Thailand’s electricity tariff expected to surge higher than ever

After Thailand’s Energy Regulation Commission announced yesterday that the electricity price could rise to four baht per kilowatt hour, the ERC now says it will rise to a record high above that. The ERC says this will be the first time the price has surged this high. The fuel tariff is expected to be 0.24 baht per unit between May and August, on top of an average base tariff of 3.76 baht per unit.

In September to December, the Ft is expected to be 0.6483 baht per unit. The ERC’s secretary-general said Thailand faces a “double impact” from higher energy prices.

“…one caused by higher energy demand following the reopening of countries after lockdown, and the other resulting from the Russia-Ukraine war”.

The secretary-general said if more oil is used in place of gas, the Ft could decrease by 0.13 baht. He said another solution is to buy an additional 370 million units of electricity produced by biomass power plants. Thailand’s highest power tariff recorded was 3.96 baht per unit in 2014. This was due to a global price hike of over $US110 a barrel from 2012-2014.

Rising power and fuel prices are making life tough for Thailand’s businesses. Workers in a range of industries from boat tourism to land transport have been angered and scared by the impact of rising fuel prices on their livelihoods.

SOURCE: Bangkok Post