Ft

Abstract

In the past, the Metropolitan Electricity Authority charged the electricity fee based on electricity generating costs and profits. A major problem was that every rise in electricity fees required a Cabinet resolution, thereby leading to excessive announcements.In the 1970s and 1980s, however, the world oil price rose sharply, resulting in many Cabinet announcements to raise the price of electricity. Associate Professor Dr. Vichit Lorjirachunkul and Associate Professor Dr. Thiraphong Vikitset, two NIDA faculty members, thus proposed a formula to automatically calculate the Ft. Such uniform tariff structure used a method of calculation which varies with the real costs. The tariff allowed the electricity fees to be adjusted according to fluctuations in energy prices. Specifically, the Electricity Regulatory Sub-committee could independently consider and design the tariff structure without the Cabinet’s approval. This newly adopted procedure allowed the electricity charge to cope with such fluctuations in a more efficient and timely manner.