Bangkok Economy Dims Following Energy Crackdown

[george]

Bangkok economy dims following energy crackdown

BANGKOK: -- Big users of electricity, and petrol stations, have come under new restrictions in a novel attempt to save energy.

Soaring oil prices have claimed an unlikely victim, with the Thai Government ordering major Bangkok retailers to close two hours earlier from today, in an attempt to reduce energy usage.

Faced with a ballooning national energy bill tied to global oil prices, the Government has come up with a novel solution, telling the biggest users of electricity, such as air-conditioned department stores and hypermarkets, that they must close two hours earlier at 8pm and 10pm respectively. Petrol stations must close at midnight nationally to discourage petrol use and there are suggestions of turning out the lights on outdoor billboards at 10pm.

Prime Minister Thaksin Shinawatra, announcing the measures, said one urban shopping mall used as much electricity as an entire district.

The energy ministry has said that 100 shopping malls and hypermarkets consumed up to a third of the electricity generated by the 3645-megawatt Ratchaburi power station.

Thailand's exposure to oil prices, now above $US48 ($A66) a barrel, is exacerbated by the fact that half its energy consumption is fuelled by imported oil. This year price rises are expected to push up import costs by more than 1 billion baht ($A33.4 billion), the Bangkok Post reported. While controversial at home, the new lights-out policy may also be bad news for Thailand's image abroad, already hurt by a social order crackdown forcing bars and clubs to close at 1am.

The early closing times come as it tries to promote itself as Asia's preferred shopping destination. Retailers say while department stores in Singapore and Kuala Lumpur remain open until 10pm, they cannot compete. Thai tourist numbers were down 7 per cent in 2003 year on year due in part to severe acute respiratory syndrome and terrorism fears. But Mrs Pornsiri Sriphraya, deputy governor for international marketing with Thailand's tourism authority, said numbers had grown strongly this year and she did not think early closing would affect tourists as much as locals.

In Bangkok, workers spend several hours in the malls in preference to sitting in traffic for hours after work. "Tourist cities like London and Sydney close at these times, tourists know," Mrs Sriphraya said. "The point is we have things sold outside department stores, on the corner of the street."

Retailers are fiercely lobbying the Government over the changes, warning of up to 40,000 job losses and cut in revenues of 20 per cent, but Mr Thaksin has flagged further cuts to Sunday trading.

That the restrictions do not apply to 24-hour convenience stores has sparked charges of favouritism. Thailand's agribusiness conglomerate CP Group is a major shareholder in CP 7 Eleven.

The measures are expected to stay in place until February or March 2005, the end of the northern winter.

--The Age, AU 2004-08-22

[Sphere]

There is definitely no solution to the energy crisis as long as selfish interests rule.

At my Sukhumvit office building the interior temperature is 16 deg c, where our floor has several offices sharing one control board for the airconditioning. When its raining outside, the place could freeze an eskimo to death.

I have requested the building management many times to adjust the thermostat control - to a bearable 22-24 deg. However, everytime they do that, the khunying wannabes (in their fake cashmere shawls) using the office next door immediately order them to turn it down back to 16 deg.

I have now taken to wearing a jacket on entering the office and I open all the windows to let some warm air in! So much for energy conservation.

[drummer]

There is definitely no solution to the energy crisis as long as selfish interests rule.

There is an utterly fascinating book called The Origins of Virtue by Matt Ridley. Despite the title, Ridley dscribes how economic systems work and don't work, and why. He talks about what traits make them sustainable and which use the resources as fast as possible. Utterly fascinating, and very well written and accessable.

[ovenman]

I wonder how much energy Thailand could save if the mobile phone network were to be shut-down for a few hours each day?