Household power bills to hit 4 baht per unit for first time during May-Aug
The Energy Regulatory Commission (ERC) on Wednesday decided to increase the fuel adjustment cost to 0.24 baht per unit during the May-August period, resulting in a 0.23 baht rise per unit in household electricity bills, or 4 baht per unit, for the first time.
The fuel adjustment cost, or “fuel adjustment cost at the given time”, also known as Ft, is a variable tariff derived from the Automatic Tariff Adjustment Mechanism. It reflects the change in the uncontrolled cost of utilities, such as the fuel cost and purchasing power which differ from the base tariff.
The ERC reviews the Ft every 4 months – in January, May and September.
ERC secretary-general Komkrit Tantrawanich said the adjustment was made in accordance with rising global energy prices due to the impact of the Russia-Ukraine conflict since late February. “Another negative factor that contributes to a raise in Ft is the decreasing output of liquefied natural gas from the Gulf of Thailand near the end of the concession contract,” he explained.
“The ERC had estimated the energy cost based on the current situation and concluded that the May-August Ft should be increased to 0.47 baht per unit to cover the cost,” said Komkrit.
“However, thanks to the commission’s energy cost management policies, which include the buying of electricity from Laos’s Nam Theun hydropower plant, the waiver of excise tax for B0 diesel and fuel oil used in electricity generation, and the energy pool price initiative, we can mitigate the rise in Ft to only 0.23 baht per unit.”
Under the ERC’s energy policy, the Electricity Generating Authority of Thailand covers the fuel cost when the energy price rises, and gradually increases the Ft in the following period when the energy price goes down to compensate for the loss.