Government Moves to Reform Electricity Structure to Cut Costs

Bangkok: The government is taking decisive steps toward reducing electricity costs, with Mr. Pirapan Salirathavibhaga, Deputy Prime Minister and Minister of Energy, spearheading efforts to overhaul the country’s electricity structure. This initiative aims to facilitate the installation of rooftop solar panels and address the persistent issue of high electricity bills.

According to Thai News Agency, Ms. Sasikarn Wattanachan, Deputy Government Spokesperson, highlighted on the program ‘Voices from the Heart of Thais in the Sky’ that the government is accelerating major reforms in the electricity sector. Led by Mr. Pirapan, these reforms are intended to address the long-standing electricity price issue and promote fairness across all sectors.

The high electricity costs in Thailand, despite the presence of domestic power plants, are attributed to the complex power system and excessive reliance on private sector electricity production. Thailand’s dependence on imported LNG, with prices subject to global market fluctuations, and long-term power purchase agreements with the private sector, contribute to the public bearing unfair prices.

Mr. Pirapan recently outlined a significant guideline to ‘revamp the PDP’ or the new national power development plan. This plan will enable government agencies like the Electricity Generating Authority of Thailand (EGAT) to assume a more substantial role, reducing dependency on the private sector and genuinely lowering electricity costs. Additionally, the government is pushing for a law to promote solar energy use, simplifying the process for individuals to install solar panels on their roofs with merely a notification. The draft law is currently under Cabinet consideration.

Mr. Pirapan is also expediting negotiations with manufacturers to make solar cells affordable for Thai citizens, facilitating access to clean energy. Lower electricity costs will benefit households and reduce production expenses for businesses and industries. With over 70,000 factories nationwide requiring substantial electricity, reduced costs are expected to make products cheaper, benefiting both consumers and the economy.

Ms. Sasikarn emphasized, ‘The government reiterates that energy is a matter of national security and the well-being of Thai people. We understand the long-standing issue of electricity costs and its impact on our citizens. The government is committed to thoroughly addressing this problem. We urge everyone to support this reform for the genuine benefit of all Thai people.’