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Published on February 26, 2008

The Energy Business Supervision Committee said the company had moved to raise it transmission fees Bt2.05 per million British thermal units (BTUs), which would raise the fuel tariff for generating electricity 1.2 satang per unit.

The regulatory committee is currently conducting a public hearing on the proposed fee hike, which will be retroactive, taking effect from January 1, 2008, said committee chairman Direk Lawansiri.

"Every Bt1 increase in the fee pushes the fuel tariff up 0.6 satang per unit," he said. "PTT has proposed a Bt2.0585 hike, and this would translate into a 1.2-satang-per-unit increase in the fuel tariff," Direk said.

The fuel tariff is revised every four months, taking into account the actual cost of fuel in generating electricity. The tariff for the February-May period is 68.86 satang per unit.

PTT has proposed a Bt1.1017 increase for delivery through a pipeline off the coast from Rayong, from Bt7.9365 per million BTUs to Bt9.0382. It also proposes to raise its fee for delivery through onshore pipelines by 95.68 satang, from Bt11.4664 to Bt12.4232 per million BTUs.

The natural-gas transmission fee is adjustable ahead of investment in a new gas pipeline. The proposed hike won the approval of the Energy Ministry and the National Energy Policy Board during the previous government, because PTT will invest in a third pipeline. However, the increase must win the regulator's approval.

Direk said if any party questioned the proposed increase, the questions would be forwarded to relevant agencies for explanation. At the same time, the regulator would look into the fee-setting formula to see if anything needed to be changed.

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