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As candidates promise to lower power bills to win public support, economists warn that broad electricity subsidies could cause long-term harm. (Photo: iStock)
With Thailand’s general election less than a month away, electricity prices have taken center stage. As candidates promise to lower power bills to win public support, economists warn that broad electricity subsidies could slow the country’s energy transition and ignite a fiscal crisis.
"The universal subsidies are not good for long-term economic growth," said Praipol Koomsup, an economist at Thammasat University.
The push for electricity price caps reflects politicians’ efforts to respond to a subdued economic outlook. Thailand’s economy is expected to grow by only 1.5 to 1.6% in 2026, the weakest in Southeast Asia, according to Kriengkrai Thiennukul, chairman of the Federation of Thai Industries.
