Is the electrical industry holding back individuals and businesses?

Many citizens have been surprised by the increase in their electricity bills for the month of February. Some have even questioned whether there might be an error in the progressive electricity tariff calculation, given that the billing cycle extended beyond one month. Economic experts argue that the electricity sector cannot rely solely on its reserve funds to shift all the disadvantages onto businesses and individuals.

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Surprised with the electricity bill

From October 2023 to January 2024, Mr. Pham Van Hung’s (60 years old, Hoan Kiem district, Hanoi) electricity bill ranged from 900,000 VND to over 1 million VND per month. In February, this number increased to over 2 million VND.

Mr. Hung said: “During the Lunar New Year, my family went on a vacation for almost a week, so our electricity usage was lower than usual. However, I don’t understand why the electricity bill doubled.” Additionally, Mr. Hung did not receive a payment notice on the 16th of each month as usual, but at the end of the month.

On social media platforms, many people share their surprise at receiving significantly higher electricity bills in February compared to previous months.

Some people have discovered that Hanoi Power Corporation (EVNHANOI) changed the meter reading date to the end of the month (including dates from both January and February), but they still question how the tiered pricing system, specifically the 6th tier, is currently applied.

In an interview with PV, economist Vu Vinh Phu stated that although people did not object to changing the meter reading date, the accumulated increase in electricity consumption across higher tiers due to the extended meter reading period should be calculated separately for each month to avoid unjustified losses for households. He suggested that to calculate a fair electricity price, the usage of two months should be separated and then added together, which would be more acceptable to consumers.

Specifically, if EVNHANOI continues to use their current method, very few households that consume less than 200kW per month will benefit. Most households that consume electricity above 300-400kW per month will be significantly affected. Due to the extended usage period and higher consumption, many households’ electricity bills will increase from the 4th tier to the 5th and even to the 6th tier, resulting in the highest payment amount of 3,151 VND/kW, which is difficult for people to accept.

“The electricity industry cannot transfer all the disadvantages to businesses and people just to maintain its reserve fund,” said Mr. Phu.

Does the cumulative electricity price increase over two months?

It is known that starting from February, EVNHANOI changed the meter reading date to the end of the month, leading to changes in electricity payment. This meter reading cycle is based on the actual number of days of electricity usage, which usually lasts 48-50 days compared to the previous cycle of 29-30 days. Therefore, the amount of money that customers have to pay for electricity increases along with the actual number of days of usage.

An example of calculating the electricity bill after combining the days of usage. Image: EVNHANOI

To address the issue of increased electricity bills due to changes in meter reading dates, Ms. To Lan Phuong, Head of EVNHANOI Business Department, stated: “Normally, customers’ meter readings are taken between the 3rd and 20th of each month. Due to the change in meter reading dates, instead of customers paying for 30 days of usage, the actual number of days of usage can range from 41 days to 58 days. Customers’ rights will be ensured by adjusting the amount of electricity used according to the actual number of days in the meter reading cycle.”

According to Ms. Phuong, EVNHANOI will base its calculations on decrees and guidelines issued by state management agencies. The usage levels of each pricing tier will be adjusted according to the actual number of days in the meter reading cycle. For example, a customer who was previously in the 1st tier, based on the consumption of 50 kWh, could be calculated at 80-90 kWh at the beginning tier due to the extended meter reading period. The same applies to subsequent tiers.

To address consumer concerns regarding increased electricity consumption during the extended period affecting the tiered pricing, EVNHANOI guarantees that customers’ rights will always be ensured by adjusting the levels of electricity consumption based on the actual number of days in the meter reading cycle.

Mr. Nguyen Dinh Thang, Deputy Director of Hanoi Department of Industry and Trade, stated that the department has issued directives to ensure consistency throughout the entire city regarding EVNHANOI’s meter reading date change. This is a necessary action to ensure consistency in management, minimize errors in the meter reading and billing process, and ensure fairness for electricity consumers (both households and businesses).

“The change in meter reading dates is a collective effort from state management to businesses and citizens. The unified meter reading date will ensure the rights of electricity consumers and facilitate management, operation, and billing processes for the electricity provider,” said Mr. Nguyen Dinh Thang.