Union president Sirichai Mai-ngam called the act the beginning of the privatisation of Egat and said the union would protest against the act. Sirichai will be among participants at the second public hearing on the draft act to govern energy operators.

The second public hearing was postponed from last week, due to a rally by protesters against the draft, which covers nuclear and coal-powered plants.

Sirichai said the current government should not introduce a draft act, because it might violate the future constitution. He suggested the act cover energy producers that use natural gas and oil, because that area had already been operated by private-sector companies like PTT.

However, he said the government should withdraw electricity from the act, because electricity production was now under a public agency: Egat.

Energy deputy permanent secretary Norkhun Sitthipong said the public hearing would be only the second in the series. The government intends to conduct four hearings - one in each region - to gather ideas from the public before making any decisions.

Norkhun rejected the assumption that the draft act would lead to privatisation, saying it only includes the formation of a committee to supervise the energy industry.

The future committee will include the chairman and six directors selected by a screening committee, and the members will include representatives from the Finance Ministry, the Energy Ministry, non-profit organisations and the Federation of Thai Industries, all of whom are not in the energy business.

The prime minister will also appoint two members to the board.

The scope of the committee will include:

l Supervision of energy policy;

l Introduction of regulations for energy operators;

l Introduction of measures to promote competition and prevent monopolies;

l Forecasts of future energy consumption;

l Introduction of credible measures and guidelines on how to find new energy sources;

l Production of energy development and an investment plan;

l Proposal of criteria to establish service fees;

l Supervision of the performance of licensees and setting up of criteria for contributing revenues to the energy fund.

Sairung Thongplon, a representative of the Confederation of Consumer Organisations, said the draft act failed to capture the overall picture of energy development.

She said she wanted to see the name of the act changed from "operation" to "supervision", in order to avoid confusion in the future.

Visut Jhetson of the National Economic and Social Advisory Council said the draft act did not take the big picture into account. Therefore, the ministry should write legislation with a larger view to setting up guidelines for energy development before going into details like electricity or natural gas.

Chalida Ekvitthayavechnukul

The Nation