Electricity prices in Vietnam increase by 4.8 per cent amid soaring generation costs
HANOI: Vietnam Electricity (EVN) on Friday (May 9) announced that the average retail electricity price will be increased by 4.8 per cent starting from Saturday, marking the fourth hike since early 2023.
Accordingly, the average electricity price increases from VNĐ2,103.12 to VNĐ2,204.064 per kWh, excluding value added tax (VAT).
Since early 2023, electricity prices have been increased four times, 3 per cent, 4.5 per cent and two consecutive 4.8 per cent.
On the same day, the Ministry of Industry and Trade issued Decision No 1279/QD-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 Việt Nam 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 per cent 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 per cent 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/QD-TTg on electricity price framework, the average retail electricity prices range between VNĐ1,826.22 and VNĐ2,444.09 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 per cent and 5 per cent. EVN must get approval of the Ministry of Industry and Trade for increases between 5 per cent and 10 per cent and the Government's for increases of 10 per cent or higher. — Vietnam News/ANN
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