DECREE

ON GUIDING THE ELECTRICITY LAW

THE GOVERNMENT

Pursuant to the December 25, 2001 Law on Organization of the Government;
Pursuant to the December 3, 2004 Electricity Law;
At the proposal of the Minister of Industry,

DECREES:

Article 1: Application scope

This Decre details and guides the implementation of a number of articles of the Electriceity Law on large power plants of particular significance; the responsibility for investment in the construction of power stations; the management of electricity demands; the conservation of electricity; electricity sale and purchase contracts; the assurance of electric power quality; the metering of electricity, payment of electricity charges, sale and purchase of electricity with foreign countries, electricity prices; electricity activity licenses; electricity safety; supports for electricity units and contents of State management of electricity-related activities and electricity use.

Article 2: Large power plants of particcular significance:

...

...

...

a/ Nuclear power plants; Large fower plants of particular

b/ Anumber of hydro-electric power plats.

2. The Ministry of Industry shall submit to the Prime Minister for approval lists of power plants defined in Clause 1 of this Article.

Article 3: Responsibilities for investment in the construction of power stations

1. Electricity-generating units shall have to invest in the construction of switching stations and transformer stations under their management, compatible with electricity- generating technological equipment and facilities for connection to the electric system, unless otherwise agreed.

2. Electricity-transmiting and distributing units shall have to invest in the construction of transformer station, switching stations and reative power-compensation statons under their management. Unless otherwise agreed.

Article 4. Construction, improvement of power grids for conservation of electricity

1. New power lines and transformer station for power transmission and distribution must be designed for use of technical and technological equipment and facilities compatible with regulations, branch standards, Vietnamese standards or equivalent or higher foreign standards, which are permitted by competent State agencies for application in Vietnamese.

2. Electricity-transmiting and distributing units shall have to map out plans and roadmaps for improvement and upgrading of power lines and transformer station for electricity transmission and distribution so as to ensure economic-technical criteria under regulations.

...

...

...

The management of electricity demands provided for at Point a, Clause 1, Article 16 of the Electricity Law means activities of encouraging or guiding the change of electricity-use manners, raising the eficiency of electric equipment, combating waste and reducing loss of electric power, reducing peak loak load and load diffierence between peak hours and off-peak hours.

Article 6. Responsibilities for managament of electricity demands

1. The Ministry of Industry shall have to:

a. Elaborate and submit to the Prime Minister for approval a national target program on electricity demand management and guide and organize the implementation thereof.

b. Promulgate branch standrds and legal documents on managament of electricity demands;

c. Guide electricity units in elaborating plans and programs on management, modes of management, of electricity demands.

2. The Ministry of Science and Technology shall have to promulgate Vietnamese standards on electricity-conservation norms for electric equipment.

3. The Ministry of Construction shall have to promulgate technical standrds on effciency of electricity use in buildings.

4. The Ministry of Finance shall have to formulate financial mechanisms to encourage and support electricity demand management as wel as research and development activities related thereto.

...

...

...

a/ Organize the management of electricity demands;

b/ Report the results of implemention of plans for electricity demand management according to regulations of the Industry Ministry.

6. Electricity-using customers shall have to particpate in the implemention of contents of electricity demand-management programs.

Article 7. Contracts of sale and purchase of electricity for daily life

1. Conditions for signing of contracts of sale and purchase of electricity for daily life:

a/ The electricity purchaser must have full civil act capacity as provided for by law and file his/her electricity-purchase written request enclosed with copy of one of the following papers: household registration book or temporary residence certificate, hous ownership certificate or hour renting contract;

b/ The electricity seller has a power grid for electricity distribution, fully capable of supplyimg electricity to meet the electricity purchaser demand.

2. The electricity seller must sign a contract and supply electricity to the electricity purchaser within seven working days affter the latter has met the conditions stipulated at Point a, Clause 1 of this Article. If having no grids for electricity distribution or overloaded grids as certified by the electricity-regulating body, the electricity seller must reply the electricity purchaser within five working days, clearly stating the expected time for electricity supply.

3. The Ministry of Industry shall issue forms of contract of sale and purchse of electricity for daily life.

...

