Power prices will not increase despite high oil prices

BANGKOK, 7 August 2009 (NNT) – The Electricity Generating Authority of Thailand (EGAT) has admitted that rising global oil prices have increased the production costs of energy in Thailand, but assured that it will not adjust electricity prices for the time being.

EGAT Governor Sombat Santijaree said the authority previously predicted global oil prices would end their climb at 55 USD a barrel but now reached the 60 USD mark with the highest price of 71 USD a barrel. The high prices and their volatility have begun to weigh on the EGAT.

Mr Sombut said the EGAT will continue to monitor the shifting costs of oil, assuring that electricity prices will not yet be raised in consideration to the public. The EGAT has prepared to request assistance from the Government in offsetting costs if oil prices remained high in the future. The authority is currently shouldering a burden of 20 billion baht but expects to make up the losses in full by the end of the 2010.