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Prime Minister faces questions about energy costs

Featured Replies

image.jpeg

PHOTO: Unsplash

 

by Mitch Connor


Prime Minister Prayut Chan-o-cha has announced that the government is intensifying its efforts to discover new sources of alternative energy in response to complaints about rising electricity bills during the summer months.

 

His statement comes in reaction to social media outrage and calls for the government to take further steps to reduce people’s energy expenses.

 

“It is crucial to examine why bills are increasing. The issue is complex, involving production costs and management. We will explore potential actions. Rest assured, I will personally oversee the matter,” the Prime Minister stated.

 

He added that electricity rates are connected to long-standing business operations and contractual commitments. “However, the government will endeavour to ensure no one is disadvantaged,” Gen Prayut said.


He further stated that the government has been attempting to identify and promote more affordable energy sources, such as renewable energy, and encourage local communities and households to utilise solar cells to capture sunlight and convert it into electricity.

 

“We should also consider the energy prices and petrol prices in other nations. But we shouldn’t compare ours with countries that possess their energy sources.

 

Full story: https://thethaiger.com/hot-news/economy/prime-minister-faces-questions-about-energy-costs

 

Thaiger

-- © Copyright Thaiger 2023-04-19

 

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Like fuel subsidies, why not subsidize energy usage. Is it really costing more to generate the energy distributed around Thailand?

54 minutes ago, webfact said:

We should also consider the energy prices and petrol prices in other nations. But we shouldn’t compare ours with countries that possess their energy sources.

So Thailand does not produce its own fuel from the oil fields leased out to folks like PTT and so on?

 

Kind of confused.

 

Where does gas come from in Thailand?
 
Most of Thailand's crude oil and condensates are from offshore fields in the Gulf of Thailand.

 

Does Thailand produce gas?
 
Natural gas fuels approximately 60–65% of Thailand's electrical power generation. The Erawan gas field in the Gulf of Thailand supplies about 20% of Thailand's gas production.
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The first step is to ensure solar energy is taken advantage of. Some countries do it better than others. 

 

I can only think of three reasons why the government does not use the people's taxes to install home solar at reduced prices.

 

The first two are,

Laziness and money fright.

 

The third I'd rather not say out loud.

 

Solar doesn't solve every problem, but if you can't get the solar sorted correctly then all else is gonna be impossible too.

 

Laying a few solar farms around the place doesn't cut it. 

A lot more should be done.

 

 

 

 

 

45 minutes ago, ThailandRyan said:

Like fuel subsidies, why not subsidize energy usage. Is it really costing more to generate the energy distributed around Thailand?

So Thailand does not produce its own fuel from the oil fields leased out to folks like PTT and so on?

 

Kind of confused.

 

Where does gas come from in Thailand?
 
Most of Thailand's crude oil and condensates are from offshore fields in the Gulf of Thailand.

 

Does Thailand produce gas?
 
Natural gas fuels approximately 60–65% of Thailand's electrical power generation. The Erawan gas field in the Gulf of Thailand supplies about 20% of Thailand's gas production.

The fuel subsidy covers petrol, diesel, gas, oil, anything that is used for fuel. And since most power stations require oil, gas, coal or other fuel, that also is subsidised by the same subsidy that governs automotive fuel purchases.

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Thailand had been importing crude petroleum (13th largest importer in the world-2021) & natural gas.

Paradoxically it has been exporting crude (52nd largest exported in the world-2021).

 

In 2021 Thailand sold surplus LNG to Japan and plans in the future to re-export fuel for power plants to "energy-hungry countries" such as South Korea, China and Taiwan.

 

In summary I summarize with this link titled:

"Opinion - Prayut's mismanagement of energy sector offers windfall for power generators but bodes ill for end users and businesses", December 23, 2022

https://www.thaienquirer.com/47020

 

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2 hours ago, webfact said:

Prime Minister Prayut Chan-o-cha has announced that the government is intensifying its efforts to discover new sources of alternative energy in response to complaints about rising electricity bills during the summer months.

Too late mate, you're on skid row.

I compared my UK and Thailand domestic electricity kWh prices for Dec22 to Feb23.  The UK rate was about 500% (yes 5 times) the Thailand rate.  50p vs 10p.

Thailand as a net importer of oil, gas and coal is subject to the same basic global market pricing.

So it seems that either the UK has some highly inefficient structures in its  energy delivery model or Thailand has a huge price bomb overdue to explode.

 

2 hours ago, ThailandRyan said:

Where does gas come from in Thailand?

 

2 hours ago, ThailandRyan said:

Does Thailand produce gas?

Thailand: Domestic gas production? Yes. Mainly Gulf of Thailand. Imports the product? Yes. Mainly Myanmar. Hope that answers your question.

The heat is one thing and using the a/c to escape the heat is optional. So I wouldn't bother about paying more for electricity except the air pollution levels make remaining indoors and using a/c pretty nearly a necessity. It's government's responsibility to enforce clean air provisions and stop burning or take emergency actions to shut down traffic. If the government is going to refuse to do that, then it needs to pay a subsidy for people to operate a/c. Ought to pay a subsidy, too, for people without a/c to have emergency centers for clean air.

