Thailand's Energy Regulatory Commission Sets New Electricity Price Guidelines

Strategic Insights -

Thailand's Energy Regulatory Commission (ERC) has set new electricity price guidelines to reduce prices for solar power purchase projects and promote efficient electricity use among residential users. The commission has also extended the life of the Nam Phong Power Plant by 6 years, managed the Mae Moh Power Plant, and cancelled plans to separate the System Operator (SO). The move aims to reduce net electricity production costs and maximize the use of domestic resources. Residential electricity users under the normal tariff can expect a reduction in their bills, with the maximum monthly electricity consumption limit to be determined by the ERC.

Key Takeaways:

  • The Energy Regulatory Commission (ERC) has ordered negotiations with the private sector to reduce electricity prices for solar power purchase projects, setting the price at 3.94 baht/unit for September-December 2025.
  • The ERC will consider adjusting the timeframe for the power purchase agreement (PPA) and extending the Commercial Operation Date (SCOD) to no later than 2030 for solar power projects.
  • The ERC has assigned EGAT, PEA, MEA, and EPPO to negotiate electricity rates with private operators for solar power projects.
  • The operation life of Nam Phong Combined Cycle Power Plant Units 1 and 2 has been extended by 6 years, from January 1, 2026, to September 30, 2031, which will reduce net electricity production costs by approximately 28.358 billion baht over the six-year period.
  • The management guidelines for Mae Moh Power Plant were approved, including postponing the decommissioning of Units 8 and 11 from December 31, 2025, to December 31, 2031, and proceeding with the renovation of Units 12 and 13.
  • The reduction in electricity bills for residential electricity users under the normal tariff will not exceed the rate announced by the ERC for each Ft cycle, starting from September to December 2025.
  • EGAT and PEA are tasked with reviewing the electricity consumption range eligible for the discount to cover the majority of residential electricity users.
  • The Provincial Electricity Authority (PEA) and the Metropolitan Electricity Authority (MEA) have been instructed to strictly implement the reduction in electricity prices for neighboring countries in accordance with the 2015 NEPC resolution.

Statistics:

  • The net electricity production costs will be reduced by approximately 28.358 billion baht over the six-year period.
  • The energy price for solar power purchase projects is set at 3.94 baht/unit for September-December 2025.
  • The maximum monthly electricity consumption limit for residential users is yet to be determined by the ERC.
  • The reduction in Ft charge will be approximately 3.67 satang per unit, representing a decrease of approximately 9,566 million baht per year.

Sources:

  • Thai News Agency, 22 Aug 2025
  • Thai News Agency, 13 Feb 2023
  • Thai News Agency, 24 May 2022
  • Energy Regulatory Commission (ERC) resolution, 6 May 2025
  • National Energy Policy Council (NEPC) resolution, 6 May 2025
  • National Energy Policy Council (NEPC) resolution, 24 May 2022