Electricity price will rise to THB4.72/unit from Sept as tariff hiked
The cost of household electricity will rise to 4.72 baht per unit from September when the Energy Regulatory Commission (ERC) will raise the fuel tariff (Ft) used to calculate bills.
On Monday, the ERC said it would hike the fuel tariff by 0.6866 baht to 0.9343 baht per unit for the September-December period.
The ERC reviews the Ft every four months – in January, May and September.
It said the main reason for the hike was the rise in imports of liquefied natural gas (LNG) from spot markets to compensate for a drop in production from the Gulf of Thailand.
The ERC said Thailand’s domestic LNG production has dropped from 3.1 to 2.5 million cubic feet per day, forcing the country to import additional LNG to feed its power plants. Meanwhile, the Russia-Ukraine conflict has driven up the price of LNG in the global market, increasing Thailand’s electricity generating costs.
The ERC predicts LNG shortages will linger through 2023 as supplies in Thailand and Myanmar remain uncertain and the economic climate deters investment in new LNG exploration projects.
It is studying the possibility of using other fuels to feed Thai power plants, including fuel oil, diesel, coal, hydropower and renewable energy. It also urged households and businesses to save electricity to reduce the country’s reliance on imported LNG.