The Energy Regulatory Commission (ERC) has decided to maintain the FT rate for the period of May – August 2020, as the situation regarding COVID-19 has not improved quickly. This aims to stabilize electricity costs to support businesses and the cost of living for the public.

            Mr. Komkrit Tantravanich, Secretary-General of the Energy Regulatory Commission (ERC) and spokesperson for the ERC, stated that the ERC has decided to keep the variable electricity tariff (FT) for the billing period of May – August 2020 at -11.60 satang per unit, resulting in an average electricity cost of 3.64 Baht per unit for another 4 months (excluding VAT). This is aimed at alleviating the cost of living for citizens affected by the economic crisis due to the COVID-19 outbreak, with an estimated budget of 5.12 billion Baht to manage the FT rate.

          “The ERC has assessed the overall impact of the COVID-19 outbreak, which has led to a slowdown in the economy both domestically and internationally, and the situation has not improved quickly. Therefore, to mitigate the impact on the cost of living for the public due to the economic slowdown, we will continue to manage the FT rate for another 4 months,”

          Regarding the situation in the upcoming 4 months, which will enter the summer season, it is expected that the demand for electricity will increase. The production of electricity to meet this demand will still primarily use natural gas as the main fuel, and it is anticipated that fuel prices during this period will trend downwards, such as the price of natural gas decreasing in line with global oil prices. However, the FT estimation must also consider the costs arising from the difference between the estimated FT and the actual FT incurred, which in this case arises from increased electricity production from renewable energy sources.

Factors considered for the FT rate for the period of May – August 2020 include:

  1.  The demand for electricity during May – August 2020 is projected to be 69,920 million units, an increase from the January – April 2020 period, which is expected to have a demand of 65,724 million units, or an increase of 6.38% due to higher electricity usage in the summer.
  2. The fuel mix for electricity production during May – August 2020 will still primarily use natural gas at 58.34%, coal at 16.32%, and electricity imports at 16.20%.
  3. The trend of fuel prices for electricity production is expected to have natural gas priced at 263.19 Baht per million BTUs, down 3.50 Baht per million BTUs from the previous period. The average price of imported coal for private power plants is 2,488.19 Baht per ton, up 16.59 Baht per ton from the previous period.
  4. The exchange rate is 31.70 Baht per US dollar, weaker than the rate estimated for January – April 2020, which used an average exchange rate of 30.60 Baht per US dollar from September 2019.

           Nevertheless, the ERC has conducted a public consultation on the FT rate for the billing period of May-August 2020 on the ERC website from March 12-26, 2020, before making an official announcement.

 

Source:  Energy Regulatory Commission (ERC)