Electricity set to rise

BANGKOK: -- The Electricity Generating Authority of Thailand (Egat) said yesterday that electricity prices would increase more than 4 per cent over the next five months.

Nationally, rates will first increase by just one satang per kilowatt hour (unit) next month followed by a more dramatic 10 satang per unit hike in October, said Narongsak Vichetpanthu, Egat's acting governor.

The increases will raise the nationwide average electricity price per kilowatt hour to Bt2.74, a 4.2-per-cent increase from the current level. The hikes will come on the heels of a 12.16 satang - or 4.84 per cent - increase in February.

Egat's fuel tariff is subject for review every four months.

Electricity prices are largely determined by the price of natural gas and fuel oil, the latter of which has been spiralling as of late. World oil prices have risen rapidly with US light crude hitting a 21-year high at the start of this week.

Thanks to the formula used to determine the price of domestic natural gas - which runs most of the country's power plants - the impact of spiking world oil prices has been postponed by three or four months.

Natural gas prices, he said, were stable for now but are expected to increase Bt4 per one million BTUs (British Thermal Units) to Bt158 in July and by another Bt2 in October.

Egat has discussed with the government the option of establishing such a fund, he said. The government would have to spend about Bt1 billion a month to subsidise 10 satang per unit of electricity.

Expected increases in electricity tariffs will add to Thailand's worsening energy costs. The government has been forced to increase the price of petrol after first capping it on January 10.

--The Nation 2004-05-20

Shocking news!

> Electricity set to rise

From anywhere between 180-210 Volts most of the time, we will now get 210-240 V some of the time? ;-)