Thai energy regulatory commission sets firm power tariff cap

The Thai Energy Regulatory Commission (ERC) established a firm power tariff cap of 4.18 baht (US$ 0.12) per unit from January to April this year. This move comes despite the ongoing increase in gas prices. The rate for consumers using minimal power is fixed at 3.99 baht, as stated by the government.

Rudklao Intawong Suwankiri, the Deputy Government Spokesperson, revealed today, January 11, that the Electricity Generating Authority of Thailand (EGAT) and PTT Plc, a national oil and gas conglomerate, are in full cooperation with the Energy Ministry’s policy of power tariff control.

In addition to these measures, the government has also decided to subsidise power tariffs for households consuming less than 300 units per month. This will cause their electricity fee to plateau at 3.99 baht per unit until the end of April. Rudklao estimates that this subsidy will benefit approximately 17.7 million households, reported Bangkok Post.

Previously, the ERC had expressed plans to increase the power tariff to 4.68 baht for the January-April period due to projected fuel cost increases and the need to reimburse state-operated EGAT.

It is noteworthy that EGAT incurred significant losses after subsidising electricity bills between September 2021 and May 2023. This subsidy was part of a government programme aimed at mitigating the effects of rising fuel prices on households and businesses.

In related news, PTT Plc, Thailand’s national oil and gas conglomerate, is slated to assist the government in lowering the power tariff. This is to be achieved through the utilisation of 4.3 billion baht from a fine imposed on its gas supplier for a breach of contract, according to an energy official.

An inside source has indicated that PTT’s assistance forms part of the efforts to manage the power tariff, which had previously been on course to rise by 17.3% to 4.68 baht per kilowatt-hour. The increase from September to December was from 3.99 baht per unit, said the ERC. Read more about PTT helping the Thai government lower power tariffs.