...

...

1. Violations committed by the electricity seller include:

a/ Delaying the supply of electricity after the electricity sale and purchase contract has been signed;

b/ Failing to ensure the quality and quality of electric power, the stability of electric power, the stability in the supply of electricity under signed contract, except force majeure cir cumstanes.

c/ Ceasing or reducing the supply of electricity at variance with the provision of Article 27 of the Electricity Law;

d/ Failing to notify, according to regulations, the electricity purchaser of grid incidents, except force majeure circumstances;

dd/ Delaing the supply of electricity for the customer works that have met all operation conditions;

e/ Wrongly recording electricity meter readings; wrongly calculating electricity charge amounts in bills; selling electricity at wrong prices;

g/ Using metering devices not up to the prescribed standards;

h/ Using without permission electric works of the electricity purchase for the supply of electricity to other electricity-using organizations and/or individuals;

...

...

...

k/ Delaying or refusing to pay compensations to the electricity purchaser for damage caused by the sellers fauls;

l/ Other acts of violating the regulations of electricity sale and purchase.

2. Violations committed by the electricity purchaser include:

a/ Delaying the implementation of the signed contract in case of purchasing electricity for resale to electricity-using organizations or individuals;

b/ Using electricity for purposes other than those stated in the contract;

c/ Failing to cut off electricity or reduce electricity consumption levels when so requested by the electricity seller due to force majeure incidents;

d/ Using electricity in excess of the capacity already registered in the load diagram and stated in the electricity sale and purchase contract at peak hours;

dd/ Additionally using, without permission of the electricity seller, electric sources other than those stated in the contract;

e/ Shutting down, switching off, repairing or relocating electric equipment and grid works of the electricity seller;

...

...

...

h/ Damaging electric equipment or electric works of the electricity seller;

i/ Delaying the payment of electricity charges under regulations without plausible reasons;

k/ Causing incidents to the power grids of the electricity seller,

l/ Cheating in the use of electricity in any form;

m/ Delaying or refusing to pay compensation to the electricity seller for damage caused by his/her/its faults;

n/ Other acts of violating the regulations on electricity sale and purchase.

3. The Ministry of Industry shall guide the order of, and procedures for, the settlement of disputes over electricity sale and purchase contracts when concerned parties request competent agencies or organizations to settle them.

Article 9. Electric power quality

1. The electricity seller must ensure the quality of electric power supplied to the electricity purchaser according to the following criteria:

...

...

...

b/ On frequency: Under normal conditions, the permitted frequency difference of the electric system is 0.2 Hz, compared to the nominal frequency of 50 Hz. In case of incedent is 0.5 Hz.

2. The purchaser of electricity for production, business with the maximum output of 80 kW or higher or transformer capacity of 100 kWA or higher shall have to:

a/ Register the load diagram and technological properties of electric equipment with the electricity seller;

b/ Ensure the coefficient of cosφ ≥ 0.85 at the position of electricity-metering equipment under the condition that the electric system is capable of ensuring electric power quality according to the provisions of clause 1 of this Article;

c/ Install reactive power compensation equipment in case of coefficient cosφ< 0.85 so as to raise this coeffcient to cosφ ≥0.85 or higher or purchase more reactive power from the electric system of the electricity seller.

3. In cases where the electricity purchaser is capable of generating reactive power on the electric system, the two parties may reach agreement on the purchase and sale of reactive power through a contract.

The Ministry of Indutry shall assume the prime responsibility for, and coordinate with the Ministry of Finance in, guiding the purchase and sale of reactive power provided for in this Article.

4. The electricity purchaser and seller may reach agreement on electric power quality with criteria other than those specified at Poits a and b, Clause 1 of this Article.

Article 10. Metering of electricity

...

...

...

2. When changing electricity meters, the electricity purchaser and seller must together sign minutes to certify meter readings.

3. In cases where electricity meters are lost or damaged, causing power outage, the two parties shall make minutes thereon to determine the causes thereof and the responsibilities of concerned paities. If unable to attribute power putage to the faults of the electricity purchaser, the electricity seller shall have to repair or replace old meters with new ones and continue supplying electricity to the purchaser.

