The Energy Ministry is working to slow down the fuel tariff (Ft) surge, following an order by the prime minister after he received a plea from business leaders to cap the Ft for one year.
The decision by the Energy Regulatory Commission to increase the power tariff by 20.5% to 5.69 baht per kilowatt-hour (unit) caused businesses to petition the premier in a last-ditch effort to avoid the rapid increase in power bills.
The Ft is a key element in the power tariff, which is used to calculate electricity bills. The new power tariff is valid from January to April next year.
Energy Minister Supattanapong Punmeechaow said yesterday authorities will better manage fuels used by power plants for electricity generation in the country. Thailand uses gas, diesel, coal and renewable energy to produce electricity. Cheaper fuels will receive the first priority for usage, he said.
Gas makes up 60-65% of the fuels used for electricity generation. Thailand needs to import more costly liquefied natural gas (LNG), following a drop in the cheaper domestic gas supply from the Gulf of Thailand.
The LNG price in the spot market was US$30 per tonne yesterday, compared with a domestic gas price of $4 per tonne.
If the country used only LNG from the spot market, the power tariff would increase to 8 baht a unit, according to the ministry, while a shift to diesel or renewable energy, including hydropower, would put the tariff at 5 baht and 2-3 baht a unit, respectively.
The Department of Mineral Fuels is urging PTT Exploration and Production to increase gas production at the Erawan block from 200 million metric standard cubic feet per day (MMSCFD) to 400 MMSCFD by July next year, and 600 MMSCFD by the end of next year. The department is also in talks with the operators of the Malaysia-Thailand Joint Development Area and Myanmar gas block about higher supply.
