Later this year, businesses and households in Thailand may face higher electricity bills as the Energy Regulatory Commission (ERC) plans to raise the power tariff from 4.18 baht per kilowatt-hour during the cool season. In order to maintain the current tariff from September to December, the government would have to allocate 28 billion baht for subsidies and extend repayment periods to Egat and gas sellers.
Previously, the government sought assistance from Egat and gas sellers to stabilize electricity prices from September 2021 to April this year, resulting in a debt of 15 billion baht from gas purchases and a 98 billion baht loss for Egat.
ERC recently convened to decide on the new power tariff, effective from September to December, with the existing 4.18-baht rate applicable until the end of August. Three tariff options were proposed, with increases ranging from 11-44%, aimed at reimbursing creditors and covering various expenses under government policies.
The proposed tariff adjustments include increases in base tariff and Ft (reflecting fuel prices and other costs), with the highest increase potentially clearing the debt owed to Egat by December. Gas prices, particularly Pool Gas, are a crucial factor in the tariff hike, set to rise by 8% to 323 baht per MMBTU.
