Shocking surge: Thai electricity tariffs set to spark debate

[snoop1130]

 

The Energy Regulatory Commission (ERC) announced a public consultation from today, July 12, until July 26 to discuss the final electricity tariff adjustment of the year. The proposed adjustments could see electricity bills rise from September to December this year, with costs potentially increasing from 4.18 baht per unit to between 4.65 and 6.01 baht per unit.

 

The Secretary-General and spokesperson of the ERC, Poonpat Leesombatpiboon revealed that the Fuel Tariff (FT) might need to be adjusted upwards by 46.8 to 182.9 satang per unit, combined with the base electricity rate of 3.7 baht per unit. This adjustment would result in the electricity tariff for the end of 2024 increasing to between 4.65 and 6.01 baht per unit.

 

The ERC is considering three options to manage the real cost burdens incurred by the Electricity Generating Authority of Thailand (EGAT). These options will be open for public feedback on the ERC’s website before a final decision is made.

 

The first option involves repaying the full outstanding cost burden of 98.6 million baht, equating to 163 satang per unit. This would cover the fuel and electricity purchase costs EGAT has borne on behalf of the public from September 2021 to April 2024.

 

Including the FT retail price, the total adjustment would be 223 satang per unit, reflecting a cost trend of 34 satang per unit for September to December 2024 and an AFGAS value of 15 million baht. This would bring the total increase to 188 satang per unit, resulting in an average electricity cost (excluding VAT) rising by 44%, from 4.18 baht to 6.01 baht per unit.

 

 

The second option proposes repaying the outstanding cost in three instalments of 32.8 million baht each, which translates to 54 satang per unit. Combined with the FT retail price of 114 satang per unit, and the same cost trends and AFGAS values as the first option, the total adjustment would be 79 satang per unit.

 

Clearing debts

 

By the end of December 2024, the remaining cost burden would be 65.6 million baht. This would result in an average electricity cost (excluding VAT) increasing by 18%, from 4.18 baht to 4.92 baht per unit.

 

The third option involves repaying the outstanding cost over six instalments of 16.4 million baht each, equating to 27 satang per unit. By the end of December 2024, the remaining cost burden would be 82 million baht.

 

Including the FT retail price of 87 satang per unit, the cost trends, and AFGAS values, the total adjustment would be 52 satang per unit. This option would see the average electricity cost (excluding VAT) increasing by 11%, from 4.18 baht to 4.65 baht per unit.

 

Poonpat explained that these adjustments are influenced by various uncontrollable factors, leading to higher fuel production costs. Coupled with the gradual repayment of previous fuel debt, these adjustments reflect the recent weakening of the baht against the US dollar, from 33 baht to 36.6 baht per dollar, reported KhaoSod.

 

By Ryan Turner

Image courtesy of KhaoSod

 

Source: The Thaiger 2024-07-12

 

Get our Daily Newsletter - Click HERE to subscribe

[webfact]

Electricity price for September-December to rise

 

The Energy Regulatory Commission may have to increase the price of electricity for the September-December period to between 4.65 baht/unit and 6.01 baht/unit, from the current rate of 4.18 baht/unit, said Poonpat Leesombatpiboon, secretary-general of the Office of Energy Regulatory Commission (OERC).

 

He said that the OERC will, however, hold public hearings via its website, to gauge opinions about the price rise, from Friday through July 26.

 

There are three price options proposed by the OERC. 6.01 baht/unit (up 44%), 4.92 baht/unit (up 18%) and 4.65 baht/unit (up 11%).

 

Poonpat said that the baht currency has weaken against the Greenback, to 36.63 baht per dollar (down by 1.29 baht per dollar) for the period from May to August. 

 

Full story: Thai PBS 2024-07-13

 

Get our Daily Newsletter - Click HERE to subscribe

[Suua]

They can do whatever they like.....I have a functioning solar system and will never pay an electricity bill (over 120 baht) ever again.

[rwill]

Yeah!  My new home will be completed in about a month and solar system is already installed.

 

Don't know if it is big enough to provide all the electricity.  10K inverter and 20K of batteries.  Can add more later if needed.  Thinking of getting an EV with bidirectional charging for extra storage.

[hotchilli]

Electricity prices will always creep up but never come down.

[thesetat2013]

9 minutes ago, rwill said:

Yeah!  My new home will be completed in about a month and solar system is already installed.

 

Don't know if it is big enough to provide all the electricity.  10K inverter and 20K of batteries.  Can add more later if needed.  Thinking of getting an EV with bidirectional charging for extra storage.

Good idea. Have looked into doing this for my farm as well. But currently the cost did not seem to outweigh paying the bill monthly. If they raise the cost of electric so much then my bill will skyrocket. Changing that status and making it feasible to switch to only electric solar. Are you planning to sell the excess back to the electric company? I heard that was an option also. 

[watchcat]

5 minutes ago, hotchilli said:

Electricity prices will always creep up but never come down.

