Thai power price hike to hurt business, competitiveness

Thailand’s decision to hike electricity prices by 20per cent in early 2023 will push up inflation and undermine the country’s competitiveness as the economy recovers gradually from the pandemic, a leading joint business group said on Friday.

Southeast Asia’s second-largest economy’s recovery has lagged that of others in the region as the crucial tourism sector only started to rebound this year, reports Reuters.

From January to April, the power tariff for businesses will increase by 20.5per cent to 5.69 baht ($0.1640) per unit, with that of households remaining at 4.72 baht, the Energy Regulatory Commission said earlier, citing higher fuel costs.

The move will reduce Thailand’s competitiveness and attractiveness as power costs for businesses will be 50-120per cent higher than those in countries like Vietnam and Indonesia, said Roongrote Rangsiyopash, president of industrial conglomerate SCG.