EVN Cuts Average Power Price 2% to 2,159.9 VND/kWh Under New 5-Tier Tariff
This Aveluro analysis covers POW on HOSE in the Utilities sector. The classified event type is regulation change, with mixed sentiment and a deterministic market-impact score of 7.0/10. Source coverage came from Tuổi Trẻ - Kinh doanh, classified as a primary/top-tier source.
Key Facts
Caveat: Not investment advice. · How Aveluro computed this: Aveluro combines extracted event facts, source credibility, ticker context, and market data. Scores are deterministic research signals, not recommendations.
Overview
Tập đoàn Điện lực Việt Nam (EVN) confirmed at a November 4 press briefing that a new five-tier household electricity tariff took effect on November 1, 2026, replacing the previous six-tier structure. The average retail price was cut 2% to 2,159.9037 VND/kWh excluding VAT, with the top tier set at 3,844 VND/kWh. The change matters for PetroVietnam Power Corporation (POW), listed on HOSE, because the regulated retail price is the reference point for the wholesale power pool that determines generator revenue.
Key Facts
- New average retail electricity price of 2,159.9037 VND/kWh excluding VAT, effective November 1, 2026, a 2% reduction from the prior level.
- Household tariff restructured from six tiers to five tiers under the new Ministry of Industry and Trade price decision.
- Tier 1 (0-100 kWh) at 1,901 VND/kWh; Tier 2 (101-200 kWh) at 2,289 VND/kWh; Tier 3 (201-400 kWh) at 2,894 VND/kWh.
- Tier 4 (401-700 kWh) at 3,456 VND/kWh; Tier 5 (701 kWh and above) at 3,844 VND/kWh.
- Industrial high-voltage peak pricing set at 3,110 VND/kWh for 220kV and above, and 3,218 VND/kWh for above 35kV to under 220kV; off-peak at 1,101 and 1,123 VND/kWh respectively.
- EV charging peak price set at 3,758 VND/kWh for medium voltage and above, and 4,212 VND/kWh for low voltage up to 1kV.
- The announcement was made at an EVN information session on November 4, 2026, following the Ministry of Industry and Trade’s retail price decision.
What Happened
EVN held a press briefing on November 4, 2026, to explain the implementation of the government’s electricity pricing policy. The group confirmed that the average retail price had been adjusted down to 2,159.9037 VND/kWh excluding VAT from November 1, 2026, a 2% reduction against the prevailing average. Separately, the Ministry of Industry and Trade issued a decision on electricity sale prices covering retail rates for customer groups and for resellers, also effective November 1, 2026.
The structural change is the shift from six household tiers to five. Under the new schedule, the first 100 kWh per month is billed at 1,901 VND/kWh, rising through 2,289, 2,894 and 3,456 VND/kWh for successive bands, with consumption above 701 kWh charged at 3,844 VND/kWh. Non-household customers move to time-of-use pricing across peak, normal and off-peak hours, with rates differentiated by voltage level. The source material does not disclose the revenue impact on EVN or on individual generators.
Market Context
POW closed at 12,000 VND on November 3, 2026, on HOSE, ahead of the November 4 briefing. The stock trades in the utilities and energy segment of the Vietnamese market, where regulated pricing decisions are a primary driver of earnings expectations. A lower average retail price tightens the revenue envelope of the power system at a time when generation costs, fuel input and new capacity additions remain under pressure, which affects how much of the retail price can flow through to generators in the wholesale market.
Strategic Significance
The five-tier structure shifts a larger share of consumption into higher bands than the old six-tier schedule, which supports revenue per household at high usage levels while the 2% average cut reduces the overall price base. For POW, the key variable is not the household tariff itself but the wholesale price ceiling and dispatch economics that the retail price anchors. A declining average retail price limits headroom for power purchase prices, which constrains the margin a generator can earn on each kWh sold. Investors in POW are therefore effectively underwriting the regulatory cycle: the direction of the average price signals whether the next adjustment favors generators or consumers.
What to Watch
- The Ministry of Industry and Trade’s full price decision text, including any wholesale price ceiling changes not covered in the briefing.
- EVN’s next periodic price review and whether the 2% cut is reversed or extended.
- POW’s fourth-quarter 2026 results and any disclosure on realized power selling prices.
- Dispatch data from the national system operator showing whether POW’s plants are running at higher capacity factors.
- Any further tariff restructuring, including the treatment of time-of-use pricing for industrial customers.