THAILAND TO HIKE POWER TARIFF FOR MAY-AUG CYCLE

By Kenny Teng

BANGKOK, March 25 (Bernama) -- Thailand plans to raise its electricity tariff for the May to August 2026 billing cycle, amid rising global energy costs and exchange rate volatility.

Energy Regulatory Commission (ERC) secretary general Poolpat Leesombatphiboon said three tariff options have been endorsed at a meeting on March 16 with proposed rate ranging from 3.95 to 4.59 baht (10 baht = RM1.21) per unit.

He said higher global natural gas and liquefied natural gas (LNG) prices – driven partly by geopolitical tensions, including the United States (US)-Iran situation, along with exchange rate volatility, are exerting upward pressure on electricity costs.

“Despite these challenges, the ERC retains mechanisms to manage the impact on consumers, including the use of clawback funds and the gradual settlement of accumulated fuel cost burdens,” he said in a statement after the regulator’s board meeting on Wednesday.

He added that the commission aims to balance cost-reflective tariffs with affordability, while maintaining the financial stability of the Electricity Generating Authority of Thailand (EGAT) and PTT Public Company Limited, as well as overall energy security.

Poolpat said the highest proposed rate of 4.59 baht per unit reflects full repayment of outstanding fuel costs amounting to 35.9 billion baht, which EGAT had previously absorbed during the energy crisis.

This would mark an 18 per cent increase from the current rate of 3.88 baht per unit.

The second option, proposed by EGAT, sets the tariff at 4.08 baht per unit, reflecting only current-period costs, with EGAT continuing to shoulder the outstanding fuel cost burden. This would result in a five per cent increase.

The lowest option of 3.95 baht per unit meanwhile will incorporate the use of approximately 9.47 billion baht in clawback funds to ease the impact on consumers, limiting the increase to two per cent, he said. 

Poolpat said public consultation is now underway on the variable tariff (Ft) and feedback will be considered before a final decision is made.

He said the ERC is accepting public feedback via its website from March 25 to 31, before finalising and officially announcing the decision.

-- BERNAMA