BANGKOK – Thailand could see a sharp increase in electricity bills for the May to August 2026 billing cycle. The Energy Regulatory Commission (ERC) has put forward three tariff options, from 3.95 to 4.59 baht per kilowatt-hour (kWh). Right now, the rate is about 3.88 baht per unit until the end of April.
The main reason is the jump in liquefied natural gas, or LNG, prices. Tension in the Middle East, along with risks to shipping routes such as the Strait of Hormuz, has pushed spot LNG prices to about $25 per million British thermal units. That is close to twice the recent average.
Thailand depends heavily on natural gas and LNG to produce electricity. Gas makes up about 60% or more of the country’s power mix, so global fuel price swings hit hard. Domestic gas from the Gulf of Thailand and imports from Myanmar still help, but LNG imports now cover more of the shortfall as local reserves shrink.
As LNG prices rise, power producers pay more for fuel. Those higher costs usually reach consumers through the fuel tariff, or Ft, which the ERC reviews every four months.
Under the highest option, the rate would reach 4.59 baht per kWh, which is about 18% above the current level. Even the lowest option, 3.95 baht, would still bring a modest increase. At the same time, officials say exchange rate swings are adding more pressure.
Three tariff options under review for May to August 2026
- 3.95 baht/kWh: This option uses clawback funds, or surplus money from electricity agencies, to soften the increase. It would lift the rate by about 2%.
- 4.08 baht/kWh: This reflects only current costs, while EGAT would continue carrying some past debt. That would mean roughly a 5% increase.
- 4.59 baht/kWh: This follows the full pricing formula and includes repayment of about 36 billion baht in past fuel costs owed by EGAT. That would push bills up by as much as 18%.
The ERC opened public comments on these options from March 25 to 31, 2026. A final decision is expected around April 1. The caretaker energy minister has said the government wants to keep prices steady if possible, but outside forces have limited that room.
How LNG price swings affect Thai homes and businesses
Thailand imports a growing share of its gas as LNG. Because of that, supply problems in the Middle East quickly affect prices at home. Spot purchases become much more expensive when supply tightens.
That leads to higher bills across the board. Families may try to use less air conditioning during the hottest months. Small businesses, manufacturers, and tourism operators may see their costs rise while profit margins shrink. Energy-heavy sectors, such as electronics and food processing, usually feel the pressure first.
The country also has little room to absorb another surge. Similar spikes in 2022 led to subsidies and rising debt at the Electricity Generating Authority of Thailand, or EGAT. Now, those same concerns are returning.
Analysts say the longer-term answer is a broader energy mix, including more LNG sources, such as the United States, and stronger support for other power sources. For now, though, the focus stays on handling the immediate rise in costs.
Thailand turns back to coal as Mae Moh increases output
To reduce pressure from expensive LNG, Thailand is increasing output from coal-fired power plants. The ERC has ordered two retired units at the Mae Moh power plant in Lampang province to return to service. Together, those units add 600 megawatts to the plant’s current operating level of about 700 megawatts.
Key facts about the Mae Moh coal plant
- It sits in Mae Moh district, Lampang, and is Thailand’s largest lignite-fired power station.
- The plant uses local lignite from the nearby Mae Moh mine, which cuts reliance on imported fuel.
- Its total possible capacity is more than 2,400 MW across several units, although some are still scheduled for phase-out.
- Restarting units helps offset high LNG costs and may keep electricity tariffs closer to today’s level.
Mae Moh remains a major source of power for northern Thailand. Because it runs on domestic fuel, it can produce steady electricity at a lower cost than imported LNG during price spikes. Officials see it as a short-term bridge while the country boosts hydropower imports from Laos and takes other steps.
Coal offers more stable pricing in the short run because it depends on local supply. Still, the plant has long faced criticism over pollution and health effects on nearby communities. Thailand’s long-term Power Development Plan still calls for a smaller coal share and more renewable energy by 2037. For now, coal is helping reduce the impact of global gas price swings.
Other measures include trimming purchases from gas-fired plants and raising electricity imports, mostly hydropower from Laos, to 18% of supply.
What this could mean for Thai households
Many families in Bangkok, Chiang Rai, and other parts of the country are already worried about summer electricity bills. Air conditioners often run all day from May onward, and that pushes usage higher right when tariffs may also rise.
Business groups have asked for more targeted support. That could include subsidies for low-income households or smaller firms. The government still has tools to limit the pain, including reserve funds and changes to how EGAT’s costs are recovered.
Still, some analysts warn that relying on short-term relief again and again only adds debt and slows the move toward cleaner, more stable power.
Thailand still depends heavily on fossil fuels. Natural gas remains the top source, followed by coal. Renewable energy, including solar and imported hydropower, is growing but still has a smaller role.
The country keeps buying power from its neighbors and is also looking for more LNG supply contracts. Yet events overseas, especially conflict in the Middle East, continue to show the risk of depending too much on imported fuel.
Over the longer term, Thailand plans for renewables to supply 51% of electricity by 2037. Gas would fall to about 41%, and coal to 7%. Small modular nuclear technology is also under discussion. Reaching those targets will take money, grid upgrades, energy storage, and public support.
In the short term, the restart at Mae Moh shows a practical response. Officials are using available local resources to ease the burden on consumers while global prices stay high.
Simple ways to manage higher electricity bills
- Check power use at home. Small steps, such as setting air conditioners to 25 to 26°C or using fans, can reduce costs.
- Look for energy-saving rebates or support programs from the Provincial Electricity Authority (PEA) or Metropolitan Electricity Authority (MEA).
- Follow ERC updates closely to see the final tariff for May to August.
- Businesses can review supply contracts and consider energy audits to find savings.
The ERC has asked for public feedback during the consultation period. Input from households and businesses could still shape how the costs are shared.
Thailand is once again facing a tough balance, keeping power affordable now while moving toward a cleaner energy system later. With LNG prices tied to conflict far from home, coal from northern plants like Mae Moh is offering short-term relief. At the same time, the push to diversify the energy mix is still moving forward.
As summer gets closer, many people across Thailand will be watching the final tariff decision very closely.
