ERC considering Br2-billion plan to cut electricity bills in 2021
The Energy Regulatory Commission (ERC) is planning to give up Bt2 billion from its 2020 return on invested capital (ROIC) to restart a project in 2021 on lowering the cost of electricity.
Energy Minister Supattanapong Punmeechaow said that excessive reserves of electricity would not be a long-term problem, as the old power plants would soon be removed from the system and electricity reserves would remain at 37-40 per cent of capacity while the normal rate was 15 per cent.
He has also asked the ERC to collaborate with the Electricity Generating Authority of Thailand, the Provincial Electricity Authority and the Metropolitan Electricity Authority in order to lower the cost of electricity production, as demand had dropped by 5 per cent during the pandemic resulting in a 5 per cent increase in electricity reserves.
Komkrit Tantravanich, ERC's deputy secretary-general, said that the commission acknowledged the Energy Policy and Planning Office’s plan on September 21, and was examining the revenues of three energy organisations.
ERC is considering giving up Bt2 billion in earnings from the ROIC in 2020, which will not affect the administration of those organisations, but further details remain to be discussed since lower electricity usage would also mean lower revenue.
However, the reduction of profits in order to help cut electricity bills would be considered from various aspects.
The management will reflect on the bills between January and April 2021, and the ERC is going to announce more details in December together with a project on reducing the cost of electricity in 2021 to promote electric vehicles.