Office of the Energy Regulatory Commission (OERC) will have to wait for the new government to decide whether electricity rates can be cut to Bt4.25 per unit, as requested by the Joint Standing Committee on Commerce, Industry and Banking, said Komkrit Tantravanich, secretary-general of the office, today (Tuesday).

He admitted that the OERC does not have sufficient funds to absorb the power rate cuts, pointing out that a 500-600 million baht budget would be needed if the rate is to be cut by one satang and, if the rate is to be cut by 20 satang, up to Bt15 billion would be needed. Hence, the new government should decide the matter.

He also said, however, that the power rate is calculated on the bases of the price of liquefied natural gas (LNG), the amount of gas available in the Gulf of Thailand and the liquidity of the Electricity Generating Authority of Thailand (EGAT), the country’s major electricity producer.

Komkrit said the office has been informed by EGAT of the prospect that the electricity production by hydroelectric dams in Laos next year my drop, due to the drought, which will force EGAT to switch its energy sources to LNG and coal to make up the shortfall.