Strategic Roadmap for Liberalizing Thailand’s Electricity Distribution Market: Part 2
Date: 2 January 2026
Detailed Strategy
1) The Strategic Problem: Monopoly-by-Area in a System Becoming Competitive
Thailand’s distribution structure is a classic case of “monopoly by territory.” While distribution wires often remain a natural monopoly, the **sale of electricity and energy services** is no longer inherently monopolistic. Technology has changed the cost curve: rooftop solar, behind-the-meter storage, smart inverters, EV charging, and energy management software increasingly enable customers to optimize consumption and even provide grid services. In this environment, geographic retail monopoly can become a barrier to innovation, a brake on clean energy procurement, and a source of persistent inefficiency.
The central policy objective, therefore, should not be “breaking up the wires.” It should be **opening access to the wires** while ensuring reliability, fair cost allocation, and universal service. The question is how to accomplish this without destabilizing MEA/PEA finances, undermining cross-subsidies that protect vulnerable users, or introducing regulatory arbitrage.
To be continued————————————————————————————————————————————-
Date: 2 January 2026
Detailed Strategy
1) The Strategic Problem: Monopoly-by-Area in a System Becoming Competitive
Thailand’s distribution structure is a classic case of “monopoly by territory.” While distribution wires often remain a natural monopoly, the **sale of electricity and energy services** is no longer inherently monopolistic. Technology has changed the cost curve: rooftop solar, behind-the-meter storage, smart inverters, EV charging, and energy management software increasingly enable customers to optimize consumption and even provide grid services. In this environment, geographic retail monopoly can become a barrier to innovation, a brake on clean energy procurement, and a source of persistent inefficiency.
The central policy objective, therefore, should not be “breaking up the wires.” It should be **opening access to the wires** while ensuring reliability, fair cost allocation, and universal service. The question is how to accomplish this without destabilizing MEA/PEA finances, undermining cross-subsidies that protect vulnerable users, or introducing regulatory arbitrage.
To be continued————————————————————————————————————————————-
Strategic Roadmap for Liberalizing Thailand’s Electricity Distribution Market: Part 2
Date: 2 January 2026
Detailed Strategy
1) The Strategic Problem: Monopoly-by-Area in a System Becoming Competitive
Thailand’s distribution structure is a classic case of “monopoly by territory.” While distribution wires often remain a natural monopoly, the **sale of electricity and energy services** is no longer inherently monopolistic. Technology has changed the cost curve: rooftop solar, behind-the-meter storage, smart inverters, EV charging, and energy management software increasingly enable customers to optimize consumption and even provide grid services. In this environment, geographic retail monopoly can become a barrier to innovation, a brake on clean energy procurement, and a source of persistent inefficiency.
The central policy objective, therefore, should not be “breaking up the wires.” It should be **opening access to the wires** while ensuring reliability, fair cost allocation, and universal service. The question is how to accomplish this without destabilizing MEA/PEA finances, undermining cross-subsidies that protect vulnerable users, or introducing regulatory arbitrage.
To be continued————————————————————————————————————————————-
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