BANGKOK, Thailand – Prime Minister Paetongtarn Shinawatra chaired the first National Energy Policy Committee (NEPC) meeting of 2025 at the Thai Khu Fah Building, Government House, joined by relevant ministers including Deputy Prime Ministers Phumtham Wechayachai, Pirapan Salirathavibhaga, and Pichai Chunhavajira. Also in attendance were key figures from the ministries of defense, energy, commerce, foreign affairs, industry, and the Prime Minister’s Office.
The Prime Minister emphasized that the committee must closely monitor energy prices, as they are a critical factor affecting the cost of living and economic competitiveness. She urged all parties to work together to alleviate the impact of energy costs on the public and economy. In parallel, she stressed the importance of accelerating clean energy development and investment, ensuring that policies align with global trends and timelines. The Prime Minister also called for faster revisions of criteria for purchasing electricity from clean energy sources, and supported the implementation of Direct Power Purchase Agreements (Direct PPAs) with competitive pricing.
To address short-term affordability, the PM instructed the Energy Regulatory Commission (ERC) to cap the electricity tariff (Ft) for May to August 2025 at no more than 3.98 baht per unit, and to target a maximum of 3.99 baht per unit for September to December 2025, barring significant changes in fuel costs. A new national energy plan must also be finalized promptly to guide future renewable energy purchases.
Deputy Government Spokeswoman Sasikarn Watthanajan reported that the meeting approved key measures including:
-A reduction in the Ft rate from 36.72 satang/unit to 19.72 satang/unit, using surplus profits from electricity utilities, bringing the average electricity price for May–August 2025 down to 3.98 baht/unit.
-Assigning the ERC, EGAT, PTT, and relevant agencies to maintain the electricity rate below 3.99 baht/unit for September–December 2025 without using the national budget.
-Approval to negotiate lower purchase prices for 2,180 MW of renewable power projects due to declining costs of solar and wind energy, based on the EGAT benchmark price.
-A temporary suspension of 1,488.5 MW in new renewable energy procurement under the Feed-in Tariff (FiT) scheme, pending a review of pricing structures to reflect current and future cost trends.
The meeting also acknowledged the progress of drafting a new gas pricing structure. Key principles include treating natural gas separation plants as public utilities, applying discounted pricing for sales gas based on by-product values, and tailoring gas costs for different sectors. These changes aim to lower electricity costs without impacting the petrochemical industry.
The Energy Policy and Planning Office (EPPO) will now coordinate with key stakeholders including NESDC, ERC, PTT, industry groups, and gas traders to finalize the new pricing framework for NEPC’s approval. (PRD)
