Electricity price hike sparks new pressures on households and businesses

ĐBP - The Vietnam Electricity Group (EVN) officially raised the average retail electricity price from VND 2,103.11 to 2,204.07 per kWh (excluding VAT) on May 10, a 4.8% increase. The new price adjustment has sparked fresh concerns among residents and businesses across Điện Biên province.

Just days after the hike, households, business owners, and production facilities began recalculating their monthly electricity expenses, bracing for the added financial burden.

As electricity prices rise, Nguyễn Thị Ngọc’s family must adjust their household spending, particularly electricity usage.

Nguyễn Thị Ngọc, a resident of hamlet 18 in Thanh Xương commune (Điện Biên district), learned that starting May 10, EVN would implement a new, increased electricity pricing scheme. She shared: “My family has five members, and we do not use a lot of electricity, just a fan, refrigerator, and television. Our monthly electricity bill is already over VND 400,000. With my retirement pension at VND 2.5 million per month and electricity prices now going up, our bill will likely rise significantly. Each month, I have many essential expenses such as electricity, water, food, and school costs for the grandchildren. On a modest pension, it’s hard to make ends meet. Summer is here, the heat is intense, and we are using more electricity. We will have to cut back on other expenses to stay within budget.”

For local businesses, the rising electricity cost is compounding existing pressures from international markets, export barriers, and foreign tax policies.

Production facilities are rebalancing input costs to keep product prices stable.

Giang Văn Long, owner of the Minh Long rice milling facility in Thanh An commune (Điện Biên district), shared: “The first impact of the electricity price hike is a rise in production costs, which cuts into our profits. Electricity makes up a significant portion of product pricing, and we don’t want to raise the price of our goods, as that would directly affect the supply chain and our customers. My facility specializes in buying rice paddy from local farmers, processing it into commercial rice, and distributing it to other provinces. Our machines run all day, so electricity consumption is high. On average, we spend around VND 20 million per month on electricity. To keep rice prices stable, producers like us are forced to absorb the costs and accept lower profit margins”.

A representative from the Accounting Division of the Điện Biên trading and import-export JSC - Tâm Đỏ Supermarket stated: “The company consumes around 11,000kWh of electricity each month, costing nearly VND 40 million. With the current electricity rates, our power expenses are expected to rise in the coming months. The supermarket relies heavily on electricity to operate refrigerators, air conditioners, and lighting systems to preserve fresh produce, beer, and beverages. During the hot season, it’s difficult to reduce electricity use. In fact, it often increases. Adjusting electricity prices is necessary if current rates are not sufficient to ensure reinvestment in the power sector. As a business, we do not oppose the price increase, provided it comes with a long-term commitment to service quality, ensuring a stable, reliable supply that supports the economy’s growth needs”.

The electricity price hike also directly affects consumers.

Bùi Quốc Trung, Deputy Director of Điện Biên Phủ power company, outlined how the increase will affect various households. According to EVN’s calculations, households using under 50kWh/month will pay VND 4,550 more per month, 51-100kWh: up VND 9,250, 101-200kWh: up VND 20,150, 201-300kWh: up VND 33,950, 301-400kWh: up VND 49,250, over 400kWh: up VND 65,050/month.

For poor households and policy-beneficiary families, monthly electricity subsidies are provided equivalent to 30kWh per household. Social policy households that consume no more than 50kWh per month are also eligible for support. Under the new pricing scheme, each poor household will receive approximately VND 59,520 per month in electricity assistance (excluding VAT). Overall, this electricity price adjustment is designed to ensure that the impact on poor and policy-beneficiary households remains minimal.

Employees from the Điện Biên Phủ Power Company record meter readings for the May 2025 price adjustment.

Trung emphasized that the increase follows Decision No.1279/QD-BCT (dated May 9, 2025) by the Ministry of industry and trade, which sets the average electricity retail price at VND 2,204.07/kWh (excluding VAT), reflecting a 4.8% increase over the previous rate.

“The electricity price increase is necessary to reflect rising input and operational costs in the power sector”, emphasized Trung. “Based on its operating plans, the EVN has regularly reviewed, calculated, and reported to relevant authorities to propose appropriate pricing adjustments. These adjustments are carefully considered, taking into account input costs, market fluctuations, and the payment capacity of both households and businesses. At the same time, businesses need to recalculate and rebalance their input costs, adopt strict energy-saving measures, and optimize production and operations. Alongside the price hike, the EVN also advises customers to use electricity safely, efficiently, and economically to ensure a stable and continuous power supply that best meets demand.

Quang Hùng
Comment

You have 500/500 characters left

Please enter 5 or more characters!!!

