Electricity bills in Thailand are set to stay stubbornly high for the rest of the year, despite falling fuel costs, lower demand and a stronger baht.
The Energy Regulatory Commission (ERC) has chosen to freeze the power tariff at 3.98 baht per unit, brushing aside options for a cheaper rate, even as economic conditions hinted at a possible reduction.
The decision means electricity bills will remain unchanged until at least the end of August, with consumers continuing to shoulder the cost of massive state utility debts, said Poonapat Leesombatpiboon, ERC Secretary General.
“The power tariff remains high as we need to allocate parts of electricity bills to reimburse EGAT and PTT.”
The Electricity Generating Authority of Thailand (EGAT) has racked up over 66 billion baht in losses from subsidising prices, while PTT Plc is staring at a 15 billion baht hole in its accounts.
Officials say the current rate will help chip away at these debts but only just. The 3.98 baht option would recover just 7.07 billion baht from EGAT, leaving the rest hanging.
Two alternative rates, 4.87 baht and 5.10 baht per unit, were also floated for public consultation. The highest rate would clear all debts by December, while the mid-range tariff would be enough to bail out EGAT.
Despite this, the ERC went for the lowest figure: prompting confusion, as all signs point to cheaper energy on the horizon.
Gas prices, including liquefied natural gas (LNG), are expected to fall 4.5% to 299 baht per million BTU between September and December. Lignite prices are forecast to drop 7% to 3,600 baht per tonne. Together, these fuels account for over 60% of Thailand’s electricity generation.
Meanwhile, power demand is expected to dip by 8.2%, thanks to cooler weather and increased use of low-cost sources like coal and hydropower.
The baht’s predicted rise to 32.9 per US dollar will also make fuel imports cheaper, Bangkok Post reported.
Still, the ERC appears to be erring on the side of debt recovery, with the public picking up the tab.
Consumers can have their say on the proposed rates, 3.98, 4.87 or 5.10 baht per unit, via the ERC’s website from July 17 to 28.
But critics say the choice feels like a lose-lose situation: either pay now, or pay more later.
The story Shock decision: Electricity bills stay high despite energy dip as seen on Thaiger News.
