The Energy Regulatory Commission orders PTT – EGAT to propose a plan to respond to the government by reducing electricity prices to 3.99 baht/unit.

The Energy Regulatory Commission board met with EGAT-PTT and ordered them to propose a work plan. To respond to government policy that gives electricity bills in installments Sep.-Dec. reduced from 4.45 baht/unit to 3.99 baht/unit, with both enterprises having to bear the burden for now until the energy situation eases, then collecting back outstanding electricity bills from electricity users later. Analysts expect PTT has a maximum impact of 3 billion baht.

The Office of the Energy Regulatory Commission (Office of the Energy Regulatory Commission) informs that the meeting of the Energy Regulatory Commission today (20 Sep.) invited the Electricity Generating Authority of Thailand (EGAT) and PCL. .PTT came to clarify and determine procedures to comply with the law and must be urgently carried out in accordance with government policy. that urgently reduces the cost of living According to the Cabinet resolution (Cabinet), there was a resolution on September 18, 2023 that agreed in principle to charge electricity bills for the period September - December 2023 from the original 4.45 baht per unit to 3.99 baht.

However, setting the electricity bill rate of 4.45 baht per unit is a calculation that reflects the actual costs according to the Energy Industry Act 2007, Section 65, and the Energy Regulatory Commission announcement on the process. The process of using the formula for automatically adjusting the electricity rate (Ft) 2022, but because the government has a policy to reduce the electricity charge to 3.99 baht per unit, resulting in a difference of 46 satang per unit, it is necessary for both state enterprises 2 places will bear the burden until the energy situation relaxes, then collect back the outstanding electricity bill from electricity users later.

Therefore, complying with the Cabinet resolution which approved the Ministry of Energy's proposal to require PTT to reduce the natural gas fees charged to electricity generating businesses. which was originally set to be 323.37 baht per million BTU to not exceed 304.79 baht per million BTU.

As for EGAT, which previously bore the burden of outstanding electricity bills (Accumulated Factor: AF), totaling approximately 100 billion baht, is in the process of collecting back the outstanding amounts included in the electricity bills for the months of September - December. 2023, each unit of 38.31 satang is approximately 23 billion baht, therefore it is necessary to refrain from collecting the said outstanding money back.

The two state enterprises, as recipients of operating licenses, must submit prices for natural gas and electricity to the Energy Regulatory Commission in order to comply with the Energy Business Act 2007, Section 67, and can charge Electricity cost will be 3.99 baht per unit from the electricity bill for September 2023.

A source from the Ministry of Energy informed that The operation affects both organizations, with EGAT having a burden to pay for electricity purchases and gas purchases from PTT totaling 60 billion baht/month. This part is about 15 billion baht for gas from PTT. baht/month Paid every 30th of the month, while the price of imported LNG gas is as high as $14/million BU. When combined with domestic gas, the price is higher than 305 baht/million BTU. PTT will come up with a mechanism to have the least impact, such as possibly allowing EGAT to share the gas burden from one installment to another. Monthly into 2 installments per month, etc.

Source: Thai News Agency