What are the regulations on compensation for damage caused by the violations of obligations of sellers in the electricity purchase and sale contract in Vietnam?
- What are the regulations on compensation for damage caused by the violations of obligations of sellers in the electricity purchase and sale contract in Vietnam?
- Vietnam: What is the method of calculating the value of compensation for damage caused by the act of delaying the power supply according to the agreed time limit?
- Vietnam: What is the method of calculating the value of compensation for damage caused by the act of selling electricity that does not ensure quality, or does not have enough electricity according to the contract?
- Vietnam: How to handle in case the seller record the wrong electricity index, and calculate the wrong invoice causing damage to the electricity buyer?
- Vietnam: How to handle in case the seller does not make adjustments when the electricity buyer has an announcement to increase the number of households using the same meter?
What are the regulations on compensation for damage caused by the violations of obligations of sellers in the electricity purchase and sale contract in Vietnam?
Pursuant to Clause 6, Article 27 of Circular 42/2022/TT-BCT stipulates as follows:
Penalties for violations of contractual obligations and compensation for damage
...
6. The violator shall compensate the aggrieved party for losses caused by the breach for acts of breach of the electricity purchase and sale contract. Compensation value includes the actual and direct loss value suffered by the aggrieved party caused by the violating party and the direct benefits that the aggrieved party would have enjoyed if there were no acts of violation. The party claiming damages must prove the loss, the extent of the loss caused by the breach, and the direct profit that the aggrieved party would have enjoyed had the breach not occurred.
Accordingly, when the electricity seller violates the contractual obligations, it must compensate the damage caused by the violation to the violated party.
Compensation value includes the actual and direct loss value suffered by the aggrieved party caused by the violating party and the direct benefits that the aggrieved party would have enjoyed if there were no acts of violation.
What are the violations of seller in the electricity purchase and sale contract in Vietnam? How to handle such violations?
Vietnam: What is the method of calculating the value of compensation for damage caused by the act of delaying the power supply according to the agreed time limit?
Pursuant to Clause 1, Article 28 of Circular 42/2022/TT-BCT stipulating the method of calculating the value of compensation for damage caused by the violations of delaying the power supply as follows:
- The compensation for the electricity buyer with the direct damage that the electricity buyer has to bear due to the violation;
- The penalty for breach of contract shall be agreed upon by both parties in the contract and is based on the value of the breached contractual obligation.
- The value of the breached contractual obligation is determined by the value of electricity output agreed in the contract and calculated based on the registered capacity, time of registration for electricity purchase in the day, the electricity price recorded in the power purchase agreement and the number of days of delay is determined from the time of commitment to supply electricity to the time of power supply, according to the following formula:
T = A x g x n
Inside:
T: Value of the breached contractual obligation (VND);
A: Daily electricity is determined based on the parameters registered in the electricity purchase and sale contract (kWh/day);
g: Electricity price (VND/kWh) for compensation calculation, calculated according to the highest price in the signed power purchase and sale contract;
n: Number of days of delay.
Vietnam: What is the method of calculating the value of compensation for damage caused by the act of selling electricity that does not ensure quality, or does not have enough electricity according to the contract?
Pursuant to Clause 2, Article 28 of Circular 42/2022/TT-BCT stipulating the method for calculating the value of compensation for damage caused by the act of selling electricity that does not ensure quality, does not have enough electricity according to the contract, causing damage to the electricity buyer as follows:
- Compensation for damage to the electricity buyer is equal to the value of actual and direct losses suffered by the electricity buyer caused by the electricity seller and the direct profit that the electricity buyer would have enjoyed if there were no acts of violation;
- The penalty level for breach of contractual obligations shall be agreed upon by the two parties in the contract and is based on the value of the breached contractual obligation portion.
- The value of the breached contractual obligation is determined by the value of the electricity output agreed in the contract and calculated based on the registered capacity, the electricity price stated in the power purchase agreement and the duration of the selling electricity without quality assurance or insufficient quantity of electricity, according to the following formula:
T = P x t x g
Inside:
T: Value of the breached contractual obligation (VND);
P: Power registered in the power purchase agreement (kW);
t: Electricity sale time is not guaranteed with quality and quantity of electricity (hours);
g: Electricity price (VND/kWh) for compensation calculation, calculated according to the highest price in the signed power purchase and sale contract.
Vietnam: How to handle in case the seller record the wrong electricity index, and calculate the wrong invoice causing damage to the electricity buyer?
Pursuant to Clause 3, Article 28 of Circular 42/2022/TT-BCT, acts of the seller recording the wrong electricity index or calculating the wrong invoice causing damage to the electricity buyer shall be handled as follows:
- The electricity seller must refund to the electricity buyer the excess amount of electricity plus the interest rate agreed upon by the two parties in the contract;
- Penalties for breach of contractual obligations as agreed by both parties in the power purchase and sale contract.
Vietnam: How to handle in case the seller does not make adjustments when the electricity buyer has an announcement to increase the number of households using the same meter?
Pursuant to Clause 4, Article 28 of Circular 42/2022/TT-BCT, the seller does not make adjustments when the electricity buyer has notified and fully meets the conditions to increase the number of electricity-using households using the same meter as follows:
- The electricity seller must refund the electricity buyer the excess amount collected during the violation period.
- The time of the violation is counted from the next billing period after the electricity buyer gives notice and is eligible to increase the number of electricity users sharing the meter or notices and meets the conditions for increasing the usage norm. electricity until the time the electricity seller makes an increase;
- Penalties for breach of contractual obligations as agreed by both parties in the power purchase and sale contract.
Circular 42/2022/TT-BCT will take effect on February 16, 2023
LawNet
