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Thailand: ERC seeks consumer feedback on new tariff
People will be allowed to have a say regarding the new power tariff as the Energy Regulatory Commission (ERC) prepares to decide on the next hike, leading to higher electricity bills next year.
The higher bill is mainly attributed to an increase in the fuel tariff, often called Ft, which is a key component in the power tariff, followed by an increase in global energy prices, especially for liquefied natural gas (LNG) imports.
The ERC wants to hear what households and businesses think of its three different rates for the power tariff. The higher the tariff, the less the financial burden will be shouldered by the Electricity Generating Authority of Thailand (Egat).
Opinions from electricity users will be incorporated into the decision-making process on the new power tariff slated to be finalised by Dec 1 in order to take effect between January and April next year, said Khomgrich Tantravanich, secretary-general of the ERC.
He said the commission will gather public input via its website from today until Nov 27.
People can choose between three power tariff rates: 5.37 baht, 5.7 baht and 6.03 baht per kilowatt-hour.
The current power tariff, to be used until the end of this year, is 4.72 baht per KWh, a record high.
Egat has incurred a loss of 126 billion baht after it was instructed by the government to partially subsidise electricity prices.
If people opt for the 5.37-baht rate, with the Ft increasing to 158.3 satang per KWh, Egat will see its loss reduced to 122 billion baht.
A higher tariff of 5.7 baht, with the Ft rising to 191.64 satang per KWh, will cause Egat’s financial burden to decline to 102 billion baht.
If people agree to pay 6.03 baht, with the Ft soaring to 224.98 satang per KWh, Egat’s loss will be chopped to 81.5 billion baht.
Mr Khomgrich said if the power tariff stays unchanged at 4.72 baht per KWh, Egat’s financial burden will rise to 170 billion baht.
Thailand needs to import more costly LNG after a drop in gas supply from domestic sources. Gas accounts for around 54% of the fuels used to produce electricity.
According to the ERC’s estimate, the price of gas pool in Thailand is expected to increase by 17% to 564 baht per million British thermal units (BTU), up from 482 baht per million BTU at present.
The price of imported coal, which is used for 6.5% of power generation, is expected to rise by 27% to 5,165 baht per tonne, while diesel, making up 6.3% of power generation, will rise by 14% to 31.94 baht a litre.
Source: https://www.bangkokpost.com/business/2437827/erc-seeks-consumer-feedback-on-new-tariff