Tengoku
Tengoku British International School, Phuket
The Phuket News Novosti Phuket Khao Phuket

Login | Create Account | Search


Proposed power tariff hike ditched

BANGKOK: A new higher power tariff is to be postponed following an intervention by Prime Minister Prayut Chan-o-cha to curb rising living costs, says a source at the Energy Ministry.

natural-resourceseconomicsRussianUkraine
By Bangkok Post

Tuesday 2 August 2022, 02:30PM


Electricity towers and power lines are seen at Chatuchak station. Photo: Bangkok Post

Electricity towers and power lines are seen at Chatuchak station. Photo: Bangkok Post

The higher tariff was due to be imposed between September and December this year, but now it will not be increased, reports the Bangkok Post.

The new rate, which had been authorised by the Energy Regulatory Commission, was initially scheduled to be announced yesterday (Aug 1), according to the source who requested anonymity.

The new power tariff was earlier expected to rise to B4.72 per kilowatt hour, up from a rate of B4 between May and August. The fuel tariff (Ft), a key element in the power tariff, is expected to rise to B0.93 per kilowatt hour, up from B0.24.

The planned rise was blamed on higher energy prices following sanctions imposed by the United States and its allies on Russia after its invasion of Ukraine in February.

Global crude oil prices have been increasing since late last year when many countries relaxed measures to contain the spread of COVID-19. Demand for oil also increased when Western nations entered the winter period.

A higher power tariff has also resulted from a huge decline in the domestic gas supply from the Gulf of Thailand, causing the country to import more expensive liquefied natural gas.

Gas makes up around 60% of the fuel used to generate electricity in Thailand.

The state-run Electricity Generating Authority of Thailand (Egat) has subsidised the power tariff to help relieve pressure on the cost of living, but this has cost it more than B87 billion.

Last month the government gave Egat permission to borrow B30bn from banks to help it deal with the huge financial burden.

Meanwhile, this week the Energy Policy Administration Committee (Epac) is also expected to raise the price of liquefied petroleum gas (LPG), which is used as cooking gas.

The LPG price will increase to between B393 and B408 per 15-kilogramme standard cylinder in August and September, respectively, permanent secretary for energy Kulit Sombatsiri said. Mr Kulit is a member of Epac.

The increase is part of the government’s efforts to relieve the burden on the state’s Oil Fuel Fund, which is used to subsidise diesel and LPG prices.

The fund has already run up losses of over B166bn.

Comment on this story

* Please login to comment. If you do not have an account please register below by simply entering a username, password and email address. You can still leave your comment below at the same time.

CAPTCHA

Be the first to comment.

 

Have a news tip-off? Click here

 

Phuket community
Ousted Sri Lankan leader to visit city

@Kurt And why are you still staying here if you have so many problems with the government here? ...(Read More)


Pla Wan Corner road safety project to begin

Nothing wrong with that road section. Just people driving in High Speed. Cheaper to set up Speed C...(Read More)


Phuket tourism industry turns to India

Indian tourists become Phuket business entrepreneurs? Great for diversity. But are Thai phuket busi...(Read More)


Ousted Sri Lankan leader to visit city

No humanitarian reasons were brought up by Prayut regarding forcing Myanmar refugees back to Myanmar...(Read More)


Pla Wan Corner road safety project to begin

Seems the repair/construction improvement of the bend hill Patak Road between Chalong and Kata must ...(Read More)


Pla Wan Corner road safety project to begin

Seems mr Vorasait is adicted to speed. Encouraged by 'service of RTP that not demand alcohol tes...(Read More)


Phuket Town businesses welcome Indian tourists

,,, I don't think the Tsunami warning bouys will work that well. Good luck....(Read More)


Phuket Town businesses welcome Indian tourists

"Love Marine Activities", all they've gota do is stay in a hotel on Patong Beach &...(Read More)


Opening hours for entertainment venues to be revised

Maybe they should all close @ 6pm. Far too many swords, guns, knifes & meth amphetamine on Phuke...(Read More)