Bangkok
Thai households consuming modest amounts of electricity are set for significant relief under a new progressive tariff structure announced by Energy Minister Akanat Promphan, which hopes to lower power bills by as much as 20% for millions of families while encouraging energy conservation and rooftop solar adoption.
Speaking on Tuesday, Minister Akanat said the revised rates would cap charges at no more than 3 baht per unit for the first 200 units of monthly consumption. Subsequent tiers would include 3.95 baht per unit for 200–400 units and around 5 baht per unit for usage exceeding 400 units. The overhaul applies exclusively to residential consumers and follows a progressive scale similar to income tax brackets, ensuring that lighter users benefit most while heavier consumers face higher marginal rates.
The changes target Thailand’s approximately 22–23 million households, with around 14–20 million expected to see direct savings, particularly those using 200 units or fewer per month. Households in the lowest tier could enjoy a full 20% reduction compared to the current average rate of about 3.88 baht per unit. Even higher-usage homes would benefit from the subsidized lower tiers, translating to an overall average saving of roughly 10%. The government anticipates a 30–40% drop in overall system costs through broader reforms.
Akanat explained that the new structure does not affect large businesses, industrial users, farmers, or those on time-of-use tariffs. He clarified that there is no flat 5-baht rate for high consumption; instead, the progressive system applies higher rates only to excess usage.
The minister attributed recent pressure on electricity prices to volatile global energy markets, particularly sharp rises in imported liquefied natural gas (LNG) costs amid ongoing Middle East tensions. These factors have heavily influenced Thailand’s gas-dependent power generation, pushing up the fuel tariff (Ft) component of bills.
The proposal forms part of a wider energy reform package that includes faster approvals and financing support for rooftop solar installations, as well as efforts to reduce reliance on imported gas. It will be submitted to the Cabinet soon, and, if approved, is expected to take effect in the June 2026 billing cycle. Authorities are also eyeing a solar buyback rate of around 2.2 baht per unit for surplus electricity fed back into the grid.
This marks the first major overhaul of Thailand’s tiered electricity tariff in over two decades. Officials hope the changes will protect vulnerable households, promote energy efficiency, and ease the broader economic burden amid fluctuating global fuel prices. Further details are expected following Cabinet and National Energy Policy Council reviews.
