Government Clarifies Fuel Tariff Increase For May to August Period

[snoop1130]

 

BANGKOK (NNT) - The Energy Regulatory Commission (ERC) has announced it plans to raise household power bills from May to August to 4.77 baht per kilowatt-hour (unit), following the successful completion of their 3.2-billion-baht subsidy for vulnerable groups, which will end in April.

 

The government said the move, although having raised both consumer and business concerns about rising power bills, particularly during the summer months when electricity consumption soars, is necessary to ensure continued stability and growth in the economy, and it will help to maintain its commitment to ensuring a sustainable future for all citizens.

 

Government Spokesperson Anucha Burapachaisri stated that the ERC meeting has agreed on the resolution to raise the Ft price after assessing costs in accordance with the current global and domestic situation. He explained that the ERC reference the rates from data from January 2023 as its framework for making its decision.

 

Anucha further stated that the Ft rate is adjusted every four months to align electricity prices with the production budget. He mentioned that since energy costs are declining globally, this could result in lowered electricity prices in the future.

 

The spokesperson also highlighted the authorization of a 3.2-billion-baht subsidy to help vulnerable groups whose households used less than 300 units of electricity per month from January to April 2023, noting the subsidy is a clear example of the government’s dedication to supporting those in need, and it demonstrates its commitment to creating a more equitable and prosperous society for all.

 

Full Story: https://thainews.prd.go.th/en/news/detail/TCATG230331130521649

 

-- © Copyright NNT 2023-03-31

 

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[hotchilli]

Inflation continues..

[RichardColeman]

12 hours ago, snoop1130 said:

The Energy Regulatory Commission (ERC) has announced it plans to raise household power bills from May to August

whilst coining it it for adverting the usual water brand in tv interviews

[dinsdale]

13 hours ago, snoop1130 said:

He mentioned that since energy costs are declining globally, this could result in lowered electricity prices in the future.

If energy costs are declining globally why put it up? As for lowered prices I just asked the pig flying past my window about this. TRUE it said. It's TRUE.

Edited April 1, 2023 by dinsdale

[nigelforbes]

15 minutes ago, dinsdale said:

If energy costs are declining globally why put it up? As for lowered prices I just asked the pig flying past my window about this. TRUE it said. It's TRUE.

The article tells you in part, the increase is based on the previous four months prices which are reviewed every four months. What it doesn't tell you is that subsidized electricity prices costs the government money and that money has to be paid back at some point so that prices can once again be subsidized in the future. The oil stabilization fund is the same, the fund that supports petrol prices. 

[jacko45k]

Jeez, my bill was bad enough last month!

[new2here]

2 hours ago, nigelforbes said:

The article tells you in part, the increase is based on the previous four months prices which are reviewed every four months. What it doesn't tell you is that subsidized electricity prices costs the government money and that money has to be paid back at some point so that prices can once again be subsidized in the future. The oil stabilization fund is the same, the fund that supports petrol prices. 

Totally agreed.  It appears to be essentially a “reverse” looking tool. So, while they may expect futures moves down, at the present, the preceding period was still up - therefore the rise in the FT.

 

I also agree that the fund really appears to somewhat like a “line of credit” that can be tapped when times are tough - thus larger subsidies- and is financed in part by that LOC … but that some point in the future, that will need to be paid back.. 

 

On the surface, that seems like a wise move and having a fund like this seems to allow them to essentially smooth out the pains of temporarily high highs while talking advantage of any low lows to “bank” some savings. 

[sniggie]

Well, my bill won't be going up! Three hot days up here in Isaan and two long afternoon power cuts. That's one way of keeping usage down but it's going to be a long hot summer if this goes on.