 

Same with food, up because diesel is up, but never caome down,

[Will B Good]

34 minutes ago, Suua said:

They can do whatever they like.....I have a functioning solar system and will never pay an electricity bill (over 120 baht) ever again.

 

What would you estimate the payback time to be (including the lost opportunity cost of capital.....at say.....5%?)

 

Serious question.

[retarius]

This might change the equation for the value of solar power. But I would need battery storage for night use. 

[JAS21]

50 minutes ago, Suua said:

They can do whatever they like.....I have a functioning solar system and will never pay an electricity bill (over 120 baht) ever again.

Yes … so do many of us, but you have to feel for the poor and there a lot more of those than there are rich.

[NotEinstein]

While the cost increases may make solar investment more attractive, the most important aspect tends to get over-looked - risk. Owning solar at the moment reminds me of what is was like when cars were first available - the owner had to know how it worked so as to be able to repair it, or have a servant for it. Adding batteries to the equation only makes it worse. I suppose, at some point, enterprising individuals will start selling service contracts to maintain solar installs.

[motdaeng]

9 minutes ago, JAS21 said:

Yes … so do many of us, but you have to feel for the poor and there a lot more of those than there are rich.

 

i do agree, the poor people should be supported. 

 

but everything has to be seen in relation: the poor are using (e.g.) 150 units per month and

the price increases by 50 satang, resulting in a 75 thb increase in the monthly bill...

 

[KhunLA]

14 minutes ago, Will B Good said:

 

What would you estimate the payback time to be (including the lost opportunity cost of capital.....at say.....5%?)

 

Serious question.

Depends on a lot of factors.   Cost obviously, how large a system, with or without ESS/battery back up for none production hours, 14 hrs overnight for us, from 1800-0800 hrs.

 

Our ROI is, will be from 3.7yrs to 6yr, depending how abusive we are with the ACs, and if driving EV local or O&A (20k kms a year).   Pretty much base on low PEA & petrol bills of ฿3000 each of month (฿6k), or abusive/high use bills of ฿5000 each (฿10k), during the month.

 

Without the EVs, ROI would be a bit longer, 8-10 yrs.   That's being 'off grid', and the ESS was near 42% the cost of installation, ฿185k of the ฿445k  8kWh inverter w/20kWh of ESS.   Self installed 5 kWh system, no ESS would be less expensive & supplement most folk's bill nicely.

 

How many units/kWh a month do you use now (printed on your bill).  Some months we use 500-700kWh, others we used 1000+kWh.   The EV use seems to be constant, 20k kms a year.

 

If local driving EV saves about ฿54k a year, if all solar.  If we had to use grid, savings still high, at ฿42k a year, as @ ฿5 a kWh, PEA would only cost ฿12k a year for 20k kms.  PEA is that much cheaper than PTT 91.

[NanLaew]

Is the former Prime Minister still Chairperson of this mysterious committee that conjures up the "Ft" calculation on electric bills? I recall learning that he was in charge of this earlier this year, when the heat-induced surge in March and April's electric bills was literally a hot topic.

[KhunLA]

23 minutes ago, NotEinstein said:

While the cost increases may make solar investment more attractive, the most important aspect tends to get over-looked - risk. Owning solar at the moment reminds me of what is was like when cars were first available - the owner had to know how it worked so as to be able to repair it, or have a servant for it. Adding batteries to the equation only makes it worse. I suppose, at some point, enterprising individuals will start selling service contracts to maintain solar installs.

Actually not complicated at all, if mechanically inclined.  A few members installed, maintain (very little), and upgrade their own systems.  YT will talk you through installing.  Doesn't seem difficult at all.

[Bandersnatch]

57 minutes ago, Will B Good said:

 

What would you estimate the payback time to be (including the lost opportunity cost of capital.....at say.....5%?)

 

Serious question.

 

Payback is a popular financial analysis tool because it’s simple to understand, but it’s not very sophisticated.

 

For example a single 500W panel and matching inverter will never produce more power than you can use so no curtailment (wasted power) such a system could produce a payback of less than a year but the savings would be very small. The bigger the system, the bigger the savings and the longer the payback.

 

You said you wanted to include opportunity cost and cost of capital, these are different tools so have to be applied separately.

 

A 10 year payback is an investment that is producing a 10% return on investment.

 

The opportunity cost is cost of the lost opportunity. So if Daft Coin made 20% last year,  not investing in it this year potentially lost you 20%.

 

I have an off-grid system (no meter) Due to the diminishing returns with solar, the closer you get to 100% covering your electric bill the bigger your system needs to be.

 

Batteries are expensive, but adding a small (say 5kWh) battery means that you will get more value from your system as the battery acts as a buffer for times when solar production drops.

 

The bigger your current electric bill is, the bigger the potential savings are. I have 2 EVs and an electric motorbike and my solar system powers them and my house without a meter. I do use my EV for extra backup power. My payback is 6 years.

