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Energy Regulatory Commission (ERC) increased Ft tariff during May-August 2014 by 10 satang per unit resulting from the increase of fuel cost and baht’s depreciation. In fact, the cost increased by 13.94 satang but ERC raised the rate by only 10 satang, while the rest of the increase will be temporarily shouldered by EGAT at 3.94 satang per unit, accounting for 2,247 million baht, to ease the burden of users.

As a result, the Ft tariff for May-August 2014 was raised to 69 satang per unit.

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Mr. Direk Lavansiri (Chairman of ERC)

Factors that had influence on Ft tariff are as follows:

  • the expectation of power demand to grow by 2.8 percent, compared with the same period in 2013
  • the increase of the fuel cost, compared with January-April 2014 period, which was caused by the exchange rate depreciating to 32.33 baht to the U.S. dollar on April 10, 2014 (on November 27, 2013, the rate was 32.21 baht to the U.S. dollar.)
  • the price of natural gas which increased by 9.11 baht per million BTU, from 316.88 baht to 325.99 baht per million BTU.

Moreover, bunker oil and diesel will be reserved for the disruption of the Malaysia-Thailand Joint Development Area during June-July 2014 to secure the power system in the South of Thailand, resulting to the fuel cost for power generation increasing by 246 million baht, from 3,403.13 million baht to 3,649.69 million baht.

Details of new Ft tariff will be publicized on www.erc.or.th for public hearing, and the feedback will be considered for the next revision of Ft tariff.