Bangkok: The National Energy Policy Council (NEPC) has approved separating public electricity charges from citizen electricity bills, advancing efforts to alleviate electricity costs for residential homes. A separate electricity rate has also been established for data centers.
According to Thai News Agency, Energy Minister Ekanat Promphan revealed that the NEPC has approved seven electricity-related measures aimed at reducing electricity costs for the general public. The measures ensure that high-volume electricity users, such as data centers and industries, fairly bear their costs without passing the burden on to general electricity users.
One significant measure involves the separation of public electricity charges, such as those for streetlights, from regular electricity bills. The Energy Regulatory Commission (ERC) has been tasked with revising regulations to collect funds from new sources, including data center users and community solar projects. These funds aim to reduce public electricity costs and lower residential electricity burdens. Mr. Ekanat highlighted that this initiative represents a shift towards a sustainable, clean energy system and fair pricing.
Another key decision is the reduction of residential electricity bills through a progressive rate tariff. The first 200 units will now cost 3 baht per unit, while higher usage rates remain unchanged. The redefined residential electricity user category will now include rental properties, easing the burden on tenants.
The NEPC also extended the Direct PPA measure to industries that require clean electricity. This allows businesses to procure clean electricity directly from producers, aligning with international trade standards.
Additionally, the council set specific electricity rates for data centers to reflect true procurement costs. This includes costs from imported liquefied natural gas (LNG) and network system upgrades, ensuring these do not burden general electricity users.
Large data centers will now need to provide a bond for power grid use, confirming their investment intentions. A water management plan is also required to prevent unnecessary investments and water conflicts with public and agricultural sectors.
To address perpetually expensive electricity purchase contracts, the NEPC approved proposals for clearer contract terms and adjusted purchase rates. The council also progressed the 1,500-megawatt Community-based Solar Farm Generation Project, ensuring fair criteria and distribution of benefits across multiple areas.
Mr. Ekanat emphasized that these adjustments aim to equally distribute benefits and reduce electricity costs for all users. The community solar farm project is expected to enhance electricity use efficiency by producing clean energy and reducing distribution costs.