In accordance with the Government's direction on resolution for challenges for household and manufactures caused by the Covid-19 pandemic, on April 1, 2020, the Ministry of Industry and Trade reported to the Prime Minister (Report No. 22/BC-BCT) for proposals on electricity price and charge reductions from April to June 2020. These reductions is expected to be billed in May, June and July.
Reduction of electricity price:
- For manufacturing and business activities: a discount of 10% shall be applied on current unit price for peak hours, normal hours and off-peak hours as per Decision No. 648/QD-BCT dated 20 Mar 2019.
- For households: a discount of 10% shall be applied on unit price for daily-life of grades 1 - 4 (less than 300 kWh/month).
- For hospitality sector: a reduction from unit price for service sector to those for households.
Reduction of electricity charges:
- Reduction of 100% of electricity charges shall be applied for central quarantine and medical facilities for Covid-19 examination and treatment.
- Reduction of 20% of electricity charges shall be applied for medical facilities for Covid-19 examination and treatment.
- Reduction of 20% of electricity charges for hospitality facilities utilized as quarantine facilities for the suspected or infected.
The Ministry of Industry and Trade estimates that total reductions shall amount to 11,000 billion dongs, including 6,100 billion dongs for manufacturing and business, 2,900 billion dongs for households, and 1,800 billion dongs for hospitality sector. EVN will shall directly reduce electricity charges to facilities tackling the Covid-19 by 100 billion dongs.
Applicable period: 03 months (April, May and June)
Application timeline: to be determined periodically in line with electricity consumption recording period. Therefore, for households, reduction on electricity price in April, May and June 2020 shall be billed in May, June and July 2020
Implementation
On April 9, 2020, the Government issued Resolution No. 41/NQ-CP of Government's periodic meeting in March 2020 approving the above-mentioned proposals of MOIT on electricity price and charge reductions. The Government also assigned MOIT to coordinate with the Ministry of Finance to instruct related units on implementation in compliance with the regulations.
Upon receipt of Resolution No. 41/NQ-CP of the Government, on April 10, 2020, MOIT promptly drafted detailed guidelines and collected opinions from related ministries and authorities for completion in compliance with legal regulation prior to official issuance of instruction to EVN for implementation of electricity price and charge reductions according to the Resolution No. 41/NQ-CP.
The MOIT also requested Provincial Departments of Industry and Trade and EVN to direct their affiliated units on electricity price and charge reductions from April to June 2020 in compliance with Resolution No. 41/NQ-CP and according to recordings and electricity bills. MOIT also requests electricity companies to proactively and promptly handle all customers' queries and complaints about consumption data and electricity bills in accordance with regulation.
MOIT shall implement inspection and supervision on electricity companies for strictly compliance with the Government's instructions on electricity price and charges reductions to ensure proper application and to partially resolve difficulties caused by Covid-19 pandemic to production, business livings.
Ministry of Industry and Trade of Vietnam
