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3 January 2007 - The privatization of Thailand's state electricity company Electricity Generating Authority of Thailand (Egat) looks less likely in the short term following pressure to nullify the recent privatization of PTT (formerly known as the Petroleum Authority of Thailand). It is also unlikely that plans to privatize the Provincial Electricity Authority and the Metropolitan Electricity Authority will now proceed.
The Supreme Court is considering a petition by a consumer rights group to de-list PTT, which was the first state enterprise to go public under a programme of privatizations initiated by the first Thaksin administration.
In March last year the Supreme administrative Court revoked the two Royal decrees supporting Egat's privatization. The court rules that the earlier transformation of the state agency into a public company was not legitimate.
Despite continuing strong protests against privatization, Deputy Prime Minister Sommai Phasee recently said that privatization plans would have to go ahead but their patterns would be "adapted" to the public's satisfaction.
Kongkiat Opaswongkarn, chief executive of Asia Plus Securities and chairman of the Federation of Thai Capital Market Organizations, said that the Supreme Court's ruling against Egat's privatization would have a long-term impact on the Thai stock market and the country's economy as a whole. Egat's case will inevitably delay the privatization of other state enterprises, he said.
A state of political uncertainty exists in Thailand following the military-led coup in September that ousted Prime Minister Thaksin Shinawatra. A series of bombing in the capital Bangkok in the last few days have raised tensions and have been blamed on supporters of the former regime.
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