Companies Appeal for Help with Rising Electricity Costs

[snoop1130]

 

BANGKOK (NNT) - The Joint Standing Committee on Commerce, Industry and Banking (JSCCIB) is urging Prime Minister Gen Prayut Chan-o-cha to issue steps to alleviate the financial strain on entrepreneurs following the impending increase in power bills.

 

The Energy Regulatory Commission (ERC) said last week that it would increase the electricity rate for businesses by 20.5% to 5.69 baht per kilowatt-hour (unit) from the previous rate of 4.69 baht per unit. The Federation of Thai Industries (FTI) expressed alarm over the decision, prompting the JSCCIB to petition the prime minister.

 

The Electricity Regulatory Commission (ERC) indicated that the new power rate was intended to help the state-owned Electricity Generating Authority of Thailand (EGAT) deal with its balance sheet after incurring 125 billion baht in losses from aiding the government with the electricity price ceiling.

 

The JSCCIB asks that the government establish a joint committee comprised of state and private sector officials to address the concerns of businesses. The agency stated that the increase in energy prices could have a negative impact on Thailand’s competitiveness, leading to a fall in foreign direct investments from multinational corporations.

 

The FTI announced last week that its members would be forced to raise product prices by 5 to 12 percent if the government hiked the commercial electricity tariff.

 

Source: https://thainews.prd.go.th/en/news/detail/TCATG221222113147638

 

-- © Copyright NNT 2022-12-22

 

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[BangkokReady]

Do Thai people expect the government to simply subsidise everything for everyone?  Who pays for all of this?

[jonclark]

As respectable and socially conscious as all companies profess to be I would have thought that they would be willing shut up and pay....rather than suggesting that their customers..aka the taxpayer bails them out again. 

[zzaa09]

33 minutes ago, BangkokReady said:

Do Thai people expect the government to simply subsidise everything for everyone?  Who pays for all of this?

Public utilities [like other public entities] should be treated as public domain for the commons, therefore subsidized appropriately without the scheming ideals of being profitable [for some]. 

[nigelforbes]

1 hour ago, BangkokReady said:

Do Thai people expect the government to simply subsidise everything for everyone?  Who pays for all of this?

Well certainly not citizens since only 6.3 mill. of them pay any tax.

 

"The workforce is 39 million. Unemployed, very young, very old, unable to work because of health is 31 million. Only 9.6 million people are registered in the tax system.

Of the 9.6 million, 3.3 million earned 25k Baht per month or more, the threshold for paying tax, THE REMAINDER EARNED LESS THAN THE THRESHOLD".

Edited December 22, 2022 by nigelforbes

[Cake Monster]

16 hours ago, snoop1130 said:

The Energy Regulatory Commission (ERC) said last week that it would increase the electricity rate for businesses by 20.5% to 5.69 baht per kilowatt-hour (unit) from the previous rate of 4.69 baht per unit. The Federation of Thai Industries (FTI) expressed alarm over the decision, prompting the JSCCIB to petition the prime minister.

This is the first time I have seen some numbers regarding the impending Electric Tarff rises.

20.5 % ( and dont forget to add on the extra cost of VAT @ 7 %) is a large hike, and one that will put many Companies under.

Some Nations that are Thailand's direct Competitors for Exports and Manufactured Goods have Tariffs set for a Year, that are only about Half of this cost..

The basic costs of everything is sure to rise, and add to the nations Inflation rate, which has been quoted at something like 6.5 %( among the Worlds lowest )

The Inflation rate is nothing like this number, with Food Staples rising by more than 30 %, and in many cases by as much as 75%

 

[hotchilli]

17 hours ago, snoop1130 said:

The Joint Standing Committee on Commerce, Industry and Banking (JSCCIB) is urging Prime Minister Gen Prayut Chan-o-cha to issue steps to alleviate the financial strain on entrepreneurs following the impending increase in power bills.

Happy 2023... 

[hotchilli]

16 hours ago, BangkokReady said:

Do Thai people expect the government to simply subsidise everything for everyone?  Who pays for all of this?

Ultimately the people will.

[hotchilli]

15 hours ago, nigelforbes said:

Well certainly not citizens since only 6.3 mill. of them pay any tax.

 

"The workforce is 39 million. Unemployed, very young, very old, unable to work because of health is 31 million. Only 9.6 million people are registered in the tax system.

Of the 9.6 million, 3.3 million earned 25k Baht per month or more, the threshold for paying tax, THE REMAINDER EARNED LESS THAN THE THRESHOLD".

I wonder how Thailand balances the books looking at those stats?

[StayinThailand2much]

Why don't they just double and triple their prices?

[nigelforbes]

1 hour ago, hotchilli said:

I wonder how Thailand balances the books looking at those stats?

