Thailand moves to renegotiate long-term power contracts to lower electricity prices

The Thai government is accelerating efforts to address high electricity costs by renegotiating long‑term power purchase agreements with private generators, often called “eternal contracts.” After receiving a green light from the National Energy Policy Committee, Deputy Prime Minister Pakorn Nilprathan said the aim is to adjust purchase prices so they reflect actual production costs and inflation, ensuring rates are fair for consumers and businesses.

The review also covers availability payments and broader supply issues, with the government planning to align the Power Development Plan (PDP) with realistic data, consider small modular reactors, and promote regional energy trading through the ASEAN Smart Grid. The goal is to secure sufficient, affordable electricity for all regions, including remote areas, while maintaining investor confidence.