Thai private sector backs THB3.70 electricity cost
The lowering of electricity prices, as proposed by former PM Thaksin Shinawatra, warmly welcomed by industry and households
The Thai private sector has welcomed the government's plan of cutting the electricity price from the current 4.15 baht to 3.70 baht per unit, in a bid to reduce the cost of living and enhance the country’s competitiveness.
Prime Minister Paetongtarn Shinawatra said on Tuesday that the government will engage in discussions with relevant parties to eliminate unnecessary costs to achieve the price target.
Kriengkrai Thiennukul, chairman of the Federation of Thai Industries (FTI), said on Thursday that the 3.70-baht power cost is most welcome by the private sector, as electricity is a significant part of the production costs in most industries.
He also pointed out that electricity costs in Thailand are currently higher than competitors such as Vietnam and Indonesia.
“This not only affects the production costs of Thai exports, making them less competitive, but it is also one of the key factors that puts Thailand at a disadvantage in attracting foreign direct investment,” he said.
The Thai Chamber of Commerce (TCC) chairman Sanan Angubolkul, added that the 3.70-baht power cost would help reduce the cost of living of Thais by around 100 billion baht per year.
This will greatly help boost people’s spending power, while business will also benefit from lower production costs, he said.
The 3.70-baht power cost was proposed by former prime minister Thaksin Shinawatra last week during his speech in Chiang Rai province.
He noted that such a measure would likely require subsidies, which currently take the form of liabilities borne by the Electricity Generating Authority of Thailand (EGAT), amounting to more than 100 billion baht.
At 4.15 baht per unit, Thailand’s electricity is the 5th highest in ASEAN countries.
Singapore has the highest power cost in ASEAN, at 12.30 baht per unit, followed by Cambodia (5.53 baht), the Philippines (5.11 baht), and Malaysia (4.45 baht).
In sixth place is Myanmar (2.87 baht), followed by Vietnam (2.69 baht), Indonesia (2.59 baht), Laos (0.92 baht), and Brunei (0.27 baht).
