A senior Energy Ministry official has touted the proposed
privatization of the Electricity Generating Authority of Thailand (EGAT) as
the only mean to strengthen the organization, and enable it to participate
in the government’s plan of transforming Thailand into a regional energy
hub.
Speaking at a recent public hearing on the EGAT
privatization, Viset Choopiban, assistant to the energy minister, said that
the privatization would allow EGAT to mobilize its own capital for
investment projects, while reducing the state’s burden as a guarantor of
loans.
Nonetheless, he stressed that the privatized EGAT would
continue to work in accordance with government policies, in particular the
government’s strategy of transforming Thailand into a regional centre for
the energy trade. At the same time, he said, the privatized EGAT would serve
to promote the government’s strategy of boosting economies and societies
of neighboring countries, including the Association of Southeast Asian
Nations (ASEAN) Power Grid Project for regional resource and energy pooling.
As part of the ASEAN project, countries in the 10-member
regional grouping will promote ‘national champions’ in electricity
operations, which will act as regional players in the electricity industry.
The government also hopes to encourage Thai electricity
companies to invest in neighboring countries, which, in turn, is hoped to
lead to greater economic development, a reduction in social problems, and
the elimination of economic migration to Thailand.
Viset said, “It is vital that Thailand revamp its
electricity operations in order to maintain costs at a low level and to
ensure that the system remained stable. The new system would operate on an
enhanced single buyer model (ESB), with agencies to supervise and maintain
the rules for electricity providers; thus, creating a clear separation
between providers and supervisors. This would serve to enhance competition
in the electricity production system, as well as encourage companies to
boost their efficiency and develop their operations.”
Wiset added that a privatized EGAT would also lead to
development and transparency in accordance with international standards,
while ensuring that the electricity sector remained flexible in line with
the prevailing business climate. (TNA)