Energy reform 'must proceed'

Charter court to rule on borrowing decree

Finance Minister Ekniti Nitithanprapas said the government would need to work more closely with the private sector on energy transition measures if the Constitutional Court decides to reject its 400-billion-baht emergency borrowing decree, stressing that energy reform is vital to economic security.

He was commenting ahead of Thursday's Constitutional Court ruling on the decree, which authorises the Ministry of Finance to borrow up to 400 billion baht to address energy-related pressures and support the country's energy transition.

Under the plan approved by cabinet on May 5, 200 billion baht would be used to ease cost-of-living pressures linked to the Middle East conflict, while the remainder would support renewable energy development.

The decree has been challenged by the People's Party, which argues the situation does not meet the constitutional requirement of "urgent and unavoidable necessity" for issuing an emergency decree instead of normal legislation.

The party also raised concerns over the lack of detail on energy transition spending, saying it should be subject to fuller parliamentary scrutiny.

Mr Ekniti said it was ultimately for the Constitutional Court to decide the matter, adding that the government's role was to provide complete and accurate information on the necessity of the measure.

He said Thailand remained heavily dependent on imported energy, particularly oil, with rising global prices contributing to pressure on the current account.

Geopolitical uncertainty, he added, meant risks of supply disruption and price volatility could persist.

If the ruling goes against the government, he said all sectors would need to be involved in preparing responses, particularly through public–private cooperation under the Joint Public and Private Sector Committee, which is already being used to advance energy transition initiatives.

He added that faster progress on the transition would require budget support, warning that delays would leave Thailand more exposed given its structural reliance on imported oil and fragile economic base.

He said discussions were already under way on projects including renewable energy expansion such as solar power, as well as transport-sector efforts to reduce dependence on diesel.

He also highlighted plans to expand biofuels derived from palm oil and sugarcane, which he said could also help boost farmer incomes.

Separately, the Senate debated a 10.328-billion-baht budget transfer bill for fiscal year 2026, which had already been approved by the House of Representatives and must be decided within 20 days.

Prime Minister Anutin Charnvirakul told the session the bill reallocates unspent and non-committed funds, including travel, training and overseas missions, as well as investment projects that could not proceed or were no longer necessary.

He said the funds would be moved into a central emergency reserve to support urgent responses, public services, welfare obligations and local economic activity in the final two quarters of the fiscal year.

Senate budget committee chairman Supachok Sarakit raised concerns that shifting funds away from investment budgets could weaken infrastructure development and long-term competitiveness.

He also warned that accelerated disbursement ahead of deadlines could affect project quality and value for money.

The Senate approved the bill, with abstentions, and it will now proceed to formal enactment.