On April 1, the Government Office announced that Party Central Committee member and Deputy Prime Minister Bui Thanh Son had signed and issued Decision No. 07/2025/QD-TTg regulating the price framework for average retail electricity prices.
This Decision stipulates the price framework of the average retail electricity price as prescribed in Point b, Clause 3, Article 50 of the Electricity Law No. 61/2024/QH15. This Decision applies to agencies, organizations and individuals participating in electricity activities and using electricity.
According to the Decision, the price framework of the average retail electricity price (excluding value added tax) is as follows:
The average minimum retail price for electricity is VND 1,826.22/kWh;
The maximum average retail price of electricity is VND 2,444.09/kWh.
Previously, on March 28, the Government issued Decree No. 72/2025/ND-CP stipulating the mechanism and time for adjusting average retail electricity prices.
Decree No. 72/2025/ND-CP stipulates that every year, after Vietnam Electricity Group publicly announces the cost of electricity production and business in N-2, the average retail electricity price in N is considered and adjusted according to objective changes in input parameters of all stages and the allocation of other costs not included in electricity prices.
During the year, the average retail price of electricity is considered for adjustment based on updated power generation costs, power purchase costs from power plants providing ancillary services according to basic input parameters in the power generation stage and other costs not included in the electricity price.
The Decree clearly states: When the average retail price of electricity decreases by 1% or more compared to the current average retail price of electricity, the electricity price is allowed to be adjusted down accordingly.
When the average retail price of electricity increases by 2% or more compared to the current average retail price of electricity, the electricity price is allowed to be adjusted to increase.
The average retail price of electricity is calculated according to the provisions of Article 4 of this Decree. In case the average retail electricity price is calculated outside the price range, it can only be considered for adjustment within the price range prescribed by the Prime Minister. Vietnam Electricity Group is allowed to adjust the average retail price of electricity within the price range according to the mechanism prescribed in Articles 5 and 6 of this Decree.
In case the average retail price of electricity needs to be adjusted to be 10% or more higher than the current average retail price of electricity, the Ministry of Industry and Trade shall preside over and coordinate with relevant ministries and agencies to inspect, review and report to the Government for consideration and comments.
If necessary, the Ministry of Industry and Trade will coordinate with relevant ministries and agencies to report to the Steering Committee for Price Management before reporting to the Government.
The adjustment of average retail electricity prices must be done publicly and transparently.
The Decree stipulates that before the first 25 months of the second, third and fourth quarters, Vietnam Electricity Group determines the actual commercial electricity output of the previous quarter and the total commercial electricity output accumulated from the beginning of the year, and estimates the commercial electricity output for the remaining months of the year.
