Vietnam Electricity (EVN) announced on October 31 that it would adjust the average retail electricity price under Decision No. 1305/QD-EVN, issued on October 30, 2026.

Effective November 1, 2026, the average retail electricity tariff was reduced by 2% to VND 2,159.9037 (approximately $0.082) per kilowatt-hour (kWh), excluding value-added tax (VAT).

Alongside the reduction, Vietnam officially introduced a new five-tier progressive pricing system for household electricity under Prime Ministerial Decision No. 14/2025/QD-TTg, replacing the previous six-tier structure.

Under the new system, residential electricity tariffs are calculated according to five consumption brackets:

Tier 1: 0-100 kWh, priced at VND 1,901 (approximately $0.072) per kWh.
Tier 2: 101-200 kWh, priced at VND 2,289 (approximately $0.087) per kWh.
Tier 3: 201-400 kWh, priced at VND 2,894 (approximately $0.110) per kWh.
Tier 4: 401-700 kWh, priced at VND 3,456 (approximately $0.131) per kWh.
Tier 5: Above 700 kWh, priced at VND 3,844 (approximately $0.146) per kWh.

All rates exclude VAT.

The highest tariff, at VND 3,844 per kWh, is more than twice the lowest rate of VND 1,901 per kWh.

At a briefing on electricity pricing policy on November 4, Nguyen Quoc Dung, Head of EVN's Business Department, said the impact of the 2% reduction in the average retail tariff would vary depending on each household's electricity consumption.

According to EVN, households consuming up to 900 kWh per month, accounting for 98.23% of all residential customers, will see their electricity bills decrease.

The maximum estimated reduction is approximately VND 77,900 ($2.95) per month.

Meanwhile, households consuming more than 900 kWh monthly, representing 1.77% of customers, could face higher bills because of changes to the tariff structure under Decision No. 14/2025/QD-TTg compared with the previous system established by Decision No. 28/2014/QD-TTg.

Specifically, a household using 1,000 kWh per month is expected to pay approximately VND 37,600 ($1.42) more.

For households consuming 2,000 kWh per month, the increase could reach VND 421,300 ($15.96).

Tam An