Proposal for a 5-tiered electricity pricing system for household consumption, eliminating tier 1 starting from 0.

The Ministry of Industry and Trade is proposing a 5-tiered electricity tariff for household consumption, in which the first tier (0-50kWh) is eliminated (currently in effect) and the price of the last tier is increased.

Đề xuất biểu giá điện sinh hoạt 5 bậc, bỏ bậc 1 từ 0 - 50kWh

Proposed 5-tiered electricity pricing for household consumption: Tier 1 (0-50kWh) is eliminated.

The content refers to the draft Decision of the Prime Minister regulating the structure of retail electricity tariffs.

The retail electricity pricing structure is a table listing the percentage (%) of the average retail electricity price used to calculate the specific retail electricity price for each group of electricity users.

Accordingly, the proposed five-tiered electricity pricing system for household consumption is as follows:

TT	target customer group	The rate relative to the average retail electricity price is adjusted according to authority. (%)
	Retail electricity prices for household use.
1	Retail price of electricity for household use
	Level 1: For kWh from 0 - 100	90%
	Level 2: For kWh from 101 - 200	108%
	Level 3: For kWh from 201 - 400	136%
	Level 4: For kWh from 401 - 700	162%
	Tier 5: For kWh from 701 and above	180%
2	Retail price of electricity for household use with prepaid card meters.	132%

The retail price of electricity for household use with prepaid meter cards is applied when technical conditions permit for groups of customers purchasing electricity temporarily and short-term for household purposes.

Electricity bill subsidy

Poor households, according to income criteria stipulated by the Prime Minister , will receive electricity subsidies for domestic use. The monthly subsidy will be equivalent to the cost of 30 kWh of electricity, calculated at the current retail price for residential electricity at tier 1.

Households eligible for social welfare policies according to criteria stipulated by the Prime Minister (excluding poor households eligible for electricity subsidies as stipulated in Clause 1, Article 4 of the draft) and whose monthly electricity consumption for domestic purposes does not exceed 50 kWh will receive an electricity subsidy equivalent to the cost of 30 kWh of electricity calculated at the current retail price for residential electricity at tier 1.

Funding for electricity subsidies for poor households and households eligible for social welfare policies is allocated from the state budget and other legitimate financial sources.

Compared to Decision 28/2014/QD-TTg, the draft new Decision only has 5 tiers, eliminating tier 1 (0 - 50kWh), while increasing prices in the remaining tiers, with tier 5 having the highest rate at 180% of the average retail electricity price adjusted according to authority.

TT	target customer group	Ratio to the average retail electricity price adjusted by authorized authority (%)
	Retail electricity prices for household use.
1	Retail price of electricity for household use
	Level 1: For kWh from 0 - 50	92%
	Step 2: For kWh from 51 - 100	95%
	Level 3: For kWh from 101 - 200	110%
	Step 4: For kWh from 201 - 300	138%
	Level 5: For kWh from 301 - 400	154%
	Level 6: For kWh from 401 and above	159%
2	Retail price of electricity for household use with prepaid card meters.	132%

The latest 6-tiered electricity tariff for household consumption in 2023 is currently in effect.

The latest 6-tiered electricity tariff for household consumption, effective from May 4, 2023, according to Decision 1062/QD-BCT, is as follows:

Retail price of electricity for household use	Electricity selling price (VND/kWh)
Level 1: For kWh from 0 - 50	1,728
Level 2: For kWh from 51 - 100	1,786
Level 3: For kWh from 101 - 200	2,074
Level 4: For kWh from 201 - 300	2,612
Level 5: For kWh from 301 - 400	2,919
Level 6: For kWh from 401 and above	3,015