The state-run Electricity Generating Authority of Thailand (Egat) insists power supply in Thailand will be sufficient as it plans to import more liquefied natural gas (LNG) to support power generation in the country, says Thepparat Theppitak, the newly appointed governor of Egat.
More LNG imports by Egat and national oil and gas conglomerate PTT Plc may be necessary if demand for electricity soars during the hot season.
Mr Thepparat’s comments came after the Energy Policy and Planning Office (Eppo) said the higher level of domestic gas production may be insufficient during the hot season when demand for electricity peaks.
Eppo based its projection on the prospect of an unusually intense hot season this year, resulting from the impact of El Niño, which increases temperatures and brings drought to many countries.
Gas accounts for 60% of the fuels used to generate electricity in the country.
Up to 57% of gas comes from domestic sources, with 31% from imported LNG, and the remaining 12% from gas imports from Myanmar.
Greater use of imported LNG would be able to alleviate concerns over power supply, but this might lead to pricier power bills as LNG prices in the global market can fluctuate.
The real concern, though, is the price of LNG, said Mr Thepparat.
He said if LNG prices increase, it would affect Egat’s plan to deal with its financial problem.
A portion of the price of an electricity bill is required to reimburse Egat which shouldered huge losses after subsidising electricity prices.
If the government chooses to control the power tariff, which is used to calculate power bills, it would take a longer period of time to reimburse Egat, said Mr Thepparat.
There are fears this situation could affect Egat’s business operations.
The Energy Regulatory Commission is asking businesses and households in a public hearing which new power tariff rate they would prefer from three choices — 4.18, 4.34 or 5.43 baht per kilowatt-hour (unit).
The rate decided upon would be imposed between May and August.
A lower rate would mean it would take Egat longer to address its losses.