Thailand offers 11 billion baht subsidy for low-income electricity bills

[webfact]

Prime Minister General Prayut Chan-o-cha.

 

by Mitch Connor

The Thai government announced plans to allocate over 11 billion baht to support low-income earners with their electricity bills over the next four months, with the subsidy set to begin in May. However, the proposal needs to be reviewed and approved by the Election Commission (EC) before it becomes official.

 

Following yesterday’s Cabinet meeting, Prime Minister General Prayut Chan-o-cha addressed the issue of high electricity bills for households and assured that the government is working on finding solutions. He requested that political parties promising to reduce power tariff rates should be aware of the complexities and reasons surrounding the issue.

General Prayut, stressing that a budget allocation exceeding 11 billion baht is needed, said…

 

“Please have confidence in the government. We are doing our best.”

As the Cabinet has already approved the subsidy, the decision now rests with the EC. According to Section 169 of the Thai constitution, emergency budget allocations approved by an outgoing cabinet following the dissolution of the House must be endorsed by the poll agency first.

 

The prime minister emphasised that the government will ensure fairness for all sectors involved in energy management, as private sector investment is essential and cannot rely solely on the government. All actions must comply with the law, and the Energy Ministry has submitted contracts made with the private sector for power production to public prosecutors for review. Several contracts have existed for an extended period.

 

General Prayut also highlighted the need for careful budget expenditure, focusing attention on necessary targets and supporting vulnerable groups.

 

The Thai government has already provided a 3.2-billion-baht subsidy to help vulnerable groups, such as low-income households and those consuming less than 300 units of electricity per month, from January to April. These groups receive a reduction from the fuel tariff (Ft) before the VAT calculation.

 

Full story: https://thethaiger.com/news/national/thailand-plans-to-subsidize-power-bills-for-low-income-earners-with-11-billion-baht-allocation

 

-- © Copyright Thaiger 2023-04-26

 

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[JoePai]

Blatant buying of votes

[dinsdale]

32 minutes ago, webfact said:

General Prayut also highlighted the need for careful budget expenditure

[KhunBENQ]

48 minutes ago, JoePai said:

Blatant buying of votes

To the point and at the same time blaming opposition parties for their lush promises.

 

[John Drake]

1 hour ago, webfact said:

“Please have confidence in the government. We are doing our best.”

Please clap.

[hotandsticky]

1 hour ago, JoePai said:

Blatant buying of votes

A fraction the Thaksinista 10,000 Baht for votes bribe.

[hotchilli]

4 hours ago, webfact said:

“Please have confidence in the government. We are doing our best.”

Must try harder is what my teacher used to right on my report after I said I did my best.

[h90]

deregulate electric production and allow people who want to buy/sell at the current price.

Currently the pea is passive aggressive if you have solar panels and really don't like to pay if you send out to the grid.

In a free market, the cure for high prices are high prices.
And Thailand always said it get so cheap gas from Myanmar? Where is it? And as Thai industry already complained, why not buying Russian oil and gas as it is cheap.

[h90]

5 minutes ago, hotchilli said:

Must try harder is what my teacher used to right on my report after I said I did my best.

"He tried his best" was always the encrypted form of saying that someone was a total failure....

[h90]

There is one excuse for him....For years this government was pushing for some nuclear power and everywhere was big resistance.....I remember Khanom in the South was discussed and there were lots of protests.
If we would have now a power plant that produces a 2000 MW for almost nothing, electric would be cheaper

[hotchilli]

5 minutes ago, h90 said:

"He tried his best" was always the encrypted form of saying that someone was a total failure....

maybe where you come from...

[KannikaP]

14 minutes ago, hotchilli said:

Must try harder is what my teacher used to right on my report after I said I did my best.

Did the teacher spell WRITE correctly?   555

[hotchilli]

2 minutes ago, KannikaP said:

Did the teacher spell WRITE correctly?   555

Yes, I think that's why I got the message.

[soi3eddie]

19 minutes ago, h90 said:

In a free market, the cure for high prices are high prices.

