Monday, 28 May 2018

Electricity Generating Authority of Thailand - EGAT - restructuring

Electricity Generating Authority of Thailand (EGAT) State Electricity generating authority 
https://en.wikipedia.org/wiki/Electricity_Generating_Authority_of_Thailand  (Publicly owned) has announced a restructuring of parts of its operations , the story was reported in the Bangkok Post at https://www.bangkokpost.com/business/news/1462606/egat-refocuses-on-innovation  

The article points out a reduction in EGAT's market share from 55% 10 years ago to 36% , also pointing out that IPPs (independent power producers) from a few hundred mega watts (MW) to 3,000 MW 

An interesting point in this article is that Egat , budget for ' resource and development ' remains under spent for 2017 , by 600 million Baht or in other words it spent only 40% of its target on budget on ' resource and development " (an under spend of 25.1 million Singapore Dollars. 

This raises the questions, That if EGAT is to take a more serious commercial management focus , does this mean that this excess (under spend) will returned to share holders (ie the Government ) in the form of a dividend or under spend in budget , surplus, to Government ?  Does the under spend arise due to the electricity market being filled by IPPs ? Will the consumer pay more ? Would the consumer have been better off if EGAT had spent their budget on public sector construction of electricity generation and public sector operation  and public accountability ? 

And that Egat is moving to follow a natural attrition frame work (non replacement on departure of staff) by not recruiting 1,500 people to replace retirements this year and achieve an overall reduction in staff from 22, 000 to 15, 000 by 2021 

PSI Colleagues in the Electricity Industry would be familiar with these steps including - 
1) The role of IPPs or third party generators (eg electricity at a much higher prices for consumers) 
2) The reduction in a state electricity business of its role and leaving the supply market open to IPPs or third parties 
3) Under spend of budget and return to Government share holder (including the above paragraph questions) 
4) Is this privatistion of Electricity in Thailand, piece by piece? 
5) Will the public be disadvantaged, just like elsewhere in the world,  through privatisation of an essential service the "Electricity Industry" . 

PSI AP Utilities and LG Network , make these comments and ask the questions , arising from the original article published at link:  https://www.bangkokpost.com/business/news/1462606/egat-refocuses-on-innovation

The Bangkok Post web page asks -  " Please credit and share this article with others using this link: https://www.bangkokpost.com/business/news/1462606/egat-refocuses-on-innovation "