Thai government eyes power subsidy for low-income earners

Bangkok – The Thai government plans to allocate more than 11 billion THB (over 320 million USD) to subsidise low-income earners with their power bills for four months, starting in May.

However, the matter must be sent to the Election Commission (EC) for consideration before a final decision is made, local media reported.

Speaking after a cabinet meeting on April 25, Caretaker Prime Minister Prayut Chan-o-cha said the government is trying its best to address the problem of costly electricity bills for households.

Under Section 169 of the Constitution, a budget allocation for emergencies approved by an outgoing cabinet after a House dissolution must be endorsed by the poll agency first.

Earlier, the government has already provided a 3.2-billion-THB subsidy for vulnerable groups – such as low-income earners and households that consume fewer than 300 units of electricity per month from January to April. They also get a cut-off from the fuel tariff before the value added tax calculation.

According to government spokesman Anucha Burapachaisri, the subsidy plan will apply to households that consume less than 300 units per month. Those that consume 1-150 units a month will get a reduction of 92.04 satang (0.026 USD) per unit while those using 151-300 units will be given a reduction of 67.04 satang per unit, he said.

About 7.6 billion THB will be drawn from the 2023 budget for emergency purposes to finance the plan and about 18.36 million households will benefit from the scheme.

The government also plans to give a reduction of 150 THB before VAT to households using no more than 500 units per month, which is valid for May only.

Anucha said more than 23.4 million households will benefit with funds of no more than 3.5 billion THB from the 2023 budget.

Thailand is expected to face the harsh impact of the El Niño phenomenon around the middle of June, although this year’s summer season is predicted to end by the middle of May. This will lead to severe drought conditions, according to the country’s Meteorological Department (MD).

Informa Markets Thailand has organised a series of activities to create an understanding of the potential of food production in Thailand in the form of the BCG economic model.