EVN Proposes Extending Evening Peak Electricity Pricing Hours, Eliminating Daytime Peaks

Vietnam Electricity (EVN) has put forth a significant proposal to restructure electricity pricing by extending peak hours into the evening and eliminating daytime peak charges. This initiative, detailed in feedback on a draft decision from the Ministry of Industry and Trade, seeks to create clearer price signals for consumers, thereby encouraging a shift in electricity consumption towards off-peak periods.

The current system, which involves approximately 1.25 million electricity meters, faces challenges with flexibility. EVN points out that a large portion of these meters are configured for fixed time-of-use pricing, meaning any change to the peak, off-peak, and normal hour framework would necessitate a complex and time-consuming reconfiguration process, estimated at 90 days. The proposed seasonal adjustments, slated for every two years, could lead to substantial workloads, data synchronization issues, and a heightened risk of billing errors and customer complaints.

To mitigate these complexities, EVN recommends focusing on a single, consistent framework for peak, off-peak, and normal hours, rather than introducing seasonal variations. Their proposal designates normal hours from 6 AM to 5:30 PM and 10:30 PM to midnight on weekdays, and all day Sunday. Peak hours would be from 5:30 PM to 10:30 PM on weekdays, with no peak hours on Sundays. Off-peak hours would apply from midnight to 6 AM every day. This revised structure, particularly the extension of peak hours to 10:30 PM, aims to better align electricity usage patterns with grid capacity and promote more efficient energy consumption across Vietnam.

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