Thai industry wants fuel tariff updated every 2 months to combat overcharging
The Federation of Thai Industries (FTI) has urged the Energy Regulatory Commission to review the fuel tariff (Ft) every two months amid the fast-changing global economic situation.
The Ft is currently adjusted every four months – in January, May and September – to reflect changes in the exchange rate, fuel costs and power consumption.
“For the first adjustment of this year [January-April], the ERC based its calculation on a period when global energy prices were peaking while the baht was weak [late last year],” FTI vice chairman Isares Rattanadilok na Phuket said on Wednesday.
“This has resulted in a 13% increase in energy bills for the business sector, from 4.72 baht per unit to 5.33 baht.”
Isares said that the second adjustment in May will be based on figures in January, which are still high. The May adjustment will therefore not be in line with the economic situation in May, when he expects global energy costs to drop and the baht to be stronger.
“Ft adjustments that are not updated fast enough will only result in Thai people paying more than they should for electricity,” he said.
Isares also urged the new government to bring transparency to energy management and ensure that Thais do not face inflated utility bills.
He said it was unfair that bills had risen for all Thais while private power producers enjoyed steady profits and growth. He added that the government was also shouldering too much burden in electricity subsidies.
“The Electricity Generating Authority of Thailand only has a 30% share in the market but still has to shoulder over 100 billion baht of debt from subsidising people in vulnerable groups,” he said. “The FTI hopes to see the [next] government come up with a solution that truly tackles the root cause of the issue,” he added.
