Integrated document No. 22/VBHN-VPQH dated September 16, 2024 Law on Electricity

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OFFICE OF THE NATIONAL ASSEMBLY --------	THE SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness ---------------
No. 22/VBHN-VPQH	Hanoi, September 16, 2024

LAW

ON ELECTRICITY

The Law on Electricity No. 28/2004/QH11 dated December 02, 2004 of the National Assembly, which has been effective since July 01, 2005, is amended by:

1. The Law No. 24/2012/QH13 dated November 20, 2012 of the National Assembly on Amendments to some Articles of the Law on Electricity, which has been effective since July 01, 2013;

2. The Law No. 28/2018/QH14 dated June 15, 2018 of the National Assembly on Amendments to some Articles concerning planning of 11 Laws, which has been effective since January 01, 2019;

3. The Law No. 03/2022/QH15 dated January 11, 2022 of the National Assembly on Amendments to Certain Articles of the Law on Public Investment, the Law on Public-Private Partnership Investment, the Law on Investment, the Law on Housing, the Law on Procurement, the Law on Electricity, the Law on Enterprises, the Law on Special Excise Duties and the Law on Civil Judgment Enforcement, which has been effective since March 01, 2022;

4. The Law on Prices No. 16/2023/QH15 dated June 19, 2023 of the National Assembly, which has been effective since July 01, 2024;

5. The Law on Road No. 35/2024/QH15 dated June 27, 2024 of the National Assembly, which has been effective since January 01, 2025.

Pursuant to the 1992 Constitution of the Socialist Republic of Vietnam amended under the Resolution No. 51/2001/QH10 dated December 25, 2001 of the 5th National Assembly, the 10th session;

This Law provides for electricity.

Chapter I

GENERAL PROVISIONS

Article 1. Scope

This Law provides for power development planning and investment in electricity development; electricity saving; electricity market; rights and obligations of organizations and individuals conducting electricity activities and using electricity; protection of electrical equipment and electricity works, and electric safety.

Article 2. Regulated entities

This Law applies to organizations and individuals conducting electricity activities, using electricity or engaged in other electricity activities in Vietnam. Where any treaty to which the Socialist Republic of Vietnam is a signatory or accedes contain provisions different from those specified this Law, the former shall prevail.

Article 3. Definitions

For the purposes of this Law, the terms below shall be construed as follows:

1. “electricity activities” mean activities of organizations or individuals in the fields of power development planning, investment in electricity development, electricity generation, electricity transmission, electricity distribution, power system dispatch, regulation of electricity market transactions, electricity wholesaling and retailing, electrical consulting and other relevant activities.

2. “electric utility” means an organization or individual carrying out electricity generation, electricity transmission, electricity distribution, power system dispatch, regulation of electricity market transactions, electricity wholesaling and retailing, electrical consulting and other relevant activities.

3. “electrical grid” means a system of transmission lines, transformers and auxiliary equipment for electricity transmission. Electrical grid shall, depending on its intended uses and operation purposes, be classified into transmission grid and distribution grid.

4. “electricity wholesaling” means the sale of electricity by one electric utility to another for resale to a third party.

5. “electricity retailing” means the sale of electricity by one electric utility to electricity consumers.

6. “electricity consumer" means an organization or individual that buys electricity for use and does not resell the electricity bought to another organization or individual.

7. “large electricity consumer” means a consumer that uses electricity with large power and consumption as prescribed by the Ministry of Industry and Trade in a manner that is appropriate to each period of power system development.

8. “electricity tariff” means a list of specific electricity prices and price brackets applicable to electricity purchasers and sellers under different conditions.

9. “electricity price bracket” means the range of permissible electricity price fluctuations between the lowest price (floor price) and the highest price (ceiling price).

10. “national power system” means a system of electricity-generating equipment, electrical grids and auxiliary equipment which are connected and uniformly controlled nationwide.

11. “electricity regulation” means the impact exerted by the State on electricity activities and electricity market with a view to supplying electricity safely, stably and qualitatively, using electricity economically and efficiently and ensuring fairness, transparency and law compliance.

12. “power system dispatch” means the commanding and control of the process of electricity generation, electricity transmission, electricity distribution within the national power system according to determined technical processes, regulations and operation method.

13. “regulation of electricity market transactions” means the management and regulation of transactions in purchase and sale of electricity and ancillary services on the electricity market.

14. “electricity metering devices” means those used for measuring the power, amount of electrical energy, electric current, voltage, frequency, power factor, including electricity meters, and accompanying equipment and accessories.

15. “electricity theft” means an act of illegally taking electricity without mater meters, tampering of an electricity meter and other electrical equipment related to electricity metering, deliberately recording or collaborating in recording electricity meter readings and other fraudulent acts of taking electricity.

16. “electricity work” means a combination of facilities, machinery, equipment, construction structures in direct service of electricity generation, electricity transmission, electricity distribution, power system dispatch, electricity purchase and sale; a system for protection of electricity works; electrical grid safety corridors; land used for electricity works and other auxiliary works.

17. “wholesale electricity price” means the price at which the electricity of an electric utility is sold to another for resale.

18. “retail electricity price” means the price at which the electricity of an electric utility is sold to electricity consumers.

Article 4. Electricity development policies

1. Develop electricity in a sustainable manner on the basis of optimally tapping all resources, satisfying demands for electrical energy in service of people's life and socio-economic development with stable quality, safety and economy, civilized services, thus contributing to the maintenance of national defense, security and national energy security.

1a. Prioritize development of electricity to service rural areas, mountainous areas, border areas, islands and extremely disadvantaged.

2. Build up and develop the electricity market on the principle of publicity, equality, fair competition with the State's regulation to raise efficiency in electricity activities; protect legitimate rights and interests of electric utilities and electricity consumers; attract all economic sectors to participate in investment in the construction of transmission grids on the basis of ensuring national defense and security and according to the planning for electricity development, electricity generation, electricity distribution, electricity wholesaling, electricity retailing and/or electrical consulting.

