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Electricity Generating Authority of Thailand (EGAT) – the power producer and supplier, selling electricity via high-voltage transmission lines to the Metropolitan Electricity Authority and the Provincial Electricity Authority.
Metropolitan Electricity Authority (MEA) – the power distributor for consumers in Bangkok, Nonthaburi and Samut Prakarn provinces. Provincial Electricity Authority (PEA) – the power distributor for consumers in the remaining areas of the country. Following the above boundaries of responsibility, consumers in the MEA service areas, having no other alternatives, have to buy electricity only from the MEA.
The cabinet resolutions of 25 July 2000 and 3 October 2000 approved the proposed plan for the ESI reform and the power pool establishment, together with the implementation action plans to this effect. This report aims to present facts and rationale for the restructuring and privatization of the ESI. In addition, much progress has been achieved with regard to the establishment of the energy industry regulation framework, which is essential for the reform of state enterprises in the energy sector. Currently, most of the generating systems and all transmission systems are operated by the Electricity Generating Authority of Thailand (EGAT). From the mentioned ESI structure, it can be said that almost all ESI activities are handled by only three main agencies, namely EGAT, MEA and PEA. Each power utility wishes that the least interruptions occur in its power system, or that, if an interruption does occur, it will last for as shortest time as possible. Since the ESI is a monopoly in nature, it is necessary that the government regulate the electricity tariffs. The cabinet resolution of 2 November 1999 concurred with the NEPC’s resolution on the customer service standards of the distribution utilities, i.e. Guaranteed Standards, involving the supply quality, time to connect new customers, time to respond to customers’ requests and compliance to the service conditions, and reconnection of supply in case of having been disconnected.
The National Energy Policy Council (NEPC) and NEPO have the authority to approve the power utilities’ proposals regarding technical standards and customer service standards. NEPO will monitor the audit to be carried out by a consultant company as regards the utilities’ investment plans whether they are in line with the action plans.
NEPO will monitor the survey to be carried out annually by a consultant company on customers' satisfaction of the utilities’ services. The size of the organization is one factor to be taken into account when considering the lack of organizational efficiency. Privatization of state enterprises will bring about more efficiency of the organizations and reduce duplicated work procedures while staff members will be awarded according to their performance merits. Power Producers (SPPs), according to which a maximum capacity to be sold by each SPP to EGAT is 90 MW.
The Electricity Generating Company (EGCO) was formed in May 1992 by purchasing the 1,200-MW Rayong Combined Cycle Power Plant and, later, Khanom Power Plant (150-MW Thermal and 600-MW Combined Cycle) from EGAT. After the floatation of Thai Baht in July 1997, the government amended requirements and conditions for SPPs. At present, purchase of power from generation projects using non-conventional energy, waste or residues as fuel is still ongoing under both firm and non-firm contracts without limit on the purchase volume or period. Furthermore, a project has been initiated under the government’s Energy Conservation Promotion Fund to promote SPPs using non-conventional energy, waste or residues as fuel. An Independent Power Producer (IPP) is a power producer in the private sector, with a large generating capacity, using commercial energy (excluding nuclear) as fuel, such as natural gas, coal (both indigenous and imported) and orimulsion.
EGAT has signed power purchase agreements (PPAs) with seven IPP projects, with a total capacity of 5,944 MW. With regard to the progress of projects that have not yet been in operation, the Bowin Power Project has already acquired loans and is currently being carried out as planned. The cabinet approved the revised plan for capital raising from the private sector for Ratchaburi Power Plant Complex on 30 November 1999.
With regard to the capital raising approach, Ratchaburi Electricity Generating Holding Public Co., Ltd. EGAT’s employees since this power plant complex is newly established and hence no permanent staff members have been posted there yet. On 4 June 1993 the Royal Thai Government and the Lao PDR Government jointly signed a Memorandum of Understanding (MOU) on the Cooperation in Power Development in the Lao PDR to sale 1,500 MW of electricity to Thailand by the year 2000. 19 June 1996, the second MOU was co-signed by the two governments to increase the purchase to 3,000 MW by the year 2006. However, for the Lignite Hongsa project, the Lao government has urged for exceptional consideration for Thailand to receive the power supply from the project by December 2006, together with those in Group 1.
On 4 July 1997, the governments of Thailand and the Union of Myanmar co-signed an MOU on Power Purchase from the Union of Myanmar.
Tasang Project, with an installed capacity of 3,300 MW and the transmission line routing via Mai Aye district, Chiang Mai province.
