Consider reducing the tiered electricity pricing system to a three-tier system.

The Ministry of Industry and Trade has requested that research be conducted soon to consider adjusting the tiered electricity pricing system from the current 6 tiers down to 3 tiers, and eventually to 1 tier.

At a recent briefing at the Ministry of Industry and Trade, Minister Vu Huy Hoang requested that relevant agencies under the ministry promptly study and consider adjusting the tiered electricity pricing system from the current six tiers down to three tiers, and eventually to a single tier.

Regarding electricity bills and meter readings, a representative from the Electricity Regulatory Authority stated that the Authority has directed EVN to conduct inspections and monitoring of electricity supply.

Illustrative image. (Source: KT)

Each month, the electricity sector receives approximately 2,500-3,000 customer feedback comments, of which about 200-300 concern electricity bills. According to data from the Ministry of Industry and Trade and the Vietnam Electricity Group (EVN), in June 2015, nearly 30% of EVN Hanoi's more than 2.1 million customers experienced an increase in electricity consumption of 1.5 times or more compared to May, equivalent to nearly 685,000 households.

According to Deputy Minister of Industry and Trade Hoang Quoc Vuong, with the current tiered electricity pricing system (6 levels), if a household uses more than 400 kWh, the electricity price will be about 1,000 VND/kWh higher than the average levels.

The current electricity pricing system, which uses a "the more you use, the more you pay" model, and uses the higher consumption rate to compensate for lower consumption, is not truly convincing to consumers. Especially since the current electricity prices already generate profit, the "the more you use, the more you pay" philosophy is no longer appropriate.

According to Vov.vn