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| "If the proposal is approved, eligible businesses will enjoy the discount for six months as the trade ministry calculates electricity prices for next year, which are expected to go into effect from March, 2010." |
If the proposal is approved by Prime Minister Nguyen Tan Dung, the deduction will take effect on September 1 and be applied only to companies operating in the daytime and purchasing power at medium voltage levels of 35 kilovolts or less, according to the Ministry of Industry and Trade.
Commercial power users are currently charged double normal rates between 9:30 a.m. and 11:30 a.m. and between 5 p.m. and 8 p.m.
Before March 1, only use between 6 p.m. and 10 p.m. was subject to peak rates.
Many businesses have since protested the extension of peak hours, arguing that it is unfair to be charged extra in the morning as the time slot is a key production period.
A recent ministry survey found 56,000 businesses operating only during the day were the most affected by the new pricing policy. Around 15-17 percent of them had to pay more than 20 percent extra for power, newswire VietNamNet reported Sunday.
Meanwhile, companies that work night shifts had to pay around 10 percent more for electricity, according to the survey.
Extra costs created by the new pricing policy accounted for less than 1 percent of businessesâ total operation costs, the newswire said, citing Deputy Minister Do Huu Hao.
Under the proposal, the electricity sectory's revenue will decrease by VND300 billion (US$17.5 million) this year, the newswire added.
If the proposal is approved, eligible businesses will enjoy the discount for six months as the trade ministry calculates electricity prices for next year, which are expected to go into effect from March, 2010, Vietnam Investment Review reported Monday, citing Hao.
The new rates would be higher, Hao said.