Providing electricity subsidies for poor households and households eligible for social welfare policies.

The following types of households are eligible for electricity subsidies for household use:

a) Poor households with income according to criteria approved by competent authorities as stipulated in Decision No. 59/2015/QD-TTg on the promulgation of the multidimensional poverty standard applicable for the period 2016-2020 and any amending, supplementing or replacing documents, if any;

b) Households with members receiving monthly social welfare benefits who are not classified as poor households according to the law and whose monthly electricity consumption for domestic purposes does not exceed 50kWh in areas with a power grid (referred to as social policy households living in areas with a power grid);

c) Households with members receiving monthly social welfare benefits who are not classified as poor households according to the law and live in areas without electricity grids (social policy households living in areas without electricity grids);

d) Households of ethnic minorities who are not classified as poor according to the law and live in areas without electricity grids (social policy households living in areas without electricity grids).

Regarding the level of support, the draft clearly states: Each poor household and social policy beneficiary household is only entitled to one electricity subsidy. The monthly electricity subsidy for domestic use is equivalent to the actual amount of electricity used, up to a maximum of 30 kWh/household/month, calculated at the current retail price of residential electricity tier 1. For poor households and social policy beneficiary households living in areas without access to the power grid, the maximum subsidy is no more than 30 kWh/household/month, calculated at the current retail price of residential electricity tier 1.

When the competent authority decides to adjust the retail price of electricity for the first tier of residential consumption (increase or decrease compared to the current price), the People's Committees of provinces and centrally-administered cities shall promptly adjust the monthly electricity subsidy equivalent to the actual amount of electricity used, up to a maximum of 30 kWh/household/month, calculated according to the adjusted retail price of electricity for the first tier of residential consumption.

Method of electricity subsidy for poor households and social policy beneficiaries: Monthly payments are made through the Electricity Company or electricity retailer (hereinafter referred to as the electricity agency) for poor households and social policy beneficiaries living in areas with electricity grids;

Quarterly, direct payments in the form of cash assistance are made to poor households and households eligible for social welfare policies living in areas without access to the power grid.

The policy of providing electricity subsidies to poor households and households eligible for social welfare benefits has been in effect since January 1, 2019.