From February 08, 2025, how to record electricity measurement indexes in electricity trading activities in Vietnam?

From February 08, 2025, how to record electricity measurement indexes in electricity trading activities in Vietnam?

On February 8, 2025, the Government of Vietnam issued Decree 18/2025/ND-CP detailing several articles of the Law on Electricity related to electricity transactions and situations ensuring electricity supply.

Article 7 of Decree 18/2025/ND-CP stipulates the recording of electricity measurement as follows:

(1) For electricity transactions used for residential purposes, the electricity seller records the electricity measurement once a month on a predetermined date agreed upon by both parties in the electricity purchase contract, except in force majeure cases posing safety risks to workers as defined in the electricity purchase contract. The timing for recording electricity measurement can be adjusted one day before or after the predetermined date or adjusted according to the agreement in the electricity purchase contract.

(2) For electricity transactions used for non-residential purposes, the electricity buyer and seller may agree on the number of times electricity measurement is recorded in a month. If the two parties cannot agree, the recording of electricity measurement is regulated based on the average registered electricity consumption in the electricity purchase contract as follows:

- Below 50,000 kWh/month, record once a month;

- From 50,000 to 100,000 kWh/month, record twice a month;

- Above 100,000 kWh/month, record three times a month.

(3) In cases where the average actual electricity consumption of the electricity buyer for non-residential purposes over the past three months exceeds or falls below the thresholds corresponding to the recording frequencies applied according to points a, b, and c of clause 2 of this Article, the electricity seller and electricity buyer have the right to agree to adjust the recording frequency of electricity measurement.

(4) For electricity buyers using less than 15 kWh/month, the recording cycle of electricity measurement is agreed upon by the two parties.

(5) For wholesale electricity transactions, the recording of electricity measurement is agreed upon by the two parties in the contract.

(6) The electricity seller must ensure the accuracy of the recorded electricity measurements.

What are regulations on ensuring the performance of electricity sale and purchase contracts in Vietnam?

According to Article 3 of Decree 18/2025/ND-CP detailing ensuring the execution of electricity purchase contracts:

Article 3. Ensuring the execution of electricity purchase contracts

1. The electricity buyer, who is a customer with an average electricity consumption of 1,000,000 kWh/month or more according to the registration in the electricity purchase contract, is responsible for implementing measures to ensure the execution of the contract before the contract becomes effective. If the average electricity consumption registered in the electricity purchase contract is below this level, but the actual average electricity consumption of the nearest 12 months is 1,000,000 kWh/month or more, the electricity buyer must cooperate with the electricity seller to amend and supplement the signed electricity purchase contract to include contents ensuring contract execution and take measures to ensure contract execution before the amended, supplemented contract becomes effective. Annually, the electricity seller and electricity buyer agree on the value of ensuring contract execution in line with the actual average electricity consumption of the preceding 12 months.

2. The value of ensuring contract execution is agreed upon by the electricity buyer and seller within the range of 10 to 15 days of electricity payments, calculated based on the average registered monthly electricity consumption in the electricity purchase contract or the actual average electricity consumption of the nearest 12 months and the normal hour electricity price applied.

3. The measures, forms, effectiveness, rights, and obligations in ensuring the contract are specifically agreed upon by the parties in the electricity purchase contract; the use of bank guarantees is encouraged.

4. The regulation on ensuring the execution of electricity purchase contracts does not apply to customers using electricity for state agency headquarters, public service providers, armed forces units, political organizations, or socio-political organizations.

Thus, according to the above regulations, electricity buyers with an average consumption of 1,000,000 kWh/month or more (based on the contract registration or actual figures of the nearest 12 months) must implement measures to ensure the contract before it becomes effective. If the actual consumption achieves this level but is not registered, the contract needs to be amended and supplemented.

The value of assurance is agreed upon by the parties within 10 to 15 days of electricity payments, based on average consumption. The parties agree on the assurance measures, with bank guarantees encouraged. This regulation does not apply to customers using electricity for state agency headquarters, public service providers, armed forces, political organizations, or socio-political organizations.

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