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Thai businesses wish to manufacture energy to counteract rising expenses

According to a survey performed by the Federation of Thai Industries (FTI), the industrial sector in Thailand would prefer to produce its own electricity to offset the rising cost of energy; however, they require government support to make this a reality.

The Office of Energy Regulatory Commission said in August of this year that the fuel adjustment rate for electricity would be hiked to around 0.93 baht per unit commencing in September and continuing through December. The increasing fuel adjustment rate caused the price of electricity to increase from four baht per unit to 4.72 baht per unit. The former unit price was four baht.

For example, a homeowner who consumes approximately 72 units of electricity per month was previously required to pay 264 baht but is now required to pay 313 baht, while a person who consumes approximately 332 units of electricity per month is now required to pay 1,645 baht compared to 1,418 baht previously.

Friday, September 30, 2018, Vice President of the FTI Montri Mahaphrukpong announced that the 21st CEO survey of the federation was now accessible for public consumption. The principal topic of discussion was “The Industrial Perspectives on the Liberalisation of Alternative Energy.”

The questionnaire was distributed to the 220 FTI members, who represent 76 provincial industrial councils and 45 industries across the country.

The poll revealed that the vast majority of industry executives desired to generate their own electricity, and the results indicated that solar energy would be an ideal option for the industrial sector.

The majority of CEOs feel that the government should improve energy liberalization rules to make it easier for the private sector to generate its own energy.

They advocated that the government allow private firms to sell excess power to the government. The business community believes this action would motivate them to generate more electricity, so contributing to the decrease of greenhouse gases.

The CEOs also urged the government to expeditiously establish a centralized registration and authorization office for power generation. This department would be responsible for all process-related tasks.

Participants of the FTI anticipate that the demand for energy will increase by 10% by 2023 due to the recovery of the economy following the pandemic, the increase in the number of international tourists, and the expansion of exports.

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