Thailand sets household power tariff cap amid fuel cost rise

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2019
The increase in the Ft rate is mainly due to higher fuel expenses and the necessity to repay debts to the Electricity Generating Authority of Thailand (EGAT) to maintain liquidity.

The Ministry of Energy has assured that household power tariffs will be capped at 4.20 baht per unit despite the increase in fuel costs. This follows the Energy Regulatory Commission’s (ERC) decision to adjust the fuel tariff (Ft) rate to 0.8955 baht per unit from January to April next year, leading to an overall rise in energy bills to 4.68 baht per unit.



The increase in the Ft rate is mainly due to higher fuel expenses and the necessity to repay debts to the Electricity Generating Authority of Thailand (EGAT) to maintain liquidity. A key contributor to the fuel cost hike is the fluctuating price of natural gas, influenced by the Russia-Ukraine conflict and increased winter demand in Western countries.



Thailand also faces reduced natural gas production capacity due to a concessionaire transition in the Gulf of Thailand, prompting more fuel imports. The ministry expects natural gas production to return to normal by April and is seeking a budget to aid vulnerable groups with their electricity bills during these heightened energy prices. (NNT)