Bangkok: The Governor of the Electricity Generating Authority of Thailand (EGAT), Thepparat Theppitak, expressed his satisfaction as EGAT has achieved the top position in revenue contribution among state enterprises, while also managing electricity costs effectively. Despite being burdened with electricity debts exceeding 70 billion baht, EGAT continues to fulfill its mission of ensuring stability and affordable electricity costs.
According to Thai News Agency, Mr. Thepparat, who serves as the 16th Governor of EGAT, emphasized that the organization is committed to aligning with the government's policy, which includes plans to engage in discussions with the United States regarding investment and the acquisition of LNG gas. The primary focus is on securing gas at competitive auction prices to benefit electricity users and maintain a trade balance. This approach mirrors the principle of competitive costs that govern U.S. imports from Thailand.
Mr. Thepparat noted the possibility of a decrease in future electricity prices compared to the current rate of 3.98 baht per unit, attributing this potential drop to the weakening trend in fuel prices and the strengthening of the baht against the US dollar. Despite the debt incurred from fuel procurement, which stands at approximately 71,000 million baht, EGAT has achieved a notable milestone by sending 50% of its profits to the government, securing the top rank among state enterprises in revenue contribution.
The government regulates the income returns of the three electricity authorities, setting a cap on the return on investment for operations at 5%. Any excess is reclaimed by the Energy Regulatory Commission (ERC) to offer discounts on electricity bills, as evidenced by the current period's bill being reduced by about 12,200 million baht, or 17 satang per unit.
Mr. Thepparat highlighted EGAT's role as a state tool dedicated to serving the public interest by maintaining reasonable electricity costs and transferring funds to the government. He noted that without EGAT's intervention in 2022, electricity costs could have surged to 7-8 baht per unit. Increasing EGAT's share of electricity production would further enhance its ability to benefit the state and its citizens.
Additionally, Mr. Thepparat addressed concerns about the security of the electrical system, emphasizing ongoing collaboration among the three Electricity Generating Authorities. They recently communicated their apprehensions to the Board of Investment (BOI) regarding the concentration of new investments in the Eastern Economic Corridor (EEC) area, which poses a risk of energy management challenges. The demand for new electricity projects in the region, especially data centers, is projected to reach 10,000 megawatts, raising concerns about potential disruptions in the industrial sector.
Furthermore, Mr. Thepparat stressed the importance of careful planning for the future national energy plan, which aims to incorporate up to 50% renewable energy. Citing Spain's experience with a nationwide power outage in 2015 due to a reliance on 60% renewable energy, he urged Thailand to learn from this case study and implement preventive measures to avoid similar occurrences.