THE MINISTRY OF INDUSTRY AND TRADE | SOCIALIST REPUBLIC OF VIETNAM |
No.: 19/2014/TT-BCT | Hanoi, June 18th 2014 |
CIRCULAR
ISSUING THE POWER PURCHASE AGREEMENT FOR DOMESTIC USE
Pursuant to the Government's Decree No. 95/2012/ND-CP dated November 12, 2012, defining the functions, tasks, powers and organizational structure of the Ministry of Industry and Trade
Pursuant to Law on Electricity dated December 03, 2004; Law on amendments to Law on Electricity dated November 20, 2012;
Pursuant to Decree No. 137/2013/ND-CP dated October 21, 2013 by the Government detailing the implementation of a number of articles of Law on Electricity and Law on amendments to Law on Electricity;
At the request of Director of Electricity Regulatory Authority,
The Minister of Industry and Trade promulgates the Circular issuing the Power Purchase Agreement (PPA) for domestic use.
Article 1. Issuance of PPA sample
The Sample of the Power purchase agreement for domestic use (hereinafter referred to as the Agreement) is enclosed with this Circular, applicable to Power purchase agreement between electricity retailers (hereinafter referred to as the Seller) and people using power for domestic use (hereinafter referred to as the Buyer).
Article 2. Conclusion of agreement and language in the agreement
1. At an electrical delivery point
a) The Buyer being a household using a family register or a temporary residence register to apply for electrical delivery shall conclude only 1 Agreement.
b) If the family register/temporary residence register are unavailable, only one of the following papers is accepted for purchase of power: Certificate of ownership towards housing or the decision of house division; valid house purchase contract; land use right certificate (on land with housing construction); authorization of management and use of house that is notarized or certified. All of such paper shall be used for conclusion of only 1 Agreement.
2. The Buyer is the person who leases housing to fulfill regulations on power selling price regulated by the Ministry of Industry and Trade.
3. Multiple households sharing power supply may conclude 01 agreement as one Buyer; price for such Buyer will be calculated according to Regulation on power selling prices of the Ministry of Industry and Trade.
4. Language of the Agreement shall be Vietnamese.
Article 3. Signatories of the Agreement
A signatory of the Agreement shall be a person having fully civil act capacity who is the owner or the person who is authorized in papers used for power purchase as prescribed in Point a Clause 1 Article 11 of Decree No. 137/2013/ND-CP dated October 21, 2013 by the Government.
Article 4. Duration of the Agreement
Duration of the agreement shall be agreed by the two parties. If the two parties cannot arrange the duration of the Agreement, the duration of the Agreement shall be calculated from the day on which Agreement is signed until it is amended or terminated.
Article 5. Organization of implementation
The Seller shall publish at their office the sample of Power Purchase Agreement enclosed with this Circular and use such sample for agreements that are concluded from the effective date of this Circular.
Article 6. Effect
1. This Circular comes into effect from August 05, 2014.
Decision No. 08/2006/QD-BCN dated April 12, 2006 by the Minister of Industry shall be annulled by the effect of this Circular.
Any Agreement that is signed before the effective date of this Circular shall be applicable until the expiry date of the agreement During the implementation of the Agreement, parties shall comply with regulations of Law on Electricity and Law on amendments to a number of Law on Electricity and their guiding documents. If the Buyer wishes to conclude a new Agreement before the expiry date of the current one, the Seller shall make arrangement to conclude a new Agreement.
2. Difficulties that arise during the implementation of this Circular should be reported to the Electricity Regulatory Authority for solution./.
| PP. THE MINISTER |
SAMPLE OF POWER PURCHASE AGREEMENT FOR DOMESTIC USE
(Enclosed with the Circular No. 19/2014/TT-BCT dated June 18, 2014 by the Minister of Industry and Trade)
SOCIALIST REPUBLIC OF VIETNAM
Independence – Freedom – Happiness
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….………….…[place], on………………..[date]
POWER PURCHASE AGREEMENT FOR DOMESTIC USE
No.:………………..
Pursuant to the Civil Code dated June 14, 2005;
Pursuant to the Law on Electricity dated December 03, 2004; the Law dated November 20, 2012 on amendments to the Law on Electricity;
Pursuant to the Government’s Decree No. 137/2013/ND-CP dated October 21, 2013 detailing the implementation of a number of articles of the Law on Electricity and the Law on amendments to the Law on Electricity;
Based on the Buyer’s demand for purchase of electricity,
We consist of:
The Seller (Party A):………………………………………………………………..……………
Represented by Mr. (Mrs.):.................................... Position:.........................................
