Thai government delays decision on electricity price reduction

Prime Minister Srettha Thavisin revealed that the Cabinet has not yet agreed to reduce electricity charges. Pointing out that Deputy Prime Minister and Energy Minister Pirapan Salirathavibhaga is not ready to present the numbers to reduce electricity charges by no more than 4.20 baht (US$0.12). He requested more time at 10.10am today, at the Government House.

Before the Cabinet meeting, Pirapan disclosed that he would propose to the Cabinet to reduce electricity charges by less than 4.20 baht (US$0.12). He considered it a significant new year’s gift to the people. The price will be lowered for four months, rotating according to the FT rate.

It is expected to be reduced until April, which will coincide with the January round of electricity charges. For parts not exceeding 300 units, the price remains the same, reports Khaosod.

Pirapan is preparing to propose to the Cabinet to reduce electricity charges by less than 4.20 baht. He emphasised that it would be in time for the January bill round for sure.

In related news, PTT Plc, Thailand’s national oil and gas conglomerate, is slated to assist the government in lowering the power tariff in the early part of next year. This is to be achieved through the utilisation of 4.3 billion baht (US$124) from a fine imposed on its gas supplier for a breach of contract, according to an energy official.

An inside source 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 (US$0.14) per kilowatt-hour. The increase from September to December was from 3.99 baht (US$0.12) per unit, said the Energy Regulatory Commission (ERC).

PM Srettha instructed the relevant authorities to review and reduce the rate to 4.1 baht (US$0.12) per unit. A statement from the Energy Ministry last week indicated that every effort will be made to cap the tariff at 4.2 baht (US$0.12) per unit. Read the full story HERE.