"Corporation” means a limited company, public company limited, limited partnership, ordinary partnership, or other legal entities.

“Dedicated energy network system” means an energy network system which directly provides services to energy consumers within its vicinity, without using any other energy network system.

“Direct access customer” means a power consumer who purchases electricity directly from the Power Pool and who shall have to comply with the Market Rules.

“Energy” means energy under the law on the National Energy Policy Council.

“Energy activity facility” means a building, a location, machinery, electric wires, electricity poles, a power station, energy transmission pipes, an energy compressor station and any other equipment used in the energy business operation.

“Energy business operator” means a person who carries out an energy-related activity.

“Energy business operator with market power” means any energy business operator in any energy market or any energy service market who, given the competitive conditions of the market, has market shares or total income higher than the level specified by the Commission.

“Energy consumer” means a person who consumes energy that is not produced by himself.

“Energy network system” means a power network system, a natural gas network system, an energy transmission pipeline system, energy compressor equipment, a treatment unit, a meter or any other equipment related to energy transmission or distribution.

“Energy network system expansion plan” means an investment plan to expand an energy network system.

“Energy retailer” means a licensee that is authorized to retail energy.

“Enforcement officer” means a person appointed by the Commission for the execution of the work under this Act.

“To establish an energy activity facility” means to construct an energy activity facility or to install machinery or any other equipment used in the energy business operation.

“Fund” means the Power Consumer Assistance Fund.

“To generate power” means to generate electric energy or to provide ancillary services, except ancillary services provided by power transmitters or power distributors.

“License” means a license authorizing professional practice of energy-related activities under this Act.

“Licensee” means a person who holds a license to carry out an energy-related activity.

“Liquefied petroleum gas” means hydrocarbon gases used for cooking, i.e. propane, propylene, normal butane, iso-butane or butylene, each of or a combination of these gases.

“Minister” means the Minister who has charge and control of the execution under this Act.

“Natural gas” means all gaseous hydrocarbons, either wet or dry, obtained from oil wells or gas wells, or hydrocarbon gases remaining from a gas separation process, or gaseous hydrocarbon compounds before being liquefied, excluding liquefied petroleum gas used as fuel and hydrocarbon gases used as feedstock in the petrochemical industry.

“Natural gas distribution system” means a pipeline system linking natural gas supply stations and natural gas consumers, launcher and receiver equipment, gas meters, valves or any other equipment related to natural gas distribution.

“Natural gas network system” means a natural gas transmission system or a natural gas distribution system.

“Natural gas storage” means to keep natural gas, in the form of either gas or liquid, in cylinder tanks or other containers or underground storage tanks, including equipment used in liquefying gas or that used in gasification of gas in the liquid form.

“Natural gas supply station” means a station composed of pipelines connected from a natural gas transmission system, valves, regulators, gas meters.

“Natural gas transmission system” means a pipeline system used for launching and receiving natural gas from a natural gas resource or a natural gas supply point to a natural gas distribution system, launcher and receiver equipment, pipeline inspection gauge, gas meters, calorimeters, regulators, valves, compressor stations, gas treatment facilities, block valve stations, natural gas supply stations, interconnection pipelines linking all equipment, or any other equipment related to natural gas transmission.

“Office” means the National Energy Regulatory Office.

“Power distribution system” means the power systems of the Metropolitan Electricity Authority or the Provincial Electricity Authority, or other power systems which are not power transmission systems, including the system operator of each individual power system.

“Power distributor” means a person who holds a license to operatem a power distribution system.

“Power network system” means a power transmission system or a power distribution system.

“Power Pool” means Thailand Power Pool.

“Power Pool Board” means Thailand Power Pool Board.

“Power Pool Manager” means the Manager of Thailand Power Pool.

“Power system” means electric wires, electricity poles, power stations, transformers, meters or any other equipment related to electricity transmission or distribution.

“Power transmission system” means a power system of the Electricity Generating Authority of Thailand or a power system from a power generator to a power station of a power distribution system or to a power station of a power consumer, excluding the power systems of the Provincial Electricity Authority or the Metropolitan Electricity Authority.

“Power transmitter” means a person who holds a license to operate a power transmission system.

“Renewable energy” means renewable energy under the law on the National Energy Policy Council.

“Retailing of energy” means to sell energy to energy consumers.

“Secretary General” means the Secretary General of the National Energy Regulatory Commission.

“Subsidiary” means the following, pursuant to the criteria set by the Commission:

(1)A business company owned or controlled in whole or in part by another company;

(2)A subsidiary of a company under (1) at each hierarchical order.

“Tariff” means the energy price or cost of services provided by a licensee, or other fees, including the mechanism used for the tariff determination and terms or conditions of services.

  Section 4: 

All other laws, by-laws and regulations in so far as they have already been provided in this Act or are contrary to or inconsistent with the provisions of this Act shall be replaced by this Act.

  Section 5: 

The Prime Minister shall have charge and control of the execution of this Act.

ENERGY INDUSTRY REGULATORY AGENCIES

The National Energy Regulatory Commission

  Section 8:   

The National Energy Regulatory Commission shall be established, comprising one Chairman and four other members graciously appointed by His Majesty the King, by and with the advice of the Senate. 

The Secretary General shall be the Secretary to the Commission. 

  Section 9:  

The Commission shall have the following authority and duties: 

(1)         Regulate the energy industry operation to ensure its compliance with the objectives of this Act; 

(2)         Determine measures, criteria, procedures and conditions of the energy business operation; 

(3)         Determine measures to promote competition and prevent the abusive use of monopoly power; 

(4)         Consider and recommend to the NEPC the energy network system expansion plans; 

(5)         Determine the qualifications, procedures, criteria, conditions and duration of license granting for the operation of energy activities; 

(6)         Consider granting, modifying, suspending and terminating licenses for energy business operations; 

(7)         Regulate the tariffs of energy business operators, including determining criteria, procedures and conditions of the regulatory process; 

(8)         Determine the license fee and the fee for the energy business operation, including the fee payment procedures, with approval of the NEPC. 

(9)         Set and regulate the technical and safety standards of the energy business operation; 

(10)     Set the customer service standards and quality, including measures to protect energy consumers against adverse impacts resulting from the energy business operation; 

(11)     Set and regulate the procedures to consider petitions and appeals submitted by service consumers, energy business operators and those adversely affected by the energy business operation; 

(12)     Approve the budget and the operational plan of the Power Pool and the Pool charges for services provided by the Power Pool; 

(13)     Approve the determination and all amendments to the Market Rules, the requirements for the connection to the power transmission system, the Grid Code, and the Transmission Control Agreement, as proposed by the Power Pool Board; 

(14)     Approve the requirements for the connection to the power distribution system, for the use of the distribution system facilities and for the distribution system operation, as proposed by the power distributors; 

(15)     Approve the Power Retail Code as proposed by power retailers; 

(16)     Approve the requirements for the connection to the natural gas network system, for the use of the network system facilities and for the network system operation; 

(17)     Approve the Natural Gas Retail Code as proposed by natural gas retailers;

 (18)     Propose the operational plan, the annual expenditure budget and revenue estimations of the Commission and the Office in each fiscal year to the NEPC and the cabinet;

 (19)     Approve the process for the screening, selection and appointment of a member of the Power Pool Board when a vacancy arises on the Power Pool Board;

 (20)     Propose to the NEPC the rules and Codes of Conduct of the members of the National Energy Regulatory Commission and the Office’s staff members;

 (21)     Approve the rules and Codes of Conduct of the Power Pool Board members and the Power Pool staff members;

 (22)     Consider requests for the establishment of agencies for the testing and certification of standards pursuant to Section 70;

 (23)     Set the rates, criteria and procedures of the contributions to be sent to the Fund under Section 85 and the subsidy payment from the Fund under Section 86;

 (24)     Determine the Competition Transition Charge (CTC) under Section 138 and the regulations pertaining to the CTC;

 (25)     Determine the hearing process to gather views and comments on the duty execution of the Commission; 

(26)     Provide comments or recommendations related to the energy industry to the NEPC and the cabinet; 

(27)     Present the annual report of the Commission to the NEPC; 

(28)     Issue the regulations on the administration of the Office under Section 30; 

(29)     Promote and support research and development work, and human resources development in order to increase efficiency in the energy industry regulation; 

(30)     Promote the use of renewable energy and energy that has less adverse impact on the environment; 

(31)     Perform any other task as stipulated in this Act or in other laws as part of the Commission’s authority and duties.

In performing their duties, the Commission shall attempt to comply with the objectives under Section 6. 

For purpose of implementing the authority and responsibilities prescribed under Clause one hereof, the Commission shall have the power to issue regulations, rules, announcements, orders or codes. 

Any regulations, rules, announcements, orders or codes to be generally enforced shall take effect upon their publication in the Government Gazette. 

  Section 10:   

The Commissioners must have practical achievements or hands-on experience illustrating profound knowledge, understanding and expertise or must have no less than ten years of experience in the following fields: energy, economics, finance, accounting, laws, mathematics, engineering, science, management or social science, which will contribute to the energy industry.  In this regard, the working period in each of the mentioned fields can be accumulated. 

  Section 11:   

The Commissioners shall have the qualifications and shall not possess any disqualification as follows: 

(1)         Being of Thai nationality; 

(2)         Having attained the age of 35;

(3)         Have never been a member of the National Energy Regulatory Commission; 

(4)         Must not be a member of the House of Representatives, a member of the Senate, a political official, a member of a local assembly or a local administrator; 

(5)         Must not hold any position in a political party; 

(6)         Must not be insane or mentally disordered; 

(7)         Must not be addicted to drugs; 

(8)         Must not be adjudged as bankrupt; 

(9)         Must not be adjudged incompetent or quasi-incompetent; 

(10)     Must not be convicted and sentenced by a final judgement to imprisonment, except for offenses committed by negligence or petty offenses; 

(11)     Must not be convicted and sentenced by a court to have assets confiscated by the state due to excessive wealth or unusual increase of assets; 

(12)     Have never been dismissed, discharged or terminated from service of a government agency, a state enterprise or a private agency on the grounds of dishonesty, serious malfeasance, or quasi-corruption and quasi-disciplinary misconduct; 

(13)     Must not be a judge of the Constitutional Court, an election committee member, a parliamentary inspector, a member of the Counter Corruption Commission, a member of the Auditor-General of Thailand, or a member of the National Economic and Social Advisory Council; 

(14)     Have never been dismissed from office by the Senate. 

 Section 12:   

For purpose of appointing the Commissioners, there shall be the Screening Committee to be responsible for the screening of qualified persons to be nominated Commissioners, comprising 13 members as follows: 

(1)         One representative each from the Office of the Prime Minister, the Ministry of Interior, the Ministry of Science, Technology and Environment, the Ministry of Industry, the Ministry of Finance and the National Energy Policy Office; 

(2)         Three qualified persons, to be appointed by the cabinet, who have practical achievements or hands-on experience illustrating profound knowledge, understanding and expertise or must have no less than ten years of experience in the fields of energy, economics, finance, accounting, law, mathematics, engineering, science, management or social science, which will contribute to the energy industry; 

(3)         One representative each from the Federation of Thai Industries and the Board of Trade of Thailand; 

(4)         One representative to be selected among non-government organizations, other than those under (3), that are juristic persons, endorsed by the Consumer Protection Board pursuant to Section 40 of the law on consumer protection, and that are non-profit making with objectives and previous achievements on the protection of consumers or protest against unfair commercial competition; 

(5)         One representative to be selected among non-government organizations, other than those under (3) and (4), that are juristic persons, endorsed by the National Energy Policy Office, and that are non-profit making with objectives and previous achievements on energy conservation promotion. 

