On January 8, Mr. Isares Rattanadilok Na Phuket, Vice President of the Federation of Thai Industries (FTI), responded to the proposed reduction of electricity costs to 3.70 THB per unit, an idea initially suggested by former Prime Minister Thaksin Shinawatra and supported by current Prime Minister Paetongtarn Shinawatra. Mr. Isares outlined six short-term strategies to achieve this target, a decrease from the current rate of 4.15 THB per unit for January-April 2025:

  1. Reduce Excess Margins: Cut excessive profit margins at all stages of electricity supply, production, and distribution. Lower primary fuel costs, including natural gas (NG) from the Gulf of Thailand and imported LNG, by reducing pipeline fees and ensuring procurement at the lowest prices.
  2. Adjust Availability Payments (AP): Negotiate lower AP rates and shift portions to energy payments (EP). This aims to address overcapacity in power plants without burdening consumers.
  3. Promote Renewable Energy: Maximize electricity generation from solar and other renewable sources, which have no fuel costs. Encourage businesses and individuals to adopt solar power and implement net billing to accelerate investment returns.
  4. Liberalize Third-Party Access (TPA): Open competition in the natural gas pipeline and electricity transmission sectors to reduce monopolistic practices and enhance fairness.
  5. Overhaul Aging Power Plants: Refurbish old power plants with expired contracts, which would lower production costs compared to building new facilities. This also helps reduce overcapacity in the power sector.
  6. Refinance EGAT Debt: Issue medium-term government bonds to refinance the Electricity Generating Authority of Thailand's (EGAT) debt, reducing interest burdens and extending repayment periods.

Mr. Isares emphasized the importance of immediate action on these strategies to lower electricity costs while ensuring long-term energy sustainability.