Decree 133/2026/ND-CP: Administrative Penalties for Violations in the Electricity Sector
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Based on:133/2026/NĐ-CP - Government Official Gazette
This explanation was generated by AI and checked by an automated AI review, not by a human expert. It is not legal, tax or accounting advice and may contain errors. Check the official document before you rely on it.
Decree No. 133/2026/ND-CP, issued on April 6, 2026, sets out detailed administrative penalties for violations in Vietnam's electricity sector, replacing earlier rules to align with the 2024 Electricity Law (Law No. 61/2024/QH15). It applies to all Vietnamese and foreign organizations and individuals operating in the electricity sector, including power generation, transmission, distribution, wholesale and retail electricity units, as well as electricity end users. The maximum fine is VND 100 million for individuals and VND 200 million for organizations per violation. The decree sets specific fine brackets for each category of violation: electricity operating license violations (up to VND 200 million for unlicensed operation by organizations), violations in developing self-produced, self-consumed rooftop solar and wind power connected to the grid, violations in power generation, transmission and distribution (substandard metering equipment, failure to report operational data), violations in wholesale and retail electricity trading (selling at incorrect prices, failing to sign contracts on time, unauthorized electricity import or export), and violations by electricity users (electricity theft, unauthorized tampering with connections, obstructing inspections). Beyond fines, the decree also allows confiscation of violating equipment and remedial measures such as forfeiture of illegal gains, forced dismantling of unauthorized wind or solar power plants, and restoration of the original condition. For businesses operating in the power sector (generation, transmission, distribution, wholesale, retail), this is an important legal framework to review to avoid heavy fines and license revocation risk. For ordinary electricity-using businesses, the relevant content is mainly about using electricity for its intended purpose, not tampering with metering equipment, and cooperating with inspections. The decree does not touch on tax, accounting, e-invoicing, labor, or customs matters, so it falls outside the platform's core coverage focus.
Scope and Subject of Application
Decree No. 133/2026/ND-CP (issued April 6, 2026, published in Official Gazette No. 237 dated April 21, 2026) sets out administrative violations, forms of penalty, fine amounts, remedial measures, and the authority to record and impose penalties in the electricity sector. It is issued under the Law on Government Organization No. 63/2025/QH15, the Law on Handling of Administrative Violations No. 15/2012/QH13 (as amended multiple times), and the Electricity Law No. 61/2024/QH15 (as amended by Law No. 94/2025/QH15).
It applies to Vietnamese and foreign organizations and individuals committing violations within Vietnam's territory, including state agencies, public non-business units, socio-political organizations, cooperatives, foreign-invested enterprises, and branches or representative offices of foreign traders.
General Penalty Principles
- Statute of limitations: 1 year generally, extended to 2 years for violations related to power generation, electricity import or export, and electricity trading.
- Maximum fine: VND 100 million per individual and VND 200 million per organization for each violation (organizations are generally fined at double the individual rate, except where a provision specifically targets organizations).
- Primary penalties: warning or fine; additional penalty: confiscation of violating exhibits or equipment.
- Remedial measures may also apply, such as forfeiture of illegal gains, restoration of original condition, and forced dismantling of non-compliant facilities.
Main Categories of Violations (Chapter II)
Electricity Operating Licenses (Article 6)
Penalties range from a warning up to VND 200 million for organizations, covering failures to retain the license, late reporting, failure to amend the license, falsifying license application documents, leasing or borrowing a license, and operating without a license or with an expired or revoked license. The heaviest penalty bracket (VND 170-200 million) applies to operating with no license at all.
Self-Produced, Self-Consumed Rooftop Solar and Wind Power (Article 7)
Fines range from a warning up to VND 100 million for violations in notifying and registering self-consumption power sources at various voltage levels; the highest bracket applies to failing to dismantle wind or solar power plants when required, or breaching commitments made during offshore wind survey or investment activities.
Generation, Transmission, and Distribution Activities (Articles 8-10)
Fines of VND 10-150 million apply to generation, transmission, and distribution units for failing to report or misreporting operational data, using uncalibrated metering equipment, improper technical connections, and failing to meet service commitments or quality standards.
Wholesale and Retail Electricity Trading (Articles 11-12)
Fines of VND 10-180 million apply to wholesale and retail electricity units for selling at incorrect prices, non-compliant sale contracts, exceeding negotiation deadlines, unauthorized electricity import or export, harassing customers for personal gain, and failing to sign contracts with residential customers on time.
Electricity Use (Article 13)
Fines of VND 3-80 million apply to electricity users for obstructing inspections, damaging the seller's electrical system, misusing electricity, unauthorized tampering with connections or equipment, and electricity theft (VND 4-20 million depending on the value stolen, with cases of VND 2 million or more, or meeting the criteria of Article 173 of the Penal Code, referred for criminal prosecution). Landlords overcharging tenants for electricity and large electricity users failing to follow dispatch orders or invest in required metering are also covered.
Enforcement Authority
The decree assigns penalty authority to inspection team leaders, the Director of the Electricity Department, the Director of the Industrial Safety Technique and Environment Department (Ministry of Industry and Trade), and police forces at various levels (from commune police to specialized departments of the Ministry of Public Security), each with maximum fines up to VND 100 million for individuals and VND 200 million for organizations. The decree also addresses handling of violations conducted electronically and requires notifying the licensing authority for possible license revocation in serious cases.
Assessment
This is a sector-specific decree affecting mainly power generation, transmission, distribution, wholesale, and retail electricity businesses, as well as large electricity users. It has no content related to tax, accounting, e-invoicing, labor, or customs.