Retail electricity prices have seen a surge, with a 4.8% increase from 2,103.1159 dongs/kWh to 2,204.0655 dongs/kWh, excluding VAT. This change translates to an increase of over 100 dongs/kWh starting tomorrow.
Since the beginning of 2023, EVN has raised electricity rates four times, with increments of 3%, 4.5%, and two rounds of 4.8%.
*Source: Hoà ng Giám*
The Ministry of Industry and Trade has issued Decision No. 1279/QD-BCT, dated May 9, 2025, regulating electricity tariffs and setting prices for various consumer groups and electricity retailers.
According to EVN, this price adjustment will not significantly impact poor and policy-benefited households. These vulnerable groups will continue to receive support as per the Prime Minister’s Decision No. 28/2014/QD-TTg dated April 7, 2014. Poor households will be subsidized for their monthly electricity consumption of up to 30 kWh/household, while policy-benefited households with a monthly consumption of less than 50 kWh will receive support equivalent to 30 kWh/household, in line with the government’s directives.
Breaking down the electricity sources for 2025, EVN stated that low-cost hydroelectricity accounts for only about 25% of the total system supply. The remaining 75% is derived from more expensive sources, such as coal-fired, gas-fired, oil-fired, and renewable energy sources.
The additional electricity demand for the system will primarily be met by more costly sources like oil-fired power plants, liquefied natural gas (LNG) turbine generators, and imported coal-fired power. Moreover, the foreign exchange rate (USD) has been unpredictable and on the rise, impacting the costs associated with electricity generation, which accounts for approximately 83% of the total production cost, as per EVN.
Regarding the average retail electricity price, on March 31, 2025, the government issued Decision No. 07/2025/QD-TTg, setting the framework for the average retail electricity price. The minimum price was set at 1,826.22 dongs/kWh, and the maximum at 2,444.09 dongs/kWh.
Should there be significant fluctuations in the parameters used for calculating the framework price, production and business costs, or if there are unaccounted-for costs in the average retail electricity price, the Ministry of Industry and Trade will be responsible for adjusting the framework and submitting it to the Prime Minister for consideration and decision.
The new Decree 72, issued in March, stipulates that the minimum time interval between adjustments to the average retail electricity price is three months from the previous change.
If the average retail electricity price needs to be increased by 2-5% compared to the current rate, EVN will prepare a price proposal and report it to the Ministry of Industry and Trade for review and feedback. EVN will then decide on the price increase after receiving the Ministry’s opinion.
For increases between 5-10%, EVN is permitted to adjust the price accordingly after reporting and obtaining approval from the Ministry of Industry and Trade.
When the increase exceeds 10%, EVN must submit a price proposal to the Ministry of Industry and Trade, which will then review it and seek opinions from relevant ministries and agencies. The Ministry will then consolidate the feedback and report to the government for consideration. If necessary, the Ministry will coordinate with relevant ministries and agencies to report to the Price Steering Committee before submitting to the government.
Hanh Nguyen
– 16:06, May 9, 2025
“Vietnam’s Power Company Explains the Recent 4.8% Electricity Price Hike, Taking it Above 2,200 VND per kWh”
“According to EVN’s Vice President, Vo Quang Lam, the 4.8% electricity price hike is a carefully considered decision, taking into account the fluctuating input costs, including coal and gas prices for power generation, and the impact on households and businesses.”
The Rising Cost of Electricity: A Necessary Evil?
The Vietnam Electricity Group (EVN) has announced an increase in the average retail electricity price to 2,204 VND/kWh (excluding value-added tax or VAT) starting tomorrow, May 10.
The Rising Cost of Electricity: Who Will Be Affected the Most?
“The recent surge in electricity prices has impacted households using 400 kWh and above, who now face a substantial increase of approximately VND 65,050 per household per month, as the average electricity retail price hikes by 4.8%.”
“Electricity Tariff Adjustments: Legally-backed and Operationally-driven”
Mr. Nguyen Xuan Nam, Deputy General Director of EVN, stated that the electricity price adjustment was based on both legal grounds and the practical demands of operating the national power system.
The Intriguing Knot Behind the “Urgent” Letter of Renewable Energy Companies
Nearly 30 investors, pouring billions of US dollars into solar and wind projects in Vietnam, sent an urgent letter a few weeks ago.
