BANGKOK, THAILAND – Energy Minister Ekkanat Promphan announces a radical electricity price reform: From June, 23.2 million households will be relieved. But those who consume more than 400 units per month will have to pay more – or switch to solar power.
Minister droht mit Vertrags-Kahlschlag
Ekkanat Promphan shows toughness: He wants to renegotiate with private electricity producers who have been charging up to five baht per unit under so-called adder contracts. If they do not agree to a fair price, the minister threatens immediate termination of the contracts.
“If we don’t reach an agreement, the companies can sue the state – that is their right.”
said the minister. He has already involved the public prosecutor’s office. The plants have long since recouped their investments, he said; now prices must come down – otherwise the plug will be pulled.
Neue Tarife: Wer spart, wer zahlt?
The new tariff structure applies from June 2026 and is clearly tiered: Those who consume less than 200 units per month pay a maximum of three baht per unit. This affects 15.4 million households. Those between 200 and 400 units pay 3.95 baht – that is another 4.6 million households.
But for the 3.2 million households with more than 401 units, it gets really expensive: Instead of the previous 4.50 baht per unit, it will be over five baht in the future. The minister justifies this with the old, outdated structure:
“Nothing has changed for over 20 years. Now those who consume a lot pay more – that is fair.”
Solarpflicht für Großverbraucher
For those who consume 480 to 500 units or more per month, the government recommends: Install solar panels on the roof! This would allow households to supply themselves with electricity and reduce high costs. Those who cannot afford the purchase receive low-interest loans from the state.
The minister hopes that imports of expensive liquefied gas will fall by five to ten percent. That would reduce electricity costs for everyone by another ten satang per unit.
“We must reduce our dependence on foreign gas.”
said Ekkanat Promphan.
Einsparung von zehn Satang pro Einheit
Simply by terminating or renegotiating the adder contracts, the minister expects savings of ten satang per unit. That sounds small, but adds up to millions. The contracts cover 4,000 megawatts of capacity – ten percent of total electricity generation.
Ekkanat Promphan compared his approach to the dispute over oil refineries:
“The private companies are not making a loss – they are only making less profit. That has to change. I will not allow electricity prices to remain too high just because some companies continue to earn excessively.”
Hintergrund: Alte Struktur seit 20 Jahren
The previous tariff structure dates from before the turn of the millennium. At that time, electricity was still cheap, and gas imports played almost no role. Today, Thailand generates more than 60 percent of its electricity from natural gas, 30 percent of which from expensive imported LNG. In times of crisis, costs explode.
With the reform, the minister aims to protect low-consumption households. Higher consumer groups, on the other hand, are to produce their own electricity via solar systems – and thus relieve the entire system. A bold step that will hit many millionaires and villa owners.
Wer viel hat, soll auch zahlen
The reform hits especially those who can afford large villas, air conditioners, and swimming pools. They consume huge amounts of electricity and previously paid almost the same price as a small family in a one-room apartment. That is not only unfair – it drives up costs for everyone.
Do you think it is fair that large consumers are now being properly billed? Or does the reform end up hitting the wrong people? What do you think: Should the state create even more incentives for solar systems – or simply accept the high prices? Write your opinion – we are curious how you feel about it!