The Electrical Power Authority of Thailand (EGAT) has actually revealed that it can not captivate any additional ask for less expensive electrical power costs in the upcoming four-month cycle. The choice comes as EGAT deals with monetary pressure due to its built up loss, which arised from supporting power costs in between September 2021 and May 2023. The Energy Regulatory Commission (ERC) approximates the built up loss to reduce to 135 billion baht by the end of the present month.
To deal with the monetary scenario, EGAT has actually consented to carry out a brand-new power tariff rate of 4.45 baht per kilowatt-hour from September to December this year. This tariff will assist the authority clear its losses by April 2025, with part of the cash compensating EGAT. Nevertheless, the firm has actually revealed issues that additional cuts in electrical power costs would impede its capability to pay back financial obligations and effect its future financial investment in power facilities.
The previous high electrical power costs were slammed for triggering companies to increase item costs, eventually raising the expense of living. The Federation of Thai Industries recommended that decreasing electrical power costs would assist companies handle running expenses and make Thailand a more appealing financial investment location. Nevertheless, Egat thinks that the authorized 4.45-baht rate strikes a balance in between attending to customer issues and securing the authority’s monetary stability for future energy facilities financial investments.
EGAT Guv Boonyanit Wongrukmit explained the value of prompt financial obligation payment to prevent possible unfavorable impacts on the authority’s capital and credit score, which might lead to greater loan rates. He likewise highlighted the significance of keeping financial investment in power transmission growth to make sure long-lasting energy security for the nation. ( NNT)
