ERC fixes home electricity bill at 4.72 baht/unit, billing cycle Jan.-Apr. 23, business sector deteriorates to 5.69 baht/unit

The Energy Regulatory Commission (ERC) announced the Ft according to the resolution of the National Energy Policy Council (NEPC) that gave people the right to use gas in the Gulf of Thailand first, resulting in the Ft of residential households at 93.43. satang/unit while other groups of electricity users use the rest of the gas, causing the Ft value to move up to 190.44 satang/unit in the electricity bill for the period of January-April 2023.

Mr. Komkrit Tantrawanich, Secretary-General of the ERC, as spokesman of the ERC, revealed that the ERC meeting yesterday (December 14) considered the results of the Ft calculation at the Electricity Generating Authority of Thailand (EGAT). Proposed according to the guidelines approved by the NEPC for the period of January-April 2023 for residential electricity consumers at a rate of 93.43 satang per unit. For other types of electricity users at the rate of 190.44 satang per unit, the Ft calculation according to the above guidelines. As a result, the average electricity cost for household electricity users is at the same rate of 4.72 baht per unit, while other types of electricity users will have an average electricity price of 5.69 baht per unit.

The main factor affecting the Ft in this round is the cost of imported fuel to compensate for the decrease in natural gas in the Gulf of Thailand and natural gas in Myanmar according to the projection. Volume and price of natural gas for Ft calculation in the period of Jan.-Apr. 23 and burden of gradual repayment of Ft debt EGAT

This consideration is a result of the NEPC meeting on Nov. 25, 2022, a resolution approving the natural gas management approach to reduce the burden on electricity costs during the Jan.-May energy price crisis. Nov. 2023 by “Allocating natural gas from the Gulf of Thailand behind the gas separation plant To be used in the production of electricity for residential power users in the first place in an amount that does not increase the electricity tariff burden from the current “

Therefore, the NEPC assigned the ERC to calculate the Ft for residential houses. From the invoice for electricity bills Jan.-Apr. 23 and allowing PTT Public Company Limited (PTT) together with EGAT to manage the impact of natural gas prices on electricity bills by asking PTT to charge the price. natural gas to EGAT’s power plants, Independent Power Producers (IPPs) and Small Power Producers (SPPs) at the same price level used to estimate electricity costs according to the Ft adjustment formula since the month that the NEPC had resolution onwards And the difference between the actual natural gas price and the natural gas price charged shall be gradually collected in the next Ft calculation.

The ERC therefore needs to adjust the Ft calculation for the months of January-April 2023 that has already been heard to be in line with the aforementioned resolutions, as follows:

1. Ask PTT to revise natural gas price estimates again to be in line with the NEPC resolution and the Ministry of Energy’s guidelines for fuel management in power generation, such as (1) increasing the use of diesel and fuel oil to replace imported LNG in line with in line with the situation of fuel prices in the world market and the ability to transport diesel fuel to power plants; (2) increase gas supply in the Gulf of Thailand for power generation By reducing the amount of gas in the Gulf of Thailand to be sent to the gas separation plant and sending it to generate electricity to replace the gas from Myanmar that has decreased, (3) adjusting the assumption of import LNG Spot prices according to a better trend, and (4) commencing Mae Moh Power Plant. 4th unit discharged as needed, etc.

The above action resulted in the pool gas price estimate being reduced from 552 baht per million BTU to 493 baht per million BTU. Later, it was calculated by dividing natural gas in the Gulf of Thailand behind the separation plant. in order to produce electricity for the house to live in first Makes homes able to use gas at a price of 238 baht per million BTU. and allocate the rest of natural gas in the Gulf of Thailand plus gas from the Union of Myanmar and LNG for other gas users (Pool Gas remaining) at a price of 542 baht per million BTU.

2. Order EGAT to adjust the fuel price assumptions according to the Ministry of Energy’s fuel management guidelines for electricity generation and the resolution of the NEPC by adjusting the Ft calculation by using natural gas from the Gulf of Thailand at a price of 238 baht per million Bt. You substitute natural gas prices for the Ft charge in the residential sector. And use the remaining natural gas price (Pool Gas remaining) at a price of 542 baht per million BTU in replacement of the original natural gas price for charging Ft for other types of electricity users.

3. The ERC considers EGAT’s financial burden and accumulated debt burden to gradually repay the outstanding Ft debt in order not to burden EGAT’s liquidity problem and not cause too much burden to power consumers. In which EGAT proposes to average the amount of debt as of August 2022 in the amount of 122,257 million baht on average for 2 years.