Vietnam: Supplementing and amending regulations on retail price for domestic purpose

Specifically, according to Clauses 5, 6 Article 1 of Circular No. 25/2018/TT-BCT of the Ministry of Industry and Trade of Vietnam supplementing and amending Article 10 of Circular No. 16/2014/TT-BCT, regulations on retail price for domestic purpose are as follows:

1. Retail price for domestic purpose is applied to households who use electricity for domestic purpose with a power purchase agreement (PPA) signed with the seller. One limit of electricity is applied to each household using electricity in a month.

2. If a buyer is a group of separate households sharing the same meter, total amount of electricity to be billed to such buyer shall be determined by multiplying the amount of electricity of each level by the number of households sharing the same meter.

3. Electricity used for domestic purpose by collective houses for officials, public servants, armed forces, houses for monks, nuns, priests; dormitories, price of electricity shall be applied as follows:

- In case number of occupants is able to be declared (based on temporary residency register or the lists of officers, soldiers with confirmations from heads of the units with respect to the armed forces), every four occupants shall be considered as one household as the basis for application of retail price;

- In case the number of occupants can not be declared, retail price (level 3) shall be applied: From 101-200 kWh for the entire amount of electricity measured at the meter.

4. Electricity used for domestic purposes by tenants, the price of electricity shall be applied as follows:

- Every house for rent shall be made a PPA with the seller. House owners shall be responsible for presenting the tenant’s temporary residency register or any document confirming temporary residency of such tenant issued by police authorities in the administrative division;

- In case tenant is a household: the house owner shall sign a PPA or authorize the household to sign the agreement (with payment commitment included), each household as tenant shall be applied with a limit of electricity;

- In case tenants are students or workers (not a household):

+ If a tenant enters into a lease agreement with a lease period of at least 12 months and has completed procedures for registration of temporary residence, the house owner or the tenant's representative shall enter into a power purchase agreement (accompanied by the house owner's commitment to make electricity bill payment);

+ If the lease period is less than 12 months and the house owner fails to declare the number of occupants using electricity as regulated, the retail price of electricity for domestic purpose at level 3 (from 101 kWh to 200 kWh) shall apply to the total amount of electricity measured by the electric meter.

If the house owner has completed procedures for declaration of the number of occupants using electricity in the house, the electricity seller shall decide the limit on amount of electricity based on the temporary residence register or the document certifying registered temporary residence granted by local police agency; Every four occupants shall be considered as a household for deciding the limit on amount of electricity. To be specific: 01 occupant, 02 occupants, 03 occupants and 04 occupants are regarded as 1/4 of a household, 1/2 of a household, 3/4 of a household and a household respectively. In case of change in the number of occupants, the house owner shall inform the seller to adjust the limit on amount of electricity for calculating electricity bill.

The seller is entitled to monthly inspect and request the buyer to present the temporary residence register to verify the number of occupants in the house.

5. Buyers who buy electricity via a transformer for domestic purpose, domestic electricity price shall be applied.

6. In case the seller is forced to shift the time for recording meter readings (due to some irresistible events), the amount of electricity of each level shall be adjusted according to the actual number of days of a recording period.

7. In case the day of meter readings recording does not coincide with the day of making adjustment to electricity price, the billing based on domestic electricity price shall be done by using interpolation methods as follows:

- Actual amount of electricity used by customers during the meter readings recording;

- Number of actual days of electricity use (the number of days between the two meter recordings, number of days for application of old price and new price);

- Used amount of electricity of each level is calculated between the two meter readings recordings.

8. Domestic electricity price (using prepaid card meter) shall be applied to temporary and short-term buyers for domestic purposes. When technical and legal conditions permit, the retailer shall be responsible for installing prepaid card meters in places where customers have demand for electricity for domestic purpose.

9. If the buyer provides false information in the declaration of the number of occupants with the aims of achieving a higher limit on amount of electricity for domestic purpose, the seller is entitled to claim compensation and impose penalty for breach of the power purchase agreement in conformity with regulations in Circular No. 27/2013/TT-BCT or its amending or superseding documents.

View relevant contents at: Circular No. 25/2018/TT-BCT of the Ministry of Industry and Trade of Vietnam takes effect from October 26, 2018.

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