Article 11. Recording of electricity meter readings

1. With regard to electricity used for daily-life purposes, the electricity seller shall record electricity meter readings once a mouth on a given date and may shift to the date before or after this date as well, excep for force majeure cases.

2. For electricity used for purposes other than daily-life purposes, the electricity seller shall record electricity smeter reading as as follows:

a/ Once a mouth, for readings of under 50,000 kWh/mouth;

b/ Twice amonth, for readings of between 50,000 and 100,000kWh/mouth;

c/ Thrice a mouth, for readings of over 100,000 kWh/mouth.

3. For the electricity purchaser that uses less than 15 kWh/mouth, the recording of electricity meter readings shall be agreed upon by the two parties.

...

...

...

5. The electricity saller miust ensure the accuracy of recorded electricity merter readings.

Article 12. The electricity purchasers responsibility to protect electricity meter

1. To protect electricity meters under their management as agreed upon in the electricity sale and purchase contract. To pay compensation if electricity meters are lost and pay costs of repair and expertise if such meters are damaged.

2. Not to remove or relocate electricity meters without permission. If wishing to relocate electricity merters, to get consent of the electricity seller and bear relocation costs.

Article 13. Expertise of electricity-metering equipment which is complained about

1. Provincial/municipal industry services shall be the agencies performing the State management of electricity-related activites and electricity use in localities, responsible for organizing the experties of the electricity-metering equipment at the request of the electricity purchaser accoding to the provisions of clause 3, Article 25 of the Electricity Law.

2. In dependent organizations expertizing electricity-metering equipment mean organizations with no rights and interests related to electricity sellers and purchasers, and not yet involved in the expertise of electricity-metering equipment being comlained about.

Article 14. Payment of electricity charges

1. Bills for payment of electricity charges shall be made simultaneously with the recording of electricity meter readings.

...

...

...

b/ If being unble to determine accurately the excessive duration, the electricity seller must return the excessive electricity charge amount corresponding to four periods of electricity meter- reading recording, including the period when electricity is being used but the reading-recording date has not come yet.

3. In cases where electricity meters have been lost or ceaased operation but the electricity purchaser still uses electricity, the payable electricity charge amount shall be calculated by multiplying the daily average electricity-comsumption amount in the three preceding periods of meter-reading by the actual number of days of electricity use. The actual number of days of electricity use shall be counted from the last day of meter-reading to the day when electricity meters resume operation.

4. Agencies and organizations compentent to organiza conciliation according to the provitions of Clause 5, Article 23 of the Electricity Law are provincia/munnitipal Industry Services or other agencies or organizations as agreed upon by the two paities.

Article 15. Sale and purchase of electricity with foreign countries

1. The authority competent to permit the sale and purche of electricity with foreigns defen\ined in Clause 1, Article 28 of the Electricity Law is the Prime Minister.

2. The Ministry of Industry shall consider electricity units requests for sale and purchase of electricity with foreign countries and submit them to the Prime Minister for decision.

Article 16. Electricity retail prices

1. The electricity retail prices applied by electricity retailers that purchase electricity retailers that purchase electricity wholesale through the national electric system for direct sale to electricity-using customers shall comply with price levels in the electricity retail price table approved by the Prime Minister.

2. The electricity retail prices applied by independent electricity-generating units that sell electricity directly to electricity-using customers shall be agreed upon by the two paities but not exceed the price brackets in the electricity retail price table approved by the Prime Minister.

...

...

...

4. The electricity retail prices applied to major electricity-using customers in the compentitive electricity wholesale and retail markets are prescribed as follows:

a/ For electricty purchased via term contracts, such prices shall be agreed upon by the two paities but not exceed the price brackets in tne Prime Minister;

b/ For electricity purchased under spot contracts in the market at the time of transaction, such prices shall be annouced by units adminisering transactions on the electricity market.

Article 17. Consultation on electricity retail price tables

1. The electricity-regulating body shall have to organnize consultation with concerned agencies, organization and customers on electricity retail price tables.

