Bangkok--12 May--Srinakharinwirot University
Urging the government to increase efficiency of energy usage and seek new energy resources in an attempt to push for sustainable energy pricing structure
To emphasize the government’s efficiency of energy usage, Srinakharinwirot University in collaboration with academicians from Thammasat University, Bank of Thailand, the Federation of Thai Industries and Chulalongkorn University’s Energy Research Institute holds an academic seminar to suggest Thailand’s appropriate energy policies and prices. This academic seminar also aims to urge the government to explore new energy resources, create understanding with all related sectors, and push for new energy price structures that are able to reflect its real cost.
“Due to the fluctuation of fuel prices in the world market, setting up suitable energy policies and prices for Thailand is very important for the development of energy allocation and consumption structure for industrial sector and households in the country” unveiled Professor Dr. Praipol Koomsup, academician from Thammasat University’s Faculty of Economics. “The government sector’s collaboration is needed to make this topic as a national issue, aiming to stimulate all energy-related agencies to take part in managing, implementing and making this project to be accomplished.”
Dr. Songtham Pinto, Director of the Bank of Thailand’s Office of Macroeconomics, said “Oil is a key and influential factor for Thailand’s economy, especially for transportation industry. The fluctuation of oil prices in the world market has a direct effect to the country. As a result, the government should have clear energy policies and further plan in order to boost confidence among economic sector. Meanwhile, the government has to effectively prepare for possible energy situations in the future and reduce negative effects from the instability of fuel prices.”
Hin Nawawong, Vice President of Board of Directors, the Institute of Industrial Energy, the Federation of Thai Industries, revealed “Thailand’s energy pricing policies will definitely have an impact on private sector. Hence, the nation’s 2011 — 2030 Power Development Plan aims to strengthen confidence in power investment and development, following the Energy Policy and Planning Commission’s resolution dated March 12, 2010. Among energy pricing policies include the promotion of power production from renewable energy following 15-year alternative energy development plan and ADDER measure reducing the emission of green house effect caused by power production.”
The Federation of Thai Industries has proposed energy policies in line with energy price structures that reflect the real cost. The government, however, should give some time for industrial sector to adjust themselves when there is an adjustment of energy prices as well as granting low-interest loans to industrial entrepreneurs. Other measures for the government in increasing quality of energy and creating sufficient energy consumption include providing measures for helping industrial entrepreneurs to seek alternative energy, supporting funds for replacing existing equipments and machines with new ones that use alternative energy and adding more measures aiming to increase the efficiency of energy usage. Furthermore, the government should set up long-term energy policies and plans for each sector, including creating understanding of the policies.
“The country’s energy pricing policies have an influence on private sector’s adjustment and businesses. An increase of crude oil price from 25 to 30 US dollars per barrel over these four months is due to risks of large oil users, which includes long-term rehabilitation, employment, US consumers’ consumption confidence, debt crisis management, budget reduction, Europe’s economic recession, China’s adjustment of financial stimulus measures, Japan’s rehabilitation from natural disaster and explosion of nuclear power plant, OPEC’s decision on oil manufacturing quota, weakening of US dollar value, Iran’s nuclear, Nigeria’s terrorist attack and hurricane during June to November” Mr. Manoon Siriwan, Energy Expert, said.
Nowadays, Thailand’s fuel pricing policies emphasize on the oil price stability by using oil fund and excise tax as a tool. These energy pricing policies aim to cope with short-term problems and answer political objectives rather than solving economic problems in the long run. New energy pricing structures have to go in line with each other, allowing general public to decide the use of energy that is suitable for their need. Setting up energy policies and controlling energy prices have an objective to reduce import of energy in the long term, support the use of alternative energy, decrease the use of fossil energy and intensively promote energy saving. Oil Fund should be responsible for helping support long-term energy solution by encouraging transportation and pipeline transportation to do risk management for the fluctuation of oil prices. Related agencies must set up risk management plan for fuel prices and strategic oil depots.
Assistant Prof. Naebboon Hoonchareon, Deputy Head of Chulalongkorn University’s Energy Research Institute, said “Thailand’s energy state is from combined cycle power (15,602.0 megawatts or 52.2%), heat power (8,965.6 megawatts or 30.0%), water power (3,424.2 megawatts or 11.5%), alternative energy (288.1 megawatts or 0.9%), gas turbine and diesel engine (971.4 megawatt or 3.3%), Laos’ supply (340 megawatts or 1.1%), and Malaysia’s supply (300 megawatts or 1%). In the future, Thailand is expected to rely more on other energy resources or from neighboring countries in order to reach the domestic demand. Energy policies, therefore, must have efficiency and align with security, safety, health and environment factors. Additionally, utilizing advanced technology for controlling and increasing energy capability and seeking alternative energy are very essential. The safety of implementation of policies should be under control.”
Nattachart Jaruchinda, PTT's Executive Vice President, said “PTT is ready to give cooperation to the government sector for energy-related policies so that the government’s energy allocation for industrial sector and households will get the achievement.”
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