The government is accelerating efforts to revise the electricity pricing structure, aiming to negotiate adjustments to power purchase agreements with private companies to reflect actual costs.

The Prime Minister emphasized that every step in restructuring electricity tariffs must be based on the law and fairness. The committee is preparing to submit the proposal to the National Energy Policy Council (NEPC) for consideration before allowing electricity agencies to begin negotiations with private power producers to adjust contracts.

On July 12, 2569 at 12.46:XNUMX a.m. Ms. Ratchada Thanadirek, spokesperson for the Prime Minister's Office, revealed the progress in resolving the electricity pricing structure issues, stating that following the consideration of solutions to problems arising from the purchase of electricity from private power producers by Deputy Prime Minister Pakorn Nilapraphan, approaches to improving power purchase agreements for solar and wind energy have been reviewed. The main goal is to reduce the electricity cost burden on the public by revising the cost structure in the long term.

In this regard, the Prime Minister listened to the concerns of all sectors, including the public who want to see lower electricity bills and the private sector, which values ​​confidence in government policies. He therefore instructed that all steps be taken cautiously, based on the law, and considering the impact in all dimensions.

Ms. Rachada stated that Deputy Prime Minister Pakorn Nilapraphan, as chairman of the committee, indicated that the committee's approach to this matter is consistent with the opinion of the Office of the Attorney General, which stated that power purchase agreements between the state and private companies are administrative contracts, empowering the state to act for the public good. However, the committee believes that negotiating with the private sector to revise the contract terms is a more appropriate approach, as it can ensure fairness for the public while maintaining investor confidence and the rule of law.

The committee also noted that some contract clauses should be reviewed, particularly those that maintain the contract's binding effect without allowing for renegotiation, despite significant changes in costs, technology, and the energy market. This includes issues regarding the purchase price of electricity from solar and wind power, with a proposal to consider adjusting the purchase price components to reflect actual costs.

Ms. Rachada stated that the next step is for the committee to submit its findings to the National Energy Policy Council (NEPC) to establish policy. Following this, the Electricity Generating Authority of Thailand (EGAT), the Metropolitan Electricity Authority (MEA), and the Provincial Electricity Authority (PEA) will be tasked with holding discussions with their contract partners to find a mutually acceptable solution.

It is important to emphasize that this resolution of electricity price issues is not a short-term measure or one that would negatively impact the investment climate. Instead, it is a restructuring of costs to align with current circumstances, ensuring that the public benefits from fair electricity prices. At the same time, Thailand remains a country that respects laws and contracts, and continues to build confidence among both domestic and international investors.

“The government believes that reducing electricity costs and maintaining investor confidence can go hand-in-hand if all parties work together to find a fair, transparent, and public-interest-based approach. Therefore, resolving electricity costs must address the cost structure to achieve sustainable results, not just immediate solutions. At the same time, this contract amendment is not a retroactive change to the rules, but rather an opening of negotiations based on the law and mutual agreement, to ensure the contract aligns with changing costs and economic conditions,” Ms. Rachada said.

refer : thaigov.go.th

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