Innovation of the Planning for the Factors Relating to the Cost of Electricity Capacity on Surin Province, Thailand: A Sectoral Approach

Abstract

This study aims to analyse the cost of electricity capacity in five districts of Surin Province under the control of PEA Surin Province, based on seven electricity user sectors, to create guidelines for the long-term administration planning of electricity capacity in 2026. Seven electricity user sectors are explored: residential, small size business, medium size business, industrial, specific business, agricultural, and other sectors, based on total forecasted electricity consumption, including loss for each of the seven electricity user sectors and the income statement of the PEA Surin Province for the year ending 31 December 2021. The average electricity sales price per kWh for the seven electricity user sectors is obtained using the joint cost allocation, calculated according to the relative sales value and cost behaviour analysis concept, using the average variable cost, breakeven point (BEP) analysis, comparison between total forecasted electricity consumption and electricity capacity, and sensitivity analysis, respectively. The results of this study indicate that the PEA Surin Province should formulate three suitable guidelines for the administration planning of electricity capacity. Firstly, the amount of fixed costs (FCs) in each type should reflect the change in total fixed cost (TFC) in all seven electricity user sectors. Similarly, the administration planning of electricity capacity for the AVC should involve an increase in variable costs (VCs) in each type for all seven electricity user sectors. According to the guidelines for the administration planning of electricity capacity in terms of average electricity sales price (P), the rate charged for all seven electricity user sectors should decrease. The implementation of these three guidelines for the administration planning of electricity capacity will result in the PEA Surin Province having sufficient and enough electricity capacity, including management and administration in organisation of PEA Surin Province to suitable point support the increase in total electricity consumption of each of seven electricity user sectors in 2026 for the five districts of Surin Province.