The source said he believed the conditions and regulations, as determined by the Electricity Regulation Board on June 8, would be fair to all participants. Bidding will also be open to foreign investors.

The source said that unclear conditions for IPP project bidding would have given Electricity Generating Plc (Egco) and Ratchaburi Electricity Plc (Ratch) an unfair advantage over other bidders, thus undermining market competition.

Both companies can offer power at low prices thanks to support from their parent, the Electricity Generating Authority of Thailand (Egat), which provides land for construction and transmission lines.

Under the conditions, all bidders will be able to arrange for a long-term electricity development plan and be treated equally.

The bidders should be able to provide electricity at reasonable prices and to build power plants almost anywhere in the country.

Egat holds a 25-per-cent stake in Egco and a 45-per-cent stake in Ratch. Egat has given them privileges in building and operating power plants without bidding, accounting for 50 per cent of total power supply. Other bidders will typically have higher construction costs, which will translate into a higher cost of power.

To ensure fairness, the board might determine the zoning for building IPP plants in any central area where none of the bidders have an advantage.

Watcharapong Thongrung

The Nation