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Published on February 14, 2008

The subcommittee on electricity and service rates yesterday approved an increase of 2.75 satang per unit in the fuel-adjustment (FT) tariff for the period.

The increase needs the final approval of the energy regulatory body today.

If approved, household electricity charges will rise to Bt3.05 per unit.

Norkhun Sitthipong, deputy permanent secretary of the Energy Ministry, said after the subcommittee meeting that the FT rate would rise to 68.86 satang per unit from 66.11 satang.

When added to the base power rate of Bt2.25 per unit, the final power rate will be Bt3.05.

The panel's proposed rate is lower than expected.

Norkhun attributed that to the stronger baht, which is 33 per US dollar, up from 33.50 in the previous four-month round.

Another reason for the lower rate is that the country can also produce more electricity from hydropower - 2,900 million units from the previous 1,900 million. Moreover, there will be new natural-gas supply generated from the Arthit field and the Joint Development Area on March 16 and April 10, respectively.

A source at the Energy Ministry said the price of natural gas had increased gradually to Bt207.86 per million British thermal units from Bt197.66 per million BTU.

However the price of the natural gas used for calculating the FT rate increase for the February-May period is the existing gas-transmission fee of Bt19.4 per million BTU.

The source added that the ministry would propose an increase in the gas-transmission fee by Bt2 per million BTU for the consideration of the national energy regulator soon. The adjusted price will be used to calculate the FT rate for the June-September period.

A Bt1 increase in transmission fee would up the FT rate by 0.6 satang per unit. Therefore, an increase of Bt2 per million BTU will boost the FT rate by 1.2 satang per unit.

Energy Minister Poonpirom Liptapanlop yesterday said her piorities were power rates, cooking-gas prices and oil prices.

On cooking gas, she said she would discuss the matter with PTT, adding that no subsidy would be involved.

Energy Reporters

The Nation