MONDAY, April 15, 2024
nationthailand

Private sector opposes new fuel tariff for Sept-Dec

Private sector opposes new fuel tariff for Sept-Dec

The private sector is not happy with the electricity cost of 4.45 baht per unit from September to December announced on Thursday by the Energy Regulatory Commission (ERC), saying that positive energy-related factors should have pushed it lower.

The ERC announced a fuel tariff (Ft) of 66.89 satang per unit, which is equivalent to 4.45 baht per unit of electricity for the period September to December.

The move aims to help the Electricity Generating Authority of Thailand (Egat) deal with the debt it has incurred by providing subsidies since 2021.

The ERC reviews the Ft every 4 months in January, May, and September. The electricity cost for the May-August period is set at 4.7 baht per unit.

Isares Rattanadilok, vice chairman of the Federation of Thai Industries (FTI), on Friday expressed his disagreement with the rate, pointing to several positive factors in the energy industry including the lower cost of imported liquefied natural gas (LNG) for electricity generation compared to the ERC’s estimation during the first two adjustments this year.

“This should help further decrease the electricity costs while not affecting Egat’s debts,” he said.

He pointed out that the ERC’s Ft rate is too conservative, while the rate proposed by the Joint Standing Committee on Commerce, Industry and Banking (JSCCIB) during the public hearing period earlier this month is more suited to the current economic situation.

“If the mechanism under the caretaker government continues this way, then the new government must urgently overhaul the system to make way for more progressive approaches,” he said.

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