BANGKOK, Thailand – Energy Minister Akanat Promphan has confirmed a new electricity tariff structure expected to lower household power bills by about 30 to 40 percent, with implementation planned for the June billing cycle. The revised rates will apply only to residential users and will not cover industrial, commercial, agricultural, or time-of-use customers.
Under the new structure, the first 200 units of electricity will be priced at no more than 3 baht per unit, followed by 3.95 baht per unit for usage between 200 and 400 units, and a rate above 5 baht per unit for consumption exceeding 400 units. The system follows a progressive model, meaning higher rates apply only to additional usage rather than total consumption.
Officials said earlier increases in electricity prices were driven by higher fuel adjustment costs linked to imported gas, especially liquefied natural gas tied to global markets. Price volatility, including spikes linked to tensions in the Middle East, has contributed to higher generation costs in a system that relies heavily on gas.
The reform is expected to affect about 23 million households nationwide, with all users benefiting from lower rates in the initial tier. Lower-usage households are expected to see the greatest savings, while higher-usage households will still benefit from reduced costs in early tiers. The proposal will be submitted to the Cabinet before further review, alongside measures to support rooftop solar adoption and allow households to sell excess electricity back to the grid. (NNT)