Non-state economic sectors are allowed to operate the transmission grid built themselves.

2a. The State holds monopoly in the following activities:

a) National power system dispatch;

b) Construction and operation of large power plants of socio-economic significance or in service of defense or security purpose;

c) Operation of distribution grids, except for the transmission grid built by non-state economic sectors.

3. Apply scientific and technological advances to electricity activities and use with a view to saving, raising the efficiency in using various energy sources, and protecting the environment; encourage research, development, production and use of modern equipment to satisfy the requirement of electricity development.

4. Step up the exploitation and use of sources of new energy sources and renewable energy for electricity generation; provide incentives for projects on investment in development of power plants using sources of new energy sources and renewable energy.

Article 5. International cooperation in electricity activities

Expand international cooperation and international economic integration in electricity activities on the basis of respect for each other’s national independence and sovereignty and mutual benefits. The State encourages and enables foreign organizations and individuals to participate in electricity activities in Vietnam; domestic organizations and individuals to cooperate with foreign organizations and individuals, and international organizations in electricity activities.

Article 6. Dissemination of and education about electricity law

1. Ministries, ministerial agencies, Governmental agencies, People’s Committees at all levels and electric utilities shall, within their jurisdiction, cooperate with mass media agencies and schools in organizing the electricity law dissemination and education and instructing people to use electricity safely, economically and efficiently and strictly observe regulations of law on electricity.

2. Vietnamese Fatherland Front and its member organizations shall, within their jurisdiction, cooperate with the agencies performing the state management of electricity activities and electricity use in mobilizing people to use electricity safely, economically and efficiently and to strictly comply with regulations of law on electricity.

Article 7. Prohibited acts in electricity activities and electricity use

1. Destroying electrical equipment, electricity metering devices and electricity works.

2. Conducting electricity activities without the license as prescribed by this Law.

3. Switching on or off electricity in contravention of law.

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

5. Obstructing the inspection of electricity activities and electricity use.

6. Electricity theft.

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

8. Violating regulations on protection of electrical grid safety corridors, on safe distances between transmission lines and electrical substations.

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

10. Abusing positions and/or powers to cause troubles or earn illegal profits in electricity activities and electricity use.

11. Other violations prescribed by regulations of law on electricity.

Chapter II

PLANNING FOR AND INVESTMENT IN ELECTRICITY DEVELOPMENT

Article 8. Power development planning

1. Power development planning is the national sector planning and serves as a basis for electricity development.

2. The power development planning shall be formulated as prescribed by the law on planning and conformable with:

a) the national energy development strategy;

b) the orientations for development of primary energy sources for electricity generation including new energy and renewable energy.

3. The power development planning covers a period of 10 years. The orientations of the power development planning cover a period of 30 - 50 years.

Article 8a. (annulled)

Article 9. Formulating, appraising, announcing, organizing implementation of and adjusting the power development planning

1. The Ministry of Industry and Trade shall organize the formulation of the power development planning and submit it to the Prime Minister for approval as prescribed by the law on planning.

2. People’s Committees of provinces shall organize the development of contents of electricity supply network development plan included in the provincial planning.

3. The power development planning shall be formulated, appraised, approved, announced, implemented and adjusted as prescribed by the law on planning.

Article 10. Costs of formulating, appraising, approving, announcing, adjusting and assessing implementation of the power development planning

The costs of formulating, appraising, approving, announcing, adjusting and assessing implementation of the power development planning are prescribed by the law on planning.

Article 11. Investment in electricity development

1. Investment in electricity development must conform to the power development planning. The investment project that has yet to be included in the power development planning shall be executed only when the authority formulating the power development planning submits it the authority having the power to approve planning for permission.

2. Every electricity project investor shall strictly comply with regulations of law on investment, construction and environmental protection.

3. Electricity generation units, electricity transmission units and electricity distribution units shall make investment in construction of electrical substations, meters and lines transmitting electricity to meters for the sale of electricity.

4. Organizations or individuals that build or renovate/expand electricity works must use modern technical equipment and technologies conforming to technical regulations, industry standards and Vietnam standards prescribed by competent authorities.

5. The Ministry of Industry and Trade and provincial People’s Committees shall publish a list of electricity projects attracting investment from time to time and licensed investment projects.

Article 12. Use of land for electricity works

1. According to the power development planning and land use planning and plan which have been approved by the competent authority, People's Committees at all levels shall provide adequate land for construction of electricity works.

2. When setting up a project on electricity work construction, the investor must clearly determine the area of land to be used and the compensation and land clearance plan.

3. After the electricity project has been approved, the competent authority shall decide to allocate or lease out land to the investor for execution of the project.

4. People's Committees at all levels shall, within their jurisdiction, preside over and cooperate with electricity project investors in formulating and executing the relocation and land clearance plan; providing compensation for loss of land or property; protecting the area of land reserved for the project and electricity work safety corridor.

Chapter III

THRIFT PRACTICE IN ELECTRICITY GENERATION, TRANSMISSION, DISTRIBUTION AND USE

Article 13. Policies and measures to encourage and promote electricity saving

1. The State shall support and encourage electricity saving by adopting the following policies:

a) Encouraging domestic manufacture or import of, and application of tax incentives to products on the lists of electricity-saving products and equipment, supplies and technology lines imported for manufacture of electricity-saving products;

b) Granting preferential loans from the Development Assistance Fund and the Science and Technology Development Fund to projects on manufacture of electricity-saving products or investment projects serving the energy-saving purpose;

c) Providing investment, electricity price and tax incentives under the guidance of the Ministry of Finance to projects on development of power plants using new energy sources and renewable energy.

2. Ministries, ministerial agencies, Governmental agencies and provincial People's Committees shall set up programs and projects on promotion of economical and efficient use of electricity; provide adequate funding for scientific research and technology development to achieve the electricity-saving objective.

3. According to the socio-economic development objective, the Ministry of Industry and Trade shall cooperate with relevant ministries in designing a national energy efficiency programme and submit it to the Prime Minister for decision.

