Battle to keep power bills flat amid fears of gas price hike
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Battle to keep power bills flat amid fears of gas price hike

The 4.18-baht per unit tariff will be applicable until the end of August, which would lead the authorities to impose a new rate in the cool season.
The 4.18-baht per unit tariff will be applicable until the end of August, which would lead the authorities to impose a new rate in the cool season.

The government will try to keep the power tariff unchanged for the rest of the year to curb electricity bills, amid predictions that gas prices will rise in the second half, despite more financial pressure on the state budget.

Businesses and households are likely to pay bills determined by the current tariff rate of 4.18 baht per kilowatt-hour (unit) during the last four months of this year, although the latest calculation made by the Energy Regulatory Commission (ERC) indicates that the rate must increase, Energy Minister Pirapan Salirathavibhaga said on Friday.

The 4.18-baht-per-unit rate will be applicable until the end of August, leading the authorities to impose a new rate in the cool season.

"I have prepared for this prospect for a while by finding ways to maintain the power tariff rate," said Mr Pirapan.

He did not provide any details concerning the budget or how to regulate the power tariff.

Last week, the ERC estimated the government may need to allocate 28 billion baht as a subsidy to fix the tariff at 4.18 baht per unit, and would need to extend the period to pay back money it owes to the Electricity Generating Authority of Thailand (Egat) and PTT Plc, the country's major gas seller.

Gas makes up 63% of the fuels used for power generation in the country.

Egat and PTT helped the government curb the power tariff from September 2021 to April this year, but this incurred a 15-billion-baht debt, necessitating repayment to Egat and PTT, and led to Egat incurring a loss of up to 98 billion baht.

An industry specialist said the power tariff cap of 4.18 baht per unit is set to remain in place for only four months. After December, global gas prices will continue to rise, owing to a seasonal surge in energy demand for heating homes and workplaces around the world during Winter, which will push up the cost of Thailand's gas imports.

The ERC is asking businesses and households in a public hearing to choose from three alternative power tariff rates, with the rise ranging from 11-44% due to higher gas prices and the need to use part of the power bill to reimburse Egat and PTT.

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