Decision No. 124/2002/QĐ-TTg stipulates electricity selling prices applicable to production, business, and household consumption. The price does not include VAT, abolishes the additional electricity charge system, and allocates revenue from increased prices for investment in the power sector development.
Scope of application
The power sector, administrative and public service agencies, and units selling electricity to rural households and enterprises using electricity.
Key points
- The power sector → shall apply the electricity selling prices specified in the annex, excluding VAT.
- Chairmen of People's Committees of provinces and centrally governed cities → must direct enhanced management over units and organizations selling electricity to rural households to strictly implement the ceiling price mentioned above.
- Minister of Industry → shall coordinate with the Government Price Board to take measures to enforce the ceiling price for rural household electricity.
- Chairmen of People's Committees of provinces and centrally governed cities → must strengthen management work over units and organizations selling electricity to rural households.
- Abolish the additional electricity charge system nationwide.
🌐 Social impact of this document
- Positive impact: Reduce electricity costs for businesses and consumers, increase capital for power sector development.
- Negative impact: Businesses and rural residents may face difficulties adjusting their electricity usage habits.
❓ Frequently asked questions
Does the electricity selling price specified in the annex include VAT?
No, the electricity selling price does not include VAT (Article 1).
When was the additional electricity charge system abolished?
The additional electricity charge system was abolished nationwide as of October 1, 2002 (Article 4).
How is the revenue from increased electricity prices utilized?
Revenue from increased electricity prices is allocated for power sector development through recording revenue deposited into the state budget and recording expenditure for capital investment in Vietnam Electricity Corporation (Article 5).
Who is responsible for implementing this Decision?
Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairmen of provincial and centrally governed city People's Committees (Article 9).
What measures should the power sector undertake?
The power sector must enhance measures to improve labor productivity and service quality, reduce electricity losses, lower production costs to increase capital for development (Article 6).
Full text
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PRIME MINISTER ____________________ Number: 124/2002/QĐ-TTg |
SOCIALIST REPUBLIC OF VIET NAM
Independence – Freedom – Happiness
_____________________
Hanoi, September 20, 2002
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Pursuant to …;
On electricity sales prices
________
PRIME MINISTER
Pursuant to the Law on Organization of the Government dated December 25, 2001;
Pursuant to the proposal of the Chairman of the Government Price Control Board (memorandum No. 702/BVGCP-TLSX dated September 6, 2001, letter No. 255/BVGCP-TLSX dated April 16, 2002, letter No. 297/BVGCP-TLSX dated April 29, 2002, letter No. 622/BVGCP-TLSX dated August 2, 2002) and the opinions of relevant ministries and agencies,
DECISION:
Article 1.
1. To promulgate the electricity selling price for production, business, household consumption, administrative and public service units to be applied in direct electricity purchase and sale contracts with the power sector as attached to this Decision.
2. The electricity selling price stipulated in the annex does not include value-added tax.
Article 2. The Ministry of Industry shall coordinate with the Government Price Control Board to take measures to strictly enforce the ceiling price for rural residential electricity as prescribed in the Prime Minister's letter No. 1303/CP-KTKH dated November 3, 1998.
Article 3. Chairmen of People's Committees of provinces and centrally governed cities shall strengthen management over units and organizations selling electricity to rural households to ensure strict implementation of the aforementioned ceiling price.
Article 4. To abolish the additional electricity charge throughout the country.
Article 5. Revenue from increased electricity prices shall be allocated for investment in the power industry through recording revenue deposited into the state budget and recording expenditure for capital investment in Vietnam Electricity Corporation. The Ministry of Finance shall take the lead and coordinate with relevant agencies to provide guidance on implementation.
Article 6. The power sector must enhance measures to improve labor productivity and service quality, reduce electricity losses, and lower production costs to increase funds for development..
Article 7. Enterprises must adopt measures to use electricity efficiently, especially during peak hours, and strive to conserve energy to reduce electricity costs in their product costs. For important industries that have taken all possible measures to mitigate the impact of increased electricity prices but are still significantly affected, they should report to competent state authorities for submission to the Prime Minister for consideration and decision.
Article 8.
1. The Ministry of Industry shall coordinate with the Government Price Control Board and Vietnam Electricity Corporation to guide the implementation of this Decision.
2. This Decision shall take effect from October 1, 2002; previous Decisions issued earlier will be repealed.
Article 9. Ministers, heads of ministerial-level agencies, heads of government-affiliated agencies, Chairpersons of provincial and centrally-administered city People's Committees are responsible for implementing this Decision.
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