Egat seeks to cut costs amid rising demand
Bangkok Post, May 26, 2003
BY: Yuthana Praiwan
In a move that would lead to higher power bills, the Electricity Generating Authority of Thailand (Egat) will likely be forced to use more fuel oil with higher sulphur content for power generation in 2005-06, when demand for natural gas is forecast to exceed the available supply from PTT Plc.
Egat currently uses around 700 million litres of fuel oil a year to generate power. Total fuel oil consumption is projected to surge to more than four billion litres in 2005-06.
Egat governor Sitthiporn Ratanopas said it was attempting to find ways to ease a possible rise in electricity bills once it is forced to rely more on fuel oil, which costs more than natural gas. He said it had sought Energy Ministry approval to use fuel oil with 3.5% sulphur content in place of oil with 2% content since the former is cheaper. Egat also plans to reduce costs in other areas.
Prime Minister Thaksin Shinawatra said on his radio programme on Saturday that power rates would be fixed until January next year as state power agencies would be successful in controlling costs.
The energy adjustment cost, known as Ft and added to power bills, will be kept at 26.12 satang per unit (kilowatt/ hour) this year. The charge had been expected to increase by around nine satang per unit in line with real costs.
The three state power generators, private power producers and natural gas suppliers had been asked to improve cost management to offset the burden of around six billion baht borne by the Energy Ministry to cap prices when they shot up in the build-up to the Iraq war.
PTT president Viset Choopiban said the firm would be unable to supply sufficient natural gas in 2005-06 because demand was continuing to increase in tandem with economic growth.
Prasert Bunsumpun, PTT senior executive vice-president for gas, said it had the capacity to supply 2,700 million cubic feet per day (mcfpd) of natural gas, expected to rise to 2,750 mcfpd next year, through its first and second pipeline networks at present.
PTT estimated the use of fuel oil by Egat to offset a gas shortage would double to two billion litres a year. The first section of the third pipeline network is expected to be completed in early 2005.
Back to Newsclippings | To top
|
