Business

Vietnam cuts average retail electricity price by 2% from November 1

This marks the first time the average electricity price has been adjusted downward in 20 years, excluding the five instances where electricity charges or prices were reduced to support individuals and businesses affected by the devastating COVID-19 pandemic.

EVN workers on duty in Pho Hien ward of Hung Yen province. (Photo: VNA)
EVN workers on duty in Pho Hien ward of Hung Yen province. (Photo: VNA)

Hanoi (VNA) - Vietnam is cutting its average retail electricity price by 2% to 2,159.90 VND per kWh, excluding value added tax, from November 1, in a move aimed at easing energy costs for households and businesses and supporting economic growth, Vietnam Electricity (EVN) said on October 31.

This marks the first time the average electricity price has been adjusted downward in 20 years, excluding the five instances where electricity charges or prices were reduced to support individuals and businesses affected by the devastating COVID-19 pandemic.

The Ministry of Industry and Trade has also issued Decision No. 2892/QD-BCT on the same day, setting retail electricity tariffs for different consumer groups and electricity retailers, which will also be effective from November 1.

EVN said it had reviewed its costs and stepped up cost-saving measures to cut electricity prices in line with the Government’s requests to lower costs for production and business and support economic growth and safeguard social welfare.

The move follows a meeting chaired by Deputy Prime Minister Nguyen Van Thang on October 27 on scenarios for managing petrol and electricity prices.

Between 2020 and 2021, EVN implemented five rounds of electricity bill reductions and support measures to help customers cope with difficulties during the COVID-19 pandemic, providing total support of nearly 17 trillion VND.

Since May 2023, average retail electricity prices have risen four times. The first increase was 3% in May 2023, taking the price to 1,920.37 VND per kWh, followed by a 4.5% increase to 2,006.79 VND per kWh in November of the same year.

Prices rose a further 4.8% to 2,103.12 VND per kWh in October 2024 and another 4.8% to 2,204.07 VND per kWh in May 2025.

EVN recently reported that its total electricity production and business costs in 2025 reached 601.68 trillion VND, equivalent to an average production cost of 2,092.70 VND per kWh, 111.37 VND per kWh lower than the average retail price before today’s cut.

However, EVN said more than 17.5 trillion VND in accumulated costs had yet to be included in electricity production and business costs by the end of 2025, mainly due to exchange-rate differences./.

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