Thailand
Thailand: Panel urges rethink of power tariff
The Joint Standing Committee on Commerce, Industry and Banking (JSCCIB) plans to ask Prime Minister Prayut Chan-o-cha to reconsider the electricity bill calculation, believing the power tariff of 4.77 baht per kilowatt-hour (unit) could be further reduced.
The Energy Regulatory Commission (ERC) previously announced both businesses and households would pay the same tariff rate of 4.77 baht per unit between May and August.
The current power tariff rates, applicable from January until April 2023, are 5.33 baht per unit for businesses, up 13% from the previous record high of 4.72 baht per unit, and 4.72 baht per unit for households.
JSCCIB plans to submit a letter to Gen Prayut on Friday asking him to adjust the fuel tariff (Ft) calculation, which would mean less expensive electricity prices for businesses and households.
The Ft is a key component of the power tariff, which is used to calculate power bills.
“The government should consider reducing the Ft because high rates will affect the economy amidst a global economic slowdown,” said Kriengkrai Thiennukul, chairman of the Federation of Thai Industries, a core member of JSCCIB.
The group suggested officials base their calculation on an assumption that domestic gas supply, which is inexpensive, will increase, following PTT Exploration and Production Plc’s plan to expand gas production in the Gulf of Thailand.
A drop in domestic gas supply was previously blamed for causing Thailand to import more costly liquefied natural gas (LNG) for use in electricity generation.
According to energy officials, LNG prices tempered somewhat last month.
JSCCIB wants the ERC to base its LNG price estimate on a plan to import LNG between May and August.
The ERC said earlier power tariff rates are also determined by a need to pay part of the money from power bills to the state-run Electricity Generating Authority of Thailand (Egat).
Egat posted an accumulated loss of 150 billion baht after subsidising the price of electricity from September 2021 until December 2022.
“We suggest officials maintain the payback period at three years,” said Mr Kriengkrai, as the committee disagrees with a change to a two-year period, which would drive up power bills between May and August.
JSCCIB is monitoring fluctuations in global oil prices after Opec and its allies recently announced they would cut oil production starting from May until the end of 2023.
The move will likely lead to an increase in global oil prices.
Source: https://www.bangkokpost.com/business/2544184/panel-urges-rethink-of-power-tariff