by daily electricity purchasing time)

- g: electricity price (VND/kWh)

- n: number of delayed days.

2. Selling electricity that does not meet quality standards or insufficient quantity as stipulated in the signed contract causing damage to the electricity buyer (excluding force majeure events)

a) Compensate the electricity buyer for actual and direct losses suffered due to the seller's actions and the direct benefits the buyer would have received if there had been no breach;

b) The amount of penalty for breach of contractual obligations shall be agreed upon by the parties in the contract and shall be 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 electricity purchase and sale contract, and the time selling electricity that does not meet quality standards or insufficient quantity, according to the following formula:

T = P x g x t

Where:

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

- P: Registered capacity in the electricity purchase and sale contract (kW)

- g: electricity price (VND/kWh)

- t: Time selling electricity that does not meet quality standards or insufficient quantity (hours).

3. Recording incorrect electricity consumption figures, calculating bills incorrectly causing damage to the electricity buyer

a) The electricity seller must refund the overcharged electricity fee to the electricity buyer plus interest agreed upon by the parties in the contract;

b) Penalty for breach of contractual obligations agreed upon by the parties in the electricity purchase and sale contract.

Article 26. Method for calculating the value of the contractual obligation breached due to the violation by the electricity purchaser

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

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

T = A x g x n

Where:

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

- A: Daily electricity consumption determined based on the registered parameters in the electricity purchase and sale contract (capacity multiplied by daily electricity purchasing time)

- g: Electricity price (VND/kWh)

- n: number of delayed days.

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

a) Compensate the seller for losses by the difference in electricity price during the period of misuse plus interest on the price difference as agreed upon in the contract. In cases where the misuse period cannot be clearly determined, it will be calculated as one year;

b) Penalty for breach of contractual obligations agreed upon by the parties in the electricity purchase and sale 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 breach penalty of the contractual obligation 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= A x g

Where:

- T is the value of the breached contract portion (VND)

- g is the peak hour electricity selling price according to the pricing schedule prescribed by the competent state agency during the compensation period (VND/kWh)

- A is the amount of electricity misused during peak hours (kWh) calculated as follows: A is determined by multiplying the peak hour violated capacity (D P) with the number of peak hours (4 hours) of the days of violation in the month.

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

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

b) The breach penalty of the contractual obligation shall be agreed upon by both parties in the contract.

5. Late payment for electricity

a) Handling late payment of electricity bills shall be carried out according to the provisions of Clause 2 and Clause 4, Article 23 of the Electricity Law;

b) The breach penalty of the contractual obligation shall be agreed upon by both parties in the contract.

Article 27. Compensation for damages in cases of selling at incorrect prices decided by authorized agencies

The electricity seller must refund the overcharged electricity fee to the buyer along with interest as agreed upon in the contract.

If the incorrect pricing period cannot be clearly determined, it will be calculated as one year.

Article 28. Compensation for damages in cases of electricity theft

1. The violator must compensate the victim for the loss caused by the stolen electricity volume.

2. Methods for determining the compensatory energy and compensation amount for acts of electricity theft

a) The compensatory electricity volume is determined by the following formula:

A_BT = A _SD : Actual electricity delivered to the grid at the delivery point in the payment month. _HĐ

A_BT: Total compensatory electricity volume (kWh)

A_SD: Total electricity consumption of the consuming devices during the violation period (kWh)

A_HĐ: Total electricity reflected on the electricity bill during the violation period (kWh).

b) The compensation amount (excluding VAT) is determined by the following formula:

T = A_BT x g

T: Compensation amount (VND)

A_BT: Compensatory electricity volume (kWh)

g: Highest electricity price level in the pricing schedule prescribed by the authorized agency according to the actual purpose of electricity use at the time of discovery.

c) The total electricity consumption of the consuming devices is determined by the following formula:

A_SD = (P₁ x t₁ + P₂ x t₂ +...+ P_ix t_i ) x n

A_SD: Total electricity consumption of the consuming devices (kWh)

"5. The pre-tax weighted average cost of capital i (%) is determined according to the formula below:₁kWp, kW₂, ..., P_i: Consumption capacity of each device (kW)

organize credit institutions, foreign bank branches are responsible for organizing the implementation of this Circular.₁1. Inspection₂, ..., t_i: Daily usage time of each device (hours/day)

n: Number of days for compensation (days).

d) The consumption capacity of the consuming devices is the highest capacity value calculated according to one of the following methods:

- Total capacity measured at the inspection point;

- The highest capacity in the load profile registered in the electricity purchase contract;

- Capacity of the devices listed in the equipment capacity registration form in the electricity purchase contract (for electricity purchase contracts serving production, business, and service purposes);

- Total capacity of the consuming devices recorded in the inspection record (manufacturer's label capacity can be used); - For individuals and organizations using electricity for residential purposes, the daily electricity consumption can be calculated as the average daily consumption of the billing period with the highest electricity volume in the previous twelve months.

đ) The daily usage time of each device (t) is determined based on the inspection record; if not determinable from the inspection record, Appendix 5 of this Regulation shall apply.

e) The number of compensation days (n) is determined as follows:

- Calculated from the date of the violation to the date of discovery;

- If not determinable, the number of compensation days is calculated from the nearest electricity inspection date or from the last replacement, repair, or regular inspection of the electricity metering system to the date of discovery, but not exceeding twelve months;

- The number of compensation days excludes periods of justified power outage and non-use.

