Energy Ministry to review tiered electricity tariff system

The Energy Ministry will reconsider a tiered electricity tariff structure, under which households that consume larger amounts of electricity will be charged more per unit, to ensure fairness for all, Energy Minister Akanat Promphan said today.

He hinted, however, that data centres, which consume vast amounts of electricity, may also have to be charged more per unit to reflect the actual costs of electricity generation, fuelled by high prices for imported natural gas.

He said that the main objective of the Energy Ministry is fair energy pricing that reflects the actual production costs, especially for electricity used by households.

He also said the ministry will look into the issue of an "adder" subsidy, a premium financial incentive paid on top of the wholesale electricity price, under the SPP contracts between small electricity producers and the Electricity Generating Authority of Thailand (EGAT) and the VSPP contracts between very small electricity producers and the Provincial Electricity Authority (PEA).

The adder concept is intended to encourage the private sector to produce clean and renewable electricity, such as wind and solar energy, for sale to EGAT and PEA. In return, they will be given a per-unit subsidy.

The energy minister confirmed the government's support for the promotion of clean energy generation by fast-tracking the procedure for the purchase of surplus electricity from these small producers.