Thai Small Power Producer Stocks Gain as Regulator Raises Electricity Tariffs

The Energy Regulatory Commission (ERC) announced that the Feed-in tariff (Ft) for January – April 2024 will be at THB 4.68 per unit, which the market expected to benefit power generator stocks in Thailand.

The said Feed-in Tariff is adjusted from the current level (September – December 2023) of THB 3.78, representing an increase by THB 0.89955 per unit (excluding vat). This is the lowest adjustment according to the proposal of the ERC. 

The said adjustment has had a positive impact for the Small Power Producer (SPP) stocks such as GPSC (+3.80%) and BGRIM (+5.94%) but also had a negative impact for the electric users such as CPALL (-5.48%), CPAXT (-6.42%) as well as the others. However, there is a possibility that the government sector will intervene in the said adjustment before the effective date on 1 January 2024.