Energy Minister Pirapan Salirathavibhaga has floated the idea of reducing electricity bills by nearly 0.40 baht per kilowatt-hour (unit) by adjusting the gas usage of Pool Gas, leading to lower power generation costs.
The new reduced rate exceeds the 0.17 baht per unit previously suggested by the Energy Regulatory Commission (ERC), which believes its proposal is possible if the government cuts its spending on policies to promote investment in renewable energy.
Mr Pirapan said he prefers the Pool Gas adjustment over the ERC's plan as the latter may lead to legal complications.
Pool Gas is the weighted average wellhead price of gas from the Gulf of Thailand, the Malaysia-Thailand Joint Development Area, Myanmar and imported liquefied natural gas (LNG).
Gas makes up more than 60% of fuels used for power generation in the country. Local industries also use gas for their manufacturing processes.
Imported LNG prices are often expensive and fluctuate, making them the main factor behind higher electricity bills.
If authorities can better manage gas usage of Pool Gas for power generation and in the manufacturing sector, the power tariff, which is used to calculate electricity bills, can be reduced, said Mr Pirapan.
He did not elaborate on adjustment details, but analysts believe if changes can be made to Pool Gas, electricity producers can buy gas at cheaper prices than entrepreneurs in industrial sectors.
"We are working on Pool Gas management, hoping to reduce electricity prices in the next four-month cycle," said Mr Pirapan.
The ERC adjusts the power tariff every four months. The current rate of 4.15 baht a unit is for January to April this year.
"I believe we can reduce the power tariff to less than 4 baht a unit. We have to change and improve many parts of the country's power price structure, especially Pool Gas," he said.
The ERC wants the government to consider reducing its spending on renewable energy investment promotion, granted to private power producers as feed-in tariffs and adder tariffs.
This spending, together with expenditure on other energy-related purposes under state policy, comprises 4% of the power tariff, according to energy officials.
The two tariffs are part of power purchase agreements made with power firms.
Mr Pirapan said it would be illegal to cancel these conditions in contracts, which are renewed automatically every five years, and doing so could lead to lawsuits.