Thông tư 22/2020/TT-BCT

CIRCULAR

REGULATING CONDITIONS AND PROCEDURES FOR ELECTRICITY SUPPLY DISCONNECTION AND REDUCTION

Pursuant to the Government's Decree No. 98/2017/ND-CP dated August 18, 2017, defining the functions, tasks, powers and organizational structure of the Ministry of Industry and Trade;

Pursuant to the Law on Electricity dated December 3, 2004 and the Law on Amendments and Supplements to certain Articles of the Law on Electricity dated November 20, 2012;

Pursuant to the Government’s Decree No. 137/2013/ND-CP dated October 21, 2013 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;

Upon the request of the Director of the Electricity Regulatory Authority,

The Minister of Industry and Trade hereby promulgates the Circular prescribing conditions and procedures for electricity supply disconnection and reduction.

Chapter I

GENERAL PROVISIONS

Article 1. Scope

This Circular prescribes conditions for electricity supply disconnection and reduction; procedures for electricity supply disconnection and reduction in the electricity system operations. 

Article 2. Subjects of application

1. Electricity distribution units.

2. Electricity distribution and retailing units.

3. Electricity consumers.

4. Vietnam Electricity.

5. Organizations and individuals concerned.

Article 3. Interpretation

For the purposes of this Circular, terms used herein shall be construed as follows:

1. Electricity system security refers to the capability of power source to supply adequate electricity to meet the needs of electrical load at a specified time or within a specific duration, taking into account power system constraints. 

2. Electricity seller refers to an electric power entity suspending and resuming electricity supply, including:  Electricity distribution units, electricity distribution and retailing units.

3. Electricity buyer refers to an organization or individual buying electricity for use or for retailing of electric power to electricity consumers, including:

a) Electricity distribution and retailing units;

b) Electricity consumers.

4. Electricity distribution unit refers to an electricity entity that obtains the license for electric power operations, including distribution and sale of electricity, including:

a) Electricity Corporation;

b) Electricity companies of provinces and centrally-affiliated cities (hereinafter referred to as provincial electricity company) directly controlled by Electricity Corporations;

c) District-level Electricity Companies under Hanoi City Electricity Corporation and Ho Chi Minh City Electricity Corporation.

5. Electricity distribution and retailing unit refers to an electricity entity licensed to perform electricity operations, including distribution and retailing of electricity or wholesaling of electricity from an electricity distribution unit for the retail distribution of wholesaled electricity to electricity consumers.

6. Reduction in electricity supply refers to a decrease in supply capacity and output of electricity compared to the level of capacity or output agreed in a signed electricity purchase and sale contract.

7. Electricity consumer refers to an organization or individual buying electricity for their own use, not for resale purposes.

8. Important electricity consumers refers to a customer that is given priority to be supplied with electricity in case of the electricity seller’s disconnection or reduction of its electricity supply, and is identified by the People's Committee of a province and centrally-run city, based on their political, social, security and national defense importance.

9. Force majeure event refers to an event occurring objectively that the electricity seller is unable to control, foresee and conquer despite all necessary measures and allowed capabilities have already been used.

Article 4. Notification of electricity supply disconnection or reduction

1. In all cases of disconnection or reduction of the electricity supply, the electricity seller must notify the electricity buyer in advance, except for the cases specified in Clause 6, Article 7 of the Electricity Law and Article 6 of this Circular.

2. Notification of electricity supply disconnection or reduction must contain the followings:

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

b) Reasons for disconnection or reduction of electricity supply;

c) Time of commencement of disconnection or reduction of electricity supply;

d) Scheduled time of electricity supply reconnection or recovery of normal electricity supply.

3. 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:

a) Legal representative or authorized representative of the electricity seller;

b) 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.

4. 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.

Chapter II

CONDITIONS FOR ELECTRICITY SUPPLY DISCONNECTION AND REDUCTION

Article 5. Non-emergency electricity supply disconnection and reduction

The electricity seller may disconnect or reduce electricity supply for non-emergency purposes in the following cases:

1. Disconnecting or reducing electricity supply according to the electricity sellers' plan when there is a need for repair, maintenance, overhaul, construction and installation of electrical works, electrical load dispatch or restraint due to a lack of electricity sources and other demands specified in the plan.

