Revised Electricity Law passed in Vietnam: Cross-subsidies to be phased out gradually

10 Dec 2024
Revised Electricity Law passed in Vietnam: Cross-subsidies to be phased out gradually
Authors: Vietnamnet Global
Authoring Organisations:
Region/Location: Vietnam

Vietnam

Vietnam’s National Assembly has approved a revised Electricity Law focusing on fair pricing, renewable energy oversight, and a phased roadmap to eliminate cross-subsidies.

The revised Electricity Law, approved by the National Assembly on November 30, introduces significant updates to Vietnam’s energy policy, including a phased approach to ending cross-subsidies in electricity pricing. The law will take effect on February 1, 2025.

The revised law encompasses six main areas: power planning and development; renewable and new energy sources; conditions for electricity operations, including licensing and revocation; electricity trading activities; system management and operation; and safety standards for electricity use and hydropower dams.

One of the law's notable provisions addresses the elimination of cross-subsidies in electricity pricing. The Standing Committee of the National Assembly emphasized the importance of reducing and eventually eliminating cross-subsidies between customer groups and regions to create a more equitable pricing structure.

*This excerpt is from a news item collated by SIPET as part of its mission to serve as a one-stop platform for information and knowledge exchange about the energy transition in Southeast Asia. For the full news item, click on the link next to 'Further Information' 

**Photo credit: Vietnam National Assembly

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