Photo Credit: Varuth Hirunyatheb
Electricity bills are expected to become slightly cheaper over the final four months of 2025, as authorities have agreed to cut the power tariff by 0.03 baht per kilowatt-hour (unit), according to Energy Minister Pirapan Salirathavibhaga.
Currently, the power tariff used to calculate monthly bills is set at 3.98 baht per unit and will remain in effect until the end of August.
This recent reduction follows discussions between the Energy Ministry and the Electricity Generating Authority of Thailand (Egat).
Mr. Pirapan did not specify the exact reasons for the tariff decrease but attributed it broadly to lower liquefied natural gas (LNG) prices, a crucial fuel for the country’s power generation, along with improved financial management.
He explained, “The price of imported LNG is trending downward, and authorities are helping Egat address its financial challenges.”
The reduction in LNG imports by China, driven partly by efforts to boost domestic natural gas production, has contributed to easing supply pressure in the region. Asian spot market LNG prices dropped to about US$11 per million British thermal units (BTU) in May, down from $16.5 in February, according to Oilprice.com.
Part of the electricity costs goes toward reimbursing Egat and PTT Plc, the national oil and gas company, for previous subsidy programs during periods of rising LNG prices. Egat faces a financial loss of 66 billion baht, while PTT bears a burden of 15 billion baht.
Repaying the past subsidies is a significant factor behind the high electricity bills. However, the Energy Regulatory Committee (ERC) indicated that gas prices, including LNG, are likely to decrease in the last four months of 2025.
Earlier, the ERC set the minimum power tariff for September through December at 3.98 baht and presented two alternative rates—4.87 and 5.10 baht—available for public selection through an online consultation held from July 17 to 28. Higher tariffs would enable faster repayment of debts to Egat and PTT.