Decree 18/2025/ND-CP detail Electricity Law concerning electricity purchase and sale and situations requiring electricity supply assurance

DECREE

Detailing a number of articles of the Electricity Law concerning electricity purchase and sale and situations requiring electricity supply assurance

Pursuant to the June 19, 2015 Law on Organization of the Government;

Pursuant to the November 22, 2019 Law Amending and Supplementing a Number of Articles of the Law on Organization of the Government and the Law on Organization of Local Administration;

Pursuant to the November 30, 2024 Electricity Law;

At the proposal of the Minister of Industry and Trade;

The Government promulgates the Decree detailing a number of articles of the Electricity Law concerning electricity purchase and sale and situations requiring electricity supply assurance.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

This Decree details a number of articles of the Electricity Law, including:

1. Clause 6, Article 44 on security measures for performance of, and electricity quality under, electricity purchase and sale agreements for purposes other than household use; conditions for conclusion of electricity purchase and sale agreements for household use.

2. Clause 7, Article 48 on recording of electricity consumption meter readings.

3. Clause 5, Article 53 on emergency situations that seriously threaten the electricity supply assurance.

Article 2. Subjects of application

This Decree applies to agencies, organizations and individuals carrying out electricity activities and using electricity in Vietnam.

Chapter II

SECURITY MEASURES FOR PERFORMANCE OF, ELECTRICITY QUALITY UNDER, AND CONDITIONS FOR CONCLUSION OF, ELECTRICITY PURCHASE AND SALE AGREEMENTS FOR HOUSEHOLD USE, RECORDING OF ELECTRICITY CONSUMPTION METER READINGS

Article 3. Security measures for performance of electricity purchase and sale agreements

1. Electricity purchasers that are electricity customers with an average electricity consumption amount of 1,000,000 kWh/month or more as registered in electricity purchase and sale agreements shall implement security measures for the performance of electricity purchase and sale agreements before these agreements take effect. In case the average electricity consumption amount registered in an electricity purchase and sale agreement is lower than such level, but the actual average electricity consumption amount in the last 12 months is 1,000,000 kWh/month or more, the electricity purchaser shall coordinate with the electricity seller in modifying the signed electricity purchase and sale agreement in order to add the content on agreement performance security and implement security measures for the agreement performance before the modified agreement takes effect. Every year, the electricity seller and the electricity purchaser shall reach agreement on the value of the security for the agreement performance in conformity with the average electricity consumption amount in the previous 12 consecutive months.

2. The value of the security for the agreement performance agreed upon by the electricity purchaser and the electricity seller must be equal to between 10 and 15 days’ electricity bill calculated on the basis of the average monthly electricity consumption amount registered in the electricity purchase and sale agreement or the average monthly electricity amount actually consumed in the last 12 months and the electricity price applied during normal hours.

3. Measures, forms, validity duration of the security, rights and obligations in the security for the agreement performance are specifically agreed upon by the parties in the electricity purchase and sale agreement; it is encouraged to implement the agreement performance security being bank guarantee.

4. The provisions on agreement performance security for electricity purchase and sale agreements do not apply to customers that use electricity for the purpose of supplying electricity to working offices of state agencies, public non-business units, armed forces units, political organizations and socio-political organizations.

Article 4. Responsibility to ensure electricity quality of electricity purchasers for purposes other than household use

1. Electricity purchasers shall ensure that their electrical equipment satisfies electricity quality requirements under the electrical engineering standards promulgated by the Minister of Industry and Trade.

2. Parties purchasing electricity for production and business activities and having their own power stations or having the maximum consumption output of 40 kW or more in 3 consecutive cycles of recording electricity consumption meter readings shall:

a/ Register electricity load diagrams and technical and technological specifications of their electrical appliances with electricity sellers;

b/ Ensure that the power factor cosφ is equal to or greater than 0.9 at the positions of installing electricity meters on the condition that the electricity system ensures the electricity quality under the Minister of Industry and Trade’s regulations. In case this factor is smaller than 0.9, the electricity purchaser shall additionally purchase a reactive power output on the electricity seller’s electricity system under Article 5 of this Decree;

c/ Ensure conformity with technical standards on harmonics, voltage fluctuations and voltage flickers under the regulations on electricity transmission, distribution and metering systems promulgated by the Minister of Industry and Trade.

