The Energy Regulatory Commission slashed the fuel tariff (FT) for the May-August period by 28.49 satang per unit, reflecting a decrease in fuel costs.
For the four-month period, the FT would be minus 33.29 satang, remaining in the negative territory since the electricity-price adjustment factor was adopted in 1991. The FT in the January-April period was minus 4.80 satang per unit.
Viraphol Jirapraditkul, a commissioner as the ERC spokesman, attributed the further decrease to lower natural gas prices. Natural gas prices lag bunker oil price movements by 6-18 months. Meanwhile, delays in renewable energy projects also resulted in lower-than-expected subsidies. The slight appreciation of the Thai baht against US dollar also resulted in lower fuel prices.
Natural gas will remain the main fuel for electricity generating during May and August, accounting for 64.22 per cent of capacity. Power purchases from Laos and Malaysia will account for 12.33 per cent of total and coal 15.96 per cent.