Government Establishes Committee to Study Electricity Rate Structure and Private Power Purchase Agreements
Thailand's government has established a committee led by Deputy PM Pakorn Nilpraband to study and reform electricity rate structures, particularly addressing costly private power purchase agreements that have driven up household and busines
Prime Minister Anuthim Charnvirakul's government, under the leadership of Deputy Prime Minister Pakorn Nilpraband, has prioritized structural reforms to electricity pricing, particularly addressing costs stemming from private power producer contracts. Key concerns center on two pricing components: Availability Payment (AP) and Energy Payment (EP), which have become contentious issues as electricity rates have climbed.
On May 11, 2025, the Prime Minister issued an order establishing a committee tasked with resolving problems arising from private power purchase agreements. Deputy Prime Minister Pakorn Nilpraband serves as chairman, with the Energy Minister as vice-chairman. The committee includes representatives from the Energy Ministry, Interior Ministry, Office of the Attorney General, the Constitutional Court Office, the National Development Council, Consumer Protection Board, the Electricity Generating Authority of Thailand, Metropolitan Electricity Authority, Provincial Electricity Authority, the National Broadcasting and Telecommunications Commission, and civil society representatives.
The committee's mandate includes studying approaches to resolve irregularities in private power purchase contracts—both availability and energy payment components—and proposing policy recommendations that comply with law, treat all parties fairly, and align costs with public burden.
The government acknowledges that electricity is a vital cost for households and businesses but emphasizes that solutions must be comprehensive, not merely short-term fixes. Thailand's power system involves energy security, long-term investment, and business confidence. The government commits to a transparent process engaging all stakeholders to develop solutions aimed at creating a stable, transparent, competitive Thai energy system that maximizes public benefit while maintaining investment incentives.
"As the world faces an energy crisis, Thailand's government views this not merely as a crisis to manage but as an opportunity to reform electricity rate structures fairly," spokeswoman Ratchada Thanadirek stated. "Citizens deserve protection, and law-abiding businesses need viable returns and incentives to continue investing in and developing Thailand's power system."