Article 14. Thrift practice in electricity generation

1. Every electricity generation unit shall select advanced and high-efficiency technologies for electricity generation and adopt the method for optimal operation of electricity generating equipment to save fuels and sources of energy used for electricity generation, contributing to national energy security assurance.

2. Self-consumption power systems in power plants must be appropriately designed and installed, and used during the operation process in a manner that is satisfies the requirements for self-consumption power saving.

Article 15. Thrift practice in electricity transmission and distribution

Transmission lines and electrical substations must meet advanced techno-economic parameters and standards and be operated by optimal methods in order to satisfy the requirements for stable, safe and constant supply of electricity and minimize the loss of electrical energy.

Article 16. Thrift practice in electricity use

1. Organizations and individuals using electricity for production shall:

a) Execute the demand side management program in order to reduce power difference between peak hours and off-peak hours of the power system load profile;

b) Improve and rationalize the process for manufacture and application of technologies and equipment with low power consumption to save electricity;

c) Minimize the use of high-power electrical equipment at peak hours of the power system load profile;

dd) Maintain the power factor according to technical standards and minimize the underload use of electrical equipment;

e) Organize an energy audit on a periodic basis and take adjustment measures after the audit conclusion is given as prescribed by law on energy efficiency.

2. Retail prices of electricity for production, daily life and service provision must be set in a manner that stimulates organizations and individuals to use electricity economically and encourages the use of electricity at off-peak hours, reduce the use of electricity at peak hours of the electric system load profile.

3. Organizations and individuals that manufacture or import lighting and air-ventilating equipment, air conditioners, water pumps, water heaters, lifts and other equipment for domestic purposes must meet the advanced energy efficiency criteria so as to reduce the cost of electricity, thus contributing to electricity saving.

4. Agencies and organizations shall promulgate regulations on thrift practice in electricity use within their respective agencies and organizations.

5. The Government shall direct the establishment and promulgation of energy efficiency criteria applicable to electrical products and commodities.

Chapter IV

ELECTRICITY MARKET

Section 1. PRINCIPLES, ENTITIES AND FORMS OF AND ACTIVITIES ON ELECTRICITY MARKET

Article 17. Rules

1. Ensure publicity, transparency, equality, fair competition and non-discrimination among entities participating in the electricity market.

2. Respect the rights to opt for partners and forms of transactions of entities purchasing and selling electricity on the market appropriate to the level of development of the electricity market.

3. The State shall regulate activities on the electricity market in order to facilitate sustainable development of the power system and satisfaction of the requirements for safe, stable and efficient supply of electricity.

Article 18. Formation and development of electricity market

1. The electricity market is formed and developed at the following levels:

a) Competitive electricity generation market;

b) Competitive wholesale electricity market;

c) Competitive retail electricity market.

2. The Prime Minister shall provide for conditions and structure of electricity industry to form and develop levels of the electricity market; the roadmap for electricity market development, carry out review and adjustment so as to speed up the roadmap in a manner that suits the socio-economic situation from time to time.

Article 19. Entities participating in electricity market

1. Electricity generation units.

2. Electricity transmission units.

3. Electricity distribution units.

4. Electricity wholesalers.

5. Electricity retailers.

6. National load dispatch units.

7. Electricity market transaction regulation units.

8. Electricity consumers.

Article 20. Purchasing and selling electricity on electricity market

1. Entities purchasing and selling electricity on the electricity market consist of:

a) Electricity generation units;

b) Electricity wholesalers;

c) Electricity retailers;

d) Electricity consumers.

2. The purchase and sale of electricity on the electricity market shall be effected in the two following forms:

a) Under a fixed-term contract between the electricity seller and the electricity purchaser;

b) Under a spot contract between the electricity seller and the electricity purchaser through an electricity market transaction regulation unit.

3. Every electricity market transaction regulation unit shall regulate and coordinate transactions in purchase and sale of electricity and ancillary services on the electricity market.

Article 21. Transactions and regulation of transactions on electricity market

1. Main provisions on transactions on the electricity market include:

a) Rights and obligations of entities participating in the electricity market relevant to the levels of development of the electricity market;

b) Specifications of equipment for electricity generation, transmission and distribution;

c) National power system dispatch on the electricity market;

d) Fault handling process;

dd) Spot purchase and sale of electricity on the electricity market;

e) Offering prices and determining market prices;

g) Preparing invoices and making payment between the entities specified in clause 1 Article 20 of this Law and ancillary service providers;

h) Providing ancillary services and prices of ancillary services;

i) Imposing penalties for violations and settling disputes and complaints about electricity purchase and sale and ancillary services on the electricity market;

k) Providing and publicizing information relating to transactions and regulation of transactions on the electricity market.

2. Main provisions on regulation of transactions on the electricity market include:

a) Controlling transactions of the entities participating in the electricity market so as to ensure that the market is operated under provisions on regulation of market transactions and mutual agreement among the parties and other regulations of law;

b) Publicizing spot prices of electricity and prices of ancillary services prescribed in clause 1 of this Article;

c) Providing transaction services and preparing payment invoices for the amount of electricity and power purchased and sold under a spot contract and ancillary services;

d) Receiving and handling proposals related to transactions in electricity purchase and sale on the electricity market in order to ensure the stability and efficiency and prevent unfair competition practices;

dd) Providing information relating to transactions and regulation of transactions on the electricity market to relevant parties;

e) Reporting transactions in the purchase and sale of electricity on the electricity market to the electricity regulatory agency.

3. The Ministry of Industry and Trade shall elaborate on clause 1 and provide guidelines for implementation of clause 2 of this Article in conformity with each level of development of electricity market; prescribe the organizational structure, tasks and specific powers of each electricity market transaction regulation unit.

