THE MINISTRY OF INDUSTRY
SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
Hanoi, December 20, 2006
GUIDING THE APPLICATION OF SELLING PRICES OF ELECTRICITY
Pursuant to the Government's Decree No.55/2003/ND-CP of May 28, 2003, defining the functions, tasks, powers and organizational structure of the Ministry of Industry;
Pursuant to the December 3, 2004 Electricity Law and the Government's Decree No. 105/2005/ND-CP of August 17, 2005, detailing and guiding the implementation of a number of articles of the Electricity Law;
Pursuant to the Prime Minister's Decision No. 276/2006/QD-TTg of December 4, 2006, on selling prices of electricity, and the Industry Minister's Decision No. 45/2006/QD-BCN of December 14, 2006, on wholesale prices of electricity applicable to rural areas and wholesale prices applicable to dormitories and residential quarters;
After consulting the Ministry of Finance, the Ministry of Industry guides the application of selling prices of electricity as follows:
I. GENERAL PROVISIONS
1 This Circular guides the implementation of the Prime Minister's Decision No. 276/2006/QD-TTg of December 4, 2006, on selling prices of electricity (hereinafter referred to as Decision No. 276/2006/QD-TTg), and the Industry Minister's Decision No. 45/2006/QD-BCN of December 14, 2006, on wholesale prices of electricity applicable to rural areas, dormitories and residential quarters (hereinafter referred to as Decision No. 45/2006/QD-BCN).
2. The retail prices of electricity specified in Clause a and Clause b, Article 3 of Decision No. 276/2006/QD-TTg and the wholesale prices of electricity applicable to rural areas and dormitories and residential quarters specified in Decision No. 45/2006/QD-BCN apply to subjects that sign electricity purchase and sale contracts directly with units selling electricity from the national grid. The selling prices of electricity are based on electricity quality standards stipulated in the Government's Decree No. 105/2005/ND-CP of August 17, 2005, detailing and guiding the implementation of a number of articles of the Electricity Law.
3. The signing of electricity sale and purchase contracts complies with the provisions of the Electricity Law and other current regulations.
4. The selling prices of electricity must be correctly applied to proper subjects and for proper use purposes as guided in this Circular.
The electricity buyer has the responsibility to declare correctly the electricity use purposes for application of the selling price of electricity in accordance with this Circular.
If the electricity buyer changes the electricity use purpose, thus leading to price change, it must notify the electricity seller thereof 15 days in advance for adjustment of the contractual price. The electricity seller shall inspect and promptly apply a proper selling price of electricity to the electricity buyer according to regulations.
In case of wrong application of the price to an electricity user, thus causing damage to the electricity buyer or the electricity seller, an electricity charge shall be retrospectively collected or refunded. When the time of wrong application of the price cannot be determined, an electricity charge arising within 12 months preceding the time of detection of the wrong application shall be retrospectively collected or refunded.
5. When the electricity buyer uses electricity for different purposes at different prices, the electricity seller shall install separate meters for each price; Pending the installation of separate meters, the electricity buyer and seller shall base on the actual use of electricity to determine the specific percentages of electricity volume at each price and include them in the electricity purchase and sale contract.
6. If the electricity buyer uses electricity during the time when the electricity meter is lost or does not work, the volume of the used electricity shall be determined under the provisions of Clause 3, Article 14 of the Government's Decree No. 105/2005/ND-CP and of the electricity purchase and sale contract. The applicable electricity price accords with the electricity use purpose indicated in the electricity purchase and sale contract. Particularly for the electricity user to which three prices are applied, the selling price of electricity is the average of the last three cycles of meter recording; if only one cycle is or two cycles are available, the selling price of electricity applicable during regular hours shall be applied.
7. The retail prices of electricity sold directly by independent electricity generation units to electricity-using organizations and individuals comply with the provisions of Point c, Article 3 of Decision No. 276/2006/QD-TTg.
8. In this Circular, the terms below are construed as follows:
a/ Electricity buyer means an organization or individual signing a contract on purchase of electricity from the electricity seller for direct use or resale to other organizations or individuals.
b/ Electricity seller means a unit that wholesales or retails electricity and is licensed to conduct electricity activities in the domain of electricity wholesale and retail.
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