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 proposal was part of a draft of the amendment and revision of the Government Decree 99/2010/ND-CP issued on September 24, 2010, on policies relating to payment for forest environment services.

The ministry said that the current fee levels were not in line with reality and they could not enhance income or encourage people to involve in the protection of forests.

According to the draft, the service fee on forest environment will be increased from VND20 per kWh to VND36 per kWh for hydroelectricity production companies. The fee will be calculated based on electricity output mentioned in the contracts between the seller and buyer.

Clean water production companies will have to pay VND52 per cubic metre compared to the current fee of VND40 per cubic metre. The fee will be calculated on water output stipulated in the contracts between water production and distribution companies and consumers.

The Agriculture and Rural Development Ministry will review the fee levels and propose the Prime Minister to make adjustments by the fourth quarter of each year, if the average retail price of electricity increases or decreases more than 20 per cent. 

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