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NEPC Approves Separating Public Lighting Fees from Household Bills, Cuts Electricity Cost for First 200 Units to 3 Baht for 23 Million Households

Politic15 Jul 2026 18:08 GMT+7

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NEPC Approves Separating Public Lighting Fees from Household Bills, Cuts Electricity Cost for First 200 Units to 3 Baht for 23 Million Households

"Aeknat" proposes a major energy restructuring as the National Energy Policy Committee (NEPC) approves separating public lighting charges from household electricity bills, reducing electricity costs for the first 200 units to 3 baht, opening the clean energy market, and regulating Data Centers to prevent Thai consumers from bearing the costs of these expenses.


On 15 Jul 2026 GMT+7, Energy Minister Aeknat Promphan revealed after the NEPC meeting that the committee approved seven key electricity measures, marking a major energy restructuring to reduce living costs for the public and enhance the country's competitiveness. The meeting was likened to a critical structural surgery involving separating Data Center classifications, separating public lighting from existing electricity users, and lowering electricity rates for all residential households. The aim is to ensure high electricity consumers fairly bear their own costs without shifting burdens onto general users.


One key resolution is to separate public lighting electricity charges, such as street lighting valued at approximately 18 billion baht annually, from the base electricity rates of residential users. New rates will be set specifically for this category. The Energy Regulatory Commission (ERC) is tasked with revising laws and the Electricity Development Fund regulations to collect funds from new sources, including Data Center electricity users, users with direct power purchase agreements (Direct PPA), savings from reduced Adder rates, and community solar projects. These funds will be used to subsidize public lighting costs and reduce household electricity burdens.

Secondly, the NEPC resolved to immediately reduce electricity rates for residential users by adjusting the progressive tariff so that the first 1-200 units cost no more than 3 baht per unit. Units 201-400 and above will retain current rates but will benefit from deductions as public lighting costs are removed, so users at all levels gain advantages. This measure also extends to rental housing businesses such as rental houses, dormitories, apartments, and temporary unregistered homes, covering over 23 million households. The change takes effect from the August billing cycle.

"I want to emphasize that the electricity usage for the first 200 units charged at no more than 3 baht will not result in increased rates for households already consuming 400 or 500 units or more. This is solely a reduction for the first 200 units across all households."


Purchase of excess electricity at 2.20 baht per unit.

Additionally, the government promotes rooftop solar installation by citizens, offering to buy back excess electricity at 2.20 baht per unit to immediately offset electricity bills. The previous purchase quota, limited to 90 megawatts per cycle, has now been increased to 500 megawatts.

Thirdly, approval was given to unlock renewable energy electricity trading via direct power purchase agreements (Direct PPA) through third-party access (TPA) to the grid. This right will now cover all industries without megawatt limits, expanding from the previous quota of 2,000 megawatts restricted to Data Centers only, advancing toward a free market and meeting international trade standards.

"This new policy opens access for all industries seeking clean electricity, moving toward a free, competitive market for direct clean energy purchases where the lowest-cost producer wins. The electricity authorities will manage only the grid system. This policy will accelerate energy transition and reduce dependence on costly imported gas."


Fourth, a specific electricity rate for Data Centers will be set to reflect the true costs of electricity procurement and grid expansion investments, especially the high cost of imported liquefied natural gas (LNG), which may reach 5-6 baht per unit, or 8 baht per unit in Singapore. This aims to avoid cost shifting to other electricity users. Concurrently, the government will offer surplus reserve power capacity, which it currently bears through availability payments (AP), to Data Centers at reasonable prices, using the revenue to subsidize and reduce household electricity bills.

Fifth, large Data Centers must provide guarantees (bonds) confirming their readiness before government investment in grid expansion. They must also develop water management plans due to high water usage for cooling systems, preventing monopolization and competition for water resources with agriculture and the public.


Sixth, the Adder issue addressing overpriced power purchase contracts was resolved per the recommendation of the committee chaired by Pakorn Nilprapan. The three electricity authorities (EGAT, MEA, and PEA) are instructed to urgently negotiate with Small Power Producer (SPP) and Very Small Power Producer (VSPP) operators with Non-Firm contracts that auto-renew, to set clear contract end dates and reduce previously high purchase prices to fair levels based on actual costs—for example, solar energy at 2.1579 baht per unit, following the government's fixed Feed-in Tariff (FiT).

"Previous prices were high, reaching up to 10 baht during the Adder period. Afterward, contracts were locked into expensive rates plus fuel adjustment charges despite no fuel costs. All must be reduced to the current rate of 2.16 baht. The annual savings from this cost reduction, amounting to tens of billions of baht, will be used to compensate and lower electricity bills for the public."


Seventh, the government will proceed with a 1,500-megawatt community solar farm project consisting of ground-mounted solar power plants not exceeding 10 megawatts each, under 25-year Non-Firm contracts with a FiT of 2.1679 baht per unit. The project follows the principle of one project per sub-district to distribute benefits and avoid concentration. The selection criteria will shift from a "first-come, first-served" basis to competitive scoring based on quality, limiting each developer to no more than 30 megawatts to prevent monopolies. This project aims to enhance end-user electricity efficiency and reduce distribution costs, with price differentials forwarded to sustainably lower electricity bills for the public.