Thailand’s plan to hike electricity rates later this year could deter foreign direct investment, warned the Federation of Thai Industries (FTI). The alert followed the Energy Regulatory Commission’s (ERC) announcement on Friday, indicating an imminent rise in power bills for both businesses and households.

 

The ERC has proposed three new power tariff options, featuring increases from 11% to 44% above the current rate of 4.18 baht per kilowatt-hour, which will remain in effect until the end of August. These adjustments stem from higher gas prices during the cool season and the need to repay debts to the Electricity Generating Authority of Thailand (EGAT) and gas suppliers.

 

The new rates, set to be implemented from September to December, will range from 4.65 to 6.01 baht per unit. The commission explained that EGAT and gas suppliers had previously helped the government keep tariffs low from September 2021 to April this year, leading to a 15 billion baht debt from gas purchases and a 98 billion baht loss for EGAT.

 

Kriengkrai Thiennukul, FTI Chairman, stated that the 4.18-baht rate is already high. Foreigners who plan to invest in Thailand may need to think carefully.

 

 

Thailand’s power tariff surpasses that of some neighbouring countries, including Vietnam, potentially making Vietnam a more attractive destination for foreign investors. This disparity could impact Thailand’s efforts to lure foreign firms, as rising electricity costs may elevate operating expenses.

 

Entrepreneurs might consider relocating to countries like Vietnam, which not only offers lower electricity rates but also benefits from more free trade agreements than Thailand. Kriengkrai added that higher power bills could compel local manufacturers to increase product prices, making it challenging to compete with exporters of low-cost goods.

 

“This may affect the state’s attempts to encourage foreign firms to invest in Thailand as electricity prices are set to increase, eventually driving up their operating costs.”

 

The situation places Thailand in a precarious position as it attempts to stimulate its sluggish economy. The anticipated rise in electricity costs could have a ripple effect, impacting both domestic and international investment landscapes, reported Bangkok Post.

 

By Puntid Tantivangphaisal

Photo courtesy of Bangkok Post

 

Full story: The Thaiger 2024-07-18

 

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Dark clouds are gathering 

4 minutes ago, Snackbar said:

Dark clouds are gathering 

 

I hope not, they will screw our solar production 😞 

i guess higher electric will put a dent in the sales of EV cars being sold and used. That is a large increase and am curious how the average Thai will be able to manage such an increase with their low salaries. Increasing the electric so much will also mean paying more where you buy things like food and supplies. The damage will be irreparable to more than half the population. 

It’s all down to Greed. EGAT is not hurting for money, they just want bigger profits. 

1 hour ago, Snackbar said:

Dark clouds are gathering 

The vultures are hovering....

1 hour ago, thesetat2013 said:

i guess higher electric will put a dent in the sales of EV cars being sold and used. That is a large increase and am curious how the average Thai will be able to manage such an increase with their low salaries. Increasing the electric so much will also mean paying more where you buy things like food and supplies. The damage will be irreparable to more than half the population. 

 

EV's are currently about 4-5 times cheaper to fuel than an ICE, so I don't think it will make much of a difference.

“This may affect the state’s attempts to encourage foreign firms to invest in Thailand as electricity prices are set to increase, eventually driving up their operating costs.”

 

I see NOTHING appealing about investing in Thailand. The unelected government has yet to give the full details on how they're going to ream us over with taxes. They're full of ideas and most are bad.  Why would anyone in their right mind trust the current administration?

I wonder if this increase will result in any additional tax revenue for the government? Funding for the wallet is looking thin on the ground. 

1 hour ago, JBChiangRai said:

 

EV's are currently about 4-5 times cheaper to fuel than an ICE, so I don't think it will make much of a difference.

How does that work out then?

I pay more than most for my electricity (10 baht per unit on a private development) but I pay the same as everyone else for gasoline.

2 hours ago, thesetat2013 said:

i guess higher electric will put a dent in the sales of EV cars being sold and used

 

Due to low demand for electricity at night in Thailand many EV owners have TOU meters to charge their EVs with half price electricity.

 

 

I use my home solar to charge my 2 EVs and an electric motorbike. I don’t have a meter.

 

2 hours ago, Crossy said:

I hope not, they will screw our solar production 😞 

 

 

 

 

 

 

 

Many business are now moving out of Thailand or going bust.

The Thai economy is not doing well.

This will be a double whammy for businesses.

Increased energy costs (all businesses use electricity) and increased wage costs (thank you Mr Prime Minister).

The minimum wage in Vietnam has just been increased and it it is still lower than the current minimum wage in Thailand.

So, for a business to try to continue here, it will have to 'import' cheaper labour?

More unemployed Thais?

 

All the new EVs are using the sun's power and causing more shade, thereby slowing the earth's spin with a light/dark pressure differential, which makes the coal and gas 'cooler' so it doesn't burn as efficiently, which raises prices.

 

It's a classic domino effect, checkmate.

 

 

_{Disclaimer: I'm not an expert.}

Prayuth was better.

4 minutes ago, Tropicalevo said:

How does that work out then?

I pay more than most for my electricity (10 baht per unit on a private development) but I pay the same as everyone else for gasoline.

 

My first thought is this, are there 5 or more units being rented where you are with the same landlord?  If so he is breaking the law, he cannot charge more that the rate he pays to PEA/MEA.

 

Even if you're paying 10 baht per unit, EV's are still cheaper than an ICE car.

why not invest in more solar farms

 

that 10.000 bribe money should go as a discount for solar panels for house owners, can buy 2 ?  for 2 fans, lol

18 minutes ago, fondue zoo said:

All the new EVs are using the sun's power and causing more shade, thereby slowing the earth's spin with a light/dark pressure differential, which makes the coal and gas 'cooler' so it doesn't burn as efficiently, which raises prices.

