Bangkok, April 1, 2025 – In a move aimed at easing financial pressures on households and businesses, Thailand’s cabinet on Tuesday approved a proposal to slash electricity rates from 4.15 baht per kilowatt-hour (kWh) to 3.99 baht per kWh. The reduction, effective from May 1 to August 31, 2025, marks a 4% decrease in power bills for the four-month period and comes as part of the government’s broader efforts to address rising living costs.
The decision, announced following the weekly cabinet meeting, was led by Prime Minister Paetongtarn Shinawatra and the Ministry of Energy. “This reduction is about putting money back into people’s pockets,” the Prime Minister stated, referring to the government’s intent to ease economic burdens without relying on state subsidies. The new rate, which caps electricity charges at 3.99 baht per unit, awaits final approval from the Energy Regulatory Commission (ERC), expected later this month.
Thailand’s electricity tariffs are reviewed every four months, adjusted to reflect fluctuating fuel costs, exchange rates, and other economic variables. The current rate of 4.15 baht per kWh, in place since January 2025, has been a point of contention as households grapple with high energy prices driven by global fuel market volatility. Earlier projections from the ERC had suggested rates for the May-August period could range between 4.15 and 5.16 baht per unit, depending on repayments owed to the Electricity Generating Authority of Thailand (EGAT) and other energy entities for past subsidies. Tuesday’s approval locks in the lower end of that spectrum, offering relief to consumers.
The move comes amid ongoing debates over Thailand’s energy policy. EGAT, the state-run power company, has faced financial strain after years of subsidizing electricity costs, a burden exacerbated by long-term power-purchase agreements that have left the country with a 30% electricity surplus—double the level deemed adequate globally. Critics, including former Prime Minister Thaksin Shinawatra, have called for deeper structural reforms to bring rates closer to 2.70 baht per unit, though such a drastic cut remains a distant goal given existing contracts and infrastructure costs.
Energy regulators have cautioned that their ability to lower rates is limited without government intervention, as a portion of the tariff must reimburse EGAT, PTT (the national oil and gas company), and gas shippers for previous cost offsets. However, the cabinet’s directive ensures the 3.99 baht rate will be achieved without dipping into state funds, a balancing act that may involve renegotiating fuel costs or optimizing domestic gas supplies from the Gulf of Thailand.
For the average Thai household, the reduction translates to modest but tangible savings. A family using 300 kWh per month, for example, would see their bill drop from 1,245 baht to 1,197 baht—a savings of 48 baht monthly. Businesses, particularly small and medium enterprises still recovering from economic challenges, also stand to benefit, though industry leaders continue to push for rates below 4 baht to boost competitiveness.
The cabinet’s decision has been met with cautious optimism. “It’s a step in the right direction, but we need long-term solutions,” said Kriengkrai Thiennukul, President of the Federation of Thai Industries, echoing sentiments that sustained relief requires market reforms. Meanwhile, social media buzzed with approval from citizens, with posts on social media hailing the cut as “good news” for a population weary of rising expenses.
