The average electricity retail price has been increased by 4.8 per cent to VNĐ2,103.11 (US$0.085) per kWh, triggering concerns about its impact on residential and business lives.

Households using 401 kWh or more per month will face a progressive pricing scheme that is 162-180 percent higher than the average retail price.

The Ministry of Industry and Trade has suggested a three-month adjustment to the average price of electricity, instead of every six months as currently.

Electricity prices must be market-based to encourage power savings and new investments in the energy sector, experts have said.

Vietnam Electricity (EVN) has proposed to the Government to increase retail electricity prices to ensure a balance in its production and business operations, just three months after the first increase in May.