Thai industry calls for retention of current power tariff amid hike fears

[webfact]

 

The Joint Standing Committee on Commerce, Industry and Banking (JSCCIB) is urging the Thai government to retain the current power tariff of 3.99 baht per kilowatt-hour. The request comes amid concerns that a proposed hike to 4.68 baht could escalate operational costs for manufacturers, leading to a 5 to 10% increase in product prices.

The Energy Regulatory Commission previously suggested the tariff increase, attributing it to rising fuel costs and the need for repayment to the state Electricity Generating Authority of Thailand (Egat). Egat incurred substantial losses after subsidising electricity bills from September 2021 to May 2023, with the aim of mitigating the impact of rising fuel prices on households and businesses.

 

However, this proposed new tariff was deemed too high by Prime Minister Srettha Thavisin, who pledged to discuss with officials for a possible adjustment. The current rate of 3.99 baht (US$ 0.11) is set to remain in place until the close of December, with a new rate determined every four months, reported Bangkok Post.

 

“If the power tariff rises to 4.68 baht (US$ 0.13) a unit, businesses will not be able to control energy costs and will need to increase the prices of goods, eventually affecting the cost of living,” stated Kriengkrai Thiennukul, chairman of the Federation of Thai Industries (FTI), a key member of the JSCCIB. He also warned of a potential 17% increase in operating costs should the 4.68-baht rate be enforced.

In a recent development, the Energy Ministry suggested a revised rate of 4.20 baht (US$ 0.12 ) per unit. This, in turn, would result in manufacturers’ costs increasing by 5%, leading to a 2 to 4% rise in goods’ prices.

 

by Alex Morgan

Picture courtesy of Pattanapong Hirunard

 

Full story: The Thaiger 2023-12-07

 

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[bamnutsak]

Hard to wean oneself off the teat of government subsidies.

 

 

 

 

[keith101]

The Government is getting less from tourism so the shortfall has to come from somewhere 

How can they pay out on the 10,000 wallet scheme if you dont pay more to them first

Edited December 7, 2023 by keith101

[hotchilli]

Energy prices go up, all goods go up.

The poor suffer more, debt goes up.

Welcome to Thailand, boom or bust 2024.