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NEPC Approves 7 Measures to Restructure Electricity Tariffs, Cuts First 200 Units of Household Bills to 3 Baht and Removes Road Lighting Fees

Governmentpolicy15 Jul 2026 15:00 GMT+7

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NEPC Approves 7 Measures to Restructure Electricity Tariffs, Cuts First 200 Units of Household Bills to 3 Baht and Removes Road Lighting Fees

The National Energy Policy Committee (NEPC) has approved seven measures to restructure electricity tariffs, aiming to ease the burden on the public by cutting household electricity rates for the first 200 units to 3 baht per unit. Eligibility is extended to cover dormitories and rental homes, while street lighting fees will be separated from electricity bills. Additionally, Data Centers will be strictly regulated to pay actual costs.

The NEPC has approved seven measures to restructure the electricity sector to reduce the public's electricity costs.

On 15 July 2026 GMT+7, Mr. Aeknat Promphan, Minister of Energy, announced that the National Energy Policy Committee (NEPC) meeting approved seven electricity-related measures aimed primarily at reducing electricity costs for the general public, while ensuring that high electricity consumers such as Data Centers and industries fairly bear their own costs without shifting the burden onto regular consumers.

1. Separate public electricity costs from general electricity bills.

To reduce the electricity burden on the public, the committee agreed to separate public electricity costs—such as street lighting—from rates charged to general electricity consumers and establish new specific rates. The Energy Regulatory Commission (ERC) has been tasked with amending laws and regulations related to the Electricity Development Fund to collect additional funds from new sources, including Data Center users, users with Direct Power Purchase Agreements (DPPA), revenue from reduced additional power purchase rates (Adder), and community solar projects. These funds will be used to reduce public electricity costs and household electricity expenses. Mr. Aeknat emphasized that this transition supports a stable shift towards clean energy, restructuring for free competition and fair pricing.

2. Reduce household electricity rates and redefine household electricity users.

The committee approved adjusting the progressive electricity rates for household consumers, reducing the rate for the first 1-200 units to 3 baht per unit, while units 201-400 and above remain at existing rates, excluding public electricity costs. This benefits users at all consumption levels through the restructuring.

Additionally, the definition of household electricity users will be expanded to include rental housing businesses such as rental homes, dormitories, and apartments, as well as houses without official registration, which currently must use temporary electricity rates that are higher. These users will now qualify for household rates, easing the burden mainly on tenants, including students and laborers.

3. Expand Direct PPA measures to other industries seeking clean energy.

The committee approved unlocking direct power purchase agreements (Direct PPA) for renewable energy through third-party access (TPA), extending coverage to Data Centers and industries demanding clean electricity. This allows these operators to procure clean power directly from producers, aligning with international trade standards emphasizing clean energy and opening the clean electricity market towards free competition.

4. Set separate electricity rates specifically for Data Centers.

The committee approved establishing distinct electricity rates for Data Centers that reflect the true costs of power procurement and the investments needed to expand power grids due to their increased demand. This includes costs from imported liquefied natural gas (LNG) and investments to upgrade the grid for higher stability, preventing these costs from becoming a burden on general consumers.

5. Require major Data Centers to provide guarantees for transmission usage.

For large electricity users, especially Data Centers, the committee approved requiring them to post bonds to guarantee transmission system usage, confirming their readiness and genuine investment commitment before the government expands the power system. They must also submit water management plans, as Data Centers consume large amounts of water for cooling, to prevent unnecessary investments that would burden general consumers and avoid water competition with the public and agriculture.

6. Address perpetual high-cost power purchase contracts (Adder issues).

To resolve the issue of perpetually expensive power purchase contracts, the NEPC agreed to implement proposals from the committee chaired by Deputy Prime Minister Mr. Pakorn Nilprapunt, tasked with solving problems from power purchase agreements with private producers. The committee proposed the following measures:

1. Clearly define contract end dates for all Non-Firm SPP and VSPP contracts that automatically renew.

2. Adjust power purchase rates to reflect actual costs, such as solar energy at 2.1579 baht per unit.

3. Assign the three state electricity authorities to negotiate contract amendments accordingly.

7. Advance the 1,500-megawatt community solar farm project with fair new criteria for all parties.

The committee approved proceeding with ground-mounted solar power plants, each not exceeding 10 megawatts per project, targeting a total purchase capacity of up to 1,500 megawatts. The Metropolitan Electricity Authority (MEA) and the Provincial Electricity Authority (PEA) will purchase power from these projects at a Feed-in Tariff (FiT) rate of 2.1679 baht per unit under 25-year Non-Firm contracts. The principle of one project per subdistrict will be applied to distribute benefits across many areas rather than concentrating them in one location.

Mr. Aeknat emphasized that this adjustment will channel benefits from price differences to reduce electricity costs for all consumers equally. Additionally, the project developer selection method has shifted from a 'first-come, first-served' basis to a competitive scoring system based on quality. Each developer may be selected for no more than 30 megawatts to prevent market concentration.

The community solar farm project is expected to increase the efficiency of end-user electricity consumption by producing clean energy, thereby reducing distribution costs for the electricity authorities.

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