Ruling party pledges to cut electricity prices by almost half
Palang Pracharat Party has pledged to cut electricity prices by nearly half for both residential and industrial users
The ruling Palang Pracharat Party has pledged to cut electricity prices by nearly half for both residential and industrial users, it announced on Monday.
Mingkwan Sangsuwan, a key figure in the party, told a press conference that its strategic committee, chaired by Deputy Prime Minister Prawit Wongsuwan, is committed to reducing the cost of power to 2.50 baht per unit for households and 2.70 baht per unit for industrial users.
The price cut will be achieved by revising concessions for natural gas production in the Gulf of Thailand and eliminating the fuel tariff rate, Mingkwan said.
High electricity costs have been criticised by residential consumers as well as factory owners, with the latter saying they increase production costs and make Thai exports less competitive.
The price of electricity in Thailand is among the highest in the region, but the ruling party’s plan will see it fall to among the lowest.
The price has two components; a basic price and a fuel tariff.
The ruling party said it will adjust this structure by revising concessions for natural gas production in the Gulf of Thailand and suspending the 0.9827 baht per unit fuel tariff. To accomplish the latter, the Provincial Electricity Authority will receive a one-year debt deferment plan totalling 150 billion baht, which will offset the money it will lose from the suspension of the fuel tariff.
Thailand uses about 200,000 million units of electricity per year, with industry accounting for more than 60% of the total.
The ruling party also pledged to form a committee comprising representatives from all sectors to monitor energy prices and report to the public.
