Accordingly, voters proposed to consider calculating electricity prices for household use in the direction of replacing the method of calculating by scale by calculating according to operating hours (peak and off-peak hours) to ensure the rights of the people.
Responding to this content, the Ministry of Industry and Trade stated that electricity is a special commodity, production and consumption take place at the same time, and storage of electricity has high costs.
When mobilizing power generation, the electricity industry will generally mobilize power plants with lower prices than previous power generation until it meets the electricity needs of customers.
With this feature, in order to encourage the use of electricity economically and efficiently, many countries in the world, including advanced countries such as Japan, Korea or countries such as Thailand, Malaysia, Indonesia, the Philippines, etc., are currently applying electricity prices according to similar scales to Vietnam.
The design of retail electricity prices for daily life according to levels is suitable for different electricity use levels of households with electricity prices of each level increasing gradually to encourage households to use electricity effectively and economically.
The Ministry of Industry and Trade emphasized that this is not only available in our country, but is a method applied in many countries around the world.
The reality applied in recent years shows that applying the domestic electricity price at different levels is simple and achieves the goal of encouraging the use of electricity economically and efficiently.
The Ministry of Industry and Trade believes that the provisions of the 2024 Electricity Law (effective from February 1, 2025) clearly state that retail electricity prices according to the time of electricity use during the day are applied to eligible electricity customers, including retail electricity prices during peak, low and normal hours.
For customers using electricity for living purposes, applying the retail price of electricity for living on a scale to increase for customers who are not eligible to participate or do not participate in buying and selling electricity in the competitive electricity market.
Thus, according to this regulation of the Electricity Law, depending on the level of development of the electricity market, the electricity price mechanism is applied to customers.
Previously, Deputy Prime Minister Bui Thanh Son signed Decision 14 regulating the retail price structure of electricity. This regulation takes effect from May 29.
Accordingly, the scale of electricity prices will decrease from 6 to 5 levels. The cheapest level is for households using less than 100 kWh instead of 50 kWh at present, while the highest is from 701 kWh or more.
Electricity prices at levels 1-5 are calculated at 90-180% of the average retail electricity price (currently VND 2,204.07 per kWh, applied from May 10.
Thus, according to the new price list, the lowest electricity price (level 1) is about 1,984 VND per kWh and the highest (level 5) is 3,967 VND per kWh, excluding VAT.
