Clarifying the responsibility for registering the contract according to the form of Nghe An Water Supply Company Limited

(Baonghean) -Studying the clean water supply contract form established by Nghe An Water Supply Company Limited since 2012 to transact with organizations and individuals that Mr. Tran Xuan Quang (Vinh Phuc block, Hung Phuc ward, Vinh city) sent with the complaint, comparing with related legal documents, found that it was against the regulations, in this matter, part of the responsibility belongs to the Department of Industry and Trade...

Illegal contract

Although the Water Supply Service Contract of Nghe An Water Supply Company Limited is based on the Civil Law and related Decrees and Circulars, including Decree No. 117/2007/ND-CP dated July 11, 2007 of the Government regulating the production, supply and consumption of clean water. However, studying the Water Supply Service Contract and comparing it with legal documents, this contract is contrary to regulations.

Water supply service contract No. 012458/HD-DVCN between Nghe An Water Supply Company Limited and Mr. Tran Xuan Quang

Specifically, according to the Water Supply Service Contract No. 012458/HD-DVCN between Nghe An Water Supply Company Limited (Mr. Nguyen Quang Duyen - Deputy Director as representative) and Mr. Tran Xuan Quang, Party A is obliged to "Inspect and install water meters for Party B, ensuring technical quality requirements.Conduct periodic inspection and testing of meters and upon request of customers” (Point e, Clause 2, Article 6 on rights and obligations of Party A). Meanwhile, in Article 42, Clause 3, Decree No. 117/2007/ND-CP dated July 11, 2007 of the Government regulating the production, supply and consumption of clean water and Section V, Circular 01/2008/TT-BXD dated January 2, 2008 of the Ministry of Construction guiding the implementation of some contents of Decree No. 117/2007/ND-CP: “Water supply units are responsible for synchronous investment to the connection points with water users including water meters”.

In addition, also in the Water Supply Service Contract, the obligations of Party B are stated as “Protecting water supply works; protecting installed pipes, equipment, water meters… Notifying Party A of incidents when the water meter is lost or damaged. Organizing to fix incidents, promptly repairing leaks and damage” (Point d, Clause 2, Article 7 on rights and obligations of Party B).

Meanwhile, Article 49, Clause 4, Decree 117/2007/ND-CP clearly stipulates: “Water customers are responsible for protecting water meters installed in their management areas”; “Water supply units are responsible for protecting water meters installed outside the management areas of water customers”. And, to specify the responsibility for protecting water meters, Article 41, Decree 117/2007/ND-CP clearly states the water meter installation point as follows: “1. The water meter installation point can be determined before, coincide with or after the water customer's connection point to the water supply network, ensuring convenience for installation, management, inspection, recording and protection of water meters. 2. The water meter installation point is agreed upon between the water supply unit and the water customer”. With the above contents, it is clear that Nghe An Water Supply Company Limited has used the Water Supply Service Contract form contrary to the provisions of the law; evading the responsibilities of the water supplier as stipulated in the law, while causing disadvantages to consumers.

Mr. Tran Xuan Quang, citizen filed a complaint against Nghe An Water Supply Company Limited

Whose responsibility is it?

In order to specify the Law on Consumer Protection and Decree 99/2011/ND-CP dated November 27, 2011 of the Government detailing and guiding the implementation of a number of articles of the Law on Consumer Protection, on January 13, 2012, the Prime Minister issued Decision No. 02/2012/QD-TTg on the list of essential goods and services that must register contracts according to the form. Accordingly, domestic water supply service is one of the 9 types of goods and services that must be registered according to the form. And according to Article 9 of Decree 99, the Department of Industry and Trade is the state agency "responsible for receiving registration of contracts according to the form, general transaction conditions in cases where contracts according to the form and general transaction conditions apply within the scope of provinces and centrally run cities".

Because the Water Supply Service Contract form must strictly comply with the provisions of law, we asked Mr. Nguyen Quang Duyen - Deputy Director of Nghe An Water Supply Company Limited to clarify this issue. According to Mr. Duyen, his company has been approved by the Department of Industry and Trade for the Water Supply Service Contract form currently in use. We request that Nghe An Water Supply Company Limited provide a document approving the sample contract form from the Department of Industry and Trade. Initially, Mr. Duyen said that the Department of Industry and Trade agreed to the sample contract through a meeting between the two parties and did not issue a document. However, Mr. Duyen then asked "let me check again to see if there is a document approving it or not".

In fact, the Department of Industry and Trade has a document accepting the registration of a standard contract for Nghe An Water Supply One Member Co., Ltd. This document was issued on August 1, 2012, in Notice No. 127/SCT-QLTM. Accordingly, Notice 127 states: “After reviewing the File No. 215/PCHS received on July 26, 2012 from Nghe An Water Supply One Member Co., Ltd. regarding the registration of a standard contract. The Department of Industry and Trade hereby announces the acceptance of the standard contract of Nghe An Water Supply One Member Co., Ltd.”

Notice 127 of the Department of Industry and Trade accepting the sample contract of Nghe An Water Supply Company Limited

Why did the Department of Industry and Trade approve the Model Contract of Nghe An Water Supply Company Limited? The answer is partly “revealed” in Notice No. 127. That is, the Department of Industry and Trade “only” bases itself on the Law on Consumer Protection and Decree 99/2011/ND-CP; it does not rely on other legal documents closely related to the production, supply and consumption of clean water such as Decree 117/ND-CP of the Government, or Circular 01/2008/TT-BXD of the Ministry of Construction!.

According to regulations, the Department of Industry and Trade has the function and duty to protect consumer rights. However, this department has a document approving the Model Contract which goes against its function and duty and causes damage to consumers. So what is the reason? Is it due to lack of professional expertise, or is there another reason? This is an issue that relevant agencies need to clarify.

Nhat Lan