Content Vision and Mission Statement
2 58
Board of Directors
About EGAT
4 76
Executives
Financial Overview
6 94
Corporate Governance
Message from Chairman
10 102
Official Information Act Compliance Report
Report of the Audit Committee
12 106
Power Development and Future Plan
Economic and Electricity Overview
14 124
Operations
16
Organization and Human Resource Development
Nature of Business of EGAT and Affiliates
26
Analysis of Operating Results and Financial Status
32
128
Corporate Social Responsibility
140
Events
146
Key Statistical Data
Enterprise Risk Management
40 152
Auditor’s Report
Organization Chart
44 154 45 232
Financial Statements
Structure of Organizational Management
Audit Fee
2
Vision
Good corporate governance
“ To b e c o m e a world-class organization in electricity business” with commitment to the following 5 aspects:
A high performance organization Operational excellence National pride Financial viability
Mission • To generate, acquire, transmit, and sell electricity • To conduct electricity-related businesses including production and sale of lignite
Core Culture Loyalty EGAT people are all committed to the organization; performing their duties with good faith, loyalty, skill, and diligence for the same unified goal to drive the organizational growth and safeguard the interest of EGAT and the nation.
Excellence All employees work with sound and farsighted planning, diligence, and determination and always give due consideration on safety and the interest of the country, society, and environment. All are committed to ่ continually develop themselves for improved competence and work performance to ensure the high quality, efficiency, and excellence of their works that earn EGAT the trust and acceptance from the public and domestic as well as international agencies and organizations.
Integrity EGAT praises and supports the employees with integrity and ethically sound conduct as well as the employees who dedicatedly do good deeds for the nation’s interest. EGAT is determined to prevent, by all means, the abuse of power and misconduct in the organization. It is also committed to equitable treatment to all employees and stakeholders.
3
Corporate Value Definition
Fairness
F
Desired behaviors Focus on transparency and accountability Treat others fairly without preference
Integrity
Desired behaviors Do one’s duty with honesty Conduct oneself with EGAT’s reputation in mind Abide by the law Be punctual
Responsibility & Accountability
Desired behaviors Give priority to the national interest, environmental conservation, community and society at large Carr y out one’s duty with determination, commitment, and perseverance Solve problems Work towards EGAT ’s goal while strengthening ties with the community
Mutual Respect
Desired behaviors Be understanding and listen to others’ opinions and feelings with empathy Be polite and considerate towards customers and others
Commitment to Continuous Improvement and Teamwork
Desired behaviors Eager to learn and develop oneself to be adaptable to change Th i n k s ys te m i c a l l y a n d holistically to create innovative ideas and solutions Be far-sighted and always look for new opportunities
Interact with all related individuals or parties fairly and equitably
Definition
I
Behave with integrity, honesty, openness, and truthfulness
Definition
R
C a r r y o u t o n e’s d u t y w i t h dedication and a complete sense of responsibility to the national interest, community, society, and environmental protection
Definition Treat others with honor, respect people’s dignity and opinions, and learn to live in harmony with the community Definition Continuously improve self and team performance to create a culture of innovation, ready oneself for change
M C
Strategic Themes
EGAT aims to achieve its vision by means of the 4 strategic themes as follows:
Strengthening competitiveness in core businesses
Building growth in subsidiary companies and related businesses
Being a caring organization to the society, community, and environment
Being a high-performance organization
4
About EGAT The Electricity Generating Authority of Thailand (EGAT) was established by virtue of the EGAT Act B.E. 2511 (1968) on May 1, 1969. The year 2014 marked the 45th anniversary of EGAT establishment. Being a state enterprise in the area of energy under the Ministry of Energy with the Ministry of Finance as major shareholder, EGAT is responsible for generating, acquiring, and supplying electricity to Metropolitan Electricity Authority (MEA), Provincial Electricity Authority (PEA), legal power users, and neighboring countries such as Malaysia. EGAT is also responsible for power related activities and service, producing and selling lignite and its by-products under the EGAT Act B.E. 2511 (1968) and its amendments B.E. 2535 (1992).
5
At present, the operation of EGAT is in accordance with the Electricity Supply Industry whereby, under the supervision of the Energy Regulatory Commission, EGAT is the producer and supplier of electricity and controls over the electricity production and distribution throughout the country to be efficient and adequate for the demand in parallel with environmental management for the community and society. EGAT Headquarter is situated at No. 53, Moo 2, Charansanitwong Road, Bang Kruai, Nonthaburi 11130. The Transmission System Operation has 5 offices. Two are in Nonthaburi Province, and the rest are in Phitsanulok, Khon Kaen, and Krabi Provinces.
6
Financial Overview
(Consolidated Financial Statements)
Unit : Million Baht 2014* 2013* 2012
Operating Performance
Revenues from sales and services
557,728.49
536,913.33
512,991.89
Income from sales and services
60,633.52
63,342.28
39,939.59
Gains (Losses) on foreign exchange
774.24
(4,975.80)
634.43
Financial costs
25,709.68
25,715.83
5,343.21
Net income - EGAT and its subsidiaries
38,818.54
34,672.57
37,363.11
Net income - Non-controlling interests
3,321.55
3,570.15
6,273.33
Financial Status
Total assets
735,319.96
709,426.74
673,367.04
Property, plant and equipment - net
260,073.85
237,345.84
242,521.85
Total liabilities
362,817.79
357,883.66
4,934.13
Long - term debts
82,553.98
84,511.96
(1,957.98)
Owners’ equity and non-controlling interests 372,502.17 351,543.08 20,959.09 Financial Ratios
Ratio of gross profit to net sales (percentage)
14.00
14.80
11.24
Ratio of net profit to net sales (percentage)
7.56
7.12
8.51
Rate of return on total assets (percentage)
5.83
5.53
7.46
Debt to equity ratio (Time)
0.97
1.02
1.01
Time interest earned (Time)
2.69
2.54
9.33
Remark : * Financial ratio for the years 2014 and 2013 are calculated from the financial statements prepared in accordance with Financial Reporting Interpretations No. 4 and Accounting Standard No. 17.
7
Invent...
Invent ... an innovation
EGAT has encouraged its personnel to have an awareness of inventing an innovation which helps increase greater efficiency in EGAT’s operation, protect the environment, and develop renewable energy so as to enhance competitiveness of the organization and sustainability in energy development of the country.
