Energy Regulatory Commission (ERC) decreases Ft surcharge by 4 satang to -37.29 satang/unit to welcome the Year of the Rooster.

          Energy Regulatory Commission (ERC) approved a decrease of the Ft surcharge of Jan. – Apr. 2017 to -37.29 satang/unit, dropping from the last quarter (Sep. – Dec. 2016) by 4.00 satang/unit to reduce the burden on the consumers in the New Year.

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          Mr. Weerapol Chirapraditkul, a spokesman of Energy Regulatory Commission said that the ERC considered the results from the calculations of the Ft surcharge of Jan. – Apr. 2017, which is -41.09 satang/unit, decreasing from the last month by 7.80 satang/unit. It is different from the expectation that the Ft surcharge would increase because there are several power plants from the private sector and abroad under unplanned maintenance, which will contribute to the decrease of Available Payment (AP). With the consideration on the growth of power demand and the increase of gas price due to the oil price rise, combined with the gas supply cut from Yadana’s gas field in Myanmar and the need to seek other alternative fuels, it is expected that the Ft surcharge of May. – Aug. 2017 will increase. As a result, the ERC has approved the adjustment of the Ft in the period of Jan. – May. 2017 to decrease by 4.00 satang/unit. Then the Ft stands at -37.29 satang/unit, to reduce the burden on consumers and save money in case of fuel price fluctuation that will occur in the middle of the year.

          The main factor affecting the decrease in the Ft for the period of Jan. – Apr. 2017 is the cost of fuel for electricity generation that has risen slightly. The price of natural gas which is the main fuel for power generation increases by 6 baht/million BTU, while the fuel oil price also rises. Moreover, renewable energy support in the form of Adder and FiT is likely to increase due to the new capacities of SPP’s wind power plants that were postponed from the last quarter.

          The ERC spokesman also summarized the factors that affect the price of fuel and electricity in the period of Jan. – Apr. 2017 namely, 1) The exchange rate of the baht fell from the period of Sep. – Dec. 2016 to 0.08 baht/USD. 2) The demand of the electricity from Jan. – Apr. 2017 is 63,196 million units increasing from Sep – Dec 2017 by 908 million units, accounting for 1.46 percent. 3) Generation mix in the period of Jan. – Apr. 2017 is still mostly possessed by natural gas of 65.65 percent, followed by EGAT lignite 8.88 percent, purchase from Laos and Malaysia 8.43 percent, and imported coal 7.99 percent. 4) Natural gas price is expected to be 233.10 baht/million BTU, increasing from the previous quarter by 6.26 baht/million BTU, the price of fuel oil will be 14.80 baht/liter, increasing by 3.54 baht/liter, the price of diesel will be 19.15 baht/liter, decreasing by 0.49 baht/liter, the average price of imported coal will be 2,486.53 baht/ton, decreasing by 13 baht/ton in compliance with the decrease of coal price in the global market, and the EGAT lignite price will remain at 693 baht/ton.

          In addition, the Government’s renewable energy subsidy in the form of Adder and FiT during Jan. – Apr. 2017 increases as SPP and VSPP new power plants started their commercial operation, contributing to the impact on Ft surcharge with the rate of 22.49 satang/unit. It increases from Sep. – Dec. 2016 which was 21.60 satang/unit by 0.89 satang/unit due to the decrease of Ft surcharge during Jan. – Apr. 2017 at -37.29 satang/unit or a decrease from the previous quarter by 4 satang/unit. As a result, the average electricity price will be 3.3827 baht/unit (Excluding VAT).