Two Conditions for Signing a Power Purchase Agreement for Household Purposes

Decree 137/2013/ND-CP stipulates that an electricity purchase contract for residential purposes is concluded when the following 02 conditions are met:

Illustrative image (source: internet)

- The electricity buyer must have full civil act capacity according to the provisions of law and must submit an application for electricity purchase accompanied by a copy of one of the following documents: permanent residence household registration, or temporary residence book; certificate of house ownership or house allocation decision; valid house purchase contract; house rental contract with a term of 01 year or more; Land use rights certificate (for land with houses on it); notarized or authenticated house management and use authorization contract;- The electricity seller must have a distribution grid capable of supplying electricity to meet the needs of the electricity buyer.

The electricity seller must conclude the contract and supply electricity to the electricity buyer within 07 working days when the above-mentioned conditions are met. The Ministry of Industry and Trade issues the standard electricity purchase contract for residential purposes.

In cases where there is no distribution grid or the distribution grid is overloaded as confirmed by the Electricity Regulatory Authority or an authorized agency, the electricity seller must respond to the electricity buyer within 05 working days, specifying the projected time for electricity supply.

Additionally, this Decree also stipulates provisions to ensure the performance of the electricity purchase contract. Specifically:

- The electricity buyer, who is an electricity customer with an average electricity consumption of 1,000,000 kWh/month or more, is responsible for implementing measures to ensure the performance of the contract before the electricity purchase contract takes effect.- The value of the guarantee to perform the contract is agreed upon by the electricity buyer and seller but shall not exceed 15 days of electricity charges, calculated based on the average monthly electricity consumption registered in the electricity purchase contract and the normal-hour electricity price applied.- Measures, forms, effectiveness of guarantees, and the rights and obligations regarding the guarantee are specifically agreed upon by the parties in the electricity purchase contract; the use of bank guarantees is encouraged.- The electricity seller is entitled to stop supplying electricity to the electricity buyer in case the electricity buyer fails to implement measures to ensure contract performance or to maintain such measures.

The provisions on ensuring the performance of the electricity purchase contract do not apply to electricity purchase contracts that took effect before this Decree came into effect, except for electricity purchase contracts where the parties have agreed on ensuring the performance of the contract.

More details can be found in Decree 137/2013/ND-CP, effective from December 10, 2013.

Thu Ba

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE