DECISION No. 215/2004/QD-TTg OF DECEMBER 29, 2004 ON ELECTRICITY-SELLING PRICES

THE PRIME MINISTER

Pursuant to the December 25, 2001 Law on Organization of the Government;

Pursuant to April 26, 2002 Price Ordinance No. 40/2002/PL-UBTVQH10 and the Government’s Decree No. 170/2003/ND-CP of December 25, 2003 detailing the implementation of a number of articles of the Price Ordinance;

At the proposal of the Minister of Industry,

DECIDES:

Article 1.- To promulgate electricity-selling prices for production, business, daily-life consumption as well as administrative and non-business agencies, under contracts on direct electricity purchase and sale with electricity-retailing units as in the Appendix to this Decision.

The electricity-selling prices prescribed in the Appendix to this Decision are value added tax (VAT)-exclusive.

Article 2.- The Ministry of Industry shall coordinate with the Ministry of Finance in taking measures to direct the strict implementation of the ceiling prices of rural daily-life electricity under the provisions of the Prime Minister’s Official Dispatch No. 1303/CP-KTTH of November 3, 1998.

The presidents of the provincial/municipal People’s Committees shall direct the enhanced management over units and organizations that sell electricity to rural households, ensuring the strict implementation of the above-said ceiling prices.

Article 3.- Electricity-producing and -trading units must enhance measures to raise the labor productivity and service quality, reduce electric-power losses and to lower electricity production costs in order to increase capital for development investment. Enterprises must take measures to use electricity rationally, especially at peak hours, save electricity by all means in order to reduce electricity charges in production costs.

Article 4.- To assign the Ministry of Industry to assume the prime responsibility for, and coordinate with the Ministry of Finance in, studying and building a mechanism for automatically adjusting electricity-selling prices according to price fluctuations of input factors, then submit it to the Prime Minister for decision.

Article 5.- The Minister of Industry shall have to guide the implementation of this Decision.

This Decision takes effect as from January 1, 2005. The Prime Minister’s previous decisions which are contrary to this Decision cease to be effective.

Article 6.- The ministers, the heads of the ministerial-level agencies, the heads of the Government-attached agencies and the presidents of the provincial/municipal People’s Committees shall have to implement this Decision.