In the energy sector in Vietnam, understanding how your electricity bill is calculated is very important. Vietnam Power Corporation, in its latest move, outlined a tiered pricing structure through Decision No. 1416/QD-EVN dated November 8, 2023.

Pricing formula by level

Tiered pricing formulas set different rates based on your electricity consumption. The more electricity you consume, the higher the corresponding rate. Their respective levels and proportions are as follows:

Level 1:0 - 50 units at 1,806 VND/kWh

Level 2:51 - 100 units at 1,866 VND/kWh

Level 3:101 - 200 units at 2,167 VND/kWh

Level 4:201 - 300 units at 2,729 VND/kWh

Level 5:301 - 400 units at 3,050 VND/kWh

Level 6: More than 400 units at 3,151 VND/kWh

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The tiered pricing model allows you to accurately calculate your electricity bill based on the following formula:

Electricity Bill Level N = Level N Applicable Voltage Unit × Retail Price of Electricity at Level N

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Example

Let's say your family consumed 170 units of electricity this month. The calculation will be as follows:

1. Electricity bill Level 1:50 x 1,806 = 90,000 VND
2. Electricity bill level 2:50 x 1,866 = 93,000 VND
3. Electricity bill Level 3:70 x 2,167 = 151.690 VND

The total electricity bill after 8% VAT will be: (90,000 + 93,000 + 151,690) x 108% = 361,465 VND.

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Benefits of the rental PPA model

In addition, the application of PPA solar lease model can play a strategic role in lowering your current tier price and overall cost. By purchasing electricity at a discount through a rental agreement, you effectively reduce your consumption on higher floors, then reduce overall costs. This not only contributes to financial savings, but also aligns with sustainable energy practices.

Understanding how your electricity consumption translates into costs under a tiered pricing model provides transparency and empowers consumers to make informed decisions about their energy use.