Thai Cabinet Gives Green Light to Electricity Cost Cut

[webfact]

File photo

 

In a move to ease financial strain, Thailand's cabinet has greenlit a reduction in electricity charges from 4.15 baht to 3.99 baht per kilowatt-hour. This decision, targeting the billing period from May 1 to August 31, aims to lessen the financial burden on households and businesses.

 

Prime Minister Paetongtarn Shinawatra, announcing the decision, stressed that this cut reflects the cabinet's commitment to aiding consumers without the need for state subsidies.

 

A final nod, however, is pending from the Energy Regulatory Commission (ERC). The Pheu Thai Party, leading the coalition government, has been a staunch advocate for driving electricity costs below the critical threshold of 4 baht per unit.

 

Energy regulators, though, find their hands somewhat tied, as a segment of the tariff is earmarked for reimbursing the Electricity Generating Authority of Thailand (Egat) and other entities for past subsidies.

 

 

 

Earlier this year, ERC voiced its readiness to cut charges by 0.17 baht per unit, conditional on the government's reduction in spending for renewable energy investment programmes.

 

Power tariffs undergo a review every four months, factoring in fluctuating costs such as fuel prices and exchange rates. The ERC's projections for the upcoming period indicated possible rates ranging from 4.15 to 5.16 baht per unit, contingent on reimbursement allocations for Egat.

 

An interesting backdrop to the decision is an ambitious agenda set by former Prime Minister Thaksin Shinawatra, aimed at slashing the electricity tariff to approximately 2.70 baht per unit. Details on how this could be achieved remain unclear.

 

Notably, a considerable hurdle in reducing costs stems from Egat's binding long-term power-purchase agreements, leading to an electricity surplus of around 30%—a figure significantly higher than global norms.

 

Despite these challenges, the cabinet's current decision underscores a significant policy direction, oriented towards providing immediate consumer relief. The impending announcement from the ERC will solidify the lower rate, pending further strategic deliberations.

 

Based on a story by Bangkok Post

 

-- 2025-04-02

 

 

[smedly]

not exactly massive is it

[stoutfella]

I didn't know there was an election coming up.

[ronster]

Their billing seems odd at times . I use same lights and air con every month and last month bill was 4200 from 2400 bht month before . It wasn't even that hot outside either to affect the air con . 🤔

[Tarteso]

Nice one👍

[Tarteso]

7 hours ago, webfact said:

Details on how this could be achieved remain unclear.

With the magic wand..?

[FlorC]

7 hours ago, webfact said:

leading to an electricity surplus of around 30%

How about closing Mae Moh power plant in Lampang then ?

[CygnusX1]

The electricity bill for my apartment in Australia, for billing periods when I'm not there and using zero electricity, is higher than the bill for my Thai condo, when I'm there for the whole billing period and running the AC 16 hours a day.

[LOS1]

34 minutes ago, ronster said:

Their billing seems odd at times . I use same lights and air con every month and last month bill was 4200 from 2400 bht month before . It wasn't even that hot outside either to affect the air con . 🤔

 

1st time I've had a 4700 bt charge in March in 11 years. As you said "it wasn't even

that hot".

[Guderian]

The UK just increased its price cap by over 6% while Thailand has reduced its electricity price by 4%. I know which one I prefer.

[John Drake]

Better than an increase or no change. I'll take it.

[Photoguy21]

2 hours ago, smedly said:

not exactly massive is it

Significant when you consider the entire system.

[Surasak]

2 hours ago, smedly said:

not exactly massive is it

Although, better than a poke in the eye with a sharp stick.

[BritManToo]

Just now, Surasak said:

Although, better than a poke in the eye with a sharp stick.

Not much, knocks 1-2bht off my leccy bill.

[Surasak]

1 minute ago, BritManToo said:

Not much, knocks 1-2bht off my leccy bill.

I feel sure you wouldn't want my leccy bill. 21K last month, all donations gratefully received, of course.

