Regulation and competition issues in Thai electricity sector

This paper explores the issues related to regulatory reform and liberalisation leading toward competition in the Thai electricity sector, which is still under the monopoly control of state-owned enterprises (SOEs). Following an overview of the current market structure of the Thai electricity sector, the process of liberalisation and deregulation that contributes to the uncompetitive market structure under SOEs’ control is examined. The author asserts that there are problems within the Energy Commission and the Energy Industry Act BE 2550 (2007) that contribute to the continuance of an uncompetitive electricity supply. Possible reforms to the Thai electricity regulation are proposed with the aim of creating market competition and efficiency in the Thai electricity sector.

► Author studies on the regulatory reform and a development of liberalisation plans on Thai electricity sector. ► The paper presents that the liberalisation plan was affected by the government implementation on electricity corporatisation. ► The paper asserts that the current energy regulation will not lead to market reform and competition in electricity. ► The paper also discusses on the current monopoly structure of Thai electricity sector under state owned enterprises. ► The paper concludes that Thailand needs an appropriate regulatory reform for building competition in electricity sector.