Section 2. ELECTRICITY PURCHASE AND SALE AND ELECTRICITY SUPPLY SERVICE UNDER FIXED-TERM CONTRACTS

Article 22. Fixed-term power purchase agreements

A fixed-term power purchase agreement (PPA) shall be made in writing and contain the following contents:

1. Contracting parties;

2. Intended uses;

3. Service standards and quality;

4. Rights and obligations of the parties;

5. Electricity prices, methods and time of payment;

6. Conditions for agreement termination;

7. Responsibility for breach of agreement;

8. Term of the agreement;

9. Other contents agreed upon by the two parties.

Article 23. Electricity bill payment

1. The electricity purchaser shall pay fully and on schedule the electricity bill to the electricity seller according to the electricity tariff approved by the competent authority. The electricity bill shall be paid at the headquarters or residence of the electricity purchaser or at a convenient place agreed upon by the two parties in the PPA.

2. If the electricity purchaser delays in paying electricity bills, they must also pay the late payment interest to the electricity seller.

3. If the electricity seller collects electricity bill overpayment, they must refund the excess to the electricity purchaser, including the interest on such overpayment.

4. The rate of interest on the late payment or overpayment shall be agreed upon by the parties under the agreement but shall not exceed the highest interest rate quoted at the time of payment by the bank where the electricity seller's account, as defined in the signed agreement, is opened.

5. The electricity purchaser may request the electricity seller to check the electricity bill payable. Upon receiving the electricity purchaser’s request, the electricity seller shall process it within fifteen days. Where they disagree with the electricity seller, the electricity purchaser shall request the competent authority to initiate the conciliation procedure. In case of no request for conciliation submitted or unsuccessful conciliation, the electricity purchaser shall file a lawsuit at the court in accordance with regulations of law on civil procedures. Pending conciliation results, the electricity purchaser still has to pay the electricity bill and the electricity seller must not disconnect the electricity supply.

6. Where the electricity purchaser does not pay the electricity bill and has been notified of the payment twice by the electricity seller, the electricity seller is entitled to disconnect the electricity supply fifteen days after the first notification. The electricity seller must notify the time of electricity supply disconnection to the electricity purchaser 24 hours in advance and is not required to bear responsibly for the damage caused by the electricity supply disconnection.

Article 24. Electricity metering

1. Electricity generation units, electricity transmission units and electricity distribution units shall invest in and install all electricity metering devices and auxiliary equipment for electricity metering, unless otherwise agreed upon by the parties to safeguard their interests in compliance with regulations of law.

2. Electricity metering devices must satisfy technical requirements for measurement and be inspected, calibrated and tested in accordance with regulations of law on measurement.

3. Electricity meters must be installed on the electricity purchasers’ premises, unless otherwise agreed upon by the parties to safeguard their interests in compliance with regulations of law. The meter installation positions and installation must ensure safety and aesthetic appearance, and prime electricity purchasers to check meter readings and electricity sellers to record meter readings.

4. Electricity purchasers shall protect meters installed on their premises and promptly notify electricity sellers if the meters are found lost or damaged. Electricity sellers shall protect meters installed outside the electricity purchasers' premises.

Article 25. Inspection, calibration and testing of electricity metering devices

1. Only inspection, calibration and testing organizations which have been registered or appointed as prescribed by law on measurement are entitled to inspect, calibrate and test electricity metering devices.

2. Electricity sellers shall carry out inspection, calibration and testing of electricity metering devices in accordance with the requirements and within the time limit specified by regulations of law on measurement.

3. If it is suspected that the electricity metering device operates inaccurately, the electricity purchaser is entitled to request the electricity seller to conduct a check; within three days from the date of receiving the request, the electricity seller must completely check, repair or replace it. In case of disagreeing with the result, the electricity purchaser may request the local authority in charge of state management of electricity activities and electricity use to carry out an independent inspection. Within fifteen days from the date of receiving the request, the local authority in charge of state management of electricity activities and electricity use shall carry out the inspection.

4. The cost of electricity metering device inspection specified in clause 3 of this Article shall be paid as follows:

a) Where the independent inspection organization determines that the electricity metering device operates in accordance with Vietnam standard, the electricity purchaser shall pay the inspection cost.

b) Where the independent inspection organization determines that the electricity metering device fails to operate in accordance with Vietnam standard, the electricity seller shall pay the inspection cost.

5. Where the independent inspection organization determines that the electricity metering device’s readings recorded exceed the actual amount of electricity consumed, the electricity seller shall refund the overpayment to the electricity purchaser.

Article 26. Electric power quality assurance

1. Electricity generation units, electricity transmission units and electricity distribution units must ensure the compatibility of voltage and electric current frequency with Vietnam standards, power, electrical energy and duration of electricity supply as specified in the agreement. In case of failure to satisfy the standards concerning voltage, electric current frequency, power, electrical energy and electricity supply duration under the signed contracts causing damage to the electricity purchaser, the electricity seller must pay compensation to the electricity purchaser according to regulations of law.

2. The electricity purchaser shall ensure that their electrical equipment operates safely so as not to cause any breakdown to power system and not to affect voltage quality of the electrical grid.

Article 27. Electricity supply disconnection and reduction

1. In the case of disconnecting or reducing electricity supply in a non-emergency case, except for the case prescribed in clause 6 Article 23 of this Law, the electricity seller must notify the electricity purchaser thereof at least five days before the electricity supply disconnection or reduction by making an announcement for three consecutive days on the mass media or other means of communication.

2. In the case of disconnecting or reducing electricity supply due to an incident or force majeure event which is beyond the electricity seller's control, thereby seriously threatening the safety of persons and equipment or due to a power shortage which threatens the safety of the power system, the electricity generation unit, electricity transmission unit or electricity distribution unit may disconnect or reduce the electricity supply to the electricity purchaser for handling purpose and must, within 24 hours, notify the electricity purchaser of the cause and the estimated time of electricity supply resumption.

3. Where the electric utility disconnects or reduces the electricity supply in contravention of regulations on electricity supply disconnection or reduction, they shall incur a penalty in accordance with regulations of law on penalties for administrative violations; if any damage is caused, it must pay compensation to the electricity purchaser according to regulations of law.

