Power Bills Will Hold Steady
By Yuthana Praiwan, Bangkok Post, Thailand
Mar. 17–Electricity bills for the four-month period starting from June likely will not increase because of the baht’s rise in value and the efficient debt management of natural gas deals, according to the Electricity Generating Authority of Thailand (Egat).
Egat governor Kraisi Kanasuta said a very minimal chance remained of an increase the next period in the fuel adjustment tariff, known as the Ft, even though fuel prices were rising at the moment.
Egat also faces the burden of debts to PTT Plc for natural gas purchase deals. Fortunately, the strengthening baht meant the real cost of fuel used in electricity production had increased by only a tiny amount, he said.
He also suggested that consumers do their part by setting air-conditioner temperatures at no less than 25 degrees Celsius, which is the most appropriate level for power consumption. Power bills increase 12 percent to 15 percent for each one-degree change.
In addition, cleaning air-conditioners every six months will also help reduce power bills by 10 percent to 12 percent.
In the summer, more air-conditioner use is inevitable. Setting the air temperature too low will cause consumers to pay more in power bills, because they are determined at a progressive rate.
Peak power demand this year is projected at 22,015 megawatts in April, up 5 percent from the same period last year.
Hot temperatures on Wednesday lifted peak demand for electricity to a record 21,374 MW, compared with 21,064 MW of the peak demand last year.
Mr Kraisi said the Energy Ministry was considering several options for Egat to pay back debts owed to PTT for natural gas purchases.
PTT borrowed six billion baht from October 2005 to January 2006 to reduce the cost of natural gas sold to Egat so it could in turn reduce the Ft cost by 15 satang per unit.
The Ft rate was reduced to help cushion the power bill in the light of rising oil prices at that time. The debt burden now has an impact on the Ft, and will continue to do so in the future.
One option is to allow Egat to issue debentures to raise funds for paying debts.
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