The Ministry of Industry emphasized the importance of manufacturers seriously embracing renewable energy, highlighting higher electricity bills as a critical factor in bringing firms’ attention to this issue.
The Office of Industrial Economics (OIE) stated that the industrial sector should consider shifting towards renewable energy in order to alleviate the financial burden caused by rising electricity bills. Using renewable energy such as biomass or solar power could be implemented alongside efficient management of electricity usage to lower costs.
OIE Director-General Warawan Chitaroon stated that the government is aware that higher electricity prices will affect businesses, but the Energy Regulatory Commission can only slightly reduce a planned increase in the power tariff which is used to calculate electricity bills, from 20.5% to 13%. The increase in the power tariff, from 4.72 baht per kilowatt-hour (unit) to 5.33 baht per unit, will result in a variety of increased manufacturing costs, depending on the sector.
The fuel tariff (Ft) is a key factor in the power tariff and is determined by the fuel cost for energy generation in the country. Thailand’s Ft is high when compared to neighboring countries, with the OIE reporting that the country’s Ft rate ranks third in ASEAN, behind Singapore and the Philippines.
The Federation of Thai Industries also expressed concerns in regard to the country’s Ft, stressing that high energy prices can deter foreign investments or force manufacturers to cancel existing contracts for business in the country. (NNT)