Decision No. 60/2001/QD-BCN On the Issuance of Regulations on the Cost of Switching Off and On Electricity Supply

DECISION OF THE MINISTER OF INDUSTRY

Regarding the issuance of the Regulation on the level of costs for switching off and on electricity

THE MINISTER OF INDUSTRY

Pursuant to the Government Decree No. 74/CP dated November 1, 1995 on the functions, tasks, powers, and organizational structure of the Ministry of Industry;

Pursuant to the Government Decree No. 45/2001/NĐ-CP dated August 2, 2001 on electricity activities and electricity usage;

After reaching consensus with the Ministry of Finance through document No. 10741TC/TCDN dated November 9, 2001;

At the proposal of the Financial Accounting Department Director,

DECISION:

Article 1||| Issuing along with this Decision the Regulation on the level of costs for switching off and on electricity, uniformly applicable throughout the country.

Article 2||| This Decision shall take effect 15 days from the date of signature. All previous regulations contrary to this Decision are hereby abolished.

Article 3||| The Heads of the Ministry's Office, the Inspectorate of the Ministry, the Directors of Departments and Bureaus under the Ministry, the General Directors of Vietnam Electricity Corporation, the Directors of Provincial Industrial Departments under centrally governed cities and provinces, and the Heads of relevant agencies and units shall be responsible for implementing this Decision./.

when violating management and operation of

Level of costs for switching off and on electricity

(Issued pursuant to Decision No. 60/2001/QĐ-BCN

dated December 10, 2001 of the Minister of Industry)

PART I

General Provisions

Article 1. This regulation stipulates the level of costs for switching off and on electricity that the electricity buyer must pay to the electricity seller when the seller performs the switching off and on due to the buyer's violation of one of the provisions in Clause 5, Article 41 of the Government Decree No. 45/2001/NĐ-CP dated August 2, 2001 on electricity activities and electricity usage:

1. Using electrical equipment not meeting the safety standards prescribed, posing a serious risk to the power grid and threatening the safety of people and equipment.

2. The buyer violates the provisions in Clause 5, Clause 6, Article 39 of the Government Decree No. 45/2001/NĐ-CP:

a) Upon receiving a request for payment of electricity charges, if the electricity buyer has not paid, the electricity seller must send a payment notification to the electricity buyer. Within seven days from the date of receipt of the payment notification from the electricity seller, the electricity buyer is responsible for payment. If the buyer fails to pay beyond the aforementioned period, then:

- For civil contracts: The seller may agree to allow the buyer to delay payment if the buyer has a valid reason. If the agreed deadline is exceeded and the buyer still has not paid, the seller has the right to temporarily stop selling electricity;

- For economic contracts: When the seller has agreed to allow the buyer to delay payment, the buyer must bear the interest rate of a three-month commercial loan from the Vietnam Commercial Joint Stock Bank calculated on the amount of overdue payment starting from the tenth day. If the agreed deadline is exceeded and the buyer still has not paid, the seller has the right to temporarily stop selling electricity.

b) For electricity used for irrigation purposes, including water for rice fields, vegetables, intercropped industrial crops in rice and vegetable areas, the payment term shall be agreed upon by both parties but shall not exceed 120 days from the date of receipt of the electricity bill.

3. The buyer obstructs the inspection by the seller in the implementation of the electricity purchase and sale contract.

4. Engaging in fraudulent behavior in electricity usage.

5. Using electricity causing danger to people, animals, state property, and the public, adversely affecting the environment.

6. Intentionally tampering with the operation of the metering system.

7. Other cases as required by competent state authorities.

Article 2. The level of costs for switching off and on electricity (including the cost of cutting and the cost of reconnecting) is collected once when the seller reconnects the electricity to the buyer. This cost aims to compensate the seller for performing the switching off and on.

Article 3. The seller may only collect the switching off and on electricity fee according to the provisions in Chapter II of this Regulation. The revenue from the collection of the switching off and on electricity fee is recorded as part of the seller's business income (other production and business income) and subject to tax according to current regulations.

Article 4. The costs for switching off and on electricity for purposes of renovation, repair, and new construction of power facilities, and in cases of natural disasters and enemy threats, are not within the scope of application of this Regulation.

Chapter II

Level of costs for switching off and on electricity

Article 5. Switching points to determine the level of costs for switching off and on electricity are divided into three types:

1. At points with voltage up to 0.4kV.

2. At points with voltage from 6 to 35kV.

3. At points with voltage from 66kV and above.

Article 6. The level of costs for switching off and on electricity is specified as follows:

1. The one-time cost for switching off and on electricity in the plains area where the distance from the authorized switching point to the switching location is 10km or less, includes:

a) The cost for switching off and on electricity at a point with voltage up to 0.4kV is 23,000 VND;

b) The cost for switching off and on electricity at a point with voltage from 6 to 35kV is 49,000 VND;

c) The cost for switching off and on electricity at a point with voltage from 66kV and above is 74,000 VND.

The level of costs for switching off and on electricity specified in Clause 1 of this Article already includes 10% VAT.

2. Adjustment factors k and n

For electricity buyers using electricity for production, business, services, and other purposes (excluding residential purposes), if the distance from the work site of the authorized switching entity to the switching location increases, it is multiplied by factor k; in mountainous and island regions, it is multiplied by factor n, specifically:

a) Factor k:

- Less than 10km, factor k = 1.00

- From 10km to less than 20km, factor k = 1.14

- From 20km to less than 30km, factor k = 1.28

- From 30km to less than 50km, factor k = 1.42

- 50km or more, factor k = 1.56

b) Factor n = 1.15

Article 7. According to the level of costs specified in Article 6 of this Regulation, the seller collects money from the buyer when reactivating electricity supply as follows:

1. Plains area:

a) If the electricity buyer uses electricity for residential purposes, then T = M;

b) If the electricity buyer uses electricity for production, business, services, and other purposes, then T = M x k.

2. Mountainous and island areas:

a) If the electricity buyer uses electricity for residential purposes, then T = M;

b) If the electricity buyer uses electricity for production, business, services, and other purposes, then T = M x k x n.

In which: T: The amount of money the seller collects from the buyer at the switching points

M: The level of costs for switching off and on electricity specified in Clause 1 of Article 6

k: The distance adjustment factor specified in Clause 2 of Article 6

n: The mountainous region adjustment factor specified in Clause 2 of Article 6

Chapter III

Implementation Provisions

Article 8. Agencies responsible for managing state electricity affairs under the Ministry of Industry, People's Committees of centrally governed cities and provinces have the responsibility to disseminate and monitor the implementation of this Regulation.

Article 9. Organizations and individuals participating in electricity activities and using electricity must strictly comply with these Regulations. In the course of implementation, if any difficulties arise, they shall promptly report to the competent state management agency for resolution./.