Bangkok: The Prime Minister of Thailand has announced a significant reduction in electricity rates for households, reducing the cost for the first 200 units to 3 baht per unit. This move also includes the removal of streetlight charges from citizens' electricity bills and the introduction of new measures to attract large investments in clean energy and data centers.
According to Thai News Agency, during a meeting chaired by Prime Minister and Minister of Interior Mr. Anutin Charnvirakul, the National Energy Policy Council (NEPC) approved several key energy measures. These measures include restructuring electricity rates and removing public electricity charges from residential bills. The council also focused on strengthening the power system to support investment in data centers.
The meeting, held at the Santi Maitri Building, approved the policy for setting the electricity tariff structure in Thailand for 2026-2030. This includes a progressive tariff adjustment where the first 1-200 units will be reduced to 3 baht per unit, while higher consumption tiers remain unchanged. Additionally, the definition of residential electricity users is expanded to include rental accommodations, allowing them to benefit from lower rates.
The council also agreed to separate the cost of public electricity, such as street lighting, from general electricity user rates. A new specific rate for these costs will be set. Moreover, the Energy Regulatory Commission (ERC) has been tasked with revising regulations to collect funds from new sources.
To support data center investments, the NEPC approved a requirement for a security deposit to confirm investment intentions before government investment in expanding the electricity system. A water management plan is also required due to the high water usage in cooling systems for data centers.
The council further approved the removal of restrictions on electricity trading from renewable energy sources. This allows for direct power purchase agreements (Direct PPAs) through third-party access (TPAs) for data centers and industries requiring clean electricity. This measure aims to meet international trade standards and promote free competition in the clean electricity market.
Ms. Ratchada Thanadirek, Spokesperson for the Prime Minister's Office, noted that the Prime Minister proposed establishing a joint committee to draft specific legislation for regulating data centers in Thailand. The rapid industry expansion requires comprehensive consideration of electricity consumption, legal frameworks, environmental impacts, and noise pollution.
The Prime Minister emphasized the importance of ensuring that the electricity tariff structure reflects true costs and remains transparent and fair. The government aims to establish guidelines that accommodate new investments without compromising power system stability or increasing the public's cost of living.