Electricity rates review set as Thailand aims to cap prices
Energy watchdog seeks feedback as cost-of-living concerns mount ahead of crucial tariff decision
The Energy Regulatory Commission (ERC) will gather public input on the new electricity rate for the upcoming September to December period, the last quarter of this year. This initiative, scheduled for today, aims to ensure electricity prices align with government policies.
Yesterday, July 16, Permanent Secretary of the Ministry of Energy Prasert Sinsukprasert announced that the ERC will open discussions to gather opinions and suggestions on calculating the variable electricity tariff (Ft) today, July 17.
This will inform decisions on the new electricity tariff to be charged to the public from September to December. It is believed the ERC will strive to maintain electricity prices at reasonable levels, aligning with the government’s policy to keep prices below 3.99 baht per unit. The current rate for May to August is 3.98 baht per unit.
Prasert emphasised the importance of awaiting the ERC’s announcement on the new electricity rate calculation for the final quarter of this year. He reassured that the Ministry of Energy is committed to maintaining electricity prices so that they do not adversely affect the public’s cost of living. The ministry aims to keep the electricity rate at 3.99 baht per unit.
Presently, several factors are impacting electricity costs. These include the cost of energy, such as the price of liquefied natural gas (LNG), which is currently at US$13 (474.50 baht) per million British thermal units (BTU). Other factors include fluctuating oil prices due to war in the Middle East, the United States’ Reciprocal Tariff measures, and the strengthening of the baht, KhaoSod reported.
Additionally, the ERC is considering funds to be reclaimed from three major electricity authorities: the Electricity Generating Authority of Thailand (EGAT), the Metropolitan Electricity Authority (MEA), and the Provincial Electricity Authority (PEA).
These funds, amounting to approximately 8 billion baht, are due to investments not proceeding as planned. Furthermore, the repayment of debts to EGAT, which has shouldered electricity costs on behalf of the public, currently stands at around 80 billion baht and will also factor into the tariff decision.
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