Vietnam: How are penalties for selling electricity without sale contract?

On October 17, 2013, the Government of Vietnam issued the Decree No. 134/2013/NĐ-CP stipulating the sanction against administrative violation in the field of electricity, safety of hydroelectric dam, thrifty and effective use of energy.

According to Clause 4 Article 11 of the Decree No. 134/2013/NĐ-CP of Vietnam’s Government, a fine of between 10,000,000 dong and 15,000,000 dong shall be imposed on the power retailer for selling electricity without sale contract with customers using power.

This fine shall also be imposed on the power retailer for:

- Failing to sign the electricity sale contract except for domestic use after 07 working days without any plausible reason after the electricity buyer for domestic use ensures the conditions and agrees with the contents in the draft contract.

- Stopping or reducing the power supply without notice under regulation on the order of stoppage or reduction in power supply.

Quy định giải quyết tranh chấp hợp đồng mua bán điện

Besides, Decree No. 134/2013/NĐ-CP of Vietnam’s Government also stipulates violations of regulation on electricity retailing as follows:

- A caution or a fine of between 300,000 dong and 500,000 dong shall be imposed on the acts of inspecting organizations and individuals without producing electricity inspector card or without having inspection Decision of the electricity Unit.

- A fine of between 2,000,000 dong and 6,000,000 dong shall be imposed on the power retailer for one of the acts as follows:

+ Failing to publicly post up at the power trading places the regulations of law on electricity tariff; procedures for power supply, metering, meter reading, collection of electricity charge and completion of electricity services; regulations on stoppage and reduction in power supply; instruction about electricity safety;

+ Failing to sign the electricity sale contract after 07 working days without plausible reason after the electricity buyer for domestic use ensures the conditions and agrees with the contents in the draft contract.

- A fine of between 6,000,000 dong and 10,000,000 dong shall be imposed on the power retailer for the acts of preventing the public affair enforcer from examining or inspecting the electricity sale.

- A fine of between 20,000,000 dong and 30,000,000 dong shall be imposed on the electricity retailer for failing to sell the electricity at the price specified by the competent authority.

- A fine of between 30,000,000 dong and 40,000,000 dong shall be imposed on the acts of occupational abuse to harass organizations and individuals using power for benefits.

- A fine of between 40,000,000 dong and 50,000,000 dong shall be imposed on the electricity retailer for the acts of buying electricity from the electricity Unit which does not have its electricity operation Permit.

- A fine of between 50,000,000 dong and 60,000,000 dong shall be imposed on the electricity retailer for the acts of electricity import, export without electricity import, export Permit.

In addition to the main forms of sanction, the electricity retailer is also subject to the remedial measures to coercively make payment to the state budget of the amount illegally obtained from the electricity export without electricity import, export Permit.

View full text at Decree No. 134/2013/NĐ-CP of Vietnam’s Government, effective from December 01, 2013.

Thu Ba

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