Is it compulsory to pay interest on late payment of electricity bills under the contract in Vietnam?

Is it compulsory to pay interest on late payment of electricity bills under the contract in Vietnam?

Pursuant to Article 23 of the Law on Electricity in 2004 (amended by Clause 9 Article 1 of the Law on amendments to the Law on Electricity in 2012) stipulating electricity money payment as follows:

1. The electricity buyers must pay fully and on time the billed electricity money to the electricity sellers according to the electricity price tables already approved by competent state bodies. The electricity money shall be paid at the headquarters or residence places of the electricity buyers or at convenient places agreed upon by the two parties in the electricity purchase and sale contracts.

2. The electricity buyers that pay the electricity money late must also pay the interests on the late-paid sums to the electricity sellers.

3. The electricity sellers that collect the electricity money in surplus must reimburse to the electricity buyers the surplus amounts plus the interests thereon.

4. The interests on the late-paid amounts or the excessively-collected amounts shall be agreed upon by the parties in the contracts, which, however, must not exceed the highest lending interest rates of the banks where the electricity sellers open their accounts, as inscribed in the contracts at the time of payment.

5. The electricity buyers may request the electricity sellers to re-examine the payable electricity money amounts. Upon receiving the requests of the electricity buyers, the electricity sellers shall have to settle them within fifteen days. Where they disagree with the settlement by the electricity sellers, the electricity buyers shall propose competent agencies or organizations to organize the conciliation. In case of not proposing the conciliation or failed conciliation, the electricity buyers may initiate lawsuits at courts according to law provisions on civil procedures. Pending the settlement, the electricity buyers shall still have to pay the electricity money and the electricity sellers must not stop the electricity supply.

6. In cases where the electricity buyers do not pay the electricity money though they have been notified of the payment twice by the electricity sellers, fifteen days after the first notification, the electricity sellers may stop supplying the electricity. The electricity sellers must notify the time for stopping the electricity supply to the electricity buyers 24 hours in advance and shaft not bear responsibly for the damage caused by the electricity supply stoppage.

Therefore, if you are late in paying your electricity bill under the contract you have signed, you are required to pay interest on the late payment amount to the electricity seller in accordance with the law.

Is it compulsory to pay interest on late payment of electricity bills under the contract in Vietnam? - Source: Internet

What are the violations of the electricity purchase and sale contract in Vietnam?

Pursuant to Article 13 of the Decree 137/2013/NĐ-CP stipulating acts breaking contract of electricity purchase and sale as follows:

1. Violations of the electricity sellers include:

a) Postponing the electricity supply according to the signed electricity purchase and sale contract, unless the facilities of customer have not yet had full conditions for operation;

b) Failing to ensure quality, quantity of electric energy, stability in electricity supply according to the signed contracts except for force majeure circumstances;

c) Recording wrongly meter readings of electricity meter; calculating wrongly electricity charge on the bill;

d) Postponing or failing to pay compensation for the electricity purchaser in respect to damages caused by their fault;

dd) Other acts breaking regulations of electricity purchase and sale.

2. Violations of the electricity purchasers include:

a) Postponing implementation of the assigned contracts;

b) Using electricity improperly with purpose stated in contract;

c) Using in excess of yield already registered in chart of sub loading stated in contract of electricity purchase and sale at rush hour;

d) Failing to make liquidation of contracts when they fail to use electricity;

dd) Paying electricity charge later than provided time without legitimate reason;

e) Postponing or failing to pay compensation for the electricity seller in respect to damages caused by their fault;

g) Other acts breaking regulations of electricity purchase and sale.

The above are the violations of the electricity purchase and sale contract for both buyers and sellers.

What is the fine for selling electricity without a contract in Vietnam?

At Article 11 of Decree 134/2013/NĐ-CP (amended by Clause 14, Article 2 of Decree 17/2022/NĐ-CP), the following violations of the regulations on retail electricity sales are stipulated:

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6. A fine of VND 40,000,000 to VND 50,000,000 shall be imposed on a retail electricity unit for one of the following violations:

a) Failure to sign a retail electricity sales contract for non-residential purposes within 7 working days without a reasonable reason from the date the electricity buyer has met the requirements and agreed on the contents in the draft contract;

b) Selling electricity without a retail electricity sales contract with electricity users.

Therefore, selling electricity without a retail electricity sales contract is subject to a fine of VND 40,000,000 to VND 50,000,000 under the law.

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