Shocking surge: Thai electricity tariffs set to spark debate

The Energy Regulatory Commission (ERC) announced a public consultation from today, July 12, until July 26 to discuss the final electricity tariff adjustment of the year. The proposed adjustments could see electricity bills rise from September to December this year, with costs potentially increasing from 4.18 baht per unit to between 4.65 and 6.01 baht per unit.

The Secretary-General and spokesperson of the ERC, Poonpat Leesombatpiboon revealed that the Fuel Tariff (FT) might need to be adjusted upwards by 46.8 to 182.9 satang per unit, combined with the base electricity rate of 3.7 baht per unit. This adjustment would result in the electricity tariff for the end of 2024 increasing to between 4.65 and 6.01 baht per unit.

The ERC is considering three options to manage the real cost burdens incurred by the Electricity Generating Authority of Thailand (EGAT). These options will be open for public feedback on the ERC’s website before a final decision is made.

The first option involves repaying the full outstanding cost burden of 98.6 million baht, equating to 163 satang per unit. This would cover the fuel and electricity purchase costs EGAT has borne on behalf of the public from September 2021 to April 2024.

Including the FT retail price, the total adjustment would be 223 satang per unit, reflecting a cost trend of 34 satang per unit for September to December 2024 and an AFGAS value of 15 million baht. This would bring the total increase to 188 satang per unit, resulting in an average electricity cost (excluding VAT) rising by 44%, from 4.18 baht to 6.01 baht per unit.

The second option proposes repaying the outstanding cost in three instalments of 32.8 million baht each, which translates to 54 satang per unit. Combined with the FT retail price of 114 satang per unit, and the same cost trends and AFGAS values as the first option, the total adjustment would be 79 satang per unit.

Clearing debts

By the end of December 2024, the remaining cost burden would be 65.6 million baht. This would result in an average electricity cost (excluding VAT) increasing by 18%, from 4.18 baht to 4.92 baht per unit.

The third option involves repaying the outstanding cost over six instalments of 16.4 million baht each, equating to 27 satang per unit. By the end of December 2024, the remaining cost burden would be 82 million baht.

Including the FT retail price of 87 satang per unit, the cost trends, and AFGAS values, the total adjustment would be 52 satang per unit. This option would see the average electricity cost (excluding VAT) increasing by 11%, from 4.18 baht to 4.65 baht per unit.

Poonpat explained that these adjustments are influenced by various uncontrollable factors, leading to higher fuel production costs. Coupled with the gradual repayment of previous fuel debt, these adjustments reflect the recent weakening of the baht against the US dollar, from 33 baht to 36.6 baht per dollar, reported KhaoSod.