The Energy Regulatory Commission (ERC) has agreed to reduce the power tariff by 5.3% to 4.45 baht per kilowatt-hour (unit), which will lead to cheaper electricity bills between September and December.
Households and businesses currently pay 4.7 baht per unit, applicable from May to August.
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 per unit, while households paid 4.72 baht per unit.
The new power tariff is based on various factors, notably lower gas prices, and it was also partly determined by public opinions surveyed by the ERC during July 7-21.
During the last four months of this year, the fuel tariff, or Ft, which is a key component of the power tariff, will be reduced by 26% to 0.66 baht per unit, down from 0.91 baht per unit in the May-August cycle, said Khomgrich Tantravanich, secretary-general of the ERC.
During the survey, the ERC asked the public to choose one of three choices of power tariff rates, based on differing periods, to reimburse the state-run Electricity Generating Authority of Thailand (Egat), which accrued a large loss after subsidising electricity bills from September 2021 to May 2023.
Egat's accumulated loss is projected to decline to 135 billion baht at the end of next month. If the rate increases to 6.28 baht per unit, which is one option, Egat's loss will be settled at the end of December, Mr Khomgrich said earlier.
The 6.28-baht rate comprises an Ft of 2.5 baht per unit and base tariff, also known as base factor, of 3.78 baht per unit.
The base tariff indicates the costs of power plants and distribution systems, while the Ft is determined by fuel costs.
The second power tariff option is 4.7 baht per unit, comprising an Ft of 0.91 baht per unit and base tariff of 3.78 baht per unit. This choice means Egat would eliminate its loss by September next year.
The third power tariff option is 4.45 baht per unit, with an Ft of 0.66 baht per unit and base tariff of 3.78 baht per unit.
Under this choice, Egat would clear its loss within April 2025.