Improving the electricity retailing price list: Who benefits, who suffers?
![]() |
Improving the electricity tariff is not adjusting electricity prices but only revising the electricity price scale to suit the actual use of electricity. Photo: Nguyen Thanh. |
460,000 customers suffered
Nguyen Anh Tuan, Director of Electricity Regulatory Authority (Ministry of Industry and Trade), said that to consider the options to improve the structure of the electricity retail price tariff, the Ministry of Industry and Trade gave actual statistics on electricity output of customers. Accordingly, more than 1.2 million customers use less than 50 kWh/month; over 18 million customers, accounting for 72% of customers using 50-300 kWh/month, equivalent to about 60% of total output. The number of customers over 700 kWh/month compared to the survey in 2015 has increased significantly, accounting for about 1.7%, with consumption volume of about 13%.
Based on the report byEVN, the opinions of experts, associations, the Ministry of Industry and Trade has researched, checked and proposed five options to improve the electricity price structure; in which, there is a 1-level plan (all customers apply the same price), three levels, four levels and five levels. Particularly, the 5-level plan has two different options. The change of these must be in line with the approved average cost of electricity. Therefore, the improvement of the electricity price index is not actually adjusting the electricity price, but only revising the electricity price scale to suit the current use of electricity by customers.
"With each proposed plan, the Ministry of Industry and Trade has calculated and compared the amount of money customers on each stagemust pay compared to the 6-level plan being applied. The advantage is that the number of steps is reduced compared to the current regulations.However, the 1-level, 3-level and 4-level options have the common disadvantage that low-end customers must pay more, and customers that use a lot of electricity have to pay less," said Tuan.
Specifically, with the 1-level, 2-level and 3-level options, customers using less than 300 kWh/month, accounting for 87% of customers,suffer from losses. This does not achieve the goal of encouraging people to use electricity economically.At the same time, the state budget must support poor households and policy beneficiaries. Meanwhile, the plan proposed by the Ministry of Industry and Trade is five steps to overcome the above-mentioned disadvantages. Tens of millions of customers who use less than 300 kWh / month benefit from and pay lower electricity bills, especially for poor households, the policy continues to be supported by the state, about 1.8 million households with a total amount of support over 1,000 billion/year as today. In the opposite direction, with this option, households that use more than 700 kWh/month will suffer. The total number of customers is 0.46 million, accounting for 1.8% of the total customers paying higher.
Why use more, the higher the price?
In fact, when the improved retail price of electricity is raised, many views expressed interest in the perspective of why electricity is contrary to other products, using more, customers have to pay the higher price?
Regarding this right from the time of commenting on "Scheme on Improving the structure of Vietnam's electricity retail price list" at the seminar held by EVN in mid-May 2019, Nguyen TienThoa, Chairman of the Appraisal Association said: The more you pay, the higher it is in fact the economic logic that goes from the characteristics of the electricity system. That method is to solve the problem of electricity production costs, including at normal times and also during periods of peak load; must mobilize sources of electricity with different prices to meet consumption needs.
"Using as much electricity andpaying more at a higher price is the way to respond to the objective requirements of the law of resource scarcity, which operates in a controlled monopoly market, not in a competitive market,”said Thoa.
The Chairman of the Appraisal Committee emphasized: Electricity is a resource that is transformed from many non-renewable resources. This is not endless, even some are running out (oil, coal, natural gas) leading to electricity that is not endless resources, but wasteful use.
On improving the electricity retailing price list, Mr. Nguyen Anh Tuan added: The improvement of the structure of electricity retailing price remains the average price of electricity issued under Decision 648/QD-BCT of March 20, 2019 adjusting the retail price of electricity. Therefore, the adjustment of the electricity retailing price structure this time only for the purpose of adjusting the structure to best suit the actual use of electricity of customers, without changing the price level average daily electricity retail.
"At present, the Ministry of Industry and Trade has submitted a written request to 155 units including the provincial People's Committees, ministries, branches and industry associations. On the basis of the comments from the units, the Ministry of Industry and Trade will summarize and complete the plan, report and submit to the Prime Minister for consideration and direction. After the Prime Minister's decision, the Ministry of Industry and Trade will issue a new price list," the Director of the Department of Industry and Trade Electricity said.
Related News

Trade remedies protect domestic industries
13:49 | 28/12/2024 Import-Export

Reconfigure the global cashew supply chain to prevent disruptions
00:00 | 02/03/2024 Import-Export

Ministry of Industry and Trade: more than 300,000 applications processed via NSW
15:39 | 22/12/2023 Customs

Opportunities to increase orders from the European market
10:34 | 27/09/2023 Import-Export
Latest News

Embracing green exports: a pathway to enter global supply chains
10:33 | 20/02/2025 Import-Export

New policy proposed to prevent transfer pricing, tax evasion of FDI enterprises
10:32 | 20/02/2025 Import-Export

Việt Nam’s durian exports to China plummet by 80%
16:18 | 19/02/2025 Import-Export

Coconut exports reach 14-year high
15:29 | 18/02/2025 Import-Export
More News

Shrimp exports grow in the first month of 2025
15:28 | 18/02/2025 Import-Export

Rice export prices drop, but decline expected to be short-term
08:10 | 17/02/2025 Import-Export

Key agro products expected to maintain export growth this year
08:08 | 17/02/2025 Import-Export

EU issues 12 warnings against Việt Nam’s food and agricultural exports
08:07 | 17/02/2025 Import-Export

Việt Nam to impose VAT on low-value express-imported goods
08:06 | 17/02/2025 Import-Export

Exchange rate risks need attention in near future
16:31 | 15/02/2025 Import-Export

Vietnam kicked off the year with a strong start in trade, exceeding US$63 billion in the first month
16:30 | 15/02/2025 Import-Export

Import and export turnover reaches about US$29 billion in the second half of January 2025
14:52 | 14/02/2025 Import-Export

Market edges up slightly as liquidity remains low
14:48 | 14/02/2025 Import-Export
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.

Embracing green exports: a pathway to enter global supply chains
10:33 | 20/02/2025 Import-Export

New policy proposed to prevent transfer pricing, tax evasion of FDI enterprises
10:32 | 20/02/2025 Import-Export

Việt Nam’s durian exports to China plummet by 80%
16:18 | 19/02/2025 Import-Export

Coconut exports reach 14-year high
15:29 | 18/02/2025 Import-Export

Shrimp exports grow in the first month of 2025
15:28 | 18/02/2025 Import-Export