Demand for electricity in Thailand, which is expected to increase this year, will boost revenue for SET-listed Global Power Synergy (GPSC) after it experienced a slight drop in earnings in 2024.
The anticipated increase in power consumption is based mainly on the Bank of Thailand's GDP growth projection for 2025 of 2.5%, said Worawat Pitayasiri, president and chief executive of GPSC, the power generation arm of national oil and gas conglomerate PTT Plc.
When looking at changes in electricity consumption in response to the economic growth projection, the company anticipates domestic power demand to rise by 2.6%, which would lead to higher revenue for the company, he said.
Last year GPSC earned 90.7 billion baht, a year-on-year decrease of 0.4%, while net profit rose by 10% to 4.06 billion baht.
Other factors that will affect electricity demand in Thailand include the power tariff, which is used to calculate power bills, and the prices of fuels, notably natural gas.
Gas makes up more than 60% of fuels used for power generation in the country.
A surge in the price of power bills usually results from higher prices of gas, especially the price of imported liquefied natural gas (LNG) which fluctuates easily. LNG accounts for 30% of gas supply in Thailand.
According to energy officials, the power tariff imposed on businesses and households currently stands at 4.15 baht per kilowatt-hour (unit). This is lower than 5.49 baht a unit, which is the rate that is based on the actual cost of electricity generation.
The reduction is partly attributed to sales of natural gas by PTT and the Electricity Generating Authority of Thailand (Egat) at below-market prices.
Egat has played a key role in helping the government control electricity prices. The authority's electricity price subsidy programme in the past led to a huge loss of 85.2 billion baht as of last month.
The 4.15-baht rate is applicable between January and April 2025. Authorities are seeking to find ways to further decrease the power tariff to less than 4 baht a unit.
According to GPSC, the Pool Gas price is projected at 303 baht per million British thermal units (BTUs) this year, compared with 304 baht per million BTUs last year.
Pool Gas is the weighted average wellhead price of gas from the Gulf of Thailand, the Malaysia-Thailand Joint Development Area, Myanmar and imported LNG.
GPSC is monitoring gas prices in the global market after Ukraine decided not to renew an agreement on the transit of Russian gas via Ukraine to the EU while gas demand in the northern hemisphere is expected to rise during the winter due to the forecast of lower-than average temperatures in Europe.
Prices of coal, another fuel used for power generation, are projected to decrease to US$125 per tonne this year from $135 in 2030 due to an increase in coal production in China and India and greater use of renewable fuels, especially in Europe.