New PEA unit to set sights on Southeast Asian countries

Business News : Monday December 10, 2007

ELECTRICITY / STATE ENTERPRISES

New PEA unit to set sights on Southeast Asian countries

YUTHANA PRAIWAN

The Provincial Electricity Authority (PEA) will set up a new energy business company as its arm to penetrate the high-growth energy sector in Southeast Asia.

PEA governor Adisorn Kiatchokewiwat said the new legal entity, which would be wholly owned by the PEA, would operate and maintain the electricity transmission system in Cambodia, where the Cambodian power utility agency has entered into an agreement with the PEA.

Under the agreement, the PEA would provide the Cambodian utility with system operation and maintenance services, under a two-year-contract valued at 160 million baht.

The PEA is seeking cabinet approval for the formation of the new company by the end of this year. The company's name is to be considered soon.

Setting up the overseas business unit is a part of the state agency's business restructuring policy as it considers expanding its position to tap opportunities in power services beyond Thailand.

The new business positioning would help add value to existing PEA assets and diversify into other energy-related areas.

''The Indochina region's economic growth is speeding up far beyond the development of power utilities, resulting in the possibility of blackouts and brownouts during peak hours. That gives us a chance to seek business contracts as a technical service provider,'' Mr Adisorn said.

The PEA is also offering long-term lease contracts for its extensive fibre-optic lines for internet service and mobile operators. The business has the potential to generate hundreds of millions of baht a year.

The PEA transmission network covers most of the country excluding Bangkok, Nonthaburi and Samut Prakan.

Mr Adisorn said the PEA was setting aside an investment budget of 67.12 billion baht for transmission efficiency improvement and new investment in renewable energy ventures including mini-hydropower generation plants.

By : Bangkok Post