ERC poised to reconfirm Glow ruling
Formal announcement of resolution awaited
The Energy Regulatory Commission (ERC) is likely to adhere to its recent resolution to derail a takeover effort made by PTT’s unit Global Power Synergy Plc (GPSC) for Glow Energy Plc.
ERC chairman Samerjai Suksumek said board members who participated in the meeting on Dec 7 had reconfirmed blocking the takeover deal, but the decision was not finalised because some members were absent.
The energy regulator’s board met yesterday afternoon and the resolution will be announced on Thursday, he said.
The ERC on Oct 10 blocked the deal, saying it breached the Energy Industry Act’s standards for a monopoly because the deal would let GPSC control the largest market share of private power purchase agreements (PPPAs) at Map Ta Phut Industrial Estate in Rayong province.
The ERC cited the act’s Section 60, which prohibits monopolies that reduce or limit competition in energy service.
In June, GPSC agreed to purchase 69.11% of Glow’s shares from French-based Engie Group.
The remaining 30.89% of shares were to be bought through a tender offer.
The deal had an estimated value of 139 billion baht.
Under the plan, GPSC was to own 80% of PPPAs in the Map Ta Phut area. Before the takeover began, GPSC controlled 20% and Glow had 60%, with the remaining 20% held by the Provincial Electricity Authority (PEA).
Separately, the ERC will issue new regulations to facilitate the “prosumer” concept, also known as peer-to-peer power trading among consumers, in 2019.
Mr Samerjai said the ERC plans to unlock private and household sectors to participate in the energy sector in line with the country’s energy reform plan.
Solar rooftops are among the crucial projects that the ERC is prepared to launch for 10,000 megawatts over the next 20 years.
This means both sectors will be able to sell surplus electricity from their solar rooftops to the state grids and other properties.
This, is in line with the tentative national power development plan (PDP) in the new revised version, targets allowing private firms or households access to the sector and to peer-to-peer power trade.
Several energy firms have emphasised the need for power trade in communities and residential projects, and in industrial estates such as BCPG Plc and GPSC for pilot projects.
Mr Samerjai said the ERC is open to any firms and state utilities entering discussions before new regulations are issued involving electric vehicles (EVs) and charging stations.
“The adoption of EVs is widespread in the Thai market, and several state agencies and companies are trying to expand their charging stations in Bangkok over the last three years,” he said. “The relevant regulations will be issued next year to facilitate participation for this sector.”
Mr Samerjai said the new version of the power development plan (PDP) is expected to complete public hearings and undergo a final decision by the National Energy Policy Council in early January.
The ERC will then revise the power rate.
“Blockchain is being used in several countries, so Thailand cannot avoid this trend,” Mr Samerjai said.
In addition, the ERC will issue regulations for the liquefied natural gas (LNG) business.
The new LNG business model will shift to transporting LNG by road from ships.
Mr Samerjai said LNG supply is necessary given limited gas pipelines for compressed natural gas.
“The ERC plans to issue licences for this new business,” he said. “LNG is imported by PTT Plc, and the Electricity Generating Authority of Thailand will be the second importer.”
The gas pipeline will be gradually depleted as LNG imports expand in the future.