ERC Plan Spend Nine Billion Baht to Freeze Ft Cost Till Year-End.
11-7-2019—Ms.Narupat Amornkosit Secretary General of Energy Regulatory Commission (ERC) as ERC spokesperson unveiled that ERC committee decided to maintain variable electricity cost (ft cost) for another four more months during period between September-December 2019 at -0.1160 Baht/unit that will make the average electricity cost will be maintain at 3.6396 baht/unit (VAT not included).
“ERC evaluated to spend nine (9) billion baht in Ft cost management, three (3) billion baht will be from the electricity operation efficiency supervision in the year 2018.The remain six (6) billion baht will be from the cooperation between EGAT and Electricity Distribution Department to be temporary absorb the electricity raised cost for people.” said Ms.Narupat.
“ERC don’t want electricity factor to effect domestic demand that might aggravate Thai Economy export slow down condition under the uncertainty of Trade War, then will focusing on management trying to maintain ft cost for four (4) more months.” she added.
Ms.Narupat said Without using the management budget, it was foresee that the ft cost for the last four months of 2019 would be 0.522 baht/unit, increased 0.1682 baht/unit from -0.116 baht/unit.
However, determined not to increase ft cost of the last four months of the year is the management under the major factor of the cost increasing trend which is remain fluctuated and pressure on ft cost is under the following assumption;
1) FX rate at 31.80 Baht/US Dollar or weaker than 31.0 Baht/US dollar, which is
the average estimation rate for the four months between May-August 2019.
2) The electricity demand during September-December 2019 will be 64,416.20 million units decreased 5.80% or 3,966.19 units from the period of May-August 2019, in accordance with the less electricity demand in winter season at year-end.
3) The fuel consumption during September-December 2019, will keep using natural gas as the major fuel for electricity production at 55.78%(about 142.768 trillion BTU), follow by 18.91% import electricity, 8.79 lignite and 7.93% import coal-fired (1,941,500 tons).
4) The trend of fuel price using in electricity production which estimate that natural gas price will be 305.20 baht/million BTU, 23.43 baht/million BTU higher than the past period, while the average import coal-fired price of private power plant will be 2,739.31 baht/ton, 96.18 baht/ton higher from the price of last period (2,643.13 baht/ton.)
