| Author | Manisa Pipattanasomporn |
| Call Number | AIT Thesis no. ET-01-4 |
| Subject(s) | Electric utilities--Thailand--Prices
|
| Note | A thesis submitted in partial fulfillment of the requirements for the degree of Master of
Engineering, School of Environment, Resources and Development |
| Publisher | Asian Institute of Technology |
| Abstract | The electricity industry throughout the world is currently undergoing a significant
transition towards restrncturing and deregulation. The new system is designed to create a
competition in production, which would result in lower ·prices in electricity market.
Following this new legislation, Thailand has initiated institutional and strnctural reform
with a belief that this could be the best way forward for the Thailand Electricity Supply
Industry (ESI) in order to improve the efficiency, to initiate the real time pricing reflected
by actual costs, and to tackle their financial debts.
As of January 2003, the regulatory framework of the Thai electricity market will be
replaced by new legislation more conductive to competition. As this trend continues, the
relationship between the cost of producing electricity and the price charged for it will
change fundamentally. Under the regulatory system, electricity prices have generally been
equal to "embedded costs"- the average costs of producing the electricity. If fully
competitive electricity markets develop, prices will not be set to average costs. The
generation price of electricity will be set by the operating costs of the most expensive
generating unit needed to meet demand, or what is referred to in economics as the
"marginal cost" of production.
The emergence of competitive markets for electricity generation services is changing the
way that electricity is and will be priced in all over the world. This report presents the
results of an analysis that focuses on, firstly, pricing behaviors of two different pricing
system: regulated prices based on average costs and competitive prices based on marginal
costs, secondly, the incurred stranded costs, and finally, the possibility to exercise market
power in the new competition environment. Thailand Power Sector is employed to
illustrate this point. |
| Year | 2001 |
| Type | Thesis |
| School | School of Environment, Resources, and Development (SERD) |
| Department | Department of Energy and Climate Change (Former title: Department of Energy, Environment, and Climate Change (DEECC)) |
| Academic Program/FoS | Energy Technology (ET) |
| Chairperson(s) | Lefevre, Thierry;Pacudan, Romeo |
| Examination Committee(s) | Surapong Chirarattananon ;Weerakorn Ongsakul |
| Scholarship Donor(s) | Queen's Scholarship for Education of Asia |
| Degree | Thesis (M.Eng.) - Asian Institute of Technology, ,2001 |