The Electricity Generating Authority of Thailand (Egat) expects the electricity tariff will hit five baht per kilowatt-hour (unit), on a par with Singapore, in two years due to the rising price of natural gas.
Egat governor Sutat Patmasiriwat pointed to imports of costly liquefied natural gas (LNG) as a major reason for the projected 35 per cent increase in the power tariff from an average of 3.7 baht per unit at present, including 3.2 baht as a base factor and 52.04 satang for the fuel tariff.
Using gas from domestic sources costs three baht per unit for power generation, compared to 5.5 baht for imported LNG. However, production of local gas has peaked and will decline, paving the way for imported LNG to play a larger role in power production.
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