The "free market" read cartel, energy model in the UK has been a disaster. Blatant exploitation of consumers. So much so, that the UK government has had to subsidise (give credit) to all householders' bills for the last 6 months. Businesses also. And still prices are outrageous - 59.73 Pence per KWh (25 Baht/KWH). I would far rather have the national systems of MEA and PEA in Thailand to keep bills down as low as possible, whether subsidised or not. Private entities will always fleece consumers to generate profits for their owners/shareholders.

 

[vivananahuahin]

what is 300 units, 2 fans , 2 fridges enzv....n, not enough, need go to 400 unit, how much he pays??

[jcmj]

Well if the bills stay like they are, then there will be many more issues when people can’t or don’t pay their bills. ???? gonna hit the fans. 

[jacko45k]

Just now, jcmj said:

Well if the bills stay like they are, then there will be many more issues when people can’t or don’t pay their bills. ???? gonna hit the fans. 

They aren't scared to cut you off for unpaid bills here unlike Europe!

[h90]

1 hour ago, soi3eddie said:

The "free market" read cartel, energy model in the UK has been a disaster. Blatant exploitation of consumers. So much so, that the UK government has had to subsidise (give credit) to all householders' bills for the last 6 months. Businesses also. And still prices are outrageous - 59.73 Pence per KWh (25 Baht/KWH). I would far rather have the national systems of MEA and PEA in Thailand to keep bills down as low as possible, whether subsidised or not. Private entities will always fleece consumers to generate profits for their owners/shareholders.

 

I don't know the UK model, but my guess it is not a free market it is an oligopoly. I doubt you can sell electric at the peak time and get that super high rate (the rate fluctuate during the day). So it is not free market it is some legal mafia, which is worse than state owned.

[h90]

26 minutes ago, jcmj said:

Well if the bills stay like they are, then there will be many more issues when people can’t or don’t pay their bills. ???? gonna hit the fans. 

I recall we once forgot to pay....they came to remind us and told that next week they cut us off if we don't pay

[HappyExpat57]

Yeah . . . just how much of that 11 billion will actually go to the customers?

[h90]

1 hour ago, hotchilli said:

maybe where you come from...

yes...in German language, if you finish a job and get a letter from your previous employer. Per law they are not allowed to write something negative, so they write "he tried his best". Which means a complete failure.

[NONG CHOK]

My power useage never varies much from month to month. My power charges from Jan through to Mar this year have totalled 2,100 baht. I just received my current account and it's 1,300 baht. I'm not complaining but a 90% increase from Mar to Apr would appear to be hard to justify.

[Cake Monster]

My Missus said to me that there was a 7 - yes 7 Satang reduction proposed

[Drumbuie]

1 hour ago, h90 said:

deregulate electric production and allow people who want to buy/sell at the current price.

Currently the pea is passive aggressive if you have solar panels and really don't like to pay if you send out to the grid.

In a free market, the cure for high prices are high prices.
And Thailand always said it get so cheap gas from Myanmar? Where is it? And as Thai industry already complained, why not buying Russian oil and gas as it is cheap.

Deregulation of the UK energy market left millions of its citizens  having to choose between heating and eating last winter. Prices for electricity in Thailand are much lower. 

[NONG CHOK]

11 minutes ago, NONG CHOK said:

My power useage never varies much from month to month. My power charges from Jan through to Mar this year have totalled 2,100 baht. I just received my current account and it's 1,300 baht. I'm not complaining but a 90% increase from Mar to Apr would appear to be hard to justify.

May I add, my actual useage was lower this month than the previous month which makes the 90% increase even more incredible.

[h90]

7 minutes ago, Drumbuie said:

Deregulation of the UK energy market left millions of its citizens  having to choose between heating and eating last winter. Prices for electricity in Thailand are much lower. 

Don't know the UK laws, but I doubt it is a deregulation, most probably they just shared the market between their cronies. Or can you sell electric to the current marketprice into the grid? Or to your neighbor?

[Mickeymaus]

I think we are lucky that Vietnam for instance only charges about 2.70 baht per unit. Thailand's manufacturing needs to be competitive or foreign companies that need a lot of electricity will move to countries where it is cheaper. Therefore I guess Thailand will avoid increasing the price too much.