3. In case the electricity purchaser is capable of generating a reactive power on the electricity system and the electricity seller has a need to buy such reactive power, the two parties may reach an agreement on the purchase and sale of reactive power under the electricity purchase and sale agreement.

4. In case the electricity purchaser requires a power quality higher than that specified in the Ministry of Industry and Trade’s regulations, the electricity purchaser and electricity seller may reach agreement and specify the electricity quality requirement in their electricity purchase and sale agreement.

Article 5. Reactive power purchase and sale

1. Parties purchasing electricity for their production and business and having their own power stations or registering the maximum consumption output of 40 kW or more in electricity purchase and sale agreements and having power factor cosφ lower than 0.9 shall purchase reactive power. The method of determining power factor cosφ is specified in Clause 2 of this Article.

In case an electricity purchaser registers the maximum consumption output of under 40 kW in its/his/her electricity purchase and sale agreement but has the maximum actual consumption output of 40 kW or more in 3 consecutive cycles of recording meter readings, it/he/she shall purchase reactive power from the meter reading cycle following the above 3 cycles. The electricity purchaser shall renew the electricity purchase and sale agreement with the electricity seller under Clause 2, Article 4 of this Decree.

2. The power factor cosφ used to determine reactive power purchase by an electricity purchaser shall be calculated on the basis of data shown on the electricity meter in a meter reading cycle specified in Section 1 of the Appendix to this Decree.

3. In case an electricity purchaser signs an agreement for more than one electricity meters in a location supplied by a single power line, the real power is the total real power output of these meters and the reactive power is the total reactive power output of these meters.

4. In case an electricity purchaser uses electricity for other purposes other than for production and business activities, the power factor cosφ shall be determined as follows:

a/ When there is a meter measuring the electricity output used for production or business, the reactive power purchase only applies to the electricity output used for such purpose.

b/ When there is no meter measuring the electricity output used for production or business but there is a meter measuring electricity output used for all purposes, if the power factor cosφ is lower than 0.9, the electricity purchaser shall purchase reactive power for the electricity output used for production or business. The electricity amount used for production or business shall be determined by subtracting the measured electricity output from the electricity output used for other purposes which is calculated on the consumption output and duration of electrical equipment serving other purposes as agreed upon by the two parties in the electricity purchase and sale agreement.

5. Charge for reactive power is the money amount the electricity purchaser shall pay to the electricity seller to cover costs additionally incurred as the purchaser uses electricity in excess of the specified reactive power calculated according to the formula specified in Section 2 of the Appendix to this Decree.

6. The electricity purchaser shall pay reactive power charge concurrently with real power charge. Overdue reactive power payments shall be handled similarly as overdue real power payments.

7. In case the electricity seller fails to ensure the electricity quality under regulations of the Ministry of Industry and Trade, the electricity purchaser is not required to purchase reactive power when the power factor cosφ is lower than 0.9.

Article 6. Conditions for concluding electricity purchase and sale agreements for household use

1. If offering to conclude an electricity purchase and sale agreement for household use, an organization or individual must satisfy the following conditions:

a/ The electricity purchaser’s person offering to conclude the agreement must be its/his/her legal or authorized representative to conclude the agreement;

b/ The electricity seller’s person offering to conclude the agreement must be the legal or authorized representative of the electricity retailer that meets the electricity purchaser’s need to conclude the agreement;

c/ Persons jointly offering the conclusion of the agreement must satisfy the conditions on the effect of civil transactions specified in the Civil Code. In case a person loses his/her civil act capacity, his/her legal representative may participate in offering the conclusion of the agreement;

d/ In case the electricity purchaser that consists of more than one household using electricity concludes an agreement, the electricity purchaser’s person to conclude the agreement is the representative authorized in writing by all households. The agreement must clearly state the number of households participating in the agreement (with an attached list) and the electricity selling price to be applied in accordance with the electricity law. The authorization must comply with the civil law;

dd/ In case the electricity purchaser is a house lessee for residential purpose, the electricity purchaser’s person to conclude the agreement is the house owner or the lessee authorized in writing by his/her house owner. The house owner shall pledge to pay the electricity bill if the lessee authorized as the person to conclude the agreement fails to fulfill the payment obligation;

e/ In a given location of registration for electricity purchase, the electricity purchaser being a household may only conclude 1 agreement.

