Rising Electricity Bills in Thailand: Challenges and Opportunities for Food Producers

02.05.2023
Rising Electricity Bills in Thailand: Challenges and Opportunities for Food Producers

Since the beginning of the year, food production in Thailand has seen a 2.5% to 5% increase in production costs due to higher electricity bills. Vishit Limleucha, vice president of the Thai Chamber of Commerce and Industry, said that while electricity costs accounted for 5% to 10% of total food production costs last year, this figure has risen to 7.5% this year - 15%.

As a result, some operators have begun looking at ways to cut their electricity bills, including installing solar panels on rooftops and turning off unnecessary devices.

In 2021, the average cost of electricity was 3.6 baht per unit, and in 2022 it increased to 4.69 baht per unit. In the first four months of this year, electricity bills continued to rise and reached 5.33 baht per unit. However, Limleucha is confident that the situation will improve after the Energy Regulatory Commission (ERC) agreed last month to reduce the cost of electricity to 4.7 baht per unit as part of the May adjustment of the fuel tariff (Ft). The ERC reviews Ft every 4 months, in January, May and September.

Limleuch said food exporters have not raised prices this year despite rising costs, as they had already raised their prices last year to offset higher transportation costs.