 

It's a classic domino effect, checkmate.

 

 

_{Disclaimer: I'm not an expert.}

 

It's worse than that.  Photons strike the solar panels and release electrons to make electricity.  They also release alpha radiation which makes anyone within a 2km radius sterile.

25 minutes ago, JBChiangRai said:

My first thought is this, are there 5 or more units being rented where you are with the same landlord?  If so he is breaking the law, he cannot charge more that the rate he pays to PEA/MEA.

 

Curiously, waiting for that answer as well, because I thought @Tropicalevo owns his properties

Thailand is facing so many headwinds right now, after 9 years of the Prayuth Decimation, with horrific economic policy and the economy on the skids. Now new car sales are down, used car sales are down, condo and home sales are down, consumer confidence is down, foreign investment is down, and manufacturing is down, so they would be utterly idiotic to allow the electricity rates to rise to at any significant level, anytime soon. 

7 hours ago, JBChiangRai said:

 

My first thought is this, are there 5 or more units being rented where you are with the same landlord?  If so he is breaking the law, he cannot charge more that the rate he pays to PEA/MEA.

 

Even if you're paying 10 baht per unit, EV's are still cheaper than an ICE car.

Breaking the Law, Landlords Will do/ Charge  what they want . Legal or not.

Shocking hike: Thai industries spark concern over electricity rates .

 

Yes ,like I said before  Starting with the EV'S the Electricity the  prices will go Up and Up  It's all about Demand and Supply and Greed .

The electric providers Love it .

Now they have to provide More Electricity ,That could be a problem if there are Too many EV'S too Quick to use the Electricity.

More Power stations . Coal /Gas / Oil/ Nuclear ,  Solar isn't going to cut it.

1 hour ago, digger70 said:

Yes ,like I said before  Starting with the EV'S the Electricity the  prices will go Up and Up  It's all about Demand and Supply and Greed .

The electric providers Love it .

Now they have to provide More Electricity ,That could be a problem if there are Too many EV'S too Quick to use the Electricity.

 

Did you read any of the earlier posts before posting?

 

Thailand makes too much power at night that's why they sell it at half price. Most EV owners either have solar or a TOU meter.

 

 

1 hour ago, digger70 said:

More Power stations . Coal /Gas / Oil/ Nuclear ,  Solar isn't going to cut it.

 

You clearly don't understand levelized cost of electricity by source. If you did, then you would know that Solar and Wind are the cheapest. Crying for "Coal /Gas / Oil/ Nuclear" will put everyone's bill up.

 

"Solar isn't going to cut it" in the tropics? 

 

 

https://en.wikipedia.org/wiki/Cost_of_electricity_by_source

28.5 a unit currently where I live . That’s nearly a third of a GBP . And standing charge is 24.6 a day. All GBP. And people say Falang are rolling in money. Yes we get paid if we are more productive and the likes but often it’s forgotten our costs are so much higher. Just saying……

2 hours ago, Nigeone said:

28.5 a unit currently where I live . That’s nearly a third of a GBP . And standing charge is 24.6 a day. All GBP. And people say Falang are rolling in money. Yes we get paid if we are more productive and the likes but often it’s forgotten our costs are so much higher. Just saying……

But will add , as should have said , this rise  in Thailand won’t make living any easier for Thai families…..very sad.

On 7/19/2024 at 9:54 AM, JBChiangRai said:

 

It's worse than that.  Photons strike the solar panels and release electrons to make electricity.  They also release alpha radiation which makes anyone within a 2km radius sterile.

Not to mention the Hawking radiation from the black hole inside EV owners head 😁 😆.

 

On 7/19/2024 at 7:32 AM, jcmj said:

It’s all down to Greed. EGAT is not hurting for money, they just want bigger profits. 

Really? And how much profit do you believe EGAT has stashed away in the bank?

 

Isn't it amazing what a few clicks on the internet search function shows up?

 

Of course they could be telling lies and it is fake news, but I don't think so.

 

https://www.nationthailand.com/thailand/economy/40030125

 

The Electricity Generating Authority of Thailand (Egat) has explained why its 110-billion-baht debt is preventing it from lowering electricity costs to reduce the public’s financial burden and promote the recovery of the Thai economy in the post-Covid era.
This huge debt has been accumulated as a result of the high price of liquefied natural gas (LNG) imported to fuel power stations, electricity, the cost of which has continued to rise due to the impacts of the ongoing Russo-Ukraine war, Egat governor Boonyanit Wongrukmit said on Thursday.

 

“Egat’s outstanding debt stood at 110 billion baht at the end of fiscal 2022,” he said. “This debt is from short-term loans that must be paid in 7 installments. The deadline for repayment of the last installment is April 2025.”

Boonyanit went on to say that any default on short-term loans would result in a jump in interest, which will be added to Egat’s production outlays and thus increase the cost of electricity generation.

 

 

On 7/19/2024 at 9:42 AM, John Drake said:

Prayuth was better.

Thank you for a good answer

If this keeps up I'm going to have to start turning my fridge off at night just like the Thai's do.  

On 7/19/2024 at 9:52 AM, john donson said:

why not invest in more solar farms

 Today, the Electricity Generating Authority of Thailand (EGAT) has installed solar cells on the surface of water of EGAT dams. As a result, apart from generating electricity from solar power during the day, when the sunlight is unavailable, hydropower of the dam can be combined as a hybrid technology for electricity generation. EGAT is the first utility to combine floating solar power with hydropower for electricity generation.

https://www.egat.co.th/home/en/the-worlds-largest-hydro-floating-solar-hybrid/