Whether state enterprises Electricity Generating Authority of Thailand (Egat) and PTT should be barred from the second round of bidding by independent power producers promises to be the burning topic at tomorrow's public hearing.

Investors, academics and non-governmental organisations have been invited to share their opinions on how the Energy Ministry should proceed with additional investment in the power sector.

Viraphol Jirapraditkul, director-general-designate of the Energy Policy and Planning Office (EPPO), said yesterday that a consultant's recommendations on qualifications for bidders, as well as the types of fuels to power the plants, would be presented for discussion.

The proposals were completed by Bart Lucarelli in cooperation with the Energy for Environment Foundation.

"The adviser believes Egat and PTT should not join the bidding since they are state enterprises and could have an advantage over private operators. This is based on the assumption that Egat is allocated half of the additional power," Viraphol said.

Egat's listed subsidiaries - Electricity Generating (Egco) and Ratchaburi Electricity Generating Holding (Ratch) - will be allowed to bid.

Top executives from both Egco and Ratch have expressed their readiness to participate in the bidding, which would be a major opportunity to expand their business.

Ratch is ready to accommodate another huge power plant at its generating complex in Ratchaburi, while Egco has surveyed 10 potential sites for a new plant. Due to uncertainties over its right to bid, Egco is also prepared to invest overseas.

Also showing interest in bidding is Thai Oil Power, a subsidiary of Thai Oil. PTT now holds 49.54 per cent of Thai Oil.

The first round of bidding in the 1990s attracted several international energy companies and the second round is expected to draw similar attention.

Viraphol said the consultant was proposing a scoring system that will award more points to investors whose choice of fuel respects government policy. Among the recommended fuels is coal, which is cheaper than natural gas but is upsetting environmentalists concerned about the emissions.

Bonus points would also be awarded to investors locating their plants in specified areas where electricity demand is huge - particularly in the southern and western parts of the country.

It has not yet been finalised how many megawatts the authorities will put up for bidding.

Viraphol said that Energy Minister Piyasvasti Amranand had earlier said the bidders should supply additional power for the period 2011-2013. That means Thailand would need an additional 4,500 megawatts during the period, in line with the expected growth in demand of 1,300 megawatts per year. "However, we have to wait for the exact power forecast," he said.

On cooking gas, Viraphol said that this month EPPO would present a proposal to the National Energy Policy Council on when to float the price, taking into account the world gas price as well as consumption among taxis here.

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