Kanbauk Project, with an installed capacity of 1,500 MW and the transmission line routing via Muang district (Ban Huay Nam Khao), Kanchanaburi province.
However, at present there is a serious power shortage in Myanmar, and the Committee for the Implementation of Power Export of the Union of Myanmar has expressed the wish to buy 100-150 MW of electricity from Thailand. On 12 November 1998, the Minister to the Prime Minister’s Office of the Thai government and the President of the State Power Corporation of China (Mr.
To date, the Thai and Chinese Power Purchase Committees have negotiated the investment in the construction of Jing Hong Hydropower Project. 30% consists of the State Power Corporation of China (SP), the Yunnan Electric Power Group Co., Ltd. On 3 February 2000 the governments of Thailand and Cambodia co-signed an Agreement on the Power Sector Cooperation Program. In the short term, Thailand will sell approximately 20-30 MW of electricity to Cambodia in the provinces of Banteuy Meanchey, Siem Riep, Battambang and Koh Kong.
The restructuring and privatization of the ESI in Thailand has systematically been implemented over a number of years.
To comply with this resolution, EGAT’s thermal power plants would be separated into business units (BUs) and then corporatized, registered and listed on the Stock Exchange of Thailand (SET).
Subsequently, on 19 October 1999 the cabinet approved the guideline on the establishment of the Independent Regulatory Body, as per the resolution of the State Enterprise Policy Commission (SEPC). Under the ESI reform plan being now implemented, the structure of the ESI will allow greater competition in the industry and, simultaneously, encourage the private sector investment and shareholding in the power industry. The above-mentioned approach of the ESI reform will bring about more efficiency of the overall industry operation and will bring down electricity prices compared with those under the former monopolistic structure. Capital raising from the private sector has been implemented through sale of shares of Rayong and Khanom Power Plants (later transformed into Electricity Generating Public Co., Ltd. The ESI restructuring at this level has no direct impact on the general public since most power consumers still have to buy electricity from the MEA or PEA. Several obstacles have been encountered in the attempt to corporatize the three power utilities. The guidelines provided in the Master Plan are only the general framework to determine the scope and direction of the implementation. At this stage, the draft of the legislation on the establishment of an independent regulatory body in the energy sector, together with related rules and regulations under the law, including the Market Rules for the Power Pool, will be developed.


Preparation for the establishment of an independent regulatory body in the power sector is under way.
Non-core service businesses of the MEA will be corporatized as wholly owned subsidiaries and then the MEA’s shareholding will gradually be reduced. A transparent mechanism for funding subsidies will be adopted to place the MEA, PEA and new operators on a level playing field. All internal business functions of EGAT will be transformed into business units, with distinct operation and accounting separation.
To implement energy policies of the government, such as fuel diversity and maintenance of adequate competition among GenCos, regulation on the power generation sector may be required. During this stage, sale of EGAT’s shares in PowerGen 1 and PowerGen 2 in the Stock Exchange of Thailand will commence to increase the general public’s shareholding.
The Independent System Operator (ISO) will be responsible for the security of the power system. Regulated Electricity Delivery Companies (REDCos), the future form of the MEA and PEA, will be responsible for power distribution within their respective customer franchise areas. Independent Regulator will regulate the criteria for distribution services and charges for delivery-related services. At this stage, EGAT remains a state enterprise, responsible for the transmission system and hydro power plants, with shares in some power generation companies and other related businesses. A power pool shall be established as an independent entity, separated from EGAT, comprising the System Operator (SO), Market Operator (MO) and Settlement Administrator (SA). The Independent Regulator will have an important role in regulating natural monopoly businesses and in promoting real competition in competitive activities, i.e. In the power generation sector, there will be a number of generators, including power plants that will be split off from EGAT, participating in power trade bidding in the Power Pool. The structure of the ESI and that of the Power Pool have to properly accommodate both supply and distribution functions to consumers.
Under the above process of power supply and distribution, final consumers will pay for their electricity to a retail service provider who usually buys electricity from generators through a combination of contract trading and spot trading. According to the current ESI operation, the MEA and PEA act as retail service providers and operate the low-voltage distribution systems whereas EGAT acts as a generator and operates the high-voltage transmission grid.
Considering the given ESI structure, we may identify the entities that perform the illustrated functions, as shown in Figure 6. Under the above structure, Traders will negotiate and carry out the trading of contracts that were signed between EGAT and Independent Power Producers. Given the basic functions and various functional entities concerned in the ESI, the recommended future ESI structure, as from 2003 onwards, can be illustrated in Figure 7. Under the recommended structure, SupplyCo and DisCo functions are combined in a Regulated Electricity Delivery Company (REDCo) which is regulated by the Regulator.
