Time-of-use electricity pricing not yet applied to residential customers

Responding to media questions about the implementation of time-of-use electricity pricing for electricity consumers at the Ministry of Industry and Trade's regular press conference for the second quarter of 2026 on July 7, Mr. Bui Quoc Hung, Deputy Director General of the Electricity Authority under the Ministry of Industry and Trade, said that the power system previously had two peak-demand periods: one at midday and another in the evening.

However, with renewable energy—particularly solar power—accounting for an increasing share of the national electricity supply, electricity generation during midday has risen significantly, effectively flattening the midday peak demand. As a result, the peak pricing period has been adjusted from two peak periods to a single peak period in the evening.

At present, this pricing mechanism does not apply to residential electricity customers. However, according to the ministry's assessment, residential consumers with high electricity demand rank second only to industrial users in terms of power consumption. Therefore, in the draft amendment, the Ministry of Industry and Trade has been studying a plan to introduce time-of-use pricing for certain groups of residential customers who meet specific conditions, such as households with high electricity consumption, extensive use of electrical appliances, and the ability to shift part of their electricity use to off-peak hours to help reduce pressure on the power system during peak periods.

According to Mr. Hung, implementing such a mechanism would require all necessary technical infrastructure to be in place. Previously, most residential electricity meters were single-rate meters and were not capable of recording electricity consumption across multiple time periods. To introduce peak and off-peak pricing, these meters would need to be replaced with multi-rate meters capable of measuring electricity usage across three time periods. In addition, data transmission systems and other related technical infrastructure would also need to be upgraded to ensure accurate billing.

A representative of the Ministry of Industry and Trade emphasized that the proposal remains at the policy research and drafting stage. Before any implementation decision is made, the ministry will conduct a thorough assessment of its potential impact on society as well as on electricity consumers. It will also carefully consider technical infrastructure requirements and customers' ability to adapt in order to ensure the policy's practicality and feasibility.

Hai Phong News