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MINISTRY
OF INDUSTRY AND TRADE OF VIETNAM
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SOCIALIST
REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
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No.
16/2023/TT-BCT
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Hanoi,
August 31, 2023
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CIRCULAR
GUIDING POWER PURCHASE AGREEMENT SERVING DOMESTIC PURPOSES
Pursuant to the Law on
Electricity dated December 3, 2004; the Law on amendment to the Law on Electricity
dated November 20, 2012;
Pursuant to Decree 96/2022/ND-CP
dated November 29, 2022 of the Government on functions, tasks, powers, and
organizational structure of the Ministry of Industry and Trade;
Pursuant to Decree No.
137/2013/ND-CP dated October 21, 2013 of the Government elaborating the Law on
Electricity and Law on amendment to the Law on Electricity; Decree No.
08/2018/ND-CP dated January 15, 2018 of the Government on amendment to Decrees
relating to investment and business conditions within state management of the
Ministry of Industry and Trade; Decree No. 17/2020/ND-CP dated February 5, 2020
of the Government on amendment to Decrees relating to investment and business
conditions within state management of the Ministry of Industry and Trade;
Decree No. 104/2022/ND-CP dated December 21, 2022 of the Government on
amendment to Decrees relating to submission and presentation of family
register, temporary residence card in administrative procedures, public
services;
At request of the Director of
Electricity Regulatory Authority of Vietnam;
The Minister of Industry and
Trade promulgates Circular guiding power purchase agreement serving domestic
purposes.
Article 1.
Scope
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Article 2.
Regulated entities
1. Electricity retailers
(hereinafter referred to as “the Seller”).
2. Customers using electricity for
domestic purposes (hereinafter referred to as “the Buyer”).
3. Other
agencies, organizations, and individuals.
Article 3.
Format of domestic PPA
1. Domestic
PPA shall come in physical form (2 copies of the agreement shall be produced
one of which shall be held by each party) or electronic form (which the Buyer
can look up and download from website of the Seller). The agreement shall be
written in the Vietnamese language.
The parties may negotiate about
using other ethnic dialects of Vietnam or foreign languages. In case of discrepancies
between a version written in the Vietnamese language and a version written in
an ethnic dialect of Vietnam or a foreign language, whichever version is more
beneficial to the users shall prevail.
2. Domestic
PPAs shall be compliant with form under Appendix attached hereto.
Article 4.
Signers of domestic PPA
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2. If the
Buyer consists of multiple households sharing electricity under 1 agreement,
signers shall be representatives of these households who are authorized by the
households in writing. Sharing households shall satisfy conditions under Clause
1 Article 8 of Decree No. 104/2022/ND-CP. The PPA shall specify number of
sharing households (with attached lists) and applicable electrify price
according to regulations promulgated by the Ministry of Industry and Trade.
3. If the
Buyer is a tenant, signers of the Buyer shall be identified in accordance with
regulations on electricity retail price promulgated by the Ministry of Industry
and Trade.
4. Signers of
the Seller shall be legal representatives or individuals authorized by the
Seller and in possession of distribution grids capable of supplying electricity
in a manner that fulfills demand of the Buyer.
Article 5.
Effective period of domestic PPA
Effective period of PPAs shall be
agreed upon by the parties. Effective period of PPAs shall start from the date
of signing to the date of expiry as per the law unless otherwise agreed upon in
detail by the parties.
Article 6. Organizing
implementation
1. The Electricity Regulatory
Authority of Vietnam shall instruct, inspect, and examine compliance with
regulations on domestic PPA on a nation-wide scale.
2. Departments of Industry and
Trade shall instruct, inspect, and examine compliance with regulations on
domestic PPA on a province-wide scale.
3. The Seller shall: register,
re-register domestic PPA, general trading conditions to competent consumer
protection authorities; publicize sample agreements and general trading conditions,
and adhere to other relevant law provisions under the Law on Consumers’ Rights
Protection and guiding documents.
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1. This Circular comes into force
from October 16, 2023.
