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New Electricity Tariffs Trigger Debate Over Fair Cost Sharing

The government has defended its planned restructuring of electricity tariffs, stating that the new framework will lower overall household energy bills, despite higher rates for heavier users under what officials describe as a “fair burden-sharing” approach.

Speaking at Government House on Friday, Prime Minister Anutin Charnvirakul said the revised pricing model forms part of broader structural reforms aimed at reducing costs and expanding access to renewable energy.

He added that the policy is designed to empower consumers, particularly through increased adoption of rooftop solar systems.

“We are turning sunlight into money,” he said, referring to plans to expand rooftop solar installations. Households will be able to generate electricity for their own use, with surplus power purchased by the state and redistributed.

“This represents a shift in the structure of the electricity system towards the people.”

Addressing concerns over affordability, Mr Anutin said the cost of rooftop solar systems would decline over time as demand increases, drawing comparisons with early mobile phones that were once priced above 200,000 baht but are now widely accessible.

Responding to questions about whether households would face higher bills in the short term, Mr Anutin said: “Rates have already been reduced for the first 200 units for ordinary consumers — everyone benefits equally, at 3 baht per unit.

“Consumption between 200 and 400 units will be charged on a tiered basis, while usage above 400 units will be subject to a different rate.

“This reflects a fair sharing of the burden, as is the case in many systems in Thailand,” he said.

He acknowledged that the revised tariff structure would not be implemented in the current billing cycle, citing procedural requirements and the role of the Energy Regulatory Commission.

Mr Anutin added that the government is working to roll out the policy as quickly as possible, alongside other economic measures, with the aim of delivering tangible benefits by early June.

However, critics argue that the policy fails to address the underlying causes of high electricity costs. Rosana Tositrakul, a former senator, described the government’s claim of reducing electricity prices to 3 baht per unit as “only half the truth”.

Ms Rosana said the proposed changes merely redistribute financial burdens among consumers rather than resolving structural inefficiencies within the system.

She pointed to several key cost drivers that remain unaddressed, including availability payments to power producers, tariff subsidies (adder), and excess electricity reserves, which exceed demand by more than 50%.

Instead of tackling these structural issues, she said the government has adopted a progressive tariff system that shifts costs from low-usage to high-usage consumers.

“This is effectively asking the public to shoulder the burden among themselves, while leaving private power producers’ profits untouched,” she said.

Ms Rosana also highlighted the expanding role of private power companies, which now account for around 70% of electricity generation, while the Electricity Generating Authority of Thailand has increasingly become a buyer rather than the primary producer.

She further criticised past policies that, in her view, guaranteed returns for private firms through availability payments, regardless of whether electricity is generated — a factor she said continues to drive up tariffs.

Describing the tiered pricing model as a superficial solution, Ms Rosana warned that heavy electricity users would be most affected by the changes.

Quoting the English phrase that a “half truth is a whole lie”, she accused the government of presenting a misleading narrative.