The Energy Regulatory Commission (ERC) has made a decision to reduce the power tariff by 5.3%. Currently set at 4.7 baht per kilowatt-hour (unit) for households and businesses from May to August, the new power tariff will be 4.45 baht per unit, applicable from September to December. This move comes as a relief for consumers who have been facing high electricity bills in recent months.
The decision to lower the power tariff was influenced by various factors, notably the decrease in gas prices. It was also based on public opinions gathered through a survey conducted by the ERC from July 7 to July 21. The survey presented three options for power tariff rates, considering different periods, in order to help reimburse the state-run Electricity Generating Authority of Thailand (EGAT).
During the initial four months of this year, businesses faced a steep increase in the power tariff, paying 5.33 baht per unit—a 13% rise from the previous record high of 4.72 baht per unit. Meanwhile, households paid 4.72 baht per unit during the same period. The decrease in power tariffs for the coming months will be primarily driven by a 26% reduction in the fuel tariff (Ft), a crucial component of the overall power tariff. The fuel tariff for the September-December cycle will be 0.66 baht per unit, down from 0.91 baht per unit in the May-August cycle.
By implementing the new tariff structure, EGAT’s accumulated loss is projected to decline to 135 billion baht by the end of the next month. The decision offers crucial financial relief to the authority. Among the options presented in the survey, the 4.45-baht-per-unit rate, with an Ft of 0.66 baht per unit and base tariff of 3.78 baht per unit, will allow EGAT to clear its loss by April 2025. (NNT)
