No electricity price increase until the end of the second quarter
To help businesses overcome difficulties due to Covid-19, electricity prices will not be increased from now until the end of the second quarter.
In the directive of the Ministry of Industry and Trade on solutions to prevent and combat the epidemic and remove difficulties for production and business in the face of Covid-19, Minister Tran Tuan Anh requested the Electricity Regulatory Authority and the Domestic Market Department to coordinate in calculating and not increase electricity prices in the first and second quarters. These are input items for production, so if the prices are increased, it will have a significant impact on businesses.
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| HCM City Electricity workers repair power lines. Photo: Internet |
According to Decision 24/2017 of the Prime Minister, the current electricity price has many different ranges and levels for each customer group. The average electricity price is adjusted when the input parameters of each stage (generation, transmission, distribution...) increase the price by 3% or more compared to the current price. In case the input parameters increase the average electricity price by more than 10% compared to the current price, the Ministry of Industry and Trade will work with the Ministry of Finance to inspect, review and report to the Prime Minister for consideration and comment on the price adjustment level. If necessary, the Ministry of Industry and Trade will report to the Price Management Steering Committee before reporting to the Prime Minister.
Most recently, the Ministry of Industry and Trade increased the average retail electricity price by 8.6% from March 20, 2019, to VND1,864.44 per kWh (excluding VAT) after the Government agreed in principle and has maintained it since then.
Previously, Prime Minister Nguyen Xuan Phuc's directive on measures to support businesses in the face of the Covid-19 pandemic also required not to increase electricity prices.
The Ministry of Industry and Trade also introduced a series of solutions to stimulate the domestic market and seek alternative sources of raw materials to promote production and business..Specifically, the Domestic Market Department must closely monitor the market and, together with businesses and localities, take measures to ensure adequate supply of essential goods for people at each level of the epidemic."The supply of essential goods must ensure the 4 on-site principles: on-site command, on-site forces, on-site distribution system and goods, and 3 readiness: proactively sourcing goods, timely response, and urgent resolution," the directive stated.
The General Department of Market Management strengthens management and strictly handles acts of speculation, hoarding, and price hikes of goods serving epidemic prevention and control, necessities, etc. for profiteering.
Regarding export promotion, the Ministry of Industry and Trade assigned the Department of Industry to coordinate with the Ministry of Agriculture and Rural Development and the Ministry of Construction to review input material needs, propose production plans and solutions to diversify domestic raw material sources.
The Import-Export Department and the Trade Promotion Department are promoting the search for new markets and implementing plans and solutions to export goods to the EU market after the Vietnam - EU Free Trade Agreement (EVFTA) is expected to take effect in early July, after being approved by the National Assembly at its session next May.
