National Power Supply, an independent power producer (IPP), is negotiating for a higher tariff after local resistance in Chachoengsao province has delayed its plans to build a new power plant.
Electricity Generating Authority of Thailand (Egat) governor Sutat Patmasiriwat said the company had submitted a request to the Energy Ministry to delay its commercial operation by two years, to 2012-13, as the environmental and health impact assessment of its Chachoengsao plant could not be completed because of the public resistance. That the authorities entered a peace deal with the protesters led to a force majeure, just as Siam Energy witnessed with its Bang Khla power plant in the same province.
As it had to relocate its 1,600-megawatt power plant from Bang Khla to Ayutthaya, Siam Energy recently won Cabinet approval for a higher power price, by 9.49 satang per unit, on top of the existing price of Bt2.629 per unit. It is estimated that the additional charge will total Bt10 billion through the company's 25-year concession term. This will be added to the power bills that all must shoulder, once the power is connected to the system.
The National Power Supply plant has a capacity of 540MW.
"The two-year delay for National Power Supply could mean higher cost. Its request for a higher tariff will be considered by a subcommittee chaired by Energy Ministry permanent secretary Pornchai Rujiprapa," Sutat said.
The Stop Global Warming Association and 651 villagers in Chachoengsao recently sought an Administrative Court injunction halting construction of National Power Supply's coal-fired power plant in the province.
Sutat asserted that both power plants would face a delay in coming online, and this would jeopardise the power supply. During the delay period, the spinning reserve - extra generating capacity - is expected to fall to 10 per cent from about 20 per cent at present.
He said that under IPP bidding terms, the government reserves the right to cancel projects without having to pay compensation. However, in light of the anticipated increase in power demand, the authorities need new supplies. If these projects were scrapped, another round of bidding would have to be organised and this would take longer than two years, he said.