Recent news

  • 'STEAM Hub Technology Library - The gateway to modern knowledge

    STEAM Hub Technology Library - The gateway to modern knowledge

    SOCIAL AFFAIRS -
    ĐBP - The STEAM Hub Technology Library at Điện Biên provincial Ethnic Boarding School is the first of its kind in the province, now offering a modern, vibrant learning environment. With strategically placed book shelves, diverse assembly kits, a robotics experience area, and a spacious, friendly STEM mini-lab, the space fosters a dynamic learning experience for students.
  • 'Science and technology drives circular agriculture forward

    Science and technology drives circular agriculture forward

    BUSINESS -
    ĐBP - Circular economy in agriculture is a closed-loop production model where waste is not discarded but reused as input material, helping reduce pollution, protect the environment, and improve public health. Điện Biên province has identified the development of a circular agricultural economy as a core pillar in its sustainable farming strategy, closely tied to science, technology, and innovation.
  • 'Điện Biên paves the way for investors

    Điện Biên paves the way for investors

    BUSINESS -
    ĐBP - With vast tracts of land, an abundant labor force, and a strategic location in Vietnam’s Northwest region, Điện Biên province is steadily asserting itself as an attractive destination for investors. In recent years, the provincial government has rolled out a comprehensive set of measures aimed at improving the investment climate, creating favorable conditions for private sector development, driving economic growth, improving living standards, and unlocking the province’s inherent strengths.
  • 'Streamlining local government: Pusheing forward with commune mergers

    Streamlining local government: Pusheing forward with commune mergers

    NEWS - POLITICS -
    ĐBP - The Government’s Steering Committee for reorganization of local administrative units and implementation of the two-tier local government model has outlined a staffing framework for newly merged commune-level units, targeting approximately 32 personnel per commune. This includes three specialized departments, each staffed with around five civil servants. The top priority is ensuring effective administration without irrational territorial or functional overlaps, thus earning public support.
  • 'Chiềng Sinh improves administrative reform to serve the people

    Chiềng Sinh improves administrative reform to serve the people

    NEWS - POLITICS -
    ĐBP - In the effort to enhance social and economic development, the commune of Chiềng Sinh (Tuần Giáo district, Điện Biên province) has been actively implementing administrative reforms, with an emphasis on serving the needs of citizens and businesses efficiently and promptly. The commune has succeeded in achieving a 99% rate of resolving administrative procedures ahead of the deadline, with increasing satisfaction rates from the public.
  • 'Acting together for a smoke-free environment

    Acting together for a smoke-free environment

    SOCIAL AFFAIRS -
    ĐBP - In response to World No Tobacco Day on May 31 and the National Week on No Tobacco (May 25-31), Điện Biên province has actively implemented many practical activities to raise public awareness about the harmful effects of tobacco.
  • 'Accelerating implementation of key projects

    Accelerating implementation of key projects

    BUSINESS -
    ĐBP - In line with the policy of streamlining administrative bodies, improving the efficiency and effectiveness of operations, and eliminating the district-level government structure, localities in Điện Biên province are speeding up the progress of major projects. Many of these projects aim to be completed before the district-level government structure is removed, ensuring the timely completion of public investment projects and laying a solid foundation for future development.
  • 'Living on the edge: Pa Xa Xá sleeps in fear of landslides

    Living on the edge: Pa Xa Xá sleeps in fear of landslides

    SOCIAL AFFAIRS -
    ĐBP - “When the rainy season hits, I don’t dare turn off the lights at night. I’m too afraid of landslides. Just the sound of trees rustling behind the house is enough to send the whole family running outside”, held Quàng Thị Săn, a resident of Pa Xa Xá village, Pa Thơm commune, Điện Biên district, Điện Biên province.
  • 'Protecting rights, improving lives of trade union members: Điện Biên’s Labor Federation in action

    Protecting rights, improving lives of trade union members: Điện Biên’s Labor Federation in action

    SOCIAL AFFAIRS -
    ĐBP - Fulfilling its role as the representative body protecting the legitimate rights and interests of trade union members and workers, the Labor Federation of Điện Biên province has recently rolled out a series of practical initiatives. These include supporting welfare policies, visiting and presenting gifts to workers in need, and funding the construction of homes for union members. Such efforts aim to help workers overcome difficulties and focus on their jobs, ultimately improving their standard of living.
  • 'Vibrant patriotic emulation movements

    Vibrant patriotic emulation movements

    SOCIAL AFFAIRS -
    ĐBP - Amid the nationwide focus on the upcoming Party congresses at all levels and the 14th National Congress, the enthusiasm for patriotic emulation has spread throughout the province. In the border district of Nậm Pồ, Điện Biên province, all government agencies, units, and localities are filled with a spirited atmosphere of emulation, marked by action-oriented slogans, practical deeds, and the highest political determination.
  • 'Concerns about keeping children safe this summer

    Concerns about keeping children safe this summer

    SOCIAL AFFAIRS -
    ĐBP - As the summer season arrives, there has been a growing concern over the increasing number of accidents involving children, affecting their health and safety. It is crucial for all levels of government, organizations, and families to focus on accident prevention to ensure that children have a safe and productive summer break.