THAILAND APPROVES 1.8 PCT HIKE IN ELECTRICITY TARIFFS AMID RISING ENERGY COSTS

By Kenny Teng Khoon Hock

BANGKOK, April 1 (Bernama) -- Thailand’s Energy Regulatory Commission (ERC) on Wednesday approved a 1.8 per cent increase in electricity tariffs for the May–August billing period, citing rising global energy costs and exchange rate volatility.

ERC Secretary-General Poolpat Leesombatpiboon said the commission had considered public feedback before endorsing the adjustment under the automatic tariff adjustment mechanism (Ft).

According to Poolpat, public consultations conducted via the ERC Office website from March 25 to 31 received 340 responses, of which 49 per cent supported an average tariff of 3.95 baht per unit, incorporating the use of clawback funds to ease costs.

“The Ft rate has been set at 16.23 satang per unit (100 satang = 1 baht). Combined with the base tariff of 3.78 baht (10 baht = RM1.24) per unit, this results in an average electricity charge of 3.95 baht per unit, excluding VAT,” he told a press conference on Wednesday.

He said the Ft reflects projected fuel and power purchase costs of 29.66 satang per unit for the period.

“In this round, the Electricity Generating Authority of Thailand (EGAT) will continue to shoulder accumulated outstanding costs (AF) of 35.928 billion baht on behalf of the public,” he said.

Poolpat added that Thailand currently has about 26 million electricity users. Of these, around 14.3 million residential consumers use no more than 200 units per month, accounting for 62 per cent of the total, while approximately 17.5 million, or 76 per cent, use no more than 300 units.

“Any decision to cap electricity tariffs must take into account budgetary constraints, power system stability, and long-term impacts. The ERC remains committed to a balanced, transparent, and fair regulatory approach for all stakeholders,” he said.

The ERC is also closely monitoring global energy prices, particularly liquefied natural gas (LNG), which remains volatile due to geopolitical factors and rising demand, and has the potential to affect future electricity generation costs.

The ERC Office noted that electricity demand typically rises in April during the hot season, as appliances such as air conditioners and refrigerators consume more energy.

-- BERNAMA