On September 8, 2025, the Vietnamese government took a decisive step toward overhauling its electricity pricing system, setting the stage for the introduction of a two-component pricing mechanism. At a meeting in Hanoi, Minister of Industry and Trade Nguyen Hong Dien, joined by representatives from the Ministry and the Vietnam Electricity Group (EVN), outlined a comprehensive plan that could reshape how businesses—and eventually households—pay for power across the country.
For decades, Vietnam’s electricity bills have been calculated using a single-component model: consumers pay based solely on the amount of electricity they use, measured in kilowatt-hours (kWh). While straightforward, this system has led to cross-subsidization among customer groups and doesn’t always reflect the true cost of maintaining the country’s sprawling grid. According to Dân trí, this means some users, particularly large industrial consumers, may benefit at the expense of others, while the actual infrastructure costs—think transformers, transmission lines, and backup capacity—are not fairly distributed.
Seeking to address these longstanding issues, the Ministry of Industry and Trade (MOIT) has proposed a four-stage rollout for the new two-component pricing mechanism. The plan, as described by Minister Nguyen Hong Dien and detailed in recent government discussions, is ambitious but carefully structured to minimize disruption and maximize fairness.
Stage one, running from now until the end of June 2026, will focus on data gathering and initial application to a select group of production customers. Specifically, this phase targets large industrial clients who already participate in the direct electricity purchase mechanism under Government Decree 57/2025. Authorities will collect detailed usage data—including peak demand and total consumption—while analyzing usage patterns across various customer groups. The goal is to fine-tune the pricing formula and ensure it accurately reflects the costs of supplying electricity to different types of users.
Stage two, scheduled from January to June 2026, will see the introduction of a “paper pilot.” During this period, all customers will receive parallel invoices: one calculated under the current single-component system, and another reflecting the new two-component structure. Importantly, only the existing bill will require payment—this approach allows both customers and officials to see how the new system would impact costs, without any immediate financial consequences. As Dân trí notes, this stage is crucial for communication and education, giving everyone time to adjust and understand the rationale behind the change.
Stage three marks the official, one-year pilot of the two-component pricing, from July 2026 to July 2027. During this time, selected customers will pay their electricity bills using the new method, and authorities will closely monitor the effects. They’ll be looking at how usage patterns change, how customers react, and how the new pricing impacts both individual bills and EVN’s overall revenue. “If implemented fully and transparently, this mechanism will eliminate the need to maintain price differences between different electricity buyer groups,” emphasized EVN General Director Nguyen Anh Tuan, as quoted by the Ministry of Industry and Trade.
Finally, from August 2027, the government plans to evaluate the pilot’s results and, if successful, expand the two-component pricing to a broader range of customer groups. This expansion will be informed by detailed assessments of financial, technical, and behavioral impacts observed during the pilot phase.
But what exactly changes under the new system? In simple terms, the two-component electricity price splits the bill into two parts. The first is a fixed capacity charge, based on the maximum power a customer registers or uses. This portion covers the cost of keeping infrastructure ready and available—even if the customer doesn’t use it all the time. The second part is a variable charge, calculated on the actual amount of electricity consumed, similar to the current model. This reflects the operational costs of producing and delivering electricity. According to Dân trí and the Ministry’s official communications, this approach is common internationally and is seen as a more accurate way to match costs with usage.
For now, the immediate focus is on large industrial customers—those consuming at least 200,000 kWh per month and connected at 22 kV or higher. EVN has argued that applying the two-component mechanism to residential customers right away would require significant investment in new metering infrastructure, so households will continue with the current system for the time being. However, as the pilot progresses and technology improves, officials have signaled that broader adoption is possible down the line.
Minister Nguyen Hong Dien has made clear that this reform is not just about economics—it’s also about energy security and fairness. The move aligns with Resolution 70 of the Politburo, which sets ambitious targets for national energy security through 2030 and a strategic vision to 2045. “This is an important step in implementing the Electricity Law and ensuring national energy security,” the Minister stated at the Hanoi meeting, underscoring the government’s commitment to both transparency and long-term planning.
To ensure a smooth rollout, the Ministry has tasked the Electricity Department, EVN, and affiliated power companies with five key assignments. These include finalizing the detailed proposal for the two-component pricing plan, reviewing and amending relevant regulations (such as Decision No. 14/2025), and developing transparent software systems for billing and management. EVN is also expected to spearhead public communications, helping customers understand the new system and encouraging them to adjust their electricity use accordingly.
“All of these tasks must be completed before October 20,” Minister Dien emphasized, highlighting the urgency and importance of the reform. From September 15, EVN will also launch a comprehensive public information campaign, comparing Vietnam’s electricity pricing with regional and international standards to provide context and build public trust.
While the shift to a two-component electricity price is a significant departure from Vietnam’s traditional approach, it’s a change that many experts and officials believe is overdue. By more accurately reflecting the real costs of supplying power and reducing cross-subsidies among customer groups, the new system aims to create a fairer, more transparent, and ultimately more sustainable energy market.
As the pilot phases unfold and the country watches closely, the coming years will reveal how this bold experiment in electricity pricing shapes Vietnam’s energy future—and whether it can deliver on its promises of fairness, efficiency, and security for all.
