Minister of Industry and Trade: Draft amendment to retail electricity price list has been submitted
The Ministry of Industry and Trade has submitted a draft amendment to Decision 28/2014/QD-TTg regulating the structure of retail electricity prices. The proposed structure of electricity prices has been reduced from 6 levels to 5 levels, in which level 1 is increased from 0-50kWh to 0-100 kWh.
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| The Minister of Industry and Trade said he had submitted draft Decision 28/2014/QD-TTg on the structure of retail electricity prices. |
Continuing the question and answer session this morning, August 21, Minister of Industry and Trade Nguyen Hong Dien explained the issue of electricity prices.
Delegate Pham Van Hoa (Dong Thap) questioned: "The electricity supply situation for production and consumption is stable, unlike the power shortage in 2023. This is the effort of the Ministry of Industry and Trade and Vietnam Electricity Group (EVN)".
However, Mr. Hoa said that the calculation of electricity prices by tier is not suitable for reality. For example, the current tier 1 standard in the price structure (for household electricity) is too low, 50 kWh.
In addition, according to Mr. Hoa, people pay for electricity, but also have to pay VAT, is that unreasonable? Mr. Hoa raised the question, is it possible to exempt people from VAT when paying for electricity? Does the Ministry of Industry and Trade have any solutions to amend the electricity price list to suit people's actual consumption, such as increasing level 1 from 50 kWh to 100 kWh?
Clarifying the question of delegate Pham Van Hoa, Minister Nguyen Hong Dien said: “The step-by-step electricity price list is a popular model in many countries, helping customers use electricity efficiently and economically. It enhances social responsibility in environmental protection. According to Decision 28/2014/QD-TTg, the retail electricity price list consists of 6 levels. The Government has directed and the Ministry is in charge of amending and supplementing this decision.”
“This morning, the Ministry of Industry and Trade submitted a draft amendment to Decision 28/2014/QD-TTg,” Mr. Dien informed .
According to the draft, the number of steps will be reduced from 6 to 5. Step 1 is 0-100 kWh, instead of 0-50 kWh as before. This will support the poor, while maintaining the support level for the poor and people in difficult circumstances from the State budget.
“On the other hand, in this revised Decree 28, the Ministry is considering adjusting the price framework for production, business and living to be closer. Some production sectors will be adjusted in line with the price list in the service and living sectors to ensure no cross-subsidy,” said Mr. Dien.
Regarding the issue of VAT in electricity bills, Mr. Dien said this is according to tax regulations applied to all types of goods, "whether it can be eliminated or not, the Minister of Finance will answer more clearly".
Regarding the question about the electricity price management causing losses in the electricity industry, Minister Dien said that electricity is one of the commodities that must ensure price stability according to the State's direction, with a difference between input and output prices.
“How will the operating mechanism be adjusted so that Vietnam Electricity Group (EVN) does not suffer losses in the future, and at the same time eliminate cross-subsidy in electricity prices…”, these are the contents included in the Electricity Law (amended), Minister Dien said.
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