Thailand’s Energy Ministry is proposing a reduction in government-funded electricity for public lighting to ease the financial strain on the national budget and lower electricity tariffs. However, the plan requires further discussions among state agencies, according to the Provincial Electricity Authority (PEA).
Currently, local administrative bodies, along with highway and rural road departments, are not charged for electricity used in public lighting, as the government covers the cost. This subsidy amounts to several billion baht annually, placing a significant financial burden on the state. Reducing this expenditure could help curb losses in power generation, distribution, and transmission, ultimately contributing to lower electricity tariffs, said Energy Permanent Secretary Prasert Sinsukprasert.
Thailand’s electricity tariff, which determines consumer power bills, currently stands at 4.15 baht per kilowatt-hour. Pradit Fuangfoo, deputy governor for strategy at the PEA, noted that any changes to financial support for public lighting must be coordinated with relevant policy-level agencies.
To improve energy efficiency, local officials and infrastructure authorities are working on replacing traditional incandescent bulbs with light-emitting diodes (LEDs), which consume 80% less energy. However, despite these efforts, urban expansion continues to drive up electricity demand, limiting the overall savings from LED adoption.
An alternative proposal to install LED lights powered by solar panels and batteries has also been discussed. While this approach could reduce reliance on the state power grid, it presents challenges due to the high cost and frequent battery replacements required.
The PEA has been cutting expenses as part of its Triple Transformation Capability Centre policy, which integrates business, technology, and human resource improvements to enhance efficiency. Last year, the authority reduced operational costs by 700 million baht and aims to achieve a 750-million-baht reduction this year.
Further discussions on the proposed changes will involve officials from key agencies responsible for public lighting and infrastructure.
