The hidden street lighting charge in every monthly household electricity bill, which is the currently under in the public spotlight, has actually been quietly and secretly imposed for almost four decades without the knowledge of the public or even previous and current ministers, according to Energy Minister Akanat Promphan.
According to Deputy Transport Minister Siripong Angkasakulkiat, the hidden street lighting charge can be traced back to a Cabinet resolution passed on June 9, 1987, when Thailand had a fully centralised system of administration, devoid of local administrative bodies, such as the Tambon (sub-district) Administrative Organisations (TAO), and local taxes.
At the time, the state wanted to improve road safety and accommodate urban expansion through the installation of street lighting. This resulted in a system of reciprocity between state agencies.
The Highways Department, under the Transport Ministry, allowed the Provincial Electricity Authority (PEA) to install utility poles along highways, free of land usage charges, to provide street lighting, estimated to use about 10% of the electricity consumed in communities. This facility was, eventually, expanded to cover urban areas nationwide.
Over the years, however, the social context has changed in tandem with decentralisation. Local administrative organisations, such as TAOs and municipalities, have now raise revenue though local taxes.
Both the Metropolitan Electricity Authority (MEA) and the PEA felt they could no longer bear the cost of providing free street lighting to communities and that free lighting would not encourage energy conservation.
Then came the idea of charging communities for street lighting and hiding the charge in the monthly electricity bill of each household to avoid a public backlash.
Each monthly electricity bill consists the base tariff, which is based on a progressive rate, the charge for the use of electricity meters, the Fuel Tariff (FT), which is adjusted every four months depending on the price of LNG, the main fuel used in electricity generation in Thailand, and VAT of 3.95 baht per unit of electricity (power bills are zero rated from May until August).
According to the deputy transport minister, the street lighting charge is hidden in the FT, which is categorised as a non-technical loss. The charge ranges from 2-2.5% of the amount of electricity consumed nationwide, which is translated into a charge of 10-15 satang per unit added to household electricity bills, or about 20 billion baht per annum.
So, a household which consumes about 400 units of power per month will pay between 40 and 60 baht for street lighting.
The energy ministry has proposed that the Highways Department and local administrative organisations bear the costs of installing separate meters for street lighting using their own funding, under the concept of direct accountability.
Bulbs in all street lighting should be changed to LEDs to conserve energy and more solar panels should be installed.
