The Energy Regulatory Commission (ERC) is gathering public opinion on three possible options for new power tariff rates before selecting one to determine electricity bills between September and December.
The rates vary based on differing periods to reimburse the state-run Electricity Generating Authority of Thailand (Egat), which lost billions of baht after subsidising electricity bills from September 2021 to May 2023, said Khomgrich Tantravanich, the ERC secretary-general.
Egat’s accumulated loss is projected to decrease to 135 billion baht at the end of next month.
The current power tariff rate for households and businesses, which is applicable until the end of August, is 4.70 baht per kilowatt-hour (unit).
If the rate increases to 6.28 baht, which is proposed as the first choice, Egat’s losses will be cleared by the end of December, said Mr Khomgrich.
The 6.28-baht rate comprises a fuel tariff (Ft) of 2.5 baht per unit and a base tariff of 3.78 baht.
The base tariff indicates the costs of power plants and distribution systems while the Ft is determined by fuel costs and other variables.
The second option is a power tariff of 4.70 baht, made up of an Ft of 0.91 baht and a base tariff of 3.78 baht. Under this option, it would take Egat until September next year to clear its losses, said Mr Khomgrich.
The third choice is a power tariff of 4.45 baht, with an Ft of 0.66 baht and a base tariff of 3.78 baht. Under this choice, Egat’s losses would take until April 2025 to clear.
People can voice their opinions on the ERC website until July 21. The ERC will then announce the selected tariff rate at the end of this month, said Mr Khomgrich.
The calculation of the three rates is based on the decrease in the average price of gas by 53% to 346 baht per million British thermal units, down from the rate in the May-August cycle.
The gas pool price is calculated from the prices of gas supplied from the Gulf of Thailand and Myanmar, as well as imported liquefied natural gas (LNG).
Prices of imported LNG and coal have dropped while Thailand will have more supply of inexpensive domestic gas as production in the Gulf of Thailand is increasing.
Gas makes up 60% of all fuels used in power generation, coal 15%, renewables 15% and electricity imports from Laos and Malaysia 10%.
