Under fire Deputy PM Pirapan leads bold energy reforms to cut soaring electricity costs and boost Thailand’s energy security amid party turmoil. Despite political chaos and Western global trends, his plan aims to revive the economy and empower ordinary Thais and the country’s 70,000 factories with affordable power.
Amid deepening economic woes and political turmoil, Thailand is pushing forward with a bold new energy plan. The goal: slash electricity costs and boost national energy security. Driving the initiative is Deputy Prime Minister Pirapan Salirathavibhaga—also Energy Minister—who finds himself under fire as his United Thai Nation Party teeters on the brink of collapse. Yet despite the chaos, Pirapan’s policy signals a rare surge of independent thinking. Alongside moves to liberalise alcohol laws, it defies global trends and puts the interests of ordinary Thais first.
Thailand is facing one of its most difficult economic periods in recent history. A stagnant economy, political infighting and a failed U.S. trade deal have deepened its financial woes. In addition, rising costs and falling investor confidence have created further uncertainty.
However, signs of hope are there to be seen. The government, led by the Pheu Thai Party, is pursuing bold reforms. These efforts aim to modernise key sectors and relieve the burden on ordinary Thais.
One such reform involves liberalising alcohol production and consumption laws. This is seen as a lifeline for small businesses. Entrepreneurs will gain greater freedom to produce and sell alcoholic beverages. As a result, local economies could benefit from increased activity.
Thailand’s government moves to liberalise alcohol laws despite WHO opposition and economic challenges
Notably, this move runs counter to the World Health Organisation’s recent recommendations. The WHO has called for increased alcohol taxes and tighter restrictions. Nevertheless, the Thai government is placing economic revitalisation ahead of global health policy.
Meanwhile, energy reform is becoming a national priority. Deputy Prime Minister and Energy Minister Pirapan Salirathavibhaga is leading efforts to lower electricity costs. This reform could have wide-reaching effects on households, businesses and the broader economy.
Currently, Thailand’s electricity prices are among the highest in Southeast Asia. Yet the country produces much of its own power. This contradiction has raised long-standing questions from the public.
According to Deputy Government Spokesperson Sasikarn Wattanachan, the current system is inefficient and unfair. In many cases, the government is tied to long-term contracts with private producers. These deals often lock in high rates for 20 years or more.
Thailand’s electricity system faces inefficiency and unfair contracts that keep consumer prices high
Moreover, Thailand relies heavily on imported liquefied natural gas (LNG). Since global LNG prices fluctuate, consumers bear the cost. As a result, household electricity bills remain stubbornly high.
To tackle this, Pirapan is pushing for a complete revision of the Power Development Plan (PDP). Importantly, this plan would reduce dependence on private electricity producers. Instead, the Electricity Generating Authority of Thailand (EGAT) would play a larger role.
EGAT is a state-run agency with the capacity to generate affordable electricity. Strengthening its position could help bring down power costs. Moreover, the agency is considered financially stable, which increases public trust.
At the same time, the government is promoting rooftop solar power. A new draft law aims to remove bureaucratic hurdles for solar installation. In the future, citizens may only need to notify authorities instead of securing multiple permits.
New laws and reforms aim to boost state power generation and simplify solar panel installations
This would mark a major shift. Currently, installing solar panels involves time-consuming approvals. The simplified process is designed to encourage widespread adoption.
Furthermore, Pirapan is negotiating directly with Chinese manufacturers. The goal is to lower the price of solar panels for Thai consumers. Currently, a home system can cost ฿150,000 to ฿170,000. Encouragingly, new deals could cut that cost to just ฿85,000 to ฿90,000.
This move could greatly expand access to clean energy. It would also boost energy independence and reduce strain on the national grid.
Importantly, cheaper electricity means more than lower bills. It also supports economic growth. Over 70,000 factories operate in Thailand, all of which require large amounts of power.
Consequently, if production costs fall, businesses can reduce prices. Consumers would then benefit from more affordable goods. In turn, this could help circulate money through the economy.
Cutting electricity costs through solar power and state intervention could reduce factory expenses
Meanwhile, the Ministry of Energy is addressing hidden costs in the current power system. Pirapan has noted that costs are layered like a cake. Each step in the process adds another charge.
Therefore, he emphasised that EGAT should be strengthened to minimise these layers. Additionally, he pointed out that contracts must be restructured to reduce long-term burdens.
Moreover, Pirapan questioned the necessity of having so many private producers. He argued that if EGAT can meet demand, reliance on the private sector should decline.
Another major issue lies in the contract terms. Currently, the government must buy all the power produced by private firms. This rule applies even when demand is low.
For this reason, Pirapan is pushing for legal amendments. These changes would grant the state more flexibility and reduce wasteful spending.
Ministry of Energy tackles hidden costs and calls for contract reform to reduce long-term financial burdens
However, reform will not be easy. The energy system is split across multiple agencies. EGAT falls under the Ministry of Energy. Yet, the Metropolitan Electricity Authority and the Provincial Electricity Authority are controlled by the Ministry of Interior.
This division has complicated coordination. Nonetheless, the government is working to streamline oversight.
Despite political headwinds, Pirapan is pressing forward. His party, the Ruam Thai Sang Chart, is currently facing internal strife. In addition, he is under pressure due to an alleged private shareholding scandal.
Still, many view his energy reform plan as groundbreaking. It marks a major departure from past policies.
For decades, Western nations like the United Kingdom have pursued strict energy regulations. The UK’s Net Zero policies have led to rising prices and growing public discontent.
Thailand’s approach to energy reform focuses on affordability and practicality amid global pressures
In contrast, Thailand’s approach prioritises affordability and practicality. It seeks to strike a balance between sustainability and economic necessity.
While critics may raise concerns about environmental impacts, the government maintains that reforms are essential. According to Mr. Pirapan, energy is a matter of national security. Furthermore, the government believes this shift will alleviate long-standing suffering among citizens.
Energy Minister confirms no rise in electricity prices as government policy aims for cheaper tariffs
Public support will be crucial. These changes affect every level of society. Yet if successful, the benefits could be enormous. Thailand’s economy may be in the doldrums. Nevertheless, the current reforms suggest a willingness to break from convention.
By revising outdated laws, boosting state involvement and embracing solar power, the country is taking steps toward self-reliance. Certainly, while political and economic challenges remain, the road ahead looks more hopeful. The bold reforms of today may well help create a more successful Thailand tomorrow.
Join the Thai News forum, follow Thai Examiner on Facebook here
Receive all our stories as they come out on Telegram here
Follow Thai Examiner here
Further reading:
Energy Minister confirms no rise in electricity prices as government policy aims for cheaper tariffs
Economy weakens with a July current account deficit as new cabinet plans lower electricity costs
Concerns over household debt rising as banks report marginally lower non-performing loans
Thailand preparing for a soft landing as ‘cracks’ open up in the Chinese economy says bank chief
Economic danger signals emerging as politicians wrangle over who will form the next government
Bank of Thailand to tackle household debt in new plan from 2024 which will see higher standards
Politicians skating on thin ice as the economy may not be able to withstand a political stalemate
Debt crisis may be one of the top items on the new cabinet’s agenda as central bank stands ready
Potential hazard lights flashing as kingdom’s auto loans spiral into default with sky-high borrowing
Bank of Thailand governor gives veiled warning to voters on the danger posed by populist policies
Financial markets debt sell-off sending a signal to Thailand before the May 14th General Election
PM warns giveaway policies of some parties may be ‘bad karma’ for the country in the longer run
Economic recovery shaky despite strong foreign tourism as global economic outlook deteriorates
