The fuel tariff (Ft) for the period will be slashed 7.02 satang, to 78.42 satang per unit. Combined with the base power rate of Bt2.26, power users will pay Bt3.04 for every unit of power consumed.

Board chairman Yongyuth Wichaidit said the Ft could be lowered because of cheaper electricity-generating costs following the start-up of a coal-fired power plant owned by BLCP Power Ltd and higher output from hydroelectric plants.

The first 700-megawatt phase of BLCP's 1,434-megawatt plant started up last month, and the second phase will start up next February.

Yongyuth said the lower cost of electricity produced from coal and hydropower would help generate savings of Bt6 billion in the total cost of power production by offsetting the rising costs of other fuels, such as natural gas, diesel and fuel oil.

However, the electricity rate for the following period, from next February to May, is expected to rise 8 satang, because high temperatures during the hot season will increase both electricity use and fuel costs.

Along with yesterday's price reduction, the board cancelled subsidies for small household users of 10 satang a unit that had been granted in the previous four-month period.

Meanwhile, the bidding process for private companies seeking new electricity-supply contracts will likely be delayed slightly, as a result of the current political vacuum, says board member Chaikasem Nitisiri.

Bidding guidelines had been expected to be announced about next March, with the board scheduled to complete the bidding process and sign independent power-producing contracts in March 2008.

"We think we will need to delay the announcement of the guidelines to April or May, because a new Cabinet has yet to be formed, so we don't have money to hire an adviser for the bidding process," said Chaikasem.

Independent power producers will be bidding for the right to produce 11-13 gigawatts of additional electricity, to come onstream between 2011 and 2013.

Watcharapong Thongrung

The Nation