Bangkok: Awaiting the Energy Regulatory Commission (ERC) board's decision on March 25th regarding electricity prices, following a 7-satang increase in costs. The Energy Regulatory Commission (ERC) board will meet on March 25 to consider the new electricity tariff for the period May-August 2026, with costs projected to increase by at least 7 satang per unit. Preliminary calculations show the new tariff cost at 3.95 baht per unit, higher than the current rate of 3.88 baht per unit, due to rising LNG prices and a weaker Thai baht.
According to Thai News Agency, the increase in electricity costs is attributed to the ongoing conflict in the Middle East, which has impacted fuel prices significantly. Mr. Worawit Sri-Ananrak, a member of the Energy Regulatory Commission (ERC), stated that the board will deliberate on the new electricity tariff, considering multiple scenarios to address the costs and debt owed by the Electricity Generating Authority of Thailand (EGAT).
The board is considering three scenarios: repaying all outstanding EGAT debts, which would result in an electricity price of 4.59 baht per unit; not paying the debt, which would set the price at 4.08 baht per unit; and utilizing Claw Back funds to reduce the price to 3.95 baht per unit, still higher than the current price. Additional government support measures may be necessary to maintain electricity prices, given the rising LNG prices, which have surged to US$25 per million BTU from US$11 per million BTU, and the depreciation of the Thai baht to over 33.00 per US dollar.
Mr. Worawit expressed concerns about future electricity bills if the conflict persists, particularly for the period from September to December. He emphasized the importance of stabilizing electricity costs and suggested targeted government assistance for vulnerable groups using a limited amount of electricity. Thailand's electricity generation heavily relies on natural gas, with significant imports from Qatar and Myanmar, which poses a challenge amid the current geopolitical tensions.