Environment

Proposal to hike forest environment service fees

The Ministry of Agriculture and Rural Development has proposed to the Prime Minister to raise forest environment service fees on companies producing drinking water and hydroelectricity.
The Ministry of Agriculture and Rural Development has proposed to thePrime Minister to raise forest environment service fees on companiesproducing drinking water and hydroelectricity.

The proposal waspart of a draft of the amendment and revision of the Government Decree99/2010/ND-CP issued on September 24, 2010, on policies relating topayment for forest environment services.

The ministry said thatthe current fee levels were not in line with reality and they could notenhance income or encourage people to involve in the protection offorests.

According to the draft, the service fee on forestenvironment will be increased from 20 VND per kWh to 36 VND per kWh forhydroelectricity production companies. The fee will be calculated basedon electricity output mentioned in the contracts between the seller andbuyer.

Clean water production companies will have to pay 52 VNDper cubic metre compared to the current fee of 40 VND per cubic metre.The fee will be calculated on water output stipulated in the contractsbetween water production and distribution companies and consumers.

TheAgriculture and Rural Development Ministry will review the fee levelsand propose the Prime Minister to make adjustments by the fourth quarterof each year, if the average retail price of electricity increases ordecreases more than 20 percent.-VNA
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