All-time high power tariff expected

Workers install solar panels on the roof of the Thammasat University Hospital in 2018 to cut its power bills. (Photo: Pattanapong Hirunard)
Workers install solar panels on the roof of the Thammasat College Hospital in 2018 to cut its strength bills. (Photo: Pattanapong Hirunard)

The cost of electricity will probably rise to an all-time high rate associated with 4. 72 baht per unit in the last four months of the year.

A source in the Energy Regulatory Commission mentioned on Wednesday the commission resolved to raise the electricity fee from 4. 00 to 4. 72 baht per kilowatt-hour (unit) in the September-December period.

The commission would announce the newest rate next Monday, the source said.

The new rate will include a fuel tariff of 0. 93 baht per device, up by 0. 67 baht for each unit.

Using the planned increase, the Electricity Generating Specialist of Thailand (Egat) would continue to subsidise the electricity fee to help people. The Egat’s debt resulting from the subsidy was expected to rise to 109. 67 billion baht by the end of next month, the source said.

The walk in the power contract price, which is made up of a base tariff and an energy tariff (Ft), outcomes mainly from a have to import more melted natural gas (LNG), which is costly but presently serves as a key energy for electricity era.

The base tariff refers to the cost of strength plants and submission systems, while the Ft is mainly determined by energy costs, which are growing as the Russia-Ukraine war continues.

The Ft is usually altered every four months. The latest adjustment has been made for the May-August period, with the Feet rising by 0. 47 baht for each unit, resulting in an energy tariff of 4 baht per unit.

The Egat agreed earlier to invest 80 billion baht, or 0. 24 baht per unit, to subsidise the particular Ft rate between May and August.

Before the war, the LNG cost in the spot marketplace stood at US$10 per metric mil standard cubic feet each day (MMSCFD).

The cost later increased in order to $20-30 per MMSCFD, compared with a domestic gas price of lower than $10 per MMSCFD in the Gulf associated with Thailand.

Gas makes up 60% from the fuel used to produce electricity in Asia.

A drop in gas supplies from domestic resources in the Gulf associated with Thailand led specialists to import more LNG.

The particular proportion of LNG in the country’s overall gas supply has risen to 40%, up from twenty percent, while gas from domestic sources dropped from 64% to 40%.

The rest of the gas is brought in from Myanmar.