Fund revised for transparency
The state-run Energy Conservation Fund is expected to revise regulations and budget allocation after newly appointed permanent secretary of energy Kulit Sombatsiri initiates efforts to make the fund more transparent.
The Alternative Energy Development and Efficiency Department will be in charge of the fund.
Established in 1992, the fund promotes energy conservation activities and greater efficiency of energy consumption through soft loans, grants, subsidies, scholarships and advance payments. Examples include subsidy programmes for installation of solar rooftops and construction of electric vehicle charging stations.
Director-general Praphon Wongtharua said the revision is expected to start soon because there are many programmes in the department’s pipeline to be supported by the fund.
The fund collects a levy from all fuel products at 10 satang per litre and generates cash of nearly 3 billion baht per year. The fund’s reserves used to reach 14-15 billion baht a year because 25 satang per litre was being collected until 2007-08.
There is no data for budget disbursement over the past two decades because the fund was used for political interventions. Media are not allowed to access or request the fund’s balance sheet.
Mr Kulit said regulations for some activities afforded loopholes in budget allocation.
“The revision process is expected to be completed very soon because the new government fiscal year, starting in October requires new regulations to be enforced,” said Mr Praphon.
“Many programmes from state agencies and private companies have grown significantly, so the department has to speed up implementing new regulations.”
He said the budget allocation should be easily tracked and spending should be traceable.
Separately, the department yesterday launched the annual Thailand Energy Award in a bid to promote public concerns about energy saving and higher efficiency of energy consumption.
Many organisations are concerned about energy-saving due to the higher consumption cost while alternative fuels, saving energy equipment and renewable energy have become cost-competitive against fossil-based ones.
Since the award was first introduced in 2000, the 885 firms and state agencies that received the award saved energy costs at a combined 8 billion baht per year, as well as reducing carbon dioxide emission by 1.3 million tonnes per year.
As a result, renewable energy represented 15% of the total energy mix consumption last year, while energy policymakers set the target contribution to 30% within 2036.