Energy Minister Eknath Proposes New Electricity Rate Structure with 30-40% System-Wide Reduction; Users at 400+ Units No Fixed 5-Baht Charge
Thailand's Energy Minister Eknath Phrom-phun presented a new household electricity rate structure to the cabinet that will reduce costs by 20-40%, with charges capped at 3 baht for the first 200 units and 3.95 baht per unit for 200-400 units. The restructured tiered system aims to provide relief to 23 million households while the government simultaneously pursues renewable energy expansion and cancellation of costly long-term contracts. Implementation is expected in June with consumers seeing the new rates reflected in their end-of-month bills.
At 8:30 a.m. on April 28, 2025, at the Government House, Energy Minister Eknath Phrom-phun outlined a restructured household electricity rate before a cabinet meeting. The new structure charges no more than 3 baht for the first 200 units, 3.95 baht per unit for 200-400 units, and a new rate of 5 baht per unit for usage above 401 units. The minister explained that previous electricity price increases were driven by LNG costs tied to global market prices, which spiked when Middle East tensions caused gas prices to double. The new rate formula will reduce electricity costs system-wide by 30-40%, benefiting all 23 million households assessed under this structure. The minister clarified misconceptions, emphasizing that the new tiered structure means households using the first 200 units receive full benefits with a 20% reduction, while those exceeding 200 units still benefit from the 10% discount on that baseline. The Energy Ministry's agenda, designated as a national priority, will be presented at the cabinet meeting today, including initiatives to promote solar rooftop installations with reduced bureaucracy—condensing multiple agency visits into a single process completed within 30 days—and securing affordable installment financing. Additional measures include promoting domestically-produced electric bicycles and motorcycles, improving energy efficiency in government facilities and street lighting, and permanently reducing electricity rates by canceling perpetual unfair contracts. The government aims to reduce gas dependency in power generation by cutting expensive imports and expanding solar energy use. The minister will meet with the National Energy Policy Committee on April 29 to proceed with public consultation, with implementation expected in June's bill cycle, allowing consumers to pay the new rates by month-end.