Common electricity price is nearly VND 3,000/kWh, who benefits and who suffers?

VCN- According to calculation of the Ministry of Industry and Trade, only customers consuming more than 800 kWh/month choose the common price, their electricity bills will be lower than if they choosethe tiered pricing mechanism.
common electricity price is nearly vnd 3000kwh who benefits and who suffers Option one electricity price: Calculating carefully to harmonize benefits
common electricity price is nearly vnd 3000kwh who benefits and who suffers Risk of electricity shortage is available
common electricity price is nearly vnd 3000kwh who benefits and who suffers Ministry of Finance’s comments on electricity price reduction for three months

common electricity price is nearly vnd 3000kwh who benefits and who suffers
Illustrative photo: N.T

Electricity bills surge when using 300kWh,

The Ministry of Industry and Trade is collecting comments on the draft decision of the Prime Minister on the retail electricity tariff structure to amend Decision 28/2014/QD-TTg on the retail electricity tariff structure.

Notably, in the draft, in addition to the option to improve the retail electricity price, the current six tiers will be reduced to five. The Ministry of Industry and Trade provides a new option. The 5-tiered pricing mechanism and the common price will be applied in parallel (electricity customers can select the 5-tiered pricing mechanism or the common price).

Talking to the press on August 13, the Ministry of Industry and Trade specified these options.

Specifically, option 1: The current six tiers will be reduced to five, ensuring that the current average electricity price for householdsis maintained.

Accordingly, the current tier 1 and tier 2 will be merged into a new tier 1 (for 0-100 kWh), and the price of the new tier 1 will be kept as the current tier 1; the price for customers using from 101-200 kWh will be maintained; the tier for201-300 kWh will be merged with the tier for 301-400 kWh into a new tier; the tier for more than 401 kWh will be divided into two new tiers, including the tier for 401kWh to700 kWh and the tier for over 701 kWh.

Option 2:The current six tiers will be reduced to five, and there will be a common price.Customers are allowed to select the 5-tiered pricing mechanism or the common priceaccording to their electricity consumption level.

Regarding option 2, the Ministry of Industry and Trade develops option 2A and option 2B for consultation. Accordingly, the electricity tariffs in the first 4 tiers of the option 2A and option 2B is the same as the option 1.

The electricity tariffs in option 2A and 2B are proposed at 145% of the average price (equivalent to VND2,703/kWh) and 155% of the average price (equivalent to VND2,889/ kWh). Corresponding to each option, the electricity price at tier 5 will be recalculated to not change the average electricity price.

The Ministry of Industry and Trade assessed that the electricity bills of most customers using less than 600 kWh will decrease compared to the current price (from VND2,800 to VND12,800).

If customers use 300 kWh, the electricity bills will increase because the tier for 201-300 kWh and tier for 301-400 kWh are merged into a new tier. The additional payable amount when used at 300 kWh is VND7,100.

common electricity price is nearly vnd 3000kwh who benefits and who suffers
The electricity tariff of customers using electricity for householdpurposescalculated by the Ministry of Industry and Trade.

The table of electricity charges shows that in fact there is a difference compared to the ministry’s assessment when it has not analyzed in depth customers using less electricity but choosing the option of the common price.

Specifically, with the new tiered pricing mechanism, customers using 400kWh or less will have to pay less than the former tiered pricing mechanism. However, if these customers choose the common price, they will have to pay much more than choosing the tiered pricing mechanism.

With the new tiered pricing mechanism, customers using 700 kWh or more will have to pay higher than the former tiered pricing mechanism, however the increase is not significant. Meanwhile, if choosing the common price, these customers will have to pay morethan choosing the tiered pricing mechanism.

Thus, these customers must consider carefully when choosing the common power price.

Customers will benefit when using more than 800 kWh

For option 2A and 2B, the Ministry of Industry and Trade said that to ensure the stability of the average electricity price, and the maintenance of price in the first 4 tiers of option 1 and option 2 to not impact the electricity bills of customers using less than 700kWh/month.

If the common price is 145% of the average electricity price (in option 2A, the price is higher than in tier 3 and lower than in tier 4 and 5), the price at tier 5 will be 274% of the average electricity price.

If the common price is 155% of the average electricity price (in option 2A, the price is higher than in tier 3 and lower than in tier 4 and 5), the price at tier 5 will be 185% of the average electricity price.

If options 2A and 2B are applied, when customers choose the tariff according to option 1, they will limit the disadvantages of the tiered pricing mechanism, especially for customers consuming a high amount of electricity such as the surge of electricity billsin hot months, deviation in time of monthly meter readings.

Specifically, when the commom price is 145% of the average electricity price (option 2A), customers using electricity over 800 kWh choose the common price, their electricity bills will be lower than choose the tiered pricing mechanism.

When the common price is 155% of the average electricity price (option 2A); customers using electricity over 1,100 kWh choose the common price, their electricity bills will be lower than choosing the tiered pricing mechanism.

