Bangkok: Suggesting a 3 baht per household electricity subsidy and data center incentives to address ineffective electricity billing, academics have raised concerns over the proposed measures. They argue that the subsidy, set at 3 baht per cubic meter, is overly simplistic and caution against extracting revenue from data centers, as it could deter investors. Instead, they advocate for a comprehensive overhaul of the electricity pricing structure to ensure fairness and sustainability.
According to Thai News Agency, Professor Dr. Prayapol Kumsap, an independent scholar in economics and energy and a former dean at Thammasat University, emphasized that Thailand has never conducted a serious study on restructuring its electricity tariffs. He noted that past adjustments were often driven by immediate costs without considering the broader structure. Dr. Kumsap stressed the importance of a detailed study that encompasses various electricity users and services, including industries, SMEs, large-scale users like data centers, and community electricity management systems. He proposed that while such a study is underway, the government could temporarily adjust electricity rates, with a new tariff structure to be announced upon completion. Dr. Kumsap criticized the current approach of setting blanket rates, arguing that it excludes many types of users, making it inequitable.
Dr. Kumsap also highlighted concerns about cross-subsidy measures, noting the financial state of the Electricity Generating Authority of Thailand (EGAT), which still holds significant debt. He warned that higher electricity rates for data centers could undermine investor confidence, potentially driving them to countries with more favorable energy costs.
The discussion also extended to global oil prices, which are on a downward trend due to a recent agreement between Trump and Iran that facilitates shipping activities. Despite the decline, current prices remain around $75 per barrel, above the $60-70 range seen during the war era. Factors such as landmine clearance and high shipping insurance costs continue to exert upward pressure on prices. It is anticipated that infrastructure repairs, necessary due to war-related damages to refineries and transportation systems, will take 1-2 months to complete, with the full impact becoming evident within a week.
As global oil prices decrease, domestic refineries face potential losses from oil stockpiling. This situation contrasts with the profitable phase when prices were high. The government may need to consider compensating refineries for actual losses, contingent on the refineries' financial data, especially since oil prices have only recently started to decline.