     Inter Ministry          Socialist Republic of Vietnam
   Ministry of Energy        Independence-freedom-Happiness
Government Price Committee         htmlhtmlhtml--
       No. 12TT/LB
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                                Hanoi, 29th April, 1994

CIRCULAR
GUIDANCE ON ADDITIONAL LEVIES IN ELECTRIC PRICE
FOR REACTING THE SOURCE Of INVESTMENT CAPITAL
IN DEVELOPING THE ELECTRIC NETWORK Of THE
SOUTHERN PROVINCES

To execute the direction views of the Prime Minister in the Document No 1761/KTTH on 7th April, 1994 of the Government Secretariat, the Interministry : Ministry of Energy - Government Price Committee guide the additional levies in electric price for cre ating the source of investment capital in developing the electric network of the southern provinces as follows:

I. PURPOSE Of THE ADDITIONAL LEVIES IN ELECTRICITY PRICE.

According to the investment devolution in effect at present, the Central Government only invests in constructing the electric networks of voltage level higher than 35KV-20KV. To bring into play the investment efficiency and fulfill the target to provide t he countryside with electric power, it is necessary to improve and develop synchronously the electric network of voltage less than 35KV-20KV. But the central Government does not supply the investment capital for improving the electric networks of low pot ential and providing the countryside with electric power and many locals have not found the source of investment capital. Several Southern provinces have proposed for the Government to allow the application of additional levy in electric price in order t o have the capital source to develop rapidly the electric network. The Government welcomes the contribution of electric users in order to invest and develop the local electric networks and agrees to allow the application of additional levy in electric pri ce in order to supplement the investment capital sources for investment, improvement and extension of low voltage electric networks and providing the countryside with electric power.

II. APPLICATION CONDITION fOR ADDITIONAL LEVY

Application of additional levies in the electric price for cities, towns, townlets shall be implemented only when that policy is agreed and approved by the People's Committee of province which has a plan to explain and agitate the masses, and is consentie ntly supported by people.

III. OBJECT AND LEVEL Of ADDITIONAL LEVY

Subject to proper economic situation in each local and on basic of the investment capital demand in developing the electric network of province as per the annual plan, the People's Committee of province shall decide the concrete level additional levy in e lectric price for each object but it shall not exceed the maximum levels thereunder:

1. Electric power for tobacco, alcohol, beer production : 150 VND/KWH
2. Electric power for steel refining and laminating : 40 VND/KWH
3. Electric power for other manufacturing industries and communication - transportation : 60 VND/KWH
4. Power for lighting of non-productive organizations : 50 VND/KWH
5. Power for trade, service and lighting of private companies, foreigners in Joint-venture with domestic organizations and individuals : 250 VND/KWH.
6. Power for offices' and workers' and peoples' life : 20 VND/KWA.
7. for construction of new transformer, one time additional levy is 50,000 VND/KWA.

IV. OBJECT EXEMPTED fROM ADDITIONAL LEVY

The following objects are exempted from the additional levy in electric price:

1. Power for the production of running water of city, oxygen for medical service, pharmaceutical products, food-stuffs milling. milk processing.

2. Power for public lighting

3. Power for living lighting counted according to the wholesale price in suburb of city/town.

4. Power for irrigation and agriculture

5. Power for the headquarters of hospital, school, military office, police office.

6. Power for ambassadorial and diplomatic offices.

7. Power for production that is calculated 100% in foreign currency.

8. Several producers having many difficulties which are considered and exempted from the additional levy by the People's Committee of province for each concrete case.

V. ORGANIZING THE IMPLEMENTATION

1. The People's Committee of provinces and cities shall be responsible:

- to investigate and present the question of additional levies in the local electric price to the People's Council of province.

- to charge and guide the functional organisms to propagandize and move the local people to support and take part in the implementation of the additional levies in electric price

- to consider and decide the level of additional levy for each object according to the proposal of the financial - Price of Goods Service. The Decision on additional levies shall be presented to the Government Price Committee and the Ministry of Energy fo r supervision and inspection.

- to approve the electric network investment projects implemented by the capital source from the additional levies of electric price.

- to inspect, supervise the using of the capital source from the additional levies of electric price to ensure the right implementation of the capital management system in capital construction of the State and against the corrupted and wasted action.

2. The financial-Price of Goods Service of province and Price of Goods Department of city shall be responsible:

- to study and present the level of additional levy for each object to the People's Committee of province.

- to manage, distribute the capital source from the additional levies and supervise the using in accordance with the capital management system in capital construction of the State.

- to pay and balance the completed projects in the right regulation system.

3. The Electric Power Service of province, city shall be responsible to organize the right and sufficient collection of the additional levied items according to the Decision of People's Committee of province, city.

The additional levies amount of each period based on the additional levies of electric price invoices shall be directly transferred to a separate account controlled by the financial-Price of Goods Service of province.

4. The Electric Power Service of province, city is permitted to extract a suitably enough proportion from the capital source of additional levies in order to spend in the additional levies collecting process on the basic of the estimate agreed by the fina ncial-Price of Goods Service of province.

5. Money amount from the additional levies shall be only used:

+ for adding, in priority, to the investment capital to improve and extend the Low voltage electric network and provide the countryside with power.
+ for improving and developing the electric networks in the pivotal areas as required by the People's Committee of province, city.

The above mentioned investment projects shall be constructed only when they have the following conditions:

- it belongs to the areas that have been planned in term of electric power.
- having the Eco-technical feasibility Study approved.
- the engineering design shall meet the technical standards approved by the authorized level.
- having the investment plan approved by the People's Committee of province, city.

6. Periodically, every quarter, 6 month and year, the financial-Price of Goods Service shall report the in and out results of the additional levied money to the People's Council and People's Committee of Province, Ministry of Energy and Government Price Committee.

Ministry of finance, Ministry of Energy, Government Price Committee shall organize the collection and using of this additional levied source periodically every year or in necessary case.

7. The completed investment projects shall be technically checked and accepted by the Electric Power Company No II and balanced by the financial-Price of Goods Service according to the request of People's Committee of province.

This Circular comes into force from the date of May 1st, 1994. In case of the electric price adjusted by the State, the locals shall properly act upon the electric price as specified by the State. The additional levies newly adjusted shall be decided by t he People's Committee of province.

In the process of implementation, if there is any difficulty or impediment, the People's Committee of provinces/cities, Electric Power Services and related Units are requested to report to the Interministry for the solving guidance.

for the Ministry of Energy for the Government Price Committee Minister Head of the Government Price Committee