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Thailand is facing major challenges concerning its energy supply, as natural energy resources are fast depleting, leading to an insufficient supply of energy to the private manufacturing and service sectors, as well as the general public. The country is heavily dependent on supplies of energy from other nations – especially petroleum, which accounts for around 700,000 barrels per day or 63% of the country’s overall petroleum supply. This issue in effect has inevitably affected Thailand’s financial system, the private manufacturing and service sectors, as well as the general public. No doubt challenges facing Thailand in terms of its energy supply have further drained on the country’s global competitiveness. The country must soon find ways to rebound from this energy crisis, for example, it must seek alternative energy sources from alliances with neighboring countries, seek optimal efficiency in domestic energy consumption, and promote competition among private energy business operators within the country. These, however, have to be done under tight quality and safety control for utmost benefit of the general public.
 All energy-related organizations operate under a decentralized structure, each divided into separate ministries and departments, some under the direct supervision of government agencies, some established as state enterprises for stability purpose or for the fact that its service is considered as public infrastructure. The decentralization results from various reasons, among which are different objectives or varying circumstances. Certain organizations, such as the Metropolitan Electricity Authority (MEA) and the Provincial Electricity Authority (PEA), were established as public utility service providers to local towns; they therefore were assigned under the administration of the Ministry of Interior. Some organizations were established at a time when there were no ministries or departments assigned to manage and control energy production; they were therefore assigned under the Office of the Prime Minister, as in the case of the Electricity Generating Authority of Thailand (EGAT)
The increasing demand for energy during the past decade has further stressed the importance of these various governing bodies and their roles in the development of the country’s economy. The operations of one unit could have a direct impact on another unit, if carried out in short of uniform policy and efficient integration process. Since 1986, the government has taken into consideration the necessity to align policies and supervise these decentralized organizations so that they work towards the same direction. As a result, the Prime Minister’s Direction B.E. 2535 [1992] was issued, establishing the National Energy Policy Office to assume such responsibilities as a department under the Office of the Prime Minister.
The National Energy Policy Office is chaired by the Prime Minister, and consists of ministers from related ministries as board members – including Deputy Prime Ministers; Ministers at the Office of the Prime Minister; Minister of Defence; Minister of Interior; Minister of Finance; Minister of Science, Technology and Environment; Minister of Commerce; Minister of Industry; Minister of Transport; Minister of Foreign Affairs; Minister of Agriculture and Cooperatives; Permanent Secretary of the Ministry of Industry; Secretary-General of the Council of State; Secretary-General of the National Economic and Social Development Board; Director of the Bureau of the Budget; and Director-General of the Energy Development and Promotion Department. The Board’s Secretary-General acts as both member and secretary to the Board. The Board has the authority to make decisions, establish policies for the cabinet, and assign government agencies or state enterprises to implement plans and projects.
 The fact that there are energy-relating units allocated in over 20 agencies across 9 ministries, has hindered overall operation due to differing policies and legislation governing each agency. The government has long attempted to unify these various independent units – in order to help facilitate energy management processes – under the ‘Ministry of Energy’, however the endeavor could not be realized. Under the current government led by Pol. Lt. Col. Dr. Thaksin Shinawatra, the resolution of the Council of Ministers – at a workshop held to adjust roles, missions, and structures of government agencies on 2 November 2001 – was to establish the ‘Bureau of Energy’. Subsequently, on 9 January 2002, the meeting between the Prime Minister and 5 Deputy Prime Ministers resolved that the ‘Bureau of Energy’ become the ‘Ministry of Energy’ – a comparatively small-sized ministry responsible for carrying out the government’s immediate missions.
Before the establishment of the ‘Ministry of Energy’, the agency must first comply with the following conditions:
- Unify all energy-related units, both government agencies and state enterprises, under the Ministry of Energy. This means all governing authority must be transferred to the Ministry of Energy.
- Relocate all energy-related state enterprises to the Ministry of Energy. The transfer, however, must align with the energy business reform and restructuring plan as approved by the Council of Ministers. State enterprises that will be restructured under the ‘State Holding Company’ establishment policy, must comply to the plans as set forth by the Ministry of Finance. The restructuring of state enterprises, whereby some operations will be established as company limited while the rest retain their statuses as state enterprises under the Ministry of Energy, are subjected to reformation under the restructuring plan as set forth by the Ministry of Energy.
The restructuring plan calls for an assembly of all energy-related units from 5 different ministries and their formation as the Ministry of Energy. Those ministries are:
- National Energy Policy Office, Office of the Prime Minister
- Natural Fuels Division, Analysis Division (Natural Fuels Analysis), Department of Mineral Resources, and Oil Industry Division, Office of the Permanent Secretary, Ministry of Industry
- Department of Energy Development and Promotion, Ministry of Science, Technology and Environment
- Fuel Storage Safety Regulation Division, Department of Public Works, Ministry of Interior
- Bureau of Fuel Oil, Department of Commercial Registration, Ministry of Commerce
- An energy-related state enterprise, the Electricity Generating Authority of Thailand (EGAT), has been transferred from the Office of the Prime Minister to the Ministry of Energy. According to the Council of Ministers’ resolution on 9 January 2002, the Metropolitan Electricity Authority (MEA) and the Provincial Electricity Authority (PEA) will remain under the Ministry of Interior for another 2 years before being transferred to the Ministry of Energy.