Under the Power of Attorney No.: ……………………………….dated……………………….
Signed by Mr. (Mrs.):.................................... Position:.........................................
Address:…………………………………………………………………………..…………………
Telephone: ………………. Fax:……………….. Email: ...................................
Account No.: …………………..…………..Opened at: …………........................................
Tax code: ……………………. Phone number for customer service: ......................
The Buyer (Party B): Represented by Mr. (Mrs.):...........................................
Address: ..................................................................... ID Card/ Passport No.: ………………………. Date of issue:………………….. Issuing authority:……………….
Telephone: ……………………………….Email .......................................................
Phone number for receiving SMS messages:…………………………………………………
Under the authorization made on………………………….. by…………………………………….. Number of households sharing the same meter:…………………………… (enclosed with the list of households).
Account No.:……………………… Opened at: ………………………………………Two parties have unanimously agreed to enter into this Power Purchase Agreement (hereinafter referred to as “PPA”) with the following terms and conditions:
Article 1. Specific contents
1. Two parties have unanimously agreed upon the application of GENERAL PROVISIONS enclosed herewith.
2. Address of receiving power service: ………………………………………………………
3. Site for determining power quality:…………………………………………………………
4. Location of electricity meter: .......................................................................................
5. Method and deadline for payment for electricity bills:
a) Method of payment:
□ Transfer money to Party A’s bank account □ Pay in cash
At:……………………………………………………………………………………………………
b) Deadline for payment: …… day(s) from the receipt of the first notice from Party A.
c) Method of notification of electricity bill payment (in writing, by fax, call, email or sms message, etc)…..
Article 2. Other agreements
...................................................................................................................................
...................................................................................................................................
Article 3. Implementation
This PPA comes into force from…………………………………..[date] (or from the date on which this PPA is signed) to…………………………………….[date] (or to the date on which this PPA is amended or terminated). '
During the performance of this PPA, either party that wishes to terminate, amend or supplement any contents of/to this PPA must give a 15-day notice to the other party for consideration.
This PPA is made in 02 copies of the same effect, one for each of the Parties./.
PARTY B | PARTY A |
GENERAL PROVISIONS
(Enclosed with the power purchase agreement for domestic use)
Article 1. Power quality
Voltage and frequency must be ensured as regulated in Clause 1 Article 15 of the Decree No. 137/2013/ND-CP or its amending, rectifying or superseding documents, unless otherwise agreed and determined at the site as agreed upon in Clause 3 Article 1 herein.
Article 2. Power measurement
1. The amount of electricity used may be measured by the electricity meter and the meter multiplier. The meter multiplier is written in the record of the electricity meter installation.
2. The electricity meter shall be inspected in accordance with applicable laws.
3. The installation or removal of an electricity meter must be properly recorded and certified by the householder or any family member who has full legal capacity of party B or a person authorized by party B. This record shall be considered as an appendix of the PPA.
Article 3. Electricity meter reading
Party A shall get monthly readings on a scheduled date. Monthly readings may be also taken one day before or after the scheduled date in cases of force majeure events. The date on which readings are taken shall be considered as the ending day of a billing cycle.
Article 4. Electricity price
1. Electricity price is the average retail electricity price as announced by a competent authority.
2. If there is any change in the electricity price upon the approval by a competent authority, the new price shall be applied without signing a new PPA.
Article 5. Electricity bill payment
1. Party B shall pay monthly electricity bill to party A in VND according to the method and by the deadline as agreed upon in Point a and Point b Clause 5 Article 1 herein.
2. Method of notification of electricity bill payment: As agreed upon in Point c Clause 5 Article 1 herein.
3. Party B shall fully pay the amounts specified in the electricity bill.
Article 6. Rights and obligations of Party A
1. Access party B’s separate area to inspect and take meter readings, repair or replace electricity meter, and contact party B to deal with any issues concerning the PPA. The person who enters the party B’s separate area must be assigned in accordance with applicable regulations of relevant laws.
2. If the meter readings are taken on the date other than the date prescribed in Article 3, party A must publish a notice of change thereof on its website.
3. Unilaterally terminate the PPA in case party B stops consuming electricity within 06 consecutive months without giving a prior notice to party A.
4. Stop or reduce the amounts of electricity supplied; timely continue supplying power to party B in accordance with applicable laws.
5. Inform party B at least 05 days before the suspension of or reduction in power supply by publishing notification on the mass media within 03 consecutive days from the date of planning the suspension or reduction in power supply for the purposes of repairing, maintaining, upgrading or building electrical structures.
