ERC approves new tariff, reducing Thailand’s electricity costs

[webfact]

 

The Energy Regulatory Commission (ERC) has approved a new electricity tariff of 3.99 baht per kilowatt-hour, a reduction aimed at decreasing power bills for households and businesses for the remaining four months of this year. This change is a response to the government’s energy price policies.

 

In its initial meeting on September 13, the cabinet agreed to lower the electricity tariff from 4.45 baht to 4.10 baht per unit. However, in a subsequent meeting on September 18, it resolved to further reduce the rate to 3.99 baht per unit. This rate was proposed by Energy Minister Pirapan Salirathavibhaga after discussions with the ERC, as revealed by government spokesperson Chai Watcharong.

 

Khomgrich Tantravanich, secretary-general of the ERC, explained that the electricity tariff reduction also involves adjusting the fuel tariff (Ft), a crucial component of the power tariff. It is set to decrease from 0.66 baht per unit to 0.2048 baht per unit. The Ft, initially representing float time, is a fuel adjustment charge influenced by various factors such as fuel prices, electricity purchases, and other expenses in line with government policy.

 

by Alex Morgan 

Photo: thaipbsworld.com

 

Full story: The Thaiger 2023-10-06

 

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[Crossy]

Bu99er, that's messed up my ROI calculations for our solar

 

[retarius]

Srettha absolutely brilliant man, they should make him PM forever (or as long has he keeps making my electric bill smaller).

Does anyone know of the tariff for 3 phase electric is higher than the normal tariff?

[BKKBike09]

1 hour ago, retarius said:

Srettha absolutely brilliant man, they should make him PM forever (or as long has he keeps making my electric bill smaller).

You'll likely be paying for that reduction in other ways.

 

It's costing billions of USD (yes, USD) to do this. Not to mention billions more for subsidised diesel and LPG.

 

This was from July 2022 - so add another 15 months of subsidy burden up to Oct 2023.

 

EGAT has shouldered Ft almost 100 billion Baht over the past year, while a loan of 25 billion Baht for liquidity support is still not enough for its operation. To prevent effects on energy security in the long term, EGAT calls for government support. The retained earnings gained from managing its assets to generate and transmit electricity are not cash; therefore, they cannot keep electricity tariff rate.

https://www.egat.co.th/home/en/20220719e/

 

[motdaeng]

is it not the industry and large consumers who benefit the most from the reduced electricity prices?

the poor people might pay 50 to 100 baht less, which doesn't help the poor much ...

 

i think, the poor people in the country need real support, not the middle class and the wealthy one!

or am i mistaken in this view?

 

 

[2baht]

2 hours ago, webfact said:

the cabinet agreed to lower the electricity tariff from 4.45 baht to 4.10 baht per unit.

Should I order the Benz? ????

[John Drake]

Will this mean a cut in maintenance? More power outages? Reduced repair times? Where I live, I get three or four power outages per year, and they last around 45 to 50 minutes. That's fewer than I experienced back in the US. Right now, electric power is pretty reliable in my area. Hope it stays that way.

[tai4de2]

Isn’t electricity price based on how much you consume? I thought the first few dozen units are cheaper… my bills this year seem to be more like 3.5 baht/unit. 

[redwood1]

2 hours ago, BKKBike09 said:

You'll likely be paying for that reduction in other ways.

 

It's costing billions of USD (yes, USD) to do this. Not to mention billions more for subsidised diesel and LPG.

 

This was from July 2022 - so add another 15 months of subsidy burden up to Oct 2023.

 

EGAT has shouldered Ft almost 100 billion Baht over the past year, while a loan of 25 billion Baht for liquidity support is still not enough for its operation. To prevent effects on energy security in the long term, EGAT calls for government support. The retained earnings gained from managing its assets to generate and transmit electricity are not cash; therefore, they cannot keep electricity tariff rate.

https://www.egat.co.th/home/en/20220719e/

 

No worry just tax the farangs...

[hotchilli]

3 hours ago, motdaeng said:

is it not the industry and large consumers who benefit the most from the reduced electricity prices?

the poor people might pay 50 to 100 baht less, which doesn't help the poor much ...

 

i think, the poor people in the country need real support, not the middle class and the wealthy one!

or am i mistaken in this view?

 

 

Help is help however it comes.

[dinsdale]

My apartment put the price up last time when the price went up. I'm sure they will put the price down now the price has gone down. ????????????

[trainman34014]

4 hours ago, 2baht said:

Should I order the Benz? ????

Mr DIY have 1/43 Model ones at around 220 Baht each !

[MJCM]

3 hours ago, tai4de2 said:

Isn’t electricity price based on how much you consume? I thought the first few dozen units are cheaper… my bills this year seem to be more like 3.5 baht/unit. 

Yep it's a sliding scale

 

These are the old prices.

 

First 150 kWh.
( 0 – 150 th)
3.2484 THB per kWh
Next 250 kWh.
( 151 st – 400 th)
4.2218 THB per kWh
Over 400 kWh.
( 401 st and over)
4.4217 THB per kWh

 

And do please NOTE these prices are exclusive of Ft (Fuel Surcharge), VAT, and Service Charge.

 

At 3.5THB per unit how much electric did you use then? Not a lot I guess

[tai4de2]

Exactly. So I'm confused about the "new tariff" being 3.99 baht/unit. Is that for the highest consumption tier? Cuz that price would be substantial price *increase* for people who don't use more than 150 units/month.

[motdaeng]

18 hours ago, hotchilli said:

21 hours ago, motdaeng said:

is it not the industry and large consumers who benefit the most from the reduced electricity prices?

the poor people might pay 50 to 100 baht less, which doesn't help the poor much ...

 

i think, the poor people in the country need real support, not the middle class and the wealthy one!

or am i mistaken in this view?

 

 

Expand  

Help is help however it comes.

you're correct! 

 

in my opinion, a better approach would be to implement a price reduction solely for individuals who consume

less than 150 units per month. i think this reduction should not be extended to the middle class, rich people

or businesses, as they not need such financial assistance.

 

[MJCM]

5 hours ago, tai4de2 said:

Exactly. So I'm confused about the "new tariff" being 3.99 baht/unit. Is that for the highest consumption tier? Cuz that price would be substantial price *increase* for people who don't use more than 150 units/month.

Correct, Afaik the rates will be the same only the top rate will be lowered (but we have to wait and see as always)

 

But the clue for people who don't use a lot in that Post is this.

 

On 10/6/2023 at 8:18 AM, webfact said:

explained that the electricity tariff reduction also involves adjusting the fuel tariff (Ft), a crucial component of the power tariff. It is set to decrease from 0.66 baht per unit to 0.2048 baht per unit. The Ft, initially representing float time, is a fuel adjustment charge influenced by various factors such as fuel prices, electricity purchases, and other expenses in line with government policy.

So instead of paying 0,66 THB per Unit extra it will be lowered to 0,2048 THB.

 

So for example if you use 100 Units, with Ft 0,66 (it's actually 0,6689 at the moment) you paid 100 x 0,66890 = 66,89 THB extra. With the lowered Ft you would only pay 100 x 0,2048 = 20,48 THB extra.

 

And not long ago the Ft rate was 0,98270 (so almost 1 THB extra per unit) (but there was a discount structure in place especially for the people who used LESS then 300 UNITS)

Edited October 7, 2023 by MJCM