The move is aimed to help relieve the financial pressures on businesses and households due to the Covid-19 pandemic.

Government approves three-month 10% electricity price cut

Earlier, the Ministry of Industry and Trade recommended a 10% reduction for power bills for households with consumption of less than 300kWh a month.

Households that use more than 300kWh a month would be charged the current rate as they were high-income earners less affected by Covid-19, the ministry said.

The ministry also recommended a 10% cut for businesses and factories. Hotels and restaurants will be offered a similar reduction. Meanwhile, quarantine facilities and medical facilities that are providing Covid-19 treatment will be totally exempted from power bills.

With the proposed plans, the Vietnam Electricity’s revenue this year would be reduced by VND11 trillion (USD466 million), at around VND6 trillion due to the power price cut from producers and firms, VND2.9 trillion households and the remainder from restaurants and hotels.

Earlier, businesses and households asked for a 50% cut of electricity prices for three months as their income was seriously affected by Covid-19.