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Tuesday, June 18, 2024

MOIT proposes new electricity tariffs

By T. Huy

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HCMC – The Ministry of Industry and Trade (MOIT) has put forward a proposal for new electricity retail tariffs, suggesting a change from the current six-rate structure to five rates in the draft resolution of the Prime Minister, which is currently being circulated to seek public feedback.

The new proposal maintains the highest electricity tariff at VND3,457 per kWh, excluding value-added tax. However, the lowest rate will be applicable to households using below 100 kWh, instead of the current threshold of 50 kWh.

Under the proposed structure, the five different rates will range from 90% to 132% of the average retail tariff, which currently stands at VND1,920.37 per kWh as revised on May 4. This means that the lowest tariff in the first category will be around VND1,728 per kWh, while the highest tariff in the fifth category, applicable to the highest consumption group, will be VND3,457 per kWh.

According to the MOIT, reducing the number of rates from six to five will bring about a sustainable change in the structure of electricity tariffs, directly impacting electricity consumers. With the new rates, some consumer groups will benefit from reduced tariffs, while others may have to pay more for their electricity usage.

The proposal includes incentives for the first 30 kWh of electricity for low-income and social welfare households, based on the tariffs provided in the first category. Electricity tariffs for production, business, and non-business organizations will also be adjusted accordingly.

As part of the proposal, tourism and accommodation facilities will be classified as corporate clients and subject to the same electricity tariffs as production establishments. Manufacturing clients will adhere to tariffs categorized into four tiers, with the highest price at 167% and the lowest at 52% of the average electricity tariff.

The proposal also expands the scope of non-business organizations to include hospitals, kindergartens, nurseries, high schools, and public lighting systems.

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