Currently, retail electricity prices for residential customers are applied according to a tiered pricing system. The application of a time-of-use pricing mechanism is appropriate for developing countries like Vietnam. Furthermore, this encourages efficient and economical electricity use and contributes to social welfare by supporting low-income households to consume electricity at a level that meets their needs and budget.
The Ministry of Industry and Trade further explained that, according to the power system's load profile, residential electricity consumption accounts for the second largest share after industrial electricity consumption in the country's total electricity consumption and is unlikely to be able to adjust electricity usage behavior. In the coming period, as electricity demand increases and the development of supply sources faces many difficulties, it is necessary to study measures to help residential customers save electricity more effectively, and one of these measures is to research the application of the TOU (Total Unused) pricing system.
Regarding this proposal, many opinions suggest that, from a purely technical standpoint, this is a necessary solution to change consumer electricity usage behavior. Consumers can adjust their daily electricity usage time accordingly, thereby reducing consumption costs. For the system, this will help reduce the load during peak hours. However, applying a time-based electricity tariff for household consumption will initially create difficulties for consumers, especially laborers, workers, and people in rural areas, as evenings are when household electricity consumption is highest.
On the other hand, according to calculations, household electricity accounts for about 30-35% of the total national electricity consumption, so adjusting the pricing mechanism will significantly impact people. Therefore, the timeframe for application and the appropriate price level need to be carefully considered. And when applying time-based electricity pricing, a progressive pricing mechanism should not be applied simultaneously - this expert stated.
In reality, electricity consumption is not evenly distributed over time, but is usually concentrated during peak hours when demand is high. Furthermore, the meters currently used by residential customers are single-tariff meters, meaning they only collect readings and are not multi-functional meters. Therefore, implementing TOU pricing requires replacing the meter system and improving the infrastructure.
According to a representative from the Electricity Department of the Ministry of Industry and Trade, the purpose of issuing regulations and applying different price levels is to accurately reflect the costs of electricity production and business. During peak hours, the National Power System Dispatch Center has to mobilize high-cost power sources such as gas turbines, diesel-powered plants, or LNG power plants due to increased load. Meanwhile, during normal and off-peak hours, load demand decreases, allowing for the mobilization of lower-cost power sources. Furthermore, implementation would require time, including the installation of DC meters that use three pricing tiers (normal, peak, and off-peak hours) as well as a metering and analysis system.
It can be affirmed that the goal of load adjustment and efficient electricity use is necessary in the context of the ever-increasing electricity demand. However, for residential electricity users, the implementation of an hourly electricity pricing mechanism needs to be carefully studied and evaluated to simultaneously improve the efficiency of the power system's operation and minimize unwanted impacts on people's lives and macroeconomic stability.
Source: https://daibieunhandan.vn/han-che-nhung-tac-dong-khong-mong-muon-10422136.html
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