Experimenting with a two-component retail electricity pricing system: Towards sustainable energy development.

Deputy Director of Tay Ninh Power Company, Nguyen Ngoc Tuan, answered some customer questions at the Customer Conference on the pilot implementation of two-component retail electricity pricing.

Rapid deployment

According to information from Tay Ninh Power Company, the transition to a two-component electricity pricing mechanism is an inevitable trend in the modernization process of Vietnam's electricity market. This pricing method helps both buyers and sellers use electricity more efficiently, encourages saving, and rationally allocates load over time.

The objective of the pilot phase is to collect data on power fluctuations, changes in electricity usage behavior across time slots, and to receive feedback from businesses to refine the pricing plan before actual operation.

Currently, the two-tiered retail electricity pricing mechanism is being gradually piloted by the electricity sector based on the government's new legal framework. The Ministry of Industry and Trade has assigned Vietnam Electricity Group (EVN) to develop and implement the two-tiered electricity pricing mechanism for eligible customers.

Tay Ninh Power Company, in coordination with provincial and local departments and agencies, organized customer conferences to disseminate information and conduct pilot implementations of the two-tiered retail electricity pricing system, in accordance with directives from higher authorities.

According to a representative of Dinh Khue One-Member Limited Liability Company (Tan Chau commune), the State's policy on applying a two-tiered electricity pricing system creates balance and transparency. However, the company is concerned about its operations, which are seasonal, and whether a two-tiered pricing system would be truly suitable for its seasonal industries. The company hopes that the Electricity sector will provide specific guidance and solutions for implementing a two-tiered retail electricity pricing system that is both substantive and practical.

Similarly, a representative from Outspan Vietnam Coffee Co., Ltd. (Ben Luc commune) stated that after the implementation of the pilot program for two-component retail electricity pricing, the company has implemented solutions to control and adjust the Pmax value (maximum power consumption). However, in cases where Pmax is generated during power restoration after sudden power outages, the electricity sector must exclude it to ensure fairness in calculating electricity bills based on the Pmax value. The company requested that the electricity sector announce the official implementation date so that businesses can adjust their budgets, proactively manage their operations, and avoid impacting product costs.

At the 2025 Customer Conference, representatives from manufacturing and trading companies raised concerns and questions, which were addressed and clarified by the electricity sector and relevant authorities. This helped businesses understand and feel confident in their electricity usage for production and business operations.

For sustainable energy development

According to Nguyen Ngoc Tuan, Deputy Director of Tay Ninh Power Company, from October 2025, the Ministry of Industry and Trade will allow EVN to conduct a pilot program on paper for a two-component electricity pricing mechanism for manufacturing customers using 200,000 kWh/month or more and meeting the metering infrastructure requirements. Currently, about 7,000 customers nationwide are participating in the pilot program, with 650 metering points belonging to 508 businesses in the province alone. Implementing a two-component electricity pricing mechanism is an advanced pricing system that has been adopted by many developed countries, separating electricity bills into two distinct parts.

In this context, the capacity price (VND/kW) is a fixed fee calculated based on the actual peak power consumption during the month or the peak power consumption registered by the customer; during the trial period, the peak power consumption is taken from the actual consumption during the month, reflecting the fixed costs of investing in electricity infrastructure and operating the system to ensure electricity supply.

Regarding electricity prices (VND/kWh), this is a variable fee calculated on the total electricity (kWh) consumed by the customer during the period, reflecting the variable costs based on electricity production and transmission activities.

“The new pricing mechanism sends a clear message, encouraging customers to proactively adjust their electricity usage habits. If customers consume the same amount but optimize their maximum power consumption, their electricity costs will be reduced. Analysis shows that by extending the usage time and reducing Pmax, the total electricity bill under the two-component pricing scheme may differ only slightly from the current bill, creating favorable conditions for large businesses to effectively manage energy costs.”

During the pilot implementation of the two-tiered retail electricity pricing system, the electricity sector fully absorbed feedback, and the company collaborated in introducing energy storage solutions, contributing to optimizing electricity usage efficiency and supporting businesses in adapting to the new electricity pricing mechanism. In the future, based on the results of the monthly two-tiered electricity pricing trial calculations sent to our valued customers, if there is an increase in electricity bills compared to the current calculation method, we kindly request that customers consider rearranging their production lines appropriately so that we can compare the effectiveness of the implementation in the following month.

During the trial period, the electricity sector will gather customer feedback to report to the Ministry of Industry and Trade for further refinement of the two-component retail electricity pricing scheme before its official implementation. Tay Ninh Power Company is committed to focusing resources on effectively implementing the trial of the two-component retail electricity pricing scheme, ensuring adherence to the set roadmap and objectives, aiming for electricity transparency and sustainable energy development,” said Nguyen Ngoc Tuan, Deputy Director of Tay Ninh Power Company.

At the customer conference, Tay Ninh Power Company conducted a communication campaign on the pilot program for two-component retail electricity pricing to help customers better understand the applicable legal basis, how to calculate bills based on two-component pricing (power and energy), and how to monitor peak power during production, etc. The pilot implementation of two-component electricity pricing in the province attracted significant customer interest, with 368 out of 508 businesses (72.44%) attending (147 customers in Duc Hoa cluster; 145 customers in Ben Luc cluster; and 76 customers in Tan Ninh cluster). The power sector recorded 15 customer opinions at the conference, fully responding to 10 of them; and recorded 5 opinions for reporting to higher authorities and providing feedback to customers.

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