Section 9: ALLOCATIONS FOR EXPENDITURES UNDER THE ENERGY CONSERVATION PROGRAM
9.1 ESTIMATION OF EXPENDITURES UNDER THE ENCON PROGRAM
Estimation of required budget to be allocated from the ENCON Fund for the implementation of the ENCON Program during the fiscal period 2000-2004 can be classified according to the sub-programs and main projects as follows:
Table 3
Estimation of Expenditures under the ENCON Program
Unit: Million baht
Fiscal Year 2000 2001 2002 2003 2004 Total COMPULSORY PROGRAM 3,727.84 3,764.84 4,199.34 2,883.34 2,445.94 17,021.30 1. Government Buildings 584.84 592.54 595.74 569.44 557.24 2,899.80 2. Existing Designated Factories and Buildings 2,907.50 3,081.80 3,513.10 2,223.40 1,798.20 13,524.00 3. Factories and Buildings under Designing or Construction 145.00 - - - - 145.00 4. Public Awareness Campaigns under the DEDP’s responsibility 90.50 90.50 90.50 90.50 90.50 452.50 VOLUNTARY PROGRAM 691.00 1,075.00 1,201.00 1,481.00 1,974.00 6,422.00 5. Promotion of Renewable Energy Utilization 310.00 368.00 309.00 279.00 259.00 1,525.00 6. Promotion of Small Power Producers Using Renewable Energy - 110.00 294.00 552.00 1,104.00 2,060.00 7. Industrial Liaison 216.00 123.00 149.00 146.00 107.00 741.00 8. R&D 165.00 217.00 192.00 247.00 247.00 1,068.00 9. Existing Non-Designated Factories and Buildings - 257.00 257.00 257.00 257.00 1,028.00 COMPLEMENTARY PROGRAM 1,062.92 1,163.19 1,155.82 1,136.67 1,148.71 5,667.31 10. Human Resources Development 316.00 343.00 343.00 343.00 343.00 1,688.00 - DEDP 57.00 133.00 120.00 72.00 58.00 440.00 - Other agencies 259.00 210.00 223.00 271.00 285.00 1,248.00 11. Public Awareness Campaigns under NEPO’s responsibility 150.00 150.00 150.00 150.00 150.00 750.00 12. Management and Monitoring 596.92 670.19 662.82 643.67 655.71 3,229.31 - NEPO 112.05 100.00 105.95 113.50 120.65 552.15 - DEDP 484.12 569.27 555.89 529.19 534.08 2,672.55 - CGD 0.75 0.92 0.98 0.98 0.98 4.61 TOTAL 5,481.76 6,003.03 6,556.16 5,501.01 5,568.65 29,110.61 9.2 PRIORITIES
From the above implementation plan, the total estimated budget for the ENCON Program during the period 2000-2004 is 29,110.61 million baht, or an average of 5,716 million baht/year. The Compulsory Program is of the highest priority, utilizing 58.5% of the total budget. The Voluntary Program is expected to utilize 22% of the total budget, and the Complementary Program will account for 19.5%. Within the Compulsory Program, the Existing Designated Factories and Buildings Project is of the highest priority since the owners of designated facilities must take action on energy conservation improvement to comply with the laws.
Table 4
Ratios of Expenditure Allocations under the ENCON Program
During the Period 2000-2004
COMPULSORY PROGRAM
- Government Buildings
- Existing Designated Factories and Buildings
- Factories and Buildings under Designing or Construction
- Public Awareness Campaigns (under the DEDP’s responsibility)58.5%
10.0%
46.5%
0.5%
1.6%VOLUNTARY PROGRAM
- Promotion of Renewable Energy Utilization
- Promotion of Small Power Producers Using Renewable Energy
- Industrial Liaison
- R&D
- Existing Non-Designated Factories and Buildings22.0%
5.2%
7.1%
2.5%
3.7%
3.5%COMPLEMENTARY PROGRAM
- Human Resources Development
- Public Awareness Campaigns (under NEPO’s responsibility)
- Management and Monitoring19.5%
5.8%
2.6%
11.1%Total 100.0% 9.3 ESTIMATION OF THE ENCON FUND REVENUE AND FINANCIAL STATUS
The estimation of the ENCON Fund revenue is based on the tax imposed on fuel (except for liquefied petroleum gas: LPG) at a rate of 4 satangs/litre since 1 October 1998. Therefore, when estimated from the current rate, the financial status of the Fund will be as follows:
Table 5
Estimation of the ENCON Fund Financial Status
Unit: Million baht
Fiscal Year 1999 2000 2001 2002 2003 2004 Revenue from the Petroleum Fund 14,000 1,195 1,243 1,292 1,340 1,389 Revenue from Interests Incurred 420 246 104 Committed Expenditures -1,939 -222 -35 -3 Fund Expenditures -5,482 -6,003 -6,556 -5,501 -5,569 Balance as at the Fiscal Year End 14,000 8,194 3,457 - 1,738 - 5,902 -10,082 Note: The past implementation of the ENCON Program during the fiscal period 1995-1999 has been reviewed in order to develop guidelines, criteria, conditions and expenditure priorities and to estimate required budgets to be allocated from the ENCON Fund for various programs and projects during Phase 2 of the Program. The budget estimation is based partly on the actual figures of committed expenditures for projects currently under way, which will be reimbursed by the Project Owners in installments according to the conditions made. Another part is based on basic requirements of each major program, taking into consideration the estimated overall revenues to be obtained in the corresponding periods. It can be noted that the Fund expenditures in the first year (of Phase 2) will be more than 50% (of the 1999 balance) because there are many projects awaiting approval. In the following years, the expenditures will also be higher than estimated revenues based on the present rate. If the domestic budgetary conditions become more secure, the estimation should be periodically revised, both revenues and expenditures, so that the differences will not be too high.
If the targets of the ENCON Program are achieved as planned, the expenditures will be as estimated, which will bring about a negative financial status of the ENCON Fund. Therefore, it would be necessary to increase the remittance rate to the ENCON Fund from 4 satangs/litre to 10.1 satangs/litre from the beginning of the fiscal year 2001 onwards. This will result in a better financial status of the ENCON Fund corresponding with the expenditures under the ENCON Program during the fiscal period 2000-2004, as can be shown below:
Table 6
Estimation of the Financial Status of the ENCON Fund
Unit: M. baht
Fiscal Year 1999 2000 2001 2002 2003 2004 Revenue from the Petroleum Fund 14,000 3,017 3,139 3,262 3,384 3,507 Revenue from Interests Incurred 420 300 217 124 64 Committed Expenditures -1,939 -222 -35 -3 Fund Expenditures -5,482 -6,003 -6,556 -5,501 -5,569 Balance as at the Fiscal Year End 14,000 10,016 7,230 4,118 2,121 123 The upward adjustment of the remittance rate for the ENCON Fund to make the financial status of the Fund correspond with the expected expenditures will have to be presented by the ENCON Fund Committee to the National Energy Policy Council for further consideration at a later stage.