Decision No. 268/QD-TTg dated February 23,2011 of the Prime Minister providing the electricity retail price tariff

THE PRIME MINISTER

Decision No. 268/QD-TTg of  February 23,2011, providing the electricity retail price tariff

Pursuant to the December 25, 2001 Law on Organization of the Government;

Pursuant to the December 3, 2004 Electricity Law; and the Government's Decree No. 105/ 2005/ND-CP of August 17, 2005, detailing and guiding a number of articles of the Electricity Law;

At the proposal of the Minister of Industry and Trade,

DECIDES:

Article 1. To approve the electricity retail price tariff applicable from 2011 with the following contents

1. Principles of adoption of the tariff:

a/ Electricity sale prices are detailed for each group of electricity users, including production, business, administrative and non-business and daily-life activities, and are based on voltage levels (110 kV, between 22 kV and under 110 kV, between 6 kV and under 22 kV, and under 6 kV);

b/ Electricity prices based on consumption time during the day apply to major electricity users for production and business purposes at different voltage levels;

c/ Progressive electricity prices applicable to daily-life electricity users are set in 7 scales. The price for the first scale (0-50 kWh) equals the average electricity production cost. The price for the second scale (0-100 kWh) equals the approved average electricity sale price. The prices for subsequent scales increase progressively;

d/ The first scale in the daily-life electricity price tariff only applies to low-income households (being those frequently consuming no more than 50 kWh/month). Low-income households wishing to buy electricity-at the price for the first scale shall make registration under the guidance of electricity sellers. If a registered household consumes a total of more than 150 kWh in 3 consecutive months, the electricity seller shall automatically shift to the prices for the second and subsequent scales.

The prices for the second and "subsequent scales apply to other households using daily-life electricity;

e/ Poor households determined according to the Prime Minister-promulgated criteria may receive a price subsidy for 50kWR/month at VND 30,000/household/month. Funds for this price subsidy come from electricity sales;

f/ The daily-life electricity price bracket applicable to rural, mountainous and Island areas which have not been connected to the national electricity grid covers the ceiling and floor prices. The floor price equals 1.5 times the annual average electricity sale price. The ceiling price equals 2.5 times the annual average electricity sale price.

2. Structure of the electricity retail price tariff:

The percentages of voltage- and consumption time-based electricity retail prices of the approved average electricity sale price are detailed in the Appendix to this Decision.

3. Electricity sale prices for different group's of buyers shall be determined based on the average electricity sale price and the structure of the electricity sale price tariff mentioned in Clause 2-of this Article.

Article 2. Organization of implementation

1. To assign the Ministry of Industry and Trade to notify detailed electricity retail prices to electricity buyers and guide their application.
When the electricity consumption structure changes based on the approved average electricity sale price, retail prices for electricity buyers may be adjusted within ±1% of the percentages provided in the Appendix to this Decision.

2. To assign the Ministry of Finance to:

a/ Assume the prime responsibility for, and coordinate with the Ministry of Industry and Trade in, promulgating mechanisms for deduction, transfer and accounting of funds for electricity price subsidy for poor households to the national electricity price;

b/ Promulgate mechanisms for receipt, management, payment and supervision of price subsidy for households on annual lists of poor households;

c/ Assume the prime responsibility for, and coordinate with the Ministry of Industry and Trade in. inspecting and supervising price subsidy for poor households, ensuring its promptness, proper beneficiaries and compliance with regulations.

3. The Ministry of Labor, War Invalids and Social Affairs shall receive funds for electricity price subsidy for poor households from electricity sellers and based on lists of poor households, allocate them to localities for implementation.

4. Provincial-level People's Committees shall receive funds for price subsidy for poor households and allocate them to poor households under this Decision.

Article 3. Effect

1. This Decision takes effect on the date of its signing.

2. Ministers, heads of ministerial-level agencies, heads of government-attached agencies, chairpersons of provincial-level People's Committees and concerned units shall implement this Decision.-

Appendix

STRUCTURE OF ELECTRICITY SALE PRICE TARIFF APPLICABLE FROM 2011

(To the Prime Minister's Decision No. 268/QD-TTg of February 23, 2011)

Note: * applicable to low-income households having registered with electricity sellers.-