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Free power criticised

Free power criticised

BUSINESS: Operators are complaining that the free-electricity policy for households consuming less than 90 units a month will cost the industrial sector over B12 billion per year in energy costs.

Friday 30 September 2011, 12:13PM

They are urging the Government to reduce the rate to 50 units a month and to quickly clarify the minimum wage hike policy.

Payungsak Chatutthipol, Chairman of the Federation of Thai Industries (FTI), stated that the policy to waive electricity fees for households consuming no more than 90 units a month will have a severe impact on the industrial sector, as it will cost operators more than B12 billion per year in energy costs, since electricity fees will increase by three to five per cent.

The FTI has urged the Energy Regulatory Commission to cut the initial 90 units per month rate down to 50 to 60 units a month, believing that it will help low-income earners, while suggesting the establishment of funds to help regulate the policy.

The FTI Deputy Chairman Jane Namchaisiri said he disagrees with the free-electricity policy, since it does not promote energy-saving and it should not involve the industrial sector, which uses a large of amount of energy for production and will thus have an effect on business competition.

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