Bangkok, July 6 - ERC announces the new FT electricity tariff (Sept.-Dec. Erawan field production increased along with the remaining 5 installments of EGAT's debt according to the plan, the private sector proposes 6 installments of EGAT's debt, suggesting that the electricity cost should be reduced by 45 satang/unit

Office of the Energy Regulatory Commission (ERC) will hold a press conference. And the calculation of electricity costs according to the formula for automatically adjusting electricity tariffs (Ft) and alternative proposals to open a hearing for consideration in order to announce the electricity bill collection in September-December 2023 tomorrow (Friday 2023) July 7, 2023) with news reports that The price will be reduced by more than 20 satang per unit. The reason is from the Erawan gas field production has increased. The use of liquefied natural gas (LNG) therefore decreased, while the global LNG price also decreased, along with the use of debt by the Electricity Generating Authority of Thailand (EGAT). The cost of electricity to the public is about 150 billion baht. And the debt has been used for 2 FT installments (Jan.-Aug. 23), totaling 30 billion baht, remaining 1.2 billion baht in debt that must be paid within 5 FT installments (Sep. 66-Apr. '25), therefore, for the period of September-Dec. '23, it will pay about 24 billion baht. However, the ERC

Mr. Isaret Ratanadilok Na Phuket, vice chairman of the Federation of Thai Industries (FTI), said that the meeting of the joint committee of 3 private sector institutions (ECF) on July 5 has expressed Concerned about the burden of costs of operators that are continuously high. Especially the cost of electricity and pointed out that if considering the factors used to calculate the Ft, it was found that there are positive factors that reduce the electricity bill by more than 10% from the second period (May-Aug. 23) and It is expected that it should not exceed 4.25 baht/unit from the previous 4.70 baht/unit due to

1) Gas from the Gulf of Thailand, especially from the Erawan field, will gradually increase from 200 million cubic feet per day to 400 million cubic feet per day in July and to 600 million cubic feet per day in December.2 ) LNG imports decreased 3) LNG Spot prices dropped more than 30% 4) World energy prices 5) The debt burden of the Electricity Generating Authority of Thailand (EGAT) both installment 1 and installment 2 decreased faster than planned with the actual cost of LNG being lower than the Ft charge even though the currency The baht will continue to depreciate at 35 baht per US dollar.

However, the CRC has a proposal to the government sector to consider the Ft for the 3rd period of 2023 (Sep. - Dec.) as follows:

1) Request to consider extending the time for debt repayment to EGAT from 5 installments. The rest is 6 installments in order to reduce the Ft by another 10 satang per unit, which EGAT will receive a full refund within August 2025

. One Team*) to procure in order to extract artificial demand from several shippers entering the market for use in electricity generation in the 3rd round of 2023 in order to obtain a reasonable price according to the market mechanism. and not let the country be at a disadvantage By procuring at an average price of LNG in the range of 14-16 dollars per million BTU, the CRC is concerned that if it enters winter, the LNG price will increase due to world energy demand by the CRC. There will be a letter to the Prime Minister to consider further action soon. This.-Thai News Agency

Source: Thai News Agency