Electricity bills are expected to be slightly lower during the last four months of this year, with the power tariff decreasing by about 20 satang baht per kilowatt-hour (unit) in line with cheaper gas prices.
Regulators expect to make an adjustment to the gas pool price, which partly determines power costs and is calculated from the prices of gas supplied from the Gulf of Thailand and Myanmar, as well as imported liquefied natural gas (LNG).
The average pool price is expected to dip by 53% to 346 baht per million British thermal units (BTU), down from the rate in the May-August cycle, said Khomgrich Tantravanich, the secretary-general of the Energy Regulatory Commission (ERC).
Businesses and households are now paying 4.70 baht per unit for power from May 1 to Aug 31, a slight decrease from the first four-month cycle.
During the first four months of this year, businesses paid 5.33 baht per unit, up 13% from the previous record high of 4.72 baht, while households paid 4.72 baht.
The decrease in the average gas pool price, which is estimated by the oil and gas conglomerate PTT Plc, is attributed to greater supply of inexpensive domestic gas and reduced imports of LNG, said Mr Khomgrich.
Higher imports of costly LNG last year were blamed for driving up power bills.
Gas makes up around 60% of total fuels used for electricity generation in Thailand.
He said LNG imports would decrease to 27 shipments at a price of US$13 per million BTU later this year, down from 34 shipments at $15.50 per million BTU in the second four-month cycle.
PTT Exploration and Production Plc, which operates the Erawan gas block in the Gulf of Thailand, plans to double gas production to 400 million standard cubic feet per day (MMSCFD) in July, rising to 600 MMSCFD by December.
The 20-satang decrease is also based on a need to pay back 130 billion baht to the state-run Electricity Generating Authority of Thailand (Egat) over 28 months, starting from May this year.
Egat faced a huge loss after the government instructed it to subsidise electricity prices during the Covid-19 pandemic.
Mr Khomgrich said the decrease in the power tariff has not been finalised as authorities need to consider other factors, including high global gas demand in the cool season and decreasing gas production in Myanmar.
In another development, the ERC expects details of the “utility green tariff” to be announced in October. Egat has been conducting trials of the concept, intended to encourage businesses to switch to renewable energy.