PTT helps Thai government lower power tariffs using contract breach fine

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PTT Plc, Thailand’s national oil and gas conglomerate, is slated to assist the government in lowering the power tariff in the early part of next year. This is to be achieved through the utilisation of 4.3 billion baht (US$124) from a fine imposed on its gas supplier for a breach of contract, according to an energy official.

An inside source has indicated that PTT’s assistance forms part of the efforts to manage the power tariff, which had previously been on course to rise by 17.3% to 4.68 baht (US$0.14) per kilowatt-hour. The increase from September to December was from 3.99 baht (US$0.12) per unit, said the Energy Regulatory Commission (ERC).

 

Prime Minister Srettha Thavisin, has instructed the relevant authorities to review and reduce the rate to 4.1 baht (US$0.12) per unit. A statement from the Energy Ministry last week indicated that every effort will be made to cap the tariff at 4.2 baht (US$0.12) per unit.

With PTT’s help, the final rate could potentially be settled at between 4.1 (US$0.12) and 4.2 baht (US$0.12) per unit, according to a Ministry official who preferred to remain anonymous.

 

by Alex Morgan

Photo courtesy of Kelly Sikkema (Unsplash)

 

Full story: The Thaiger 2023-12-27

 

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[Srikcir]

"The fine from the undisclosed gas supplier, who failed to deliver the contracted amount of gas to PTT, could be used to offset power generation costs."

A mystery supplier.

Reminiscing:

In 2016 the Thailand EPC approved a 15-year LNG supply proposal state-controlled PTT had forged with Malaysia’s Petronas.  https://www.energyintel.com