- A natural gas and a petrol state enterprises, PTT Public Company Limited and the Bangchak Petroleum Public Company Limited, in which the Ministry of Finance and PTT are major shareholders, have been transferred from the Ministry of Industry to the Ministry of Energy.
Details of Establishment of the Ministry of Energy in Chronological Order
28 September 2001
(Workshop on ‘New Dimension in Government Reform & Restructuring I’)
The meeting resolves that energy-related tasks should be managed by one single unit. However, the Working Committee should conduct a study on how the unit should be established – whether as a Bureau or an agency under the Ministry of Industry and Entrepreneurs. If set up as a Bureau, it should play greater role beyond supervising energy-related issues, but may assume other additional tasks such as conducting researches on alternative energy sources.
2 November 2001
(Workshop on ‘New Dimension in Government Reform & Restructuring II’)
The meeting agrees that energy-related issues are important enough to be separated into independent cluster. Establishing it as an exclusive unit would help enhance the efficiency in energy management. Therefore, it should be set up as ‘Bureau of Energy’ with the responsibility of setting up policies and plans, supervising energy-related business, as well as developing and promoting energy.
12 November 2001
(The Council of Ministers’ Meeting)
The meeting agrees to restructure the ministerial-level organization into 17 Ministries and 1 Bureau, and assign Deputy Prime Minister (Mr. Somkid Jatusripituk) to be in charge of the preparation of the Bureau of Energy’s detailed information which is expected for completion in December 2001.
17 December 2001
(The Meeting between the Advisory Committee, Deputy Prime Minister (Mr. Somkid Jatusripituk), and 5 Energy-Related Agencies)
27 December 2001
(The Meeting among 5 Deputy Prime Ministers)
The meeting agrees for the organization structure of agencies enlisted under economy-related ministries.
9 January 2001
The meeting agrees to restructure government agencies into 20 ministries, whereby the Ministry of Energy will serve as a small-sized ministry established to handle the government’s immediate missions with 1 cluster (1 Permanent Secretary).
The meeting also resolves that the Metropolitan Electricity Authority and the Provincial Electricity Authority should maintain their statuses as state enterprises with direct reports to the Ministry of Interior for another 2 years before being transferred to the Ministry of Energy.
31 January 2002
(The Meeting between the Prime Minister and 5 Deputy Prime Ministers)
The Prime Minister assigns the Minister of Industry (Mr. Suriya Jungrungreangkit) to be in charge of the preparation of the Ministry of Energy’s detailed structure.
13 February 2002
(The Meeting between the Minister of Industry, Delegates from Office of the Civil Service Commission, and Concerned Parties)
The meeting agrees in principle on the division of the Ministry of Energy’s organization into:
1. Office of the Minister
2. Office of the Permanent Secretary
2.1 Central Administrative Office
2.2 Energy Policy Office
2.3 Energy Resources Office
2.4 Energy Business Regulatory Office
2.5 Energy Development and Promotion Office
14 February 2002
The Minister of Industry (Mr. Suriya Jungrungreangkit) establishes the Ministry of Industry’s Direction, assigning Mr. Cherdpong Siriwit, Secretary-General of Thai Industrial Standards Institute, to take responsibility in the preparation of the Ministry of Energy’s detailed structure.
12 March 2002
The Council of Ministers agrees to the draft Government Administration Regulations Act (No.__) B.E. __ and the draft Ministerial Restructuring Act B.E.___ that allocate authority and responsibilities as well as define the various division under the Ministry of Energy:
1. Office of the Minister
2. Office of the Permanent Secretary
3. Energy Policy and Planning Office
4. Department of Mineral Fuels
5. Department of Energy Business
6. Department of Energy Development and Promotion
10 April 2002
The National Assembly accepts the principle of the draft Government Administration Regulations Act (No.__) B.E.__ and the draft Ministerial Restructuring Act B.E.__ presented by the Council of Ministers, and agree to further propose both Acts to the Select Committee for considerations.
29 June 2002
The National Assembly agrees in principle with the first and second items on the agenda.
4 July 2002
The senate accepts in principle the draft Government Administration Regulations Act (No.__) B.E.__ and the draft Ministerial Restructuring Act B.E.__ presented by the Council of Ministers, and further presents them to the Select Committee for considerations.
24 September 2002
The senate accepts in principle the first and second items on the agenda. However, it has decided to change the title of the “Department of Energy Development and Promotion” to the “Department of Alternative Energy Development and Efficiency”.
3 October 2002
Under the royal mandate, the Government Administration Regulations Act (No.5) B.E. 2545 [2002] and the Ministerial Restructuring Act B.E. 2545 [2002] are enacted. It is considered the official inauguration of the Ministry of Energy. |
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