Many households in different parts of the nation, especially in Hanoi, are reeling from the shock of exorbitant electricity bills for May and June. At first, many thought hot weather has resulted in a sudden pickup in power consumption but later found the new power pricing method is the culprit.

This is not the first time electricity consumers in Hanoi have jumped out of their skin. Around this time last year, consumers received shocking electricity bills and asked if there was any miscalculation.

Faced with complaints about the unexpected bill increases last summer, Hanoi Power Corporation (EVN Hanoi) explained heat waves in May and June pushed up the city’s use of electricity. And the same explanation is used this time also.

Being aware of hot spells which would trigger an increase in electricity demand for air-conditioning, consumers are still in complete shock since they have taken measures to reduce the use of electrical devices.

The local news site VnExpress cites Nguyen Thi Hoa, a Hanoi resident, as saying that she is aware of a rise in power consumption caused by hot weather, the fact that the bill for the previous month doubled from nearly VND1.1 million to VND2.4 million is beyond her imagination.

Nguyen Xuan Quang, who resides in Tu Liem, Hanoi, tells Dan Tri that his family has cut down on the use of air-conditioners and TVs but their electricity bill has shot up from VND1.4 million to VND3.8 million. Similarly, an enterprise based in Cau Giay District says it could not understand why its electricity bill has surged sharply despite its reduction in electricity use.

A quick survey of VnExpress found the electricity bills of many households in Hanoi are up 30% to 100% and 3-4 times in some cases.

The city’s electricity consumption reached 2,987 MW in May 29, up from the 2,180 MW recorded at the same time last year and electricity demand leapt to a record high last month, says a representative of EVN Hanoi.

According to Dinh The Phuc, deputy head of the Electricity Regulatory Authority of Vietnam, average electricity consumption of the northern region has picked up 17% while that of Hanoi alone has climbed 28%.

In addition to the heat waves in May and early June, Professor Nguyen Huu Ninh, an expert in climate change, says on the news site Dan Tri that the presence of more concrete and glass buildings has boosted heat absorption, thus releasing heat until night.

Hot weather is often used as a scapegoat of abnormally high electricity bills. In fact, the issue boils down to the way electric power is priced. Consumers now have to pay progressive tariffs for electricity. With this pricing method, the more electricity they use the higher their bills.    

The representative at EVN Hanoi is cited by VnExpress as saying that though electricity consumption is double, bills might pick up three or even four times thanks to the progressive tariffs.

For instance, a household using 300 kWh a month pays VND609,015. However, if consumption is 600 kWh or 750 kWh, this household would have to pay VND1.453 million or VND1.88 million respectively.

Minh Hang, a resident in Cau Giay District, says in Lao Dong newspaper that it is unreasonable for the price of a commodity to rise according to the volume consumed.

According to an electricity expert, the general rule is the more people consume a product, the less they pay for it. But in Vietnam, electricity bills rise in tandem with consumption volume. He adds Vietnam Electricity Group (EVN) should rethink its progressive tariffs and profit margin.  

According to experts cited by Thanh Nien, electricity is an essential commodity, so its use should not be restricted by progressive pricing because it always benefits EVN but hurts its customers.