The Federation of Thai Industries (FTI) expressed hopes that the rates for the new power tariff will be reduced before it is set to take effect at the end of this month.
FTI Vice-chairman Isares Rattanadilok na Phuket stated that the reduction to the 4.77 baht per kilowatt-hour (unit) rate is viewed as an important decision by the current government, noting that the power tariff should be lower than 4.4 baht a unit to reduce the cost of living for residents and businesses amid economic uncertainties.
The Energy Regulatory Commission (ERC) has previously announced that households and businesses would pay the same tariff rate of 4.77 baht per unit from May to August. The agency stated that the tariff is based on calculations on liquefied natural gas (LNG) prices and a need to pay back money to EGAT that subsidized electricity prices between September 2021 and December of last year.
The current rates, which end on April 30, are 5.33 baht per unit for businesses and 4.72 baht per unit for households.
Echoing the FTI’s sentiment, the Joint Standing Committee on Commerce, Industry, and Banking (JSCCIB) said that the new rate could be reduced to alleviate the financial burden for households and businesses. The commission recommended that the ERC keep the payback period to EGAT at three years rather than cutting it to two years, as well as maintain its imported LNG price estimate in line with the drop in the spot market for its tariff calculations.
The JSCCIB recently submitted a petition letter to the cabinet asking for a reconsideration of the tariff rate on April 10, 2023. (NNT)