Urgent situations that seriously threaten the capability to ensure electricity supply in Vietnam

Urgent situations that seriously threaten the capability to ensure electricity supply in Vietnam​ (Image from Internet)

On February 08, 2025, the Government of Vietnam promulgated Decree 18/2025/ND-CP, guiding the Electricity Law 2024 related to electricity trading activities and situations ensuring power supply.

Urgent situations that seriously threaten the capability to ensure electricity supply in Vietnam

According to the provisions of Article 8 of Decree 18/2025/ND-CP, the urgent situations seriously threatening the ability to ensure power supply include:

- Occurrence or risk of occurrence of an imbalance between power sources and electricity loads leading to the necessity to stop or reduce electricity supply levels as determined by the national power system regulating unit in the power system operation methods.

- Occurrence or risk of occurrence of a shortage of electrical energy production to meet electricity load, leading to the necessity to stop, reduce electricity supply levels as determined by the national power system regulating unit in the power system operation methods.

- Situations of unavailability of power sources, electric transmission system failures, sudden growth in load demand leading to an imbalance between power sources and electricity loads.

Conditions for organizations and individuals when requesting to enter into electricity trading contracts for residential purposes in Vietnam

Organizations and individuals requesting to enter into electricity trading contracts for residential purposes must meet the specific conditions stipulated in Clause 1, Article 6 of Decree 18/2025/ND-CP, including:

- The party requesting to enter into the contract of the power purchaser must be a legal representative or a person authorized by the power purchaser to execute the contract;

- The party requesting to enter into the contract of the power seller must be a legal representative or a person authorized by the retail electricity unit to meet the demand of the Power Purchaser to execute the contract;

- The party involved in proposing to enter into the contract must ensure the conditions for the validity of civil transactions according to the provisions of the Civil Code 2015. In case of legally incapacitated persons, the legal representative of the incapacitated person shall be the entity participating in proposing to enter into the contract;

- In cases where the power purchaser includes multiple households using electricity together to enter into one contract, the contracting entity of the Power Purchaser is the representative of the joint users who signs the contract and has the written authorization of the other joint users. The contract must clearly state the number of joint users (including a list) and the electricity sale price shall be applied in accordance with electricity law. Authorization must comply with civil law regulations;

- In cases where the power purchaser is a tenant for residential purposes, the contracting entity on behalf of the power purchaser must be the homeowner or the tenant authorized in writing by the homeowner. The homeowner must ensure payment of electricity in case the tenant authorized to execute the contract does not fulfill the payment obligation;

- At a registered power purchase location, if the power purchaser is one household, only one contract can be executed.

More details can be found in Decree 18/2025/ND-CP which takes effect from February 08, 2025.

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