Electricity price increase of 4.8%: Preventing the “domino effect” on the prices of goods and services

Consumers choose to buy electrical appliances with energy-saving features to reduce electricity costs when electricity prices increase. Photo: K. Lieu

This is the first electricity price adjustment in 2025 and the second increase in the past year. With concerns that rising electricity prices will lead to rising commodity prices, many people have suggested that there should be a mechanism to monitor and stabilize the market.

Worry about consumer prices, goods and services increase accordingly

According to calculations by Vietnam Electricity Group (EVN), with the average retail electricity price adjusted to increase from May 10, for household electricity customers currently divided into 6 levels, the adjustment of the average retail electricity price is calculated by EVN to increase the electricity bill to be paid by 4,550 VND to more than 65,000 VND.

Specifically, for households using less than 50kWh of electricity, the electricity bill will increase by about 4,550 VND/household/month. From 51-100kWh, the electricity bill will increase by 9,250 VND/household/month. From 101-200kWh, the increase is 20,150 VND/household/month.

Customers using from 201-300kWh must pay an additional 33,950 VND/household/month; using electricity from
301-400kWh, the additional cost is 49,250 VND/household/month; from 400kWh or more, the electricity bill increase is about 65,050 VND/household/month.

Ms. Tran Thi Phuong, a worker in Amata Industrial Park (residing in Long Binh Ward, Bien Hoa City), suggested: “I hope that when electricity prices increase, the quality will also increase, there will not be sudden or too many power outages that affect people's lives. Authorities need to increase management measures to prevent consumer prices from "inflating" when electricity prices increase.”

Poor households and social policy households will receive monthly electricity support equivalent to the amount of electricity used by 30kWh/household/month. For social policy households with electricity usage of no more than 50kWh/month, the support level is also equivalent to the amount of electricity used by 30kWh/household/month. The support level for poor households and social policy households is 56,790 VND/household/month. This policy aims to reduce the burden of electricity costs for poor households and social policy households, helping to ensure social security and implement the Government 's policy on supporting disadvantaged groups.

Immediately after the information was announced, many consumers expressed concern that the increase in electricity prices could significantly increase household living expenses, especially in the context of hot weather causing high demand for electricity.

Ms. Phan Thi Quynh Hoa (living in Thong Nhat ward, Bien Hoa city) said: “My family has paid nearly 2 million VND for electricity every month. In the past 2 months, the weather has been hot, electrical equipment has been operating more, so the bill will probably increase even more. Not to mention, after each increase in electricity prices, other consumer expenses often increase as well. Meanwhile, the income has not increased, forcing us to calculate and tighten our spending.”

Not only the people, but also small businesses are concerned. Ms. Tran Thi Phuong, owner of a breakfast shop on Vo Thi Sau Street (Bien Hoa City), shared: "When electricity prices increase, refrigerators, fans, and lights all cost more. Not to mention, raw material suppliers may increase prices because they also have to pay higher electricity costs."

Stabilize general price level

To minimize the impact of rising electricity prices and reduce the burden of spending, many people are trying to find ways to save electricity. Ms. Nguyen Thanh Hien (living in Trang Dai ward, Bien Hoa city) said that her family has replaced electrical equipment such as old lighting and air conditioners with energy-saving devices. "I always remind family members to be aware of using electricity economically, turning off unnecessary electrical equipment, using natural light instead of turning on lights, hanging clothes instead of putting them in the dryer, or washing dishes by hand instead of using a dishwasher which consumes a lot of electricity..." - Ms. Hien shared.

Electricity is an essential input in many manufacturing and service industries, from food, transportation to textiles... so adjusting electricity prices will affect the production costs of businesses. Therefore, if businesses cannot balance, they will be forced to increase product and service prices to compensate for costs.

Mr. Le Minh Tri, owner of a garment processing facility in Hung Loc commune (Thong Nhat district), shared that the continuous increase in electricity prices over the past two years has forced the facility to find ways to reduce electricity costs and save as much as possible on other expenses to maintain production and pay workers. “In addition to rearranging working hours to reduce electricity use during peak hours, we have had to calculate other options to save electricity such as: opening windows, reducing fans, ventilation systems, installing solar energy systems…” - Mr. Tri said.

According to Mr. Tri, to prevent the “Domino effect”, that is, the prices of goods and services increase simultaneously after each increase in electricity prices, there needs to be a coordinated effort from the State, businesses and consumers. In addition to promoting the use of electricity savings in households and businesses, authorities need to closely monitor price fluctuations in the market, while strictly handling individuals and businesses that take advantage of electricity price increases to unreasonably raise prices. There needs to be policies to support businesses in converting, reducing costs, encouraging investment in electricity-saving technology, etc., to contribute to stabilizing the general price level.

Kim Lieu

Source: https://baodongnai.com.vn/ban-doc/202505/gia-dien-tang-48-ngan-ngua-hieu-ung-domino-len-gia-hang-hoa-dich-vu-8f868d2/