10
Message from Chairman In 2014, which was another year of operational success, EGAT had improved the efficiency of Mae Moh Power Plant Units 10 – 11 and had conducted traceability in order to apply to the CDM Executive Board (CDM-EB) for certification of the greenhouse gas emission reduction. The project was certified by UNFCCC as the largest CDM project in Thailand and had the largest carbon credit per year in the world on Energy Efficiency Improvements of a Power Plant through Retrofitting Turbines. The CER Issuance of the project was successfully certified by CDM-EB on February 3, 2015, which was regarded the cooperation in voluntary reduction of greenhouse gas emission under the Kyoto Protocal. Moreover, EGAT received two outstanding state enterprise awards in 2014, namely the “State Enterprise of Pride Award” and the “Outstanding Innovation Award” in the organization category for the work on “Remote Terminal Unit (RTU).” Another award which all EGAT employees were proud of was the “Transparency Organization Award” given by the National Anti-Corruption Commission. The award reflects the core culture and the strong determination of EGAT in carrying out its mission with incorruptibility and trustworthiness throughout its 45year operation. In 2014, the overall economic expansion of Thailand was below the target, and there was a slowdown in global economy, contributing to the increase in electricity demand for only 1.29 percent which was similar to the previous year. The country’s total installed generating capacity was 34,668.03 MW or an increase of 2.93 percent from the prior year. Of the total electricity, 15,482.13 MW accounting for 44.66 percent was generated by EGAT’s own power plants and 19,185.90 MW accounting for 55.34 percent was purchased from private power producers and neighboring countries. The country’s gross energy generation and purchase increased 4,045.02 million kilowatt-hours (kWh) or 2.33 percent from the prior year to 177,580.47 million kWh, comprising 73,335.79 million kWh or 41.30 percent from EGAT’s generating facilities and 104,244.68 million kWh or 58.70 percent purchased from private power producers and neighboring countries. The country’s energy mix for electricity generation included 67.76 percent from natural gas, 20.11 percent from coal, 2.91 percent from hydropower, 6.91 percent from imported electricity, 1.07 percent from bunker oil and diesel, and 2.24 percent from biomass and renewable energy. EGAT’s electric energy sales increased 2.40 percent from the prior year to 173,603.81 million kWh. EGAT has given importance to social and environmental development together with the development of power sources and transmission system which is an integral part of its operation. In 2014, in following the royal initiative of Their Majesties the King and Queen in preserving, remedying, and taking care of forest in Thailand to become sustainably fertile, EGAT’s Reforestation Project had planted trees for the 20th consecutive year covering an area of more than 400,000 rai or 80 million trees in 49 provinces which could reduce 80 million tons of carbon dioxide. Likewise, in 2014, EGAT entered the beginning of the third decade of the Demand Side Management Program. The program’s achievement during 1993-2014 was the reduction of electricity consumption of 3,538.8 MW and the reduction of carbon dioxide of 12.3 million tons.
11
Last year there was a great change and expansion of electricity industry and fuel market. EGAT needed to modify its strategic plan with the concern on business environment in the country, the region, and the world as well as other internal factors to “become Top Quartile among other utility companies around the world.� To achieve this, the cooperation from EGAT Board of Directors, Governor, Deputy Governors, and executives of EGAT affiliates and subsidiaries was needed to set the main strategies and aims that would be passed on to Assistant Governors, Directors, and other employees. On October 22, 2014, EGAT Board of Directors approved EGAT Corporate Enterprise Plan 2015-2025 which would be used as mother plan of EGAT strategic operation and direction of the organization in the future, through the new view on energy and current economic situations of the world. On this occasion, on behalf of EGAT Board of Directors and executives, I would like to thank all stakeholders for their good support and cooperation which have significantly contributed to our successful operations. I hope to receive their continued support for further prosperity in electricity activities of our country.
(Mr. Kurujit Nakornthap) Chairman, Board of Directors Electricity Generating Authority of Thailand (EGAT)
12
Report of the Audit Committee The Audit Committee, appointed by the EGAT Board of Directors, consists of three members selected from independent directors from the EGAT Board of Directors. One member, at least, shall be knowledgeable and have experience in finance and accounting. EGAT Assistant Governor - Internal Audit Bureau serves as secretary of the Audit Committee. The Audit Committee has independently performed its duties in accordance with the procedures set forth in the Audit Committee Charter to enhance good corporate governance. In 2014, 10 meetings were held to discuss relevant agenda with the EGAT management and the independent auditor (from the Office of the Auditor General of Thailand). The significant issues can be summarized as follows:
• Review with the Governor, Deputy Governor - Account and Finance, and the independent auditor from the Office of the Auditor General of Thailand, on the monthly, quarterly, and annual financial statements of EGAT and its subsidiaries. The purpose of the review was to consider the appropriateness of the reports and to give useful recommendations to ensure the accuracy and reliability of the reports with adequately important information disclosure, in accordance with generally accepted accounting principles.
• Review of EGAT’s risk management and internal control system to consider the sufficiency, appropriateness, and coverage of all significant issues
• Review of quarterly internal audit reports of EGAT and its subsidiaries and continuous follow-up on the correction and improvement in accordance with the audit comments
• Review of the evaluation reports of the Governor’s performance
• Discussion with the Governor and the independent auditor on the development of the internal control systems
• Discussion with the top management and management team of each business unit to consider risk management, internal control systems, and monitoring processes of key activities within their respective units to provide the best interests for EGAT’s operations
13
• Discussion with the independent auditor on the scope and processes of the auditing practices to achieve good coordination and reduce duplication of efforts
• Approval of the annual audit plan for 2015 and the 5-year strategic audit plan (2015-2019) as well as the sufficiency of the resources and the performance assessment of the Internal Audit Bureau
• Review of the appropriateness of the EGAT Audit Committee Charter, the EGAT Internal Audit Charter, and the Internal Audit Work Manual
• Preparation of the report of the Audit Committee and submission of the report to the EGAT Board of Directors, the Ministry of Energy, and the Ministry of Finance
• Setting of the meeting schedules for the Audit Committee and the agendas for the whole year of 2015 to cover all issues within the remit of the Audit Committee in order to ensure the effectiveness of the meetings
• Conduct of an annual self-assessment of the Audit Committee and an individual member of the Audit Committee based on the guidelines set forth by the Ministry of Finance for the audit committee of the state enterprises and submission of self-assessment report to the EGAT Board of Directors to enhance the effectiveness, transparency, and reliability of the Audit Committee
The Audit Committee believed that throughout the year 2014, EGAT had maintained the effective risk management, internal control systems, and good corporate governance practices which enabled EGAT’s operations to meet the set objectives. EGAT’s financial statements were also prepared in accordance with generally accepted accounting principles and were presented with adequate information disclosure. EGAT also operated in complete compliance with laws, rules, and regulations with no significant deficiency. In performing their duties, each member of the Audit Committee expressed their opinions independently and provided straight recommendations to the management and concerned parties to ensure the best interests of all related parties.
