Vietnam residential time-of-use electricity pricing proposal

The Vietnamese Ministry of Industry and Trade has proposed an amendment to the Electricity Law to introduce time-of-use (TOU) pricing for residential customers. This mechanism would replace the current tiered consumption system with rates categorized into peak, normal, and off-peak hours to regulate load and reduce pressure on the national power grid.

Under the proposed framework, peak hours are scheduled from 17:30 to 22:30, Monday through Saturday, while off-peak hours are set from 00:00 to 06:00 daily. Implementation would require technical upgrades, such as smart meters, to facilitate the shift in consumption.

In addition to the TOU proposal, officials are considering a transition from a six-tier to a five-tier progressive pricing structure. Officials estimate that approximately 94% of households could see a reduction in their electricity bills under this five-tier model, which would expand the consumption intervals between tiers. While this restructuring aims to manage costs without changing the average retail electricity price, the specific implementation roadmap remains under discussion.

The proposals have met with public concern. Critics and experts note that residential activities like cooking, lighting, and air conditioning use often coincide with peak hours, making it difficult for families—particularly low-income households—to adjust their schedules to avoid higher costs.