Higher FT rate increases burden on industries

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BANGKOK, 1 May 2014 – The Federation of Thai Industries (FTI) has indicated that an increase of the Fuel Tariff (FT) rate by 10 Satang/unit will affect electrical power costs of the industrial sector and warned of its repercussions on energy-intensive industries.

The Energy Regulatory Commission on Wednesday agreed to increase the FT rate for May – August 2014 by 10 Satang/unit following forecasts of higher electricity demand by 2.8% compared to the same period last year and higher fuel prices. However, there are speculations that the FT rate from September – December 2014 might be unchanged or decreased since fuel prices and exchange rates are likely to be better.

Vice President of the FTI Wanlop Witnakorn said the higher FTI would definitely affect entrepreneurs’ costs of production, especially energy-intensive industries such as construction. He suggested that they adjust themselves accordingly and try to cut costs.