The GridCo owns, operates and carries out maintenance work of grid facilities under a contract made with the ISO.
The recommended structure provides power consumers with options pertaining to retail services. RetailCo to provide risk-management against the fluctuating pool prices and other value-added services.
On the generation side, generation companies (GenCos) will compete in the bidding of physical electricity prices in the Power Pool. From the foregoing explanation, functional entities involved in the Power Pool can be categorized into regulated entities and competitive entities. The Power Pool design as recommended for Thailand by the consultant team is a “Voluntary Net Pool.” However, the rules and regulations governing the pool operations must be mandatory for all market participants. A Power Pool is not only the focal place for power trade among generators and buyers but also a pool of information related to competition. The ISO will be the managing center of the Power Pool operation and will determine power purchasing prices in the Power Pool (the pool prices). Being the driving mechanism of the power system management, for example, the power dispatch instructions according to the economic merits, giving priority to the power plant with the lowest price bid. The market operation will be in the form of both forward market and real time operation, which can be on an hourly or a half-hourly basis.
Prior to the hour of real time operations, the GridCo will inform the ISO of the expected condition of the grid system prior to the actual dispatch.
At the real-time spot market, the GridCo, GenCos and Retailers will report the most updated information on the system conditions and forecasted demand to the ISO.
The MO will determine the market price for each particular hour and notify the SA and market participants of the purchase quantities. Under the Power Pool system, generators with low efficiency will not be able to compete with others in the bidding and hence will not get dispatched. Power Pool and promoting power purchase from a large number of retailers will intensify the market competition. The generators will supply electricity to the buyers at the amount specified in the bilateral contracts and there is no need to bid their prices other than a zero price in the Power Pool. Another concept favors the combination of the GridCo and SO functions under a Transmission Company (TransCo), as currently implemented in England and Wales of the UK, Norway and New Zealand.
Separating the ISO to be an independent entity will create confidence that no biased decisions are made with respect to the operations and planning. Uganda Electricity Distribution Company Limited (UEDCL) is a limited liability company incorporated in Uganda under the Companies Act and started operations on 1st April 2001. The UEDCL, one of the successors of the Uganda electricity board is the owner of the electricity distribution network up to 33KV. Gateway Technologies Limited Gateway has a proven record of successful Design and Implementation of Management Information Systems for Government Agencies, Commercial Enterprises and International Agencies. We have been very impressed with Gateway’s ability to quickly understand our eCommerce business, key challenges, and what we are hoping to achieve with the project. Empowering Bangladesh by expanding the companyA?a‚¬a„?s power generation capacity to meet the growing demand of the country through efficient and effective management of facilities and acquisition of capabilities for providing quality electricity. To become the leader in power generation in Bangladesh in line with the government's target to provide electricity to all. This agency was created in the hope of promoting and stabilizing employment and purchasing power.
EGAT will generate and supply electricity to the MEA and PEA for further distribution to consumers. Under the new ESI structure, it is essential to have duties, responsibility and a mechanism well defined in order to further develop and improve the supply and service quality.
The utilities will have to compensate affected customers in case the guaranteed standards cannot be met; the fine is ranged between Baht 50–2,000, as the case may be.
EGAT, MEA and PEA, have effectively performed their duties in supplying electricity to meet the domestic demand.
EGAT, MEA and PEA) can acquire loans at a lower interest rate when compared with the private sector’s transactions.
As a result, the performance of the organization is usually delayed due to the bureaucratic process.


Thus, it can be said that the policy on the sale of shares to strategic investors has been successfully implemented and the objectives of the sale have been achieved. As of October 2000, 41 SPP projects have already dispatched electricity to the EGAT system, with a total offered sale of 1,614 MW. The total generating capacity to be subsidized under this project is 300 MW at the maximum. For the project of Eastern Power, the outcome of the public hearing on the project is being awaited. In addition, the prices of power purchase from IPPs will be determined by competitive bidding, and IPPs are apparently able to generate power at a lower generation cost when compared with that of EGAT. Then, an IPO was undertaken by listing all shares of the company on the Stock Exchange of Thailand, as planned. The revenue pursuant to the contract has already included all costs and dividend yield for shareholders.
