The National Energy Policy Council (NEPC) has resolved to ask national oil and gas conglomerate PTT Plc to allocate 6 billion baht to help the government cap the increasing power tariff, part of efforts to slow the surge in electricity bills.
The resolution was announced yesterday by Energy Minister Supattanapong Punmeechaow after the NEPC met to find ways to relieve people's financial burdens, exacerbated by higher electricity prices next year.
The council will seek cooperation from PTT to spend part of its revenue from its gas separation business to subsidise power bills for households using less than 500 kilowatts-hour (units) of electricity a month.
PTT can help by allocating 1.5 billion baht monthly for four months from January to April next year when the power tariff, which is used to calculate electricity bills, is set to increase from a record high of 4.72 baht per unit.
The current power tariff is in effect until the end of December, but the NEPC wants to keep the rate unchanged, meaning the financial support from PTT, the sole gas seller in the country, is necessary.
Gas accounts for more than 50% of the fuel used to produce electricity.
A drop in domestic gas supply from the Gulf of Thailand caused the country to import more costly liquefied natural gas (LNG).
The NEPC also agreed to ask PTT to give discounts on the gas it sells to small power producers, meaning electricity generation capacity of less than 90 megawatts, said Mr Supattanapong.
The council is concerned about higher LNG prices, expected to increase during January to April next year as a result of elevated demand for gas in the winter, when many countries want more energy as the temperature drops.
The worry over this seasonal high demand has intensified amid the Russia-Ukraine war, he said.
According to energy officials, LNG prices in the spot market soared from $10 per metric million British thermal units (MMBTU) in early 2021 to $30 in October this year.
The price is expected to range from $25-33 MMBTU between 2023 and 2024.
The Energy Regulatory Commission (ERC) is considering imposing a new power tariff next year and is gathering people's opinions on an appropriate rate.
Opinions from electricity users will be incorporated into the decision-making process on the new power tariff, slated to be finalised by Dec 1 in order to take effect between January and April next year, Khomgrich Tantravanich, secretary-general of the ERC said earlier.
He said the commission will gather public input via its website from today until Nov 27.
People can choose between three power tariff rates: 5.37 baht, 5.7 baht and 6.03 baht per kilowatt-hour.