Energy Ministry to review household and data centre power tariffs

Energy Minister Akanat Promphan has outlined plans to reform Thailand’s electricity tariff structure, saying the ministry’s main goal is to ensure that people can access power at fair prices that reflect actual costs.

He said the ministry is awaiting feedback from the Energy Regulatory Commission (ERC), as any electricity tariff adjustment would affect both the public and the state electricity authorities.

Akanat said the government intends to lower electricity costs for the public in the future. The current household tariff structure, under which homes using more electricity pay at a higher rate, may be reviewed.

He said electricity prices involve several connected issues that the government must address. These include unfair power purchase contracts that place the state at a disadvantage, such as adder-based electricity sales, which need to be changed.

System losses, including those in transmission and distribution networks, as well as public lighting costs that are added to the base tariff and passed on to people’s electricity bills, must also be reorganised and managed more efficiently, he said.

A key measure in the next phase will be the creation of a new electricity user category — Type 9 — for data centres, which would pay higher power tariffs than other groups.

Akanat said data centres consume very large amounts of electricity and require power generated from expensive imported gas. Their electricity rates should therefore reflect real costs and may be higher than household tariffs.

The difference could then be used to help subsidise and reduce electricity costs for the public and domestic industries, he said.

On clean energy, Akanat confirmed that the government will continue to promote rooftop solar installation.

He said the ministry will speed up the process of buying surplus solar power back from households, with the aim of completing the arrangement within this month.

He also clarified that state budget support for clean energy would not be a direct cash handout. Instead, it would help support down payments or reduce interest rates through state banks.

The aim is to encourage people to install solar panels and switch to electric vehicles, helping Thailand shift towards a more sustainable long-term energy structure.