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CAP ON HIKE TO FUEL ADUSTMENT TARIFF



The Energy Regulatory Commission will limit the hike to the fuel adjustment tariff to only 5 satang per electricity unit for the January-April period.

"Earlier, the commission planned to increase the Ft by 6.99 satang to 60.99 satang, but this will push the impact onto consumers, so we decided to raise the Ft by only 5 satang," ERC chairman Direk Lavansiri said yesterday.

The decision was based on several factors. Electricity demand has expanded by 2.2 per cent to 58.74 million units over the same period last year, while gas supply from Myanmar and the Gulf of Thailand will be cut.

POLICY ON RISKS SOUGHT

In a circular to commercial banks, the Bank of Thailand asked them to acknowledge its policy on risk management concerning foreign-exchange settlement after cross-border trade rose.

The policy will go into effect on January 1.

Increasing cross-border trade has heightened the forex settlement risk that could arise from trade at different periods and lead to damage to financial institutions and the overall financial system, the central bank said.

Banks are required to understand international directions for foreign exchange settlement risk and apply them, considering the number of transactions, complexity and risk.


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