Residents need to understand the residential electricity tariff to avoid being shocked by their monthly electricity bills.
At the end of May 2025, the Government issued Decision 14 regulating the structure of retail electricity tariffs, bringing about a significant change in how electricity bills for households are calculated.
Electricity bills for June have shocked many households as they have skyrocketed compared to the previous month, with many cases seeing increases of 20-50%, or even double, despite little change in electricity consumption.
The main reason is that Vietnam Electricity Corporation (EVN) has adjusted the retail electricity price upwards to 2,204.06 VND/kWh (excluding VAT), effective from May 10, 2025.
On May 9, 2025, the Ministry of Industry and Trade also issued Decision No. 1279/QD-BCT regulating electricity prices, including retail electricity prices for household use, effective from May 10, 2025.
At the end of May 2025, the Government issued Decision 14 regulating the structure of retail electricity tariffs, bringing about a significant change in how electricity bills for households are calculated. Accordingly, the retail electricity tariff structure was shortened from 6 to 5 tiers, with the price in the highest tier (701 kWh and above) being 3,967 VND/kWh, excluding value-added tax.
This is a groundbreaking adjustment aimed at simplifying the electricity pricing structure and creating stronger incentives for electricity saving, especially for households with high electricity consumption.
New model for calculating household electricity bills.
According to the new tariff schedule, electricity prices for household use are calculated on a tiered system from 1-5, equivalent to 90-180% of the average retail electricity price, which was implemented on May 10, 2025.
In this new system, the cheapest tier is for households using less than 100 kWh, instead of the current 50 kWh, while the highest tier is for those using 701 kWh or more.
New 5-tiered electricity pricing structure for household consumption:
Tier 1 (0-100 kWh): 90% of the average retail electricity price.
Tier 2 (101-200 kWh): 108% of the average retail electricity price.
Tier 3 (201-400 kWh): 136% of the average retail electricity price.
Tier 4 (401-700 kWh): 162% of the average retail electricity price.
Tier 5 (701 kWh and above): 180% of the average retail electricity price.
Calculation formula: Electricity bill = kWh per tiered consumption × corresponding price
How does this affect monthly electricity bills?
With the new five-tiered pricing structure, households will be affected differently depending on their electricity consumption levels:
Electricity-saving households (using less than 100 kWh/month) will benefit from the expansion of tier 1, helping to reduce costs compared to the previous 6-tier structure. This group is prioritized for protection in the electricity price adjustment policy.
Households with average electricity consumption (101-400 kWh/month) will experience a moderate price increase, creating an incentive for electricity saving without causing a major shock to living costs.
Households that consume a lot of electricity (over 400 kWh/month) will face significant financial pressure, especially those using over 700 kWh/month, which will be charged the highest price of 180% of the average price.
