On December 1st, 2023, Dr. Prasert Sinsukprasert, the deputy of the Thai Ministry of Energy, publicly revealed reconsideration to explore possibilities for additional reductions of the fuel tariff (Ft) from January-April of 2024 with the Energy Regulatory Commission (ERC).
The ERC previously decided to adjust the Ft rate to 89.55 Satang per unit, resulting in an average electricity cost to consumers of 4.68 baht per unit, which increased by 69 Satang per unit from the current rate of 3.99 baht.
“Admittedly, the natural gas prices in the global market are at a high level which has led to a decreased natural gas production. Consequently, there’s an increased necessity for higher imports. Initially, the Thai government anticipates reducing electricity costs to around 4.20 Baht per unit,” said Dr. Prasert.
Dr. Prasert also mentioned that there will be preliminary adjustments to the energy price structure to ensure greater fairness by increasing electricity production from low-cost sources. Additionally, discussions will be held with the Thai Budget Bureau to request central funding to further reduce electricity costs.
Furthermore, plans are in place to reduce the use of natural gas as a fuel in electricity production and increase renewable energy sources. However, renewable energy currently has relatively high costs, and excessive usage may further impact electricity costs, Dr. Prasert.