Where is the average electricity tariff of Vietnam compared to the world?

10:38, 27/10/2021

In March 2021, the website Global Petrol Prices periodically revealed the average electricity tariffs in 147 countries around the world, including those applied to households and businesses (https://www.globalpetrolprices.com/electricity_prices/). Accordingly, the average electricity tariff in the world as of March 2021 was 0.136 USD/kWh for household customers and 0.124 USD/kWh for business customers. As per this report, Vietnam's average electricity tariff currently stands at 101/147 countries (in descending order of electricity tariffs).

Average electricity tariff

Comparing the current electricity tariff of Vietnam with the world

According to Decision No. 648/QD-BCT dated 20 March 2019 of the Ministry of Industry and Trade, the average retail electricity tariff is 1864.44 VND/kWh (also equivalent to 0.083 USD/kWh), which is about 66% of the average electricity tariff of the world and also just low average compared to the average electricity tariffs of the countries in the world (101/147).

In the ASEAN region, Vietnam is having a low average electricity tariff against most countries in the region. Even, the current retail tariff in Vietnam is only 51% of that of the Philippines - the country with the highest electricity tariff in the region ($0.172/kW).

For the time being, in ASEAN, Laos is the country with the lowest electricity tariff in the region, however, up to 70% of the electricity output of this country is generated from hydropower plants and about 25% from coal-fired power plants.

The cost of electricity generation is increasing due to the energy crisis

The energy crisis is taking place in many countries around the world, including the world's powerful countries such as the US, UK, China, etc. due to rising input fuel prices leading to a sharp increase in electricity prices.

As for Vietnam, from July 2021 onwards, the input fuel price implemented by Vietnam Electricity (EVN) is much higher than that implemented in the first 6 months of 2021, especially coal price. According to the national power system operation data, the generation output of coal and oil thermal power plants accounts for 51% of the total output of all types of power plants. The imported coal price and the global oil price have been having a great impact on EVN's cost of electricity purchase from coal-fired thermal power plants using imported coal and gas-fired thermal power plants with the pass-through gas price mechanisms. In comparison with the same period in 2020, EVN's cost of electricity purchase in 2021 is expected to increase to VND 16,600 billion.