Thai govt’s shocking transfer: Sparks fly as energy tariff will get a jolt down

The Thai government, beneath the leadership of Srettha Thavisin, has swiftly approved a plan to decrease the facility tariff, with the goal of lowering electricity bills for the basic public.
The tariff rate has been revised from four.45 baht to three.99 baht per kilowatt-hour, relevant from September to December this yr. However, for a long-term answer to high electrical energy prices, a restructuring of the Thai vitality price structure could additionally be needed.
Energy Minister Pirapan Salirathavibhaga suggested a fast solution would be to extend the period of debt repayment to the state-run Electricity Generating Authority of Thailand (EGAT).
This measure could possibly be implemented by September, avoiding a prolonged consideration process required for different choices. The new tariff price was proposed by Pirapan following a gathering with the Energy Regulatory Commission (ERC) and permitted by the cabinet on September 18.
The ERC met with Egat and PTT Plc on September 20 to debate the implementation of the ability tariff policy.
Part of the plan includes Egat adjusting its debt management and PTT decreasing its fuel sales prices to 304.seventy nine baht per million British thermal models (BTU) from 323.37 baht per million BTU.
The previous energy tariff of 4.forty five baht a unit, scheduled for September to December, was determined by three elements: lower gasoline prices, public opinion, and a need to reimburse EGAT, which reported a lack of 150 billion baht as a result of subsidising electricity bills between September 2021 and December final year.
This was primarily to alleviate the monetary pressure on people and companies ensuing from the Russia-Ukraine battle, which triggered a surge in international fuel costs. However, the facility tariff discount to three.ninety nine baht per unit will prolong the period for EGAT to clear its debt.
EGAT had beforehand insisted that it could not additional decrease electricity payments for the final four months of this yr without impacting its future investment in energy infrastructure. No nonsense suggests that a restructuring of the Thai vitality price construction could additionally be essential for a extra sustainable answer to excessive electricity costs.
A former senior energy official, who requested anonymity, suggested several ways to achieve this. These include gasoline value administration, signing more long-term liquefied natural gas (LNG) buy contracts, creating a new petroleum web site within the overlapping claim space (OCA) within the Gulf of Thailand, and importing more power from Laos.
The Federation of Thai Industries (FTI) welcomed the cabinet’s approval of a decrease power tariff however advised that the government needs to make adjustments to the Thai power worth structure for a more sustainable resolution to high electricity payments.
According to Kriengkrai Thiennukul, chairman of the FTI, the ability tariff minimize and reduction of diesel costs are a good start, but these can solely work in the quick term. Therefore, a severe inquiry into the nationwide vitality price structure is critical to keep away from a return to expensive electricity and oil, reported Bangkok Post.
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