Thailand’s Energy Regulation Commission, the ERC, decided yesterday to increase the electricity tariff by 0.139 baht per unit between January and April next year. This will make it 4.63 per cent more expensive, which will be an average of 3.78 baht per unit.
ERC secretary Komkrit Tantrawanich said the rate had to be increased due to a weakening baht, a decline in hydroelectric power from outside Thailand and a reduction in fossil fuel use.
In addition, he said, the price of natural gas is rising in line with the rise in the price of crude oil. Thailand must also import liquefied natural gas (LNG) to offset the decline in natural gas supplies in the Gulf of Thailand.
He said the ERC has supported government policies and kept energy bills low for the past two years. However, with the Covid-19 crisis easing and many economies starting to recover, energy demand is rising. This increase in demand has led to a jump in the price of both oil and natural gas.
Komkrit said the ERC used four factors to determine the rate increase in the first four months of 2022.
These are:
- Estimated demand during the period?
- Estimated share of fuel used to generate electricity during that period?
- Estimated average fuel price from January to April 2022.
- Average exchange rate from September 1-30, 2021
The ERC adjusts the rate every four months instead of raising it all at once to relieve residents. Komkrit said the ERC will monitor the oil and natural gas situation and hopes the price will fall in the future.
Furthermore, until November 25, the ERC is collecting public opinion on this topic through its website, https://www.erc.or.th/
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