Penalties in Electricity Activities Under the New Framework: Common Violations of Enterprises With Self-Generation

From 25 May 2026, administrative penalties in electricity activities operate under Decree 133/2026/ND-CP — the instrument replacing most of the electricity content of Decree 134/2013, which had applied for over a decade. For enterprises with self-generation — factories with rooftop solar, standby generator sets, self-production self-consumption systems — the common violations sit in source notification/registration, operation beyond registered capacity, and electricity trading in the wrong form. This article sets out what the new frame changed, the typical violations of self-generating enterprises, and the procedure when penalised.

Governing Instruments

The new frame: Decree 133/2026 replaces the electricity part of Decree 134/2013

Decree 133/2026/ND-CP on administrative penalties in the electricity sector takes effect on 25 May 2026, repealing the core electricity provisions of Decree 134/2013/ND-CP (as amended by Decree 17/2022/ND-CP) and restructuring the field comprehensively: violations, fine levels, remedial measures and penalty authority are rearranged under Electricity Law 61/2024 and the amended Law on Handling of Administrative Violations. The maximum fine in this field reaches VND 200 million for organisations — above the old frame levels. The transition rule in Article 31: a violation committed and ended before the decree effective date is handled under the frame in force at the time of the act; a violation still ongoing when the decree takes effect is handled under Decree 133/2026. Enterprises must identify the applicable frame by the timing of the act, not default to the new frame for every case.

Where do self-generating enterprises sit in the penalty frame?

Self-production and self-consumption — especially rooftop solar for own use — is governed simultaneously by three layers: (i) development conditions and source notification/registration under the Decree 58/2025/ND-CP framework (replacing Decree 135/2024) and the surplus-sale ceiling under Decree 243/2026; (ii) technical and safety conditions for grid connection (electrical installation codes, relay protection, no reverse feed into the grid without permission); and (iii) the electricity-activity licensing regime for activities beyond own-use thresholds (generating for sale, distribution within an area). A breach in any layer can be handled under Decree 133/2026 in the corresponding violation group: electricity activity not meeting conditions, connection and operation violations, improper electricity trading, or failure to notify and report.

Application Analysis

Common violations of self-generating enterprises

Five recurring violations in practice: (1) installing rooftop solar without notification, or with incomplete notification, to the authority/power utility under the self-production self-consumption framework; (2) operating beyond the notified/registered capacity — quietly adding panels or inverter capacity after acceptance; (3) feeding surplus power into the grid without a mechanism and agreement for the surplus, or selling surplus beyond the permitted ratio ceiling under the current frame (the 50% ceiling after Decree 243/2026 with its accompanying conditions); (4) selling electricity to third parties inside the premises (leasing factory space with electricity resale) without the proper electricity-activity status and licence — this error turns a premises lease into unlicensed retail electricity activity; (5) missing technical and safety files: no connection acceptance, unrecorded equipment changes, missing safety inspection for generator sets and backup systems. The specific fine for each act sits in the corresponding provisions of Decree 133/2026 and must be checked at the time the violation record is drawn.

Penalty procedure and complaints

The standard sequence: an administrative-violation record is drawn when the act is detected; the competent person issues a penalty decision within the statutory period together with remedial measures (compelled dismantling of the violating part, compelled restoration of operation to the registered conditions, compelled surrender of unlawful gains if any). The enterprise has the right to explain before the penalty decision issues for cases eligible for explanation, and the right to complain against the penalty decision under the Law on Complaints or to bring an administrative lawsuit if it considers the decision unfounded — the first two points to check are the applicable frame by act timing (Article 31 of Decree 133/2026: acts ended before 25 May 2026 take the frame at the time of the act) and the decision-maker authority under the new delegation. During a complaint, safety-related remediation should still be done immediately, because electrical-safety risk is independent of the dispute over the fine.

Recommended Actions

Map the applicable frame by act timing (before/after 25 May 2026) for every matter under review.
Audit all self-generation sources: notification/registration, actual capacity versus file, surplus-power handling mechanism.
Stop immediately any on-premises electricity resale to third parties without proper electricity-activity status.
Complete the technical files: connection acceptance, safety inspection, equipment-change records.
Set up a violation-record response process: timely explanation, authority and applicable-frame checks, complaints where grounded.

Frequently Asked Questions

What common violations do self-generating enterprises commit, and what are the fines?

Common violations: failing to notify a rooftop solar source under the self-production self-consumption framework; operating beyond registered capacity; feeding surplus power to the grid without a surplus mechanism or selling beyond the ratio ceiling; unlicensed electricity resale to third parties inside the premises; and missing acceptance and safety-inspection files. Fines follow the corresponding provisions of Decree 133/2026/ND-CP (general ceiling up to VND 200 million for organisations) — the specific level must be checked by act and by the frame applicable at the time of the violation.

What did the new penalty frame for electricity activities change compared with before?

Decree 133/2026/ND-CP (effective 25 May 2026) replaces most of the electricity content of Decree 134/2013 (as amended by Decree 17/2022): it restructures violations, fine levels and authority under Electricity Law 61/2024, with an organisation fine ceiling up to VND 200 million. Article 31 sets the transition: acts ended before the effective date take the frame at the time of the act; acts still ongoing when the decree takes effect take the new frame.

How is a self-producing rooftop solar enterprise handled if it exceeds registered capacity?

Operating beyond the notified/registered capacity breaches the operating conditions of a self-production self-consumption source: the enterprise may be fined under Decree 133/2026 in the corresponding violation group, with remedial measures compelling capacity back to the file or completion of adjustment procedures, plus technical-commercial consequences on the connection side (the power utility may require disconnection until remedied). Enterprises should audit actual capacity against the file before being inspected.

What is the penalty procedure, and how are electricity penalty decisions challenged?

The sequence: a violation record is drawn, then a penalty decision with remedial measures issues within the statutory period. The enterprise may explain before the decision issues (for explanation-eligible cases) and complain under the Law on Complaints or file an administrative lawsuit. The first two checks: the applicable frame by act timing under Article 31 of Decree 133/2026, and the decision-maker authority under the current delegation.