(Mr. Porametee Vimolsiri)
Chairman of the Audit Committee
February 23, 2015
14
Economic and Electricity Overview In 2014, the overall peak demand of EGAT power system was 26,942.10 MW occurring at 14.26 hours on Wednesday, April 23, 2014 representing an increase of 344 MW or 1.29 percent of the previous year. The total net energy generation requirement throughout the year 2014 rose to 177,580 million kWh from 173,536 million kWh in the previous year. This marked an increase of 4,045 million kWh or 2.33 percent. The slight demand growth was due to 0.5 percent shrinkage of Thai economy in the first quarter of 2014 as a result of the concerns over the political situation in the country and a continuous slowdown of income base and economic climate. Moreover, the delay in forming the new government caused more limitations on the budget disbursement of state sector and on key economic measures. For 2015, it has been predicted that the overall peak demand of EGAT power system will be approximately 28,269 MW or an increase of 4.93 percent from that of 2014, whereas the total net energy requirement will be 182,575 million kWh or an increase of 2.98 percent. (Reference: The prediction was approved by the Working Group on Electricity Demand Prediction on January 7, 2015).
15 The National Economic and Social Development Board (NESDB) has predicted that Thailand economic growth in 2015 will be approximately 3.5 to 4.5 percent. The supporting factors are the regaining export and tourism improvement following the global economic recovery, the investment of private sectors in the projects approved by the Board of Investment (BOI) under the investment promotion scheme in 2014, the acceleration of government’s key investment projects, the expansion of domestic car manufacturing and sales, and the reduction of global oil price. It has been expected that the values of goods export, residential consumption, and overall investment will increase by 4.0, 2.6, and 5.8 percent, respectively. In addition, the inflation rate will be around 1.4 to 2.4 percent, and the current account surplus will be 2.2 percent of Gross Domestic Product (GDP).
16
Operations Power Generation System In 2014, EGAT’s power plants had a total installed generating capacity of 15,482.13 MW accounting for 44.66 percent of the country’s gross energy generation. The purchased power capacity included 13,166.70 MW from domestic independent power producers (IPPs) representing 37.98 percent of the country’s total generating capacity, 3,614.60 MW or 10.43 percent from small power producers (SPPs), and 2,404.60 MW or 6.94 percent imported from neighboring countries.
Power Generation and Purchase In 2014, the peak demand of 26,942.10 MW occurred on Wednesday, April 23, 2014 at 14.26 hours marking an increase of 343.96 MW or 1.29 percent from the previous year (26,598.14 MW on Thursday, May 16, 2013 at 14.00 hours). The net energy/day was 574.38 million kWh (on Wednesday, April 23, 2014), representing an increase of 8 million kWh or 1.41 percent from the previous year. In 2014, the total net energy was 177,580.47 million kWh representing an increase of 4,045.02 million kWh or 2.33 percent from the preceding year. Electricity generation of EGAT in 2014 relied on natural gas as the main fuel. The country’s energy mix for electricity generation included 118,559.38 million kWh or 66.91 percent from natural gas, 35,711.92 million kWh or 20.11 percent from coal, 5,164.03 million kWh or 2.92 percent from hydropower, 12,267.94 million kWh or 6.91 percent from imported electricity, 1,895.90 million kWh or 1.07 percent from bunker oil and diesel, and 3,975.17 million kWh or 2.24 percent from biomass and renewable energy.
In 2014, the following new power plants were added to the country’s power system: Wang Noi Combined Cycle Power Plant, Block 4 of which the contractual capacity is 750.0 MW using natural gas as fuel, and the COD was on April 25, 2014 at 8.00 am. Chana Combined Cycle Power Plant, Block 2 of which the contractual capacity is 766.0 MW using natural gas as fuel, and the COD was on July 15, 2014 at 8.00 am. 1, 2014
Naresuan Hydropower Plant of which the contractual capacity is 8.0 MW, and the COD was on September
Ratchaburi World Cogeneration Co., Ltd. (Phase1) (SPP Firm) of which the contractual capacity is 90.0 MW using natural gas as fuel, and the COD was on November 1, 2014 at 12.00 hours. Gulf JP NS Co., Ltd., combined cycle power plant, Block 2 of which the contractual capacity is 800.0 MW using natural gas as fuel, and the COD was on December 1, 2014 at 8.00 am.
The following power plants were decommissioned in 2014: Bang Pakong Thermal Power Plant, Units 1 and 2 which had been changed to Emergency Standby Mode Power Plant with the capacity of 1,052 MW and was decommissioned on January 1, 2014 Electricity Generating (Plc.) (EGCO) (Rayong Combined Cycle Power Plant, Blocks 1-4) of which the contractual capacity was 1,174.99 MW was decommissioned on December 7, 2014 after having completed the purchase contract For 2015, it has been estimated that the maximum power demand is 27,646 MW, and the total electricity generation and purchase is 184,509 million kWh. The growth rate is 2.61 percent and 3.88 percent respectively of the previous year.
Fuel Consumption Natural gas supply for EGAT’s electricity generation was derived from the various gas fields in the Gulf of Thailand and inland sources (Nam Pong, Phu Hom, and Sirikit fields) and imported from Myanmar (Myanmar field and LNG). In 2014, natural gas utilization by EGAT’s power plants amounted to 388,530 billion BTU costing 119,955 million Baht. The amount of natural gas used by the IPPs’ power plants was 368,611 billion BTU costing 116,276 million Baht. Therefore, the total amount of natural gas used in electricity generation was 757,140 billion BTU. The average price of the natural gas (including marketing and piping charges) was 312.00 Baht/ million BTU. The total price was 236,230 million Baht.
Natural gas utilization in terms of amount, price, and value (2012-2014)
Year
Power plant
Gas utilization Billion BTU
(%)
Price1 Value2 (Baht/million BTU)
(Million Baht)
2012 829,535 100 288.25 EGAT 409,195 49 IPP 420,339 51
239,113 115,947 122,166
2013 772,152 100 303.83 EGAT 385,831 50 IPP 386,320 50
234,606 115,336 119,270
2014 757,140 100 312.00 EGAT 388,530 51 IPP 368,611 49
236,230 119,955 116,276
Remarks: 1. The price of natural gas is the average price of natural gas purchased by EGAT power plants including marketing and piping charges 2. The value of natural gas includes marketing and piping charges but does not include the value-added tax (VAT).
18
Amount of utilized natural gas and price Million BTU
Baht / Million BTU
1,200,000,000 300
1,000,000,000 800,000,000
IPP
600,000,000
EGAT
400,000,000
Price
200,000,000 0
2555 2556 2557
0.00
From the table and the chart, it was obvious that the use of natural gas as fuel in power generation during 2012-2014 had a tendency to decrease. The proportion of natural gas consumption by EGAT and IPPs’ power plants which was 50:50 had been stable during the past 3 years. As Rayong Power Plant was decommissioned in December 2014, the natural gas consumption by IPPs’ power plants decreased by the end of 2014. However, the average price of natural gas during 2012-2014 continuously increased, partly due to the increasing import of liquefied natural gas (LNG). In 2014, the value of natural gas purchased for electricity generation increased to 1,624 million Baht or by 0.69 percent from the year 2013.
