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          The Energy Regulatory Commission (ERC) approved to reduce the Ft surcharge of January-April 2016 by 1.57 satang/unit to -4.80 baht/unit. This Ft surcharge cut was attributed to the reduction of fuel price.

 

          Mr Veeraphol Chirapraditkul, a member and the spokesperson of ERC, said that the committee’s resolution was to reduce the Ft surcharge of January-April 2016 by 1.57 satang/unit to -4.80 satang/unit (compared to the Ft surcharge of November-December 2015 at -3.23 satang/unit). The main factor of this Ft surcharge cut was the reduction of fuel price. The natural gas price was expected to be dropped by 15.53 baht/millionBTU to 261.19 baht/millionBTU. The share of natural gas for electricity generation would still be dominant, followed by power purchase from Laos and Malaysia, while hydropower share would be smaller because of drought, contributing to the higher cost of electricity generation.

          Recently the baht exchange rate that tended to slightly depreciate, together with support of electricity purchase from renewable energy by the government via adder and FiT policy from January-April 2016 had caused the Ft surcharge to increase 4.07 satang/unit. However, a change of Ft calculation method during the period of September-December 2015 caused the Ft surcharge reduction of January-April 2016 period to -3.61 satang/unit, contributing to the overall reduction of Ft surcharge of January-April 2016 by 0.84 satang/unit.

          However, ERC considered bringing price reduction of gas used at Khanom Power Plant from July 2014 to August 2015 amounting to 269.02 million baht and the reduction of investment budget during the years of 2008-2010 to further reduce the Ft surcharge in this period by 0.73 satang/unit.

          Those made the Ft surcharge of the January-April 2016 period totally reduce by 1.57 satang/unit to -4.80 satang/unit. When it was added to the base tariff of 3.7556 baht/liter, the electricity price in this period was 3.7076 baht/unit.

          The details of the new Ft surcharge could be found on www.erc.or.th for public comment on December 24-January 7, 2016. The feedback would be considered before the electricity distributors put the new Ft surcharge on electricity bills.