Thailand’s higher electricity prices pushing its competitiveness lower than its regional peers due to govt.’s mismanagement

[webfact]

 

By Erich Parpart

The Prayut Chan-o-cha government’s mismanagement is leading to higher electricity prices which will lead to higher product prices and reduce the country’s export competitiveness, a representative of the private sector said.

 

“These burdens that are being pushed on to the private sector and consumers, and it is coming from the government’s planning which now requires reconsideration,” said Isare Rattanadilok Na Phuket, the deputy chairman of the Federation of Thai Industries (FTI).

 

The Energy Regulatory Commission (ERC) decided last that the electricity price for households should remain at a record high of 4.72 Baht per kilowatt-hour or unit, compared to 3.78 Baht per unit at the start of the year.

 

Full story: https://www.thaienquirer.com/46854/thailands-higher-electricity-prices-pushing-its-competitiveness-lower-than-its-regional-peers-due-to-govt-s-mismanagement/

 

 

-- © Copyright Thai Enquirer 2022-12-19

 

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[ThailandRyan]

All one can say is ouch and the power companies get richer. I am paying 5 baht per unit now and 2 years ago paid 3.5 baht a unit.  Prices increase for many reasons, but with Increases in power costs food prices increases, and I flatiron increases. Thailand says they have inflation under control.  I just went through my excel spreadsheet from 2 years ago and compared them to now for all purchases, and we buy the same things month in and month out.  Our overall costs have increased 62% year on year. Not quite double but definitely a hit. For those on a fixed income this definitely must be hurting them.  Energy prices being capped for a few months at whatever ones use was in previous months may have helped but gross mismanagement of the cou try and economy is being felt, no matter how they try and spin it,and No it is not because of the conflict in Ukraine.

Edited December 19, 2022 by ThailandRyan

[MJCM]

Ooh know I understand what they are going to do.

 

Before we got an Ft discount for 3 Periods (Sept-Dec) (see spreadsheet)

 

 

From Jan - April the Ft Discount is GONE and every one has to pay the Ft Charge of 0,9343 THB per unit thus increasing the price per unit (kWh) effectively with almost 1 THB (0,9343)

 

Edit: Ft = Fuel Surcharge

Edited December 19, 2022 by MJCM
Added with Ft means

[ezzra]

27 minutes ago, webfact said:

government’s planning

No such term in the Thai language... Mucking it up and playing it by ear terms is widely used among the decision makers...

[engamann]

I can't think about one thing this junta government have done good for Thailand over the last 8 years.

[zyphodb]

IMO the one thing that they've done good with is legalising weed.

 Probably their last, desperate attempt to get re-elected, an appeal to the masses lol

[Cake Monster]

Thailands Electricity tariff has already risen by 25% this Year, and with a proposed massive hike to  come in 2023 ( delayed from the original hike, which was to take place Dec 2022 to April 2023 ) of around another ???? maybe 25 -40 % .

The Inflation rate in the Country has been published at about 6.5 %, which is total rubbish, as prices for many staples have risen by over 25 %, and many rising by as much as 60 %.

This makes the Inflation rate among the lowest in the World.

Most, if not all Counties around the Globe have already factored in their Massive Energy hikes, and have this already within their published Inflation rates

Thailand has not, and this will hit Exports and Tourism and all other Manufacturing very hard, when reality sets in.

[RichardColeman]

The bahts killing exports and sales, not the flaming electric !

[Muhendis]

The governments planning is spot on.

Don't forget they have a 51% (I think) stake in the electricity companies so in effect they are giving themselves a nice juicy pay rise.

I think such rises in the cost of electricity are bad for the people of Thailand for all the reasons others have mentioned.

[MrJ2U]

I'm surprised there hasn't been more complaints from the public.  

 

High energy and/or food prices are the number one reason governments are toppled. 

 

My bills are certainly higher and I am <deleted> off. 

 

 

[jacko45k]

15 hours ago, zyphodb said:

IMO the one thing that they've done good with is legalising weed.

 Probably their last, desperate attempt to get re-elected, an appeal to the masses lol

Not sure about that... been a bit of a can of worms and back pedaling has been rife. Still, it is being advertised for sale and home delivery on the radio now, so that genie isn't going back in the bottle! Grab delivering it yet?

[hotchilli]

22 hours ago, webfact said:

The Prayut Chan-o-cha government’s mismanagement is leading to higher electricity prices which will lead to higher product prices and reduce the country’s export competitiveness, a representative of the private sector said.

The only power Prayut & o understand is their own..

Barrack room boys playing politics never ends well.

[hotchilli]

20 hours ago, engamann said:

I can't think about one thing this junta government have done good for Thailand over the last 8 years.

Protect and enrich the elite families..

[Boomer6969]

22 hours ago, MJCM said:

Ooh know I understand what they are going to do.

 

Before we got an Ft discount for 3 Periods (Sept-Dec) (see spreadsheet)

 

 

From Jan - April the Ft Discount is GONE and every one has to pay the Ft Charge of 0,9343 THB per unit thus increasing the price per unit (kWh) effectively with almost 1 THB (0,9343)

 

Edit: Ft = Fuel Surcharge

Good. I hate distorted pricing. Everyone must know the true cost of what they use. I some are in need the government can intervene with handouts, for Thai nationals only.

 

Please don't shout at me as I firmly believe that National Parks should have a single price for everyone.

Edited December 19, 2022 by Boomer6969

[mania]

20 hours ago, engamann said:

I can't think about one thing this junta government have done good for Thailand over the last 8 years.

They did write a song!