Circular No. 19/2014/TT-BCT dated
June 18, 2014 of the Minister of Industry and Trade and Circular No.
38/2022/TT-BCT dated December 30, 2022 shall expire from the effective date
hereof.
2. Agreements signed before the
effective date hereof shall continue to apply until expiration. The parties
shall still adhere to the Law on Electricity and guiding documents and may make
additional arrangements appropriate to sample agreement under Appendix attached
hereto. If either party or both parties wish to renew the agreement before
expiration, both parties shall consider and negotiate on the renewal. If this
is the case, the renewal of agreement shall conform to this Circular.
3. If documents referred to in this
Circular and Appendix attached hereto are amended or replaced during
implementation, the replacing or amended versions shall prevail.
4. Difficulties that arise during
the implementation of this Circular should be reported to the Minister of
Industry and Trade (via Electricity Regulatory Authority of Vietnam) for
consideration./.
PP. MINISTER
DEPUTY MINISTER
Nguyen Sinh Nhat Tan
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SAMPLE
POWER PURCHASE AGREEMENT FOR DOMESTIC PURPOSES
(Attached to Circular No. 16/2023/TT-BCT dated August 31 of 2023 of Minister
of Industry and Trade)
SOCIALIST
REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
---------------
(Location
and date)
POWER
PURCHASE AGREEMENT
FOR
DOMESTIC PURPOSES
Contract
No. …………………
Pursuant to the Civil Code dated
November 24 of 2015;
Pursuant to the Law on
Electricity dated December 3, 2004; the Law on amendment to the Law on
Electricity dated November 20, 2012;
Pursuant to the Law on
Consumer’s Rights Protection dated November 17 of 2010;
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Pursuant to electricity purchase
demand of the Buyer,
The parties include:
The Seller (Party A):
………………………………………………………
Headquarters address:
.......................................................................................
Telephone:
…………………………………………………………………….
Email:
..............................................................................................................
Tax identification number:
……………………………………………………
Account No. ………………………Opened at
……………………………… (bank)
Represented by Mr./Mrs./Ms.
…………………. Position: …………………
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Of Mr./Mrs./Ms. …………………………
position ……………………………………2
[The parties hereby agree under
this Agreement, ……………………Power Company/Electricity is affiliated to Party A, is
established and operating as per the law, represents Party A to be responsible
for implementing, managing, and executing the Contract, and has the following
information:
Tax identification number:
……………………………………………………
Address: ……………………………………………………………………
Email:
..............................................................................................................
Account No. ………………………opened at
………………………….(bank)]3
The Buyer (Party B)4:
………………………………………………………
Address: ……………………………………………………………………
Telephone:
…………………………………………………………………….
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Tax identification number5:
……………………………………………………
Account No. ……………………… Opened at
……………………(bank)6
Represented by Mr./Mrs./Ms.7
………………………………………………
Position (in case of organization):
……………………………………………
ID Card/Citizen ID Card/Passport
No. ………. Date of issue: ………… Place of issue: ……
(According to Written
authorization No. ……………dated …………… by Mr./Mrs./Ms. ……………8 Position
(in case of organization): …………………………)
[Number of sharing households: ………
(specific list attached hereto).] 9
The parties hereby enter into power
purchase Agreement for domestic purposes as follows:
Article 1. Specific provisions
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2. Address of
electricity use: ………………………………………………
3. Measurement
location of electricity quality: …………………………….
4. Installation
location of electricity metering instrument: …………………
In the performance of this Agreement,
the following persons may represent Party B to witness and sign record of
connection, disconnection, and installation of electricity metering instrument
at the time in which Party A connects, disconnects, installs electricity metering
instrument:
a) Contract signing entity □;
b) Person authorized by Party B,
including: Another member with adequate civil capability in household/sharing household
as the Party B □; Other representative: ……………………
5. Meter
reading date: ………………………………………………………
6. Payment
methods and time limit:
a) Flexibly apply at least one of
the following payment method: Automatic debit □; Electronic payment □; Transfer
□; Collection point □; Other method: …………………………………
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7. Methods of
notifying and exchanging information:
Flexibly adopt at least one of the
following methods for sending/receiving payment notifications, other
notifications, and information exchange (including delayed payment, suspension
or reduction of electricity supply, change to meter reading date, electricity metering
instrument connection, disconnection, installation date, etc.): Email □;
Phone/SMS □; Text messaging application □; Customer service application of
Party A □; Other method: …………….
