ERC revises payout for lowering usage

ERC revises payout for lowering usage

The Energy Regulatory Commission (ERC) is revising compensation for private companies willing to reduce power consumption during maintenance shutdowns or disruptions.

The new regulations are expected to help ensure power users there will be no blackouts during gas supply disruptions or maintenance shutdowns. The new rules are expected to be finalised next month, said commissioners yesterday.

The Thai power-generating structure uses about 70% gas for electricity production. Gas supply disruptions have happened frequently since 2009 due to ageing petroleum production rigs.

The ERC previously asked for cooperation from businesses and households in cutting their power consumption to ensure all consumers have power during the disruptions. But the request did not reduce power consumption, so commissioners are seeking alternatives to prevent blackouts.

Last year the ERC asked businesses to cut power consumption by 250 megawatts during a gas supply disruption at block A18 of the Malaysia-Thailand Joint Development Area (JDA). Firms reduced consumption by 247 MW, which soured regulators on the idea that volunteering could work.

Commissioner Kraisi Karnasuta said the Malaysia-Thailand JDA, Myanmar's Yadana and Yetakun blocks and gas blocks in the Gulf of Thailand had often had disruptions, creating a risk of blackouts.

Last year a gas supply disruption from the Yetakun block lasted three days and cut around 200 MW of power supply. The ERC got volunteers to reduce power consumption by only 87.8 MW.

At that time, the ERC offered compensation of four baht per kilowatt-hour for volunteers.

Commissioner Viraphol Jirapraditkul said the new compensation rates would be fair for all parties.

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