Interior Ministry moves to remove public-lighting costs from power bills

The Interior Ministry is preparing a major reform of Thailand’s electricity tariff structure for the first time in 30 years, with the aim of separating public electricity costs from household power bills.

The move would allow people to pay for electricity based on their actual usage, without having to shoulder public electricity costs worth more than 20 billion baht a year.

Polpee Suwanchawi, deputy interior minister overseeing the Provincial Electricity Authority (PEA) and the Metropolitan Electricity Authority (MEA), said the reform would separate public electricity charges from people’s bills as part of a broader restructuring of energy prices.

He said discussions with Energy Minister Ekanat Promphan, the MEA, the PEA and the Electricity Generating Authority of Thailand (EGAT) had produced two to three possible formulas to remove the variable electricity tariff, or Ft, from the public’s burden.

After the 2027 budget proposal is completed, Polpee said he would hold talks with Ekniti Nitithanprapas, Deputy Prime Minister and Finance Minister.

Asked whether the change would require legal amendments or a ministerial regulation, Polpee said public electricity expenses, covering both local authorities and highways, total about 20 billion baht a year.

Of that amount, electricity for local authorities accounts for about 6 billion baht a year. He said the tax-payment mechanisms of the three electricity agencies would have to be reviewed, along with their internal structures.

The internal structure of each agency may also need to be adjusted, while EGAT’s electricity supply arrangements would also have to be examined. Polpee said the entire system must be overhauled so that people do not have to pay for electricity beyond what they actually use.

If a ministerial regulation is required, he said it would be proposed so that the change could be enforced immediately.

On the timeframe, Polpee insisted the reform would be carried out as quickly as possible, saying people had already waited 30 years while feeling they had to carry this burden.

He added that the government did not want to use tax revenue to cover these public electricity expenses, as that would only shift the burden back to the people.

“This must be an integrated effort among the three electricity agencies, and various sources of revenue must also be used to help support this,” he said.