Lignite production (2014)
Plan Actual +/-
Amount of lignite in crusher (ERP system) : million tons
16,674
17,065
101.9%
Amount of lignite delivered to the power plant : million tons
16,494
17,021
103.2%
Amount of electricity : million kWh
19,386
19,393
100.03%
Amount of soil : million cubic meters
89,765
83,227
92.7%
Stripping ratio : cubic meters/ton
4.95
5.21
LHV : Kcal/kg
2,655
2,607
Derated loss : million units
101,340 (0.530%)
Cost of lignite production : Baht/ton
641.20
561.73
94.58%
Cost of lignite delivered to the power plant : Baht/ton
857.36
594.72
96.06%
19
Energy Sales EGAT’s energy sales totaled 173,603.81 million kWh. Its sales included 50,043.56 million kWh sold to the Metropolitan Electricity Authority (MEA), 120,200.48 million kWh to the Provincial Electricity Authority (PEA), 3,186.95 million kWh to direct customers and neighboring countries (Lao PDR, Malaysia, and Cambodia), and 172.82 million kWh to other customers purchasing electricity for temporary and standby use.
Energy Adjustment Charge (Ft Tariff) In 2014, the cost of electricity generation increased from the year 2013 particularly the price of natural gas which was the main fuel in electricity generation rose 11 Baht/million BTU (an increase from the average price of 311 Baht/million BTU to be 322 Baht/million BTU) or 3.5 percent resulting in the higher cost in electricity generation. To cope with the situation, management for the maximum effectiveness in electricity operation was used by EGAT to control the cost in power generation. The Energy Regulatory Commission (ERC) approved the electricity tariff for 2014 with 3 revisions, namely January-April (the Ft Tariff of 0.59 Baht per unit), May-August (the Ft Tariff of 0.69 Baht per unit), and September-December (the Ft Tariff remained at 0.69 Baht per unit).
Ft tariff in 2014 Ft tariff Revision Month (Baht/Unit)
1 2 3
January - April May - August September - December
Average retail tariff including Ft (Baht/Unit)
0.59
3.86
0.69
3.96
0.69
3.96
20
EGAT Generation Fleet
EGAT’s capacity in power generation according to types of power plants Type of power plant Installed capacity (MW)
Percentage of the system capacity
Hydropower 3,444.18 22.25 Thermal
3,647.00
23.56
Combined cycle
8,382.00
54.14
Diesel
4.40
0.03
Renewable energy
4.55
0.03
Total
15,482.12
100.00
EGAT’s power plant performance No. Detail
1
Heat rate (kJ/kWh)
2 GWEAF (%)
2011 2012 2013 2014
8,694.00
8,662.00
8,620.00
8,503.00
92.75 90.54 92.10 92.80
3 POF (%)
3.39 5.00 4.10 3.90
4 UOF (%)
2.58 2.84 2.30 2.30
In 2014, the overall performance of EGAT’s generating power plants was improved continuously with lower heat rate than in 2012 and 2013. The generating weighted equivalent availability factor (GWEAF) of all EGAT power plants amounted 0.7 percent higher than the preceding year due to the control measure of the unplanned outage, the reduction of generation capacity, and the adjustment of the plan for power plant maintenance to be completed earlier than the schedule without extension of the maintenance time. The planned outage factor (POF) in 2014 was 0.2 percent lower than in 2013, while the unplanned outage factor (UOF) remained the same. EGAT was able to control the rate of UOF to be less than 3 percent continuously since 2010.
21
Transmission System During the year 2014, EGAT pursued its plan in transmission system development covering the improvement, maintenance, and expansion of transmission network to increase capability and stability of the power supply system. Major transmission system projects completed during the year included circuit lines 3 and 4 of 230 kV transmission line of Ratchaburi 3 - Samut Sakhon 4, 115 kV transmission line of Lamphun 1 Lampang 1, circuit line 2 of 115 kV transmission line of Hangchat - Lamphun 2, and decommission of 115 kV transmission line of Hat Yai 1 – Phatthalung for replacement Moreover, new transformers were installed, changed, and withdrawn at the following substations:
• 200 MVA KT1A transformer at Lat Phrao Substation
• 300 MVA KT2A transformer at Surat Thani Substation
• 200 MVA KT8A transformer at Tha Tako Substation
• 200 MVA KT5A (230/115 kV) transformer at Chanthaburi Substation
• 200 MVA KT5A (230/115 kV) transformer at Thung Song Substation
• 100 MVA KT4A (230/115 kV) transformer at Phatthalung Substation
• 200 MVA KT6A (230/121-33 kV) transformer at Nakhon Sawan Substation
• 25 MVA KT2A (115-22-11 kV) transformer was replaced by 25 MVA KT2A (115-22-11 kV) transformer at Loei Substation
• 25 MVA KT2A (115-33-11 kV) transformer at Takua Pa Substation was withdrawn
22 Presently, EGAT’s transmission network comprises transmission lines of 32,526.992 circuit-kilometers with 213 substations, 572 delivery points, and a total transformer capacity of 88,461.44 MVA. In 2014, forced outages occurred 53 times, out of which 7 times were caused by failure of the transmission lines and 46 times from the substation equipment. The interruption was caused mainly by malfunction of substation equipment and control and prevention equipment (16 times), by animals (16 times), by human errors, either staff or outside people (9 times), by environment (6 times), by weather (2 times), and by unidentifiable reasons (4 times). In 2014, EGAT’s bulk power supply system reliability performance was as follows:
• System interruption severity (SISI) - System-minutes (MW - minutes/MW)
0.73431
• System average interruption frequency index (SAIFI), number of occurrence/ delivery point
0.18282
• System average interruption duration index (SAIDI), minutes/delivery point
2.61577
• System availability (SA) (%)
99.9701
• Transmission circuit availability (%)
99.99550
• Transformer availability (%)
99.75207
The quality of the power supply service was well maintained with frequency being controlled within the band of 49.50-50.50 Hz and the system voltage being steadily controlled within the range of 95-105 percent of nominal voltage.
