Thailand pushes new plan to cut electricity bills  

He believes this can be done by changing how the country uses natural gas for power generation.

His plan could bring bigger savings than a previous suggestion by the Energy Regulatory Commission, which aimed to cut bills by 0.17 baht per unit by reducing government spending on renewable energy incentives.

However, Pirapan says that approach could cause legal problems.

Most of Thailand’s electricity comes from natural gas, which is expensive and makes up more than 60% of the country’s energy supply.

The price of imported liquefied natural gas, or LNG, often changes and is a major reason why power bills are high.

According to the minister, that is a better management of locally sourced and imported gas, known as Pool Gas, could make electricity cheaper.

Experts say the plan might allow power plants to buy gas at lower prices than factories.

Pirapan hopes this strategy will reduce electricity prices in the next four-month pricing cycle. The current electricity rate is 4.15 baht per unit, and he believes it can be brought down to below 4 baht.

The Energy Regulatory Commission adjusts electricity prices every four months, so any changes would take effect in the next cycle.

One option suggested by the commission is cutting government subsidies that support private companies producing renewable energy. These subsidies make up about 4% of electricity costs.

However, the minister says the government cannot cancel these contracts because they are renewed automatically every five years. Breaking the agreements could lead to lawsuits.

Bangkok reports that the government is now working on Pool Gas management to find a way to bring electricity prices down while avoiding legal issues.