The Screening Committee members shall have no right to be nominated Commissioners. 

The Screening Committee shall elect one among themselves as Chairman of the Screening Committee, and another one as Secretary to the Screening Committee. 

The Office shall be the administrative agency for the screening and selection of the Commissioners. 

  Section 13:   

The proceedings of the Commissioner selection and appointment shall be as follows: 

(1)     The Screening Committee shall consider and select persons with knowledge, expertise or experience as described under Section 10, having qualifications and not possessing any disqualification under Section 11, from the name list of interested persons and nominated persons, twice as many the number of the Commissioners to be appointed and shall present the names of selected persons to the cabinet; particulars of selected persons shall be clearly indicated, or testimonials illustrating that the persons are qualified in one of the fields specified under Section 10 shall be provided, together with a letter of consent of each nominated person; 

(2)     The cabinet shall further screen the nominated persons under sub-section (1) and select as many as the number of the Commissioners to be appointed and shall present the names of selected persons to the President of the Senate, together with the particulars referred to under (1); 

(3)     In the event that the number of individuals selected by the cabinet does not meet the required number of the Commissioners to be appointed, the Screening Committee shall again consider and select persons in line with (1), only for the missing number, for re-submission to the cabinet for re-selection under (2); 

(4)     The President of the Senate shall call a Senate meeting to pass a resolution endorsing the whole set of nominated persons under (2); 

(5)     In the event that the Senate’s resolution under sub-section (4) does not endorse the whole set of nominated persons, the Screening Committee shall again consider and select persons in line with (1), for re-submission to the cabinet for re-selection under (2). 

For the initial appointment of the Commissioners, when the required compositions of the Commission are selected, all selected persons shall meet and elect one among themselves as Chairman of the Commission and inform the Prime Minister; the latter shall present the names of the nominated Commissioners to His Majesty the King for appointment. 

  Section 14:   

A Commissioner shall: 

(1)         Not be a civil servant with an assigned post or a fixed monthly salary; 

(2)         Not be a staff member or employee of a government agency, a state enterprise, or a local government affairs bureau, or a member or an advisor of a government agency or a state enterprise; 

(3)         Not be a staff member or hold any position or be in partnership in a partnership company, a company or an organization operating energy businesses or activities; 

(4)         Not undertake any freelance occupation or profession that has a stake or conflict of interest, either directly or indirectly, with the execution of duties as a Commissioner. 

In case the Senate has endorsed a person under (1), (2), (3) or (4), the Prime Minister shall not present his name to His Majesty the King for appointment unless the person has divested himself of the status specified under (1), (2) or (3) or has shown an acceptable proof that he has quit the occupation or profession under (4) within 15 days as from the date on which the Senate has given the endorsement.  If no action is taken within the specified period of time, the person shall be considered as never having been selected prospective Commissioner.  A selection and endorsement of an alternative person shall be made. 

  Section 15:   

The appointed Commissioners shall hold office for a term of six years as from the date of appointment by His Majesty the King and shall be in office only for one term. 

At the initial term, after three years’ time, two of the Commissioners, except the Chairman of the Commission, shall be discharged from office by drawing a lottery; such a discharge is regarded as the completion of the office term. 

The discharged Commissioners shall continue to perform their duties until His Majesty the King appoints new Commissioners.

The screening and selection of a new set of the Commissioners, pursuant to Sections 12 and 13, shall be made in advance, as deemed appropriate, in order that they are in place to take over the duties once the outgoing Commissioners complete their office term.  The Prime Minister shall present the names of the nominated Commissioners to His Majesty the King for appointment.   

  Section 16:  

Apart from leaving office upon completion of the term, a Commissioner shall retire from his office upon: 

(1)         Death;

(2)         Having attained the age of 70; 

(3)         Resignation; 

(4)         Lack of qualifications or having any disqualification under Section 11; 

(5)         The Senate has passed a resolution to dismiss the Commissioner from his office under the constitutional law on counter corruption. 

(6)         The Senate has passed a resolution, with no less than two-third of votes, to discharge the Commissioner. 

When a Commissioner retires from his office prior to the completion of the term, the remaining members shall continue performing their duties.  The Commission shall be regarded as comprising the remaining Commissioners, except for the case where the remaining Commissioners are less than three, in which the provisions of Section 15, Clause four thereof, shall apply mutatis mutandis. 

In the event that the Chairman of the Commission retires from his office under Clause one hereof or leaves office having completed his six-year term, the Commission shall hold a meeting to elect one among themselves as Chairman and report to the Prime Minister, who shall present the nomination to His Majesty the King for his gracious appointment as Chairman of the Commission. 

  Section 17:   

Within two years after retirement from his office, the ex-Commissioner shall be prohibited from undertaking a career or a freelance professional practice that brings about money or any benefits from a juristic person who is a licensee. 

  Section 18:   

At any meeting of the Commission, attendance of no less than half of the total membership shall be required to constitute a quorum. 

The Chairman of the Commission shall preside over the meeting.  In the event that the Chairman does not attend or is absent from the meeting or cannot perform his duties, the Commissioners present shall elect one among themselves to preside over that meeting. 

Any decision of the meeting shall be taken by a majority of votes.  Each Commissioner shall have one vote.  In the event that votes on each side are equal, the Chairman of the meeting shall have an additional vote as a casting vote. 

  Section 19:   

The Chairman of the Commission and the Commissioners shall be considered as high-ranking state officials under the constitutional law on counter corruption. 

  Section 20:   

The Commission shall have the power to appoint a sub-committee or a person to consider any matter or to carry out any task as assigned by the Commission. 

The working procedures of the assigned sub-committee or person shall be in line with those stipulated by the Commission. 

  Section 21:   

In carrying out their duties, the Commission, the sub-committee and the person appointed by the Commission under Section 20, Clause one thereof, shall have the power to instruct a government agency or any person to furnish facts in writing, to be present to provide explanations, or to send relevant documents and testimonials for consideration.  Any persons who provide misrepresentation of information shall be punished in line with the penalty clause stipulated under this Act. 

In performing their duties under Clause one hereof, the Chairman of the Commission, the Commissioners, the sub-committee and person appointed by the Commission under Section 20, Clause one thereof, shall be regarded officials under the Criminal Code. 

The Chairman of the Commission, the Commissioners, the sub-committee or person appointed by the Commission under Section 20, Clause one thereof, the Secretary General and the enforcement officers shall be regarded as state officials under the law on the officials’ liability for wrongful acts. 

  Section 22:   

The Commission shall have the power to designate particular documents or parts of documents, or any other information obtained under Section 21, as being confidential, on the basis that the public disclosure of such information would cause commercial damage to the party or parties supplying the information.  If the Commission has designated information to be confidential, the Commission shall not publicly disclose such information. 

  Section 23:   

Prior to making any decision or issuing any regulation, rule, announcement, code or order affecting the existing rights of a person or persons, the Commission shall provide the affected person or persons with the opportunity to make representations to the Commission, in accordance with the hearing process established by the Commission. 

  Section 24:   

In case the Commission concludes that a hearing would be appropriate in regard to any matter to be determined by the Commission or to its deliberation on issuing regulations, rules, announcements, codes or orders, the Commission may have a hearing organized, in accordance with the process established by the Commission. 

  Section 25:   

The Commission may issue written reasons in respect of any of its decisions or regulations, rules, announcements, codes or orders. 

The Commission shall issue written reasons in respect of any decisions or regulations, rules, announcements, codes or orders affecting the existing rights of a person, or persons, if the affected person, or persons, requests such written reasons. 

The Commission shall issue written reasons in respect of any decisions or regulations, rules, announcements, codes or orders resulting from a hearing held pursuant to Section 24. 

  Section 26:   

The Commissioners shall receive remuneration and other expenditures for the undertaking of their duties as specified in a royal decree; such expenses shall be considered as the operational cost of the Office. 

The remuneration and other expenditures for the work of the sub-committee and the person under Section 20 shall comply with the stipulation of the Commission.

The National Energy Regulatory Office

  Section 27:   

The National Energy Regulatory Office shall be established, being a state agency, with the status of a juristic person, and shall be under the supervision of the Chairman of the Commission. 

  Section 28:   

The Office shall have the authority and responsibilities on general tasks of the Commission and shall have the following duties: 

(1)         Being responsible for the administrative work of the Commission; 

(2)         Receive fees as specified by law or by the Commission; 

(3)         Receive petitions concerning energy business operations; 

(4)         Study, compile, analyze and disseminate data related to energy industry operations, competitive conditions of the industry, the forecast of domestic energy demand, and any other relevant information; 

(5)         Develop a revenue and expenditure estimate of the Office to be presented to the Commission for approval; 

(6)         Perform any other task as may be assigned by the Commission. 

  Section 29:   

The work of the Office is not subject to the enforcement of the laws on labor protection, labor relations, social welfare and compensation.  In this regard, the Secretary General, staff members and employees of the Office shall have remuneration of no less than that specified in those laws. 

  Section 30:   

The Chairman of the Commission, by and with consent of the Commission, shall have the authority to issue regulations or announcements on the general work administration, personnel management, budgeting, financing and assets, and other functions of the Office, especially in the following aspects: 

(1)         The division of the internal organizational structure of the Office and the scope of work of each division; 

(2)         The establishment of posts, monthly salary scale and other remuneration of the Secretary General, staff members and employees of the Office, including the permission to receive salary and remuneration from other sources; 

(3)         The determination of qualifications, selection, placement, appointment, probation, transfer, promotion, salary increase, discharge, service suspension, disciplines, disciplinary investigation and penalty, filing grievances, appeals, and punishment to be applied to the Secretary General and staff members of the Office, as well as the procedures and conditions of engaging employees of the Office; 

(4)         The acting as officer-in-charge or the acting for the post of the Secretary General and staff members of the Office, and the acting in place of the Secretary General in the event of the latter’s retirement from office under Section 33 or Section 34; 

(5)         The establishment of uniforms and the costume of staff members and employees of the Office; 

(6)         The engagement and appointment of an expert or a person who has particular expertise that will be helpful for the work of the Commission, including the remuneration rate for such an engagement; 

(7)         The management and administration of the budget, assets and inventories of the Office; 

(8)         The provision of welfare or other assistance for staff members and employees of the Office. 

  Section 31:   

There shall be Secretary General of the Office to be responsible for the operation of the Office and report directly to the Chairman of the Commission.  He shall be the superior official of the staff members and employees of the Office. 

  Section 32:   

The Chairman of the Commission, by and with consent of the Commission, shall have the authority to appoint and discharge the Secretary General. 

The Secretary General shall have the qualifications and shall not possess any disqualification described in Section 11 and Section 14, Clause one thereof. 

  Section 33:   

The Secretary General shall hold office for a term of five years counting from the date of appointment and may be re-appointed; however, he cannot hold office more than two consecutive terms. 

  Section 34:   

Apart from leaving office upon completion of the term under Section 33, the Secretary General shall retire from his office upon: 

(1)         Death; 

(2)         Having attained the age of 60; 

(3)         Resignation; 

(4)         Having been convicted and sentenced by a final judgement to imprisonment, except for offenses committed by negligence or petty offenses; 

(5)         Lack qualifications or possess any disqualification described in Section 11 or Section 14, Clause one thereof; 

(6)         The Commission has passed a resolution, derived from no less than two-third of votes of the total Commissioners, to dismiss him from service, on the grounds of serious misconduct, serious malfeasance or inability to perform his duties. 

  Section 35:   

The Secretary General and staff members of the Office shall be considered state officials under the constitutional law on counter corruption. 

The Secretary General shall be a high-ranking official under the constitutional law on counter corruption. 