 

 

 

 

 

 

 

 

 

[ikke1959]

They want to have benefit from the 10k handout too.. Giving with one hand money taking it back with the other hand... result the people who get the money will not benefit, as this is the first business already that is rising the price.... next will the petrol, and than others will follow

[Srikcir]

22 minutes ago, NanLaew said:

Is the former Prime Minister still Chairperson of this mysterious committee

Samurai Suksumek is Chairman of ERC and former Board Member of partial state-owned PTT GCPC through PTT as majority ownership.

[jippytum]

The  electricity tariff has been reduced and subsidised sincr covid so an increase is not unfair  this time. 

[statman78]

I’m glad we decided to add some additional panels to our current solar power system.  They should be installed next week.

[Grumpy one]

Time to get a long heavy duty extension cord, for when the neighbours go away   

[ronster]

Will be installing solar in coming months as electric bills are 5-6000bht a month .

No idea how they are so much as that is for one large and one medium fridge, one TV,one fan and an inverter air con unit that is on 20 hrs a day due to dogs love of it 😁.

[smedly]

how many subs - that ?

 

EGAT is not a private company, electricity prices have sored here hitting the poorest hard

[BritManToo]

2 hours ago, Will B Good said:

 

What would you estimate the payback time to be (including the lost opportunity cost of capital.....at say.....5%?)

 

Serious question.

Payback time .....

3-4 years without batteries.

6-8 years if you have batteries.

 

I've been 80% solar for the past 4 years, best part is no more power cuts. Also solar reduces my grid consumption to the cheapest rate of 4bht/unit.

Edited July 13 by BritManToo

[BritManToo]

2 hours ago, NotEinstein said:

While the cost increases may make solar investment more attractive, the most important aspect tends to get over-looked - risk. Owning solar at the moment reminds me of what is was like when cars were first available - the owner had to know how it worked so as to be able to repair it, or have a servant for it. Adding batteries to the equation only makes it worse. I suppose, at some point, enterprising individuals will start selling service contracts to maintain solar installs.

Had my solar going 4 years, in that time my niece shorted it out once, turn all the fuses off, turn all the fuses on and everything working again. Not that difficult!

[edwinchester]

2 hours ago, Will B Good said:

 

What would you estimate the payback time to be (including the lost opportunity cost of capital.....at say.....5%?)

 

Serious question.

My 5Kw system cost 90k bht installed. I'm saving about 2500 bht a month so payback sometime in year four.

[smedly]

1 hour ago, jippytum said:

The  electricity tariff has been reduced and subsidised sincr covid so an increase is not unfair  this time. 

my bills say different, haven't looked at it in great detail all I know is that my bill has increased month on month year on year by some 40%

 

[superal]

1 hour ago, Bandersnatch said:

 

Payback is a popular financial analysis tool because it’s simple to understand, but it’s not very sophisticated.

 

For example a single 500W panel and matching inverter will never produce more power than you can use so no curtailment (wasted power) such a system could produce a payback of less than a year but the savings would be very small. The bigger the system, the bigger the savings and the longer the payback.

 

You said you wanted to include opportunity cost and cost of capital, these are different tools so have to be applied separately.

 

A 10 year payback is an investment that is producing a 10% return on investment.

 

The opportunity cost is cost of the lost opportunity. So if Daft Coin made 20% last year,  not investing in it this year potentially lost you 20%.

 

I have an off-grid system (no meter) Due to the diminishing returns with solar, the closer you get to 100% covering your electric bill the bigger your system needs to be.

 

Batteries are expensive, but adding a small (say 5kWh) battery means that you will get more value from your system as the battery acts as a buffer for times when solar production drops.

 

The bigger your current electric bill is, the bigger the potential savings are. I have 2 EVs and an electric motorbike and my solar system powers them and my house without a meter. I do use my EV for extra backup power. My payback is 6 years.

 

 

 

 

 

 

 

 

 

Fascinating subject and thanks for your video but I am only really interested in a basic solar system , without batteries , that can run 2 air cons , using 42000 btu , a large display fridge and 4 ceiling fans .For me it is all about the months of March , April , May & June when the temperature is high and so are my bills . The rest of the year my consumption and bills are normal range . So what do you think the system would cost including installation by a competent person ? BTW , keep it simple please because like many a layman the technicalities of solar are beyond my understanding . 

[tomazbodner]

2 hours ago, JAS21 said:

Yes … so do many of us, but you have to feel for the poor and there a lot more of those than there are rich.

And then there is one hailstorm, severe flooding or short circuit that can change his fortunes...

[CallumWK]

19 minutes ago, edwinchester said:

My 5Kw system cost 90k bht installed. I'm saving about 2500 bht a month so payback sometime in year four.

 

a 5Kw system can produce on the very best circumstances 416 kwH per month, in real life significantly less though,so how that can save you 2500 baht per month is a mystery to me.

But it is clear that all those solar and EV fanboys are very liberal (pun intended) with their calculations

Edited July 13 by CallumWK