Eknath to Propose Canceling Over 4,000 MW Private Power Purchase Contracts with "Adder" Scheme to National Energy Committee
Energy Minister Eknath plans to cancel over 4,000 MW of renewable power contracts under the Adder scheme, potentially reducing electricity costs by 10 satang per unit if negotiations succeed. New rate structures affecting 23.2 million house
Energy Minister Eknath Promphan revealed that the government is currently negotiating with relevant agencies to restructure electricity rates and is preparing to terminate contracts with private power producers in renewable energy projects operating under the Additional Price Purchase (Adder) scheme. Currently, over 4,000 megawatts of capacity are covered under automatic contract renewals at rates of approximately 3-5 baht per unit, representing about 10% of total generating capacity and imposing around 20 satang per unit on the automatic fuel adjustment charge (FT). Successful negotiations could reduce electricity costs by approximately 10 satang per unit.
If negotiations fail to reduce rates to appropriate levels—such as solar power not exceeding 2.20 baht per unit and biomass fuel at fair prices—the government is prepared to propose the new rate structure to the cabinet and the National Energy Policy Committee (NEPC) on April 29, 2025. The current stepped tariff structure, similar to progressive taxation, charges less for lower consumption and more for higher consumption, though the differences between tiers remain unclear.
The new electricity rate restructuring will affect 23.2 million households, with implementation beginning in June 2025. The structure includes: customers using up to 200 units (covering 23.2 million households) will pay no more than 3 baht per unit; customers using 200-400 units (4.6 million households) will pay 3.95 baht per unit; and customers using over 401 units (3.2 million households) are awaiting new rates and are encouraged to install solar panels.
For customers exceeding 400 units, the rate will increase by approximately 1 baht to over 5 baht per unit, up from the current 4.50 baht. The government recommends that households using 480-500 units or more install rooftop solar panels to generate their own electricity, with government support through low-interest loans. Installing a 1-kilowatt solar system generates 100-150 units of electricity monthly.