In respect of information requested
between the parties, unless otherwise specified, within 7 days from the date on
which a party receives the request, the receiving party must respond as to
whether they agree with propositions of the sending party or not.
[8. The parties hereby agree that
payment documents in respect of all payments according to this Agreement will
be issued to Party B by ………………Power Company/Electricity and Party B will pay
………………Power Company/Electricity]10
9. Penalties for breach of contract obligations or total
penalties for multiple breaches agreed upon by the parties:11 ………%
of value of breached contract obligation.
10. The
parties shall choose at least one of the following methods for settling
disputes12: Negotiation □; Mediation □; Arbitration □; Court □.
Article 2. Other agreements13
.................................................................................................................................
.................................................................................................................................
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1. This Agreement comes into force
from ………… (date) [or from signing date] to ………… (date) [or to the
date on which the contract is terminates as per agreement or as per the law].
14
2. Where
either party wishes to terminate or amend the Agreement during performance of
the Agreement, such party must inform the other party 15 days in advance in
order to cooperate in resolution. /.
PARTY
B’S REPRESENTATIVE
(Signature, full name, position, and seal15)
PARTY
A’S REPRESENTATIVE
(Signature, full name, position, and seal)
__________________________
1 During the signing of the
Agreement, where legislative documents serving as the basis of this Agreement
are replaced or amended, the new versions of these documents will prevail.
2 Applied in case of representation
by authorization.
3 Choose and specify information
appropriate to current conditions of the Seller or omit this field otherwise.
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5 Information for the Buyer that is
an organization.
6 Information for the Buyer that is
an organization.
7 Choose and specify information
appropriate to current conditions of the Buyer (such as sharing households,
organization, etc.) or omit this field otherwise.
8 Choose and specify information
appropriate to current conditions of the authorizing party in case the Buyer is
an organization or multiple sharing households sign an agreement; representative
of sharing households may be authorized by one or multiple written
authorization documents as the case may be.
9 Apply to the case where the Buyer
comprises of multiple sharing households signing an Agreement.
10 Choose and specify information
appropriate to current conditions of the Seller or omit this field otherwise.
11 The parties shall negotiate as
per the law.
12 Where the parties choose at
least 2 methods for settling disputes, the order of dispute settlement shall
conform to regulations and law.
13 The parties have the right to
negotiate about details appropriate to power purchase situation between the
parties without violating applicable law.
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15 Where Party B is an
organization, Party B must append signature, full name, position, and seal.
GENERAL
CLAUSES
(Attached
to Power Purchase Agreement for domestic purposes)
Article 1. Service standards and
quality
1. Electricity
quality
a) Electricity quality is
determined at location agreed upon in the Agreement;
b) Voltage and frequency must
conform to Clause 1 Article 15 of Decree No. 137/2013/ND-CP dated October 21 of
2013 of the Government elaborating the Law on Electricity and Law on amendment
to the Law on Electricity (hereinafter referred to as “Decree No. 137/2013/ND-CP”).
2. Electricity
metering
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b) Electricity metering instruments
must be inspected as per the law;
c) Connection, disconnection, and
installation of electricity metering instrument must be recorded in writing and
signed by Party B in accordance with agreement details under Clause 4 Article 1
(Specific provisions) hereof. The record is produced in physical form or
electronic form.
Article 2. Electricity price,
payment method and time limit
1. Recording meter reading
a) Party A shall record meter
reading on a designated date on a monthly basis, such date may be moved forward
or backward by one day except for force majeure according to civil laws. The
specified meter reading date is the last date of the billing cycle depicted on
electricity bill;
b) In the performance of the
Agreement, Party A reserves the right to negotiate about change to monthly
designated electricity metering date by sending request (in writing or
electronic form) appropriate to Clause 7 Article 1 hereof to Party B . The
change to electricity metering date is only in effect if both parties have
agreed. Discussion between the parties is inseparable from this Agreement.
