Is there a Circular guiding electricity purchase contracts for domestic purposes from October 16, 2023 in Vietnam?

Is there a Circular guiding electricity purchase contracts for domestic purposes from October 16, 2023 in Vietnam?

On August 31, 2023, the Minister of Industry and Trade issued Circular 16/2023/TT-BCT guiding on electricity purchase contracts for domestic purposes.

According to this Circular, the electricity purchase contract for domestic purposes will be expressed in the form of:

- In writing in paper form (this contract is made into 02 copies of equal value, each party keeps 01 copy) or

- Electronic data (for electronic data, the Electricity Buyer can look up and download at the Electricity Seller's Electronic Information Portal).

The language used in the contract is Vietnamese. The parties may agree to use other Vietnamese ethnic languages ​​or foreign languages. In case there is a difference between the Vietnamese version and other ethnic Vietnamese language versions or foreign language versions, the version more beneficial to consumers shall prevail.

In addition, electricity purchase contracts for domestic purposes must follow the form in the Appendix issued with Circular 16/2023/TT-BCT.

What is determination of term of an electricity purchase contract for domestic purposes in Vietnam?

Article 5 of Circular 16/2023/TT-BCT stipulates the term of domestic electricity purchase contracts as follows:

Term of electricity purchase contract for domestic purposes

The term of the contract is agreed upon by both parties. In case the two parties do not specifically agree on the term of the contract, the term of the contract is calculated from the date of signing to the date of contract termination according to the provisions of law.

Thus, the term of the domestic electricity purchase contract will depend on the agreement between the electricity seller and the electricity buyer in Vietnam.

In case the two parties do not specifically agree on the term of the contract, the term of the contract is calculated from the date of signing to the date of contract termination according to the provisions of law in Vietnam.

Can an electricity purchase contract for domestic purposes signed before October 16, 2023 continue to be implemented in Vietnam?

In Article 7, Circular 16/2023/TT-BCT stipulates the implementation effect as follows:

Enforcement

1. This Circular takes effect from October 16, 2023.

Circular No. 19/2014/TT-BCT dated June 18, 2014 of the Minister of Industry and Trade promulgating the form of Electricity Purchase Contract for domestic purposes and Circular No. 38/2022/TT-BCT dated June 30 December 2022, repealing Clause 1, Article 2 of Circular No. 19/2014/TT-BCT dated June 18, 2014 of the Minister of Industry and Trade promulgating the form of Electricity Purchase Contract for domestic purposes expires from the date this Circular takes effect.

2. Contracts signed before the effective date of this Circular will continue to be implemented until the expiration date stated in the contract. During the implementation process, both parties must still comply with the provisions of the Electricity Law, guiding documents and can agree to add new contents in accordance with the contract according to the form in the Appendix issued herewith. according to this Circular. In case either party or both parties wish to re-sign the contract before the deadline, the two parties shall consider and agree to re-sign the contract. The re-signing of the contract shall comply with the provisions of this Circular.

3. During the implementation process, in case the legal documents referenced in the Circular and the Appendix issued with this Circular are amended, supplemented or replaced by new documents, the following shall apply.

4. During the implementation of this Circular, if there are any problems, relevant organizations and individuals are responsible for requesting the Electricity Regulatory Authority to preside over research and propose the Minister of Industry and Trade to amend and supplement Circulars.

Thus, electricity purchase contracts for domestic purposes signed before October 16, 2023 will continue to be implemented until the expiration date stated in the contract in Vietnam.

What are regulations on subject signing a residential electricity purchase contract?

In Article 4, Circular 16/2023/TT-BCT stipulates the subjects signing residential electricity purchase contracts as follows:

- The person signing the contract of the Electricity Purchaser is the representative of the Electricity Purchaser who meets the prescribed conditions and has a dossier to register to buy electricity for domestic purposes as prescribed in Clauses 1 and 2 of Article 8 Decree 104/2022/ND-CP sent to the Electricity Seller.

- In case the Electricity Purchaser includes many households using electricity together and signs a contract, the entity signing the contract of the Electricity Purchaser is the representative of the number of households using the same electricity to sign the contract and has written authorization from the other households.

Shared households must meet the conditions specified in Clause 1, Article 8 of Decree 104/2022/ND-CP.

The contract must clearly state the number of households sharing (with an attached list) and the electricity price applied according to regulations on implementation of electricity prices issued by the Ministry of Industry and Trade.

- In case the Electricity Purchaser is a tenant of a residential house, the Contracting Entity of the Electricity Purchaser is determined according to the regulations on implementation of electricity selling prices issued by the Ministry of Industry and Trade.

- The person signing the contract of the Electricity Seller is the legal representative or authorized representative of the electricity retailer with a distribution grid capable of providing electricity to meet the needs of the Electricity Buyer.

Best regards!