Prime Minister Paetongtarn Shinawatra has suggested that the government may work toward reducing household electricity prices, following remarks by her father, former Prime Minister Thaksin Shinawatra. Thaksin, speaking at a rally in Chiang Rai on January 7, 2025, hinted that the cost could be cut to 3.70 baht per unit from the current 4.15 baht per unit by the end of this year. This potential reduction is positioned as a key strategy to alleviate the financial burden on households in the face of rising living expenses.
In her comments, Ms. Paetongtarn confirmed that lowering electricity prices was one of the government’s primary objectives. “Bringing household electricity costs down to 3.70 baht per unit is the target the government wants to achieve,” she stated. “This is one of our priorities, and collaboration from all sides will be crucial for the country.” When asked how the government would achieve this goal, she emphasized the need for discussions with relevant stakeholders to ensure a solution.
Thaksin, in his remarks during the Chiang Rai rally, expressed confidence that the price reduction to 3.70 baht per unit was achievable, noting that it would represent an 11% decrease from the current rate. He also indicated that efforts would be made to reduce the prices of other essential items such as animal feed, fertilizer, and medicine. His statements, part of his broader political agenda, reflect the ruling Pheu Thai Party’s focus on addressing the cost of living challenges faced by citizens.
Thaksin also addressed the need for dismantling monopolies in various sectors, which he argued would help reduce living costs and increase opportunities for the public. He called for such reforms to be implemented by 2025. During his discussions with Energy Minister Pirapan Salirathavibhaga, Thaksin suggested that a reduction in electricity prices from 4.15 baht per unit was possible, with the ideal price set at 3.50 baht per unit.
The push for lower energy prices has garnered political attention, particularly due to resistance from certain factions within the ruling coalition. Energy Minister Pirapan has faced opposition from the United Thai Nation (UTN) Party, with some of its members, including energy business leaders, reportedly critical of moves to reduce energy costs. Despite this, Pirapan’s efforts to cut energy prices have garnered public support, reflecting a rise in popularity for both him and his party.
Khunying Sudarat Keyuraphan, leader of the Thai Sang Thai Party, expressed support for the proposed price reduction but stressed the need for structural reforms in the energy sector. She urged the government to avoid relying on temporary subsidies and to take a more courageous approach to dismantle monopolies that contribute to high electricity and fuel costs.
Former Democrat Party MP Thepthai Senpong, in a Facebook post, raised concerns that the electricity price reduction was part of a political strategy to gain voter support ahead of upcoming elections. He argued that the Pheu Thai Party had not taken substantial action on high electricity prices until Pirapan’s announcement about restructuring energy costs, which had garnered public approval.
As political debates surrounding energy prices continue to unfold, the government’s next steps will likely involve navigating internal party dynamics and negotiating with various stakeholders to achieve its ambitious target for reducing household electricity costs.
