EGAT clarified the continual decrease of Ft in 2015 by 22 satang for the press and online media. The Ft was not raised for a profit to EGAT as rumored on social media; instead, it was adjusted according to the cost of power generation.

          Mr. Saharath Boonpotipukde, Deputy Governor – Corporate Social Affairs serving as EGAT Spokesman denied comments in the social media which claimed that EGAT had raised the Ft with the reason that oil price in the world market rose up contributing to the higher cost of power generation, which brought more profits to EGAT. The Deputy Governor gave the fact of this issue as follows:

          Firstly, there was no increase of Ft in 2015 at all. Instead, Energy Regulatory Commission (ERC) cut the Ft tariff in 2015 for three times, contributing to the total of Ft reduction by 22.62 satang/unit. The 3 revisions of Ft tariff in 2015 were January-April by 10.04 satang/unit, May-August by 9.35 satang/unit, and September-December by 3.23 satang/unit. Moreover, ERC approved the decrease of ft tariff of January-April 2016 by 1.57 satang/unit

          Secondly, Ft tariff revision did not make EGAT gain more profits as it was adjusted according to the real cost of power generation that was beyond EGAT’s operation. For transparency and fairness to consumers, Ft adjustment was regulated by the committee comprised of related sectors, academics, and consumers. Every 4 months, they considered the energy and service prices to determine the Ft tariff.

          Factors that affected the ft were comprised of fuel price, power purchase price, and government policy such as renewable subsidy.

          Thailand relied on natural gas for power generation accounting for 70%, while the domestic natural gas price accounted for 30-40% of oil price in the world market. As a result, when the oil price dropped by 61% in 2015, the price of natural gas used to generate electricity dropped by 19 percent. Moreover, the gas price changed after the oil price at least 6 months.

          The cost of power purchase from independent power producers and small power producers was also affected by fuel price. Another factor was the government policy on subsidy (Adder, FiT- Feed-in Tariff) for renewable energy such as solar, wind, and biomass. The electricity price caused by renewable energy subsidy in 2015 amounted to 18.6 satang/unit, which was more than 2014 by 7.3 satang/unit and tended to increase according to the increase of renewable power purchase.

          The exchange rate also had an impact on fuel price and power purchase cost. The weaker baht would increase the Ft, while the stronger baht would decrease the Ft. Therefore, the reduction of oil price could partly contribute to the continual decrease of Ft in 2015. However, the exchange rate and increase of renewable energy subsidy were also the related factors.

          “We hope that our explanation will make the public better understand our operation. We always listen to every comment. All the details mentioned were also posted on social media,” said the Deputy Governor.