Bangkok: “Thep Rat,” the Governor of the Electricity Generating Authority of Thailand (EGAT), expressed satisfaction as EGAT achieved the top position among state enterprises contributing financially to the government while effectively managing electricity costs. Thepparat highlighted that the trend of electricity costs will continue to decrease and emphasized EGAT’s commitment to stability and affordability, despite the burden of over 70 billion baht in electricity debts. He also pointed out the potential risks in energy management due to concentrated investment in the Eastern Economic Corridor (EEC).
According to Thai News Agency, Mr. Thepparat Theppitak, EGAT’s 16th Governor, stated that the EGAT Group is prepared to align with the government’s policy, which involves negotiating LNG gas investments and purchases with the United States to balance trade. He stressed the importance of securing competitive auction prices for gas to minimize costs for electricity users, echoing the principle of competitive cos
ts in international trade.
The EGAT Governor noted a potential decrease in future electricity prices, currently at 3.98 baht per unit for May-August 2025, due to declining fuel prices and a strengthening baht at 32.38 baht/US dollar. EGAT has reduced its fuel-related debt to 71,000 million baht. Operating efficiently, EGAT contributes 50% of its profits to the government, recently achieving the number one position among state enterprises in government contributions, despite holding only a 29% market share in electricity production.
The government regulates the income returns of the three electricity authorities, capping the return on investment for operations at 5%. Surplus benefits exceeding this rate are reclaimed by the Energy Regulatory Commission (ERC) as discounts on electricity bills, which currently amount to about 12,200 million baht or 17 satang per unit.
Mr. Thepparat emphasized EGAT’s role as a state instrument in managing electricity costs and government contributions. He noted that without E
GAT’s 150 billion baht electricity cost share in 2022, electricity costs would have surged to 7-8 baht per unit. Increasing EGAT’s share in electricity production could further benefit the state and its citizens.
Additionally, Mr. Thepparat addressed concerns about the electrical system’s security, a topic of ongoing discussion among the three Electricity Generating Authorities. Recently, they alerted the Board of Investment (BOI) to the concentration of new investments in the EEC, which could necessitate up to 10,000 megawatts of new electricity projects. Potential disruptions in the EEC’s electrical system could impact the industrial sector.
There is also apprehension regarding the national energy plan’s future, which aims for 50% renewable energy use. Thepparat highlighted the need for strategic planning, citing Spain’s 60% renewable energy reliance, which led to a nationwide power outage in April 2015. He emphasized the importance of learning from such examples to prevent similar issues in Thailand.