By Thanh Nguyen/Ngoc Loan

Related News

Request for price management and stabilization, avoiding unusual fluctuations during Tet 2025

Request for price management and stabilization, avoiding unusual fluctuations during Tet 2025

VCN - Minister of Finance Nguyen Van Thang has just signed and issued Directive No. 05/CT-BTC on strengthening the price management, operation and stabilization during the Lunar New Year 2025.
Proposal extending 50% green tax cut for fuel products in 2025

Proposal extending 50% green tax cut for fuel products in 2025

VCN - The Ministry of Finance has just proposed extending 50% green tax cut in 2025 for gasoline (except ethanol), oil, and grease; reducing about 70% on jet fuel and 40% on kerosene. According to calculations, the total state budget will decrease by about VND44,224 billion under this policy.
Striving for average CPI not to exceed 4%

Striving for average CPI not to exceed 4%

VCN - According to the report of the Ministry of Finance, there are still some factors that put pressure on price levels in the remaining months of 2024, so the Ministry has updated 2 scenarios of average inflation in 2024 increasing in the range of 3.7-3.92%.
Managing price effectively, reducing pressure on inflation

Managing price effectively, reducing pressure on inflation

VCN - Timely and effective price management helps control the consumer price index (CPI) and inflation in accordance with the set target.
Comment

Latest News

15th National Assembly concludes ninth extraordinary session

15th National Assembly concludes ninth extraordinary session

NA Chairman Trần Thanh Mẫn highlighted this session as a significant milestone in legislative development, playing a crucial role in streamlining the political system.
Party chief requests priority for sci-tech development, digital transformation

Party chief requests priority for sci-tech development, digital transformation

The Party chief asked for prompt amendments to the Law on Science and Technology, followed by revisions to other laws to ensure consistency and alignment with practical requirements.
Monetary policy is a key factor for economic stability and growth

Monetary policy is a key factor for economic stability and growth

VCN – Vietnam’s economy is forecast to grow by 6.7% in 2025, Standard Chartered Bank reported.
Việt Nam commits to being safe, attractive destination for investors

Việt Nam commits to being safe, attractive destination for investors

The Deputy Prime Minister said from an underdeveloped economy, devastated by war, Việt Nam has risen to become the 33rd largest economy in the world with the size of the economy increasing about 60 times compared to the period before renewal.

More News

Minister of Planning and Investment outlines six strategies to boost Việt Nam’s private sector

Minister of Planning and Investment outlines six strategies to boost Việt Nam’s private sector

Dũng’s message to Việt Nam’s business community was clear: the private sector must continue to evolve and innovate to maintain its role as a key driver of economic development in the face of new global challenges.
Positive economy growth forecast in 2025, but caution remains

Positive economy growth forecast in 2025, but caution remains

Growth is expected to moderate from 7.5 per cent year-on-year in H1 to 6.1 per cent in H2, driven by increased business activity and sustained foreign investment.
Labour market to see changes in key industries

Labour market to see changes in key industries

It is anticipated that the technology, renewable energy and logistics sectors would continue to expand rapidly in 2025.
Prime Minister warns of possible global trade war, pushes for preparation

Prime Minister warns of possible global trade war, pushes for preparation

The Government leader warns of a possibility of a trade war that may disrupt the global supply chain.
Positive economic indicators recorded in early 2025: Gov

Positive economic indicators recorded in early 2025: Gov't spokesperson

Trade remained smooth, with total import-export turnover estimated at $63.15 billion, down 10.5 per cent from the previous month and 3.5 per cent year-on-year.
General Secretary urges immediate return to work after Tết

General Secretary urges immediate return to work after Tết

Party General Secretary Tô Lâm praised efforts to ensure a well-organised holiday, but stressed the need for authorities and businesses to return to work promptly. He warned against extended celebrations and called for full focus on meeting February and first-quarter deadlines.
Government holds gathering to celebrate Party’s 95th anniversary, Lunar New Year

Government holds gathering to celebrate Party’s 95th anniversary, Lunar New Year

PM Phạm Minh Chính expressed his hope for continued support from the Party Central Committee, its Politburo and Secretariat, current and former leaders, the National Asembly, and the Việt Nam Fatherland Front for the Government to fulfil its tasks, creating momentum for the whole country to make development breakthrough and enter the era of the nation’s rise.
Việt Nam’s manufacturing PMI slips into contraction in January

Việt Nam’s manufacturing PMI slips into contraction in January

Business conditions in the Vietnamese manufacturing sector weakened in the first month of 2025 with drops in both output and new orders.
Party’s 95-year journey: Capitalising on great solidarity in era of nation’s rise

Party’s 95-year journey: Capitalising on great solidarity in era of nation’s rise

The past 95 years have formed a glorious and pride-worthy period for the Vietnamese people as they have gradually eliminated poverty and backwardness, steadily moving towards a wealthier and happier future.
Read More

Your care

The system has not recorded your reading habits.

Please Login/Register so that the system can provide articles according to your reading needs.

Latest Most read
15th National Assembly concludes ninth extraordinary session

15th National Assembly concludes ninth extraordinary session

NA Chairman Trần Thanh Mẫn highlighted this session as a significant milestone in legislative development, playing a crucial role in streamlining the political system.
Party chief requests priority for sci-tech development, digital transformation

Party chief requests priority for sci-tech development, digital transformation

The Party chief asked for prompt amendments to the Law on Science and Technology, followed by revisions to other laws to ensure consistency and alignment with practical requirements.
Monetary policy is a key factor for economic stability and growth

Monetary policy is a key factor for economic stability and growth

VCN - Standard Chartered's report also forecasts Vietnam's economic growth at 7.5% in the first half of the year and at 6.1% in the second half of the year compared to the same period last year.
Việt Nam commits to being safe, attractive destination for investors

Việt Nam commits to being safe, attractive destination for investors

The Deputy Prime Minister said from an underdeveloped economy, devastated by war, Việt Nam has risen to become the 33rd largest economy in the world with the size of the economy increasing about 60 times compared to the period before renewal.
Minister of Planning and Investment outlines six strategies to boost Việt Nam’s private sector

Minister of Planning and Investment outlines six strategies to boost Việt Nam’s private sector

Dũng’s message to Việt Nam’s business community was clear: the private sector must continue to evolve and innovate to maintain its role as a key driver of economic development in the face of new global challenges.
Mobile Version