Speaking at a seminar on how private-sector businesses can cope with the energy crisis, CP vice executive chairman Ajva Taulananda said the private sector would have to adjust itself to handle higher costs of fuel and electricity in the wake of rising oil prices.

"Companies will therefore have to help themselves as much as possible," he said, adding that efforts to save energy would directly affect their production costs.

To cope with the energy crisis, the CP Group set about achieving an energy-savings target. Ajva said the group had reduced not only its energy spending, but also its production costs.

"The group has a clear target to slash up to 20 per cent off its total energy spending over the next three years," he said.

As long ago as September 2004, the group's energy-saving strategies were broken down into short-, medium- and long-term plans.

The group established a committee to campaign for and consult about energy savings among its subsidiaries. It also surveyed the energy consumption of staff at its subsidiaries' offices, then set about changing their behaviour.

The energy-saving campaigns included turning off unnecessary lights, setting air-conditioners at 25 degrees Celsius and installing more efficient office equipment.

Ajva said each of CP's subsidiaries also set up a separate committee to monitor the outcome of energy-saving practices. In addition, energy-saving experts were appointed to consult with each company.

He said the group also had a policy of developing alternative energy for internal use, including biogas produced from animal manure at its farms and biodiesel produced from palms, coconut shells and corn cobs.

Toshiba Thailand Co Ltd chair Kobkarn Wattanavrangkul said her company had adjusted its electrical products to save energy, in response to customer demand.

Thai Chamber of Commerce chairman Pramon Sutivong, said the chamber had campaigned for energy savings among manufacturers, and this could have saved a total of Bt380 million.

Meanwhile, caretaker Energy Minister Viset Choopiban said high oil prices had prompted industrialists to modify their factory equipment to reduce fuel consumption. Last year, after 20,000 factories joined the equipment-improvement campaign, energy costs dropped Bt15 billion. More than 5,000 factories are expected to modify their equipment this year, saving a further Bt3 billion.

"We will further promote this campaign, with the aim of reducing Thailand's ratio of energy costs to GDP from 1.2:1 to 1:1 in the next few years," he said.

Watcharapong Thongrung

The Nation