The energy regulator has blocked a move by a PTT affiliate to take over Glow Energy Plc (Glow), to ensure continuing competition in the energy sector.
A source at the Energy Regulatory Commission said the ERC decided unanimously on Wednesday to prohibit Global Power Synergy Plc (GPSC) from acquiring a 69.11% holding in Glow.
GPSC is an affiliate of PTT Plc, a state enterprise and the country's largest energy conglomerate.
The commission was of the view the acquisition might violate many sections of the Energy Business Act when it came to the promotion of competition in the sector, the source said.
The commission would elaborate on the matter on Thursday afternoon, the source said.
In June, GPSC agreed to purchase 69.11% of Glow's shares from French-based Engie Group. The remaining 30.89% were expected to be bought through a tender offer.
Once complete, GPSC would own 80% of all private power purchase agreements (PPPAs) in the Map Ta Phut area. It currently controls just 20%, while Glow has 60%. The remaining 20% is held by the Provincial Electricity Authority.
Glow is an independent power producer (IPP) with cogeneration facilities. It sells electricity to the Electricity Generating Authority of Thailand under the small power producer (SPP) programme, as well as electricity, steam, clarified and demineralised water to customers in the Map Ta Phut Industrial Estate and nearby facilities in Rayong province.