[Chongalulu]

2 hours ago, ronster said:

Their billing seems odd at times . I use same lights and air con every month and last month bill was 4200 from 2400 bht month before . It wasn't even that hot outside either to affect the air con . 🤔

Haven’t noticed anyone with Irish accents up your pole connecting cables have you…? 😉 

[spidermike007]

2 hours ago, CygnusX1 said:

The electricity bill for my apartment in Australia, for billing periods when I'm not there and using zero electricity, is higher than the bill for my Thai condo, when I'm there for the whole billing period and running the AC 16 hours a day.

I think Australia along with the United States are two of the most expensive countries in the world right now. A friend of mine who divides this time between Monaco, London and New York, tells me that he spends a lot less money in Monaco and London than he does in New York. I was in Europe last summer and I spent a lot less money on food and accommodations in Italy and France, than I do when I'm visiting Los Angeles. The US has become unaffordable for most. And it's quite likely these new tax hikes (tariffs) that are being proposed by the creep are going to push prices even higher. 

[redwood1]

2 hours ago, Surasak said:

I feel sure you wouldn't want my leccy bill. 21K last month, all donations gratefully received, of course.

 

21K ? Sir you must have the aircon set at zero 24/7....

[jcmj]

7 minutes ago, redwood1 said:

 

21K ? Sir you must have the aircon set at zero 24/7....

Nope. Same here. 13,500 last month and almost 21,000 this month. One of the downsides of owning a large home. 

[Peterphuket]

4 hours ago, spidermike007 said:

I think Australia along with the United States are two of the most expensive countries in the world right now. A friend of mine who divides this time between Monaco, London and New York, tells me that he spends a lot less money in Monaco and London than he does in New York. I was in Europe last summer and I spent a lot less money on food and accommodations in Italy and France, than I do when I'm visiting Los Angeles. The US has become unaffordable for most. And it's quite likely these new tax hikes (tariffs) that are being proposed by the creep are going to push prices even higher. 

That's what you think, well believe me in Europe they know a thing or two about it too, for example in the Netherlands, of the total amount payable, more than 50% is tax....

[SingAPorn]

Since the cut has been approved, the authorities would need to inform all the villa developpments that directly charge the homeowners. In many such developpments in Hua Hin and elsewhere, the owners directly pay the electric bills monthly to the developpement owners, who naturally highly overcharge. Another good reason to think twice before buying property in such gated villa developpements in Hua Hin or elsewhere.

[flyswat]

Don,t grizzle about your Thai Electricity bills!!! 

In Adelaide Australia the rate is $0.48 per Kilowatt hour!..more than 8 baht per Kilowatt hour!

But of course this is special "GREEN"  Electricity,..... Ridiculous prices pushed up by greedy Investment  Electricity Retailers, sandwiched by the government between electricty producers and electricity purchasers!

[hotchilli]

17 hours ago, smedly said:

not exactly massive is it

To the poorer end of the scale every little helps

[smedly]

1 hour ago, hotchilli said:

To the poorer end of the scale every little helps

to the rich that make these decisions it matters not a jot, lets publish the senior management salaries and see how many billions they earn - never mind the billions the shins have, a good decrease in electricity units would be to 3.50 but no the billions have to keep going into the greedy pockets, Thai went bankrupt for this very reason but egat is secure, guaranteed revenue for the greedy management  - it really is disguising 

[LarryLEB]

On 4/2/2025 at 1:59 PM, Surasak said:

Although, better than a poke in the eye with a sharp stick.

Or: better than a slap in the stomach with a cold, wet salmon. (though some might disagree...)

[robz]

Good thing, 4% is money too. We pay currently about 9-10K Baht --> 400 Baht.

 

Worldwide electricity prices:

https://www.statista.com/statistics/263492/electricity-prices-in-selected-countries/

[Moonlover]

On 4/2/2025 at 1:11 PM, ronster said:

Their billing seems odd at times . I use same lights and air con every month and last month bill was 4200 from 2400 bht month before . It wasn't even that hot outside either to affect the air con . 🤔

Maybe you weren't aware that that there was a 3 month subsidy on electricity bills that ended the previous month. Ours did the same.