[billd766]

6 hours ago, h90 said:

There is one excuse for him....For years this government was pushing for some nuclear power and everywhere was big resistance.....I remember Khanom in the South was discussed and there were lots of protests.
If we would have now a power plant that produces a 2000 MW for almost nothing, electric would be cheaper

So you think that a nuclear power plant costs nothing to build, nothing to maintain, nothing to dispose of the spent fuel rods? That also does not include the cost of decommissioning the plant at the end of its working life.

 

Who will pay the upfront costs, including the loans required and at what interest rates?

 

https://www.synapse-energy.com/sites/default/files/SynapsePaper.2008-07.0.Nuclear-Plant-Construction-Costs.A0022_0.pdf

 

Projected Nuclear Power Plant Construction Costs Are Soaring
The construction cost estimates for new nuclear power plants are very uncertain and have
increased significantly in recent years. Companies that are planning new nuclear units are
currently indicating that the total costs (including escalation and financing costs) will be in
the range of $5,500/kW to $8,100/kW or between $6 billion and $9 billion for each 1,100
MW plant.
These new cost estimates are far higher than the industry had previously predicted. For example, as recently as the years 2000-2002, the industry and Department of Energy were talking about overnight costs of $1,200/kW to $1,500/kW for new nuclear units.1
 This range of estimated overnight costs suggested total plant costs of between $2 and $4 billion per new nuclear unit.

The MIT Future of Nuclear Study in 2003, increased the estimated prices
of new nuclear plants to $2,000/kW, not including financing costs. 

 

 

[h90]

9 hours ago, billd766 said:

So you think that a nuclear power plant costs nothing to build, nothing to maintain, nothing to dispose of the spent fuel rods? That also does not include the cost of decommissioning the plant at the end of its working life.

 

Who will pay the upfront costs, including the loans required and at what interest rates?

 

https://www.synapse-energy.com/sites/default/files/SynapsePaper.2008-07.0.Nuclear-Plant-Construction-Costs.A0022_0.pdf

 

Projected Nuclear Power Plant Construction Costs Are Soaring
The construction cost estimates for new nuclear power plants are very uncertain and have
increased significantly in recent years. Companies that are planning new nuclear units are
currently indicating that the total costs (including escalation and financing costs) will be in
the range of $5,500/kW to $8,100/kW or between $6 billion and $9 billion for each 1,100
MW plant.
These new cost estimates are far higher than the industry had previously predicted. For example, as recently as the years 2000-2002, the industry and Department of Energy were talking about overnight costs of $1,200/kW to $1,500/kW for new nuclear units.1
 This range of estimated overnight costs suggested total plant costs of between $2 and $4 billion per new nuclear unit.

The MIT Future of Nuclear Study in 2003, increased the estimated prices
of new nuclear plants to $2,000/kW, not including financing costs. 

 

 

Yes it is a huge investment, but it is safe energy for 50, they speak already about 80 years on the new plants. And all the world is building them. Poland alone is planning 6 new nuclear power plants to replace their coal plants. Since a long time the spent fuel rods can be recycled it is not the 1980s anymore. It is by far the cheapest source of electric and it produces almost no CO2.
We can't increase electric consumption (Aircons, electric cars), don't build power plants, close coal power plants and complain about increasing prices. Either prices are high so industry goes into other countries and normal people can't have airconditions, or we build coal power plants (I don't know if Thailand has coal domestic) or we build nuclear power plants. Only problem is that no one want to have it close to their land. I wouldn't want it in my neighborhood. But I wouldn't want a coal power plant in my neighborhood as well.

[jacko45k]

14 hours ago, h90 said:

I don't know the UK model, but my guess it is not a free market it is an oligopoly. I doubt you can sell electric at the peak time and get that super high rate (the rate fluctuate during the day). So it is not free market it is some legal mafia, which is worse than state owned.

I tried to get my head around it when they were having problems  last year but it is a strange arrangement they try and dress up as a free competitive market... and it aint. State owned as it was when I was younger isn't looking so bad right now for essential services.... Thailand does OK!