The Energy Regulatory Commission (ERC) is gathering public opinion on its proposal for a single power tariff rate, which would make electricity bills cheaper for businesses but slightly more expensive for households.
Three options for possible power tariff rates have been put forward, depending on the amount paid to the state-run Electricity Generating Authority of Thailand (Egat), said Khomgrich Tantravanich, secretary-general of the ERC.
Egat posted an accumulated loss of 150 billion baht after subsidising the price of electricity from September 2021 until December 2022.
The three possible rates proposed, which would be enforced from May to August, are 4.77, 4.84 or 6.72 baht per kilowatt-hour (unit). The ERC would pick one of these following a public hearing, which would run until March 20.
The new power tariff is scheduled to be announced on March 22.
The current power tariff rates, applicable between January and April 2023, stand at 5.33 baht per unit for businesses, an increase of 13% from the previous record high of 4.72 baht, and 4.72 baht for households, which will remain in place during the first four months of the year.
However, the ERC decided to use a single rate for both households and businesses beyond April.
The commission adjusts the fuel tariff (Ft), a key component of the power tariff, every four months.
If a rate of 6.72 baht per unit is selected, with the Ft standing at 2.936 baht per unit, Egat would be able to completely clear its losses within August.
However, this would cause electricity bills for households and businesses to skyrocket.
The 4.84 baht per unit option, with the Ft set at 1.05 baht per unit, would decrease Egat's financial burden to 109 billion baht.
By adopting the lowest rate of 4.77 baht per unit, with the Ft at 0.98 baht per unit, would bring the losses down to around 114 billion baht.
The Ft calculation is based on various factors, notably gas prices.
It has been forecast that the average price of the gas pool in Thailand would stand at 379 baht per million British thermal units (MMBTU), down from 466 baht per MMBTU between January and April.
Liquefied natural gas (LNG) is currently less than US$20 per MMBTU in the spot market. Its price ranged from $35-40 per MMBTU during last year's fourth quarter, according to the Energy Ministry.
Gas makes up 57.8% of the total fuels used to generate electricity in Thailand.
The country needs to import more LNG, following a drop in the domestic gas supply.
Mr Khomgrich said if the current power tariff remains unchanged over the next four months, it would take around 28 months to clear Egat's losses.
This financial burden is considered to be public debt, which should be settled within three years, he said, citing a need to comply with the state's financial discipline requirements.
