Households get more breaks on power bills

Low flat rate approved for first 200 units per month, street lighting add-on finally abolished

New revisions in Thailand’s electricity tariff structure will lower power rates for household consumers and remove public street lighting costs from residential electricity bills, expected to take effect as early as the August billing cycle.

The changes were among a number of measures approved on Wednesday by the National Energy Policy Council (NEPC), chaired by Prime Minister Anutin Charnvirakul. Others include expanded access to clean energy, and more opportunities for businesses to make direct power purchases from clean energy providers.

For households, a flat rate of 3 baht per kilowatt/hour (unit) will apply for the first 200 units of electricity used each month. That compares with the current rate of 3.95 baht. A typical medium-sized household with 2-3 air conditioners consumes about 400 units per month.

The street lighting charge, meanwhile, will no longer be included in household electricity bills. Many people were surprised when it was revealed last month that Thai households had been paying for street lighting for 40 years. The current charge adds about 0.10 baht per unit to monthly bills.

Instead, the government will determine alternative funding sources, including revenue generated from electricity tariffs on future data centre investments, said Deputy Interior Minister Polapee Suwanchwee, who oversees the Provincial and Metropolitan electricity authorities.

The NEPC resolution will now be forwarded to the Energy Regulatory Commission (ERC), which will conduct a 15-day public consultation involving the country’s three state electricity utilities before determining the new tariff rates, said Mr Polapee.

Data centre tariffs

Revenue generated from the revised tariff structure for data centres will be used to help cover the cost of public electricity services, estimated at 18 billion baht annually. The proposal will be submitted to the cabinet for final approval, with adoption targeted for the August billing cycle.

Asked whether the government would need to allocate additional funds if the cost of public lighting could not be fully recovered from data centres, Mr Polapee said the funding method was still being finalised.

The MEA and PEA would examine ways to absorb the costs through profits generated from various activities, while the Electricity Generating Authority of Thailand (Egat) would also share responsibility.

“The exact proportion and allocation model will be discussed further with the Energy Regulatory Commission. The public should not have to bear this burden,” he said.

The NEPC also discussed whether higher electricity tariffs for data centres could discourage investment.

Mr Polapee said a committee chaired by Energy Minister Akanat Promphan would study the issue, taking into account electricity pricing and investment conditions across Southeast Asia and other competing markets.

While such projects bring substantial capital investment, they generate relatively few jobs and consume significant amounts of electricity and water, Mr Polapee noted.

Greater electricity demand also increases power generation costs by requiring more natural gas, potentially pushing up overall electricity prices.

“The objective is to ensure that these costs do not become a burden on the public,” he said.

The ERC is currently reviewing options for electricity tariffs for the final four months of the year. The new rates could range from 3.95 to 4.73 baht per unit, depending largely on how much revenue will be set aside to help Egat pay down its debts from subsidising power rates.

The NEPC on Wednesday also approved a 1,500-megawatt community solar programme, with a ⁠cap of 30 megawatts per developer. As well, it said, legacy renewable-energy contracts with some smaller producers will be revised to reflect current generation costs.