NEPC plans to cap power tariff for Thai households at current rate
The National Energy Policy Council (NEPC), in its recent meeting, moved to limit the power tariff for households consuming not more than 300 units a month at the existing rate of 3.99 baht per unit, an insider familiar with the meeting discussions revealed.
In the NEPC meeting, led by Prime Minister Srettha Thavisin, two main points were reviewed, both related to the proposed tariff of 4.68 baht per unit for the period of January to April of the upcoming year. This proposed rate, an increase of 17.3% from the current tariff, was sanctioned by the Energy Regulatory Commission (ERC) on November 30.
The ERC attributes this increase to the rising fuel costs and the requirement to compensate the state-operated Electricity Generating Authority of Thailand (EGAT). EGAT has incurred significant losses due to subsidising electricity bills between September 2021 and May this year, a move aimed at mitigating the effect of soaring fuel costs on households and businesses.
The source revealed the first point of discussion was centred around reducing the power tariff from the proposed 4.68 baht per unit to not more than 4.2 baht per unit. In this regard, the meeting requested EGAT and PTT PLC to provide relevant information to the government to explore the possibility of further tariff reductions, reported Bangkok Post.
The second point of discussion was a proposal to limit the electricity bill for households consuming not more than 300 units per month at 3.99 baht per unit, the source added. This particular group, accounting for 75% of electricity consumers, is estimated to comprise 17.7 million households. To subsidise this scheme, a budget allocation of 2 billion baht is planned from the central fund.
However, a press conference planned to announce the meeting’s outcome was unexpectedly cancelled. Reporters were informed that the results would be presented to the cabinet on December 19.
Government spokesperson Chai Wacharonke confirmed that the proposed rate of 3.99 baht per unit by Energy Minister Pirapan Salirathavibhaga was well-received at the NEPC meeting. The prime minister stated that Pirapan would bring the matter before the Cabinet.
