New Electricity Pricing Structure Announced in Vietnam
Residential electricity prices with five tiers, excluding VAT
On May 29, the Prime Minister issued Decision 14, outlining a new electricity pricing structure. The decision details electricity prices for different consumer groups, including production, business, administrative, and residential users.
Electricity prices are specified for various voltage levels: high voltage above 35 kV, medium voltage from 1 kV to 35 kV, and low voltage up to 1 kV for production, business, and administrative users.
Time-of-use pricing will be applied to production and business consumers at certain voltage levels who meet the eligibility criteria.
Notably, residential electricity prices will consist of five progressive tiers to encourage efficient and economical electricity usage. This is a reduction from the current six tiers. The first tier, intended for households consuming less than 100 kWh, offers a lower rate compared to the current threshold of 50 kWh. The highest tier starts from 701 kWh and above.
Prices for tiers 1 to 5 are calculated as 90%-180% of the current average electricity selling price of 2,204.0655 dong/kWh (excluding VAT), effective from May 10, 2025. Consequently, the lowest price (tier 1) is approximately 1,984 dong/kWh, and the highest price (tier 5) is 3,967 dong/kWh, excluding VAT.
Decision 14 of 2025 comes into force on May 29, 2025, replacing Decision 28 of 2014. It will be applied from the date of the nearest adjustment to the average electricity selling price after this Decision takes effect.
Currently, the existing price structure with six tiers is still in effect, and electricity prices were recently increased on May 10. As per the standard procedure, EVN and the Ministry of Industry and Trade will adjust retail electricity prices once every three months after the most recent adjustment. Therefore, the new pricing structure may officially take effect in August 2025.
According to the Decision, poor households meeting the criteria defined by relevant laws in each period will receive electricity bill support for residential use. The monthly support amount is equivalent to the electricity cost of 30 kWh, calculated based on the current first-tier residential electricity price.
Social policy beneficiaries, as defined by the Prime Minister (excluding poor households receiving electricity support), will also receive support if their monthly electricity consumption for residential use does not exceed 50 kWh. The support amount is equivalent to the electricity cost of 30 kWh, calculated at the first-tier residential electricity price.
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