|
Hanoi requests delay of morning electricity pricing scheme
The Hanoi People’s Committee on May 14 sent a document to the Ministry of Industry and Trade, asking for a delay of the implementation of the morning peak hour electricity pricing scheme because the scheme still shows problems.
Under the electricity pricing scheme, from 9.30 am to 11.30 am from Monday to Saturday is considered the peak hours. Meanwhile, Hanoi authorities say that the scheme will make production costs higher, thus reducing the competitiveness of locally-made products.
From 9.30 am to 11.30 am are normal working hours of all society in general and industrial enterprises in particular. Therefore, enterprises cannot rearrange their production schedule to enjoy the lower power prices set for non-rush hours.
In the last two months, a lot of businesses in Hanoi have complained to the Hanoi Department of Industry and Trade and Hanoi People’s Committee about the morning peak hour electricity pricing scheme. The businesses have proposed delaying the scheme until the national economy is better off.
Therefore, Hanoi authorities have sent a petition to the Ministry of Industry and Trade, requesting the ministry to report to the prime minister about the pricing scheme, and ask for permission to adjust the scheme.
The authorities have also identified other problems in the new price scheme.
Decision No 21 issued by the prime minister stipulates that electricity trade organisations in rural areas which do not have necessary conditions to retail electricity in accordance with the progressive price frame, can apply the ceiling price of VND700/kwh. Meanwhile, Circular No 05 of the Ministry of Industry and Trade said that the wholesale prices applied to electricity trade organisations in rural areas follow the progressive price frame.
Therefore, right from March 2009, the Hanoi Power Company has been selling electricity under the progressive price frame to electricity trade organisations in rural areas. As a result, the organisations have had difficulties maintaining the retail price of VND700/kwh.
In related news, the Prime Minister’s Office has released a document, outlining the responsibility of the Ministry of Industry and Trade in applying the peak hour electricity pricing scheme.
The ministry has been required to take initiative in explaining to people and businesses about the government’s electricity pricing policy.
The prime minister asked the ministry to report on problems arising from the scheme’s implementation in June 2009.
In early April 2009, after businesses made complaints about the new electricity pricing scheme, the ministry held a press conference, explaining about the scheme, while committing to make a survey to review the impacts of the scheme on production enterprises.
However, the Electricity Regulartory Authority under the ministry, the main unit in charge of examining and assessing the impacts of the new scheme, has just toured three cities and provinces, namely Hanoi, Tien Giang and Long An.
In its report, the authority says that the impact of the new pricing scheme on production is not as big as local newspapers have reported. Enterprises which have one-shift production have to pay 2.26-22.6% more than previous levels, while the decrease in the total turnover of enterprises proves to be small, just 0.04-0.76%.
Pham Huyen
vietnamnet
|
