The Energy Regulatory Commission (ERC) is gathering public opinion on its proposal for a single power tariff rate, which would make electricity bills cheaper for businesses but slightly more expensive for households.
Three options in terms of possible power tariff rates have been put forward, depending on the amount paid to the state-run Electricity Generating Authority of Thailand (Egat), said Khomgrich Tantravanich, secretary-general of the ERC.
Egat posted an accumulated loss of 150 billion baht after subsidising the price of electricity from September 2021 until December 2022.
The three proposed rates, which would be enforced from May to August, are 4.77, 4.84 or 6.72 baht per kilowatt-hour (unit).
The ERC plans to pick one following the public hearing, which is slated to run until March 20.
The new power tariff is scheduled to be announced on March 22.
The current power tariff rates, applicable from January to April 2023, are 5.33 baht per unit for businesses, up 13% from the previous record high of 4.72 baht per unit, and 4.72 baht per unit for households.
ERC decided to use a single power tariff rate for both households and businesses after April.
The commission adjusts the fuel tariff (Ft), a key component of the power tariff, every four months.
If a rate of 6.72 baht per unit is selected, with a Ft of 2.936 baht per unit, Egat would be able to completely clear its losses by August.
However, this option would cause electricity bills for households and businesses to skyrocket.
A rate of 4.84 baht per unit, with the Ft set at 1.05 baht per unit, would decrease Egat's financial burden to 109 billion baht.
Adopting the lowest rate of 4.77 baht per unit, with the Ft set at 0.98 baht per unit, would bring the losses down to around 114 billion baht.
The Ft calculation is based on various factors, notably gas prices.
The forecast for the average price of the gas pool in Thailand is 379 baht per million British thermal units (MMBTU), down from 466 baht per MMBTU between January and April.
Liquefied natural gas (LNG) is currently less than US$20 per MMBTU in the spot market.
The price of LNG ranged from $35-40 per MMBTU during last year's fourth quarter, according to the Energy Ministry.
Gas makes up 57.8% of the total fuels used to generate electricity in Thailand.
The country needs to import more LNG following a drop in the domestic gas supply.
Mr Khomgrich said if the current power tariff remains unchanged over the next four months, it would take around 28 months to clear Egat's losses.
This financial burden is considered to be public debt, which should be settled within three years, he said, citing a need to comply with the state's financial discipline requirements.