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General news >> Wednesday July 16, 2008
DAMS' ENVIRONMENTAL IMPACT

Egat will pay energy tax as compensation

PIYARACH CHONGCHAROEN

KANCHANABURI : The Electricity Generating Authority of Thailand (Egat) has agreed to pay an energy tax in Kanchanaburi province to compensate for the negative impact of its three dams.

The initial contribution was estimated at 38 million baht, said provincial governor Amnart Phakarat.

A new law requires the state electricity producer to share the revenue gained from every unit of electricity produced. The fund was launched in January this year by the previous government and the contributions are expected to reach 1.887 billion baht this year.

Egat owns about 100 electricity plants in 39 provinces.

The rate is 0.02 baht per kilowatt-hour for hydro- and coal-fired power plants, and 0.015 baht per unit for oil-powered generators.

Natural gas-fired power generators are required to pay 0.01 baht per unit, which is equivalent to the rate charged for renewable electricity sources such as wind and solar power.

Egat operates the Sri Nakarin, Vajiralongkorn and Tha Thungna dams in Kanchanaburi province.

The dams play an important role in easing flooding in the region, but villagers have complained that they are also having an adverse impact.

Environmental groups claim the construction of the Sri Nakarin dam, which came onstream in 1981, saw an increase in illegal logging and wildlife poaching in nearby forests.

Mr Amnart said he would lead a joint committee consisting of state officials and representatives of villagers in affected areas to manage the fund, which has been split into two - with one portion being financed by operators of the Sri Nakarin and Tha Thungna dams, and the other by the Vajiralongkorn dam operator alone.

About half of the fund will go to ease the sufferings of people in the areas hardest-hit and allow 10% for administrative costs, with 30% kept for future emergency use, the governor said.

Criteria had been drawn up to fairly distribute the money to those in most need and for the general benefit of the people of Kanchanaburi, Mr Amnart said.

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