2. Disconnecting electricity supply at the request of concerned organizations and individuals to ensure safety for construction projects during their execution period.

3. Disconnecting or reducing electricity supply at the electricity buyer’s request.

Article 6. Emergency electricity supply disconnection and reduction

The electricity seller may disconnect or reduce electricity supply in response to emergency in the following cases:

1. 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.

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

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

4. Force majeure event occurs.

Article 7. Disconnection of electricity supply by virtue of violation of organizations or individuals against laws

The electricity seller may disconnect or reduce electricity supply in response to emergency in the following cases:

1. The electricity seller commits acts prescribed in:

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

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

2. 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.

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

4. The electricity buyer fails to provide security for fulfillment of contractual obligations or fails to maintain contract performance bond under the Government’s Decree No. 137/2013/ND-CP dated October 21, 2013 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.

Chapter III

PROCEDURES FOR ELECTRICITY SUPPLY DISCONNECTION AND REDUCTION

Article 8. Procedures for non-emergency electricity supply disconnection and reduction

1. In case of non-emergency electricity supply disconnection and reduction, the electricity seller must notify the electricity buyer at least 05 days ahead of the time of disconnection or reduction of the electricity supply in the following specific forms:

a) Sending the notice in writing or in other forms agreed upon by the two parties in the electricity purchase and sale contract to consumers with an average electricity purchase volume of over 100,000kWh/month and to key electricity users;

b) Broadcasting on mass media or in other means of communication as agreed in the electricity sale and purchase contract for 03 consecutive days with regard to the rest of consumers. The first notification must be sent at least 05 days before the time of disconnection and reduction of the electricity supply.

2. After notification of electricity supply disconnection or reduction, the electricity seller shall be responsible for disconnecting or reducing the electricity supply as stated in the notification.

In case of failure to disconnect or reduce electricity supply according to the notification, the electricity seller must notify the electricity buyer at least 24 days ahead of the time of disconnection or reduction of the electricity supply.

3. In case the electricity seller requests a change in the notified time of electricity supply disconnection or reduction, they must consult the electricity buyer at least 48 days ahead of the time of disconnection or reduction of the electricity supply. The electricity seller shall be responsible for considering dealing with the request of the electricity buyer, specifically as follows:

a) In case of being unable to change electricity supply disconnection or reduction, the electricity seller may still do so according to the plan, but must inform the electricity buyer, clearly stating the reasons at least 24 days ahead of the time of disconnection or reduction of the electricity supply;

b) In case of acceptance of a change in the time of electricity supply disconnection or reduction, the electricity seller must inform the electricity buyer at least 24 days ahead of the notified time of disconnection or reduction of the electricity supply.

4. After completion of the electricity supply disconnection or reduction, the electricity seller must fully record the time, activities and steps of the electricity supply disconnection or reduction in the activity log or the operational log.

5. The electricity seller must reconnect the electricity according to the specified time. In case the time of reconnection of electricity is at least 1 hour delayed from the notified time, the electricity seller must notify the customer with the average electricity purchase volume of over 100,000 kWh/month and key electricity consumers of the time of reconnection of electricity by phone or by other form of notification agreed upon by both parties in the electricity sale and purchase contract.

6. For the cases specified in Clauses 2 and 3, Article 5 of this Circular, the steps and procedures for the electricity supply disconnection or reduction specified in Clauses 1 thru 5 of this Article shall be conducted only after the requester for electricity supply disconnection has fully paid the electricity seller the costs related to the disconnection and reconnection of electricity.

Article 9. Steps and procedures for emergency electricity supply disconnection and reduction

When one of the cases specified in Article 6 of this Circular occurs, the electricity seller shall have the right to disconnect or reduce the electricity supply for emergency purposes, and then carry out the following activities:

1. Defining the causes, scope of impact, expected time of electricity supply reconnection.

2. Notifying the electricity buyer in the form of notification agreed upon by both parties in the electricity purchase and sale contract, including the contents specified in Clause 1 of this Article, within 24 hours from the time of the emergency disconnection and reduction of electricity supply.

3. The electricity seller must fully record the time, activities and operational steps of the electricity supply disconnection or reduction in the activity log or the operational log.

