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After the electricity bill has been raised and lowered throughout 2023, recently, the ERC decided to raise the price of electricity in January-April to an average of 4.68 baht per unit. After opening to receive opinions for three alternatives to reduce the impact on the public, some adjustments had to be made to reflect the cost.
Back on September 13, 2013, Prime Minister Srettha Thavisin resolved to freeze the electricity bill from 4.45 baht per unit in the September to December 2023 bill to 4.10 baht per unit. Later on September 18, 2023, the Ministry of Energy was able to negotiate to lower the electricity bill to 3.99 baht per unit.
Lately, on December 2, 2023, the Energy Regulatory Commission (ERC) resolved to adjust the retail sales Ft from January to April 2024 by 89.55 satang per unit. As a result, the average electricity rate increases by 69.07 satangs per unit, combined with the base electricity rate of 3.78 baht/unit, therefore, the total electricity bill of all types will be 4.68 baht/unit (excluding VAT).
The ERC gave out the reason for the adjustment of electricity prices from September to December of the average at 3.99 baht per unit to 4.68 baht per unit (excluding value tax) to reflect higher fuel costs and return the cost that EGAT takes some of the burden to make the EGAT liquidity to operate and repay loans as much as necessary.
In addition, the ERC would like to invite the people who use electricity to save money by simply changing their electricity usage habits as follow; ‘Unplug’ electricity appliances to reduce the energy usage, ‘Switch off’ lights when done using, ‘Adjust’ the temperature of air conditioners to 26 degrees celsius, ‘Change’ to use electricity appliances with Label No.5 Certification, and ‘Plant’ trees to be shades for houses. These can help reduce imports of expensive fuel to reduce the burden of their own living expenses and the overall burden of the nation.
According to the figures and declaration of the National Economic and Social Development Council (NESDC), GDP growth in the third quarter of 2023 was only 1.5% which is lower than expected, and different from the first and the second quarters at 1.8% and 2.6% respectively. It shows that the Thai economy is not recovering well.
The hike in electricity rates in early 2024 will affect the general public, resulting in lower purchasing power, which will cause the economy to slow down, which may lead to lower income for workers, resulting in a worsening cycle. In addition, most businesses use electricity as their main production factor. Rising electricity bills will result in higher production costs and lowering competitiveness of the business sector, thus slowing the economy.
