Households and businesses are bracing for higher electricity bills in the final four months of this year as the Energy Regulatory Commission (ERC) has announced a sharp increase in the fuel tariff (Ft), which is expected to jump nearly fivefold from 0.16 baht to 0.94 baht per kilowatt-hour, driving overall power tariffs upwards.ERC secretary-general Poonpat Leesombatpiboon explained that the increase is driven by a projection of rising fuel costs and the need to reimburse the Electricity Generating Authority of Thailand (Egat) for billions of baht spent on past electricity subsidies.
Egat is owed 31.2 billion baht, and part of the new tariff structure is designed to gradually settle this debt.
At present, the power tariff stands at 3.95 baht per unit and will remain in place until the end of August, after which new rates will be introduced.
The Ft is recalculated every four months to reflect changes in fuel prices, electricity imports, foreign exchange rates, and policy-related expenses, including the need to pay back money to Egat.
Mr Poonpat said rising fuel costs are being driven by "Pool Gas", the weighted average price of natural gas from the Gulf of Thailand, Myanmar, and imported liquefied natural gas.