In performing their duties under this Act, the Secretary General and staff members of the Office shall be considered officials under the Criminal Code.

  Section 36:   

The Office shall have revenue from the following: 

(1)         Revenue or benefits obtained from the implementation of duties as assigned to the Commission and the Office; 

(2)         General subsidy allocated by the government; 

(3)         Money and assets donated to the Office; 

(4)         Revenue from the assets of the Office. 

The revenue of the Office under Clause one hereof is exempted from being remitted to the Ministry of Finance under the laws on treasury balance and on budgetary procedure. 

  Section 37:   

The Commission shall present to the NEPC for approval the operational plan, expenditure budget and revenue estimation in each fiscal year of the Commission and the Office, including determinations of fees and other benefits under Section 36(1). 

In the event that the revenue under Section 36(1), (3) and (4) is inadequate, the Office shall request allocation of subsidy from the government budget under Section 36(2) at the amount deemed necessary and adequate for its operation. 

When the approval of the determinations of fees and other benefits under Clause one hereof is granted, the Commission shall determine the fees and other remittance rates so that the Office would obtain revenue according to the operational plan approved by the NEPC. 

With regard to the subsidy to be allocated from the government budget, the NEPC shall present to the cabinet the expenditure budget of the fiscal year for which the assistance is being requested.  The allocation of the general subsidy for the Office shall be incorporated into the Fiscal Budget Bill or the Additional Budget Bill, as the case may be. 

In carrying out the action under Clause four hereof, the NEPC and/or the cabinet may incorporate the comments of the Office on the budget allocation into the report attached to the proposed Fiscal Budget Bill or the Additional Budget Bill.  In considering the Fiscal Budget Bill or the Additional Budget Bill, the House of Representatives or the Senate may require the presence of the Secretary General to provide explanations for their consideration. 

  Section 38:   

The Office shall have the authority to administer, oversee, maintain, use and make profits from its assets, both the state properties under the law on state properties and other assets, which must be in line with the regulations prescribed by the Commission. 

  Section 39:   

All immovable properties acquired by the Office through purchase by or exchange with the revenue of the Office, or through donation, shall become under the rights of the Office.   

  Section 40:   

The accounting of the Office shall be made according to the international standards under the format and criteria specified by the Commission.  An internal audit of the Office’s finance and accounting as well as inventories shall be established.  A report on the audit outcome shall be made to the Commission at least once a year. 

In carrying out the internal audit, a staff member of the Office shall be assigned to perform this particular task and shall report directly to the Commission according to the regulations set by the Commission. 

  Section 41:   

The Office shall develop balance sheets, financial statements and work sheets to be submitted to the internal auditor within 120 days as from the end of each fiscal year. 

In each year, the Office of the Auditor-General of Thailand shall audit and evaluate the budget expenditure and the utilization of the Office’s assets, by providing analytical comments on the efficiency of the budget utilization to achieve the objectives and targets, and how economical it has been. 

The Office shall be an agency subject to auditing under the constitutional law on the government audit. 

  Section 42:   

At the end of each fiscal year, the Commission shall have to prepare an annual report to be presented to the NEPC, the cabinet and the Parliament.  The report shall also be publicized.  The report shall cover the achievements of the Commission and the Office in the past year, together with the rationales of the decisions made in the reporting period.  Also to be illustrated are the balance sheets, financial statements and work sheets together with the auditor’s report, including the future operational plans of the Commission and the Office.

License Issuance for Energy Industry Operation

  Section 43:   

No person shall operate an energy-related activity, either with or without benefits, unless a license is obtained from the Commission. 

No person shall establish or expand or own an energy activity facility prior to being granted a license.

The NEPC shall have the authority to specify certain categories or characteristics of energy activities that are exempted from the license requirement under this Act; however, it may be required that such exemptions be notified to the Office. 

The operation of energy activities that require a license under this Act shall not include the petroleum industry under the law on petroleum. 

The undertaking of energy activities that require a license under this Act shall be exempt from the requirement for a designated energy production license under the law on energy development and promotion and shall not require authorization pursuant to Section 37 under the law on the Electricity Generating Authority of Thailand. 

  Section 44:   

The Commission shall have the power to order business operators whose businesses fall into the categories or characteristics of energy activities designated under this Act and who have not obtained any license to stop or suspend the operation or to disconnect from the energy network system. 

  Section 45:   

The licenses under Section 43 govern the following: 

(1)         Power generation; 

(2)         Power transmission system; 

(3)         Power distribution system; 

(4)         Dedicated power network system; 

(5)         Bulk purchasing of power; 

(6)         Bulk selling of power; 

(7)         Retailing of power; 

(8)         Power transmission system operator; 

(9)         Power market operator; 

(10)     Power purchase settlement administrator; 

(11)     Natural gas transmission system; 

(12)     Natural gas distribution system;

(13)     Dedicated natural gas network system; 

(14)     Bulk purchasing of natural gas; 

(15)     Bulk selling of natural gas; 

(16)     Retailing of natural gas; 

(17)     Natural gas network system operator; 

(18)     Natural gas market operator; 

(19)     Natural gas purchase settlement administrator; 

(20)     Natural gas storage; 

(21)     Other activities as specified by a royal decree. 

The royal decree referred to in sub-section (21) shall be issued by and with the advice of the NEPC. 

  Section 46:   

Qualifications of a licensee, procedures of the application for a license, criteria, conditions and license processing time, including the license fee and the fee for the energy business operation shall be in line with the stipulations of the Commission, which must correspond with the energy network system expansion plans to be approved by the NEPC. 

  Section 47:   

Criteria and conditions in granting a license under Section 46 may cover the following aspects: 

(1)         The site for the establishment and the surrounding conditions of the energy activity facility;

(2)         Technical, engineering and safety standards; 

(3)         Customer service and quality standards; 

(4)         Tariff provisions; 

(5)         Environmental, economic and social aspects; 

(6)         Efficiency in energy and resource utilization;

(7)         Efficiency in business operation and service provision; 

(8)         Categories and types of fuel, including requirements for the use of renewable energy; 

(9)         Process and technology used in business operation;

(10)     Extension, suspension and cancellation of a license;

(11)     Protection against and solution to energy shortage; 

(12)     Competitive conditions in the energy industry; 

(13)     Shareholding structure and shareholding in other energy-related corporations; 

(14)     The hearing process and public relations to raise understanding of the public and stakeholders;

(15)     Measures to alleviate impacts on the community and the environment in the vicinity of the energy activity facility;

(16)     Report on energy-related information to the Commission. 

  Section 48:   

In the event that a person who receives a license under Section 45 wishes to commence any part of his energy activity, the licensee shall have to inform the Secretary General prior to the commencement date of the operation according to the period of time specified by the Commission. 

In case a trial run of the machine or equipment will be carried out prior to the commencement of the energy activity under Clause one hereof, the licensee shall have to inform the Secretary General of the date, time and duration of such a trial run at no shorter time than that specified by the Commission. 

  Section 49:   

The licensee shall pay for the license fee and the fee for the energy business operation to the Office according to the rates and regulations set by the Commission. 

  Section 50:   

The licensee who is an energy network system operator shall carry out his business on a fair basis and shall not unjustly discriminate against any person. 

  Section 51:   

The duration of the energy business operation shall accord with the duration specified in the license.

In requesting extension of a license, the licensee shall have to submit a petition for such extension before the license expires.  After the submission, the petitioner will continue to be regarded as a licensee until a contrary notification is received.

The petition submission for license extension and the granting of license extension shall be in line with the criteria, procedures and conditions stipulated by the Commission. 

  Section 52:   

The licensee shall not sell, lease or otherwise dispose of part or all of the rights in providing services to another person, unless approved by the Commission, according to the criteria, procedures and conditions specified by the Commission. 

  Section 53: 

The Commission may suspend or cancel a license, as deemed appropriate, if the concerned licensee has violated the provisions of this Act, or rules, regulations, orders or codes issued under this Act, or when the licensee has been found to lack the qualifications stipulated by the Commission. 

Prior to ordering the suspension or cancellation of a license under Clause one hereof, the Commission shall give the licensee the opportunity to make representations to the Commission, in accordance with Section 23. 

The Commission may modify the terms of a license, in view of a change in circumstances, after giving the licensee the opportunity to make representations to the Commission.

  Section 54:   

In the event that occasional energy shortage may occur or that it is essential to reserve fuel for the security or economic benefits of the country, the Commission shall have the authority to instruct licensees to reduce or increase their energy production, distribution or utilization.  This must be in compliance with the criteria, procedures and conditions prescribed by the Commission. 

  Section 55:   

Licensees and their staff are prohibited to halt or discontinue their services, except that they have taken actions in conformity with the criteria, procedures and conditions prescribed by the Commission. 

Any actions leading to the dissolve of the juristic person status of the licensee must receive approval of the Commission in order to be legally effective.

The Commission will not give approval under Clause two hereof if it entails a serious adverse impact on the general public. 

  Section 56:   

Any licensee who wishes to discontinue the energy business operation shall have to inform the Secretary General in writing no less than 180 days in advance.  

In order to maintain the continuity of the energy business operation, after the licensee has discontinued his operation, pending another licensee to take over his operation, the Commission shall have the authority to grant approval for the Office, a government or private agency to temporarily run the business.  

The Office, the government or private agency that runs the business under Clause two hereof shall be exempted from the requirement of a license to operate the energy business and shall have the right to use the equipment of the licensee under Clause one hereof, as deemed necessary, to maintain the continuity of the energy service provision.

The apportionment of the revenue derived from the business operation under Clause two hereof between the replacing operator and the former licensee shall be in line with the criteria prescribed by the Commission. 

  Section 57:   

In the case where the Commission views that the manner of service provision of a licensee may cause damage to service consumers or other energy business operators, the Commission shall have the authority to order that licensee to improve his service operation within the period of time determined by the Commission. 

  Section 58:   

The licensees shall submit information pertaining to their energy business operations, using the given format and within specified schedule, to the Commission. 

The licensees shall prepare an account illustrating the financial status and financial statements, according to the criteria and procedures specified by the Commission, using the accounting standards under the law on accounting.  In this respect, the energy network system licensees shall have to distinctly separate the account and balance sheet of the energy network system operation from those of other business categories.

The determination of tariffs by licensees shall be based on the following principles: 

(1)         Fairness is shared by both service consumers and service providers; 

(2)         There shall be no unjust discrimination against service consumers or those who wish to use the services; 

(3)         The tariffs should reflect the actual costs of efficient business operation; 

(4)         Guidelines on the tariff determination must be inductive to efficiency improvement in the business operation; 

(5)         The tariffs should be at the levels enhancing efficient and adequate energy supply to satisfy the domestic demand; 

(6)         Consideration should be given on assistance to the underprivileged or the decentralization of development to provincial areas; 

(7)         There must be an announcement and dissemination of the accountable and transparent tariffs; 

(8)         The calculation from which the tariffs are derived must be explicit.

  Section 60:   

The Commission shall regulate the licensees’ tariffs to ensure that they are in line with the policy prescribed by the NEPC. 

The regulation under Clause one hereof shall be in line with the criteria, procedures and conditions established by the Commission. 

  Section 61:   

In carrying out the implementation under Section 60, the Commission may establish the tariffs or may direct licensees to propose the tariffs or the tariff revision to the Commission for approval. 

Licensees shall be prohibited from collecting tariffs at the rates other than those approved by the Commission under Clause one hereof. 

  Section 62:   

Licensees shall publicize and announce the tariffs as approved by the Commission, according to the criteria specified by the Commission. 

