Energy policymakers are optimistic regarding a long-term reduction in the prices of Thai electricity bills, with the power tariff decreasing to 3.70 baht per kilowatt-hour (unit), attributed to ongoing attempts to reduce losses in the country's power supply system and the impact of US President Donald Trump's new energy policy.
The current power tariff, which is used to calculate electricity bills, stands at 4.15 baht a unit, applicable between January and April this year.
"The 3.70-baht rate will not be applied as soon as May, but we will at least see significant progress in some of our efforts," said Prasert Sinsukprasert, energy permanent secretary.
He was referring to the Energy Regulatory Commission's (ERC) recent proposal to cut the power tariff by 0.17 baht a unit by asking the cabinet or the National Energy Policy Council, which is chaired by Prime Minister Paetongtarn Shinawatra, to reduce state spending on a policy to promote investment in renewable energy.
Government spending on renewable energy promotion, which is known as the feed-in tariff and adder tariff, together with spending on other purposes under state policy, comprises 4% of the power tariff, according to energy officials.
This policy expense refers to money spent on state policies, including the promotion of clean energy and support for the Energy Development Fund.
"The process to reduce the power tariff by 0.17 baht per unit should be completed in the next two months," said Mr Prasert.
However, it is too soon to say that businesses and households will see the power tariff officially reduced to 3.98 baht a unit in May as a result of the policy expense adjustment, he said.
Other measures aimed at cutting the power tariff to 3.70 baht a unit in the long term include identifying and eradicating losses in the country's power generation, distribution and transmission system, said Mr Prasert.
One example is the need to review the state's policy of giving financial support to provincial officials' management of lights installed in public places, he said.
Poonpat Leesombatpiboon, secretary-general of the ERC, said Trump's plan to promote more production of fossil fuels may lead to lower prices of liquefied natural gas (LNG) in the global market.
Trump said America is facing high energy prices and the prospect of growing electricity demand, driven by artificial intelligence technology. He wants to solve this power issue by cutting red tape in approval processes to explore and produce petroleum, according to media reports.
Gas accounts for 60% of total fuels used for power generation in Thailand. Half of this amount is imported LNG, whose prices fluctuate easily, resulting in a high power tariff.