I made a mistake, I wrote 6.3 million people pay tax, in fact only 3.3 million  do.

 

600,000 business are registered for tax, only 450,000 filed tax returns.

 

The country's budget (3.2 trill. Baht) relies on tax income from VAT (900 billion Baht), 3.3 million people or 5% of the population (377 billion Baht), and tax revenue from business (570 billion baht).......plus various lesser categories such as fuel tax, liquor, tobacco etc.

 

https://www.statista.com/statistics/1126300/thailand-government-revenue-from-taxes-by-type/

 

 

 

[NoshowJones]

2 hours ago, hotchilli said:

I wonder how Thailand balances the books looking at those stats?

How much has the unelected PM and his government ministers personal offshore bank accounts risen since 2014? Answer in billions please.

[hotchilli]

1 hour ago, NoshowJones said:

How much has the unelected PM and his government ministers personal offshore bank accounts risen since 2014? Answer in billions please.

Multiple billions?

Considering they don't have to declare their wealth you know they're stacking it away.

[hotchilli]

2 hours ago, nigelforbes said:

I made a mistake, I wrote 6.3 million people pay tax, in fact only 3.3 million  do.

 

600,000 business are registered for tax, only 450,000 filed tax returns.

 

The country's budget (3.2 trill. Baht) relies on tax income from VAT (900 billion Baht),

Considering that most Thais do not pay income tax you'd think the government would be eyeing VAT to raise funds... no escaping that, you buy something you pay tax.

The only trouble with that of course is it's unfair across the wealth divide as everyone rich or poor pay the same.

But it is proportional to how much you spend, buy more and pay more tax.

Edited December 23, 2022 by hotchilli

[nigelforbes]

1 minute ago, hotchilli said:

Multiple billions?

Considering they don't have to declare their wealth you know they're stacking it away.

They do have to declare their wealth. All MP's (and PM's) and elected officials must make wealth declarations to AMLO for themselves and their family, when they take office and this is repeated every year to include the source of the assets.

[nigelforbes]

Just now, hotchilli said:

Considering that most Thais do not pay income tax you'd think the government would be eyeing VAT to raise funds... no escaping that, you buy something you pay tax.

The only trouble with that of course is it's unfair across the wealth divide as everyone rich or poor pay the same.

Exactly. But it does put into context the desire to increase sin taxes on alcohol and cigarettes'.

[timendres]

20 hours ago, jonclark said:

As respectable and socially conscious as all companies profess to be I would have thought that they would be willing shut up and pay....rather than suggesting that their customers..aka the taxpayer bails them out again. 

Companies are not charities. Whatever costs go into their production will be reflected in their prices. Hence, their customers will pay. Economics 101.

[zzaa09]

2 hours ago, hotchilli said:

Multiple billions?

Considering they don't have to declare their wealth you know they're stacking it away.

Indeed. 

As it's been their elitist circle history and practice since memory. 

No great revelation. 

[nigelforbes]

1 minute ago, zzaa09 said:

Indeed. 

As it's been their elitist circle history and practice since memory. 

No great revelation. 

Let me repeat, "They do have to declare their wealth. All MP's (and PM's) and elected officials must make wealth declarations to AMLO for themselves and their family, when they take office and this is repeated every year to include the source of the assets".

[spidermike007]

22 hours ago, jonclark said:

As respectable and socially conscious as all companies profess to be I would have thought that they would be willing shut up and pay....rather than suggesting that their customers..aka the taxpayer bails them out again. 

These days, they are less and less conscious, than ever. Especially big corporations, who behave like real swine. 

[nigelforbes]

22 hours ago, jonclark said:

As respectable and socially conscious as all companies profess to be I would have thought that they would be willing shut up and pay....rather than suggesting that their customers..aka the taxpayer bails them out again. 

Which tax payers would those be, all 3.3 million Thai citizens who pay tax? 

[BangkokReady]

4 hours ago, timendres said:

Companies are not charities. Whatever costs go into their production will be reflected in their prices. Hence, their customers will pay. Economics 101.

Unfortunately Thailand has been protected from price increases for a long time.  Food prices had to go up relatively recently for the first time in many years. 

 

Imagine what it would be like to go up again so soon?  Thai people would suddenly have to face a living situation like the rest of the world.  Food going up every six months to a year.  Fuel costs going up several times a year.  Alcohol and tobacco duty going up considerably once a year.

 

It seems like maybe tourism contributed a lot to the subsidisation of Thai people's daily lives, and two years of covid closure has emptied the coffers.  Now Thailand is suddenly looking at a pretty serious situation.

 

It's obviously going to hit poorer people harder.  I wonder if suddenly the corruption that has been enjoyed by so many for so long will no longer be tolerated.  If the general populace isn't being kept happy, they might become quite upset.  "Mai bpen rai" might become a thing of the past.