  Section 63:   

In the case where the Commission views that the approved tariff become inappropriate due to the changing economic and social conditions or the technological evolution, causing disadvantages for service consumers, the Commission shall have the power to order the licensees to propose a new tariff for the Commission’s approval within the period of time determined by the Commission. 

In the event that the economic or social conditions have changed or there arises an incident causing the tariff initially approved by the Commission to become inappropriate, the licensees may petition for tariff revisions to the Commission.

Establishment of Energy Industry Operation Standards and Equipment Standards

  Section 64:   

In carrying out energy industry operations, the technical characteristics shall have to be in line with the engineering and safety standards under the regulations prescribed by the Commission. 

In the event that the energy industry operation of a licensee fails to comply with the characteristics and standards referred to under Clause one hereof, the Commission shall have the power to order the licensee to improve or to take corrective measures, pursuant to the regulations prescribed by the Commission. 

  Section 65:   

The technical characteristics and standards of equipment to be connected to the energy network system shall be in conformity with the regulations announced by the Commission. 

  Section 66:   

The Commission may issue an instruction requiring that the standards of certain categories of equipment to be connected to the energy network system be tested and certified prior to their utilization in energy services provision. 

  Section 67:  

The licensees shall have to undertake the maintenance, repair and improvement of the energy network system, equipment and appliances utilized in the energy business operation to ensure that their efficiency and standards comply with the regulations referred to under Section 64, Clause one thereof.  If there is any damage or breakdown, repair must be expeditiously taken to restore the operation. 

  Section 68:   

In establishing the technical characteristics and standards referred to under Section 64, Clause one thereof, the Commission may refer to the characteristics and standards established by other agencies under the authority and duties specified in other pieces of legislation. 

The Commission may assign, in its place, any other agency to be responsible for the testing and certification of the technical characteristics and standards under Clause one hereof.

  Section 69:   

The Office shall have the authority to undertake the testing and certification of standards of the equipment referred to under Section 66 or when there is a request from a person who wishes to have the standards tested and certified. 

The testing and certification of standards under Clause one hereof shall comply with the regulations stipulated by the Commission. 

  Section 70:   

Whoever wishes to establish an agency for the testing and certification of standards of equipment to be used in the energy industry or connected to the energy network system must obtain a license from the Commission. 

Qualifications of the applicant for a license, the submission of request for a license, the license granting, the duration of a license, the license fees, and the testing and certification fees shall be in line with the criteria, procedures and conditions established by the Commission. 

There shall be inspectors at each testing and certification agency.  The Commission will determine relevant conditions, as deemed appropriate, on a case by case basis. 

  Section 71:   

In the following cases, the Commission shall have the power to terminate the license for the establishment of a testing and certification agency: 

(1)         The licensee of the establishment of a testing and certification agency lacks qualifications stipulated in the announcement issued under Section 70, Clause two thereof; 

(2)         The testing and certification agency dishonestly implements the testing and reports the outcome of the testing or certification; 

(3)         The testing and reporting on the outcome or the certification is delayed without appropriate reasons, causing serious damage to the person requesting the testing; 

(4)         The inspectors of the testing and certification agency fail to meet all qualifications, or the number of the inspectors is less than that determined by the Commission.

Energy Network System

  Section 72:   

Energy network system licensees shall provide services pursuant to the energy network system expansion plan. 

The Power Pool and the controlled grid licensees shall jointly develop the controlled grid expansion plans for submission to the Commission for consideration under the scope and criteria specified by the Commission.

Licensees who are energy network system operators, except controlled grid licensees under Clause two hereof, shall develop their respective energy network system expansion plans for submission to the Commission for consideration under the scope and criteria specified by the Commission. 

In considering the energy network system expansion plans, the Commission shall organize a hearing in accordance with Section 24.  In considering the power distribution system expansion plans, the Commission shall solicit the Power Pool Board for comments for their consideration. 

The Commission shall present to the NEPC for approval the energy network system expansion plans together with comments of the Commission and/or comments of the Power Pool Board and/or the outcome of the hearing organized pursuant to Section 24. 

Energy network system licensees shall periodically review their energy network system expansion plans according to the criteria established by the Commission.

  Section 73:   

An energy network system licensee must allow other licensees to utilize his energy network system or agree to connect his energy network system with other licensees’ in accordance with the criteria and conditions stipulated by the Commission. 

Refusals to allow access to others or to connect with another energy network system are permitted only for cases specified in the announcement by the Commission. 

In the event that the licensee has previously been granted a license or concession for power distribution pursuant to the Revolutionary Decree No. 58, B.E. 2515, the Commission shall take into consideration, when establishing the criteria and conditions referred to in Clause one hereof, the existing benefits of the licensee and any provisions in a license granted pursuant to Section 175, that are designed to protect the existing economic benefits of the licensee. 

  Section 74:  

The energy network system licensees, with the Commission’s approval, shall publicize the requirements for the connection to the energy network system, for the use of the energy network system facilities and for the energy network system operation. 

The requirements under Clause one hereof shall be based on the following principles: 

(1)         They must not deprive service consumers of benefits; 

(2)         They must not discriminate or hinder other licensees; 

(3)         The technical requirements at the end-use points or at the point of connection to the energy network system must be clear, technically feasible and must not create excessive burden for the person who requests to utilize or connect to the system; 

(4)         Duties and responsibilities of both the person who requests to utilize or connect to the energy network system and the owner of such a system must be clearly specified; 

(5)         Any other characteristic as may be specified by the Commission.   

  Section 75:  

When a refusal to allow access to an energy network system occurs, the person who has been refused has the right to submit a petition to the Commission, in accordance with the consideration criteria and procedures established by the Commission. 

When the Commission has made a decision on the petition under Clause one hereof, the concerned parties shall have to comply with the decision. 

  Section 76:   

An energy network system licensee shall provide a person who requests to utilize or connect to his energy network system with accurate information necessary for the utilization or connection to the system.  He shall not take any action that would disrupt the normal operation of the other licensee utilizing or connecting to his energy network system. 

  Section 77:   

An energy network system licensee must disclose the contracts, agreements, conditions and tariffs for the utilization or connection to his energy network system, according to the procedures established by the Commission. 

  Section 78:  

The provisions of Sections 72, 73, 74, 75, 76 and 77 shall not apply to dedicated energy network system licensees.

ENERGY CONSUMER PROTECTION 

Service Extension and Service Standards
  Section 79:   

The licensees shall provide energy services pursuant to the standards established by the Commission. 

The service standards under Clause one hereof shall include technical and engineering standards as well as service quality standards.

The Commission shall establish a punishment clause to be imposed on licensees who fail to meet the standards specified under Clause one hereof, including the compensation payment to service consumers, fine payment to the Fund and tariff reduction, according to the regulations established by the Commission. 

The licensees shall submit a report on the service quality to the Commission, according to the regulations established by the Commission.

  Section 80: 

The Commission may assign a licensee to provide energy services in a particular locality where no service provider exists or where the services are not comprehensive or are inadequate to meet the local demand.he assignment under Clause one hereof shall be in line with the policy set by the NEPC. 

  Section 81:  

The Commission shall have the power to issue an order governing the standards of contracts and conditions on the energy service provision.  The Commission may also specify matters on which contracts or conditions do not require approval by the Commission. 

Contracts and conditions of which the Commission will consider granting approval must have, among others, the following aspects: 

(1)         Provisions on duties and responsibilities of both the licensee and the service consumer must be clearly illustrated; 

(2)         There must be no provisions that restrict the service consumer’s utilization of services, without appropriate reasons; 

(3)         There must be no provisions that unjustly discriminate or hinder the service consumer. 

  Section 82:   

The licensee must publicize the format of contracts and conditions of services offered to energy consumers in accordance with the directive issued by the Commission, and must publicly display the contract format and conditions at his business office to allow inspection by the public.

The Power Consumer Assistance Fund

  Section 83:   

A fund shall be set up in the Office, under the name “Power Consumer Assistance Fund,” to be used as subsidies for certain groups of power consumers.  The Fund shall consist of the following capital and assets: 

(1)         The contributions delivered under Section 85; 

(2)         Subsidy from the government, at times as appropriate; 

(3)         Fines obtained pursuant to Section 79, Clause three thereof; 

(4)         Interest and other benefits incurred from this Fund. 

The Office shall keep and manage the money and assets of the Fund and shall handle the procedures of disbursement of the Fund under this Act. 

  Section 84:   

The Fund shall be used as subsidies for underprivileged power consumers or to enhance widespread electrification or to support the policy on decentralizing development to regional areas, as deemed necessary. 

The Commission shall determine the contribution rates to be sent to the Fund and the subsidy rates from the Fund in accordance with the policy provided by the NEPC, taking into consideration impacts on power consumers who have to shoulder the burden of such subsidization. 

  Section 85:   

In the case where the Commission has given a directive to collect contributions from power consumers to be sent to the Fund, power consumers shall send contributions to the Fund at the rates and for the durations specified by the Commission. 

In delivering contributions to the Fund under Clause one hereof, direct access customers shall pay contributions to the Power Pool.  Other power consumers shall pay contributions to power retailers and the power retailers shall compile such contributions and send them to the Power Pool, according to the regulations established by the Commission. 

The Power Pool shall deliver the contributions received from direct access customers and power retailers under Clause two hereof to the Fund, in accordance with the regulations issued by the Commission. 

  Section 86:  

Where the Commission has determined that subsidy payments from the Fund should be made to power consumers, the Power Pool shall pay a subsidy to direct access customers, and the power retailers shall pay a subsidy to other power consumers, at the rates and for the durations specified by the Commission.

To obtain reimbursement of subsidy payments made under Clause one hereof, power retailers shall submit requests for reimbursement to the Power Pool, in accordance with the regulations issued by the Commission.  

The Power Pool shall compile all such subsidies and reimburse the money from the Fund, according to the regulations issued by the Commission. 

  Section 87:   

In the event that the person who has the duty to send contributions to the Fund under Section 85 fails to send contributions, or sends less than the required amount of contributions to the Fund, the Power Pool shall redress the matter so that the contributions are sent to the Fund and shall have the person pay a surcharge according to the regulations stipulated by the Commission.  The surcharge shall be regarded as part of the contributions to be sent to the Fund as well. 

If the Power Pool has taken actions under Clause one hereof, but the person who has the duty to send contributions to the Fund still declines to send contributions together with the surcharge, or sends less than the required amount, the Power Pool shall expeditiously take legal proceedings against the person pursuant to Section 161.

Rights and Protection of Energy Consumers

  Section 88:   

For purpose of protecting energy consumers, the Commission shall appoint the Regional Energy Consumer Committee in each region, comprising one Chairman and other members, not exceeding 20 persons, representing energy consumers in a given region; their authority and duties are to: 

(1)         Give advice to the Commission on energy consumer protection issues; 

(2)         Propose corrective and improvement measures regarding energy services; 

(3)         Consider petitions from energy consumers and give advice to energy consumers; 

(4)         Co-ordinate with energy business operators with a view to improving service quality and finding solutions to the petitions; 

(5)         Invite any person to provide facts, explanations, recommendations or opinions; 

(6)         Perform any other task as may be assigned by the Commission. 

The Commission shall determine the qualifications, terms of office, working procedures and remuneration of the Regional Energy Consumer Committee; expenses related to the work of the Regional Energy Consumer Committee shall be regarded as part of the expenditure of the Office.

The division of regional areas under Clause one hereof shall be assigned by the Commission.

  Section 89:   

In the event that an energy consumer is adversely affected from the energy service provision of an energy retailer, the person may present a complaint to the applicable Regional Energy Consumer Committee.  The Regional Energy Consumer Committee shall endeavour, within 60 days, to mediate the dispute.  If, after 60 days, the dispute has not been resolved, the energy consumer in question may present a petition in writing to the Commission, via the Office. 

