Higher electricity prices to hit large Thai families

Higher electricity prices to hit large Thai families

Tiered system aims to ease burden on low-consumption households

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Higher electricity prices to hit large Thai families

Large households and small businesses operating from residential properties are expected to face higher electricity bills from July, as the government prepares to roll out a new tariff system.

The revised rates are designed to ease the burden on low-consumption households while discouraging heavy usage.

The Energy Regulatory Commission (ERC) has gathered data from state-owned distributors, including the Metropolitan Electricity Authority (MEA) and the Provincial Electricity Authority (PEA), to shape a progressive tariff structure.

The proposal is scheduled for a public consultation in June before being finalised.

ERC secretary-general Poonpat Leesombatpiboon said the tiered tariff system, introduced in 2023 amid soaring energy prices following the Russia-Ukraine conflict, will be adjusted to reflect challenges.

The current energy crisis, triggered by the Iran war, prompted the government to ensure electricity costs for small households consuming no more than 200 kilowatt-hours per month remain capped at 3 baht per kilowatt-hour (unit).

The power tariff consists of two main components: the base tariff, which covers power generation and distribution costs, and the fuel adjustment charge at a given time, which reflects fuel prices and policy-related expenses.

The government is ending subsidies for electricity prices in an attempt to avoid further financial strain.

Past subsidy schemes, implemented by the Electricity Generating Authority of Thailand (Egat) and national energy giant PTT Plc after the start of the Russia-Ukraine war, left the state with debts nearing 40 billion baht.

To ease household costs, the ERC temporarily suspended repayments to Egat and PTT between May and August.

For households with higher consumption, the government is encouraging investment in renewable energy.

Incentives include support for rooftop solar panel installations, with excess electricity sold back to MEA and PEA at 2.2 baht per unit for a guaranteed period of 10 years. In addition, households can claim personal income tax deductions of up to 200,000 baht.

The solar programme allows for up to 500 megawatts of power to be sold to the grid, far exceeding the 90MW cap in a similar scheme launched in 2013.

Officials are finalising the details, with a full rollout expected by mid-year.

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