Thai govt’s shocking move: Sparks fly as power tariff gets a jolt down

The Thai authorities, under the management of Srettha Thavisin, has swiftly permitted a plan to lower the facility tariff, with the objective of decreasing electricity bills for the public.
The tariff rate has been revised from 4.forty five baht to three.99 baht per kilowatt-hour, relevant from September to December this 12 months. However, for a long-term resolution to high electrical energy prices, a restructuring of the Thai vitality value structure may be essential.
Energy Minister Pirapan Salirathavibhaga suggested a fast resolution can be to extend the period of debt compensation to the state-run Electricity Generating Authority of Thailand (EGAT).
This measure could presumably be carried out by September, avoiding a lengthy consideration process required for other choices. The new tariff price was proposed by Pirapan following a gathering with the Energy Regulatory Commission (ERC) and approved by the cabinet on September 18.
The ERC met with Egat and PTT Plc on September 20 to discuss the implementation of the power tariff coverage.
Part of the plan includes Egat adjusting its debt administration and PTT lowering its fuel sales costs to 304.79 baht per million British thermal units (BTU) from 323.37 baht per million BTU.
The previous power tariff of 4.forty five baht a unit, scheduled for September to December, was decided by three components: decrease fuel costs, public opinion, and a need to reimburse EGAT, which reported a loss of a hundred and fifty billion baht because of subsidising electricity bills between September 2021 and December last year.
This was primarily to alleviate the monetary pressure on people and companies ensuing from the Russia-Ukraine conflict, which triggered a surge in international fuel prices. However, the facility tariff reduction to three.ninety nine baht per unit will lengthen the interval for EGAT to clear its debt.
Last chance had previously insisted that it could not additional lower electricity payments for the final 4 months of this year without impacting its future investment in energy infrastructure. This suggests that a restructuring of the Thai energy worth structure could additionally be essential for a extra sustainable resolution to excessive electrical energy costs.
A former senior power official, who requested anonymity, advised several methods to achieve this. These embody gas worth management, signing extra long-term liquefied natural fuel (LNG) buy contracts, creating a model new petroleum site in the overlapping declare space (OCA) in the Gulf of Thailand, and importing more energy from Laos.
The Federation of Thai Industries (FTI) welcomed the cabinet’s approval of a decrease power tariff but suggested that the federal government must make changes to the Thai vitality price construction for a more sustainable resolution to high electrical energy payments.
According to Kriengkrai Thiennukul, chairman of the FTI, the power tariff cut and reduction of diesel prices are a good begin, but these can only work within the quick term. Therefore, a critical inquiry into the national power value construction is necessary to keep away from a return to pricey electricity and oil, reported Bangkok Post.
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