Electricity of Vietnam (EVN) has finalized the pricing system (capacity and energy prices) and roadmap for use in Vietnam’s power sector as directed by the Ministry of Industry and Trade (MOIT).

The two-part  pricing model includes a capacity charge based on maximum demand and an energy charge based on the real volume consumed. 

Accordingly, consumers’ electricity bills will consist of two parts: a capacity charge reflecting the fixed costs of power supply and an energy charge reflecting variable costs based on actual electricity consumption.

MOIT has approved the plan to implement a paper-based trial of the two-part retail electricity pricing from October 2025.

The pilot applies to industrial customers directly supplied by EVN and its subsidiaries, with an average monthly consumption of at least 200,000 kWh (calculated over the most recent 12 months).

Statistics show there are around 7,000 customers with average consumption of 200,000 kWh/month.

EVN has also released the trial pricing structure for the two-part electricity pricing applied from October 2025. Prices are divided by voltage levels (high, medium, low) and time-of-use periods.

Specifically, capacity charges at high voltage levels (110 kV and above) are VND209,459 per kW/month; medium voltage (22–110 kV) is VND235,414; medium voltage (6-22 kV) is VND240,050; and low voltage (below 6 kV) is VND286,153 per kW/month, the highest in the pricing structure.

Energy charges during normal hours range from VND1,253 to VND1,332 per kWh; during peak hours from VND2,162 to VND2,251 per kWh; and during off-peak hours only VND843 to VND904 per kWh.

Normal hours are defined as 4:00-9:30, 11:30-17:00, and 20:00-22:00 daily, except Sundays (4:00-22:00). Peak hours are 9:30-11:30 and 17:00-20:00 (except Sundays), while off-peak hours are from 22:00 the previous day to 4:00 the next morning.

EVN noted that this is only a trial and calculations are paper-based, not applied to actual electricity bills during the trial period.

Nguyen Quoc Dung, Head of Business at EVN, stated that two-part electricity pricing is already used in many countries. This is considered the most reasonable pricing method for power systems to meet load demand.

He explained that the model reflects the investment to meet capacity requirements, encouraging consumers to use electricity more efficiently.

"In the past, consumers had to reduce electricity usage to save costs, but now they can pay less by optimizing how they use it," he said, adding that with this model, consumers have more options to adjust behavior and usage methods to reduce demand and thus reduce costs.

Asked about the impact on consumers and EVN, Dung noted that for consumers with high usage duration and high Tmax (i.e. high load factor), the average electricity price will decrease. Usage patterns will determine system costs, thereby affecting electricity prices.

After the trial period, EVN will make necessary adjustments and plans to implement the new mechanism from 2026.

Prior to that, at a meeting on two-part pricing in early September, Minister of Industry and Trade Nguyen Hong Dien announced that from January 1, 2026, the new pricing model will be applied to large-scale electricity users.

From October to December 31, 2025, two invoices will be issued in parallel: one based on the current mechanism for actual payment, and another calculated using the new method for customer reference and self-adjustment.

The initial phase targets large customers, excluding policy beneficiaries. Later, broader implementation with peak and off-peak pricing will ensure greater fairness.

Tran Hoai Trang, Deputy Director of the Electricity Department under MOIT, said Vietnam currently applies a single-component retail electricity tariff, which includes only the energy component.

The advantage of this method is its simplicity and ease of application, but it does not accurately reflect the costs of usage and transmission investment.

Trang provided an example: one household registers a capacity of 24 kW but uses it for only one hour; another registers 1 kW but uses it continuously for 24 hours. Clearly, the second household should pay more due to differing operational and transmission costs.

In contrast, the two-component electricity tariff includes both capacity and energy consumption. 

To implement the new mechanism, Trang emphasized the need for adequate infrastructure. All consuming households must have meters that display both energy consumption and capacity values. Only then will the implementation be effective.

Nguyen Le