More than 21% of customers buy electricity below the average price after adjustment.

Vietnam Electricity Group has issued Decision No. 1416/QD-EVN on adjusting the average retail electricity price. Accordingly, from November 9, 2023, the average retail electricity price will be VND 2,006.79/kWh (excluding VAT), an increase of 4.5% compared to the previous average retail electricity price. In 21 provinces and cities in the Southern region, this adjustment also has different impacts on each group of electricity customers.

In this area, based on statistics of the Southern Power Corporation (EVNSPC) on electricity customers as of October 2023, the increase in the average retail electricity price to VND 2,006.79/kWh has different impacts on each group of electricity customers.

The new electricity price adjustment has different impacts on each customer group.

Specifically, for the group of customers using electricity for domestic purposes, each month, at a consumption level of 50 kWh, the average additional electricity bill per household is 3,900 VND/household. According to statistics, the number of households using electricity up to 50 kWh is 719,636 households, accounting for 8.67% of the total number of households using electricity for domestic purposes.

For households consuming 100 kWh/month, the average increase in electricity bill is 7,900 VND/household. According to statistics, the number of households using electricity from 51kWh to 100kWh is more than 1 million, accounting for 12.56% of the total number of households using electricity for daily life.

Next, the average additional electricity bill for each household consuming up to 200 kWh/month is 17,200 VND/household. According to statistics, the number of households using electricity from 101 kWh to 200 kWh is more than 3 million households, accounting for 36.20% of the total number of households using electricity for daily life. This is the customer group that accounts for the largest proportion of the group using electricity for daily life purposes.

Similarly, the average monthly electricity bill increase for each household consuming up to 300 kWh (1,714,577 households); 400 kWh (833,006 households) and 500 kWh (985,529 households) is VND 28,900; VND 42,000 and VND 55,600, respectively.

This electricity price adjustment ensures that poor households and policy families are not significantly affected.

According to calculations, the cost of electricity production in 2023 will remain high, and the price of electricity in 2023 will continue to be higher than in 2022. The cost of electricity production and business in 2023 announced by the Ministry of Industry and Trade is estimated at about 2,098 VND/kWh. Statistics show that, with the number of customers using electricity in the area managed by EVNSPC up to now, there are about 1.8 million households buying electricity below the average electricity price after adjustment.

Regarding the average increase for other customer groups, there are also different changes. Specifically, for the non-residential customer group, the average increase is as follows: the service business customer group, customers pay an additional 230,000 VND/month; the production group, after the price change, customers will pay an additional 432,000 VND/month. Currently, the total number of customers supplied by EVNSPC is 9,307,078 customers.

Of which, 8,355,116 customers use electricity for management - consumption - residential purposes; 487,383 customers use electricity for agricultural - forestry - fishery purposes; 144,695 customers use electricity for industry and construction purposes; 154,661 customers use electricity for business and service purposes; 165,223 customers use electricity for other purposes.

According to Vietnam Electricity Group (EVN), this electricity price adjustment will ensure that poor households and policy families are not significantly affected.

According to statistics, in 2022, the whole country will have more than 1.27 million poor households and social policy households receiving electricity support according to Decision No. 28/2014/QD-TTg dated April 7, 2014 of the Prime Minister . In particular, poor households are supported with a monthly support level equivalent to the amount of electricity used by 30kWh/household/month. Social policy households with electricity usage of no more than 50kWh/month are supported with a monthly support level equivalent to the amount of electricity used by 30kWh/household/month.

The representative of the Vietnam Consumer Protection Association said that for customers, adjusting electricity prices means that they have to increase their monthly expenses. However, in this electricity price increase, the social security responsibility is still carefully calculated by the Electricity industry when the increase is still aimed at protecting and supporting low-income people.

With nearly 1.8 million customers (accounting for 21%) out of more than 8.3 million customers using electricity for daily life in 21 southern provinces still buying electricity below the average electricity price after adjustment, it shows that the Electricity industry is still making efforts to accompany and support customers using electricity.

According to EVNSPC, in the context of fuel prices constantly fluctuating in recent years, operating a diesel generator system with continuously increasing prices, EVNSPC has had to compensate for a loss of nearly 500 billion VND each year to ensure electricity supply for Phu Quy island district (Binh Thuan), Con Dao district (Ba Ria-Vung Tau), Truong Sa island district (Khanh Hoa) and DK1 platforms (Ba Ria-Vung Tau).
When receiving and managing direct electricity sales in island districts and island communes, the Electricity sector must compensate for losses because the cost of electricity production is about 7,000 VND/kWh. In some places, it is up to 72,552 VND/kWh (such as in Truong Sa island district).

Bao Anh

Source