The Ministry of Energy will propose a cap on electricity costs for low-usage households to help ease the burden on more than 14 million families amid rising global energy prices driven by ongoing tensions in the Middle East.
Energy Minister Akanat Promphan said the proposal, to be submitted to the cabinet and the National Energy Policy Council next week, would limit electricity rates for the first 200 units (kilowatt/hours) of consumption to no more than 3 baht per unit – 22% below the current rate of 3.88 baht.
Under the plan, households consuming more than 200 units would still benefit from the capped rate for their initial usage, while higher consumption would be charged at progressively higher rates under a tiered pricing structure designed to promote fairness.
The move comes as Thailand faces increasing electricity generation costs due to higher prices for imported liquefied natural gas (LNG), which accounts for 30-40% of the fuel used in power generation. Authorities expect the electricity tariff to rise from 3.88 baht now to 3.95 baht per unit for the period from May 1 to Aug 31 as a result.
Mr Akanat acknowledged that keeping prices artificially low across the board could affect long-term investment by state power utilities in energy system upgrades. Instead, the government is focusing targeted relief on lower-income and lower-usage households.
To further reduce electricity bills, the ministry is encouraging households with higher consumption to install rooftop solar panels. Planned support measures include low-interest loans, tax incentives and schemes to purchase excess electricity generated by households.
The minister admitted that past efforts to promote solar adoption have encountered bureaucratic hurdles and resistance. Although regulations have been eased – including removing the requirement for factory permits – significant obstacles remain, such as lengthy approval processes for building modifications and delays in installing digital meters, which can take more than a year.
The government now plans to streamline procedures through a one-stop service system and reduce approval steps to accelerate adoption. Officials say the financial support offered could cut household electricity expenses by at least half.
Mr Akanat added that broader energy reforms are needed to address long-term issues. While Thailand is affected by global energy volatility, the government is turning crisis into opportunity to restructure the energy system, reduce dependence on imports and move toward sustainable energy goals, including net-zero emissions and expanded use of biofuels.