Thailand: MEA mulls privatising division

Thailand: MEA mulls privatising division

The Metropolitan Electricity Authority (MEA) is considering a plan to
privatise its electricity-related service provider division to tap into
rising demand.

Wilas Chaloeysat, director of the electricity service and power quality
department, said the MEA is still evaluating whether to privatise the Energy
Solution Department, which was recently renamed as Better Care MEA.

If approved, the privatisation is expected to take place by October, he
said.

Electricity-related services provided by Better Care MEA cover energy saving
and efficiency consumption, energy service company and renewable power
project development.

Mr Wilas said the services received great demand from consumers thanks to
businesses' and state agencies' own cost-cutting programmes, as well as
financial support from the Energy Conservation Fund.

Better Care MEA was separated from MEA in October last year in order to
differentiate electricity services out of MEA's core business of
transmitting power in the Bangkok metropolitan area.

Under existing MEA regulations, Better Care MEA cannot compete with other
private electricity service providers because of legal constraints, as it is
technically still part of the bureaucratic system.

Mr Wilas said the country's policymakers have been focusing on energy saving
and efficient energy consumption over the past few years by launching
projects as well as funds and soft loans of almost 6 billion baht to be lent
to state agencies through commercial banks.

Since its launch last year, Better Care MEA has had more than 20 projects on
hand from almost 20 state agencies, state enterprises and private firms.

In the long term, MEA plans to be a contractor and an operator of solar
power programmes after years of providing construction services.

The MEA expects to get a warm welcome from consumers since solar power and
solar rooftops have become more popular and the government is about to free
up more players to develop solar rooftop and farm projects.

Mr Wilas said the energy service is a business with strong potential in
Thailand because energy policymakers plan to enhance energy efficiency and
save energy under the 2015-2036 plan by 30% over the next two decades.

MEA's Esco is a prominent solar panel rooftop and light-emitting diode
provider, and is seen to have high potential for after sales services.

MEA yesterday delivered its contractor service for a 2.2-megawatt solar
rooftop at Chaeng Wattana Government Complex in Laksi, which is managed by
Thanarak Asset Development, a wholly-owned entity of the Treasury
Department.

Mr Wilas said solar rooftops are experiencing a rising trend as the vast
majority of individuals and firms try to reduce energy costs.

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Link to Original Article:
http://www.bangkokpost.com/business/news/1238630/mea-mulls-privatising-divis
ion

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com