Thai electricity tariff to remain at 4.18 baht per unit

The Thai Energy Regulatory Commission (ERC) decided to maintain the electricity tariff at 4.18 baht per unit for the billing period from September to December this year. For consumers using no more than 300 units per month, the tariff remains at 3.99 baht per unit.

Poonpat Leesombatpaiboon, Secretary-General of the ERC, revealed on July 1 that the commission resolved to keep the average electricity rate nationwide at 4.18 baht per unit, excluding VAT. This decision affects the billing period from September to December. The rate for users consuming up to 300 units monthly will stay at 3.99 baht per unit.

The primary goal of this tariff decision is to manage the repayment of fuel costs owed to the Electricity Generating Authority of Thailand (EGAT). Approximately 3.2 billion baht of the debt will be repaid, leaving around 95 billion baht still outstanding.

Additionally, there is about 15 billion baht in unpaid debt to PTT Public Company Limited for the difference between the actual gas prices and the prices charged (AF Gas). In total, the outstanding debt amounts to approximately 115 billion baht.

Looking ahead, the electricity tariff for the next billing period from January to April 2025 will depend on the global natural gas market situation. There is hope that after the winter season, the demand for gas will decrease, potentially leading to a drop in global gas prices, which are a primary fuel for electricity generation.

The current gas price is around US$13 (approximately 462 baht) per million BTU, but the ERC is closely monitoring the situation and expects it to be manageable. However, geopolitical issues must also be carefully observed.

Poonpat commented on the possibility of maintaining the 4.18 baht per unit rate throughout 2025. He expressed optimism, noting that if gas prices decline, there might be a chance to sustain or even reduce the tariff from 4.18 baht per unit, reported KhaoSod.

However, any decision must consider various factors, especially the appropriateness of repaying debts to EGAT and PTT. Poonpat acknowledged that EGAT has already shouldered a significant burden on behalf of the public, which impacts its credit rating,

“Maintaining the rate at 4.18 baht per unit is a favourable target. If gas prices decrease, we might see the electricity tariff staying at or dropping below this rate. However, the decision will depend on multiple factors, including the feasibility of debt repayments to EGAT and PTT.”