People need to understand the electricity price list to avoid being 'shocked' by their monthly electricity bill.
At the end of May 2025, the Government issued Decision 14 regulating the structure of retail electricity prices, bringing about important changes in the way household electricity bills are calculated.
The electricity bill for June shocked many households when it skyrocketed compared to the previous month. In many cases, the payment increased by 20-50%, even doubling, even though the amount of electricity used did not change much.
The main reason is that Vietnam Electricity Group has adjusted the retail electricity price up to VND 2,204.06/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 prices for household electricity, effective from May 10, 2025.
At the end of May 2025, the Government issued Decision 14 regulating the structure of retail electricity prices, bringing about important changes in the way household electricity bills are calculated. Accordingly, the retail electricity price list was shortened from 6 to 5 levels, with the price at the highest level (701 kWh or more) being 3,967 VND/kWh, excluding value added tax.
This is a breakthrough adjustment to simplify the electricity price structure and create stronger incentives for electricity saving, especially for households with high electricity consumption.
New household electricity billing model
According to the new price list, household electricity prices are calculated on a scale from 1-5, equivalent to 90-180% of the average retail electricity price just applied on May 10, 2025.
The cheapest tier is for households using less than 100 kWh instead of 50 kWh as present, while the highest tier is from 701 kWh or more.
New 5-tier household electricity price structure:
Level 1 (0-100 kWh): 90% of average retail electricity price
Level 2 (101-200 kWh): 108% of average retail electricity price
Level 3 (201-400 kWh): 136% of average retail electricity price
Level 4 (401-700 kWh): 162% of average retail electricity price
Level 5 (from 701 kWh and above): 180% of average retail electricity price
Calculation formula: Electricity bill = kWh applied to tier price × corresponding price
How does monthly electricity bill affect?
With the new 5-tier structure, households will be affected differently depending on their electricity consumption:
Households that save electricity (under 100 kWh/month) will benefit from the expansion of level 1, which will reduce costs compared to the previous 6-level structure. This is a priority group protected in the electricity price adjustment policy.
Average households (101-400 kWh/month) will see a moderate price increase, creating incentives to save electricity without causing too much of a shock to the cost of living.
Households using a lot of electricity (over 400 kWh/month) will be under significant financial pressure, especially the group using over 700 kWh/month with the highest price of 180% of the average price.
