Energy authorities are preparing to make an electricity saving campaign a mandate for households and businesses as they struggle to deal with the high prices of liquefied natural gas (LNG) which may keep soaring in the winter, putting more financial burden on national power generation.
More imports of LNG caused by a drop in natural gas from domestic sources is blamed for pushing up electricity bills this year.
If LNG prices, currently standing at US$26-29 per metric million British thermal unit (MMBTU), rise to $50 per MMBTU and remain at this level for more than two weeks, the new mandate will be enforced, said permanent secretary for energy Kulit Sombatsiri.
The legal measure was approved yesterday during the meeting of the National Energy Policy Council (NEPC), chaired by Prime Minister Prayut Chan-o-cha.
The NEPC is worried about high energy prices, driven by the Russia-Ukraine war, the baht's depreciation and higher demand for energy in Europe during the cold season, said Mr Kulit.
Electricity saving is usually adopted voluntarily by people, but during the oil crisis in the 1970s, the government needed to instruct households and businesses to use less power.
The mandate was enforced again years before the subprime crisis of 2008.
If the rule is reinstated, shopping malls and petrol stations may be told to adjust opening hours. Unnecessary lighting in public areas may need to be turned off while buildings may need to adjust air conditioners to keep the room temperature at 27 degrees Celsius.
Energy authorities will consider again what mandate will be enforced to reduce electricity consumption, said Mr Kulit.
To import less LNG, the Electricity Generating Authority of Thailand (Egat) plans to delay decommissioning some coal-fired power plants and buy more electricity from hydropower plants in Laos, while PTT Plc is expected to decrease its LNG imports from 18 to eight shipments.
The proportion of gas coming from the Gulf of Thailand fell to 54%, down from 64%, while imported LNG increased to 20% of the total, up from 8%.
Depending more on LNG imports, Thailand inevitably needs to increase the power tariff, which is used to calculate electricity bills, to a record high of 4.72 baht per kilowatt-hour (kWh).
Authorities said the tariff will be capped at 4.72 baht until the end of December this year. Without this price subsidy, the tariff is expected to soar above 5 baht per kWh.
Egat has already shouldered more than 100 billion baht after it spent money to slow down the increase in the power tariff.
