FRIDAY, February 23, 2024
nationthailand

Electricity price to drop sharply from September: Energy Ministry

Electricity price to drop sharply from September: Energy Ministry

The Energy Ministry expects to cut the fuel tariff (Ft) in September, leading to a significant drop in the price of electricity.

Consumers can expect a reduction of 40-50 satang per unit for the September-December electricity billing cycle, Energy Ministry Permanent Secretary Kulit Sombatsiri said on Wednesday. The Ft rate currently stands at 4.70 baht per unit. The planned reduction was made possible by the easing of global prices of oil and liquefied natural gas (LNG), he explained.

Kulit added that if global energy prices fall to around US$9 per million British thermal units (MMBTU), the Ft could be cut by 70 satang per unit.

In addition to falling oil prices, the outlook for LNG is also encouraging thanks to projected higher natural gas output from the Erawan field in the Gulf of Thailand. Production capacity will be increased to 500 million cubic feet per day in September and further increased to 800 million cubic feet by early next year.

This will help reduce reliance on imported LNG, as the price of gas from the Gulf of Thailand will be cheaper by $5-6 US per MMBTU, leading to a possible reduction in electricity generation costs that would help push down the Ft rate.

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