Bangkok: The shadow cabinet has voiced strong criticism against the 400 billion baht energy transition plan, labeling it as "misleading and lacking substance." Concerns have been raised about the potential misuse of funds, particularly in projects related to solar energy, which may be channeling money towards blue-shirt networks.
According to Thai News Agency, during a press conference held at the Parliament building, the People's Party's Shadow Cabinet discussed the findings of its 11th meeting. Key figures such as Ms. Sirikanya Tansakul, Deputy Leader of the People's Party, and People's Party list MPs Mr. Suphachot Chaiyasat and Ms. Rakchanok Srinok, shared their insights on the allocation of the 400 billion baht loan under the Emergency Decree.
Ms. Sirikanya highlighted that the People's Party, after reviewing the Constitutional Court's recent ruling, noticed that expert witnesses had pointed out that the energy transition plan, which involves 200 billion baht, lacks concrete action plans. This deficit raises doubts about its effectiveness in mitigating the energy crisis, given the structural changes required in the medium to long term.
Concerns were also raised about fiscal discipline, as the loan could significantly increase public debt, nearing the fiscal discipline ceiling. Various experts' opinions align with the opposition coalition's petitions and dissenting views from Constitutional Court judges. The opposition intends to use this information in the upcoming debate on the emergency decree.
Ms. Sirikanya also pointed out irregularities, citing the Department of Local Administration's product catalog, which might include product codes that could lead to biased procurement processes favoring specific vendors.
Mr. Suphachot noted issues stemming from the budgeting process, which follows a bottom-up approach. Agencies propose projects before a screening committee, instead of starting with defined goals for the country's energy transition. This raises questions about the actual increase in clean energy proportion and improvements in energy efficiency post-implementation of the 200 billion baht plan.
Identified problems are categorized into projects that "don't live up to expectations" and those that "lack substance." For instance, the policy to provide loans for solar panel installations in 1 million households faces limitations due to grid capacity and unclear household capacity specifications. Moreover, the previously reported subsidy might be reduced.
The Electricity Generating Authority of Thailand (EGAT) clarified that the concept of "installment payments through electricity bills" is currently unfeasible under existing regulations. Legal provisions for direct bank payments are absent.
Another project, valued at 24 billion baht, aims to convert public transport vehicles to electric vehicles (EVs). The Department of Land Transport now focuses mainly on taxis, with regular bus services reverting to the national budget. Freight trucks face infrastructure limitations, indicating a lack of preparation and research by the government.
Mr. Suphachot highlighted that the Ministry of Agriculture and Cooperatives proposed a 20 billion baht project by the Royal Irrigation Department. This project claims to mitigate the energy crisis impact but seems unclear and involves purchasing solar-powered water pumps.
The Rubber Authority of Thailand's project, worth 10 billion baht, allegedly supports low-carbon rubber plantations using EUDR (Universal Deforestation Restriction) measures to justify the energy transition. Concerns arise that "energy transition" terminology in numerous projects may lead to misuse of the 200 billion baht in procurement processes and corruption.
Ms. Rakchanok criticized the ad hoc committee overseeing the loan's use for inconsistent meetings, prompting the Economic Development Committee to intervene. She questioned the government's sincerity in the investigation.
Additionally, the term "solar" has become a central keyword in loan-related projects, potentially leading to massive procurement processes. Vigilance is necessary to ensure businesses are not preemptively benefiting from inside information.
Ms. Rakchanok revealed that project requests are being submitted despite unclear approval criteria. The committee is investigating manufacturers with Thai Industrial Standard (TIS) for solar products to identify any irregularities favoring existing manufacturers or quick approvals during loan disbursement.
The People's Party is committed to presenting all monitoring data in the House of Representatives debate, to ensure transparency regarding the principles, project process, and risks associated with the 400 billion baht loan before the emergency decree vote.