4. Where the electricity purchaser fails to comply with the regulations set forth in points a and b clause 2 Article 46, points b and c clause 2 Article 47 of this Law, the electricity seller may disconnect the electricity supply to the electricity purchaser.

Article 28. Sale and purchase of electricity with foreign countries

1. The purchase and sale of electricity with foreign countries must be permitted by a competent authority and stated in the electricity license.

2. The purchase or sale of electricity with a foreign country through the national power system must adhere to the following principles:

a) Do not affect the safety, reliability and stability during operation of the national power system;

b) Satisfy techno-economic criteria, process and technical regulations for operation of the national power system;

c) Do not cause harm to the interests of electricity consumers and the State, and national energy security.

3. Electricity consumers in border areas may bypass the national power system to directly buy electricity from foreign countries but must satisfy electrical safety criteria and other relevant regulations of law.

Section 3. ELECTRICITY PRICES

Article 29. Electricity price policies

1. Enable economic sectors to invest in electricity development in a manner that earns reasonable profits, saves energy resource and uses new sources of energy or renewable energy without causing environmental pollution upon carrying out electricity activities, thereby contributing to boosting socio-economic development, especially in rural areas, mountainous areas and islands.

1a. Electricity selling prices shall be set according to the market mechanism and regulated by the State according to the level of development of the electricity market.

2. Encourage the economical and efficient use of electricity.

3. Apply appropriate electricity retail tariff to groups of electricity consumers; provide state subsidies on electricity for domestic use to poor households and social policy households according to the criteria prescribed by the Prime Minister in appropriate response to the socio-economic situation from time to time.

4. Protect the right of entities purchasing and selling electricity on the electricity market to determine electricity purchasing and selling prices themselves within the price bracket and electricity retail tariff.

5. Protect legitimate rights and interests of electric utilities and electricity consumers.

Article 30. Bases for setting and adjusting electricity prices

1. Electricity price policies.

2. Socio-economic development conditions of the country and people's income from time to time.

3. Electricity supply and demand.

4. Electricity production and trading costs and reasonable profits of electric utilities.

5. Level of development of the electricity market.

6. Annually audited financial statements of electric utilities.

Article 31. Electricity prices and fees

1. Retail electricity price shall be set according to the average retail electricity price bracket, price adjustment mechanism and electricity retail tariff prescribed by the Prime Minister according to the level of development of the electricity market, except for the case specified in clause 2 Article 62 of this Law.

The Ministry of Industry and Trade shall preside over and cooperate with the Ministry of Finance in establishing the average retail electricity price bracket, price adjustment mechanism and electricity retail tariff and submit them to the Prime Minister for decision.

The adjustment of the retail electricity price must be made in a public and transparent manner regarding the change of the constituents relating to the price adjustment. The State shall adopt measures to stabilize the electricity selling price in conformity with regulations of law on prices.

2. The brackets of electricity generation prices, wholesale electricity prices, electricity transmission prices, prices of ancillary services for power system, prices for power system dispatch and regulation and prices for electricity market transaction regulation shall be established by the related electric utility; appraised by the electricity regulatory agency before they are submitted to the Minister of Industry and Trade and the Minister of Finance for approval as assigned by the Government, except for the case specified in clause 2 Article 62 of this Law. The Minister of Industry and Trade shall preside over and cooperate with the Minister of Finance in providing guidance on the methods for establishing the brackets of electricity generation prices, wholesale electricity prices, electricity transmission prices, prices of ancillary services for the power system, prices for power system dispatch and regulation and prices for electricity market transaction regulation.

3. The electricity generation prices under fixed-term PPAs and electricity wholesale shall be approved by electric utilities but not exceed the approved brackets of electricity generation prices and wholesale electricity prices.

4. Electricity spot prices shall be fixed at the time of conducting a transaction on the electricity market and publicized by the electricity market transaction regulation unit accordance with points e and h clause 1 Article 21 of this Law.

Chapter V

ELECTRICITY LICENSES

Article 32. Eligible entities, eligibility requirements and modification of electricity licenses

1. Organizations and individuals are granted a license to involve in one or more electricity fields.

2. An organization or individual shall be granted an electricity license or have their electricity license modified when fully satisfying the following eligibility requirements:

a) There is a feasible electricity activity project or plan;

b) There is an application for issuance or modification of the electricity license;

c) The manager has managerial capability and professional qualifications appropriate to the electricity fields.

3. Organizations and individuals applying for issuance or modification of the electricity license shall pay fees under regulations of law.

4. The Government shall elaborate eligibility requirements for issuance of license to each electricity field.

5. The Ministry of Industry and Trade shall prescribe procedures for issuance, extension and modification of electricity license for each electricity field and validity period thereof.

Article 33. Applications for issuance or modification of electricity licenses

1. An application form for issuance or modification of the electricity license.

2. Electricity activity project or plan.

3. Environmental impact assessment report of the electricity activity project approved by the competent authority.

4. List, profiles and diplomas proving capability and professional qualifications appropriate of the electric utility manager.

Article 34. Electricity license exemptions

1. Cases in which exemption from the electricity license is granted:

a) Organizations and individuals that invest in construction of electricity generation establishments for self-consumption purpose without selling electricity to any another organizations and individuals;

b) Organizations and individuals engaging in electricity generation with an installed power which is lower than the power prescribed by the Ministry of Industry and Trade;

c) Electricity traders in rural areas, mountainous areas or on islands purchases electricity with a power not exceeding 50 kVA from the distribution grid to sell electricity directly to consumers in such rural areas or mountainous areas or on such islands.

d) National load dispatch units and electricity market transaction regulation units.

2. Organizations and individuals exempted from electricity licenses under clause 1 of this Article must follow the procedures and technical regulations on management and operation and regulations on electricity prices, technical conditions and safety prescribed in this Law.

3. Provincial People's Committees shall manage and inspect organizations and individuals engaged in electricity activities prescribed in points a, b and c clause 1 of this Article.

