The Joint Standing Committee on Commerce, Industry, and Banking (JSCCIB) has urged Prime Minister Gen Prayut Chan-o-cha to take action to reduce the financial burden on enterprises as electricity bills grow.
The Energy Regulatory Commission (ERC) said last week that the power cost for companies will be increased by 20.5% to 5.69 baht per kilowatt-hour (unit), up from 4.69 baht per unit previously. The decision alarmed the Federation of Thai Industries (FTI), causing the JSCCIB to petition the prime minister.
According to the Electricity Regulatory Commission (ERC), the new power rate is intended to assist the state-owned Electricity Generating Authority of Thailand (EGAT) in dealing with its balance sheet after incurring 125 billion baht in losses from assisting the government with the electricity price ceiling.
The JSCCIB requests that the government form a joint committee made up of state and private sector representatives to address business issues. According to the agency, rising energy prices may have a detrimental influence on Thailand’s competitiveness, resulting in a decrease in foreign direct investment from multinational firms.
The FTI said last week that if the government raises the commercial power rate, its members will be obliged to boost product prices by 5 to 12%.