EVN talks about new electricity price mechanism, starting testing from October 2025

At the seminar "Finding a way for clean electricity - Removing policy bottlenecks, unblocking energy" organized by Construction Newspaper on the afternoon of October 8, Mr. Tran Hoai Trang, Deputy Director of the Electricity Department ( Ministry of Industry and Trade ) said that Vietnam is applying a single-component retail electricity price, which only includes the electricity part.

The advantage of this calculation method is that it is simple and easy to apply, but it does not accurately reflect the cost of use and transmission investment.

Mr. Trang gave an example from practice, one household registered a capacity of 24 kW but only used it for 1 hour; another household registered a capacity of 1 kW but used it continuously for 24 hours. Obviously, the second household had to pay more to the electricity seller due to different operating and transmission costs.

Meanwhile, the two-component electricity price includes both capacity and output. According to him, the Ministry of Industry and Trade is piloting the two-component electricity price for customers with an average electricity consumption of more than 200,000 kWh/month. According to EVN statistics, there are about 7,000 customers using electricity at this level.

The Ministry also directed EVN to soon launch a pilot program from October 2025, then summarize and evaluate before deciding whether to put the two-component electricity price into practice or not.

However, to support the implementation of the two-component electricity price, the Deputy Director of the Electricity Department said that it is necessary to ensure infrastructure. All electricity consumers must have meters that show both the electricity consumption output and the power value... Only then will the implementation be effective.

According to Mr. Nguyen Quoc Dung, Head of EVN Business Department, the two-component electricity price has been applied in many countries, especially developed countries. Because, this is the most accurate method of calculating the price for the power system to meet the load demand.

The Prime Minister has assigned units to study two-component electricity prices, including capacity price and electricity price, for each customer group.

Mr. Dung assessed that our country's technical infrastructure is relatively secure, electronic meters can collect remote measurement data and determine capacity every 30 minutes. The transmission infrastructure is also relatively good, which is the basic condition for implementing two-component electricity prices.

Regarding the impact of the two-component electricity price on businesses, EVN representative said that the expected target of application is production customers with a consumption of 200,000 kWh/month, averaged over 12 months and calculated on paper from October. After that, it will be adjusted accordingly and expected to be applied from 2026.

Mr. Dung emphasized that this is the motivation for businesses to save costs.

“Previously, we had to reduce the amount of electricity used to save; now we need to reduce the amount of electricity used but still be able to meet the demand by optimizing the usage. We can allocate so that the total capacity is reduced but still achieve normal output,” the EVN representative affirmed.

He noted that with this calculation, customers have more options to adjust their behavior and usage to reduce capacity, thereby reducing costs.

Minister of Industry and Trade talks about the new electricity price mechanism According to the Minister of Industry and Trade, the current electricity price mechanism is not transparent, there is still cross-subsidy between customer groups and consumers do not have the right to choose the electricity seller.

Source: https://vietnamnet.vn/evn-noi-ve-co-che-gia-dien-moi-thu-nghiem-tu-thang-10-2025-2450606.html