How Pridiyathorn arrested the SET slump

 

Fortunately, Energy Minister Narongchai Akrasanee was alerted by his friends that the “Black Monday” was caused by some rumours, and he quickly informed Pridiyathorn about that.

The deputy PM waited for the right moment to leave the NEPC meeting and quickly called some of his friends to tell them that the rumours were totally groundless. And this explained why the SET bounced back to close at only 36.46 points lower than the previous trading day figure. 

We don’t know who were among those persons who received the important phone calls from Pridiyathorn that day. But it seems to indicate the deputy PM’s powerful network with investors. Some may argue that Pridiyathorn should have issued a press statement to make sure that everyone was informed of the correct information, at the same time. However, we can sympathise with Pridiyathorn considering the urgency of the issue, and the sensitivity of the rumours.

 

PLEA TO CUT ELECTRICITY PRICE

The government has come under growing pressure from the public, who are complaining that electricity prices continue to be high despite the fall in oil prices in the past few months. Somsak Paneetatyasai, president of Thai Shrimp Association, argued that when the price of electricity has been increased in the past when there was a rise in oil prices, the electricity price should be lowered when the price of oil has slumped.

Voicing a similar opinion, Salinla Seehaphan, corporate affairs director of Tesco Lotus, said she would like to see lower electricity price, as it is one of the major cost burdens on people. She said as oil price has gone down, electricity price should also be reduced so that consumers would have more money and higher purchasing power.

Energy Minister Narongchai Akrasanee wrote on his Facebook page that he was aware of this sentiment and the electricity prices would certainly be reduced at its quarterly review next month. 

Narongchai also broke down the costs of fuel adjustment electricity tariff, and pointed to the very high cost of renewable energy – specifically solar energy, which costs Bt10.93 per kilowatt-hour, and wind energy that costs Bt6.43/ kWh – that contribute to the high Ft tariff currently at Bt3.06/kWh.

“People who urge use of more renewable energy, please be informed of the costs as well. Now we’re trying to reduce the subsidy, as the technology has improved and the costs are getting better,” he said. 

Narongchai said he supported renewable energy but if it was too expensive and only helped create “a new-generation of energy billionaires”, it would not be fair to the public.

 

Contributed by Pichaya Changsorn and Petchanet Pratruangkrai