EVN has announced a retail electricity price increase of 4.8%, from 2,103.11 VND to 2,204.07 VND per kWh, effective from May 10th. This adjustment follows a similar increase in October 2024 and is expected to result in households paying an additional 4,350 to 62,150 VND per month, depending on their usage.
Mr. Vo Quang Lam, Deputy General Director of EVN, stated that the increase considers input cost fluctuations, including fuel prices for power generation, and the impact on consumers’ electricity bills. The rise in electricity prices is also attributed to the projected 12.2% growth in electricity demand this year, with a corresponding increase of 33.6 billion kWh in the total electricity output compared to 2024.
According to EVN, the price adjustment will not significantly affect poor and policy-benefited households. These households will continue to receive support in accordance with the Prime Minister’s Decision No. 28/2014/QD-TTg dated April 7, 2014. Poor households will be supported with an amount equivalent to the electricity consumption of 30 kWh/household/month, while policy-benefited households with a monthly electricity consumption of no more than 50 kWh will receive support equivalent to 30 kWh/household/month.
Electricity price increases by 4.8% to over 2,200 VND/kWh from tomorrow. (Illustrative image)
Since the beginning of 2023, EVN has adjusted electricity prices four times within its authority, with increases of 3%, 4.5%, and two instances of 4.8%. The Ministry of Industry and Trade has also issued a decision on electricity selling prices, which will specify the structure of retail electricity prices for each customer segment following the adjustment.
EVN’s price adjustment is based on the Government’s Decree 72, which stipulates that electricity prices can be reviewed every three months when input costs increase by more than 2%. With this decree, EVN is authorized to adjust electricity prices when the average retail electricity price increases by less than 5%.
The following is the new residential electricity price schedule effective from May 10th:
| Old Price (VND/kWh) | Tier | Usage Range | New Price (VND/kWh) | Monthly Bill Increase (VND) |
| 1,893 | 1 | 10-50 kWh | 1,984 | 4,550 |
| 1,956 | 2 | 51-100 kWh | 2,050 | 9,250 |
| 2,271 | 3 | 101-200 kWh | 2,380 | 20,150 |
| 2,860 | 4 | 201-300 kWh | 2,998 | 33,950 |
| 3,197 | 5 | 301-400 kWh | 3,350 | 49,250 |
| 3,302 | 6 | 401 kWh and above | 3,460 | 65,050 |
The price increase comes as EVN continues to face accumulated losses from electricity production and trading. While the company balanced its finances and made profits from this segment last year, it incurred a total loss of over 70,000 billion VND in the previous two years.
In October 2024, the Ministry of Industry and Trade announced the results of its inspection of EVN’s production and business costs for 2023. The total cost of electricity production and trading for that year was 528,604.24 billion VND, an increase of 35,338.94 billion VND (7.16%) compared to 2022.
As a result, the cost of electricity production and trading in 2023 was 2,088.90 VND/kWh, a 2.79% increase compared to 2022. EVN’s electricity production and trading activities incurred a loss of 34,244.96 billion VND. However, with income from related activities amounting to 12,423.40 billion VND, the annual loss stood at 21,821.56 billion VND.
With the two price increases of 3% and 4.5% in 2023, the electricity sector’s revenue increased by more than 11,000 billion VND. However, according to EVN, this additional revenue was insufficient to cover the rising costs and losses in the industry.
In the latest adjustment, EVN stated that the 4.8% increase was insufficient to cover the industry’s costs and losses, but the decision was made to minimize the impact on the economy, CPI, and people’s lives.
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