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Energy Regulators Worried Over Thailand's Free Electricity Scheme


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Posted

Free electricity bill may hurt energy efficiency scheme

By Achara Deboonme

The Nation, Sydney

Thailand's energy regulators are growing concerned with the government's promise to permanently waive electricity bills for low-income earners, citing that aside from huge cost involved, this could sidetrack the national campaign for energy efficiency.

Part of the Pracha Wiwat populist scheme, households consuming below 90 units per month would not be charged for electricity. It is estimated that the government would have to pay Bt1.2 billion per month for this power scheme.

"We're finishing a detailed study on this issue. We're concerned that this would encourage households which consume less than 90 units to push their consumption to the limit. This could jeopardise the campaign towards efficiency which urges all to cut their consumption," said Direk Lawansiri, president of the Energy Regulatory Commission (ERC). "Indeed, the policy would not benefit all low-income power users as expected."

Some Thais now own more than one house. And the one not frequently used would show low energy consumption, but the owner - albeit their financial affluence - would be entitled to the government's assistance. Meanwhile, many poor users, who rent a house with many families, are not entitled to the benefits as the house does not have separate meters.

During visits to energy agencies in Sydney, the commission learnt valuable schemes which could be more efficient in helping the poor cope with the increasing electricity bills. Australia has invented the Hardship Utilities Grant Scheme (HUGS), to assist power users who are unable to pay for their utilities due to financial hardship. Under this scheme, the users can receive a grant for up to 85 per cent of the amount that the household owes to a utility.

To be eligible for assistance under this scheme, they need to contact and inform their payment difficulties to power providers. If their financial hardship is proved, the government would help advise them on how to reduce electricity consumption. Once all is completed, they would be granted the subsidies, which would go directly to the power utilities.

"This could be more useful if it is adapted to Thailand," Direk said.

Energy efficiency is one of two main objectives of the Thai commission this year, after three years of establishment, aside from solving energy-related disputes.

Thailand is a net oil and gas importer. According to Business Monitor International, Thailand's oil and gas consumption is expected to increase by up to 2 per cent per annum in 2010-2014, implying demand of 1.07 million barrels of crude oil per day by the end of the forecast period. This means that Thailand will have to import about 769,000 barrels a day by 2014.

Given Thailand's huge reliance to imports, ERC is also taking part in promoting renewable energy. It plans to collect 0.5 satang from fuel tariff, imposed on electricity cost, to promote renewable energy. Meanwhile, another 0.2 satang could be collected to promote public awareness. These are subjected to the approval of the National Energy Policy Committee.

Recently, it also supported the Power Development Plan (2010-2030) which highlighted the inclusion of nuclear power. "Nuclear power is necessary to ensure energy security. On top of that, we need to stress more focus on renewable energy and efficiency," concluded commissioner Supichai Tangjaitrong.

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-- The Nation 2011-01-31

Posted

OHHH yes go to Australia if you want to find out how to rip off the consumer. They are world leaders there. Electricity bills that double every quarter for no reason at all. Call centers that are overseas based and experts at not answering your questions, queries or complains (They were trained by the same company the politicians use for politics 101 for dummies).

After a few junkets to Sydney the Thai's will come back with so many ideas on how to shaft their customers you will be amazed. You think corruption is bad now in Thailand you ain't seen nothing yet. By the way HUGS really stands for Huge Utility Grab Scam

Posted

HU.G.S well you gotta hand it to them, have to sign into a Thai site to find it even existed, yeah full marks to Mystwoodcol, ya shot em a beauty friend , Australia the land of the ripoff, Privatize the utilities and dear suckers you will get cheaper Elect , water, gas, yeah right , what alot of croc. :bah:

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