Decree 18 of 2025 on electricity trading and situations ensuring electricity supply in Vietnam

Decree 18 of 2025 on electricity trading and situations ensuring electricity supply in Vietnam
Le Truong Quoc Dat

Below are some provisions stipulated in Decree 18/2025/ND-CP related to electricity trading activities and ensuring electricity supply in Vietnam.

Decree  18  of  2025  on  electricity  trading  and  ensuring  power  supply  situations

Decree 18 of 2025 on electricity trading and situations ensuring electricity supply in Vietnam​ (Image from Internet)

The Government of Vietnam issued Decree 18/2025/ND-CP on February 8, 2025, guiding Electricity Law 2024 relating to electricity trading activities and situations ensuring electricity supply.

Decree 18 of 2025 on electricity trading and situations ensuring electricity supply in Vietnam​

The conditions for concluding electricity trading contracts for household purposes in Vietnam at Article 6 of Decree 18/2025/ND-CP are as follows:

- Organizations and individuals proposing to conclude an electricity trading contract for household purposes must ensure the following conditions:

+ The entity proposing to conclude the contract on the electricity buyer's side is the legal representative or authorized person of the electricity buyer to execute the contract;

+ The entity proposing to conclude the contract on the electricity seller’s side is the legal representative or authorized person of the electricity retail unit meeting the electricity buyer's needs to execute the contract;

+ The participating entity proposing contract conclusion ensures the conditions for the validity of civil transactions as regulated by the Civil Code 2015. In the case of a person lacking civil act capacity, the legal representative of the person lacking civil act capacity is the participating entity proposing contract conclusion;

+ In the case where the electricity buyer consists of multiple households using electricity collectively concluding one contract, the entity concluding the contract on the buyer's side is the representative of the households signing the contract and has a written authorization from the other households collectively using electricity. The contract must clearly state the number of households using electricity collectively (with an attached list) and the electricity selling price applied in accordance with electricity law. Authorization is performed according to civil law regulations;

+ In the case where the electricity buyer is a tenant for residential purposes, the contract-concluding entity on the buyer’s side is the owner of the house or the tenant authorized in writing by the owner. In this case, the house owner commits to pay the electricity bills if the tenant authorized to conclude the contract fails to fulfill the obligation of paying the electricity bills;

+ At one location for registering electricity purchase, if the buyer is one household, only one contract may be concluded.

- The electricity buyer prepares a dossier proposing to conclude the electricity trading contract for household purposes in writing or in a form of data message equivalent to a document as regulated by law, and sends one set of documents to the electricity seller in case of written documents. The proposal dossier for concluding the electricity trading contract includes the following documents and materials:

+ Proposal to conclude the electricity trading contract for household purposes;

+ Personal identification number of the legal representative or authorized person of the electricity buyer established by the national database on citizen. If not retrievable from the national database, use a copy of the ID card or citizen ID card or residential information confirmation paper of the electricity buyer's representative with residential information at the electricity purchase location or one of the following documents: Certificate of housing ownership; certificate of land use rights (for land with housing); lot decision; house sales contract; house lease contract of one year or more, or other documents proving ownership, management, usage rights of the electricity purchase location of one year or more to register for electricity purchase.

- The electricity seller must conclude the contract and supply electricity to the electricity buyer within 7 working days from the date the parties meet the regulations in clauses 1 and 2 of Article 6 Decree 18/2025/ND-CP.

Decree 18/2025/ND-CP takes effect from February 8, 2025.

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