High debt levels preventing Egat from lowering electricity bills

This huge debt has been accumulated as a result of the high price of liquefied natural gas (LNG) imported to fuel power stations, electricity, the cost of which has continued to rise due to the impacts of the ongoing Russo-Ukraine war, Egat governor Boonyanit Wongrukmit said on Thursday.

“Egat’s outstanding debt stood at 110 billion baht at the end of fiscal 2022,” he said. “This debt is from short-term loans that must be paid in 7 installments. The deadline for repayment of the last installment is April 2025.”

Boonyanit went on to say that any default on short-term loans would result in a jump in interest, which will be added to Egat’s production outlays and thus increase the cost of electricity generation.

“In the long term it could also affect our loan credit and therefore hinder Egat’s investment in expanding distribution channels and improving the production…