Year 2007

 February 2007

New power plants face energy tax

New power plants will be forced to pay a new energy tax to help finance community development, according to the Energy Ministry. The new tax will be imposed on four new plants currently under construction by the Electricity Generating Authority of Thailand, as well as plants built under new independent power project (IPP) permits.

Energy Minister Piyasvasti Amranand said that under the new energy business performance bill, a power development fund would be set up to provide financial support for the development of communities in areas where power plants were located.

Funds would be used to subsidise power bills for the underprivileged in the communities, he said.

Piyasavasti: Funds may subsidise power bills

Power-plant owners would be required to pay one to three satang per unit (kilowatt/hour) of power distribution as a contribution to the fund.

He pointed out that a power plant with a 700-megawatt generation capacity could contribute 52 million baht per year if it was subject to a levy of one satang per unit.

Another contribution alternative is to provide free electricity to communities surrounding the power plant.

If, for example, around 20,000 households, or around 100,000 people live, in the surrounding area, each household might be entitled to consume 200 baht per month worth of power free of charge, for a total of 48 million baht per year. The remaining four million baht of the 52-million-baht levy against the plant could then be allocated to other public benefits.

For a 1,400-MW plant liable to an energy tax at three satang per unit, a contribution to the fund would be as high as 312 million baht per year.

Dr Piyasvasti said the ministry would attempt to put the bill into effect as soon as possible. At present, deliberation is at the public-hearing stage.

With a capacity of 700 MW each, the four new cogeneration power plants currently being constructed by Egat are located in Songkhla, Bang Pakong (Chachoengsao province), Southern Bangkok and Northern Bangkok.

This article is written by Bangkokpost

26/02/2007

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