Thailand’s electricity prices for the period after April 2025 remain uncertain, despite a recent government decision to slightly reduce the power tariff to 4.15 baht per kilowatt-hour (unit) from 4.18 baht in 2024. The new rate will apply from January to April 2025, offering temporary relief to consumers.
Energy Minister Pirapan Salirathavibhaga announced the tariff adjustment following discussions between the Energy Regulatory Commission (ERC) and state agencies. In December 2024, the ERC had conducted an online survey asking businesses and households whether they preferred to maintain the rate at 4.18 baht or allow for an increase. Ultimately, the commission capped the tariff at 4.15 baht to alleviate financial burdens on the public.
Electricity prices in Thailand are influenced by several factors, including gas prices and the need to recover financial deficits incurred by the Electricity Generating Authority of Thailand (EGAT) and PTT Plc, the national oil and gas conglomerate. EGAT, in particular, has faced significant financial strain due to previous subsidy schemes designed to stabilize electricity prices.
Gas, accounting for 60% of Thailand’s power generation, is sourced domestically and through liquefied natural gas (LNG) imports. Limited domestic gas supply has led to greater reliance on imported LNG, which is subject to global price volatility. While spot market LNG prices may drop at times, electricity tariffs may not follow suit due to the ongoing requirement to reimburse EGAT and PTT for past subsidies and below-market gas sales.
This delicate balancing act underscores the complexity of electricity pricing in Thailand, where global energy markets and domestic fiscal policies intersect. The long-term outlook for power costs will hinge on both global gas trends and the state’s capacity to manage energy subsidies effectively.
