18-07-2025
Commission to maintain current power tariff
Electricity bills during the last four months of this year will not be further reduced as the Energy Regulatory Commission (ERC) has decided to maintain the current power tariff despite positive factors that could lead to a lower rate.
The tariff rate, which is used to determine electricity prices, stands at 3.98 baht per kilowatt-hour (unit), applicable until the end of August.
The 3.98-baht rate is among three options the ERC unveiled yesterday to seek the public's opinion. The others were 4.87 and 5.10 baht a unit.
"The power tariff remains high as we need to allocate parts of electricity bills to reimburse Egat and PTT," said Poonapat Leesombatpiboon, secretary-general of the ERC.
The Electricity Generating Authority of Thailand (Egat) previously spent money on subsidising electricity prices, incurring a loss of over 66 billion baht, while national oil and gas conglomerate PTT Plc's earlier subsidy programme resulted in a loss of more than 15 billion baht.
Higher power tariff rates mean more money will be paid back to Egat and PTT.
The ERC set the minimum rate at 3.98 baht a unit, though projected gas and lignite prices, foreign exchange rates and power demand are conducive to setting lower rates.
Gas prices, including liquefied natural gas, are expected to decrease by 4.5% to 299 baht per million British thermal units in the last four months of 2025, down from a projected 313 baht per million BTU between May and August, while lignite prices are believed to fall by 7% to 3,600 baht a tonne.
Gas and lignite make up more than 60% of fuels used for power generation in Thailand.
Power demand is projected to decrease by 8.2% to 72.2 billion kilowatts-hour due to lower temperatures. This enables authorities to distribute electricity, mainly supplied by inexpensive power generation facilities such as coal-fired power plants and hydropower plants.
During September and December, the baht is expected to appreciate to 32.9 against the greenback, causing importers to buy gas and coal at lower prices, he said.
People are being asked to choose which rates they prefer -- 3.98, 4.87 or 5.10 baht a unit -- on the ERC's website from July 17 through July 28.
The 5.10-baht rate would allow Egat and PTT to clear all their financial burdens within December this year while the 4.87-baht rate would be sufficient to pay off the debt owed to Egat.
The 3.98-baht rate would only pay back part of Egat's debt, worth 7.07 billion baht.
