In the News

Electricity bills to rise by 4 satang per unit

The Energy Regulatory Commission (ERC) announced an increase in the fuel adjustment tariff (Ft) by 4.04 satang per unit of electricity in the January-April period.

As a result, during the period the electricity price will rise to Bt3.76 per unit from Bt3.72.

ERC chairman Direk Lawansiri said that based on true costs, the Ft rate should jump by 13.57 satang per unit, but the commission decided keep the increase at 4.04 satang to ease the burden on consumers.

The proceeds from the Ft rise will be used to help pay down the Electricity Generating Authority of Thailand's debts. They are targeted to be reduced to Bt5.13 billion by late April and fully paid off by the end of the year.

Reinsurers don't pay

The Thai General Insurance Association will discuss with its members next month the refusal of some reinsurers to pay claims to their members after the flood disaster in 2011.

The association is collecting data to find out how many of its members were experiencing this problem, said Puttipong Danboonsute, chairman of its legal and compliance committee.

The association will also have to track down those reinsurers that had declined to pay up and had pulled out of the Thai market. But he does not believe that the problem will be completely solved this year.

Association president Jiraphant Asvatanakul said insurance firms had paid 99 per cent of their customers' flood claims. Payments are expected to be completed this year. The claims totalled Bt480 billion, of which Bt100 billion has yet to be paid.