Vietnam is undertaking a significant reform of its national electricity pricing structure, transitioning to a mandatory two-part electricity tariff for major consumers. Proposed by the Ministry of Industry and Trade (MOIT), this initiative aligns with the national energy security strategy.
The new system, which follows international best practices, replaces the current single-part tariff that calculates costs solely based on consumption. The existing model fails to reflect true costs such as infrastructure maintenance, equipment depreciation, and transmission expenses.
Structure and Benefits
The proposed two-part tariff consists of two components:
- Fixed capacity charge – based on registered capacity, payable even if the consumer does not fully utilise it. This ensures that system costs (e.g., depreciation of transmission lines and substations) are reflected transparently and not unfairly shifted onto the broader grid or all users.
- Variable consumption charge – based on the actual amount of electricity consumed.
This reform is designed to encourage more efficient energy use, reduce the pressure for new capacity investments, and promote fairness among industrial and commercial users. Energy experts highlight that the mechanism is also essential for enabling Direct Power Purchase Agreements (DPPA) and establishing a competitive electricity market in Vietnam.
Implementation Plan
The reform will be phased in, beginning with a trial in early 2026 targeting large electricity users—particularly those engaged in DPPA contracts with renewable energy producers. EVN (Vietnam Electricity) has recommended piloting with customers consuming at least 200,000 kilowatt-hours per month and connected at 22 kilovolts or higher, covering approximately 7,000 businesses. Household customers will initially be excluded due to the need for investment in new metering systems.
Phased rollout:
- Phase 1 (Current – Mid-2026): Pilot testing and data collection with major users.
- Phase 2 (Jan – Jun 2026): Parallel, non-chargeable invoices issued to participants for familiarisation.
- Phase 3 (Jul 2026 – Jul 2027): One year of real-world testing, including monitoring and adjustments, followed by the introduction of peak and off-peak pricing.
- Phase 4 (From Aug 2027): Nationwide expansion, depending on evaluation results.
Implications for Thai Businesses
Thai companies operating in energy-intensive sectors such as automotive and electronics should prepare for potential higher costs in the short term, as the new tariff structure reflects true system expenses.
Adaptation strategies include:
- Adopting energy management technologies and improving factory efficiency.
- Reviewing and adjusting commercial contracts to account for capacity charges.
- Partnering with renewable energy producers in Vietnam to mitigate risks and benefit from incentives for clean energy use.
The reform is expected to strengthen transparency and stability in Vietnam’s renewable energy sector, creating opportunities for Thai energy and digital solutions providers to expand their presence in the market.
