Thailand’s ERC Announces Significant Electricity Price Hike from September to December

On July 12th, 2024, the Energy Regulatory Commission (ERC) of Thailand announced a significant hike in electricity prices due to escalating fuel costs for electricity production. This price increase, scheduled for the September to December period, is also driven by the necessity to settle previous fuel debts owed to the Electricity Generating Authority of Thailand (EGAT).

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The Fuel Adjustment Charge (Ft) is set to rise by 46.83-182.99 satang per unit (with 100 satang equaling 1 baht). When this adjustment is added to the base electricity rate of 3.7833 baht per unit, the total electricity cost will escalate to 4.65-6.01 baht per unit, a notable increase from the 4.18 baht per unit rate observed during the May-August period.

On July 13th, local reporters in Trang Municipality conducted a survey to gather residents’ reactions to the impending electricity cost hike. The survey revealed widespread concern among residents about the financial strain this increase will impose on their households, especially given the current economic climate

Higher electricity bills are anticipated to impact living expenses, household budgets, and the operational costs of numerous businesses. Sectors such as laundromats, hotels, and other small enterprises are expected to bear the brunt of these increased costs, compounding the financial difficulties they are already facing.

Residents expressed anxiety that the rising electricity costs will further strain their finances and negatively impact their livelihoods, according to the survey by Thai reporters.