SATURDAY, February 24, 2024

Electricity rise capped at 4.20 baht per unit from January

Electricity rise capped at 4.20 baht per unit from January

The new electricity rate will not exceed 4.20 baht per unit when adjusted in January next year, the Energy Ministry said on Friday.

The announcement came after the Energy Regulatory Commission (ERC) on Wednesday set the fuel tariff (FT) for January to April at 4.68 baht per unit, a rise of 0.69 baht.

However, the ministry said 4.68 baht per unit was just the ERC’s suggested rate.

“In practice, the Energy Ministry will use available measures to keep the power rate below 4.20 baht per unit to avoid adding burdens to household and industrial users,” ministry spokesman Pongpol Yodmuangcharoen said.

Measures to keep the rate down will include delaying repayment of Electricity Generation Authority of Thailand (EGAT) debt, he added.

Pongpol said the ministry is also working on revising the price structure of natural gas used to generate electricity – the root cause of rising power costs. It is also pushing to increase the use of renewable energy to solve the electricity price problem in the long term.

On Thursday, the Federation of Thai Industries (FTI) predicted the 4.68-baht rate would be rejected by policymakers, adding that the new rate for January-April was unlikely to exceed the current electricity price of 3.99 baht per unit.

The power tariff supports the liquidity of EGAT, which is bearing the burden of rising fuel prices.

The ERC reviews the FT every four months – in January, May and September.