Pilot implementation of two-component retail electricity tariff from October 2025
16:31, 10/10/2025
Following the directive of the Ministry of Industry and Trade, Vietnam Electricity (EVN) has completed the Project on “Developing a two-component electricity tariff system (capacity charge and energy charge) and application roadmap in Vietnam’s power sector.” Accordingly, the Ministry of Industry and Trade has approved a plan to pilot the two-component retail electricity tariff (comprising a capacity charge and an energy charge) through a paper-based trial, starting from October 2025. The pilot will apply to manufacturing customer groups directly supplied by EVN and electricity retailing affiliated units, with an average electricity consumption of 200,000kWh/month or more (over the past 12 months).
This paper-based pilot calculation using actual consumption data aims to prepare for the implementation of the two-component electricity tariff as stipulated in Article 50 of the amended Electricity Law (2024); gradually replace the existing single-component retail electricity tariff, ensuring consistency with technical infrastructure conditions of the power sector, legal requirements, and consumer adaptability to the new tariff structure.
The two-component electricity tariff consists of the maximum demand charge and the energy charge. The electricity bill that consumers must pay will consist of two parts: (1) the charge for maximum demand, reflecting the fixed costs of the electricity supply process; and (2) the charge for consumed energy, reflecting the variable costs from the customer’s actual usage. With this pricing principle, the two-component tariff provides a clear signal to electricity users to manage consumption patterns. For the same energy consumption, if customers reduce their maximum demand (Pmax), their electricity bills will be lower, which will help the power sector reduce peak load demand, operate the system more efficiently, save on investment costs, and utilize social resources more rationally.
1. Eligible participants in the paper-based two-component electricity tariff pilot
Large electricity consumers for production purposes that are directly supplied by EVN’s member distribution units, with an average monthly consumption of at least 200,000kWh/month (over the last 12 months).
2. Calculation of two-component tariff
The total electricity bill under the two-component tariff is calculated as follows:
Where:
-
TC: Total electricity bill under the two-component tariff.
-
(Cp × Pmax): The component of the electricity bill for the customer’s demand, reflecting the fixed costs that the customer imposes on the power system.
-
Cp: Capacity unit price (VND/kW/month).
-
Pmax: The customer’s maximum monthly demand (kW), measured by a power meter (average demand during the integration interval with the highest value of the month, currently 30 minutes). For contracts covering multiple meters at one site, Pmax is calculated for each meter.
-
(Ca × Ap): The component of the electricity bill for the customer’s actual energy consumption, reflecting the variable costs of the electricity supply process.
-
Ca: Energy unit price (VND/kWh). The tariff can be designed based on different time bands, including peak, normal, and off-peak periods.
-
Ap: Active energy consumption during the billing cycle (kWh).
3. Trial Tariff Structure for two-component electricity tariff pilot
For manufacturing customers selected for the paper-based pilot, the trial tariff is as follows:
|
Voltage Level
|
Capacity Charge (VND/kW/month)
|
Energy Charge (VND/kWh)
|
|
Normal
|
Peak
|
Off-peak
|
|
High Voltage
(U ≥ 110kV)
|
209,459
|
1,253
|
2,162
|
843
|
|
Medium Voltage
(22kV ≤ U < 110kV)
|
235,414
|
1,275
|
2,182
|
859
|
|
Medium Voltage
(6kV ≤ U < 22kV)
|
240,050
|
1,280
|
2,189
|
871
|
|
Low Voltage
(U < 6kV)
|
286,153
|
1,332
|
2,251
|
904
|
From October 2025, Power Corporations/Power Companies will issue a Notification of the calculation results of electricity bills under the paper-based two-component electricity tariff for customers subject to the pilot program, including a comparison between the electricity bills under the current single-component tariff and those under the two-component tariff. EVN emphasizes that this is only a paper-based pilot and calculation and will not be applied to actual electricity bills during the pilot period.
CONTACT INFORMATION:
Communications and Corporate Culture Department - Vietnam Electricity;
Address: No. 11 Cua Bac Street, Ba Dinh Ward - Hanoi City;
Email: bantt@evn.com.vn Phone: 024.66946405/66946413;
Website: www.evn.com.vn
Fanpage: www.facebook.com/evndienlucvietnam
YouTube: https://www.youtube.com/c/ĐIỆNLỰCVIỆTNAM_EVNnews
Tiktok: https://www.tiktok.com/@dienlucvn
Translator: Thu Hường
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