Accordingly, the average electricity price increases from 2,103.12 VND (0.08 USD) to 2,204.064 VND per kWh, excluding value added tax (VAT).
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The average retail electricity price increases by 4.8% starting from May 10. |
Since early 2023, electricity prices have been increased four times, 3%, 4.5% and two consecutive 4.8%.
On the same day, the Ministry of Industry and Trade issued Decision No 1279/QĐ-BCT regulating retail electricity pricing for different groups of customers and distribution units.
EVN said that the impact on low-income households and social policy beneficiaries is not significant.
The increase is aimed at offsetting rising input costs as Vietnam becomes increasingly dependent on high-cost power sources such as coal, liquefied natural gas and renewable energy, EVN said, adding that cost-effective hydropower is projected to make up for just 25% of the national electricity output by 2025.
In addition, volatile foreign exchange rates, especially rising US dollar, also drove generation costs.
Commercial electricity demand is anticipated to increase by 12.2% this year and the total system output expected to add 336 billion kWh, mainly from high-cost power sources such as imported coal and LNG.
Under the Prime Minister's Decision No.07/2025/QĐ-TTg on electricity price framework, the average retail electricity prices range between VNĐ1,826.22 and 2,444.09 VND per kWh.
There must be a minimum interval of three months between two electricity price increases.
EVN is allowed to decide on increases between 2% and 5%. EVN must get approval of the Ministry of Industry and Trade for increases between 5% and 10% and the Government’s for increases of 10% or higher.
Source: VNA