The Electricity Generating Authority of Thailand (EGAT) plans to suggest to the government that the recalculation of the fuel tariff (FT) for electricity be changed from every four months to once a year. This is aimed at reducing fluctuations in electricity prices for households and industries.
Thepparat Theppitak, the new EGAT governor, acknowledged that the frequent recalculation of the FT has led to frequent changes in the price consumers pay for electricity, impacting households and creating challenges for industries in predicting their production costs.
The new governor stated that recalculating the FT annually would be advantageous and fair to all stakeholders in the long term, while enabling EGAT to better manage its energy production costs. He also mentioned that the current electricity price of 4.18 baht/unit is reasonable.
EGAT is currently dealing with a debt of 99 billion baht, which was incurred by subsidizing the FT to maintain the electricity price at 4.18 baht/unit.
Thepparat mentioned that EGAT anticipates receiving repayment of the debt in seven installments from the government, which will improve its cash flow and credit rating.