3 hours ago, webfact said:

the government is intensifying its efforts to discover new sources of alternative energy

no need to discover new sources of energy:

Psychic Energy (fairgrounds), Ectoplasm (foam on Prayut's mouth), Road Rage (on the roads, duh), Ghosts (every village, town and city)

Thailand has it all! 

1 hour ago, PeeJayEm said:

I compared my UK and Thailand domestic electricity kWh prices for Dec22 to Feb23.  The UK rate was about 500% (yes 5 times) the Thailand rate.  50p vs 10p.

Thailand as a net importer of oil, gas and coal is subject to the same basic global market pricing.

So it seems that either the UK has some highly inefficient structures in its  energy delivery model or Thailand has a huge price bomb overdue to explode.

 

Or it could be that the UK has allowed the generators to maintain and even increase substantially their dividends by setting a very high price cap and making the public suck it up. Thailand has chosen to cap at a much lower rate.

2 hours ago, mrfill said:

Or it could be that the UK has allowed the generators to maintain and even increase substantially their dividends by setting a very high price cap and making the public suck it up. Thailand has chosen to cap at a much lower rate.

My theory is that the UK price is way higher than most countries (even in Europe) because the supply chain has been sliced into so many separate stages and markets - all run by private entities (raw fuel supply, generation, grid distribution, retail supply) and all making profits along the way and then with 20% tax on the final retail consumers.

Countries like Thailand (as far as I know) have kept that whole chain in government hands as natural monopoly. In my view that's the correct way of managing anything that is critical infrastructure fundamental to security of the economy and wellbeing or people - not slicing out profit and tax at four stages within the supply.

The greed is unlimited... In summer when it is hot and people need to use their airco much more, or fans , they always increase the electricity bills.. Every year the same, a lot of use will give  alot of money. Than start complaining and the bills go down a bit when it is cooler and less usage....

6 hours ago, klauskunkel said:

no need to discover new sources of energy:

Psychic Energy (fairgrounds), Ectoplasm (foam on Prayut's mouth), Road Rage (on the roads, duh), Ghosts (every village, town and city)

Thailand has it all! 

And that is the reason you live in Thailand good luck 

7 hours ago, PeeJayEm said:

I compared my UK and Thailand domestic electricity kWh prices for Dec22 to Feb23.  The UK rate was about 500% (yes 5 times) the Thailand rate.  50p vs 10p.

Thailand as a net importer of oil, gas and coal is subject to the same basic global market pricing.

So it seems that either the UK has some highly inefficient structures in its  energy delivery model or Thailand has a huge price bomb overdue to explode.

 

Not a valid comparison for anyone other than yourself with energy bills in both places.

 

Almost everything driving those price differentials are unique to each nations economy and energy supply/demand frameworks. 

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"Rest assured, I will personally oversee the matter,” the Prime Minister stated".

Of course, just like many of his other lies, ie there won't be a coup. ????

On 4/19/2023 at 2:54 PM, PeeJayEm said:

I compared my UK and Thailand domestic electricity kWh prices for Dec22 to Feb23.  The UK rate was about 500% (yes 5 times) the Thailand rate.  50p vs 10p.

Thailand as a net importer of oil, gas and coal is subject to the same basic global market pricing.

So it seems that either the UK has some highly inefficient structures in its  energy delivery model or Thailand has a huge price bomb overdue to explode.

 

Once again, Thailand operates a fuel subsidy scheme, whereby high consumer prices are temporarily subsidised, until such time as energy costs fall when consumers overpay to replenish the fund. During covid it was a one way street and government had to borrow to fund the over extended fund. The idea of the fund is to smooth the peaks and valleys in the price of energy and fuel.....it does work quite well and is responsible for keeping inflation lower than if the scheme wasn't in operation.

 

https://www.nationthailand.com/business/40016379

 

https://finance.yahoo.com/news/thailand-steps-inflation-fight-subsidies-081001693.html

 

https://www.reuters.com/world/asia-pacific/thailand-approves-support-measures-cope-with-high-energy-prices-2022-03-22/

 

 

On 4/19/2023 at 9:45 AM, NoshowJones said:

"Rest assured, I will personally oversee the matter,” the Prime Minister stated".

Of course, just like many of his other lies, ie there won't be a coup. ????

......and why is he continued to be referred to as a PM?

He's not that - technically and legally. 

2 hours ago, zzaa09 said:

......and why is he continued to be referred to as a PM?

He's not that - technically and legally. 

Caretaker??

30 minutes ago, NoshowJones said:

Caretaker??

Hmmm...

Don't even know if he's that. 

 

 

Oligarchical chosen dictator sounds more appropriate. 

 

????

On 4/23/2023 at 11:32 AM, nigelforbes said:

Thailand operates a fuel subsidy scheme, whereby high consumer prices are temporarily subsidised, until such time as energy costs fall when consumers overpay to replenish the fund. During covid it was a one way street and government had to borrow to fund the over extended fund

Many thanks for all this Nigel - I'm much better informed now. 

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