The government spokesperson confirmed continuing efforts to revise private power purchase contracts so they are acceptable to all parties, emphasizing a focus on long-term problem-solving by fairly restructuring costs to align with current circumstances.
On 12 Jul 2026 GMT+7, Ms. Ratchada Thanadirek, spokesperson for the Prime Minister’s Office, disclosed progress in resolving electricity cost structure issues. Following the committee chaired by Deputy Prime Minister Pakorn Nilprapunt, tasked with addressing problems from purchasing electricity from private producers, the committee reviewed approaches to improve power purchase contracts for solar and wind energy with the key goal of reducing the public's electricity burden by addressing cost structure issues long-term.
The Prime Minister has listened to concerns from all sectors, including citizens seeking lower electricity rates and the private sector prioritizing policy confidence. He has instructed that all steps be conducted carefully, based on legal grounds, and considering impacts from all angles.
Ms. Ratchada stated that Deputy Prime Minister Pakorn Nilprapunt, as committee chair, indicated the committee’s approach aligns with the Office of the Attorney General’s opinion that power purchase contracts between the state and private sector are administrative contracts, enabling the state to act for public benefit. However, the committee views negotiation with private parties to revise contract terms as a more appropriate path, as it ensures fairness to the public while maintaining investor confidence and the rule of law.
The committee also identified certain contract clauses that warrant review, particularly those causing contracts to continue without opportunity for renegotiation despite significant changes in costs, technology, and energy market conditions. This includes proposals to adjust solar and wind power purchase price components to better reflect actual costs.
Ms. Ratchada said the next step is for the committee to submit its findings to the National Energy Policy Council (NEPC) to establish policy guidance, before assigning the Electricity Generating Authority of Thailand (EGAT), Metropolitan Electricity Authority (MEA), and Provincial Electricity Authority (PEA) to engage in discussions with contract parties to find mutually acceptable solutions.
She emphasized that the government’s approach to resolving electricity cost issues is not focused on short-term measures or harming the investment climate, but on restructuring costs to reflect current realities, ensuring fair electricity prices for the public. At the same time, Thailand remains a country that respects laws, contracts, and fosters investor confidence domestically and abroad.
“The government believes that reducing electricity costs and maintaining investor confidence can go hand in hand if all parties collaborate to find fair, transparent solutions prioritizing the public interest. Addressing electricity issues requires tackling cost structures for sustainable results rather than temporary fixes. This contract revision is not a retroactive rule change but a negotiation based on law and mutual consent to align contracts with changing costs and economic conditions,” she said. . Ms. Ratchada added.