ERC resolution to keep Ft surcharge of Sep-Dec 2016 at -33.29 satang/unit

          Energy Regulatory Commission (ERC) approved the Ft surcharge of Sep-Dec 2016 to maintain at -33.29 satang/unit. The reduction of fuel cost will deduct the Ft surcharge in the beginning of next year instead. It is expected that the fee will be surely boosted in 2017. ERC publicized the new Ft surcharge on the website for public hearing from August 18 to September 1, 2016. The feedback will be considered before the electricity distributors put the new FT surcharge on electricity bills.

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          By considering the fuel cost of Sep-Dec 2016 that decreased 75 satang/unit, the Ft surcharge should have dropped 4.23 satang/unit to stand at -77.52 satang/unit. However, ERC expected that during Jan-April 2017 the electricity price would increase surely because of the regularly annual maintenance of Myanmar’s pipeline together with the higher demand during the summer. The price of fuels including gas, coal, and oil also tended to rise. As a result, ERC decided not to reduce the Ft surcharge in this period but would reduce in the beginning of 2017.

          Accumulated Factor resulting from calculation of fuel cost and renewable energy subsidy that would be used to reduce the electricity price in the beginning of 2017 amounted 2,397 million baht, which could save the electricity price 2.9 satang/unit, compared to the previous expectation of Ft surcharge to increase at least 8-11 satang/unit.

          Fuel costs for power generation of Sep-Dec 2016 are as follows: 1) Gas price is 236.04 baht/million BTU, a decrease by 6.24 baht/million BTU from the previous quarter. 2) Fuel oil price is 10.11 baht/liter, a decrease by 2.48 baht/liter. 3) Diesel price is 20.13 baht/liter, a decrease by 0.74 baht/liter. 4) The price of imported coal is 2,581.05 baht/ton, a decrease by 162.06 baht/ton and 5) Lignite price stands at 693 baht/ton.