The Energy Regulatory Commission (ERC) will make a cut to the power tariff for businesses after concerned groups petitioned Prime Minister Prayut Chan-o-cha to lower electricity prices.
The decision came after the premier told energy officials to find ways to reduce electricity bills for businesses.
Business groups, led by the Federation of Thai Industries, petitioned Gen Prayut, saying they're worried over production cost increases at a time of global recession and the prolonged Russia-Ukraine war.
Their main issue was the planned 20.5% power tariff increase from 4.72 baht per kilowatt-hour (unit) to 5.69 baht per unit between January and April this year.
Energy officials on Saturday announced it would increase the power tariff by only 13% to 5.33 baht per unit, following a change in its estimate of natural gas prices, according to an ERC press release. The higher power tariff is being driven by a higher fuel tariff (Ft).
Gas makes up 60-65% of the fuel used for electricity generation in Thailand, with other sources, including coal and renewable energy.
Thailand needs to import more costly liquefied natural gas (LNG) following a drop in the cheaper domestic gas supply from the Gulf of Thailand.
The commission earlier estimated the natural gas price at 493 baht per million British thermal unit (BTU) but later revised it down to 466 per million BTU, leading to a lower power tariff.
The ERC also agreed to adjust its diesel price estimate to 28.22 baht per litre, down from 31.9 baht per litre.
Also factored in the power tariff calculation is the estimate of the foreign exchange rate, which is reduced from 37 baht per US dollar to 35.68 baht per dollar.
The new calculation caused Ft for businesses to reduce to 1.5492 baht per unit, down from the previous estimate of 1.9044 baht per unit.
Officials have maintained the power tariff and Ft for households at 4.72 baht per unit and 0.9343 baht per unit, respectively.
Other measures to control the power tariff include using cheaper fuels like coal to produce electricity. The country may delay the decommissioning of its lignite-fired power plants, according to the ERC.
Deputy Prime Minister and Energy Minister Supattanapong Punmeechaow said authorities will better manage fuels used by power plants for electricity generation.
Cheaper fuels will receive the first priority for usage, he said.