A petition under Clause one hereof shall explicitly indicate the facts and shall also contain a statement of any evidence relevant to the petition, if any. 

  Section 90:   

The Commission shall finalize its consideration of a petition presented pursuant to Section 89 within 60 days from the date of receipt of the petition.  The parties involved in the matter shall be given an opportunity to provide facts and evidence.  When the Commission has made a final decision, all parties concerned must comply with the decision. 

  Section 91:   

In the case where an energy consumer has found that a licensee collects tariffs, fees or any other charge at a higher rate than that approved by the Commission or than that collected from other energy consumers, using energy services of the same characteristics or categories, or that the licensee unfairly provides services, the energy consumer shall have the right to request information on his service utilization from the licensee. 

The licensee shall have to provide the information under Clause one hereof to the energy consumer within 30 days from the date on which the request is received.  If required by the energy consumer, the licensee shall have to provide him with a document certifying correct information accordingly.

  Section 92:  

In case there are reasonable grounds for suspicion that a licensee unjustly or unfairly collects tariffs, fees or any other charge in any manner under Section 91, Clause one thereof, the energy consumer shall have the right to submit a petition to the Commission.  The provisions of Sections 89 and 90 shall apply mutatis mutandis.

Promotion of Competition and Prevention of Abusive Use of Monopoly Power

  Section 93:  

Any holder of a license issued under this Act shall be exempted from the provisions of the Competition Act, B.E. 2542 (1999). 

  Section 94:   

A licensee who is an energy producer, energy bulk seller, energy bulk purchaser or energy retailer, having market power, shall be prohibited from taking any of the following actions: 

(1)         To set energy prices at levels inconsistent with the criteria, procedures and conditions set by the Commission pursuant to Section 60; 

(2)         To establish conditions in an unfairly manner that directly or indirectly compel other energy business operators or energy consumers to have constrained opportunity to utilize or provide services; 

(3)         To halt, reduce or limit the services without appropriate grounds; 

(4)         To interfere in the business operations of others without appropriate grounds; 

(5)         To practice or take any actions that would unfairly obstruct or limit competition. 

  Section 95:   

A licensee who is an energy producer, energy bulk seller, energy bulk purchaser or energy retailer shall be prohibited from co-operating with another licensee in such manners that will monopolize or reduce competition or limit competition in the energy service provision as the following: 

(1)         To set selling prices at mutually agreed rates; 

(2)         To set buying prices at mutually agreed rates; 

(3)         To conspire to dominate the market or increase market power; 

(4)         To conspire the establishment of agreements or conditions so that one party would be awarded in a tariff bidding or contest, or so that one party could not participate in such a bidding or contest; 

(5)         To divide the areas where each licensee will be able to sell or reduce energy services, or to designate customers for whom each licensee can provide services without competition from other licensees for the same services; 

(6)         To divide the areas where each licensee will be able to buy energy services, or to designate the persons from whom the licensee can buy energy services; 

(7)         To determine the amount of energy services that each licensee will provide in order to limit the amount to be lower than the market demand; 

(8)         To appoint or assign a sole person to provide the same energy service or the same category of services. 

In case it is necessary to take actions under sub-section (5), (6), (7) and (8) for a particular period of time, the licensees shall have to submit a request for permission to the Commission. 

  Section 96:   

No energy network system licensee or subsidiary of an energy network system licensee or its board members, senior staff members, including their spouses and children, who have not reached maturity, shall hold any share in a corporation being a licensee of energy generation, or shall be a licensee operating an energy generation business, or shall purchase all or part of shares of a corporation being a licensee of energy generation, or shall execute a contract which brings about benefit apportionment with a licensee of energy generation, unless the licensee or its subsidiary or such a person has first submitted a request to do so to the Commission and the Commission’s response is the following: 

(1)         The Commission has not issued a notice of review of the request within 60 days as from the date of receipt of the request; or 

(2)         The Commission has approved the request pursuant to Section 98. 

The provision under Clause one hereof shall not apply to dedicated energy network system licensees.

  Section 97:  

No energy generation licensee or subsidiary of an energy generation licensee or its board members, senior staff members, including their spouses and children, who have not reached maturity, shall hold any share in a corporation being a licensee of an energy network system, or shall be a licensee operating an energy network system, or shall purchase all or part of shares of a corporation being a licensee of an energy network system, or shall execute a contract which brings about benefit apportionment with a licensee of an energy network system, unless the licensee or its subsidiary or such a person has first submitted a request to do so to the Commission and the Commission’s response is the following: 

(1)         The Commission has not issued a notice of review of the request within 60 days as from the date of receipt of the request; or 

(2)         The Commission has approved the request pursuant to Section 98. 

The provision under Clause one hereof shall not apply to the shareholding in a dedicated energy network system. 

  Section 98:  

If the Commission has issued a notice of review pursuant to Section 96 or Section 97, it shall expeditiously proceed to review the request. 

The Commission shall approve a request submitted under Section 96 or Section 97 if it determines that: 

(1)         The impact of the request would not adversely affect competitive conditions of the energy industry; and 

(2)         The request will contribute to maintaining the reliability of the energy network system of the relevant energy network system licensee. 

Unless the Commission makes the determination described in (1) and (2) above, it shall not approve a request submitted under Section 96 or Section 97. 

  Section 99:   

In the event that the licensees contravene Sections 94, 95, 96 or 97, the Commission shall have the power to take the following actions so as to increase competition: 

(1)         To modify, suspend or terminate the applicable licenses; 

(2)         To order the Power Pool Board and the energy network system licensees to amend the Market Rules as well as the requirements for the connection to the energy network system, for the use of the energy network system facilities and for the energy network system operation; 

(3)         To order the licensees to halt, discontinue or correct the abusive use of market power or to modify their market shares. 

The proceedings, criteria, conditions and methods of the Commission’s implementation under Clause one hereof shall be in accordance with the regulations issued by the Commission. 

In case the licensees who receive the order described in Clause one (1), (2) or (3) hereof are dissatisfied with such an order, they shall have the right to petition pursuant to Section 143. 

The licensees shall not be entitled to claim from the Commission for any damage resulting from the Commission’s order described in Clause one (1), (2) or (3) hereof.

UTILIZATION OF IMMOVABLE PROPERTY

  Section 100:   

When it is necessary for a licensee to acquire immovable property for purpose of constructing an energy network system, expropriation of property shall be made by the Office under the provisions of the law on the expropriation of immovable property.  The licensee shall pay the compensation and expenses incurred for such expropriation. 

  Section 101:   

For purpose of survey, construction or maintenance of an energy network system, an enforcement officer or a licensee, with approval of the Commission, shall have the power to temporarily make use or take possession of the immovable property of any person, so long as it is not his dwelling place, subject to the following conditions: 

(1)          Such use or possession is necessary for the survey, construction or maintenance of the energy network system or for the prevention of danger or damage which may be caused to the energy network system; 

(2)          The licensee shall have informed the owner or right holder of the immovable property in advance.  The intimation must be given in writing to the owner or right holder of the immovable property for a reasonable period of time, but not less than seven days.  In the case where the owner or right holder of the property could not be contacted, such a notice shall be announced for acknowledgment of the owner or right holder of the property no less than 30 days in advance.  The announcement shall be made by pinning up the written notice at the site where the property is situated and at the District Office or Amphoe Office, the Sub-district Office and the Office of the Village Headman where the immovable property is situated; the date, time and nature of the aforesaid act shall be indicated therein. 

If any damage or depreciation of economic use of the land or immovable property occurs resulting from the act under Clause one hereof, the licensee shall pay a compensation to the owner or right holder of the immovable property according to the criteria and methods specified by the Commission.  In this regard, the amount of such compensation shall be calculated from the actual damage, including loss of economic benefits that should have been gained from the use of the concerned property. 

The owner or right holder of the immovable property may submit a petition giving reasons rendering such an act inappropriate or claiming an amount of compensation to the Commission within 90 days as from the receipt date of the written notice. 

The Commission shall decide on the petition under Clause three hereof within 60 days as from the receipt date of the petition. 

The decision of the Commission shall be treated as final. 

  Section 102:   

In constructing an energy network system, an enforcement officer or a licensee, by permission of the Commission, shall have the power to implement either one, or both, of the following: 

(1)          To construct the energy network system under, above, along or across the land belonging to any person; 

(2)          To demolish buildings or any structures which are not dwelling places of any person, or to destroy other things that were constructed or made, or to destroy or cut trunks, branches or roots of trees or plants in the right-of-way of the energy network system. 

Before the implementation of the aforesaid in (1) and/or (2), the licensee shall, in writing, inform the owner or right holder of the assets concerned; the provisions of Section 101, Clause one (2) thereof, shall apply mutatis mutandis.

The execution under (1) and/or (2) shall be carried out only to the extent that is considered necessary, with the least impact on the right of the owner or right holder of the immovable property to use the property, except for the case where it is extremely necessarily unavoidable; the provisions of Section 101, Clause two, Clause three, Clause four and Clause five thereof, shall apply mutatis mutandis. 

  Section 103:   

The licensee and the owner or right holder of the immovable property shall make an agreement to invest the former with the right to use the immovable property under Section 102 within 60 days as from the date on which the owner or right holder of the immovable property receives the written notice from the licensee under Section 102, Clause two thereof. 

The agreement under Clause one hereof shall not severely disturb the utilization of the immovable property.  In case that immovable property will be utilized for other purposes, which are allowed by law, such utilization shall be restricted so as not to disturb the utilization of that immovable property.  In case construction of a structure is involved, it shall be limited to the purpose of supporting the energy network system used in the energy industry only.  In the agreement, details of the right to be invested regarding the use of the immovable property must be specified, together with the types and numbers of pipings, lines or equipment used in the energy business, the commencement date of the exercise of the right, the duration of the right, the determination of compensation to the owner or right holder of the immovable property, and the compensation payment method. 

  Section 104:   

In the case where the agreement under Section 103 can be reached, the licensee and the owner or right holder of the immovable property shall inform the Commission for acknowledgment. 

In the case where the agreement under Section 103 cannot proceed or cannot be reached, the licensee may submit a petition to the Commission to make a decision.  When the petition is received by the Commission, a copy of the petition shall be sent to the owner or right holder of that immovable property for acknowledgment within 30 days as from the receipt date of the petition.  The owner or right holder of the immovable property may express his comments in writing to the Commission within 15 days as from the receipt date of the copy of the petition.  When the said period is over, the Commission shall expeditiously make a decision pursuant to Section 103, which provides details of the right of use for purpose of the energy business, the commencement date of the exercise of the right, the duration of the right and the determination of compensation to the owner.  The Commission shall, without delay, intimate the decision to the licensee and the owner or right holder of the immovable property. 

When the Commission has made a decision, the licensee, or stakeholders, shall have the right to appeal against the decision to the Commission within 60 days as from the date of acknowledgment of the decision. 

The Commission’s decision on the appeal shall be treated as final. 

  Section 105:   

When the duration of the right in the immovable property as agreed under Section 103 expires, if a licensee wishes to continue using the immovable property, the investing of the right shall be agreed upon with the owner or right holder of the immovable property.  When the agreement is reached, the details of the agreement shall be sent to the Commission for acknowledgment.  If the agreement cannot proceed or cannot be reached, the licensee may submit a petition to the Commission to make a decision by applying mutatis mutandis the provisions of Section 104, Clause two, Clause three, and Clause four thereof, to the decision making and to the appeal.  In this regard, the licensee shall be entitled to use the immovable property as formerly agreed upon until the final decision instructs otherwise. 