23 To ensure the availability and continuity of the supply service, EGAT has given priority to the improvement and maintenance of existing transmission facilities. Works carried out during the year included insulators cleaning for the 500 kV transmission lines in the areas highly exposed to dirt, pollution, smoke, and waste from birds. Fire drills and exercises of black start restoration were practiced as well as the preparation of transmission network development plan. Preventive measures to minimize interruption of power supply caused by human errors and equipment malfunctions caused by animals were set up. EGAT also implemented public communication program to reduce power losses and damages to transmission facilities caused by community activities and addressed the concern and complaints of all stakeholders regarding power transmission. With this, EGAT has successfully maintained its capability in supplying electricity of high quality in terms of voltage and frequency with continuity, stability, and reliability. Moreover, EGAT has participated in the benchmarking of the International Transmission Operation and Maintenance Study (ITOMS) to have available data in work improvement and to find performance index appropriate to the transmission work.
Create...
Create
... the energy learning centers
In creating energy learning centers in every region of the country, EGAT has strong determination to provide learning opportunity for the people particularly the youth to pursue their dreams for the better future.
26
Nature of Business of EGAT and Affiliates EGAT’s Business Operation EGAT is a state enterprise under the Ministry of Energy and Ministry of Finance having the principal mission in electricity generation, acquiring and selling electricity to the Metropolitan Electricity Authority (MEA) and Provincial Electricity Authority (PEA), a number of direct customers by law, and neighboring countries. EGAT is also responsible for other related businesses as stipulated by EGAT Act.
1. Electricity Business
1.1 Generation
EGAT owns and operates various types of power plants located in 41 sites countrywide with a total installed capacity of 15,482.13 MW. Its power generation facilities consist of 3 thermal power plants, 6 combined cycle power plants, 23 hydropower plants, 8 renewable energy plants, and a diesel power plant.
1.2 Electricity Purchase
In addition to operating its own power plants, EGAT also purchases bulk electricity from 11 Independent Power Producers (IPPs) totaling 13,166.70 MW, from Small Power Producers (SPPs) totaling 3,614.60 MW, and from neighboring countries, namely Lao PDR and Malaysia totaling 2,404.60 MW.
1.3 Transmission
EGAT transmits electricity generated by its own power plants and purchased from private power producers through its own grid network covering all parts of the country. EGAT’s transmission lines comprise different voltages ranging from 500 kV, 230 kV, 132 kV, 115 kV, and 69 kV. EGAT sells electricity to two distributing authorities namely Metropolitan Electricity Authority (MEA) and Provincial Electricity Authority (PEA) which deliver electricity to their retail customers countrywide. EGAT also sells electricity to the power utilities of neighboring countries, namely Lao PDR at 115 kV and at 22 kV lines and Malaysia at 300 kV HVDC lines.
2. Other Businesses
2.1 Energy Related Businesses
In 2014, EGAT conducted its businesses in accordance with the strategic themes in building growth from its energy-related businesses. Moreover, EGAT expanded its energy-related businesses to ASEAN countries particularly the CLMV (Cambodia, Lao PDR, Myanmar, and Vietnam) as a preparation for the upcoming ASEAN Economic Community (AEC) in 2015. The expansion of EGAT’s energy-related businesses to ASEAN countries, not only increases revenue to EGAT, but also builds the stability of electricity system in Thailand as those power plants have also supplied electric power back to the Thailand. Furthermore, EGAT’s energy-related businesses have strengthened relationship among ASEAN countries. In 2014, the outstanding EGAT’s related businesses in oversea countries are as follows : - Technical Advisory Services in Coal Survey for Mine-Mouth Power Plant Project, Keng Tung, Myanmar - Technical Advisory Services (Review and Comment of FS and EIA Reports) for Quang Tri Coal Fired Power Plant Project - Operation and Maintenance Service for Hongsa Lignite - Fired Power Plant, Lao PDR (Mobilization Phase, COD Unit will start on June 1, 2015) - Commissioning Services for Ywama Power Plant, Myanmar - Training in Operation and Maintenance Service for personnel of Electricity Authority of Myanmar - Dam Drain Cleaning Service for Nakai Dam, Nam Theun 2 Hydro Power Plant In Thailand, EGAT has expanded the scope of its energy-related business of Operation and Maintenance Service to SPPs. EGAT has signed 7 long-term contracts with Gulf JP. Furthermore, EGAT cooperates with the leading educational institutions in the country to conduct research and development (R&D) of the by-product from electricity generation of the Mae Moh Lignite-Fired Power Plant in Lampang Province, to produce fly ash and synthetic gypsum. These by-products are utilized in the quality improvement of cement and in organic fertilizer to enrich the soil quality.
28 Other than EGAT’s related businesses mentioned above, EGAT also provides Engineering and Construction Service for Bangpa-in Cogeneration Power Plant and provides Engineering Service for the preparation of document used in tendering, analysis, and evaluation for the Cogeneration Plant Project (Phase 2) of the District Cooling System and Power Plant Company Limited (DCAP) to support the expansion of Suvarnabhumi International Airport. Regarding the transmission business, EGAT provides Maintenance Services for transmission equipment of substations and high-voltage transmission lines to domestic IPPs and SPPs and those of the neighboring countries. The service provision is a way to enhance the reliability of the electrical system of Thailand. Furthermore, through the cooperation with its alliances, a testing service for high-voltage equipment complying with the international standards has been developed. The testing service has upgraded the electrical industry of Thailand and saved the testing cost for the products to be tested abroad.
2.2 EGAT’s Affiliates EGAT has invested in electricity generation and energy related businesses in the following five companies:
Subsidiary Companies
• Ratchaburi Electricity Generating Holding Public Company Limited (RATCH) Nature of Business
RATCH was established as a holding company on March 7, 2000 and gets dividends from its invested companies as main revenue. The company focuses mainly on investing and developing electricity generating business which concentrates on diversity of resources, ranging from natural gas, oil, coal, hydro, and alternative energy such as wind power, etc. The company is also interested in expanding into related businesses such as operation and maintenance service for power plant, coal mining, and investing jointly with partners in various projects, both in Thailand and other countries. At present, RATCH has the total capacity of 5,560.95 MW comprising 4,808.63 MW from domestic projects and 752.32 MW from overseas projects. Shareholding As of December 31, 2014, RATCH had a total registered capital of 1,450 million shares (equivalent to 14,500 million Baht). Its ownership structure is composed of 45 percent stakes held by EGAT and 55 percent stakes held by general public.
29
• EGAT International Company Limited (EGATi) Nature of Business
EGATi was established by EGAT on December 18, 2007. In order to acquire electricity for use in the country, EGATi aims to directly invest or set up subsidiaries to invest in power development projects in foreign countries as a way to expand EGAT business opportunity. Shareholding As of December 31, 2014, EGATi had a total registered capital of 436.2 million shares (4,362 million Baht). EGAT presently holds 99.99 percent stakes in EGATi.
