Bangkok: Ekanat announced in Parliament that the Energy Policy and Planning Office (EPPO) would reduce refining margins by another 3 baht.
According to Thai News Agency, Ekanat revealed that this morning's meeting of the Energy Policy Committee (EPPC) reduced the ex-refinery price of oil by 5 baht. He also proposed measures to reduce electricity costs to no more than 3 baht per unit, which will be submitted to the Cabinet and the National Energy Policy Council next week. The price reduction is expected to begin with the June billing cycle.
During the 8th session of the House of Representatives, chaired by Speaker Sophon Saram, Ms. Pimphruda Tanchararak, MP for Phra Nakhon Si Ayutthaya from the Bhumjaithai Party, posed an oral question to the Minister of Energy regarding rising electricity prices. Minister of Energy, Mr. Ekanat Promphan, responded that the situation in the Middle East is affecting the public and the country's economy. Regarding oil, he stated that earlier that morning he attended a meeting of the Energy Policy Administration Committee (EPAC) to reduce the ex-refinery price of oil from the original reduction of 2 baht to a further reduction of 5 baht, in order to help refineries share the burden with the public. As for electricity costs, he explained that because 30-40% of electricity is generated from LNG imported from the Middle East, the increased fuel adjustment charge (FT) has resulted in higher electricity rates.
Therefore, the Ministry of Energy is preparing to submit urgent measures to the Cabinet and the National Energy Policy Committee next week to reduce electricity rates. This applies to both the 14 million households that use less than 200 units and those that use more, aiming to reduce the price of the first 200 units to no more than 3 baht per unit. This proposal will be forwarded to the Energy Regulatory Commission for public hearings to be completed within one month. It is expected that this measure will be implemented in the June billing cycle.
Mr. Ekanat further stated that for households using more than 200 units of electricity, there will be incentives to install solar panels to generate electricity from solar energy. These measures will include low-interest loans, tax reductions, and a higher price for excess electricity produced compared to solar farms, as well as streamlining the permitting process for installation, all aimed at lowering electricity costs.
Ms. Pimphruda then questioned what measures had already been implemented to promote the use of solar power. Mr. Ekanat stated that the Ministry of Energy had negotiated with the Electricity Generating Authority of Thailand (EGAT), the Provincial Electricity Authority (PEA), and the Metropolitan Electricity Authority (MEA) to establish a One-Stop Service for citizens to apply for and receive approval for solar panel installations, with a review period not exceeding 30 days. The approval process for installations of solar panels for household use without selling electricity back to the grid should not exceed one week.
Regarding installation costs, when calculated based on the repayment period and the lifespan of solar panels, a long-term loan for solar panel installation will be lower than the current monthly electricity bill. This can help alleviate concerns about installation costs and ensure long-term return on investment. Furthermore, measures to purchase electricity back at a higher price than that of solar farms are also expected to be finalized by June.