Section 145:
The civil servants, government staff members and employees of the Ministry of Energy’s Office of the Permanent Secretary, the Department of Mineral Fuels, the Department of Energy Business, the Department of Alternative Energy Development and Efficiency, and the Energy Policy and Planning Office, who voluntarily wish to be staff members or employees of the Office, shall exert the right by submitting a written notification of their wish to their respective supervisors within one hundred and eighty (180) days as from the date this Act comes into force.

The assignment and appointment of the staff members and employees of the Office under Clause one hereof to any posts in the Office shall be in accordance with the manpower, qualifications and salary scale or engagement fees, prescribed by the ERC.

The assignment and appointment of the civil servants under this Section shall be regarded as the discharge from the government service because the government has terminated or dissolved the posts under the law on government pension or the law on government pension fund, as the case may be.

The assignment and appointment of the employees under this Section shall be regarded as the discharge from the job because the government has dissolved the posts or discontinued the engagement, with no offense, and shall be eligible for the gratuity under the Ministry of Finance’s regulations on employees’ gratuity.

Section 146:
As from the effective date of this Act, the energy industry operation of the Electricity Generating Authority of Thailand (EGAT), the Metropolitan Electricity Authority (MEA), the Provincial Electricity Authority (PEA) and the PTT Public Company Limited (PTT) shall be able to continue until a license under this Act is respectively granted.
During the energy industry operation under Clause one hereof, the EGAT, MEA, PEA and PTT shall have to comply with the law on the Electricity Generating Authority of Thailand, the law on the Metropolitan Electricity Authority, the law on the Provincial Electricity Authority and the Royal Decree Describing Powers, Rights and Benefits of the PTT Public Company Limited, whichever is the case.

Section 147:
All the powers, rights and benefits that the EGAT, MEA and PEA are entitled to under the law on the Electricity Generating Authority of Thailand, the law on the Metropolitan Electricity Authority and the law on the Provincial Electricity Authority shall remain insofar as they do not contradict or contravene this Act.

Section 148:
The provisions regarding the execution so as to acquire the immovable property by expropriation, entrusted to the EGAT, MEA and PEA under the law on the Electricity Generating Authority of Thailand, the law on the Metropolitan Electricity Authority and the law on the Provincial Electricity Authority, shall remain in force.

Section 149:
In order that the energy industry operation of the PTT could continue in accordance with Section 146, the provision of Section 26 (Clause four) of the State Enterprise Corporatization Act, B.E. 2542 (1999), shall not be enforceable on the PTT until the PTT is granted a license under this Act, and during such a duration, the Royal Decree Describing Powers, Rights and Benefits of the PTT Public Company Limited, B.E. 2544 (2001), amended up to the Royal Decree Describing Powers, Rights and Benefits of the PTT Public Company Limited, No. 2, B.E. 2550 (2007) shall remain in force.

Section 150:
Within one hundred and eighty (180) days as from the effective date of the ERC’s regulations under Section 50, the ERC shall grant a license for energy industry operation under this Act to the EGAT, MEA, PEA and PTT according to the characteristics and categories of their business operation, the scope of service provision, including the existing rights related to the provision of electricity or natural gas services, as far as the responsibilities of the EGAT, MEA, PEA and PTT are concerned as at the date on which this Act comes into force.

In granting a license under Clause one hereof, the ERC shall specify the conditions of the business operation of the EGAT, MEA, PEA and PTT, taking into account the existing rights and commitments of the energy industry operators and the existing benefits that energy consumers have obtained from the services, including the development to improve the service quality and efficiency, with a view to achieving the objectives of this Act.

Section 151:
Within one hundred and eighty (180) days as from the effective date of the ERC’s regulations under Section 50, the ERC shall grant a license for energy industry operation under this Act to the energy industry operators involving with the development of natural gas resources in the Joint Development Area, under the law on Thailand-Malaysia Joint Development Authority, and providing natural gas transmission services via pipelines through the natural gas transmission system to Malaysia, who have operated the business prior to the enforcement date of this Act and who are considered energy industry operators requiring a license under this Act. In granting such a license, consideration must be given to the existing agreements and terms of contracts that the energy industry operators have already committed when this Act comes into force, and this shall not affect the rights or benefits of the contract partners under the mentioned contracts.

Section 152:
With regard to the energy industry operation undertaken by other government agencies, apart from the EGAT, MEA, PEA and PTT, the provisions of Section 146 and Section 150 shall apply mutatis mutandis.

Section 153:
The power system interconnection or the power network system connection that the EGAT, MEA and PEA have approved prior to the effective date of this Act shall be able to proceed and shall be regarded as the energy network system connection which must comply with this Act.

The areas of petroleum pipeline transmission systems that have been announced prior to the date this Act comes into force shall be regarded as the energy network system areas under this Act.

Section 154:
Apart from the EGAT, MEA, PEA, PTT and other government agencies under Section 152, any energy industry operator who has operated the business prior to the effective date of this Act and who is regarded as an energy industry operator requiring a license under this Act shall be able to continue his energy industry operation and shall apply for a license according to Clause two hereof. The energy industry operator under Clause one hereof shall have to apply for a license under this Act within sixty (60) days as from the date on which the ERC’s regulations under Section 50 take effect, and when the application for such a license has been submitted, he shall be able to continue his operation until an order declining the license granting is received from the ERC.

In the event that the energy industry operator has been granted a license from another government agency prior to the effective date of this Act, in issuing the license under Clause two hereof, the ERC shall take into consideration his existing rights and commitments, and the existing benefits that energy consumers have obtained from the services, including the development to improve the service quality and efficiency, with a view to achieving the objectives of this Act. The energy industry operation of the energy industry operator under Clause one and Clause two hereof shall comply with any permission granted under the Revolutionary Decree No. 58, dated 26 January 1972, the law on energy development and promotion, the law on the Electricity Generating Authority of Thailand, the law on factories, or other laws related to the energy industry operation, until a license under Clause two hereof is granted.

Section 155:
The EGAT, MEA, PEA, PTT, the Department of Mineral Fuels, the Department of Energy Business, the Department of Alternative Energy Development and Efficiency, the Energy Policy and Planning Office and other government agencies being charged with permission granting and monitoring, or with the control of the energy industry operation, shall furnish the ERC with information pertinent to the energy industry operation according to the criteria, procedures, conditions and time frame specified and announced by the ERC.

Countersigned by
General Surayud Chulanont
Prime Minister

________________________

Remarks: The rationale behind the enactment of this Act is that, since the energy industry is vital to the social and economic structure as well as the environment of the country, it is essential to restructure the energy industry management by distinctly separating the policy-making, regulation and operating functions of the energy industry from each other. In order to enhance greater participation and roles of the private sector, communities as well as the general public so that the energy industry operation would be efficient, secure, adequate and extensive, with reasonable prices and standardized quality, to respond to the domestic demand and sustainable development of the country in terms of social, economic and environmental aspects pursuant to the principles of Sufficiency Economy Philosophy, it is deemed necessary that the Energy Regulatory Commission be established to regulate the energy industry. To this effect, the ERC shall be designated to prevent abusive use of monopoly power and to protect energy consumers and those adversely affected from the energy industry operation. Besides, in order that the ERC could execute their authority and duties efficiently, it is deemed appropriate to have the Office of the Energy Regulatory Commission established, being a state agency with the status of a juristic entity, to function as the Secretariat to the ERC. It is, therefore, essential to enact this Act.

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