Electricity Governance Initiative Pilot Toolkit Application - Thailand

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Electricity Governance Initiative Pilot Toolkit
Application - Thailand

• The Electricity Governance Forum
• Bangkok, 30-31 March 2006

Supported by
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Outline

• EGI Thailand Team
• Research Team
• Advisory Panel
• The Context
• Best Practices in Governance
• Governance Challenges
• Recommendation

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EGI Thailand Team (1)Research Team

• Confederation of Consumer Organizations, Thailand
• Health Systems Research Institute (Host)
• King Prajadhipoks Institute
• Palang Thai
• Thailand Environment Institute

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EGI Thailand Team (2)Advisory Panel

• Permanent Secretary, Energy Ministry
• Deputy Director, Energy Policy and Planning
  Office
• Deputy Permanent Secretary, Office of Natural
  Resources and Environmental Policy and Planning
• Director, Bureau for Public Participation
  Promotion
• Two Senators (State Enterprise Privatization
  Committee)
• An MP (House Energy Committee)
• Representatives from Distribution Utilities (MEA,
  PEA)
• A Representative of Federation of Thai Industries
• Dr. Wanchai Watanasab, Center for Peace and Good
  Governance
• Dr. Praipol Kumsap, Thammasart University
• Dr. Piyasvasti Amranand, former Director of EPPO
• Dr. Deunden Nikomborirak, TDRI
• Mr. Witoon Permpongsachareon, former NESAC member
• Mr. Prairoj Polphet, Union for Civil Liberty
• Ms. Parichart Sivaraksa, Industry and Energy
  Subcommittee, NHRC
• Two local community leaders

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The Thai Context

• U-turn in ideology from the market-based Power
  Pool model in 2000 to National Champion in
  2003-2005
• Protests by labor unions and civil society failed
  to stop EGAT privatization
• The Supreme Administrative Court ordered an
  injunction of planned EGAT IPO and later reversed
  corporatization and privatization
• Interim Regulator was established
• To date, no promulgation of Electricity Industry
  Act. EGAT privatization was done through
  Corporatization Act.

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Top 5 Best Practices (1)

• Administrative Court quality and access
• Independent and impartial
• Authority to issue binding decisions
• Plaintiffs affected or likely to be affected
  parties
• Relative ease of access to redress (economic,
  geographic, linguistic, temporal and amicus
  brief)
• Capacity of civil society organizations
• Capacity to monitor, challenge and propose
  alternatives
• Abillity to seek environmental/social redress

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Top 5 Best Practices (2)

• Government initiative to consider Strategic
  Environmental Assessment (SEA)
• Holistic approach sector/policy level
• A beginning that needs further push
• Establishment of the Electricity Regulatory
  Committee
• Known as Interim Regulator
• A significant step forward but
• Existence of external, credible forums
• National Economic and Social Advisory Council
• Senate Extra-ordinary Committee on State
  Enterprise Reform Public Hearing

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Top 5 Governance Challenges (1)

• Lack of formal space for public participation
• Major bottleneck in governance process
• Policy, regulatory processes and project planning
• Resulting in conflicts, street protests and court
  cases
• Trends toward declining transparency
• Crucial info to inform major policy or regulatory
  decisions withheld
• Release of one-sided PR info to manufacture
  consent

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Top 5 Governance Challenges (1)

• Institutional weaknesses of the interim regulator
• Set up by low-level law (PM Office Regulations)
• Lack of legal authority, sufficient jurisdiction,
  independence, autonomy
• Environmental and social consideration treated as
  external
• Mandates of another ministry (MONRE)
• Lack of integrated approach in policy/planning
• Lack of legislative branchs involvement
• Bypassed in reform policy by Corporatization Act

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Recommendation to improve governance in Thailand

• Promulgation of draft Electricity Industry Act
• To set up an independent regulatory body
• To legislate power sector reform
• To institutionalize TAP governance principles in
  decision making processes
• Need to emphasize sector reform
• (as opposed to privatization with no
  re-organization of sector)
• Need to adopt holistic approach (e.g. SEA)
• Capacity building of CSOs, Regulatory Body,
  legislative committees