Vietnam: In all cases of disconnection of the electricity supply, the electricity seller must notify the electricity buyer in advance

Specifically, according to Article 4 of Circular No. 22/2020/TT-BCT of the Ministry of Industry and Trade of Vietnam, in all cases of disconnection or reduction of the electricity supply, the electricity seller must notify the electricity buyer in advance. Notification of electricity supply disconnection or reduction must contain the followings:

+ Location for disconnection or reduction of electricity supply; reduced electricity level or maximum supply capacity in case of reduced electricity supply;

+ Reasons for disconnection or reduction of electricity supply;

+ Time of commencement of disconnection or reduction of electricity supply;

+ Scheduled time of electricity supply reconnection or recovery of normal electricity supply.

- The person acting on behalf of the electricity seller to sign the notification of electricity supply disconnection or reduction must be one of the following persons:

+ Legal representative or authorized representative of the electricity seller;

+ The title holder authorized to sign the notification of electricity supply suspension or reduction as agreed upon by the two parties under the electricity purchase and sale contract.

- Notification of electricity supply disconnection or reduction shall be made in one of the following forms: written letters, telegraphs, phone, faxes, text messages (SMS), emails or other tools of mass communication or other means of communication as agreed upon by the two parties and stated in the electricity purchase and sale contract.

Note: 02 cases in which the electricity seller is not required to notify the electricity buyer in advance

Case 1: Emergency electricity supply disconnection and reduction

- There is an incident in the electricity grid supplying electricity to the buyer; an incident in the electricity system causing electricity failure beyond the electricity seller’s control.

- There is a risk of serious breakdown and unsafety to people, equipment and the entire electricity system.

- There is a lack of capacity in the electrical system, leading to a threat to the electricity system security.

- Force majeure event occurs.

Case 2: Disconnection of electricity supply by virtue of violation of organizations or individuals against laws

- The electricity seller commits acts prescribed in:

+ Clauses 1, 4, 5, 6, 7 and 8, Article 7 of the Electricity Law of Vietnam (Prohibited acts in electricity operations and use);

+ Point a and b of Clause 2 of Article 46; Point b and c of Clause 2 of Article 47 in the Electricity Law.

- The electricity buyer fails to pay electricity bills according to the provisions of Clause 9 of Article 1 of the Law on Amendments and Supplements to a number of articles of the Electricity Law.

- At the request of competent state agencies to take enforcement measures to disconnect electricity supply in accordance with Article 43 of Decree No. 134/2013/NĐ-CP dated October 17, 2013 of Vietnam’s Government providing for penalties for administrative violations in the field of electricity, hydroelectric dam safety, economical and efficient use of energy.

- The electricity buyer fails to provide security for fulfillment of contractual obligations or fails to maintain contract performance bond under Decree No. 137/2013/NĐ-CP dated October 21, 2013 of Vietnam’s Government elaborating on the implementation of certain articles of the Law on Electricity and the Law on Amendments to certain Articles of the Law on Electricity.

View details at: Circular No. 22/2020/TT-BCT of the Ministry of Industry and Trade of Vietnam takes effect from October 30, 2020.

Le Vy

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