Legislative Proposals for Amendments to the Energy Industry Act B.E. 2550 (2007) for Supporting and Promoting Energy Transition

Abstract

The Energy Regulatory Commission (ERC) has faced challenges in exercising its regulatory powers under the current Energy Industry Act B.E. 2550 (2007) (“EIA Act”) in advancing the energy transition toward a low-carbon society. This challenge arises from the lack of a legal framework to issue energy licenses for new electricity operation activities, such as electricity import and export, load aggregation, energy storage management, virtual power plants, and electricity transactions via IT systems. To address this, the definition of the “electricity industry” under the EIA Act should be expanded to include these activities as licensable. Furthermore, the legislation needs to be amended to explicitly recognize “self-consumption electricity producers” and their rights to generate, use, and sell excess electricity from their own consumption to other users. The EIA Act should also enhance its ability to acknowledge and enforce the rights of electricity producers and users to connect to and utilize electricity grids owned by other operators for electricity wheeling services related to private power purchase agreements. This would require electricity grid operators to consider these wheeling activities while ensuring the reliability of the grid. As distributed energy generation and direct commercial transactions between producers and users are closely linked to the energy transition, the ERC’s authority should be expanded to propose the formulation and development of electricity markets to the National Energy Policy Council for approval. To foster electricity markets in Thailand, the EIA Act should mandate grid operators to avoid abusive or unfair practices that may hinder market development. To align regulatory powers with the evolving international energy transition landscape, the ERC’s authority under the EIA Act should be strengthened to support Thailand’s commitments under legally binding international energy and environmental agreements. Regarding price control, the EIA Act should provide a legal foundation that enables the ERC to effectively regulate the prices of various electricity operations. It should also incorporate price flexibility to allow for adjustments in electricity pricing that reflect changes in economic conditions, societal needs, investments, and technological advancements, particularly in power purchase agreements where the state procures electricity from private producers.