Nam Theun 2, Nam Nguem 2, and Nam Nguem 3, with a total capacity of 1,903 MW at the delivery point by December 2006. Lignite Hongsa, Sekaman 1 and Sepian-Se Nam Noi, with a total capacity of 1,380 MW at the delivery point by March 2008. This is to ensure that Thailand’s reserve capacity will not exceed the demand during the period. Currently, drafting of the PPA is being worked out, with the agreement signing scheduled by 1 December 2000 so that the project development could proceed and be able to meet the purchase schedule by December 2006.
To give effect to this, each government has appointed a committee to implement the project and to negotiate in detail the principles agreed upon in the MOU. In this regard, each government has appointed a committee and a working group to implement the project and to negotiate the purchase details. The transmission line routing from China to Thailand will pass through Lao PDR, and the converter station will be located in the PRC territory. Currently, both parties have agreed to cooperate in the planning and construction of the transmission system interconnection linking the two countries and the Greater Mekong Sub-region (GMS).
The cabinet resolution of 5 March 1996 gave consent to the separation of generation, transmission and distribution businesses. Since 1992, the government has promoted greater role of the private sector in the power generation business, in the form of both Small Power Producer (SPP) and Independent Power Producer (IPP).
In addition, the MEA will corporatize its core service businesses and separate non-core service businesses as BUs within the MEA. EGAT’s thermal generation business units will be corporatized as its subsidiaries (PowerGen 1 and PowerGen 2). Besides, EGAT will be responsible for the preparation of the three systems required to function as the System Operator (SO), Market Operator (MO) and Settlement Administrator (SA). The ISO shall own no power generation business in order to be independent and transparent in carrying out its operation. For retail customers, competitive Retail Companies (RetailCos) will be an alternative for consumers.
This will enhance retail competition not only in terms of prices but also in terms of service quality. The basic functions and the operation of related entities in any ESI can be shown in Figure 5.
Competitive RetailCos will be able to offer to consumers such value-added services as electricity tariff risk-management (hedging) and energy conservation services.
The ISO will be responsible for the economic merit order dispatch to generators, with close coordination with the MO, and will, control the operation of the GridCo.
The SA, being responsible for the billing and settlements, may be part of the Power Pool or be split off as a separate entity.
The ISO will then use the latest available information as a base for issuing a dispatch instruction to power plants. Meanwhile, the ISO will monitor developments and keep the GridCo, GenCos and buyers in the pool informed of any changes in the system conditions. Then, in compliance with these instructions, the GridCo and GenCos will produce and transmit energy to meet the demand or the operating schedules, which may differ from the initial forecast.
Certain consumer categories, especially industrial factories, which can rapidly reduce their power consumption, will be able to respond to the fluctuating pool prices.
If, during any period under the contract, the pool price is lower than the CfD price, the buyer will pay the seller for the difference.
That is, power business operators can carry out their power trades either via the Power Pool or outside the pool, using bilateral contracts.
Australia, California and New York in the USA, Alberta and Ontario in Canada, and Spain, the ISO is separated from the GridCo. The Government implemented a Power Sector Reform and Privatization Policy, which resulted in the separation of Uganda Electricity Board (UEB) into Generation, Transmission and Distribution successor companies. The network was handed over to Umeme limited on the 1st march 2005, under a concession arrangement. They are flexible to work within our processes and straightforward on what they need to make the project successful.
Ajit Kumar Sarker has been appointed as the new Executive Director (Planning & Projects) of Ashuganj Power Station Company Ltd. Ajit Kumar Sarkerhas been appointed as the new Executive Director (Planning & Projects) of Ashuganj Power Station Company Ltd. AMM Sazzadur Rahman has been appointed as the new Managing Director of Ashuganj Power Station Company Ltd. This project budgeted several billion dollars to be spent on the construction of public works as a means of providing employment, stabilizing purchasing power, improving public welfare, and contributing to a revival of American industry.
Competition will be introduced at both wholesale and retail levels, as illustrated in Figure 4. Hence, the future structure of the ESI in Thailand must suit and facilitate such business operation.
As a part of the Power Sector Development and Reform Program of the Government of Bangladesh (GOB) Ashuganj Power Station Company Ltd.
This project also intended to promote environmental conservation and to build good citizens through vigorous, disciplined outdoor labor.More than any other New Deal program, the PWA epitomized the notion to encourage economic growth which hoped to relieve people from economic depression.
Before joining to this position he was serving to the same organization as the Project Director of 225MW Combined Cycle Power Plant Project. Before joining to this position he was serving as Executive Director (Engineering) & Managing Director (Addl. Between July 1933 and March 1939, the PWA funded the construction of more than 34,000 projects: airports, electricity-generating dams, aircraft carriers, and seventy percent of the new schools and one third of the hospitals built during that time.



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