Cabinet lets Egat borrow THB85 billion to boost liquidity
The Cabinet on Tuesday gave the green light to the Electricity Generating Authority of Thailand (Egat) to boost its liquidity by borrowing 85 billion baht, as Egat has had to shoulder the burden of power tariff subsidies for maintaining the current power rates.
Deputy Prime Minister and Energy Minister Supattanapong Punmeechaow said the Cabinet meeting, chaired by acting Prime Minister Prawit Wongsuwan, agreed to let Egat take the loan with the Finance Ministry being its guarantor.
Supattanapong said Egat needed the loan to boost its liquidity after the Cabinet asked it to repeatedly postpone hiking its FT or float time rate. The FT covers floating costs beyond the control of Egat, including rising oil prices, rising inflation and exchange rates. It is used to calculate monthly power bills.
He added that the Cabinet would next week consider measures proposed by Energy Policy Administration Committee for providing subsidies to low-income people.
Next week, the Cabinet would also be asked to consider a proposal of the committee to continue to subsidise the cost of rising FT rates for two vulnerable groups. If approved, the subsidy would be enforced in time for the September power bill, the minister added.
He said the ministry would also promote installation of solar rooftops for households and industries, which would allow people and businesses to save on power bills.
Supattanapong said his ministry, Egat, the Provincial Electricity Authority, and the Metropolitan Electricity Authority would cooperate to speed up approval of licences for solar rooftops.
