Thailand approves progressive power tariff aimed at cutting household bills
Bangkok Thai households consuming modest amounts of electricity are set for significant relief under a new progressive tariff structure announced by Energy Minister Akanat Promphan, which hopes to lower power bills by…
Thailand on Tuesday unveiled a progressive electricity tariff that could cut bills by up to 20% for low-usage households, with the policy set to reach homes across Phuket and the rest of the country if approved by Cabinet. Energy Minister Akanat Promphan said the new structure would charge no more than 3 baht per unit for the first 200 units of monthly residential consumption and is expected to begin with the June 2026 billing cycle.
New rates target lighter household electricity use
The next band would charge 3.95 baht per unit for consumption from 200 to 400 units, while usage above 400 units would cost around 5 baht per unit, officials said.
Akanat said the system works like a progressive tax scale, meaning the higher rate applies only to the excess usage rather than the entire bill. He also said there is no flat 5-baht charge for heavy users.
The changes apply only to residential customers. Large businesses, industrial users, farmers and consumers on time-of-use tariffs are excluded.
Savings estimates and wider energy reforms
Officials said Thailand has about 22 million to 23 million households, with roughly 14 million to 20 million expected to save under the revised structure. Homes using 200 units or less a month could see a full 20% reduction from the current average rate of about 3.88 baht per unit, while higher-usage households would still benefit from the lower-priced first tiers and average savings of about 10%.
The government is also pursuing broader energy reforms that it says could cut overall system costs by 30% to 40%. Those measures include faster approvals and financing support for rooftop solar, along with plans to reduce reliance on imported gas after volatile LNG prices pushed up the fuel tariff component of electricity bills.
Authorities are also considering a solar buyback rate of around 2.2 baht per unit for surplus electricity fed back into the grid.
Source: https://thephuketexpress.com/2026/04/28/thailand-introduces-progressive-electricity-tariff-to-slash-bills-for-low-usage-households-by-up-to-20/
