The higher tariff was due to be imposed between September and December this year, but now it will not be increased, reports the Bangkok Post.
The new rate, which had been authorised by the Energy Regulatory Commission, was initially scheduled to be announced yesterday (Aug 1), according to the source who requested anonymity.
The new power tariff was earlier expected to rise to B4.72 per kilowatt hour, up from a rate of B4 between May and August. The fuel tariff (Ft), a key element in the power tariff, is expected to rise to B0.93 per kilowatt hour, up from B0.24.
The planned rise was blamed on higher energy prices following sanctions imposed by the United States and its allies on Russia after its invasion of Ukraine in February.
Global crude oil prices have been increasing since late last year when many countries relaxed measures to contain the spread of COVID-19. Demand for oil also increased when Western nations entered the winter period.
A higher power tariff has also resulted from a huge decline in the domestic gas supply from the Gulf of Thailand, causing the country to import more expensive liquefied natural gas.
Gas makes up around 60% of the fuel used to generate electricity in Thailand.
The state-run Electricity Generating Authority of Thailand (Egat) has subsidised the power tariff to help relieve pressure on the cost of living, but this has cost it more than B87 billion.
Last month the government gave Egat permission to borrow B30bn from banks to help it deal with the huge financial burden.
Meanwhile, this week the Energy Policy Administration Committee (Epac) is also expected to raise the price of liquefied petroleum gas (LPG), which is used as cooking gas.
The LPG price will increase to between B393 and B408 per 15-kilogramme standard cylinder in August and September, respectively, permanent secretary for energy Kulit Sombatsiri said. Mr Kulit is a member of Epac.
The increase is part of the government’s efforts to relieve the burden on the state’s Oil Fuel Fund, which is used to subsidise diesel and LPG prices.
The fund has already run up losses of over B166bn.