Competition Law & Sectoral Regulation in Thai Energy: Issues & Development Plan, Slides of Competition Law and Policy

Download Competition Law & Sectoral Regulation in Thai Energy: Issues & Development Plan and more Slides Competition Law and Policy in PDF only on Docsity! Competition law and sectoral regulation on Thai energy sector: A review and the forward development plan Docsity.com Synopsis of the presentation 1. Thai energy sectors : Liberalisation and market reform 2. Problems on Thai Competition law and Energy sector regulation 3. Plan for reform on competition law and sectoral regulation: the short and long term proposal Docsity.com Master plan electricity liberalization I: Reform of Electricity Supply Industry (ESI) II: Using EGAT as the primary power purchaser (1998-2001) III: EGAT as the central supplier of power, with gradual introduction of competition. (2001- 2003) IV: Competitive wholesale power pool / introduction of retail competition (From 2003 onward) Docsity.com Cancelation of the Master Plan  Taksin’s government tried to liberalise electricity without a structural change  The plan created uncompetitive electricity market and deriving state monopoly market power to privatised EGAT  The plan was then challenged by the Federation of Thai consumers in the Supreme Administrative court case Docsity.com Liberalisation on oil and gas sector  NEPO also proposed plans to liberalise gas by deregulation of the gas sectors and privatisation of the Petroleum Authority of Thailand (PTT)  The set framework was mainly focus on the open and disintegration of gas pipeline and distribution Docsity.com Supreme Administrative Court decisions  EGAT corporatisation case  Revocation of EGAT corporatisation • Reasons - there is the possibility on uncompetitive market condition after the EGAT corporatisation  Inequality on business competition  PTT corporatisation case  Not necessary to revoke the Royal decrees on corporatisation of PTT  Separation of state assets of land and gas pipelines from PTT Plc  Cancel transferring of the state authoritative power to PTT Plc Docsity.com Current energy market structure EGAT –monopoly of power generator MEA- Metropolitan and suburban distributors and retailer PAE-Provincial distributor and retailer PTT–monopoly oil and gas Monopoly gas supply Gas is the major sources of electricity generation Docsity.com 12 12 Thai Electricity generation in 2008 Gas 70.0 % Diesel 0.2 % Import from Malaysia 0.3 % Import from Laos 1.6% Hydro 4.7% Lignite 12.6% Oil 1.0% Import coal 8.2% Renewable energy 1.4% Source: EPPO, 'Summary of the Conference Proceeding on the Thai electricity Development Plan' (Paper presented at the Thai Electricity Development Plan 2007-2020 (Translated from Thai language) 2007). Docsity.com 2. Problems on Thai Competition law and Energy sector regulation Thai competition law  Thai Energy sector regulation Docsity.com Problems on Thai competition law Institution problems on Thai competition law  Influence from government and business lobby  Financial constraint  Lack of expert  Lack of coordination with sectoral regulation Docsity.com Problems on Thai competition law( cont) The Competition law exemption and limited role on energy sector  EGAT, MEA, PEA, and PTT, Pcl are SOEs Docsity.com Problems on Thai Energy regulation (cont)  Conflict between supporting SOEs and promoting market competition  section 7(3) of Energy Industry Act states that ERC has to promote competition in the energy industry and prevent abusive use of dominance in the energy industry  section 8(5)states that ERC has to support and maintain SOEs as monopoly enterprises Docsity.com Problems on Thai Energy regulation ( cont) No access to essential facilities in the Energy Act Docsity.com 3. Plan for reform on competition law and sectoral regulation Short term plans  ERC action on market competition  Build public recognition on competition law  Advocacy between competition law and the sector regulation Docsity.com