4. With respect to the disconnection or reduction of the electricity supply due to the lack of capacity of the electricity system, which threatens the security of the electricity system, the electricity seller must ensure the cut-off and reduction of the correct amount of load capacity calculated and distributed according to regulations on the formulation and implementation of electricity supply plans if the national electricity system lacks electricity sources.

5. Cooperating with relevant parties to urgently remedy the causes of disconnection and reduction of the emergency electricity supply to reconnect electricity as soon as possible.

Article 10. Procedures for disconnection of electricity supply by virtue of violation of organizations or individuals against laws

1. With respect to those cases specified in clause 1 of Article 7 herein

a) In case the electricity buyer commits acts specified in Clause 6, Article 7 of the Electricity Law (the act of electricity theft), the electricity seller may disconnect the electricity supply right after the written report of administrative violation is made according to the provisions of the Decree No. 134/2013/ND-CP ;

b) In case the electricity buyer commits acts specified in Clauses 1, 4, 5, 7 and 8, Article 7 of the Electricity Law, and the extent of the violation does not lead to the emergency electricity supply disconnection, after completely making the report of the administrative violation under the provisions of Decree No. 134/2013/ND-CP , the electricity seller shall be responsible for sending the notice of disconnection of electricity supply to the electricity buyer at least 24 hours before the time of disconnection of the electricity supply. After expiration of this time limit, if the electricity buyer does not put an end to the violation and does not remedy the consequences caused by the violation at the request of the electricity seller, the electricity seller shall have the right to disconnect electricity supply according to the notification;

c) In case the electricity buyer violates the provisions at Point b, Clause 1, Article 7 of this Circular, the electricity seller shall have the right to disconnect the electricity supplied to the electricity buyer and must notify the electricity buyer at least 24 hours before the time of disconnection of the electricity supply.

2. With respect to those cases specified in clause 2 of Article 7 herein

a) In case there is no agreement to defer the payment due date of electricity bill and the electricity buyer has been notified by the electricity seller 2 (two) times of the electricity bill payment, 15 days after the first notification, the electricity seller shall have the right to disconnect the electricity supplied to the electricity buyer;

b) In case the electricity buyer requests an agreement and the electricity seller agrees to postpone the payment due date of electricity bill but, after the agreed-upon deadline, the electricity buyer still has not fully paid for the electricity bill and the amount of interest on late payment (if any), the electricity seller shall have the right to disconnect electricity supplied to the electricity buyer;

c) When the electricity supply is disconnected, the electricity seller must notify the electricity buyer at least 24 hours before the electricity supply disconnection and shall not be responsible for any damage caused by the electricity supply disconnection.

3. With respect to those cases specified in clause 3 of Article 7 herein

The electricity seller must notify the electricity buyer at least 24 hours before the electricity supply disconnection, clearly stating the reasons for such disconnection. After disconnecting electricity supply, the electricity seller must notify the disconnection of electricity supply in writing to the state agency that requests the electricity supply disconnection.

4. With respect to those cases specified in clause 4 of Article 7 herein

The electricity seller shall have the right to disconnect the electricity supplied to the electricity buyer under contractual agreements and must notify the electricity buyer at least 24 hours before the time of disconnection of the electricity supply.

5. The electricity supply shall be reconnected only in the following cases:

a) The electricity buyer has fully complied with the decision on handling of administrative violation issued by the competent state agency, has put an end to the violation, has taken action to mitigate the consequences caused by the violation and cleared all payments of costs of disconnection and reconnection of electricity supplied to the electricity seller in case of the disconnection of the electricity supply according to the provisions of Points a and b, Clause 1 of this Article;

b) Fully paying for electricity bills and interest on late payment of electricity bills (if any) or having taken measures to secure compliance with other agreements in the electricity purchase and sale contract and costs of disconnection and reconnection of electricity supplied to the electricity seller with respect to the disconnection of electricity supply as prescribed in Point c, Clause 1 and Point a, Point b, Clause 2 of this Article;

c) There is a written request for reconnection of electricity by the competent authority and the electricity buyer has fully paid the costs of disconnection and reconnection of the electricity supplied to the electricity seller in case of the disconnection of electricity supply as prescribed in Clause 3 of this Article;

d) The electricity buyer has taken measures to secure compliance with the contract or maintained measures to ensure the execution of the contract and has fully paid the costs of disconnection and reconnection of electricity supplied to the electricity seller with respect to the disconnection of electricity supply prescribed in Clause 4 of this Article.