2. The Ministry of Industry shall guide the order of, and procedures for, consultation on electricity retail price tables.

Article 18. Time limit for evaluating and deciding electricity retail price tables

1. Within 7 working days affter receiving the complete and valid dossiers, the Finance Ministry shall have to give written evaluation of electricity retail price tables.

2. Within 15 working days affter receiving the electricity retail price tables, which have been commented by concerned ministries and branches, and the written evaluation of the Finance Ministry, the Prime Minister shall decide on the approval of such tables.

...

...

...

4. The Ministry of Industry shall guide measures of formulation, examination and submission for appro val of electricity retail price tables.

Article 19. Promulgation of electricity retail price tables

1. The electricity-regulating body shall have to publicize on the mass media or in ther forms of communication new electricity retail price tables affter they are approved by the Prime Minister.

2. Electriccity units must post up electricity relail price tables at thei head offices and transation spots.

Article 20. Electricity-generating and wholesaling prices

1. Electricity-generating and-wholesaling prices under forward contracts of electricity sale and purchase shall be decided by electricity units themselves according to agreement betwween electricity sellers and purchasers but not exceed the price brackets already approved by competent State agecies.

2. Under the condition thet electricity that electricity-generating and- wholesaling units are interdependent, neither substituting nor competing with one another in the market, at the request of the electricity seller or the electricity purchaser in case they fil to reach agreement on the sale and purchase price for signing a term contract on electricity sale and purchase or at the request of the Prime Minister, the Industry Ministry shall coordinate with the Finance Ministry in organizing a price negotiation according to current provisions of law. The results of price negotiation agreed upon by concerned paities shall serve as a basis for the electricity purchaser and seller to conclude forward contracts of electricity sale and purchase.

3. In cases where a price negotiation has been held but the concerned parties still fail to reach agreement on a price level, after getting censent of the Finance Ministry, the Industry Ministtry shall decide on a provisionnal price level to serve as a basis for application until the electricity seller and purchaser reach agreement on the officoal price level.

Article 21. Conditions for grant of electricity activity licenses

...

...

...

a/ Having necessary technological equipment and means, workshops and architectural works compliant with the approved technical designs, which have been buit, installed and tested and before acceptance as meeting current technical standards and regulation.

b/ Persons directly invoved in technical management and production must have university diplomas in electricity or suitable technical branch and have worked in the field of electricity production for at least 5 years. The contigent of workers derectly involved in operation must be trained and inspected in the operation and safety process.

2. Organization involved in electricity transmission and distribution must meet the following conditions:

a/ Have necessary technological equipment and means, workshops and architectural works, which are compatible with approved technical designs and have been built, installed and tested before acceptance as meeting current technical standards and regulations as well as requirements of the work maintenance, repair and inspection of transmission lines, transformer stations, swiching stations and compentions in the electricity transmissino and distrsbution system;

b/ Persons directly involved in technical management must have university diplomas in electricity branch and worked in the field of electricity transmission and distribution for at least 5 years. The contingent of workers directly involved in operation must be traned and inspected in the operation and safety process.

3. Electricity-wholesaling and retaling organizations and individuals must meet the following conditions:

Persons directly involved in technical or production management must have university diplomas in electricity branch and worked in the field of electricity techniques, production or trading for at least 5 years. Workers directly involved in operation must be trained professionally and inspected in the operation and safety process according to the prescribed gradees and ranks.

4. Organizations and individuals involved in the sale of electricity in rural areas must meet the following conditionss:

Persons dorectly involved in electricity operation and repair must be trained in electricity branch, granted certificates by job-teaching establishments, professionally qualified and drilled, tested in terms of electricity safety cards by the provincial/ municipal Industry Services to work within rural power grids.

...

...

...

a/ Have a contingent of experts suitable to the fields of consultancy activities.

b/ Having major exprerts with university or higher degree, who have worked in the field of consultancy for at least 5 years.

Article 22. Contens of electricity activitiy licenses

0Electricity activity licenses granted for electricity generation, transmission and distribution must clearly state the content stipuleted in Clauses 4 and 5, Article 35 of the Electricity Law. Concretely:

1.For electricity generation:

a/ The installed capacity and systems working regime;

b/ The fuel or water sources in use;

c/ The labor training and use;

d/ The safety.

