At the government’s regular meeting on April 1, the Ministry of Industry and Trade (MoIT) proposed the prime minister to adjust the selling price of electricity to support households, manufacturers and hospitality facilities in the general difficulties caused by COVID-19 pandemic.
|The MoIT proposed dropping electricity prices to ease troubles during the COVID-19 epidemic |
In its proposal, the Ministry of Industry and Trade (MoIT) would cut the retail price of electricity for households from rate 1 to rate 4 by 10 per cent for three months. The cost of adjusting the retail price for these objects is VND2.9 trillion ($126 million). However, prices for households of rate 5 onwards will not change as the ministry believes these are high-income customers who can take the impacts of the pandemic.
In addition, the MoIT proposed a 10 per cent reduction for business and manufacturing companies from April to June, which will cost VND6 trillion ($260.87 million). The price for service businesses, including hospitality and accommodation, is expected to be adjusted to the rate of manufacturing industries at the cost of VND1.8 trillion ($78.26 million).
The proposal follows requests from residents, enterprises, and associations for government support by decreasing by the retail price of electricity and bank debts by 50 per cent for three months.
Furthermore, the MoIT proposed exempting isolation and treatment facilities related to COVID-19 from electricity bills. Hotels, which are used as isolation places, would receive a 20 per cent reduction compared to the current retail price.
Vietnam currently has 28 million households and business and manufacturing facilities using electricity, thus the total cost of adjusting the retail price of electricity would be about VND10 trillion ($434.78 million) if the MoIT’s proposal goes through.