• EGAT Diamond Service Co., Ltd. (EDS) Nature of Business
EDS is a joint venture business founded on December 15, 2009 by EGAT, Mitsubishi Heavy Industries Ltd. (MHI), Mitsubishi Corporation (MC), and Ratchaburi Electricity Generating Holding Public Company Limited (RATCH). The objective of the company is to provide refurbishment work for the hot gas path parts of gas turbine in the 18 countries which include Thailand, Malaysia, Singapore, Lao PDR, Myanmar, Vietnam, Cambodia, Brunei, Australia, New Zealand, India, Pakistan, Bangladesh, Sri Lanka, Bhutan, Nepal, Afghanistan, and Maldives. The Gas Turbine Refurbishment Service Center which is located in Navanakorn Industrial Estate, Pathum Thani Province has started its operation in April 2011. Shareholding As of December 31, 2014, EDS had a total registered capital of 6.23 million shares (623 million Baht). Its ownership structure is composed of EGAT, MHI, MC, and RATCH with the portion of 45 percent, 30 percent, 15 percent, and 10 percent stakes respectively.
30
Associated Company
• Electricity Generating Public Company Limited (EGCO) Nature of Business
EGCO was established as a holding company by EGAT on May 12, 1992. Its revenues are mainly from dividends of subsidiary and associated companies. EGCO focuses mainly on generating and selling electricity to EGAT and other local customers as well as customers in ASEAN countries under the long-term Power Purchase Agreement (PPA). The company also provides a variety of energy-related services. Business of EGCO can be categorized into 5 groups as follows;
1) Independent Power Producer (IPP)
2) Small Power Producer (SPP)
3) Very Small Power Producer (VSPP)
4) Overseas Power Producer
5) Other business groups which are operation and maintenance companies (O&M), water supply companies, and mines. At present, EGCO has a total generating capacity of 3,792 MW consisting of 2,616 MW from domestic projects and 1,176 MW from overseas projects. Shareholding As of December 31, 2014, EGCO had the total registered capital amounting to 530 million shares (5,300 million Baht) of which 526.47 million shares (5,264.65 million Baht) were issued and paid-up. EGCO’s shareholders are EGAT (25.41 percent), TEPDIA Generating B.V. (23.94 percent), and the general public (50.65 percent).
Joint Venture
• District Cooling System and Power Plant Co., Ltd. (DCAP) Nature of Business
DCAP is a joint venture business founded on April 2, 2003 by EGAT, PTT Public Company Limited (PTT), and MEA. The objective of the company is to generate and sell electricity and cooling water to the Suvarnabhumi International Airport. Presently, DCAP is conducting a feasibility study for its investment project of a new cogeneration plant to support the Suvarnabhumi International Airport (Phase 2). Shareholding As of December 31, 2014, DCAP had a total registered capital of 167 million shares (1,670 million Baht). Its ownership structure is composed of EGAT, PTT, and MEA with the portion of 35 percent, 35 percent, and 30 percent stakes respectively.
31
EGAT’s Investment in Its Affiliates Registered Company capital Ownership (%) (million Baht) Ratchaburi Electricity Generating
14,500
45
Holding Public Company Limited (RATCH)
Status
Subsidiary Company
8/8 Moo 2, Bang Khane Sub-district, Mueang District, Nonthaburi Province 11000 Tel : +66 (0) 2794 9999 Fax : +66 (0) 2794 9998 Website : www.ratch.co.th EGAT International Company Limited (EGATi)
4,362
99.99
53 Moo 2, Charansanitwong Road, Bang Kruai District,
Subsidiary Company
Nonthaburi Province 11130 Tel : +66 (0) 2436 4000 Fax : +66 (0) 2436 4017 Website : www.egati.co.th
EGAT Diamond Service Co., Ltd. (EDS)
623 45 Subsidiary
56/25 Moo 20, Khlong Nueng Sub-district,
Company
Khlong Luang District, Pathum Thani Province 12120 Tel : +66 (0) 2529 0800 Fax : +66 (0) 2529 0900 Website : www.egatdiamond.co.th
Electricity Generating Public Company Limited (EGCO)
5,300
25.41 Associated
EGCO Tower 222 Moo 5, Vibhavadi-Rangsit Road,
Company
Thungsonghong Sub-district, Laksi District, Bangkok Province 10210 Tel : +66 (0) 2998 5000 Fax : +66 (0) 2998 0956-9 Website : www.egco.com District Cooling System and Power Plant Co., Ltd. (DCAP) 222 Moo 1, Nong-Prue Sub-district, Bang Phli District, Samut Prakan Province 10540 Tel : + 66 (0) 2327 4242 Fax : +66 (0) 2327 4244 Website : www.dcap.co.th
1,670
35
Joint Venture
32
Analysis of Operating Results and Financial Status 1. Analysis of Operating Results of EGAT and Its Subsidiaries Operating results of EGAT and its subsidiaries including associated company and jointly controlled entity for the years ended December 31, 2014 and 2013 are summarized as follows: Operating Results
2014* Million Baht
(Adjusted) 2013* Million Baht
Revenue from sales and services
557,728.49
536,913.34
20,815.15
3.88
512,991.89
Revenue from electric energy sales
536,318.41
512,820.46
23,497.95
4.58
486,243.70
21,410.08
24,092.88
(2,682.80)
(11.14)
26,748.19
Cost from sales and services
479,643.80
457,443.75
22,200.05
4.85
455,351.97
Cost of electric energy sales
460,197.88
435,263.92
24,933.96
5.73
430,040.29
Cost of sales of other goods and services
19,445.92
22,179.83
(2,733.91)
(12.33)
25,311.68
Gross profit
78,084.69
79,469.59
(1,384.90)
(1.74)
57,639.92
Other revenue
6,574.80
4,774.20
1,800.60
37.72
6,114.57
Income before expenses
84,659.49
84,243.79
415.70
0.49
63,754.49
148.58
143.55
5.03
3.50
131.85
17,302.59
15,983.76
1,318.83
8.25
17,568.48
Other expenses
455.63
5,238.94
(4,783.31)
(91.30)
96.23
Operating income
66,752.69
62,877.54
3,875.15
6.16
45,957.93
Share of profit from associated company and jointly controlled entity of subsidiaries under the equity method
2,379.00
2,514.25
(135.25)
(5.38)
3,908.96
Income before financial cost and income tax
69,131.69
65,391.79
3,739.90
5.72
49,866.89
Financial cost
25,709.67
25,715.83
(6.16)
(0.02)
5,343.21
1,281.94
1,433.24
(151.30)
(10.56)
887.24
42,140.08
38,242.72
3,897.36
10.19
43,636.44
3,321.54
3,570.15
(248.61)
(6.96)
6,273.33
38,818.54
34,672.57
4,145.97
11.96
37,363.11
Revenue from sales of other goods and services
Selling expenses Administrative expenses
Income tax (part of subsidiaries) Net income for the year Net income – Non-controlling interests Net income – EGAT and its subsidiaries
Increase / (Decrease) 2014-2013 Million Baht Percentage
(Adjusted) 2012 Million Baht
Remark : * The financial statements for 2014 and 2013 have been prepared according to Thai Financial Reporting Interpretation No. 4 and Thai Accounting Standard No. 17.