  Section 106:   

When a licensee has used the immovable property under Section 102 and if any damage occurs, excluding those specified in the agreement under Section 103, the licensee shall pay for the damage.  If no settlement can be reached, the licensee or the person who is affected by the damage may submit a petition to the Commission to make a decision, by applying mutatis mutandis the provisions of Section 104, Clause two, Clause three and Clause four thereof, to the decision making and to the appeal. 

  Section 107:   

In the case where the energy network system or the equipment used in the energy network system under Section 102 has severely caused a disturbance or an obstacle to the economic use of the immovable property of its owner or right holder due to the change of the purpose or method of utilizing the immovable property, when the owner or right holder has lodged a petition, the licensee shall act accordingly to get rid of that disturbance or obstacle unless that act will severely affect the implementation of the licensee or is extremely difficult in terms of engineering aspects.  The licensee and the owner or right holder of the immovable property shall make an agreement on the implementation to get rid of that disturbance or obstacle, specifying the implementation schedule, the party to be responsible for the expense incurred and the method of payment for the expense. 

In the event that the agreement under Clause one hereof cannot proceed or cannot be reached, the licensee or the owner or right holder of the immovable property may petition the Commission to make a decision, by applying the provisions of Section 104, Clause two, Clause three and Clause four thereof, to the decision making.  The decision must mention the implementation to get rid of that disturbance or obstacle, the implementation schedule, the party to be responsible for the expense incurred and the method of payment for the expense. 

  Section 108:   

The Commission shall issue an announcement on the demarcation of the energy network system area, under Section 102 and Section 103, and shall have it published in the Government Gazette and also pinned up at the District Office or Amphoe Office of the area where the energy network system is situated.  In this respect, the licensee shall mark off the boundaries of the energy network system area, according to the criteria prescribed by the Commission. 

  Section 109:   

Any act which may cause danger to the energy network system, including the system equipment, shall be forbidden. 

  Section 110:   

In the energy network system area announced by the Commission under Section 108, no one shall be allowed to construct a building or any structure, to grow any tree or plant, to install anything, to drill or dig a hole, to pile up soil, to discard things or to do anything that may cause danger or may be an obstacle to the energy network system, unless permission is granted in writing from the enforcement officer.  The enforcement officer shall be able to give permission if, after having had comments from the licensee, it appears that such acts will not affect the energy network system, human beings, animals, vegetation, property or the environment.  In granting such a permission, the enforcement officer may or may not set up conditions.  In case of violation, the enforcement officer shall have the power to order the violator to demolish, to move, to cut, to destroy or to take any action within a specified period of time.  If the person does not comply with the order, or in case the violator could not be identified, and when the order notice has already been pinned up at the system site and also at the District Office or Amphoe Office, the Sub-district Office and the Office of the Village Headman of that area for no less than seven days, but no action is taken, the enforcement officer may give an instruction to the licensee to demolish, to move, to cut, to destroy or to take any action as deemed appropriate.  The damage caused by such an act shall not be compensated.  The violator shall pay for the actual expense incurred, including the surcharge at the rate of 30 per cent per year of the expense.  The surcharge shall be calculated as from the date on which the licensee starts taking action to the date on which the total amount of the expense and the surcharge is paid. 

  Section 111:   

For the sake of safety, an enforcement officer or a licensee, by permission of the Commission, shall have the power to demolish or cut trunks, branches, roots of trees or other things that are in the vicinity of, or conceal, cover, spread over or overlie, the energy network system.  In so doing, the intimation must be given in writing to the owners or right holders of the trees or those other things in advance within a reasonable period of time.  In case the owners or right holders cannot be contacted, the licensee shall have the power to take any action as deemed appropriate. 

In the case where the trees or other things exist before the construction of the energy network system, the licensee shall pay to the owners or right holders of the trees or those things fair compensations.  In the event that no settlement can be reached, the provisions of Section 104, Clause two, Clause three and Clause four thereof, shall apply mutatis mutandis. 

  Section 112:   

In case of necessity and urgency, a licensee shall have the power to enter the land or the premise of any person at any time for inspection, repairing or fixing up the energy network system.  If the owner or right holder is present at the site, he shall be notified first of such entrance. 

  Section 113:   

In taking actions under Section 111 or Section 112, the licensee shall try his best to avoid damage; however, if any damage occurs, the licensee shall be responsible for the damage. 

  Section 114:   

When a request of a licensee is received, and if the Commission views that it is necessary to protect the energy network system, a protection zone of the energy network system may be demarcated together with the establishment of prohibitions against certain actions within the said zone according to the criteria and methods specified by the Commission. 

Protection of the energy network system shall be taken into consideration prior to granting permission for any construction or any action to be undertaken on or under the water within the protection zone under Clause one hereof.  If any damage occurs, compensation therefore shall be paid. 

  Section 115:   

Within the protection zone of an energy network system in any river, canal, sea or waterway, whether it be in or outside the Kingdom, dropping or dragging the anchors, or dragging fishing-nets or any animal-catching tools shall be forbidden. 

When a ship sails across the energy network system area, if the anchor is not weighed until it can be seen well above the water, the act shall be regarded as anchor dragging.

POWER MARKET

Thailand Power Pool

  Section 116:   

A power pool shall be established, under the name “Thailand Power Pool,” being a state agency, with the status of a juristic person and with the objective of undertaking the following activities of the Power Pool: 

(1)         To act as the System Operator (SO) of the controlled grid to ensure security, stability and efficiency of the power network system; 

(2)         To act as the Market Operator (MO), administering services as the center of power trade in the spot market; 

(3)         To act as the Settlement Administrator (SA), managing the billings and settlements between power buyers and sellers. 

  Section 117:   

Other than the Power Pool established under this Act, no person shall operate a power market with all activities as described in Section 116(1), (2) and (3) at the same time. 

  Section 118:   

Except for the Power Pool, no person shall use the wording “Power Pool” or any other word with the same meaning in the name or part of the name of his business.

  Section 119:   

The Power Pool shall have the authority and duties to take actions within the scope of the objectives under Section 116, which include: 

(1)         Direct the operation of the controlled grid to ensure efficiency, security, stability and reliability; 

(2)         Set up the power dispatching plan; 

(3)         Set up the power system management plan, including plans for demand forecasting, maintenance outage co-ordination, outage co-ordination and congestion management; 

(4)         Monitor and ensure efficient power dispatch; 

(5)         Determine the demand and provide ancillary services; 

(6)         Develop an emergency plan; 

(7)         Analyze and report the nature of system failures causing damage to others; 

(8)         Manage the Power Pool pursuant to the Market Rules; 

(9)         Execute Transmission Control Agreements with the power transmission system operators; 

(10)     Co-operate with the power network systems of neighboring countries; 

(11)     Disseminate the Power Pool information to all concerned parties on a non-discriminatory basis; 

(12)     Determine the market clearing prices and the ancillary service tariffs in compliance with the criteria and covenants stipulated in the Market Rules; 

(13)     Provide power trading services and settlement services between power buyers and sellers; 

(14)     Administer fines and calculate fines according to the established criteria; 

(15)     Study, compile and analyze data on the power trade, statistics of the power system reliability, relevant information on the overall power system, and any other information that will be useful for the work of the Power Pool Board, including providing assistance and advice on such data and information; 

(16)     Analyze failures, evaluate and draw up recommendations on the power system operation, the Power Pool operation and the settlement procedures; 

(17)     Prepare the Power Pool operational cost estimate to be presented to the Power Pool Board for approval; 

(18)     Receive petitions concerning the power trade; 

(19)     Receive fees as specified by law or by the Power Pool Board; 

(20)     Follow up the market movement and watch out for the behavior of licensees; 

(21)     Be responsible for the administrative work of the Power Pool Board; 

(22)     Perform any other task as may be assigned by the Power Pool Board. 

  Section 120:   

The Power Pool shall not be subject to the enforcement of the laws on labor protection, labor relations, social welfare and compensation, including regulations and rules imposed on state enterprises.  In this regard, the Manager, staff members and employees of the Power Pool shall have remuneration of no less than respective levels specified in those laws. 

  Section 121: 

There shall be Power Pool Manager to be responsible for the operation of the Power Pool and report directly to the Chairman of the Power Pool Board.  He shall be the superior official of the staff members and employees of the Power Pool. 

  Section 122:   

The Chairman of the Power Pool Board, by and with consent of the Power Pool Board, shall appoint the Power Pool Manager.  The Power Pool Manager shall have the qualifications and shall not possess any disqualification described in Section 11 and Section 14, Clause one thereof, and shall receive a monthly salary and other remuneration as determined by the Power Pool Board. 

  Section 123: 

In dealing with the external affairs of the Power Pool, the Power Pool Manager shall be the representative of the Power Pool.  In this respect, the Power Pool Manager may authorize any other person to perform a particular task on his behalf, in conformity with the regulations stipulated by the Power Pool Board. 

  Section 124:   

The provisions of Sections 38, 39, 40 and 41 shall apply mutatis mutandis to the budget allocation, asset management, accounting, auditing and evaluation of the Power Pool.

  Section 125:   

The Power Pool shall submit its annual report to the Commission and the NEPC.  The report shall cover the overview of the electricity supply industry and the competition, the achievements of the Power Pool in the past year, the work sheets together with the accounting audit report, and explanations on projects and plans to be implemented in the following year.

  Section 126:   

The Power Pool shall have to furnish reports, documents or any other evidence to the Commission, the NEPC or the cabinet, when requested. 

  Section 127: 

Prior to the implementation pursuant to Section 128, the Power Pool shall assign to the Electricity Generating Authority of Thailand, in whole or in part, the Power Pool duties described in Section 119, in accordance with the criteria and conditions approved by the Commission.

The criteria and conditions referred to in Clause one hereof shall include remuneration, rules and Codes of Conduct of the employees of the Electricity Generating Authority of Thailand, being charged with duties related to the Power Pool. 

  Section 128:   

The assets, rights, duties, liabilities, staff members, employees and budgets of the Electricity Generating Authority of Thailand, Office of the Prime Minister, pertaining to the part of the Power Pool duties as assigned by the Power Pool under Section 127, Clause one thereof, shall be transferred to the Power Pool, commencing on the date determined by the Commission but not exceeding three years as from the effective date of this Act. 

The salaries or wages, including all rights and benefits of the staff members or employees transferred to be staff members or employees of the Power Pool under Clause one hereof shall not be less than their previously obtained salaries or wages, including all rights and benefits.

Thailand Power Pool Board

   Section 129:   

There shall be the Thailand Power Pool Board, comprising one Chairman and fourteen other members.

The members of the Power Pool Board must have practical achievements or hands-on experience illustrating profound knowledge, capability and expertise or experience in the following fields: energy, economics, finance, accounting, laws, mathematics, engineering, science, management or other related fields. 

The Power Pool Board shall comprise representatives of licensees of power business operations, power consumer representatives and qualified persons who have no affiliation with any licensee.  Qualified persons shall constitute the majority of the Power Pool Board members. 

The Power Pool Board shall elect one member among themselves to be Chairman and another member may be elected Vice Chairman. 

The Power Pool Manager shall be the Secretary to the Power Pool Board. 

