Cases of exemption from electricity activity licenses in Vietnam

Cases of exemption from electricity activity licenses in Vietnam (Internet image)

1. What is electrical activity?

According to Clause 1, Article 3 of the Electricity Law 2004, electricity activities mean activities of organizations or individuals in the domains of electricity development planning, investment, electricity generation, electricity transmission, electricity distribution, electric system regulation, electricity market transaction administration, electricity wholesaling and retailing, specialized electricity consultancy and other relevant activities.

2. Prohibited acts in electricity activities and electricity use in Vietnam

Prohibited acts in electricity activities and electricity use under Article 7 of the Electricity Law 2004 are as follows:

- Destroying electrical equipment and facilities, electricity-measuring or counting equipment or electricity works.

- Conducting electricity activities without permits as provided for by the Electricity Law 2004.

- Switching on, switching off electricity supply illegally.

- Violating the regulations on safety in electricity generation, transmission, distribution and use.

- Obstructing the inspection of electricity activities and use.

- Stealing electricity.

- Using electricity as animal traps or protection means, except for cases prescribed in Article 59 of the Electricity Law 2004.

- Violating the regulations on protection of electricity grid safety corridors, on safe distances of transmission tines and transformer stations.

- Supplying untruthful information, thus causing harms to the legitimate rights and interests of organizations or individuals conducting electricity activities or using electricity.

- Abusing positions and/or powers to harass for bribes, cause troubles, earn illicit profits in electricity activities and/or electricity use.

- Other acts of violation prescribed by electricity legislation.

3. Cases of exemption from electricity activity licenses in Vietnam

Cases of exemption from electricity activity licenses under Article 34 of the Electricity Law 2004 (amended 2012) are as follows:

- The following cases shall be exempt from electricity activity licenses:

= Organizations or individuals invest in the construction of electricity-generating establishments for their own use, not for sale of electricity to other organizations or individuals;

= Organizations or individuals engaged in electricity generation with the installation capacity below the level prescribed by the industry Ministry;

= Organizations, individuals dealing in electricity in rural areas, mountainous regions, islands, that buy electricity with output smaller than 50 kVA from the electricity distribution grids for direct sale to electricity-using customers in rural areas, mountainous regions or islands;

= The national electric system-regulating unit and the electricity market transaction- administering unit.

- Orqanizations and individuals exempt from electricity activity licenses under the provisions of Clause 1 of Article 34 of the Electricity Law 2004 (amended 2012) must comply with the procedures and regulations on operation management, regulations on electricity prices, technical conditions and safety prescribed in the Electricity Law 2004.

- The provincial-level People's Committees shall have to manage and inspect organizations and individuals engaged in electricity activities prescribed at Points a, b and c, Clause 1 of Article 34 of the Electricity Law 2004 (amended 2012).

4. Contents of an electricity activity license in Vietnam

The contents of an electricity activity license under Article 35 of the Electricity Law 2004 are as follows:

- Name and head-office address or the organization or individual licensed for electricity activities.

- Form of electricity activities.

- Rights and obligations of the organization or individual licensed for electricity activities.

- Scope of electricity activities.

- Techniques and technologies used in electricity activities.

- The term of the electricity activity license.

5. Withdrawal of electricity activity licenses in Vietnam

According to Article 37 of the Electricity Law 2004, an organizations and individuals shall have their electricity activity licenses withdrawn in the following cases:

- Failing to deploy activities six months after being granted the electricity activity on licenses;

- Failing to ensure electricity activity conditions as provided for by the Electricity Law 2004;

- Failing to comply with the contents prescribed in the electricity activity licenses;

- Leasing, lending or modifying without permission their electricity activity licenses.

Quoc Dat

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