Solar power investor in Gia Lai complains about suspension of electricity purchase and sale

The purchase of electricity from rooftop solar power systems in Krông Pa district has been suspended. Photo: Thanh Tuan

Businesses file complaints against Gia Lai Power Company.

On July 7th, representatives from two rooftop solar power investors in Krông Pa district stated that they had submitted complaints to the Provincial People's Council, the Internal Affairs Committee, the Department of Industry and Trade, and the Gia Lai Provincial Party Committee's Inspection Committee regarding the termination of electricity purchase agreements by Gia Lai Power Company.

The investor argues that the unilateral termination of the power purchase agreement is a violation that infringes on their rights and causes economic losses to the business. The investor requests that the competent authorities promptly take preventative measures in accordance with the law.

Previously, Gia Lai Power Company ( thuộc Central Vietnam Power Corporation) sent out a notice about temporarily suspending the purchase of rooftop solar power from Thanh Danh Production and Trading Co., Ltd. and Van Phat Green Energy Co., Ltd. (located in Krong Pa district).

According to Gia Lai Power Company, the suspension of electricity purchases, effective from May 24, 2024, is due to the investor's failure to rectify construction issues and the removal of 953 solar panels from the system that increased the power generation capacity.

Ms. Nguyen Thi Mong Huyen, the legal representative of the two companies, expressed her strong dissatisfaction with this decision. She stated that the electricity sector not only owes the two businesses nearly 30 billion VND for electricity purchased since 2021, but has also unilaterally suspended purchasing electricity for the grid.

Two rooftop solar power investors are complaining about Gia Lai Power Company's unilateral breach of contract. Photo: Thanh Tuan.

"The Gia Lai Power Company's reason for suspending electricity purchases is completely unreasonable, putting businesses in a difficult situation if they don't comply with their wishes. Businesses only hope to find justice from the final ruling of the Supreme Court," said Ms. Nguyen Thi Mong Huyen.

The matter has not been resolved completely.

According to Ms. Huyen, the electricity sales facilities of Thanh Danh Production and Trading Co., Ltd. and Van Phat Green Energy Co., Ltd. are rooftop solar power systems for livestock, crop, and forestry facilities, etc., in accordance with Circular No. 02/2020/TT-BNNPTNT. Farm owners are responsible for organizing production and business activities in accordance with the land use plan in the area.

Therefore, these two electricity sales facilities are not subject to the mandatory requirement to supplement construction safety documentation and procedures. Meanwhile, both power systems had completed their construction acceptance documentation, signed electricity sales contracts, and were put into operation before December 26, 2020.

Gia Lai Power Company also requested the two investors to separate the connection of 953 photovoltaic panels corresponding to the capacity not included in the power purchase agreement. According to Ms. Huyen, this request is unfounded, and the determination of whether the businesses arbitrarily installed more capacity than permitted is currently under dispute and awaiting a decision from a competent court.

Regarding the dispute between the Electricity sector and the investor, the Standing Committee of the Gia Lai Provincial People's Council has forwarded the petition to the Chairman of the Provincial People's Committee for consideration, resolution, and response to the companies in accordance with regulations.

There is no basis to confirm that the company installed the additional solar panels on its own initiative. Photo: Thanh Tuan

As reported by Lao Dong Newspaper, in 2023, the High People's Court in Da Nang ruled that the Central Power Corporation and Gia Lai Power Company lacked documents and evidence to prove the location and time of installation of the solar panels.

Furthermore, electricity production from April 2021 to September 2022 fluctuated, not simply increasing. Therefore, the electricity sector believes that the claim by the two companies that they arbitrarily installed an additional 953 solar panels is unfounded.

In fact, for more than three consecutive years, Gia Lai Power Company has been purchasing electricity generated by Thanh Danh Production and Trading Co., Ltd. and Van Phat Green Energy Co., Ltd., but has refused to pay for the electricity, trapping the businesses in debt and causing them to struggle through prolonged legal battles…

From October 2023 to the present, the entire case file is currently being received and processed by the Supreme People's Court according to its jurisdiction, awaiting the setting of a trial date.

Source: https://laodong.vn/kinh-doanh/chu-dau-tu-dien-mat-troi-o-gia-lai-khieu-nai-vi-bi-tam-dung-mua-ban-dien-1362884.ldo