  Section 130:   

The Power Pool Board shall have the following authority and duties: 

(1)         Control and oversee the operation of the Power Pool pursuant to the objectives of this Act; 

(2)         Determine the security level of the controlled grid; 

(3)         Prepare a report on the alternatives as well as investment and controlled grid expansion plans for submission to the Commission;

(4)         Consider for submission to the Commission the requirements for the connection to the power transmission system, for the use of the transmission system facilities and for the transmission system operation; 

(5)         Establish and review the Market Rules; 

(6)         Establish and review rules and regulations related to the settlement and accounting systems; 

(7)         Determine the market fees and the Power Pool charges; 

(8)         Establish the regulations on the collection of ancillary service tariffs, the transmission wheeling charges, the market fees, the Competition Transition Charge (CTC), and other service charges; 

(9)         Consider the Transmission Control Agreements for further submission to the Commission for approval; 

(10)     Establish corrective and preventive measures against the power abuse of power business operators or any actions that hinder competition, and prepare a report on this issue to the Commission on a regular basis; 

(11)     Establish the regulations on the petition consideration, the decision making and the resolution to disputes, including the appeal process; 

(12)     Establish the codes as well as control and monitor the connection of the domestic transmission system to the power network systems of other countries;

 (13)     Propose to the Commission the rules and Codes of Conduct of the Power Pool staff members and the Power Pool Board members; 

(14)     Proportion the internal organizational structure of the Power Pool; 

(15)     Appoint, fill in a post, discharge staff members and employees, enforce disciplinary procedures upon the Power Pool staff members and employees, and deal with complaints, including the Power Pool operational regulations; 

(16)     Set up the posts, monthly salary scale, wages, retirement allowance and gratuity of the Power Pool staff members and employees; 

(17)     Perform any other task as stipulated in this Act or in other laws as part of the authority and duties of the Power Pool Board or any other task necessary to the Power Pool operation. 

For purpose of implementing the authority and responsibilities prescribed under Clause one hereof, the Power Pool Board shall have the power to issue regulations, rules, announcements, orders or codes. 

Any regulations, rules, announcements, orders or codes to be generally enforced shall take effect upon their publication in the Government Gazette.

The regulations, rules, announcements, orders or codes issued under (2), (5), (6), (7), (8), (11) and (12) shall have to receive prior approval from the Commission.   

  Section 131:   

The Market Rules to be established by the Power Pool Board in accordance with Section 130 (5) shall, among others, include the following issues: 

(1)         Requirements to be imposed on market participants;

 (2)       Categories and characteristics of the services, for example, the electric energy (MWh) trading and the ancillary service trading;

 (3)      Characteristics of the power trade, for example, a day-ahead forward market or an hour-ahead forward market, or regional pricing or uniform pricing nationwide;

 (4)         The covenants of the power trade, the price offering and the determination of pool prices;

 (5)         The covenants of the dispatching order to power producers;

 (6)         The covenants of the ancillary service provision and tariffs; 

(7)         Rules related to information provision to the Power Pool;

 (8)         Punishment clauses and fines imposed on any persons who contravene the Market Rules;

 (9)         Liability of the Power Pool for its operation;

 (10)     Dispute consideration and resolution process;

 (11)     Emergency procedures;

 (12)     Information disclosure and dissemination;

 (13)     Process and proceedings of any modifications to the Market Rules;

 (14)     The covenants of the billings and settlements between buyers and sellers of electricity and other services.

   Section 132:  

 The Power Pool Board members shall be of Thai nationality and shall not possess any of the following disqualification:

 (1)         Have never been a member of the National Energy Regulatory Commission;

 (2)         Must not be a member of the House of Representatives, a member of the Senate, a political official, a member of a local assembly or a local administrator;

 (3)         Must not hold any position in a political party;

 (4)         Must not be insane or mentally disordered;

 (5)         Must not be addicted to drugs;

 (6)         Must not be adjudged as bankrupt;

 (7)         Must not be adjudged incompetent or quasi-incompetent;

 (8)         Must not be convicted and sentenced by a final judgement to imprisonment, except for offenses committed by negligence or petty offenses;

 (9)         Must not be convicted and sentenced by a court to have assets confiscated by the state due to excessive wealth or unusual increase of assets;

 (10)     Have never been dismissed, discharged or terminated from service of a government agency, a state enterprise or a private agency on the grounds of dishonesty, serious malfeasance, or quasi-corruption and quasi-disciplinary misconduct;

 (11)     Must not be a judge of the Constitutional Court, an election committee member, a parliamentary inspector, a member of the Counter Corruption Commission, a member of the Auditor-General of Thailand, or a member of the National Economic and Social Advisory Council;

 (12)     Have never been dismissed from office by the Senate.

   Section 133:  

For the appointment of the first Power Pool Board, the Screening Committee under Section 12 shall be responsible for the screening of qualified persons to be nominated as prospective Power Pool Board members, and the provisions of Section 12 shall apply mutatis mutandis.

The Screening Committee shall consider and select individuals with the qualifications referred to under Section 129, Clause two and Clause three thereof, having qualifications and not possessing any disqualification under Section 132, twice as many the number of persons to be appointed members of the Power Pool Board and shall then present the names to the cabinet; particulars of selected persons shall be clearly indicated, or testimonials illustrating that the persons are qualified in one of the fields specified under Section 129, Clause two thereof, and that the persons are representatives of one of the groups mentioned in Section 129, Clause three thereof, shall be provided, together with a letter of consent of each nominated person.

The cabinet shall consider the persons nominated under Clause two hereof and select as many number as that of the Power Pool Board members to be appointed and shall appoint the selected individuals as members of the Power Pool Board.

In the event that the number of selected individuals by the cabinet resolution is fewer than the number of the Power Pool Board members to be appointed, the Screening Committee shall again consider and select persons pursuant to Clause two hereof, only for the missing number, for re-submission to the cabinet for selection and appointment under Clause three hereof.

  Section 134:   

In case any post of the Power Pool Board members becomes vacant, the Power Pool Board, with approval of the Commission, shall establish a procedure for the screening, selection and appointment of an individual to fill in the vacancy on the Power Pool Board.

  Section 135:   

The Power Pool Board members shall hold office for a term of five years as from the date of appointment by the cabinet and shall be in office no more than two consecutive terms.

At the initial term, after three years’ time, seven members of the Power Pool Board, except the Chairman, shall be discharged from office by drawing a lottery; such a discharge is regarded as the completion of the office term.

The discharged Power Pool Board members shall continue to perform their duties until the cabinet appoints new Power Pool Board members.

The screening and selection of a new set of the Power Pool Board members to be presented to the cabinet for selection and appointment shall be made in advance, as deemed appropriate, in order that they are in place to take over the duties once the outgoing members complete their office term.

  Section 136:   

Apart from leaving office upon completion of the term, a Power Pool Board member shall retire from his office upon:

(1)         Death;

(2)         Having attained the age of 70;

 (3)         Resignation;

 (4)         Lack of qualifications or having any disqualification under Section 132;

 (5)         The cabinet has passed a resolution to discharge the Power Pool Board member from service, on the grounds of serious misconduct, serious malfeasance or quasi-corruption and quasi-disciplinary misconduct.

When a Power Pool Board member retires from his office prior to the completion of the term, the remaining Power Pool Board members shall continue performing their duties.  The Power Pool Board shall be regarded as comprising the remaining members, except for the case where the remaining members are less than six, in which the provisions of Section 135, Clause four thereof, shall apply mutatis mutandis.

  Section 137:   

Sections 18, 19, 20 and 21 shall apply mutatis mutandis to the execution of duties of the Power Pool Board.

Competition Transition Charge

  Section 138:   

In case the NEPC views that the commencement of the Power Pool operation will result in decreasing electricity tariffs to such an extent that the Electricity Generating Authorities of Thailand (EGAT) would have inadequate revenue to enable payment for its committed expenditures, despite its efficient management, the NEPC shall have the authority to determine the policy on the collection of the Competition Transition Charge (CTC) from power consumers.

The Commission shall establish the amount of the CTC, the arrangement and duration of the CTC collection in accordance with the NEPC’s policy under Clause one hereof.

Prior to the implementation of the NEPC under Clause one hereof and of the Commission under Clause two hereof, a hearing pursuant to Section 24 shall be organized to obtain views from Regional Electricity Consumer Committees, energy consumers and those who will be affected by such implementation.

  Section 139:   

Power consumers shall make CTC payments, according to the rates established by the Commission.  Direct access customers shall pay the CTC to the Power Pool, and other power consumers shall pay the CTC to power retailers, in accordance with the regulations issued by the Commission. 

The power retailers shall send the CTC collected under Clause one hereof to the Power Pool according to the regulations issued by the Commission. 

The Power Pool shall send the CTC received from direct access customers under Clause one hereof and from power retailers under Clause two hereof to the Electricity Generating Authority of Thailand (EGAT) according to the regulations issued by the Commission.

  Section 140:   

In the event that the person who has the duty to send the CTC fails to send or sends less than the specified amount of the CTC, the respective CTC collector shall redress the matter so that the CTC is paid and shall have the person who has the duty to send the CTC pay a surcharge according to the regulations prescribed by the Commission.  The surcharge shall be regarded as part of the CTC to be sent to EGAT as well.

If the respective CTC collector has taken actions under Clause one hereof, but the person who has the duty to send the CTC still declines to send the CTC or sends less than the required amount, the Power Pool shall expeditiously take legal proceedings against the person pursuant to Section 162.

  Section 141:  

In case the NEPC determines that a natural gas pool be established and views that the commencement of the natural gas pool operation will result in decreasing prices of natural gas to such an extent that the Petroleum Authority of Thailand would have inadequate revenue to enable payment for its committed expenditures, despite its efficient management, the NEPC shall have the authority to establish the policy on the collection of the CTC from natural gas consumers.  In this connection, the provisions of Sections 138 (Clause two and Clause three), 139 and 140 shall apply mutatis mutandis.

REDRESS OF DISPUTES

  Section 142:   

In the event that there is a dispute between energy consumers, licensees and the Power Pool, the following principles shall apply to the consideration and decision on the dispute in order to resolve or alleviate the sufferings, damage, or to subjugate the argument: 

(1)         For a dispute between an energy consumer and a licensee, the procedures set out in Sections 89 and 90 shall be followed; 

(2)         For a dispute between a licensee and another licensee, either party may submit a petition to the Commission unless the dispute is governed by the dispute resolution provisions of the Market Rules; 

(3)         For a dispute between a licensee and the Power Pool, the licensee or the Power Pool shall follow the dispute resolution provisions of the Market Rules.

  Section 143:   

If a power consumer or a licensee, affected by any regulations, codes, announcements, requirements or orders issued by the Commission, is dissatisfied, the person may submit a petition to the Commission. 

The petition under Clause one hereof shall be submitted to the Commission within 30 days as from the date on which the Commission issues such regulations, codes, announcements, requirements or orders. 

The Commission shall establish the procedural rules for the submission and processing of petitions. 

The petition under Clause two hereof shall not be regarded as diminishment of the enforcement pursuant to the regulations, codes, announcements, requirements, resolutions or orders issued by the Commission unless the Commission has given an interim instruction to be otherwise before a decision is made on the petition. 

The decision of the Commission shall be treated as final.

ENFORCEMENT OFFICERS

  Section 144:   

For the execution of this Act, the enforcement officers shall have the authority and duties as follows: 

(1)         To enter a building or energy activity facility of a licensee between sunrise and sunset, or during working hours of such a place, with the objective of inspecting the business, accounts, documents or records, or relevant information, including any actions that may violate the provisions of this Act or that contravene the requirements specified in a license; 

(2)         To issue a written notice to summon a person to furnish statements or to ask the person to submit any documents or materials for the enforcement officers to inspect or consider; 

(3)         To inspect and compile facts, then report to the Commission in case the licensee has committed malfeasance or has caused damage arising from non-compliance with this Act or the licensing conditions. 

Concerned parties shall facilitate the duty execution of the enforcement officers under Clause one hereof, as appropriate. 

Having entered the facility and commenced the inspection under Clause one hereof, if the inspection is not completed, the enforcement officers can continue doing their duties after sunset or after working hours of that place. 

