No increase in electricity prices until the end of the second quarter.
In order to help businesses overcome difficulties caused by Covid-19, electricity prices will not be increased from now until the end of the second quarter.
In the Ministry of Industry and Trade's directive on solutions for preventing and controlling the epidemic and removing difficulties for production and business before Covid-19, Minister Tran Tuan Anh requested the Electricity Regulatory Authority and the Domestic Market Department to coordinate in calculating and not increasing electricity prices in the first and second quarters. These are input goods for production, so an increase would significantly impact businesses.
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| Electricity workers in Ho Chi Minh City repair power lines. (Image: Internet) |
According to Decision 24/2017 of the Prime Minister, electricity prices currently have different price ranges and levels for different customer groups. The average electricity price is adjusted when input parameters in various stages (generation, transmission, distribution, etc.) cause the price to increase by 3% or more compared to the current price. If input parameters cause the average electricity price to increase by more than 10% compared to the current price, the Ministry of Industry and Trade, together with the Ministry of Finance, will review and report to the Prime Minister for consideration and approval of 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 1,864.44 VND per kWh (excluding VAT) after receiving approval in principle from the Government, and this price has been maintained ever since.
Previously, Prime Minister Nguyen Xuan Phuc's directive on measures to support businesses before the Covid-19 pandemic also stipulated that electricity prices should not be increased.
The Ministry of Industry and Trade has also proposed a series of solutions to stimulate the domestic market and seek alternative sources of raw materials to boost production and business..Specifically, the Domestic Market Department must closely monitor the market and, together with businesses and localities, take measures to ensure sufficient supply of essential goods for the people at each level of the epidemic."The supply of essential goods must ensure the principle of 'four on-the-spot': on-the-spot leadership, on-the-spot forces, on-the-spot distribution system and goods, and 'three readiness': proactively securing sources of goods, responding promptly, and urgently addressing the situation," the directive stated.
The General Department of Market Management is strengthening management and strictly handling acts of speculation, hoarding, and price gouging of goods used for epidemic prevention and control, essential goods, etc., for profit.
Regarding export promotion, the Ministry of Industry and Trade has assigned the Industry Department to coordinate with the Ministries of Agriculture and Rural Development and Construction to review input material needs, propose production plans, and solutions for diversifying domestic raw material sources.
The Import-Export Department and the Trade Promotion Department are actively seeking new markets and implementing plans and solutions for exporting goods to the EU market after the Vietnam-EU Free Trade Agreement (EVFTA) is expected to come into effect in early July, following its approval by the National Assembly at its May session.
