The difference must be reasonable, transparent and encourage behavioral change
On April 22, 2026, the Ministry of Industry and Trade issued Decision 963/QD-BCT regulating peak hours, off-peak hours and normal hours of the national power system.
Decision No. 1279 dated May 9, 2025 of the Ministry of Industry and Trade shows a very large difference between electricity prices during peak and off-peak hours, especially for manufacturing and trading enterprises with large electricity demand in the evening.
Talking to Lao Dong Newspaper, Assoc. Prof. Dr. Ngo Tri Long - economic expert, Vietnam Financial Consultants Association - said that from an economic perspective, it is necessary to recognize this difference calmly and in its true nature.
“Electricity prices during peak hours are higher than during off-peak hours, not to'fine' electricity users, but to be an economic signal to reflect the actual cost of the system. Electricity is a special commodity: production and consumption are almost simultaneous, large-scale storage capacity is limited and storage costs are still high. When demand increases sharply in a short time frame, the cost of ensuring electricity supply also increases accordingly," Assoc. Prof. Dr. Ngo Tri Long said.
According to Assoc. Prof. Dr. Ngo Tri Long, the issue is not whether the peak price is high or not, but whether that difference is reasonable enough, transparent enough and strong enough to encourage behavior change or not.
If the peak price is too low, businesses do not have the motivation to shift loads. If the price is too high but there is a lack of roadmap, lack of guidance and lack of support tools, businesses are prone to falling into a passive position, especially small and medium-sized enterprises. Here, the hourly electricity price policy is only meaningful when it creates two simultaneous impacts: Electricity users during peak hours must pay more accurately the costs they cause to the system; People who are capable of shifting loads to low hours or normal hours must truly benefit. At that time, electricity prices are no longer just revenue, but become a tool to regulate energy consumption behavior," this expert emphasized.
Adjusting the time frame is the right direction, but not enough
Adjusting the electricity time frame is necessary, but this cannot be considered the only solution to reduce peak hour electricity pressure. If only changing the time frame and creating price differences without accompanying policies, efficiency will be limited.
Assoc. Prof. Dr. Ngo Tri Long analyzed that when solar power is strong during the day but decreases rapidly in the evening, and the load increases at the end of the day, the system will have a supply-demand gap in the evening. If there is no mechanism to shift load, store energy, adjust demand and use smart electricity, the electricity industry will have to continue to invest in additional peak sources, grid and backup only to meet some stressful hours of the day. Therefore, hourly electricity prices need to be placed in a broader policy package.
First of all, it is necessary to be more transparent about load data and system costs. Businesses need to know why 5:30 PM - 10:30 PM becomes a peak hour, how much higher the cost of mobilizing resources in this time frame is, and if load is shifted, what specific economic benefits will be.
Second, it is necessary to strongly develop a voluntary load adjustment program. Large customers who are capable of reducing or shifting load during peak hours need to participate in a clear incentive mechanism, instead of just passively paying high prices. If businesses help the system reduce peak load, they must benefit accordingly.
Third, it is necessary to support businesses to invest in energy-saving technology. Energy audits, smart measuring systems, load management software, inverters, high-performance equipment, self-use rooftop solar power and storage batteries should not be considered auxiliary costs, but investments to improve competitiveness.
Fourth, there needs to be a clear application roadmap. NSMO proposes to apply peak hours from 5:30 pm to 10:30 pm and low hours from 0:00 am to 6:00 am right from June. This is a proposal with reasons from summer pressure, but if implemented, there needs to be early communication, specific guidance and channels to answer businesses, avoiding creating a passive mentality in production and business.
