The new energy regulator is investigating Thailand's controversial third-round independent power producer (IPP) scheme following criticism that only one company won all 5,400 megawatts of the concession.
Technicians replace a fallen power pylon in Bangkok. Thailand's independent power producer programme is being investigated for irregularities. NATTHITI AMPRIWAN
Kraisi Karnasuta, a member of the Electricity Regulatory Commission (ERC), said the investigation started last week in response to a request by the National Council for Peace and Order (NCPO).
The NCPO demanded thorough scrutiny of the process to ensure bidding complied with the terms of reference.
The investigation will also focus on the fairness of the auction, which was under the consideration of ERC commissioners who were removed by the NCPO last month.
"We are working hard to inspect documentary evidence to see if anything unusual occurred. We're interrogating relevant officials of the state utility to see if there was any inappropriate action by state officials in the bidding process," said Mr Kraisi.
The investigation is expected to be concluded by mid-October.
The IPP third round opened in December 2012 for private power producers to bid for electricity generating and operating concessions with a capacity of 5,400 MW.
As the whole capacity fell into the hands of only Gulf Electric Group, the Energy Ministry faced criticism over the transparency of the auction. Gulf Electric executives could not be reached for comment.
Some industrial experts pointed out that Viset Choopibal, a former energy minister and former president and chief executive of PTT Plc, was chairman of Gulf Electric at that time.
In the second round of IPP bidding from 2006-07, Gulf Electric also won all concessions for generating capacity of 3,200 MW.
In 2010, it was also awarded eight concessions for producing and operating gas-fired units under the small power producer programme at 90 MW each.
In 2021, when all power generation under these concessions has started, Gulf Electric will be Thailand's largest IPP, with capacity of nearly 9,000 MW, surpassing Ratchaburi Holding Plc, a subsidiary of the Electricity Generating Authority of Thailand.
In a related development, the restructuring of prices of cooking gas and compressed natural gas is the next mission after tackling retail oil prices, energy permanent secretary Areepong Bhuchaoom said.
After that, the Energy Ministry will move to propose the new government kick off talks with the Cambodian government on the overlapping claim area (OCA) offshore.
Kurujit Nakornthap, director-general of the Mineral Fuels Department, said his agency would help the country to secure supply from the OCA, which is believed to have a large amount of gas reserves.
Exploration activity has been suspended since 1973 and negotiations delayed amid the unsettled dispute between the two countries.
Mr Kurujit said the ministry was also looking at petroleum reserves in the Gulf of Thailand.
"After 2016, petroleum production in the Gulf of Thailand is expected to decline sharply, so we need to prepare new reserves and new production fields," he said.