2. An electricity purchaser shall make a dossier of request for conclusion of an electricity purchase and sale agreement for household use in the paper form or in the form of a data message with the same legal validity as the paper form in accordance with law, and send 1 dossier set to the electricity purchaser in case of dossier in the paper form. A dossier of request for conclusion of an electricity purchase and sale agreement must comprise:

a/ A request for conclusion of the electricity purchase and sale agreement;

b/ A personal identification number of the legal representative or authorized representative of the electricity purchaser formulated by the national population database. In case it is impossible to look up such information on the national database, it is required to submit a copy of the identity card or citizen identity card or people’s identity card or a written certification of the residential information of the representative which has the information on residence of the household in the location of electricity purchase, or one of the following papers: a house title document, a certificate of land use rights (for land with ready-built houses); a decision on house allocation; a house sale and purchase contract; a house rent contract with a term of 1 year or more or other documents proving the right to own, manage and use the location of electricity purchase with a term of 1 year or more for registration of electricity purchase.

3. An electricity seller shall conclude an electricity purchase and sale agreement and supply electricity to an electricity purchaser within 7 working days after the involved parties satisfy the conditions specified in Clauses 1 and 2 of this Article.

Article 7. Recording of electricity meter readings

1. For electricity purchase and sale for household use, an electricity seller shall record the electricity meter readings once a month on a fixed date as agreed upon by both parties in the electricity purchase and sale agreement, except cases of force majeure events that pose a risk to the safety of employees as stated in the agreement. The date of electricity meter reading recording may be adjusted, one day before or after the fixed date or as agreed upon in the electricity purchase and sale agreement.

2. For electricity purchase and sale for the purposes other than household use, the electricity purchaser and seller may reach agreement on the number of times of electricity meter reading recording in a month. In case the two parties cannot reach agreement, the electricity meter reading recording shall be based on the average electricity consumption output registered in the electricity purchase and sale agreement as follows:

a/ Recording once a month, for the average electricity consumption output of under 50,000 kWh/month;

b/ Recording twice a month, for the average electricity consumption output of between 50,000 and 100,000 kWh/month;

c/ Recording thrice a month, for the average electricity consumption output of over 100,000 kWh/month.

3. In case the actual average electricity consumption output of the electricity purchaser for purposes other than household use in the last three months exceeds or is lower than the consumption threshold corresponding to the number of times of electricity meter reading recording specified at Points a, b and c, Clause 2 of this Article, the electricity purchaser and seller may agree to adjust the number of times of electricity meter reading recording.

4. For an electricity purchaser consuming under15 kWh per month, the cycle of electricity meter reading recording shall be agreed upon by the two parties.

5. For electricity wholesale, the electricity meter reading recording shall be agreed upon by the two parties in the agreement.

6. Electricity sellers shall ensure the accuracy of recorded electricity meter readings.

Chapter III

EMERGENCY SITUATIONS THAT SERIOUSLY THREATEN THE ELECTRICITY SUPPLY ASSURANCE

Article 8. Emergency situations that seriously threaten the electricity supply assurance

1. The occurrence or risk of output imbalance between the power source and power load that leads to the suspension or reduction of electricity supply as determined by the National Power System Dispatch Unit in the power system operation methods.

2. The occurrence or risk of shortage of electricity output to meet the power load that leads to the suspension or reduction of electricity supply as determined by the National Power System Dispatch Unit in the power system operation methods.

3. Situations of power source unavailability, power transmission system incidents, and sudden growth in power load demand leading to the imbalance between the power source and power load.

Chapter IV

EFFECT

Article 9. Effect

1. This Decree takes effect from the date of signing.

2. The provisions on electricity purchase and sale agreements for household use specified in Article 11 of Decree No. 137/2013/ND-CP, amended and supplemented under Article 8 of Decree No. 104/2022/ND-CP, and provisions on security measures for the performance of electricity purchase and sale agreements, electricity quality and electricity meter reading recording specified in Articles 12, 15 and 17 of Decree No. 137/2013/ND-CP, cease to be effective from the effective date of this Decree.

3. Electricity purchase and sale agreements concluded before the effective date of this Decree may continue to be implemented. Customers who have implemented security measures for the performance of electricity purchase and sale agreements specified in Decree No. 137/2013/ND-CP in the case specified in Clause 4, Article 3 of this Decree, may request electricity sellers to revise these agreements under this Decree.-

On behalf of the Government

For the Prime Minister

Deputy Prime Minister

BUI THANH SON