May-August electricity rate dropped to 3.98 baht/unit, lower than govt target
The reduction was achieved by utilizing 12.2 billion baht from the Claw Back fund to help subsidize the cost
The Energy Regulatory Commission (ERC) has approved a reduction in the electricity rate for the May–August billing cycle, setting the new rate at 3.98 baht per unit, slightly lower than the government's proposed rate of 3.99 baht.
This was achieved by utilizing 12.2 billion baht from the Claw Back fund to help subsidize the cost, the commission said.
The ERC reviews electricity rates every four months — in January, May, and September — to ensure that pricing reflects the prevailing economic conditions.
Poonpat Leesombatpiboon, Secretary-General and spokesperson for the ERC, stated on Wednesday that the commission had previously announced a rate of 4.15 baht per unit for the May–August period, based on public consultation.
However, due to changing circumstances in recent months — and in light of the government’s concerns and its proposal to cap the rate at 3.99 baht — the ERC decided to reassess actual fuel costs and electricity production data, he said.
The government requested that EGAT (Electricity Generating Authority of Thailand), the ERC, and the Ministry of Energy reconsider the electricity pricing without using the national budget, Poonpat added.
He explained that EGAT had previously absorbed over 100 billion baht in unpaid fuel cost debt on behalf of consumers. The remaining outstanding debt is 71 billion baht, or about 0.2033 baht per unit. If EGAT is not repaid, this could impact its credit rating and financial health, ultimately affecting the public through future rate increases caused by rising interest and financial risks.
To find a balanced solution, the ERC decided to use part of the Claw Back fund — a reserve of unspent capital or overestimated returns from planned investments by Thailand’s three electricity authorities. A review found that 12.2 billion baht (about 0.17 baht per unit) could be used to lower the rate.
Poonpat added that the new rate will help ease the burden on the public and the economy, while also maintaining stability in the power system and supporting EGAT.
“This is the lowest rate in recent memory,” he said. “The current Claw Back fund totals 20 billion baht, collected from EGAT, the Provincial Electricity Authority (PEA), and the Metropolitan Electricity Authority (MEA).”
