The Electricity Generating Authority of Thailand (EGAT) is to propose that the government changes the recalculation of the fuel tariff (FT) on electricity from every four months to once a year, to ease fluctuations in electricity prices for industries and households.

Thepparat Theppitak, the new EGAT governor, admitted the frequent recalculation of the FT has resulted in frequent changes in the price consumers pay for electricity, affecting households and making it difficult for industries to forecast their production costs.

Recalculating the FT annually would be beneficial and fair to all stakeholders in the long run and EGAT would be better able to manage its energy production costs, said the new governor, adding that the current electricity price of 4.18 baht/unit is reasonable.

EGAT is currently shouldering 99 billion baht in debt, incurred by subsidising the FT to keep the electricity price at 4.18 baht/unit.

Thepparat said EGAT expects to receive repayment of the debt in seven instalments from the government, which will help boost its cash flow and credit rating.