On September 28, a draft law amending the Electricity Law was discussed at the National Assembly Permanent Deputies' Conference in Hanoi. Deputies demanded a more transparent pricing mechanism, strict cost controls, fair risk sharing, and enhanced consumer protection.
What exactly does the bill propose?
The project introduces several fundamentally new elements of regulation of the electric power industry:
- Retail tariffs for households by time of day - peak, semi-peak and regular hours, but only where the technical infrastructure allows it;
- phasing out cross-subsidies between different consumer groups—that is, the practice of one category of customers actually paying for another;
- expansion of the mechanism for direct purchase of electricity by large consumers - now retail electricity sellers, and not just large enterprises themselves, will be able to participate in it;
- the right of the Minister of Industry and Trade to approve wholesale price frameworks, including transitional provisions for tariffs for the tourist residential sector - a separate rule specifically for hotels and guesthouses;
- clear rules regarding when an electricity supplier has the right to suspend or reduce the supply of energy to a customer who has not paid their contractual bills.
Deputies warn: be careful with the balance of interests
Hai Phong MP Nguyen Thi Viet Nga supported the need for amendments but emphasized that any price change must be carefully weighed against the interests of consumers and the state. She stated that the law must clearly define which costs are justified and subject to reimbursement to investors, which risks should be borne by investors, and when costs can be passed on to households and businesses.
In its preliminary review of the bill, the National Assembly's Committee on Science, Technology, and Environment expressed more pressing concerns: the wording regarding a "full refund" of costs and capital investments to investors with a "reasonable profit" could be interpreted as a state guarantee of financial returns for investors. The committee insists that investment and business risks should not be entirely transferred to the state, electricity buyers, or end consumers.
What this means in practice—and what it doesn't mean yet
It's important to understand: the law has not yet been passed. The National Assembly plans to consider it during its second session—meaning this is a bill in the discussion stage, not a finalized regulation. Peak and off-peak tariffs for apartments and houses are a proposal contingent on the availability of "technical conditions" (i.e., smart meters and the associated infrastructure), not a guaranteed change with a specific date.
Nevertheless, the direction is clear and aligns with the course set by Politburo Resolution No. 70: a gradual phase-out of cross-subsidies between groups of electricity consumers. In practice, this could mean that tariffs for different customer categories—residential buildings, hotels, and industrial enterprises—will over time more clearly reflect the actual cost of energy at a given hour, rather than an average rate.
Why this matters for expats, hotels and small businesses
A separate transitional provision specifically for tariffs for tourist accommodation is a clear signal that hotels and guesthouses may face a different electricity price structure than ordinary households. For owners of small hotels, guesthouses, and villas in Da Nang, Nha Trang, or Phu Quoc, this detail is worth monitoring the development of the bill—especially how exactly the "tourist" tariff category will be defined and when it might come into effect.
