The Energy Regulating Commission (ERC) offers approved an increase within electricity bills between Sept and December, with the power tariff rising to a record high of 4. 72 baht per kilowatt-hour (unit).
The ERC said this planned a higher strength tariff for the finish of this year though it earlier postponed the announcement, planned on Aug 1, following intervention simply by Prime Minister Prayut Chan-o-cha who sought to curb rising living costs, stated a source at the Power Ministry.
The ERC stated via its Fb page yesterday it needs to increase the power tariff as Thailand imports more costly melted natural gas (LNG) with regard to power generation. Gasoline accounts for 60% of the fuels used to produce electricity in the country.
The power contract price, which is made up of the base tariff and gas tariff, is used in order to calculate electricity bills. The bottom tariff refers to the cost of power plants and distribution systems, as the fuel tariff is principally determined by fuel costs, which are increasing since the Russia-Ukraine war continues.
The particular ERC said recently the fuel tariff will increase to 0. 9343 baht per unit, driving up the power tariff in order to 4. 72 baht per unit. The new power tariff will not be subsidised by the state-run Electricity Generating Authority of Thailand as the 83-billion-baht subsidy program will end this particular month.
Thailand needs to import more LNG since domestic gas provide, which is less expensive, from your Gulf of Thailand has declined. LNG prices in the spot market stand from US$25-50 (887-1, 775 baht) per metric million standard cuft per day (MMSCFD), compared with Gulf of Asia gas, which is priced at $6-7 per MMSCFD.