The Energy Regulatory Commission of Thailand (ERCT) has warned that the price of electricity in Thailand may exceed 4 baht per unit next year, due to factors ranging from the escalation of the war between Israel and Hamas and the prolonged war in Ukraine to the weakening of the baht currency against the greenback.

ERCT Secretary-General Komkrit Tantravanich said that these factors will have an impact on the price of crude oil and natural gas on the global market, which direct effects the cost of electricity generation.

Thailand relies on natural gas as a major fuel for electricity generation, he said, and external factors could be further compounded by whether the production target of 800 million cubic feet/day of natural gas in the Gulf of Thailand, especially from the Erawan field, is achieved by April.

If not, he said that Thailand would have to import more liquefied natural gas (LNG), currently priced at between US$17 and US$18 per million BTU, to supplement the production shortfall from the Gulf.

This will raise the cost of electricity generation for next year by 5-10 satang per unit, which may send the retail price of electricity over 4 baht per unit.

Energy Minister Pirapan Salirathavibhaga had previously promised that the ministry would try to maintain the price of electricity at 3.99 baht per unit until next year.