Power price may stay at Bt3.88 as minister proposes subsidy use

Energy Minister Akanat Promphan said today that he believes the average price of electricity for May through August can be maintained at 3.88 baht/unit, instead of increasing to the 3.95 baht/unit worked out by the Energy Regulatory Commission of Thailand (ERC) yesterday.

On Wednesday, the commission decided to set the fuel tariff (FT) on electricity prices for the period at 16.23 satang/unit, which means that the price per unit that the consumer will pay for the next four months will increase by 7 satang to 3.95 baht/unit.

Akanat said the claw-back mechanism can be used to maintain the unit price of electricity at 3.88 baht for the next four months, because there is still a surplus of about 9 billion baht.

He also plans to change the electricity charge collection structure into tiered model, which will encourage consumers to conserve energy.

He maintains that the National Energy Policy Committee, chaired by the prime minister, has the authority to review the decision of the ERC.

Poonpat Leesombatpiboon, ERC secretary-general, said yesterday that the new FT reflects the trend of fuel costs and the cost of electricity to be bought from the Electricity Generating Authority of Thailand (EGAT) from May through August.

He insisted that, before setting the new FT, the commission had held an online public hearing between March 25 and 31 to gauge people’s opinions about the new electricity price starting in May.

He disclosed that 49% of the poll respondents concurred that the average energy charge should be 3.95 baht per unit, which means that the commission will have to use the claw-back mechanism to subsidise rate charged for electricity.

The current rate is 3.88 baht/unit.

Poonpat said that, if the price is to be kept at 3.88 baht/unit, the commission’s office will have to spend another 5 billion baht in subsidy for the May through August period.

He noted that the commission will have to take into consideration the financial burden, long-term energy security and fairness to all sectors of society if it has to maintain price of electricity.

Anticipating increased energy consumption during the dry season, especially in April, he urged households to conserve electricity, use it efficiently by switching off electrical appliances when not in use and to maintain air conditioners thermostats at an appropriate level.