MoIT proposes 10% cut to power bills

April 02, 2020 - 06:34



The highest reduction of power bills in three months could reach 10 per cent to support customers and businesses affected by COVID-19. — Photo

HÀ NỘI — The Ministry of Industry and Trade (MoIT) has proposed cutting power bills for businesses and households over the next three months to help them cope with the COVID-19 pandemic.

The plan, which has been submitted to the PM, would involve reducing power bills for households with consumption of less than 300kWh a month by 10 per cent. The total estimated reduction would be around VNĐ2.9 trillion (US$123.1 million).

Households which use more than 300kWh a month would be charged the current rate as they were high-income earners less affected by COVID-19, according to the MoIT.

The ministry also proposed a 10 per cent cut for producers and firms, which would cost an estimated VNĐ6 trillion.

Hotels and restaurants could enjoy the similar reductions at a cost of VNĐ1.8 trillion.

In addition, MoIT said free power should be provided for medical facilities and quarantine areas for COVID-19.

With the proposed plans, the Vietnam Electricity (EVN)’s revenue this year would be reduced by VNĐ11 trillion.

All the cuts and exemptions would start from April.

The MoIT would require EVN to recalculate electricity costs in 2020, especially those in the last 10 months with updated input such as coal prices, oil and gas, foreign exchange rates, and power capacity at hydropower and thermopower plants and renewable energy plants. —VNS