...

...

...

a/ The voltage and operation area;

b/ The electricity transmission and distribution capability and operation area;

c/ The labor training and use;

d/ The safety.

Article 23. Terms of electricity activity licenses

1. The terms of electricity generation licenses shall comply with the technologies used by power plants of each type and the requests of applying organizations or individuals but not exceed 50 years each.

2. The terms of electricity transmission licenses shall comply with the requests of applying organizations but not exceed 30 years each.

3. The terms of electricity distribution licenses shall comply with the requests of applying organizations or individuals but not exceed 20 years each.

4. The terms of electricity wholesale and retail licenses shall comply with requests of applying organizations or individuals but not exceed 10 years each.

...

...

...

Article 24. Amendment, supplementation of electricity activity licenses

1. Electricity activity licecses shall be amended or supplemented at the request of licensed individuals or organizations in case of la change in one of their contens defined in Article 35 of the Electricity Law.

2. For the purposo of protecting socio-economic interests and public welfare, the licensing agency shall have the right to amend or supplement electricity transmission and distribution licenses. Such amendment or suppplementation must suit the capacity of the licensees.

Article 25. Oder of, and procedures for, the grant, amendment and supplementation of electricity activity licenses

1. Organizations and individuals requesting the grant of electricity activity licenses shall each send to the licensing agrecy three dossier sets according to the provisions of Article 33 of the Electricity Law and detailed guidance of the Industry Ministry for each type of electricity-related activity; and be held responsible for the accuracy and truthfulness of the requesting dossiers.

2. Within 5 working days after receiving dossiers of request for the grant, amendment or supplementation of electricity activity licenses, the licensing agency must notify in writing the concerned electricity units of whether their dossiers are valid or invalid, In case where the dossiers are invalid, the licensing agency must clearly state the reasons and request supplementation or amendment of related data, documents or information for the completion of dossiers.

3. Within 30 working days after receiving complete and valid dossiers, the licensing agency must grant, amend or supplement electricity activity llicenses; in case of refusal, they must notify such in writing, clearly stating the reasons therefor.

4. In cases where the agency competent to grant electricity activity licenses requests electricity electricity units to ament or supplement licenses, within 15 working days after receiving its requests, the electricity units must give written replies.

Article 26. Grant of licenses to organizations and individuals being invoived in electricity-related activities

...

...

...

2. Organizations and individuals that meet all the conditions specified in Article 32 of the Electricty Law and provisions of this Decree but have no electricity activity licensis must fill in the procedures requesting the grant of such licencses in the regulations.

3. Organizations and individuals being involved in electricity-related activities but having not yet met the conditions stipulated in Article 32 of the Electricity Law and provisions of this Decree may continue operation for 2 years. Past this time limit, if they still fail to meet the conditions for the grant of electricity activity licenses, they must stop such electricity-related activites.

Article 27. Withdrawal of electricity activity licenses

1. When withdrawing electricity cativity licenses, the competent agency must clearly determine the piriod of time for electricity units to cintinue operation in order not to affect the supply of electricity to electricity-using customers.

2. Within 30 days after their licenses are withdrawn, electricity units shall have the right to complain with competent State agencies about such withdrawal.

3. The Industry Ministry shall guide in detail the conditions for, and order of, the grant, amendment, supplementation and withdrawal of electricity activity licenses for each specific domain.

Article 28. Right to engage in management sector of the electricity purchaser

Persons nominated by an electricity unit to engage in management sector of the electricity purchaser to perform tasks of inspecting, recording meter readings and contacting customers according to the provisions of Point c, Clause 1 of Article 41, Point d, Clause 1 of Aticle 41, Point d, Clause 1 of Article 44 of the Elctricity Law must be granted professional cards to the electricity purchaser.

Article 29. General provisions on safety for electric equipment and electric works

...

...

