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Vietnam considering a monthly connection fee for electricity

The state power provider EVN wants to charge a subscription fee on top of metered electricity prices to cover the additional infrastructure costs for some customers, VN Express is reporting.

Essentially, the power price is currently calculated on the volume of electricity used and by tiers–the more you use the more you pay. These reforms would see what essentially equates to a recurring connection fee to cover the infrastructure costs of providing electricity–for example, a factory using huge amounts of power might require its own substation and high voltage power lines. 

This might be one way to charge consumers more money without breaching caps on retail electricity prices. These caps have seen EVN running at a loss for at least two years.

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