New regulations on retail electricity tariff structure

12:18, 31/05/2025

Retail electricity prices for the residential electricity consumers group include 5 levels with increasing prices to encourage economical and efficient use of electricity.

Deputy Prime Minister Bui Thanh Son has just signed Decision No. 14/2025/QD-TTg dated May 29, 2025, stipulating the structure of the retail electricity tariff. This Decision regulates retail electricity tariff structure; suitable electricity price mechanism for electricity consumers groups; support mechanism for electricity bills for residential electricity consumers for poor households and social policy households; electricity prices in rural, mountainous, border, and island areas not connected to the national grid as prescribed in Point a, Clause 13, Article 5, Point b and Point c, Clause 3, Article 50 of the Electricity Law 2024.

Retail electricity tariff structure

According to the Decision, the electricity retail tariff structure is a table of percentages (%) of the average electricity retail price to calculate specific electricity retail prices for each group of electricity customers. The percentage (%) of the electricity retail price for each electricity customer group compared to the average electricity retail price is adjusted according to the authority as prescribed in the mechanism for adjusting the average retail electricity price, specified in detail in the Appendix issued with this Decision.

In the event of a change in the electricity consumption structure, retail electricity prices for customer groups may be adjusted (within a margin of ±2%) based on the average retail electricity price adjusted by the competent authority, by the percentage specified in the Appendix issued with this Decision.

The retail electricity prices for customer groups are determined based on the average retail electricity price adjusted under authorized jurisdiction and the structure of the retail electricity tariff.

Retail electricity prices

Retail electricity prices are specified in detail for each group of electricity customers encompassing production, business, administration, and living.

Retail electricity prices according to voltage levels: high voltage is the rated voltage level above 35kV (including voltage levels above 35kV to below 220kV and voltage level 220kV), medium voltage is the rated voltage level above 01kV to 35kV, low voltage is the rated voltage level up to 01kV applied to groups of electricity users for production, business, administrative career purposes.

Time-of-use retail electricity prices for production and business purposes are applied to customers who meet the required conditions at different voltage levels.

The retail electricity price for the residential electricity consumers group includes 5 levels with increasing prices to encourage economical and efficient use of electricity. Specifically, level 1: For kWh up to 100, the percentage compared to the average retail electricity price adjusted by authority is 90%; level 2: For kWh from 101 - 200, the percentage compared to the average retail electricity price adjusted by authority is 108%; level 3: For kWh from 201 - 400, the percentage compared to the average retail electricity price adjusted by authority is 136%; level 4: For kWh from 401 - 700, the percentage compared to the average retail electricity price adjusted by authority is 162%; level 5: For kWh from 701 and above, the percentage compared to the average retail electricity price adjusted by authority is 180%.

Applying the electricity price for areas connected to the national grid for electricity customers in rural, mountainous, border, and island areas not yet connected to the national grid.

The cost difference incurred by power units due to the application of a unified nationwide electricity retail price lower than the cost of electricity production and business is included in the national average electricity price for areas where electricity is sold by Vietnam Electricity (EVN). For areas not served by EVN, the cost difference is handled by regulations issued by the Prime Minister.

In cases where the retail electricity price consists of multiple components applied to customer groups, and technical conditions allow, implementation shall follow the regulations of the Prime Minister.

Electricity bill support

According to the Decision, poor households, as defined by relevant legal regulations at each period, are provided with electricity bill support for household purposes, with a monthly support amount equivalent to the electricity used for 30 kWh calculated at the current level-1 residential retail electricity price.

Social policy households according to the criteria prescribed by the Prime Minister (not poor households eligible for electricity support according to the above regulations) and whose monthly electricity consumption does not surpass 50 kWh will be supported with electricity equivalent to the electricity consumption of 30 kWh calculated according to the current level-1 residential retail electricity price.

Electricity bills support funding for poor households, and social policy households are allocated from the state budget and other lawful financial sources by legal regulations. The central budget provides support to localities for electricity bill assistance based on the principle of targeted support from the central budget to local budgets for the implementation of social welfare policies, as decided by competent authorities from time to time.

The Ministry of Industry and Trade is responsible for regulating and guiding the implementation of retail electricity prices for groups of electricity customers; and electricity prices for electricity retailers. The Minister of Industry and Trade shall issue an official written decision on the peak hours, off-peak hours, and normal hours on the electricity usage situation of the power system in each period.

Details of Decision 14/2025/QD-TTg dated May 29, 2025, here

Decision No. 14/2025/QĐ-TTg takes effect from 29 May 2025, replacing Decision No. 28/2014/QĐ-TTg, and shall be applied from the date of the next adjustment of the average retail electricity price following the effective date of this Decision.


Translator: Thanh Hải

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