Chapter IV

REPORTING AND SURVEILLANCE OF DISCONNECTION OR REDUCTION OF ELECTRICITY SUPPLY

Article 11. Regular monthly reports

1. Before the 15^th of every month, the Electricity Corporation of Hanoi and Ho Chi Minh city, provincial Electricity Companies, Distributing and Retailing Units licensed for electricity operations with at least 03 MVA in total design capacity of voltage transformers shall have responsibility to prepare and send general review reports by post or via email to local Departments of Industry and Trade on the results of the disconnection or reduction of electricity supply in the preceding month within their jurisdiction.  A report shall include:

a) Monthly general report on the disconnection or reduction of electricity supply using the form prescribed in Appendix I to this Circular;

a) Monthly detailed report on the disconnection or reduction of electricity supply using the form prescribed in Appendix II to this Circular.

2. Before the 15^th of every month, the Electricity Corporation shall be responsible for sending written reports by post or email to the Electricity Regulatory Authority on the disconnection and reduction of electricity supply in the preceding month under their authority.  A report shall comprise information prescribed in point a and b of clause 1 of this Article.

Article 12. Ad hoc reports

1. When it is required to disconnect or reduce the electricity supply for emergency purposes on a large scale in the national electricity system due to serious incidents, the Vietnam Electricity shall report to the Ministry of Industry and Trade (Electricity Regulatory Authority) by electronic mail or fax immediately after the incident occurs, and in writing within 36 hours from the time when the incident occurs.

2. When it is necessary to disconnect or reduce the electricity supply for emergency purposes in the event of the failure, breakdown or incident of the transmission grid of at least 220kV or the transformer of at least 110kV playing an important role in supplying electricity to a region:

a) The Vietnam Electricity and the Electricity Corporation shall be responsible for reporting to the Electricity Regulatory Authority by email or fax right after the incident occurs, and in writing within 36 hours from the time of occurrence of such incident.

b) Hanoi Electricity Corporation, Ho Chi Minh city Electricity Corporation, and provincial Electricity Companies shall be responsible for reporting to local Departments of Industry and Trade by email or fax right after the incident occurs and in writing within 36 hours from the time of occurrence of the incident.

3. The electricity seller shall be responsible for reporting the disconnection or reduction of electricity supply in writing by post or by email upon the request of the Electricity Regulatory Authority of Vietnam or provincial Departments of Industry and Trade.

4. Contents of an ad hoc report shall be subject to clause 2 of Article 4 herein.

Article 13. Surveillance of disconnection or reduction of power supply

1. Departments of Industry and Trade shall assume the following responsibilities:

a) Every year, based on the importance of politics, society, security and national defense, local Departments of Industry and Trade shall preside over and cooperate with Hanoi Electricity Corporation, Ho Chi Minh City Electricity Corporation and provincial Electricity Companies in submitting the list of key electricity consumers prioritized to be supplied with electricity to provincial People's Committees when electricity sellers carry out the disconnection or reduction of electricity supply in the power system;

b) Supervising the implementation of disconnection or reduction of the power supply of Hanoi Electricity Corporation, Ho Chi Minh City Electricity Corporation, Provincial Power Companies, local electricity distributing and retailing units according to the provisions of this Circular.

2. The Electricity Regulatory Authority shall be responsible for the general oversight of the disconnection or reduction of electricity supply by electricity units according to the provisions of this Circular.

Chapter V

IMPLEMENTATION PROVISIONS

Article 14. Implementation

1. The Electricity Regulatory Authority shall be responsible for communicating, guiding and examining the compliance with this Circular.

2. Vietnam Electricity shall direct its affiliated units to carry out the disconnection or reduction of electricity supply according to the provisions of this Circular.

Article 15. Entry into force

1. This Circular shall take effect on October 30, 2020. The Circular No. 30/2013/TT-BCT dated November 14, 2013 of the Minister of Industry and Trade, regulating conditions and procedures for disconnection or reduction of electricity supply, shall become defunct from the effective date of this Circular.

2. In the course of implementation hereof, if there is any difficulty or query that arises, relevant entities must report to the Electricity Regulatory Authority to study, recommend and petition the Ministry of Industry and Trade for any proper amendments or supplements to this Circular./.