Thailand’s Energy Commission Agrees to Maintain Current Fuel Tariff Rate until Year End

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BANGKOK (NNT) – Thailand’s Energy Regulatory Commission (ERC) has agreed to maintain the fuel tariff (Ft) rate at minus 0.1532 baht per kilowatt-hour (unit) for the rest of this year, despite a rise in fuel costs and lower electricity demand due to travel restrictions.

ERC secretary-general Khomgrich Tantravanich said this Ft rate means the power tariff rate, which is used to calculate electricity prices, is 3.61 baht per unit. Capping the Ft rate helps people meet their living costs, but it also means state power agencies will have to bear a cost of 4.13 billion baht.

He said the ERC estimates demand for on-grid electricity in the next Ft period (September to December) to decline by 5%, from the second Ft period (May to August), to 64.5 billion units, as work from home measures continue for employees as part of the state’s efforts to control COVID-19.

The government also provided power bill discounts to help those struggling with the costs of living during the COVID-19 pandemic. This relief measure incurred a cost of 26.6 billion baht during the first COVID-19 outbreak early last year, then another 7 billion during the second outbreak, which erupted in mid-December last year.

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