Businesses welcomed the decision by authorities to make a tiny reduction to the power tariff, dropping to 4.70 baht a kilowatt-hour (unit) from 4.77 baht a unit, but they called for more long-term measures to deal with expensive power bills, especially from the next government.
The new tariff rate, scheduled to take effect from May 1 to Aug 31, was proposed on Friday by a panel tasked with calculating the fuel tariff (Ft), a key component of the power tariff.
The resolution is slated to be forwarded for approval by the board of the Energy Regulatory Commission (ERC) on Monday.
Whether the power tariff will decrease depends on various factors, including the price of liquefied natural gas (LNG), which is used as a core fuel for power generation, as well as money to be paid to the Electricity Generating Authority of Thailand (Egat), which recorded a loss of 150 billion baht after subsidising electricity prices between September 2021 and December 2022.
Sanan Angubolkul, chairman of the Thai Chamber of Commerce, said although the tariff reduction is considered insignificant, it is a positive trend for the private sector and the public.
"The private sector wants the government to decide to reduce electricity prices immediately, without using it as an issue to gain votes in the election," he said.
"Everyone in the nation agrees pricey power bills are a problem, and if the problem persists until the next government takes office, it will have a significant impact on the economic recovery."
Isares Rattanadilok na Phuket, vice-chairman of the Federation of Thai Industries, said if the ERC board takes into consideration the business sector's proposal to produce a new estimate of imported LNG prices in the spot market, the power tariff could be further reduced.
"The Ft panel probably focused on reducing the payback period for Egat," said Mr Isares.
To better manage electricity prices in the long term, Mr Sanan called for the establishment of a joint standing committee on energy to allow representatives from the government, private sector and the public to jointly consult and consider together a new structure for the country's electricity rates.
He said a major task for the next government is to address the structural problem of electricity rates across the entire system as Thai entrepreneurs are unable to compete because energy costs are higher here than in neighbouring countries.
CLEAN ENERGY BOOST
La-iad Bungsrithong, board advisor for the Thai Hotels Association (THA), said in addition to the power tariff reduction, the hotel sector demands a subsidy scheme for clean energy to help control power bills over the long run.
Mrs La-iad said businesses should have the option of instalment payments for electricity bills as a surge in costs has led to power bills making up roughly 10% of hotel operations costs, up from an average of 5% in 2019.
She said the government needs to urgently help businesses invest in green technologies to lower costs, such as installing solar panels and energy-saving appliances.
Officials could support entrepreneurs who want to adopt the bio-, circular and green economic model, which also promotes clean technologies for their businesses, said Mrs La-iad, who is also general manager at Ratilanna Riverside Spa Resort Chiang Mai.
She said solar power accounts for only 5% of all energy supply at the resort because of the high investment costs.
Most hotels had to absorb higher energy costs to maintain the same room rates as any increase would affect the number of guests, with the market still fiercely competitive during low season, said Mrs La-iad.
"The government should allow instalment payments for electricity bills. This measure was implemented during the pandemic. It helped us offload the energy cost burden with a three-month instalment payment," she said.
Mrs La-iad said a new government should study the energy industry ecosystem and negotiate with producers to maintain cost efficiency for users over the long run.
