Electric shock! Prices expected to rise after fuel price hikes

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Electric shock! Prices expected to rise after fuel price hikes

 

Picture: Sanook

 

The electrical generating authority have warned that prices for electricity in Thailand are likely to rise.

 

The price hikes are a direct result of the sudden increase in crude oil prices as that commodity is used in the generation of electricity.

 

But Saharat Bunphotiphakdee had some good news; prices would not rise for another six months.

 

And any increases would have to be ratified by the Energy Regulatory Commission.

 

But with crude prices rising steadily - and this last week sharply - from around 60 dollars a barrel to nearly 80 - price rises seem inevitable towards the end of the year.

 

Source: Sanook

 

-- © Copyright Thai Visa News 2018-05-23

[CGW]

"But with crude prices rising steadily - and this last week sharply - from around 60 dollars a barrel to nearly 80 - price rises seem inevitable towards the end of the year."

 

Nothing like exaggerating - just a bit! Honest and precise reporting as to be expected!

 

[ZeVonderBearz]

Luckily, the Thai economy is strong so all Thais will get a nice pay rise so they can deal with the price hikes. There will be no need for anyone having to pick between food or keeping the lights on. Trickle down effect and all that. 

[KhunBENQ]

7 minutes ago, ZeVonderBearz said:

Luckily, the Thai economy is strong so all Thais will get a nice pay rise so they can deal with the price hikes.

Emoticons not working?

[tracker1]

Most know when oil/fuel/gas prices rise the flow on effects everything the big winner is the Government with the extra VAT generated ! the losers the ordinary people as usual

[wirat69]

After suffering two substantial (in length of time) outages of supply in the past two days, I am more interested in security of supply than the generating costs.....

[KiwiKiwi]

No chance that price rises will result in more stable supply? The supply where I live is just dismal, with all that implies for the lifespan of electronic equipment.

Edited May 23, 2018 by KiwiKiwi

[AhFarangJa]

Isn't it strange that a few years ago when oil prices plummeted from a hundred plus dollars a barrel that the price of electricity etc. did not come down.....?

[Sydebolle]

Well, in a country with 250 - 300 sunshine days it is obvious, that solar power is NOT an option. 

If they are serious about it then do away with the ridiculous import duties on solar panels while try to convince manufacturers to set-up a license operation in Thailand. But yeah, it takes more sunshine days - assume that according to the Ministry of Sunshine it is worthwile to study the situation once Thailand has 500+ sunshine days; per year that is. Pathetic subject! 

[new2here]

17 hours ago, tracker1 said:

Most know when oil/fuel/gas prices rise the flow on effects everything the big winner is the Government with the extra VAT generated ! the losers the ordinary people as usual

I think it’s true that as the pre-VAT proce rises, there will be a proportional rise in the assessed and collected VAT.... but.... if the government also uses the State Oil Fund as an (artificial) consumer-level price stabilizer, then I suspect any increase in net VAT collection will either be drastically offset by Oil Fund expenditures or even turn nett negative if Fund expenditures outpace increased VAT collections.

 

So, in the surface if it, I’m not so sure that from a VAT collection perspective that the government really wants higher crude prices going forward.

 

 

 

[Srikcir]

1 hour ago, AhFarangJa said:

Isn't it strange that a few years ago when oil prices plummeted from a hundred plus dollars a barrel that the price of electricity etc. did not come down.....?

Thailand's DPD2015 shows that Thailand's use of fuel oil and diesel for electrical generation is only about 0.7% of grand total electrical generation. For 2018 it projected 0.01%. So there is likely no direct connection between crude oil prices and Thailand's electrical prices.

 

However, Thailand does use significant natural gas, coal and lignite fuels for electrical generation.

Even though coal and crude oil don’t directly compete with each other, coal producers are impacted in various ways by the fluctuations in crude oil prices, which can be considered a mixed driver for the coal industry. In turn any fluctuations in natural gas inventory or prices have a huge impact on coal.

https://marketrealist.com/2017/10/how-crude-oil-indirectly-impacts-coal-prices

The process for delivering coal, lignite and natural gas to point of electrical generation might depend on factors such as oil-based transportation (ie., trains and ships). So there might be some impact eventually with rising crude oil prices given the sheltering effect from fuel futures contracts. But depending on how well the electrical generation agency hedges its fuel prices, significant price increase for electricity should be minimal. 

 

Of course none of any science or economics behind rise in electrical prices is relevant where an electrical agency is incompetent or manipulative. The latter could be simply to use oil price increases as an excuse to increase profits at the direct expense of the consumers.

[wabothai]

We can never escape the claws of vultures.

[oldlakey]

On 5/23/2018 at 5:00 PM, ZeVonderBearz said:

Luckily, the Thai economy is strong so all Thais will get a nice pay rise so they can deal with the price hikes. There will be no need for anyone having to pick between food or keeping the lights on. Trickle down effect and all that. 

Whatever it is that trickles down you can be sure the cat wont bother with it

[oldlakey]

47 minutes ago, wabothai said:

We can never escape the claws of vultures.

It is written, fits nicely into the local culture