EVN directed to cut electricity prices from next month

EVN directed to cut electricity prices from next month

The reduction is aimed to comply with legal regulations concerning the mechanisms and timelines for adjusting average retail electricity prices, with the goal of supporting citizens and businesses and ensuring social welfare.

The Ministry of Industry and Trade will evaluate the average retail electricity price proposal, ensuring that the price reduction can be carried out by November 1. — VNA/VNS Photo

Deputy Prime Minister Nguyễn Văn Thắng on Tuesday directed Vietnam Electricity (EVN) to urgently develop a plan to reduce the average retail electricity price from the beginning of next month.

Chairing a meeting on managing petrol and electricity prices, Thắng instructed EVN to promptly review and calculate costs and maximise cost-saving measures, to cut the average retail electricity price starting from November 1 through March 31, 2027.

The reduction is aimed to comply with legal regulations concerning the mechanisms and timelines for adjusting average retail electricity prices, as well as other relevant provisions, with the goal of supporting citizens and businesses and ensuring social welfare.

The Ministry of Industry and Trade will evaluate the average retail electricity price proposal, ensuring that the price reduction can be carried out by November 1, and must promptly escalate any matters exceeding its authority to the appropriate higher-level authorities.

At the meeting, the deputy PM also requested a review of the legal framework to consider lowering the special consumption tax on petrol to zero per cent.

He tasked the Ministry of Finance, in coordination with the Ministry of Industry and Trade, the Ministry of Justice and other relevant agencies, with urgently reviewing the legal basis and jurisdictional authority. This process will also involve a comprehensive assessment of the impacts and feasibility of reducing the special consumption tax rate on various types of petrol to zero per cent.

This measure is being considered for implementation from November 1 through March 31, 2027. The Ministry of Finance must complete its review and submit a report to the relevant authorities for consideration and decision-making in accordance with the law by November 1.

These requirements have been set forth as the Government evaluates various scenarios for managing petrol and electricity prices, with the aim of supporting both the public and businesses through measures concerning electricity pricing and tax policies on gasoline. 

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