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

Chapter V

VIOLATIONS OF ELECTRICITY ACTIVITIES AND USE

Case files and evidence, means of violation in electricity activities and use

Article 29. 1. Case files and evidence, means of violation in electricity activities include:

a) Inspection records of electricity activities, Administrative Violation Records in the field of electricity (if any);

b) Evidence, means of violation (if any);

2. Case files and evidence, means of violation in electricity use include:

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

d) Other relevant documents, materials, and objects.

a) Inspection records of electricity use, Administrative Violation Records in the field of electricity (if any);

b) Inspection records of electricity metering devices (if any), calibration records of electricity metering devices;

c) Diagrams of electricity theft (hooking, disabling electricity metering devices), photos, video recordings describing the violation of electricity use (if any);

đ) Evidence, means of violation (if any);

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

d) The contraband items and means of violation (if any);

e) Removed electricity metering equipment (if any);

g) Other relevant documents, materials, and objects.

Article 30. Procedure for receiving and keeping records of violations 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 breach the electricity purchase and sale contract, the inspection record shall be kept at the power unit.

b) In cases where the electricity buyer breaches the electricity purchase and sale contract, the inspection record and evidence of violation shall be kept at the power unit for handling.

c) In cases where the electricity user commits administrative violations, the inspection record and evidence of violation shall be transferred to competent authorities for administrative penalty handling.

2. The inspection record and evidence of violation established by the Electricity Inspector of the Ministry of Industry or the Department of Industry

a) In cases where the electricity buyer or seller does not breach the electricity purchase and sale contract, the inspection record shall be kept at the Ministry of Industry or the Department of Industry.

b) In cases where the electricity buyer or seller breaches the electricity purchase and sale contract, one copy of the inspection record and evidence of violation shall be transferred to the party that has been violated for handling.

c) In cases where the electricity activity operator or electricity user commits administrative violations, the inspection record and evidence of violation shall be transferred to competent authorities for administrative penalty handling. In cases where the electricity user commits administrative violations, a copy of the inspection record shall be sent to the electricity seller.

3. In cases where the violation of electricity activities or electricity usage indicates criminal law violations, the file shall be transferred to the investigation agency for handling according to the law.

Article 31. Management of Violation Records in Electricity Activities and Electricity Usage

1. Agencies and organizations with the right to inspect electricity activities and electricity usage shall be responsible for issuing and managing records, managing handover books of inspection records, statistical books of inspection records, and tracking books of files transferred to the Department of Industry, investigation agencies, courts, and arbitration agencies. The management book of violation records in electricity activities and electricity usage must be numbered and stamped.

2. Handing over and receiving violation records must have signatures, places of delivery and receipt. The handover book must be numbered sequentially, numbered by page, dated, and stamped.

3. The final handling agency or organization shall be responsible for keeping violation records of electricity activities and electricity usage. The period for managing violation records of electricity activities and electricity usage shall be implemented according to the law.

Chapter VI

IMPLEMENTATION

Article 32. Responsibilities of the Electricity Regulatory Agency

The Electricity Regulatory Agency shall be responsible for directing uniformly on professional and operational matters for Electricity Inspectors

1. Organizing inspections and supervision of the implementation of regulations regarding inspection work in electricity activities and electricity usage by state management agencies for electricity activities and electricity usage at local levels and power units.

2. Organizing training and examination on professional and operational matters for Electricity Inspectors issued cards by the Ministry of Industry.

3. Receiving applications for card issuance and card revocation for Electricity Inspectors according to Article 10 of this Regulation; supervising the issuance and revocation of Electricity Inspector cards by local Departments of Industry.

Article 33. Responsibilities of the Department of Industry

The Department of Industry is the advisory body assisting the People's Committee of the province in directing on professional and operational matters for inspection work in electricity activities and electricity usage at the local level, and shall be responsible for:

1. Organizing inspections and supervision of the implementation of regulations regarding inspection work in electricity activities and electricity usage and handling breaches of electricity purchase and sale contracts by power units within the provincial territory.

2. Organizing training and examination on professional and operational matters for Electricity Inspectors issued cards by the Department of Industry.

3. Receiving applications for card issuance and card revocation for Electricity Inspectors from power units according to Article 10 of this Regulation.

Article 34. Reporting System

1. Power units within the provincial territory shall be responsible for reporting promptly and quarterly and annually on electricity usage inspection work to the Department of Industry; in necessary cases, they may report directly to the Electricity Regulatory Agency.

2. The Department of Industry shall be responsible for promptly and quarterly and annually reporting on inspection and handling of violations in electricity activities and electricity usage to the Electricity Regulatory Agency.

3. Vietnam Electricity Corporation shall be responsible for promptly and quarterly and annually reporting on electricity usage inspection work to the Electricity Regulatory Agency.

4. The Electricity Regulatory Agency shall receive and compile prompt and quarterly and annual reports on inspection and handling of violations in electricity activities and electricity usage from the Departments of Industry and Vietnam Electricity Corporation to report to the Minister of Industry.

Article 35. Responsibility for Implementation

1. The Electricity Regulatory Agency and the Departments of Industry shall be responsible for disseminating, guiding, and supervising the implementation of this Regulation.

2. Provincial People's Committees and centrally-administered city People's Committees shall be responsible for organizing the implementation of this Regulation./.