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Published on November 17, 2007

Ratchaburi Elec-tricity Generating Holding yesterday filed a complaint with the Administrative Court, following its failure to qualify for the second-round qualification process of independent-power-producer bidding.

The power company asked the court to have the Energy Ministry reinstate it into the process.

"Disqualifying the company could deprive the public and the nation of low power rates. As a major private generator, the company has the capability to invest in a power plant on a prepared location near the power grid and natural-gas pipeline.

The company possesses a knowledge of the business and strict environmental standards and is financially ready. This would mean low generating costs and benefits for the entire country," the company said in a statement.

Yesterday, the ministry's National Energy Policy Committee (NEPC) resolved that 17 bids were qualified for the second round.

Energy Minister Piyasvasti Amranand chaired the meeting.

Ratchaburi had submitted two bids. One of them was disqualified along with bids by Rayong-based Thai National Power and Prachin Buri-based National Power Supply.

Out of 20 bids, 17 qualified for the second round, where their price quotations will be the main focus.

One of the bids belongs to a consortium formed by Ratchaburi, Rojana Industrial Park, Kansai Electric Power, Sumikin Bussan and KPIC Netherlands.

At press time, Energy Policy and Planning Office director-general Viraphol Jirapraditkul said his agency had not yet officially been informed of the accusation but that he was ready to explain the decision to the court.

He insisted that at the date of bid submission, Ratchaburi was deemed a state enterprise under the Public Debt Act, because government agencies'

 

 

 

 cumulative stakes in the company exceeded 50 per cent. He also said this definition was based on the Finance Ministry's interpretation.

The winners of the second round will be announced early next month, but to win the final contracts the winners must gain environmental approvals, which must be made available to show to the NEPC by next September.

Viraphol said after yesterday's NEPC meeting that the 17 bids had a combined capacity of 15,297 megawatts.

Also yesterday, the NEPC approved an increase in the "adder rate", an extra fee on top of the regular power-purchase charge for wind-power generators, from Bt2.50 per unit to Bt3.50. The period whereby the adder rate is applicable was also lengthened, from seven years to 10. Similarly, the adder rate for solar generating was raised to Bt8 a unit and the applicable period also lengthened, to 10 years.

The NEPC granted approval for the Electricity Generating Authority of Thailand to buy up to 4,000MW from co-generation power plants, from the original ceiling of 500MW.

The NEPC also approved a three-year Bt750-million budget for public relations, in order to pave the way for nuclear power development.

Energy Reporters

 The Nation