For many years, most enterprises in Vietnam have been familiar with a simple electricity billing mechanism: consume more, pay more. However, this rule is changing under the four-phase roadmap of the Electricity Law. From now until 2027, enterprises with monthly consumption of 200,000 kWh or more will gradually transition to a two-component electricity pricing mechanism. 

 This is not merely a change in calculation method, but a fundamental shift in how electricity is perceived and managed. 

What is Two-Component Electricity Pricing? 

In simple terms, electricity costs will be divided into two components:  

Capacity Charge (Pmax): Calculated based on the maximum demand recorded by the facility during the month (kW).  

Energy Charge: Calculated based on the total electricity consumption (kWh). 

General formula: Total Cost = (Capacity Charge × Pmax) + (Energy Charge × Energy Consumption) 

A critical point is that Pmax is determined based on the highest demand recorded within a 30-minute metering interval. This means that even a single spike in operation can impact the electricity cost for the entire month. In practice, NSN has observed that this is often the hidden factor leading to unexpected cost increases for many businesses.  

Why Is the Government Changing the Mechanism?  

The introduction of the two-component pricing mechanism is not intended to increase costs for businesses, but to more accurately reflect the cost structure of the national power system. In reality, the power sector incurs not only generation costs but also significant investments in transmission infrastructure, including transmission lines and substations, to meet peak demand at any given time. 

The previous single-component pricing mechanism did not adequately capture this aspect, resulting in operational imbalances and potential financial deficits within the system. By transitioning to a two-component structure, enterprises are required to take clearer responsibility for the capacity they demand from the grid, thereby encouraging more efficient electricity usage. From NSN’s perspective, this is an inevitable trend, compelling businesses to shift from a mindset of “electricity consumption” to “energy management.” 

Challenges for Businesses and the Need for Early Preparation  

Despite the clear direction, many enterprises remain uncertain about how their electricity costs will change, whether their existing electrical systems are ready, and how to properly interpret regulations to prepare effectively and optimize costs. From practical implementation experience, NSN recognizes that most businesses currently lack the tools and methodologies to accurately monitor Pmax and analyze load profiles in real time. This often results in reactive operations rather than proactive management, allowing uncontrolled demand peaks to occur, directly driving costs. Therefore, understanding the two-component pricing mechanism should not remain at a theoretical level. It must be accompanied by the capability to measure, analyze, and optimize existing electrical systems. 

In the upcoming articles, NSN, with over 20 years of experience in industrial factory design and construction and 10 years in renewable energy development, will provide deeper insights to help businesses fully understand the regulations, prepare early, and optimize costs directly from their existing electrical systems.