ERC secretary Komkrit Tantrawanich said the tariff had to be increased due to a weakening baht, a drop in hydroelectric power supply from outside Thailand and a reduction in the use of fossil fuel.
Moreover, he said, the price of natural gas is rising in line with the jump in crude oil prices. Thailand also has to import liquified natural gas (LNG) to make up for the drop in natural gas supplies in the Gulf of Thailand.
He said the ERC has supported the government’s policies and kept power bills low over the past two years. However, now that the Covid-19 crisis is easing and many economies are starting to recover, the energy demand is rising. This increase in demand has resulted in a jump in the price of both oil and natural gas.
Komkrit said the ERC has used four factors to determine the tariff increase in the first four months of 2022. They are:
• Estimated demand during the period
• Estimated proportion of fuel used to generate power during that period
• Estimated average fuel price from January to April 2022
• Average foreign exchange rate from September 1-30, 2021
The ERC will adjust the tariff every four months instead of increasing it in one go to ease the burden on residents. Komkrit said the ERC will keep an eye on the oil and natural gas situation and hopes the price drops in the future.
ERC is collecting public opinion on the subject via its website, https://www.erc.or.th/, until November 25.
Published : November 20, 2021
By : THE NATION