The Energy Regulatory Commission (ERC) is planning to apply a more appropriate rate for electric vehicles as businesses are joining hands to present the new economic ministers plans to better promote EVs.
Secretary-general Khomgrich Tantravanich said the ERC expects the number of EVs will rise at a higher rate than in previous years as manufacturing costs decline and EV performance becomes more efficient.
He said charging outlet operators want the government to set new, higher electricity rates to make their business more viable as only a small number of EV motorists use the service.
In March, policymakers approved a rate of 2.63 baht per kilowatt-hour in line with a time-of-use power rate calculation. The rate, which is equal to that used during off-peak hours, is applied all day.
This rate will expire in two years, so energy officials need to revise a power tariff for a new rate this year, said Khomgrich.
SET-listed Energy Absolute Plc (EA) said Thailand should have a reasonable power rate because the country faces a huge surplus of power generation capacity reserved, currently more than 40%. It could take many years for electricity demand to catch up with oversupply.
“During the transition towards the EV age, Thailand should use this surplus of power to help develop an EV ecosystem,” said EA deputy chief executive Amorn Sapthaweekul.
Several countries are keen to promote the EV market. They are stimulating new demand by using direct and indirect subsidies, including tax incentives and discounted retail prices of EV. Retail prices, a sufficient charging infrastructure, battery life and power rates are the main factors to build an EV ecosystem.
EA and the Federation of Thai Industries are compiling EV promotion measures used in many countries to come up with a Thai version. They will forward it to new economic ministers for consideration, Amorn said.