6. Ensure safe, stable and reliable operation of the electrical grids and equipment. Ensure the supply of power to the Buyer in conformity with technical standards, service quality and safety requirements, except the case where the electrical grid is overloaded as certified by the Electricity Regulatory Authority of Vietnam or a competent authority.
7. In case party A has stopped supplying power at the request of party B as regulated in Clause 5 Article 7 of GENERAL PROVISIONS herein, party A shall continue supplying power to party B within 07 days from the receipt of party B's notice of continuing using power.
8. Perform other rights and obligations as regulated by laws.
Article 7. Rights and obligations of Party B
1. Request party A to: ensure the power quality at the site as agreed upon in the PPA; inspect the power quality, the accuracy of electricity metering device and the amounts payable; timely continue supplying power after the power cut.
2. Facilitate party A in inspecting and taking meter readings, repairing and replacing the electricity metering device.
3. Inform party A at least 15 days before changing the purpose of electricity use resulting in change in the electricity price; or changing the number of households sharing the same meter as specified in the PPA; or having demand for termination of the PPA.
4. Inform party A immediately when discovering the meter damage or suspecting of the electricity meter accuracy, or when detecting any irregular events which may cause the power cut or harm to people and property.
5. Inform party A at least 05 days before the suspension of consumption of power for a period of 06 consecutive months as requested.
6. Manage property and ensure safety of electrical lines connected from the metering device to electrically operated equipment. Party B shall not provide power for another household.
7. Make full payment for monthly electricity bill on the scheduled date specified herein.
8. Party B shall not itself remove or move the electricity meter. The electricity meter may be moved to another location provided that it must be consented by party A and party B shall pay all moving expenses.
9. Party B shall not steal electricity in any forms. In case of theft of electricity, party B must make compensation for party A in accordance with regulations on inspection of electrical activities, consumption of electricity and settlement of disputes concerning the PPA promulgated by the Ministry of Industry and Trade; incur administrative penalties in accordance with the Government’s regulations on penalties for administrative violations against regulations on operation of hydroelectric dams, and proper and efficient consumption of energy or face a criminal prosecution in accordance with applicable laws.
10. Perform other rights and obligations as regulated by laws.
Article 8. Compensation for damage and breach of the PPA
1. Breach of the PPA:
a) Party A’s breach of the PPA:
Failure to ensure the power quality as prescribed in Article 1 herein, except force majeure events; sale of electricity at the price higher than the regulated one; inaccurate obtainment of meter readings or wrong calculation of electricity bill; failure to make adjustments for the increase in the number of households sharing the same meter as reported by party B; other acts of violations against regulations on power sale and purchase.
b) Party B’s breach of the PPA:
Consumption of power for the purpose for which the electricity price is higher than the price agreed upon in the PPA; delay in paying electricity bill without a legitimate reason; failure to inform party A of a decrease in the number of households sharing the same meter; other acts of violations against regulations on power sale and purchase.
2. Compensation for damage:
a) Party A must make compensation to party B if committing any acts specified in Point a Clause 1 of this Article.
b) Party B must make compensation to party A if committing any acts specified in Point b Clause 1 of this Article.
c) The amount of compensation is determined according to the method in the regulations on inspection of electrical activities, consumption of electricity and settlement of disputes concerning the PPA promulgated by the Ministry of Industry and Trade.
3. Penalties for breach of the PPA:
Apart from the compensation for damage as regulated in Clause 2 of this Article, the parties shall incur penalties for breach of the PPA. To be specific:
a) If party A commits any acts of breach of the PPA specified in Point a Clause 1 of this Article, party A shall incur a penalty equal to 8% of the amount payable by party B.
b) If party B commits any acts of breach of the PPA specified in Point b Clause 1 of this Article, party B shall incur a penalty equal to 8% of the amount payable by party B.
Article 9. Dispute settlement
1. Two parties shall strictly comply with terms and provisions of the PPA. The breaching party shall be punished in accordance with applicable law.
2. Any disputes that arise during the performance of the PPA shall be settled by two parties by negotiation. Failure to reach an amicable settlement, the case may be referred to the Provincial Department of Industry and Trade for conciliation. Procedures, formalities and time-limit for conciliation shall follow regulations in Article 26 of the Circular No. 27/2013/TT-BCT dated October 31, 2013 by the Ministry of Industry and Trade or its amending, rectifying or superseding document.
3. In case of failure to request for a conciliation or unsuccessful conciliation, either or both parties have the rights to file a lawsuit to the competent Court in accordance with regulations of the Law on civil procedures.
4. Party B still pays the electricity bill and party A must continue supplying electricity, pending the court’s decision./.
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