Article 35. Contents of an electricity license

1. Name and address of the electricity license holder.

2. Business type.

3. Rights and obligations of the electricity license holder.

4. Scope.

5. Techniques and technologies used to carry out electricity activities.

6. Validity period of the electricity license.

Article 36. Time limit for issuance or modification of electricity licenses

Within thirty days from the receipt of a sufficient application, the competent authority shall issue or modify the electricity license; in case of rejection of the application, a written explanation shall be provided.

Article 37. Revocation of electricity licenses

An organization or individual shall have their electricity license revoked in the following cases:

1. Failure to carry out activities six months after being granted the electricity license;

2. Failure satisfy conditions for conducting electricity activities as prescribed by this Law;

3. Failure to comply with the regulations set out in the electricity license;

4. Leasing or lending their electricity license or modifying it without permission.

Article 38. Power to issue, modify or revoke electricity licenses

1. The Ministry of Industry and Trade shall issue electricity licenses to electricity generation units, electricity transmission units and electricity distribution units establishing a connection to the national power system, electricity wholesalers, electricity retailers and electrical consulting service providers.

2. Provincial People's Committees shall grant electricity licenses to organizations and individuals engaged in small-scale electricity activities under the guidance of the Ministry of Industry and Trade.

3. The authority issuing electricity licenses is entitled to modify or revoke electricity licenses. The modification of an electricity license shall be appropriate to the capacity of the license holder.

4. The issuance of the electricity license covering electricity generation, transmission or distribution must conform to the approved power development planning.

Chapter VI

RIGHTS AND OBLIGATIONS OF ELECTRIC UTILITIES AND ELECTRICITY CONSUMERS

Article 39. Rights and obligations of electric utilities

1. An electricity generation unit has the right to:

a) Generate electricity and carry out other activities under its electricity license;

b) Establish connection to the national power system when satisfying the technical conditions and standards;

c) Sell electricity to electricity purchasers under fixed term agreements and offer spot selling prices of electricity on the electricity market;

d) Obtain necessary information relating to electricity generation;

dd) Request a competent authority to make amendments to technical regulations, techno-economic standards and norms in service of electricity generation;

e) Other rights prescribed by law.

2. An electricity generation unit has the obligation to:

a) Comply with procedures and technical regulations on operation of power plants and electrical grids; in the case of a hydropower plant, comply with regulations on safety of hydropower plants and operation of reservoirs;

b) Follow operation methods, command and control orders of the national load dispatch unit;

c) Handle incidents;

d) Where human life and safety of equipment are threatened, disconnect or reduce the electricity generation if no measure is taken;

dd) Abide by regulations on electricity market of this Law and other relevant regulations of law;

e) Report the readiness for electricity generation, reserve power and adoption of methods for power plant operation at the request of the national load dispatch unit, electricity market transaction regulation unit, electricity regulatory agency or competent authority;

g) Comply with regulations of law on environmental protection during electricity generation;

h) Immediately notify the national load dispatch unit and related organizations and individuals of any fault in electricity generation;

i) Invest in electrical substations, meters and lines transmitting electricity to meters for the electricity purchaser, unless otherwise agreed with the electricity transmission unit, electricity distribution unit or electricity purchaser to safeguard interests of the parties in compliance with regulations of law.

k) Other obligations prescribed by law.

Article 40. Rights and obligations of electricity transmission units

1. An electricity transmission unit has the right to:

a) Transmit electricity under its electricity license;

b) Set and submit electricity transmission prices for approval;

c) Obtain necessary information relating to electricity transmission;

d) Request a competent authority to make amendments to technical regulations, techno-economic standards and norms in service of electricity transmission;

d1) Establish connection to the transmission grid built by economic sectors when satisfying the technical conditions and criteria;

dd) Other rights prescribed by law.

2. An electricity transmission unit has the obligation to:

a) Ensure the transmission grid and electricity transmission equipment operate in a safe, stable and reliable manner;

b) Provide transmission services and ancillary services to relevant parties, except where the electrical grid is overloaded as certified by the electricity regulatory agency;

c) Follow operation methods, command and control orders of the national load dispatch unit;

d) Handle incidents;

dd) Where human life and safety of equipment are threatened, disconnect or request the national load dispatch unit to reduce the electricity supply if there is no alternative;

e) Formulate a plan for investment in transmission grid development and invest in the transmission grid development to satisfy the electricity transmission demands under the power development planning; invest in electricity metering devices and auxiliary equipment, unless otherwise agreed with the electricity transmission unit, electricity distribution unit or electricity purchaser to safeguard interests of the parties in compliance with regulations of law;

g) Report the readiness for electricity transmission and reserve capacity of electricity transmission equipment at the request of the national load dispatch unit, electricity market transaction regulation unit, electricity regulatory agency or competent authority;

h) Immediately notify the national load dispatch unit and related organizations and individuals of any fault in the transmission grid;

h1) Protect the right of organizations and individuals conducting electricity activities to establish connection to the transmission grid they build; in the case of refusing the connection, follow the regulations laid down by the Minister of Industry and Trade;

i) Other obligations prescribed by law.

Article 41. Rights and obligations of electricity distribution units

1. An electricity distribution unit has the right to:

a) Distribute electricity and carry out other activities under its electricity license;

b) (annulled)

c) Enter the electricity purchaser’s premises to operate, maintain, repair or replace electrical equipment of the electricity distribution unit;

d) Obtain necessary information relating to electricity distribution;

dd) Request a competent authority to make amendments to technical regulations, techno-economic standards and norms in service of electricity distribution;

e) Other rights prescribed by law.

