Regulatory
Reform and Competitiveness in Thailand
By:
Sakda Thanitcul
to deploy PTT capital
in most effective manner and under PTT control.
Proposed
Regulatory Framework
Public
Policy |
Independent
Regulator |
|
-market
design |
-Compliance
with marker codes |
|
-subsidice |
-fair
prices |
|
-environmental |
-customer
service standards |
|
-energy
security |
-dispute
resolution |
|
-fuel
diversity |
-compliance
with public policy |
|
-adequate
competition requirements |
|
|
A
regulatory framework must be developed to oversee there structuring and
development of the energy sector. The independence of the regulator is
an important feature in fostering and environment of "competitive
neutrality" between public and private sector enterprises. This is
effectively accomplished by separating the function of public policy from
regulation by establishing a regulatory body responsible for regulation
of the electricity and gas industries independent from the National Energy
Policy Office (NEPO).
(e)
Other Sectors (Banking, Industrial, Agricultural, Social & Technology,
Commercial & Services)
The state enterprises
in other non-infrastructure sectors were established to either
discharge
the government's role of providing basic services to the public or to
create and promote new industries where there was a lack of private sector
presence. The total number of state enterprises in this sector is 42.
Sector
Objectives The government's position is that state enterprises not engaged
in core government functions will be privatized. The government will then
focus on policy making and planning for the sectors; regulation of monopolies
(where necessary); and, the operation of state enterprises or government
bodies with core government functions. For core government functions that
remain with the state, there will be an increase in the operating efficiencies
through that introduction of private sector best practices as well as
the creation of an environment for sustainable, effective and efficient
private sector participation
Full
exit of government ownership For those state enterprises with operations
that can be viably performed by the private sector, the government shall
divest full or nearly fully its stake through various methods of privatization.
The government may also act as a passive investor in some state assets
as part of their investment portfolio. Preliminary indicative classifcations
of the enterprises that may fall into this quadrant include the following
enterprises:
--Liquor Distillery Organization
--The Glass Organization
--The Battery Organization
--The Tanning Organization
--The police Printing Press
--The Thai Plywood Company Limited
Rationalize state
enterprises for possible future divestiture
For
state enterprises currently performing non-governmental functions and
whose operations are not financially attractive or viable for private
sector participation at present, rationalization of functions/operations,
and analysis of corporate and business structure
and
assets shall be undertaken for possible future divestiture by the government.
The enterprises that may fall into this quadrant are:
--Thailand tobacco Monopoly
--The Marketing Organization
--Sports authority of Thailand
--The Government Pharmaceutical Organization
--Office of the Public Pawnshop
Separate
government functions and divest non-core functions and operations. Certain
state enterprises perform both non-governmental as well as governmental
functions. In these cases, the governmental and non-government functions
shall be separated. Non-governmental functions shall be considered for
privatization. SOEs that may fall into this quadrant are:
--Playing Card Factory
--The Government Lottery Office
--The Forest Industry Organization
--Fish Marketing Organization
--Rubber Estate Organization
--Dairy Farming promotion Organization of Thailand
--National Housing Authority
Remain
as government (as SOE or government body) and adopt private sector best
practices. For those state enterprises whose purpose it is to provide
social benefits and services which are strategic, social obligatory or
non-commercial in nature; or which cannot be performed more effectively,
completely or viably by the private sector, such functions shall remain
with the government. In such cases, private sector best practices shall
be adopted where possible in the operation and management of such activities
as a means to improve and sustain greater operating efficiencies. The
enterprises that may fall into this quadrant are:
--The Industrial Estate Authority of Thailand
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