33 For operating results in 2014, EGAT and its subsidiaries recorded a net income of Baht 38,818.54 million, an increase of Baht 4,145.97 million or 11.96% from the year 2013. The details are as follows:
1.1 Analysis of revenue from electric energy sales For the year ended December 31, 2014, revenue from electric energy sales, which is the primary source of revenue of EGAT and its subsidiaries, amounted to Baht 536,318.41 million, increasing by Baht 23,497.95 million or 4.58% from Baht 512,820.46 million in 2013. The higher sales revenue was mainly attributable to an increase of Baht 0.066 in unit selling price from Baht 3.021 in 2013 to Baht 3.087 in 2014, while electricity consumption was increasing. The volume of electric energy sales of EGAT and subsidiaries for the year 2014 increased by 3,940.92 million kWh or 2.32% to 173,719.45million kWh, compared with 169,778.52 million kWh in 2013, resulting from Thailand ‘s economic growth since the 2rd quarter of 2014 onwards.
1.2 Analysis of cost of electric energy sales For the year ended December 31, 2014, the cost of electric energy sales of EGAT and its subsidiaries increased from the year 2013 by Baht 24,933.96 million. Components of the cost of electric energy sales are detailed as follows:
2014
2013
Million Baht
Million Baht
Million Baht
Electricity purchased
112,579.00
94,381.75
18,197.25
Fuel
284,534.84 280,935.92 3,598.92 1.28
Cost of Electric Energy Sales
Increase / (Decrease) Percentage
19.28
Generating expenses
52,313.97
49,332.05
2,981.92
6.04
Transmission expenses
10,770.07
10,614.20
155.87
1.47
460,197.88
435,263.92
24,933.96
5.73
Total
1.2.1 Electricity purchased Electricity purchased as shown in the statement of income is a part of the purchase of electricity from power plants that do not qualify as a finance lease under Thai Financial Reporting Standards. For the year ended December 31, 2014, the cost of purchased electricity increased by Baht 18,197.25 million or 19.28%. The increase was attributable to an increase of small power producers.
34 1.2.2 Fuel cost Fuel cost as shown in the statement of income for the year ended December 31, 2014 and 2013 is adjusted by Thai Financial Reporting Interpretation No. 4, Determining Whether an Arrangement Contains a Lease, and Thai Accounting Standard No. 17, Leases. The details are as follows: 2014 Fuel Cost Million Baht
2013
Increase / (Decrease)
Million Baht
Million Baht Percentage
(1) Fuel cost of EGAT and its subsidiaries
182,195.69
170,829.26
11,366.43
6.65
(2) Fuel cost under finance leases
102,339.15
110,106.66
(7,767.52)
(7.05)
Total
284,534.84
280,935.92
3,598.92
1.28
(1) Fuel cost of EGAT and its subsidiaries In 2014, the electricity produced by EGAT and its subsidiaries amounted to 89,904.10 million kWh, increasing from the prior year by 3,489.22 million kWh from 86,414.88 million kWh in 2013. The details of fuel consumption are as follows:
2014 Fuel Million Unit
2013
Increase / (Decrease)
Million Unit
Million Unit Percentage
Natural gas (MBtu)
507.88
495.39
12.49
2.52
Heavy oil (liter)
457.91
355.39
102.52
(28.98)
Diesel oil (liter)
32.41
80.84
(48.42)
(59.90)
Palm oil (kg)
1.44
7.34
(5.90)
(80.45)
Lignite (ton)
17.02
16.88
0.14
0.80
The fuel cost for the year ended December 31, 2014 amounted to Baht 182,195.69 million, increasing by Baht 11,366.43 million or 6.65 %. The details of fuel cost are as follows: 2014 Fuel Million Baht
2013
Increase / (Decrease)
Million Baht
Million Baht Percentage
Natural gas
159,261.08
150,649.29
8,611.79
5.72
Heavy oil
11,943.70
7,895.24
4,048.46
51.28
Diesel oil
832.61
2,081.57
(1,248.96)
(60.00)
Palm oil
35.88
214.11
(178.23)
(83.24)
Lignite
10,122.42
9,989.05
133.37
1.34
Total
182,195.69
170,829.26
11,366.43
6.65
35 The fuel cost increased in line with rising electricity consumption, and there are new power plants in the system during the year. The details are as follows:
- Wangnoi Combined Cycle Power Plan Block 4, which started to commercial trade in April 2014.
- Chana Combined Cycle Power Plan Block 2, which started to commercial trade in July 2014.
(2) Fuel cost under finance leases Fuel cost under finance leases is adjusted to the power purchase agreements and qualified as finance leases complying with the Financial Reporting Interpretation. 1.2.3 Generating Expenses For the year ended December 31, 2014, generation expenses increased from the year 2013 by Baht 2,981.92 million. It was mainly attributable to an increase in depreciation of generation assets under the power plant and equipment for power plant item of Wangnoi Combined Cycle Power Plant Block 4 and Chana Combined Cycle Power Plant Block 2.
1.3 Revenue and cost of sales of other goods and services Revenue and cost of sales of other goods and services were mainly derived from operation and maintenance services, engineering and construction consulting services, and telecommunication services. In 2014, EGAT and its subsidiaries recorded the revenue from sales of other goods and services in the amount of Baht 21,410.08 million, decreasing from the year 2013 by Baht 2,682.80 million or 11.14%, and the cost from sales of other goods and services in the amount of Baht 19,445.92 million, decreasing from the year 2013 by Baht 2,733.91million or 12.33%.
1.4 Other revenue Other revenue for the year ended December 31, 2014 totaled Baht 6,574.80 million, increasing from the year 2013 by Baht 1, 800.60 million or 37.72% due to the following reasons :
- An increase in gain on foreign exchange in the amount of Baht 1,022.62 million.
- An increase in gain on bargain purchase of Tri Energy Co, Ltd. in the amount of Baht 797.29 million.
1.5 Other Expenses Other expenses for the year ended December 31, 2014 totaled Baht 455.63 million, decreasing from the year 2013 by Baht 4,783.31 million or 91.30%. The decrease was mainly attributable to decrease in loss on foreign exchange under finance leases in the amount of Baht 4,727.41 million.
1.6 Share of profit from associated company of EGAT and share of profit from jointly controlled entities of subsidiaries by using the equity method For the year ended December 31, 2014, share of profit under the equity method totaled Baht 2,379.00 million, decreasing from the year 2013 by Baht 135.25 million or 5.38% which consisted of decrease in share of profit from associated company and increase in share of profit from jointly controlled entity in the amount of Baht 667.33 million and Baht 532.08 million respectively.
