MEA expects lower sales as people economise on electricity use

Governor Pornthape Thunyapongchai yesterday said demand for electricity in Bangkok, Nonthaburi and Samut Prakan, the area under the MEA's purview, was expected to grow only 1.85 per cent this fiscal year ending September 30, missing the MEA's growth target of 3.3 per cent.

He said the decrease in demand for electricity stemmed mainly from the economic slowdown and people becoming more economical in the wake of rising living costs.

However, Pornthape believes demand in the second half of the year will not exceed that in the first half.

"As a result of lower demand for electricity, the MEA expects a net profit of Bt5 billion this year, down from Bt6 billion last year," he said.

The MEA posted firsthalf revenue of Bt67.5 billion for a net profit of Bt3.1 billion. Expenses in the first half amounted to Bt64.4 billion.

However, he said even though the MEA would post a lower net profit, it would not affect its expenditures.

The MEA spent Bt6.69 billion to improve and expand its electricity distribution system from 200407 and will spend another Bt7.53 billion for the same purpose from 200811.

Pornthape said the MEA was trying to improve its work efficiency, so as to reduce operating expenses. At the same time, the authority will raise new revenue by establishing a subsidiary called Combined Heat and Cooling Distribution to produce and sell power.

The first project for the new subsidiary will be the new Bangkok government complex through a joint venture with PTT, although that has yet to receive Cabinet approval.

Kannikar Akkapoo, deputy governor for finance at the MEA, said his agency would issue a Bt5billion debenture divided into two tranches. A first tranche of Bt2 billion will be issued this month and a second one of Bt3 billion next month.