BGRIM Affirms Cabinet’s Electricity Tariff Reduction to Have Nearly No-Effect on Revenue
BGRIM Affirms the Cabinet's Electricity Tariff Reduction by 3% to Have Nearly No-Effect on Revenue.
BGRIM Affirms the Cabinet's Electricity Tariff Reduction by 3% to Have Nearly No-Effect on Revenue.
12 มี.ค. 2563

B.Grimm Power Public Company Limited (BGRIM) has made an announcement regarding the impact from the Cabinet’s emergency measures on reducing electricity tariff by 3%.
 
According to the resolution from the Cabinet’s meeting on March 10, 2020 regarding the emergency measures on national support, drought issue and economic stimulus package, the measure on electricity tariff by maintaining the Fuel Transfer (FT) constant at the rate of -11.60 satang per unit and reducing electricity tariff by 3% for all sectors for 3 months (April – June 2020). 
 
BGRIM has stated that the company is pleased to be a part of the support to the industrial sectors by reducing the electricity tariff at the similar rate with the government’s tariff for the same period of 3 months. 
The company estimates that the remedies to reduce electricity tariff by 3% for 3 months could impact only 0.17% of annual revenue, based on total revenue of Baht 44,132 million in 2019, as this is a short term measure which does not impact the majority or 77% of the company’s revenues namely revenue from the Electricity Generating Authority of Thailand (EGAT), revenue from renewable projects and revenue from overseas. The only portion which could be impacted from this short-term measure is the electricity sales to industrial users which contributed 23% of total revenue. 
The company has been expanding business continually, adding new industrial clients to portfolio with total of 31 megawatts scheduled for synchronization during January-September 2020, base on power purchasing agreements (PPA). 
In addition, as natural gas is the company’s major cost of business contributing above 70% of total cost, the company has an opportunity to benefit from the current downward trend of gas price. The average gas price in January-February 2020 declined by 9% from the same period of last year which could imply the potential 15% earnings addition, comparing to the company’s net profit to owner of Baht 2,331 million in 2019.