2. An electricity distribution unit has the obligation to:

a) Ensure the transmission grid and electricity distribution equipment operate in a safe, stable and reliable manner;

b) Provide electricity distribution services for electricity consumers, electricity retailers and electricity wholesalers in compliance with technical standards, service quality and safety standards under the agreement, except where the distribution grid is overloaded as certified by the electricity regulatory agency;

c) Formulate a plan for investment in distribution grid development and invest in the distribution grid development to satisfy the electricity distribution demands under the power development planning; invest in electricity meters and lines transmitting electricity to meters for the electricity purchaser, unless otherwise agreed with the electricity purchaser to safeguard interests of the parties in compliance with regulations of law;

d) Execute the national target program for demand side management;

dd) Follow operation methods, command and control orders of the national load dispatch unit;

e) Report the readiness for operation, reserve capacity of the electrical grid and electricity distribution equipment, electricity demands in its operating area at the request of the national load dispatch unit, electricity market transaction regulation unit, electricity regulatory agency or competent authority;

g) Handle incidents;

h) Where human life and safety of equipment are threatened, disconnect or reduce the electricity distribution if there is no alternative;

i) Resume the electricity supply within 2 hours after detecting the fault or receiving the electricity purchaser’s notification; in case of failure to do so within the abovementioned time limit, immediately notify the electricity purchaser of the cause and estimated time of electricity supply resumption;

k) Other obligations prescribed by law.

Article 42. Rights and obligations of the national load dispatch unit

1. The national load dispatch unit has the right to:

a) Command and control electricity generation units, electricity transmission units and electricity distribution units to follow the national power system operation method.

b) Adjust the plan and method for mobilizing capacity of power plants;

c) Command the handling of emergency or unusual situations in the national power system; mobilize capacity and electrical energy of power plants in the national power system; command the operation of transmission and distribution grids; disconnect or reduce the electricity supply in case the safe and reliable operation of the national power system is threatened;

d) Request relevant electric utilities to provide information on technical specifications, readiness for participation in operation and load carriage of equipment for electricity generation, transmission and distribution; consumers’ electricity demands in order to determine the method for operation of the national power system;

dd) Other rights prescribed by law.

2. The national load dispatch unit has the obligation to:

a) Ensure safe, stable and economical operation of the national power system;

b) Satisfy standards in national power system frequency and voltage on the national transmission grid;

c) Comply with regulations on national load dispatch on the electricity market, transmission grid and guidelines of the electricity regulatory agency and electricity market transaction regulation unit; electricity regulatory agency or competent authority; avoid discrimination when mobilizing power and electricity of electric utilities in the national power system;

d) Devise and follow the method for national power system operation according to the plan and method for mobilizing power of power plants and ancillary announced by the electricity market transaction regulation unit;

dd) Notify the power, amount of electricity and ancillary services mobilized so as for the electricity market transaction regulation unit to prepare payment invoices;

e) Promptly report to the electricity regulatory agency and notify the electricity market transaction regulation unit of the emergency or unusual situations which seriously threaten safe and reliable operation of the national power system;

g) Other obligations prescribed by law.

Article 43. Rights and obligations of electricity wholesalers

1. An electricity wholesaler has the right to:

a) Sell electricity wholesale and carry out other activities under its electricity license;

b) Directly purchase electricity from electricity generation units under a fixed term agreement or under a spot agreement on the electricity market;

c) Fix wholesale electricity price within the wholesale electricity price bracket approved to compete to purchase and sell electricity on the electricity market;

d) Use electricity transmission and distribution services appropriate to each level of the electricity market;

dd) Enter the electricity purchaser’s premises to check meters, and record their readings and contact consumers;

e) Obtain necessary information relating to electricity wholesaling;

g) Other rights prescribed by law.

2. An electricity wholesaler has the obligation to:

a) Sell electricity according to the quantity, quality and prices agreed upon in the agreement;

b) Abide by regulations on electricity market of this Law and other relevant regulations of law;

c) Pay compensation when causing damage to the electricity purchaser or electricity seller according to regulations of law;

d) Provide necessary information relating to the amount of electricity sold wholesale at the request of the national load dispatch unit or competent authority;

dd) Other obligations prescribed by law.

Article 44. Rights and obligations of electricity retailers

1. An electricity retailer has the right to:

a) Retail electricity under its electricity license;

b) Compete to purchase and sell electricity on the electricity market;

c) Fix prices on the competitive retail electricity market as prescribed in clause 1 Article 31 of this Law, except for the case specified in clause 2 Article 62 of this Law;

d) Use electricity transmission and distribution services appropriate to each level of the electricity market;

dd) Enter the electricity purchaser’s premises to check meters and record their readings, and contact consumers;

e) Obtain necessary information relating to electricity retail;

g) Other rights prescribed by law.

2. An electricity retailer has the obligation to:

a) Sell electricity according to the quantity, quality and prices agreed upon in the agreement;

b) Abide by regulations on electricity market of this Law and other relevant regulations of law;

c) Formulate and submit to the provincial People's Committee for approval of the domestic retail electricity prices for rural areas, mountainous areas and islands where the electricity production and supply under the market mechanism fail to offset the costs incurred by the electricity retailer;

d) Openly post at its premises and transaction the approved electricity price tariff; documents providing guidance on the procedures for electricity supply, electricity metering, counting, recording of meter readings, invoice preparation, electricity bill collection and termination of electricity services; contents of the electricity license and technical standards applicable to holders of the electricity license covering electricity retail; documents specifying the time and necessary costs of supply of electricity to consumers establishing connection to the power system; regulations on electricity supply disconnection and reduction according to Article 27 of this Law;

dd) Provide electrical safety instructions for electricity consumers;

e) Pay compensation when causing damage to the electricity purchaser or electricity seller according to regulations of law;

g) Provide necessary information relating to the amount of retailed electricity at the request of the competent authority;

h) Other obligations prescribed by law.

Article 45. Rights and obligations of electrical consulting service providers

1. An electrical consulting service provider has the right to:

a) Provide consulting services under its electricity license;

b) Request a competent authority to make amendments to technical regulations, techno-economic standards and norms in service of electrical consulting;

c) Request relevant agencies to provide necessary information in accordance with regulations of law in favor of the provision of electrical consulting services;

d) Cooperate with foreign organizations and individuals in electrical consulting;

dd) Other rights prescribed by law.

