On October 10, Vietnam Electricity (EVN) announced that the Ministry of Industry and Trade has approved a pilot scheme to implement a two-tier retail electricity pricing model (comprising capacity charges and energy charges) on paper starting from October 2025.
The pilot will target manufacturing customers directly supplied by EVN and its subsidiaries, with an average monthly electricity consumption of 200,000 kWh or more (based on the last 12 months’ data).
This paper-based trial, using actual data, aims to pave the way for the full implementation of the two-tier pricing model as mandated by Article 50 of the revised Electricity Law (2024).
The new model will gradually replace the current single-tier pricing structure, ensuring compatibility with the electricity sector’s technical infrastructure, legal frameworks, and consumer adaptability.
Details of the Two-Tier Pricing Pilot
For the selected manufacturing customers participating in the paper-based pilot, the following trial pricing model will be applied:
Two-Tier Electricity Pricing Trial Model
From October 2025, Power Corporations and Electricity Companies will issue paper-based trial electricity bill calculations using the two-tier pricing model to eligible customers. These statements will compare charges under the current single-tier model and the new two-tier model.
EVN emphasizes that this is a paper-based trial only and will not affect actual electricity bills during the pilot phase.
The two-tier pricing model consists of charges for maximum capacity usage and energy consumption.
Customers’ electricity bills will include two components: a fixed charge for capacity usage, reflecting the fixed costs of electricity supply, and a variable charge for actual energy consumption.
According to EVN, this structure encourages customers to optimize their electricity usage patterns. By reducing peak capacity usage (Pmax) while maintaining the same energy consumption, customers can lower their bills. This also helps the electricity sector reduce system peak load, leading to more efficient grid operation, cost savings, and better resource utilization.
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Is Two-Tier Electricity Pricing Cost-Effective?
Implementing a two-part electricity pricing structure ensures accurate and comprehensive cost calculations, effectively eliminating cross-subsidies. However, it does not guarantee lower overall expenses.
