Vietnam moves to time-of-use electricity pricing for households

The Ministry of Industry and Trade in Vietnam has proposed adding regulations for time‑of‑use (TOU) retail electricity pricing for residential customers, contingent on technical feasibility. The change would replace the long‑standing tiered tariff with hourly rates that reflect the varying cost of supplying electricity throughout the day.

Experts note that electricity costs are lower during off‑peak hours and when renewable generation is abundant, while the evening peak (approximately 17:30‑22:30) requires costly generation and stresses the grid. By varying prices for peak, normal and off‑peak periods, the policy aims to encourage households to shift consumption away from the evening peak, potentially reducing peak load by several thousand megawatts – an amount comparable to the output of large power plants. The reform is presented as essential for managing growing demand, integrating increasing renewable capacity, and supporting the objectives of the revised Electricity Plan VIII.

Analysts such as Nguyen Huy Hoach and Đào Nhật Đình warn that the shift may pose challenges for low‑income and rural households, who could see higher bills during peak times, and emphasize the need for careful implementation and public acceptance.