  Section 145:   

In executing the duties under this Act, an enforcement officer shall present his I.D. Card to the persons concerned. 

The I.D. Card of the enforcement officer shall be in accordance with the form prescribed in the Commission’s announcement. 

  Section 146:   

In case of emergency or necessity to maintain peacefulness of the people, the security of the country or the economic stability, or to protect the public interest, the Commission may order the enforcement officers to occupy and utilize the equipment and machinery of a licensee to operate the business, or assign a government agency to temporarily operate the business, or instruct the licensee or his staff to take any actions for that purpose until the emergency or necessity dissolves. 

In carrying out the implementation under Clause one hereof, if the enforcement officers cause any damage to the licensee, the latter shall, in fairness, have the right to claim compensation for such damage from the Office.

DISCIPLINARY PROCEDURES

  Section 147:   

If it appears to the Commission that any licensee has violated or contravened Sections 43 (Clause one and Clause two), 44, 48, 49, 50, 52, 55 (Clause one and Clause two), 56 (Clause one), 58, 61 (Clause two), 62, 67, 70 (Clause one), 72, 73 (Clause one), 75 (Clause two), 76, 77, 79 (Clause one and Clause four), 82, 85, 94, 95, 96, 97 or 139, the Commission shall have the power to order the licensee to discontinue the violation, or to take corrective or appropriate actions, within a specified period of time. 

  Section 148:   

In the event that a licensee who receives the Commission’s order under Section 147 does not consent to the order, he shall have the right to lodge a petition to the Commission within 15 days as from the date on which the order is received.  The decision of the Commission shall be treated as final. 

  Section 149:   

In case the licensee fails to comply with the Commission’s order under Section 147 and the period for making a petition under Section 148 is over, or the Commission’s decision reaffirms the previous order, and when the Commission has issued a reminder to him but still no compliance with the order is made, the Commission shall consider determining an administrative fine under the law on administrative procedures, which shall not exceed five hundred thousand Baht per day. 

In the event that the licensee still ignores to redress the operation or violates the license suspension order, or that serious damage affecting the public interest arises, the Commission shall have the power to suspend or terminate his license.

PUNISHMENT

  Section 150:  

Whoever obstructs or declines to comply with the order or fails to accord facility to the Commission, the Sub-Committee or the person appointed by the Commission under Section 20 shall be punished with imprisonment of not exceeding one month or a fine of not exceeding ten thousand Baht, or both.

  Section 151:   

Whoever violates Section 43, Clause one and Clause two thereof, shall be punished with imprisonment of not exceeding five years or a fine of not exceeding ten million Baht, or both. 

  Section 152:  

Whoever violates Sections 49, 50, 52, 55 (Clause one and Clause two), 61 (Clause two), 64 (Clause one), 67, 73 (Clause one), 79 (Clause one), 94, 95, 96 or 97 shall be punished with imprisonment of not exceeding two years or a fine of not exceeding four million Baht, or both. 

  Section 153:  

Whoever violates Sections 17, 48, 56 (Clause one), 58, 62, 70 (Clause one), 72, 74, 75 (Clause two), 76, 77, 79 (Clause four), 82 or 91 (Clause two) shall be punished with imprisonment of not exceeding six months or a fine of not exceeding one million Baht, or both.

  Section 154:  

Whoever contravenes the Commission’s orders under Sections 54, 57, 63 (Clause one) or 64 (Clause two) shall be punished with imprisonment of not exceeding six months or a fine of not exceeding one million Baht, or both.

  Section 155:  

Whoever obstructs the execution of the work of the Commission, the Office, the enforcement officers or licensees under Sections 101 (Clause one), 102, 110 or 111 shall be punished with imprisonment of not exceeding six months or a fine of not exceeding one hundred thousand Baht, or both.

  Section 156:   

Whoever intentionally takes any actions that interfere or obstruct the energy business operation shall be punished with imprisonment of not exceeding six months or a fine of not exceeding one hundred thousand Baht, or both.

  Section 157:   

Whoever intentionally takes any actions causing damage to public utility assets and hence adversely affecting the public service provision, such as cutting electric wires or natural gas pipelines, shall be punished with imprisonment of not exceeding two years or a fine of not exceeding four hundred thousand Baht, or both. 

  Section 158:   

Any licensee who insists on resuming the business operation as initially licensed during the license suspension shall be punished with imprisonment of not exceeding two years or a fine of not exceeding four million Baht, or both. 

In addition to the punishment under Clause one hereof, the violator is subject to a fine of not exceeding twenty thousand Baht per day so long as the violation still exists. 

  Section 159: 

Whoever clandestinely uses the services of an energy business operator without legitimate rights, which tends to cause damage to the energy business operator, shall be punished with imprisonment of not exceeding two years or a fine of not exceeding four hundred thousand Baht, or both. 

  Section 160:   

In the event that the person who has committed an offence and shall be punished under this Act is a juristic person, the managing director, the manager or a person responsible for the business operation of such a juristic person shall also be punished likewise, unless he can prove that the offence has been carried out without his knowledge or consent. 

  Section 161:   

Any person who fails to send contributions, or sends less than the required amount of contributions to the Fund, under Section 85, shall be punished with imprisonment of not exceeding one month or a fine of not exceeding one hundred thousand Baht, or both. 

  Section 162:   

Any person who fails to pay the Competition Transition Charges (CTC), or pays less than the specified amount, under Section 139, shall be punished with imprisonment of not exceeding one month or a fine of not exceeding one hundred thousand Baht, or both. 

  Section 163:   

Any person who misrepresents or provides distorted information to the Commission shall be punished with imprisonment of not exceeding one year or a fine of not exceeding four hundred thousand Baht, or both.

TRANSITIONAL PROVISIONS

  Section 164:   

At the initial term, the screening and selection of the first Commission shall be completed within 120 days as from the date on which this Act takes effect.  The mentioned period of time shall mean the days during legislative sessions of the House of Parliament. 

  Section 165:   

At the initial term, the NEPC shall assume charge of the Commission until His Majesty graciously appoints the Commission under this Act. 

  Section 166:   

At the initial term, the Secretary General of the NEPC shall assume charge of the Secretary General, and the National Energy Policy Office shall assume charge of the Office until the Secretary General is appointed under this Act.

  Section 167:   

At the initial term, for purpose of facilitating efficient operation of the Office, the Minister, by and with the cabinet approval, may instruct government agencies, local government affairs bureaux, state enterprises or other state agencies to encourage their civil servants, staff members or employees to assist with the work of the Office on a temporary basis, while obtaining a salary from their individual office of recruitment but being under the Secretary General’s supervision. 

The work performance of the civil servants, staff members or employees under Clause one hereof shall be regarded as the implementation of their official tasks or duties under their individual office of recruitment. 

  Section 168:   

At the initial term, the Board of Directors of the Electricity Generating Authority of Thailand shall assume charge of the Power Pool Board until the Power Pool Board is appointed under this Act. 

  Section 169:   

At the initial term, the Electricity Generating Authority of Thailand shall assume charge of the Power Pool until the implementation of Section 127 takes place.

  Section 170:   

At the initial term, the Governor of the Electricity Generating Authority of Thailand shall assume charge of the Power Pool Manager until the Power Pool Manager is appointed under this Act. 

  Section 171:   

At the initial term, for purpose of facilitating efficient operation of the Power Pool, the Minister, by and with the cabinet approval, may instruct government agencies, local government affairs bureaux, state enterprises or other state agencies to encourage their civil servants, staff members or employees to assist with the work of the Power Pool on a temporary basis, while obtaining a salary from their individual office of recruitment but being under the supervision of the Power Pool Manager. 

The work performance of the civil servants, staff members or employees under Clause one hereof shall be regarded as the implementation of their duties under their individual office of recruitment. 

  Section 172:   

Where royal decrees, ministerial regulations, regulations, rules, orders or authorization issued pursuant to the Revolutionary Decree No. 58, the Energy Development and Promotion Act, B.E. 2535 (1992), the National Energy Policy Council Act, B.E. 2535, or the Electricity Generating Authority of Thailand Act, B.E. 2511, are contrary to or inconsistent with this Act or royal decrees, ministerial regulations, regulations, rules or orders issued pursuant to the provisions this Act, the government agencies entrusted with the authority by those laws shall make relevant amendments so as not to be contradictory or inconsistent with this Act or royal decrees, ministerial regulations, regulations, rules or orders issued pursuant to the provisions of this Act. 

  Section 173:   

The energy business operations, falling into the categories or characteristics of energy activities requiring a license under this Act, of the Electricity Generating Authority of Thailand (EGAT), the Metropolitan Electricity Authority (MEA), the Provincial Electricity Authority (PEA), the Petroleum Authority of Thailand (PTT) or other juristic persons, including other energy business operators who have been granted authorization, concessions or contracts from the EGAT, MEA, PEA, PTT or such juristic persons, shall be under the Commission’s regulation and shall have to comply with this Act after the thirtieth day counting from the date on which His Majesty graciously appoints the Chairman of the Commission and the Commissioners. 

  Section 174:   

The EGAT, MEA, PEA and PTT shall have to apply for a license under this Act within 60 days as from the date on which the announcement of the Commission pursuant to Section 46 takes effect. 

The Commission shall grant a license for energy business operations under this Act to the EGAT, MEA, PEA and PTT according to the characteristics and categories of their business operations.  All existing rights related to the provision of energy services as at the date on which this Act takes effect shall also be granted. 

In granting a license under Clause two hereof, the Commission shall specify the conditions of the business operations of the EGAT, MEA, PEA and PTT, as deemed appropriate.  Also to be taken into account are the benefits of the public, derived from the existing services, and the development to have good quality and efficient services provided, or any other aspect, with a view to achieving the objectives of this Act. 

While pending a license under Clause two hereof, the EGAT, MEA, PEA and PTT shall be able to continue their operations and shall have to comply with the provisions of this Act as if they had already been granted a license. 

The provisions of this Section shall also apply to energy business operations undertaken by other government agencies.

  Section 175:   

Any energy business operator whose business falls into the characteristics and categories of energy activities requiring a license under this Act shall have to apply for a license under this Act within 60 days as from the date on which the announcement of the Commission pursuant to Section 46 takes effect. 

The Commission shall issue a license under this Act to such an energy business operator.  In granting the license, the Commission shall have the power to establish certain conditions for the licensee to comply with, as deemed appropriate. 

If the energy business operator has been granted a license from another government agency prior to the effective date of this Act, the license issued under Clause two hereof shall not deprive the energy business operator and energy consumers who buy energy from the energy business operator in question of their existing economic benefits. 

While pending a license under Clause two hereof, the energy business operator shall be able to continue his operation and shall comply with any authorization granted under the Energy Development and Promotion Act, B.E. 2535, or the Electricity Generating Authority of Thailand Act, B.E. 2511, until a license under Clause two hereof is granted. 

In the event that the energy business operator does not consent to the license issuance of the Commission under Clause two hereof, a petition shall be submitted to the Administrative Court within 30 days. 

  Section 176:  

Power consumers who have bought electricity directly from power generators having a license under the Revolutionary Decree No. 58 or from power producers who have been generating power before the enforcement of this Act shall be exempted from the CTC payment under Section 138 or from the sending of contributions to the Fund under Section 85, and such persons shall not be beneficiaries of a subsidy from the Fund under Section 86. 

  Section 177:   

The EGAT, MEA, PEA, PTT, the Public Works Department, the Department of Energy Development and Promotion, the National Energy Policy Office and other government agencies dealing with licensing and regulation, or with the monitoring of energy business operations, shall furnish information pertinent to energy business operations to the Commission under the criteria and within the period of time specified by the Commission