2. Electricity price
a) Retail price of electricity
serving domestic purposes conforms to regulations of competent authority. Party
A is responsible for informing Party B about electricity retail price imposed
by Party A prior to signing the Agreement and in case of revision to
electricity retail price for domestic purposes;
b) Revised electricity price will
only be in effect when competent authority approve such revision and at which
point the parties are not required to renew the Agreement.
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4. Where Party B fails to settle
electricity payment after receiving 2 notifications sent by Party A, Party A
shall, after 15 days from the first notification, reserve the right to cut
electricity supply. Party A must inform Party B about electricity cut 24 hours
in advance and shall not be held responsible for damage caused by said
electricity cut if they have adequately complied with notification obligation
under this Article. Where Party B has settled all electricity payment and
applied for resumed electricity supply in accordance with electricity laws (and
submitted fees for resumed electricity supply), Party A must resume electricity
supply as per electricity laws.
5. Where the parties disagree on
electricity bill payable:
b) Party B has the right to request
Party A to reconsider electricity bill payable. Party A shall, upon receiving
request of Party B, resolve within 15 days;
b) Where Party B disagree with
solution of Party A, Party B may proceed with solutions for dispute settlement
that both parties have negotiated under this Agreement;
c) During the period in which
electricity bill payable is awaiting resolution, Party B is still required to
pay Party A as per payment documents issued by Party A whereas Party A is not
allowed to cut electricity supply. Where Party B fails to make payment, Party A
shall cut electricity supply and only resume electricity supply in accordance
with Clause 4 of this Article;
d) Where disputes pertaining to
electricity bill payable have been settled, Party A must refund electricity
payment collected in excess to Party B or pursue electricity payment arrears of
Party B (if any).
Article 3. Rights and
obligations of Party A
1. Access areas under management of
Party B to inspect, record meter reading, repair, replace metering instruments
in respect of instruments located in areas under management of Party B and
contact Party B to resolve issues relating to the Agreement. Party A must
comply with relevant law provisions upon assigning personnel to access areas
under management of Party B.
2. Ensure safe, stable, and
reliable operation of electrical grid and equipment. Ensure that electricity
supply for Party B meets technical, service quality, and safety standards
unless distribution grid is overloaded according to verification of Electricity
Regulatory Authority of Vietnam or authorized agency.
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4. Inform Party B at least 5 days
in advance about suspension or reduction of electricity supply by notifying for
3 consecutive days on mass media or other format agreed between the parties
under Clause 7 Article 1 hereof where plans for suspension, reduction to
electricity supply for repair, maintenance, overhaul, construction of
electricity works are produced.
5. Where Party A has temporarily
suspended electricity supply at request of Party B, Party A must, within 7 days
from the date on which Party A receives notice of Party B regarding
continuation of electricity usage, resume electricity supply for Party B after
Party B has fulfilled procedures for resumed electricity supply as per
electricity laws.
6. Party A may charge for
suspension and resumption of electricity supply in accordance with methods for
determining and rate for suspension, resumption of electricity supply
promulgated by Ministry of Industry and Trade.
7. Within 15 days from the date on
which Party A receives notice of Party B regarding: change to electricity price
as a result of change to electricity use purpose; change to number of sharing
households registered in the Agreement; change to use quota; termination of the
Agreement, Party A is responsible for inspecting and amending or terminating
power purchase agreement for domestic purposes in accordance with this
Agreement or regulations of the law.
8. Inform Party B about the date on
which the Agreement is terminated under situations agreed upon under Clause 7
Article 1 hereof at least 7 working days before termination of the Agreement.
9. Unilaterally terminate the
Agreement where Party B does not use electricity for 6 consecutive months
without notifying Party A in advance or Party B no longer satisfies eligibility
to sign Power Purchase Agreement for domestic purposes under Clause 1 Article
11 of Decree No. 137/2013/ND-CP (amended by Clause 1 Article 8 of Decree No.
