The government aims to maintain the current power tariff of 4.18 baht per kilowatt-hour for the remainder of the year in an effort to control electricity costs, despite anticipated increases in gas prices during the latter half of the year. This decision comes amidst financial pressures on the state budget.
Energy Minister Pirapan Salirathavibhaga indicated that businesses and households can expect to pay bills based on the existing tariff rate through the end of the year, although the Energy Regulatory Commission (ERC) has advised that a tariff hike may be necessary. The current rate will hold until August, after which a new rate is expected to be introduced for the cooler season.
“I have been preparing for this scenario and exploring options to maintain the current power tariff rate,” stated Mr. Pirapan, without elaborating on specific budgetary measures or tariff regulations.
Last week, the ERC projected a potential government subsidy of 28 billion baht to sustain the tariff at 4.18 baht per unit. This subsidy would also address outstanding debts owed to the Electricity Generating Authority of Thailand (Egat) and PTT Plc, the country’s principal gas supplier. Gas constitutes 63% of the fuel used for electricity generation in Thailand.
Previously, Egat and PTT assisted in keeping the power tariff stable from September 2021 to April 2022, resulting in a debt of 15 billion baht that needs repayment, contributing to Egat’s reported loss of up to 98 billion baht.
