Vietnam proposes time-of-use electricity pricing for households

The Ministry of Industry and Trade is proposing an amendment to the Electricity Law that would allow for time-of-use (TOU) electricity pricing for residential customers, provided technical conditions are met. Currently, households in Vietnam primarily use a tiered pricing system based on total consumption. Under the proposed TOU mechanism, electricity costs would vary depending on whether the power is used during peak, normal, or off-peak hours.

The primary objective of this policy is to regulate load and reduce pressure on the national power system during peak periods by encouraging users to shift consumption to off-peak times. While experts suggest this could help stabilize the grid, concerns have been raised regarding the impact on households. Unlike businesses that can adjust production schedules, residential needs—such as cooking, lighting, and studying—are often tied to specific times of day, making it difficult for families to avoid peak-hour rates.

If implemented, the policy would require updated infrastructure, such as smart meters, and would necessitate a shift in consumer behavior to manage household expenses effectively.