Bangkok 7 Jul-Office The ERC informs that the direction of energy prices in the world market has begun to relax, including the tendency of liquefied natural gas (LNG) prices in the world market to fluctuate at a low level. As a result, the cost of importing LNG to replace natural gas through the pipeline, which is the main fuel for electricity generation, is reduced. But there is still a burden that EGAT has to bear from the cost of LNG prices during the energy crisis of more than a hundred thousand million baht instead of electricity users who have to gradually pay back. Resulting in the choice of the lowest FT cost at 66.89 satang per unit or electricity cost at 4.45 baht per unit, as proposed by EGAT. The ERC is open for comments from July 7-21. 2023 before being announced for actual use at the end of July.

Mr. Komkrit Tantravanich Secretary-General of the Office of the Energy Regulatory Commission (ERC), as a spokesman for the Energy Regulatory Commission (ERC), revealed that the ERC at its meeting No. 32/2023 (No. 860) on July 5, 2023. Resolved to acknowledge the burden of FT costs for the period of Jan. - Apr. 2023 and approved the results of the calculation of the estimated FT cost for the period of Sept. - Dec. 2023, ready for the Office to The ERC takes into account the estimated FT cost and EGAT's approach to paying actual costs to listen to opinions in the following cases:

Case 1 (Repayment of all outstanding costs) FT fee charged for the period of Sep. - Dec. 2023, amounting to 249.81 satang per unit. Divided into retail FT, estimates that reflect the cost of Sep. - Dec. 2023, amounting to 28.58 satang per unit. and charges for payment borrowed by EGAT to freeze electricity costs from September 2021 to April 2023, amounting to 135,297 million baht, when combined with the base electricity cost of 3.78 baht per unit, making Electricity (Excluding VAT) increased to 6.28 baht per unit according to the calculation report according to the FT formula.

Case 2 (fixing the FT fee equal to the period of May - Aug. 2023) The FT charged for the period of Sep. - Dec. 2023, amounting to 91.19 satang per unit. Divided into retail FT, estimates that reflect the cost of Sep. - Dec. 2023, amounting to 28.58 satang per unit. And gradually pay the loan that EGAT has borrowed to freeze the electricity bill from September 2021 to April 2023 in the amount of 38,291 million baht to reduce the interest burden that is likely to increase, expected at the end of December. C. 2123 There is a remaining debt that must be repaid to EGAT in the amount of 97,006 million baht. When combined with the base electricity cost of 3.78 baht per unit, the electricity (Excluding VAT) remains the same at 4.70 baht per unit.

Case 3 (Repayment of outstanding costs in 5 installments) FT fee charged for the period of Sep. - Dec. 2023, amounting to 66.89 satang per unit. Divided into retail FT, estimates that reflect the cost of Sep. - Dec. 2023, amounting to 28.58 satang per unit. And gradually pay the loan that EGAT borrowed to fix the electricity bill from September 2021 to April 2023, divided into 5 installments, 23,428 million baht each, expected at the end of December 2023 The remaining debt that must be repaid to EGAT amounted to 111,869 million baht, resulting in electricity costs. (excluding VAT) was reduced to 4.45 baht per unit according to EGAT's proposal.

As for the FT calculation results and EGAT's actual cost burden, all 3 cases mentioned above are in accordance with the fuel cost estimates by PTT and EGAT. The aforementioned estimates come to calculate the cost of electricity, which the OERC has prepared a summary of assumptions that use the FT estimate for the calculation period of September-December 2023 compared to the calculation in the base year of May. . – Aug. 2015 and the FT projection cycle in May – Aug. 2023, with details in….

“The drop in liquefied natural gas (Spot LNG) prices in May-Aug. 2023 had a significant impact on the FT estimate for the September-December period. 2023, although natural gas from the Gulf of Thailand will gradually increase, but due to the uncertain situation of natural gas resources in Myanmar Coupled with increasing demand for natural gas in the petrochemical and industrial sectors, the amount of gas supplied to the electricity sector is limited. In addition, the start of global economic recovery, as well as the onset of winter in Europe, has resulted in an increase in demand for LNG and may affect LNG prices in Asian markets. The PP and related agencies closely monitor the situation of natural gas production and consumption in order to ensure energy security at reasonable prices. Collected in the period September - December 2023 on the website of the Office of the ERC.

Mr. Komkrit said that the ERC would have to wait for the results of the public hearing for consideration this time before how much the FT fee can be reduced. which in the end must be used The ERC considered, including if the FT cost would be greatly reduced, it was on the way. How will EGAT accept the pending debt? The ERC has considered based on the bases and supporting factors. And if the new government comes in, how much the FT will come down will be considered depending on the new government's decision on what approaches to help increase the FT. But I think it can be reduced in the next year. But if the new government can use any means to help the people in various fields, that would be good.-Thai News Agency

Source: Thai News Agency