104/2022/ND-CP). Unilateral termination procedures conform to the Civil Code
10. Protect information of Party B;
avoid collecting, using, transferring information of Party B to a third party
without Party B’s consent in accordance with consumer’s rights protection laws
and relevant law provisions.
11. Issue warning about risks of
electricity safety violation, harm to lives, health, property of Party B or
relevant parties and send notice regarding electricity safety measures to Party
B as per the law.
12. Exercise other rights and
obligations as per the law.
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1. Request Party A to guarantee
electricity quality at locations agreed upon in the Agreement; examine
electricity quality, accuracy of electricity metering instruments, electricity
bill payable; promptly restore electricity supply following outage.
2. Enable Party A to inspect,
record meter reading, repair, replace metering instruments in respect of
electricity metering instruments located in areas under management of Party B.
3. Immediately inform Party A upon
discovering that electricity metering instruments are malfunctioning or
suspected of being faulty or upon discovering irregularities that may cause
power outage or violation of safety for humans and property.
4. Inform Party A 15 days in
advance where Party B changes electricity use purpose thereby changing
electricity price; immediately inform Party A upon changing number of sharing
households registered in the Agreement, changing use quota, or wishing to
terminate the Agreement.
5. Inform Party A 5 days in advance
from the date on which Party B wishes to temporarily suspend electricity for
more than 6 consecutive months; immediately inform Party B where Party B no
longer possesses the legitimate right to ownership, management, and use of
electricity use locations.
6. Assume responsibility for
managing property and maintaining safety of electrical lines from after
metering instruments to locations of use. Avoid providing electricity to other
households without permission.
7. Pay monthly electricity bill on
an adequate and timely manner as per the Agreement.
8. Avoid removing, relocating
electricity metering instruments without permission. Where electricity metering
instruments must be relocated, Party B must acquire consent of Party A and
incur all relevant costs.
9. Avoid electricity theft in any
shape or form. Where Party B commits electricity theft, Party B will be held
accountable in accordance with administrative violation penalty laws or
criminal laws and, if such violation causes damage to parties other than party
A, incur damages as per civil laws.
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Article 5. Damage compensation
and contract violation penalty
1. Violations of the Agreement
a) Violations committed by Party A
Failure to maintain electricity quality
according to Article 1 hereof, except for force majeure under civil laws;
incorrect recording of meter reading, incorrect calculation of electricity
bill; failure to adjust the number of sharing households after receiving
written request sent by Party B proving fulfillment of satisfaction; other
violations as per electricity purchase laws.
b) Violations committed by Party B
Use of electricity corresponding to
a rate higher than the rate negotiated under the Agreement; failure to pay
electricity bill in a timely manner; failure to notify Party A about reduction
to number of sharing households; other violations as per electricity purchase
laws.
2. Damage compensation
a) Where Party A, by committing
violations under Point a Clause 1 of this Article, causes damage to Party B,
Party A must incur damages;
b) Where Party B, by committing
violations under Point b Clause 1 of this Article, causes damage to Party A,
Party B must incur damages;
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3. Penalty for contract violation
Apart from damages under Clause 2
of this Article, the offending parties shall also be met with penalties for
contract violation:
a) Where Party A, by committing
violations under Point a Clause 1 of this Article, causes damage to Party B,
Party A shall be met with penalties for violation of contract obligation the
rate of which is agreed upon by the parties under Clause 9 Article 1 hereof;
b) Where Party B, by committing
violations under Point b Clause 1 of this Article, causes damage to Party A,
Party B shall be met with penalties for violation of contract obligation the
rate of which is agreed upon by the parties under Clause 9 Article 1 hereof.
Article 6. Dispute settlement
1. The parties hereby undertake to
adequately comply with negotiations under this contract and that violation will
be met with penalties under this contract and regulations of the law.
2. In respect of disputes, the
parties shall settle via methods agreed upon under Clause 10 Article 1 hereof
in accordance with regulations on consumer’s right protection and electricity
laws./.
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