What is the impact of the electricity price adjustment on households and enterprises?

Mr. Trần Việt Hòa – Director General of the Electricity Regulatory Authority of Vietnam (ERAV), Ministry of Industry and Trade, and Mr. Nguyễn Xuân Nam – Deputy General Director of Vietnam Electricity (EVN), co-chaired the discussion.

The event was also attended by representatives from the Ministry of Public Security, the Vietnam Consumer Protection Association, and various media agencies.

Mr. Nguyễn Quốc Dũng – Head of EVN’s Business Department – stated that, in order to minimize the impact on the economy and people’s lives, and in line with the directive from the Ministry of Industry and Trade, EVN issued Decision No. 1046/QĐ-EVN dated October 11, 2024, on adjusting the average retail electricity price. Accordingly, the new average retail price is 2,103.1159 VND/kWh (excluding VAT), effective from October 11, 2024. This adjustment reflects a 4.8% increase compared to the current average retail price.

During the information exchange, Mr. Nguyễn Quốc Dũng also announced Decision No. 2699/QĐ-BCT issued by the Ministry of Industry and Trade on October 11, 2024, which stipulates electricity retail prices for different consumer groups and for retail electricity units.

Ông Trần Việt Hòa – Cục trưởng Cục Điều tiết Điện lực phát biểu

Mr. Trần Việt Hòa – Director General of ERAV – delivered a speech:

He stated that the electricity price adjustment is based on political, legal, and practical foundations. The price increase is being implemented in phases, aiming to ensure long-term energy security.

Phó Tổng giám đốc EVN Nguyễn Xuân Nam trao đổi thông tin với các phóng viên, nhà báo

Deputy General Director of EVN, Mr. Nguyễn Xuân Nam, discussed the matter with journalists:

He emphasized that the current adjustment would have minimal impact on poor households and policy-beneficiary families. According to statistics, in 2023, there were 815,000 poor and social policy households nationwide receiving electricity subsidies under the Government’s policy. These households will continue to receive support according to Decision No. 28/2014/QĐ-TTg dated April 7, 2014, by the Prime Minister. Specifically, poor households receive a monthly subsidy equivalent to the cost of 30 kWh/month. Social policy households using no more than 50 kWh/month also receive the same level of support.

For business customers (around 547,000 customers), the average increase per customer is 247,000 VND/month.

For industrial customers (approximately 1.921 million customers nationwide), after the adjustment on October 11, 2024, the average increase is 499,000 VND/month per customer.

For administrative and public service units (691,000 customers in total), the average increase is 91,000 VND/month per customer.

Mr. Nguyễn Xuân Nam also shared that, in recent times, EVN has made efforts to cut costs and optimize expenses. Specifically, EVN and its subsidiaries have reduced 10–15% of regular operating costs and cut 20–50% of major repair costs. Despite facing many financial challenges, EVN has consistently strived to ensure sufficient electricity supply for the country’s socio-economic development.