Search begins for industry regulators

Today's Business News - Wednesday December 12, 2007

ENERGY

Search begins for industry regulators

YUTHANA PRAIWAN

The new Energy Business Act formally became law yesterday, establishing a new independent regulator to oversee the country's oil, natural gas and electricity sectors. The new regulatory body would also have licensing authority for private operators, and would be overseen by a seven-member board, according to Kurujit Nakornthap, the deputy permanent secretary of the Energy Ministry.

He said the enactment of the act would help eliminate one point of contention raised by activists fighting against the 2001 privatisation of PTT Plc.

The Supreme Administrative Court will rule on Friday whether PTT was lawfully privatised or should be renationalised and delisted from the Stock Exchange of Thailand. One point raised by activists fighting the privatisation was that public, expropriated land used for PTT's gas networks should not have been transferred to a public company.

Mr Kurujit said the new Energy Business Act would clearly give authority to the independent regulator over public assets.

''It is fortunate that the [energy] law went into force yesterday as it will reduce pressure on the PTT case,'' he said.

Mr Kurujit said the regulator would also be responsible for establishing community funds affected by energy plants, protecting consumer rights and overseeing licensed operators. He said an energy conservation promotion law was also expected to take effect by June 2008.

Bangkok Post