2. An electrical consulting service provider has the obligation to:

a) Apply Vietnam’s technical regulations, techno-economic standards and norms in relation to electrical planning and construction consulting. In case a foreign technical regulation or foreign standard is applied, it must be approved by a competent authority.

b) Apply advanced technologies and calculation methods in order to formulate an power development planning scheme, and files and documents on investment in construction of electricity works according to the requirements for modernization in the field of electricity generation, electricity transmission and electricity distribution, thereby increasing the economic efficiency and ensuring safety and high reliability in construction of electricity works;

c) Take responsibility for quality of the products and services provided;

d) Other obligations prescribed by law.

Article 46. Rights and obligations of electricity consumers

1. An electricity consumer has the right to:

a) Select the electricity seller in the competitive retail electricity market;

b) Receive adequate amount of power and electricity of the quality agreed upon in the agreement;

c) Request the electricity seller to promptly resume the electricity supply after blackouts;

e) Obtain information relating to the sale of electricity and electrical safety instructions;

dd) Receive compensation for the damage caused by the electricity seller according to regulations of law;

e) Request the electricity seller to check quality of electricity services, accuracy of electricity metering equipment and electricity bill payable;

g) Complain about and denounce violations against regulations of law on electricity committed by the electricity seller;

h) Other rights prescribed by law.

2. An electricity consumer has the obligation to:

a) Pay fully and on schedule electricity bills and adhere to other agreements in the PPA;

b) Use electricity in a safe, economical and efficient manner; comply with regulations on demand side management;

c) Promptly disconnect the electricity supply or reduce the electricity consumption upon receipt of the electricity seller’s notification in the cases prescribed in Article 27 of this Law;

d) Notify the electricity seller five days in advance of their need to suspend the PPA or fifteen days in advance of their need to terminate the PPA;

dd) Promptly notify the electricity seller of the unusual events that may cause a blackout or threaten safety of people and property;

e) Prime the electricity seller to check meters and record their readings, and make contact;

g) Ensure electrical equipment satisfies technical standards and electrical safety requirements;

h) Pay compensation when causing damage to the electricity seller according to regulations of law;

i) Take responsibility for investing in transmission lines connecting meters to consumers;

k) Other obligations prescribed by law.

Article 47. Rights and obligations of large electricity consumers

1. A large electricity consumer has the right to:

a) The rights specified in clause 1 Article 46 of this Law;

b) Directly purchase electricity from electricity generation units under a fixed term agreement or under a spot agreement on the electricity market;

c) Establish direct connection to the national transmission grid.

2. A large electricity consumer has the obligation to:

a) The obligations specified in clause 2 Article 46 of this Law;

b) Implement the regime for electricity use at the request of the national load dispatch unit, measures to satisfy the voltage standards and ensure electrical safety and other regulations agreed upon in the PPA and electricity transmission agreement;

c) Ensure that electrical equipment and connection equipment satisfy technical regulations and electrical safety requirements for connection to the national transmission grid;

d) Obey operation orders of the national load dispatch unit.

Chapter VII

PROTECTION OF ELECTRICAL EQUIPMENT, ELECTRICITY WORKS AND ELECTRICAL SAFETY

Article 48. Responsibility for protection of electrical equipment, electricity works and electrical safety

1. Organizations and individuals shall comply with regulations of law on protection of electrical equipment, electricity works and electrical safety.

2. Organizations and individuals shall promptly notify electric utilities or competent authorities of electrical unsafety and violations against regulations on protection of electrical equipment, electricity works and electrical safety upon the detection thereof.

3. Ministries, ministerial agencies, Governmental agencies and People's Committees at all levels shall organize and direct the observance of regulations of law on protection of electrical equipment, electricity works and electrical safety.

Article 49. Responsibility for cooperation upon construction, renovation and termination of operation of electricity works and other works

1. If the construction, renovation or expansion of public works or other works potentially affects the safety of electrical equipment, electricity works and electrical safety, the investor must cooperate with electric utilities for actions.

2. If the repair, renovation, construction and installation of electrical equipment and electricity works potentially affect public works or other works, the electric utility must cooperate with organizations and individuals for actions.

3. Where the involved parties fail to reach agreement, they may request a competent authority to take actions and abide by the competent authority’s decision.

4. When an electricity work is no longer in operation, it must be handled and managed for safety as prescribed by the Government.”

Article 50. High voltage electrical grid safety corridors

1. A high voltage electrical grid safety corridor is the delimited space along an electricity transmission line or around an electrical substation and specified according to each voltage level.

2. High voltage electrical grid safety corridors include:

a) Safety corridors of overhead transmission lines;

b) Safety corridors of underground electric cables;

c) Safety corridors of transformer substations;

3. The Government shall elaborate on high voltage electrical grid safety corridors.

Article 51. Protection of safety corridors of overhead transmission line

1. The owner or occupier of a house or work which is permitted to exist within the safety corridor of overhead transmission lines must not use the roof or any part of such house or work for the purposes which may encroach upon the safety distance of electrical discharge by voltage level and must comply with regulations on assurance of overhead transmission line safety upon repair and renovation of houses and works.

2. Before granting an organization or individual the license for construction, expansion or renovation of their house or work within the overhead transmission line safety corridor, the licensing authority must request the investor in such house or work to reach a written agreement with the unit in charge of management of high voltage electrical grids on the measures to assure the safety of the overhead transmission lines and the safety during the construction, expansion, renovation or use of such house or work.

3. Houses and works where people regularly live or work are not permitted to exist within safety corridors of overhead transmission lines of 500 kV or higher, except for specialized works in service of operation of such electrical grid.

4. All activities which involve the use of equipment, instruments or vehicles which may encroach upon the safety distance of electrical discharge by voltage level are banned from being carried out within safety corridors of overhead transmission lines. In case of emergency for national defense and security reasons, it is required to reach an agreement with the unit in charge of management of electrical grids on the necessary safety assurance measures.