The government has approved the proposal of the Ministry of Industry and Trade to decrease the retail price of electricity by 10 per cent over the course of three months, in April, May, and June.
|The reduction in the retail price of electricity will be conducted by July |
The 10 per cent discount policy was approved for the retail price of electricity for households from rate 1 to rate 4, as well as businesses and manufacturing companies.
The price for service businesses, including hospitality and accommodation, will be adjusted to the rate of manufacturing industries.
Besides, COVID-19 isolation and treatment facilities will also be free from electricity bills. Hotels which are used as isolation places, receive a 20 per cent reduction compared to the current retail price.
The total cost of adjusting the retail price of electricity will be over VND10 trillion ($434.78 million), VND2.9 trillion ($126.1 million) for households, over VND6 trillion ($260.87 million) for businesses and manufacturing companies, VND1.8 trillion ($78.26 million) for hospitality and accommodation, and VND100 billion ($4.35 million) for facilities used to treat and isolate people with COVID-19.
Previously, after reviewing the MoIT's proposals, the Ministry of Finance (MoF) assessed they would have an impact on the revenue of Electricity of Vietnam (EVN) and the state budget. Thus, the MoF requested EVN to build plans to balance its budget and prepare for the impact of the reduction of electricity prices in 2021, as well as the effects on the inputs of electricity generation, namely coal and gas, among others.
In addition, the MoF proposed EVN to recalculate spending on electricity in 2020, the price of coal, oil, gas, as well as the electricity capacity for this year.