 

Like to hear it? Here it goes ????

[zyphodb]

1 hour ago, jacko45k said:

Not sure about that... been a bit of a can of worms and back pedaling has been rife. Still, it is being advertised for sale and home delivery on the radio now, so that genie isn't going back in the bottle! Grab delivering it yet?

Dunno about Grab but I expect so, Kerry and Flash do...

[ThailandRyan]

3 hours ago, mania said:

They did write a song!

 

Like to hear it? Here it goes ????

Here are the lyrics as sung by Prayut as he returns happiness to his money in the bank and sings to his bank book:

 

"Don't Worry, Be Happy"
 

Here's a little song I wrote
You might want to sing it note for note
Don't worry, be happy
In every life we have some trouble
When you worry you make it double
Don't worry, be happy
Don't worry, be happy now

[dpcjsr]

Another of thousands of examples of central planning failure. No learning going on here. 

[paulbrow]

Electric prices have been driven up simply due to the price of imported LNG skyrocketing to the point that it's cheaper to burn oil than gas. Can't say I can see how the Thai government is responsible for no natural gas reserves remaining in Thailand and 100% foreign produced LNG prices rising. Just saying....

[jacko45k]

50 minutes ago, paulbrow said:

Electric prices have been driven up simply due to the price of imported LNG skyrocketing to the point that it's cheaper to burn oil than gas. Can't say I can see how the Thai government is responsible for no natural gas reserves remaining in Thailand and 100% foreign produced LNG prices rising. Just saying....

I thought it was more to do with a dispute they had with their partner and the ensuing lack of investment into future fields and resources. 

[JimGant]

On 12/19/2022 at 10:12 AM, engamann said:

I can't think about one thing this junta government have done good for Thailand over the last 8 years.

Quote

The government responded boldly to mitigate the crisis. Timely and stringent containment measures introduced by the authorities successfully flattened the infection curve during most of 2020. Effective containment, along with a timely and multipronged policy package—comprising fiscal stimulus amounting to about 10 percent of GDP; cuts in the policy rate by 75 basis points to its all time low of 0.5 percent, and financial sector measures to buttress the smooth functioning of financial markets and support debtors affected by COVID 19—helped limit the impact. The fiscal support has included health-related spending and assistance to affected households, including those outside the social security system financed by some reprioritization in the fiscal year 2020 budget and an additional borrowing of 1 trillion baht. These measures have saved lives and livelihoods and in part supported an initial recovery by restoring confidence and permitting a pathway to a safe and gradual reopening of activity.

https://www.imf.org/en/News/Articles/2021/06/21/na062121-5-things-to-know-about-thailands-economy-and-covid-19

From the IMF, not Fox News. Yeah, they could have done better, given a crystal ball. But, compared to China today, looks good to me. Too bad we can never know what a democratically elected gov't would have done..... Considering that clowns often get elected by voters without smarts or knowledge -- I can only imagine such a gov't wouldn't have been more successful in governing.

 

Anyway, the current gov't has done a credible job, all things considered. And this assessment by "fair and balanced" world organizations. Do a Google -- it's not just the IMF article, above.

 

Not really concerned about who governs Thailand going forward, as it certainly won't measurably affect my retirement life in Thailand -- nor probably the life of the average Thai.  A benevolent dictator would be ok, as would a democratically elected clown -- as long as she or he is surrounded by competent advisors and cabinet. Thailand always seems to muddle forward toward 1st world status, regardless if the leader is a coup general -- or a sister of a drug dealer exterminator.

[Screaming]

I think electric power prices are very reasonable compared to many other countries. Maybe the complainers would rather switch back to coal for power generation.

idiot.webp

[seedy]

17 hours ago, Screaming said:

Maybe the complainers would rather switch back to coal for power generation.

idiot.webp 50.35 kB · 4 downloads

Maybe you should do a little fact checking before posting what could very well be considered ...

Mae Moh power plant - burns lignite

5 others in Thailand burn coal also producing 20% of power generated.

Renewables increased 0.7% from 2008 - 2017, hardly earth shattering.

 

[ThailandRyan]

17 hours ago, Screaming said:

I think electric power prices are very reasonable compared to many other countries. Maybe the complainers would rather switch back to coal for power generation.

idiot.webp 50.35 kB · 4 downloads

Reasonable for us expats and those we'll off Thais, but the underpaid and impoverished Thais don't think so. Many have never had a warm shower and before you start in with "well they have cell phones", you might want to research your comment before it gets shredded. No they do not all buy apple phones.  Many cook on wood and sleep in a cold house in the north during g this time and is why blankets and coats are handed out.

[StevieAus]

On 12/21/2022 at 7:42 AM, ThailandRyan said:

Reasonable for us expats and those we'll off Thais, but the underpaid and impoverished Thais don't think so. Many have never had a warm shower and before you start in with "well they have cell phones", you might want to research your comment before it gets shredded. No they do not all buy apple phones.  Many cook on wood and sleep in a cold house in the north during g this time and is why blankets and coats are handed out.

Very true I live in the North and see all of the above particularly cooking by burning wood

[Andycoops]

21 hours ago, StevieAus said:

Very true I live in the North and see all of the above particularly cooking by burning wood

My neighbours here in Isaan keep a wood fire going throughout the night to keep their cows warm...

[Damrongsak]

On 12/18/2022 at 8:21 PM, ezzra said:

No such term in the Thai language... Mucking it up and playing it by ear terms is widely used among the decision makers...

Or shoot from the hip.  Some of these folks could get a job acting in old western shoot-em-up movies.