...

a/ The electricity safety;

b/ The constrution safety;

c/ The safety of tecthnologies using primary energy sources(water, coal, petroleum, natural fuel gas and other foms of energy);

d/ The safety in fire and explosion prevention and fight;

e/ The safety in ecological environment and labor hygiene.

2. Newly-produced or-imported electricity equipment or facilities must accompany quality certificates or quality registration labels suitable with the law-prescribed standards and regulations and use instructions together with technical parameters, properties and utilities as well as other notes to guide consumers in prevention of electric incidents and accidents.

3. Electricity works shall be put in use only after being experimented, adjusted and tested for accetance as meeting the safety and quality standards.

Article 30. Safety in power generation, transmission and distribution

1. When investing in the constrution of power plants, stations and transmission lines, investors must have all technical designs, construction designs, construtions designs, total cost estimates and detailed estimates approved, documents on installations and constrution completion and other technical documents required by the constrution law for hand-over to operation management units.

...

...

...

3. In cases where overhead power transmission lines stretch across populated areas where people regulary reside and work, operation management units must not allow the use of overloaded lines.

Article 31. Responsibility to ensure safety of organizations and individuals using electricity for production

1. Having complete documents on electricity safety regulations and criteria; compiling, promulgating,guiding and organizing the implementation of processes, regulations and rules on electric safety, applicable within agencies and enterprises, on the basis of the States standarts and regulations.

2. Compiling, managing dossiers, history books and technical documents related to electric equipment and facilities. Operation spots must have adequate procedures for operating equuipment, handling incidents and ensuring safety in relevant branches, power grid diagrams, fire prevention and fighting regulations, operation journals, labor protection tools and devices, electric safety signbords and other tools and equipment under regulations.

3. Arranging officials, using laborers for jobs directly related to electricity, who fully meet the following cinditions:

a/ Having been professionally and technically trained according to requirements of branches and jobs;

b/ Having been drilled and granted electric safety cards.

4. Strictly implementing the State regimes and policies on labor protection. Guaranteeing working conditions as well as tools and equipment to ensure safety for individual laborers exposed to electricity in their work.

5. Inspecting and promptly remedying shortcomings in the observance of rules and regulations on electric safety in their units.

...

...

...

7. Organizing research and application of technical advances and new technologies to production process.

8. In case of electricity incidents or accidants, quickly applying necessary measures to save victims and reduce losses and organizing investigation to analyze causes, reviewing, determining responsibilities, finding out subjective causes, working out preventive plans, thus preventing the re-occurrence of incidents and accidents.

9. Conducting statiscal and monitoring work, reporting electric incidents according to regulations.
10. Organizing or participating in the wide dissemination and popularization ot the work of electric safety.

Article 32. Responsibility for management of electricity

1. The Ministry of Industry shall have to:

a/ Promulgate, guide, organize the implementation of regulations and branch standards on electric safety;

b/ Coordinate activities of State management of electric safety between ministries, branches and localities;

c/ Organize the expertise of quality of electric equipment, tools and products in terms of their safety;

d/ Inspect, examine the assurance of electric safety by organizations and individuals involved in electricity-related activities and using electricity; detect and handle violations according to the provisions of law.

...

...

...

a/ Manage scientific and technical research and application with respect to electric safety;

b/ Coordinate with the Industry Ministry in formulating, perfecting, promulgating and managing the system of Vietnamese standars on electric safety.

3. The Ministry of Construction shall have to:

a/ Promulgate standards and regulations on installation of electric networks in construction works for uniform application throughout the country;

b/ Promulgate standards and regulations for safe earthing systems in buildings.

4. Provincial/ municipal Peoples Committees shall have to:

a/ Perform the state management of electric safety within their respective localities under guidance and derection of the Industry Ministry and specialized ministries:

b/ Set electric safety targets for inclusion in socio-economic development and budget budget plans of localities;

c/ Organize the management and protection of safety of reservoirs in service of hydro- electric power plans under local management;

...

...

...

e/ Detect, prevent and prompty handle sases of illegally encroaching upon, appropriating or using reservoirs of hydro-electric power plants and safety corridors of electric works.

ON BEHALF OF THE GOVERNMENT
PRIME MINISTER

Phan Van Khai