36
1.7 Income tax For the year ended December 31, 2014, the income tax of Ratchaburi Electricity Generating Holding Plc. amounted to Baht 1,269.38 million, decreasing from the year 2013 by Baht 163.86 million. The decrease was mainly attributable to decrease in dividend income and effect of foreign tax due to the different tax calculations. While the income tax of District Cooling System and Power Plant Co., Ltd. amounted to Baht 12.56 million, increasing from the year 2013 due to the fact that the company had operating profit in the current year.
2. Analysis of Financial Status of EGAT and its Subsidiaries Operating Results
Dec 31, 2014*
(Adjusted) (Adjusted) Dec 31, 2013* Increase / (Decrease) Dec 31, 2012
Million Baht
Million Baht
Total assets
735,319.96
709,426.74
25,893.22
3.65
673,367.04
Total liabilities
362,817.79
357,883.66
4,934.13
1.38
338,444.69
Owners’ equity of EGAT and its subsidiaries
338,417.64
318,416.53
20,001.10
6.28
303,023.97
34,084.53
33,126.55
957.99
2.89
31,898.37
Non-controlling interests
Million Baht Percentage
Million Baht
Remark : * The financial statements for 2014 and 2013 have been prepared according to Thai Financial Reporting Interpretation No. 4 and Thai Accounting Standard No. 17.
As at December 31, 2014, the total assets of EGAT and its subsidiaries increased by Baht 25,893.22 million mainly due to the following reasons :
• A decrease in cash and cash equivalents of Baht 975.44 million, mainly from a decrease in fixed deposits not more than 3 months of EGAT and its subsidiaries in amount of Baht 13,132.77 million and an increase in cash in banks- current and saving accounts of EGAT in amount of Baht 11,914.25 million.
• A decrease of Baht 8,122.30 million in temporary investment, largely from a decrease in fixed deposits not more than 12 months of EGAT and its subsidiaries in amount of Baht 16,997.05 million and an increase in government bonds more than 3 months in amount of Baht 6,997.28 million.
• A increase of Baht 6,780.30 million in accounts receivable, largely from an increase of Metropolitan Electricity Authority and Provincial Electricity Authority in amount of Baht 2,961.16 million and 3,518.58 million respectively.
• A decrease in investment in associated company and jointly controlled entities of subsidiaries by using equity method of Baht 407.39 million. The details are as follows:
Unit : Million Baht
Increase (Decrease)
Associated Companies
Electricity Generating Plc.
383.65
First Korat Wind Co.,Ltd.
15.77
K.R. Two Co.,Ltd.
(15.02)
Nam Ngieb 1 Power Co.,Ltd.
329.45
713.85
Jointly-Controlled Entities
Tri Energy Co.,Ltd.
(2,163.16)
Ratchaburi Power Co.,Ltd.
Chubu Ratchaburi Electric Services Co.,Ltd.
SouthEast Asia Energy Ltd.
Phufai Mining Co.,Ltd.
Nava Nakorn Electricity Generation Co.,Ltd.
Ratchaburi World Cogeneration Co.,Ltd.
Solarta Co.,Ltd.
63.31
Solar Power (Korat 3) Co.,Ltd.
20.15
Solar Power (Korat 4) Co.,Ltd.
14.48
Solar Power (Korat 7) Co.,Ltd.
12.23
Songkhla Biomass Co.,Ltd.
Perth Power Partnership (Kwinana)
Songkhla Biofuel Co.,Ltd.
(0.01)
Sukhothai Energy Co.,Ltd.
(1.69)
Xe Pien – Xe Nam Noi Co.,Ltd.
Ayudhya Power Co.,Ltd.
(4.00)
Ratchaburi Cogeneration
8.51
Oversea Green Energy Co.,Ltd.
0.59
Total (407.39)
299.19 (0.12) 188.80 (0.08) 229.04 3.60
7.66 (64.73)
264.99
(1,121.24)
• Long-term investments increased by Baht 881.57 million, largely from increase in investment of EGAT in available for sale security of Ratchaburi Electricity Generating Holding Public Company Limited of Baht 577.54 million and held to maturity debt of Ratchaburi Electricity Generating Holding Public Company Limited of Baht 303.96 million.
• Finance lease assets increased by Baht 21,650.10 million, mainly due to increase in finance lease assets during the period of Gulf JP NS Company Limited (Unit 1 and 2).
• Net property, plant and equipment increased by Baht 22,728.01 million as the assets of EGAT and its subsidiaries increased by Baht 39,529.73 million, while depreciation for the year was valued at Baht 16,801.72 million.
• Work under construction decreased by Baht 16,692.87 million resulting from the Chana Combined Power Plant Construction Project – Block 2 and the Wang Noi Combined Power Plant Construction Project – Block 4 which had already started commercial operation date.
38 As at December 31, 2014, the total liabilities of EGAT and its subsidiaries increased by Baht 4,934.13 million, mainly detailed as follows:
• Account payables decreased by Baht 11,733.47 million, mostly from a decrease in trade account payables of electricity purchased payable and fuel cost in the amount of Baht 3,021.88 million and Baht 10,654.70 million respectively.
• Short-term loans decreased by Baht 4,974.22 million mainly due to a decrease in short-term loans from financial institutions of subsidiaries.
• Finance lease liabilities – Power plant and current portion increased by Baht 21,419.78 million, mainly due to an increase in finance lease of Gulf JP NS Company Limited (Unit 1 and 2).
Owners’ equity of EGAT and its subsidiaries totaled Baht 372,502.17 million, increasing by Baht 20,959.09 million, as shown in the following details :
• For the year ended December 31, 2014, the net income of EGAT and its subsidiaries totaled Baht 38,818.54 million.
• A decrease in other comprehensive income in the amount of Baht 391.27 million.
• Estimated remittance to the Ministry of Finance totaled Baht 18,968.63 million
3. Analysis of Cash flow As at December 31, 2014, cash and cash equivalents of EGAT and its subsidiaries amounted to Baht 66,103.36 million, decreasing from December 31, 2013 by Baht 975.44 million. The reasons are as follows:
Unit : Million Baht
Cash and cash equivalents as at December 31, 2013 (Restated)
67,078.80
Net cash inflows from operating activities
86,356.24
Net cash outflows from investing activities
(21,522.78)
Net cash outflows from financing activities
(65,633.23)
Effects from foreign exchange rate in cash and cash equivalents Cash and cash equivalents as at December 31, 2014
(175.67) 66,103.36
In 2014, net cash inflows from operating activities totaled Baht 86,356.24 million which was derived from net income of Baht 38,818.54 million, adjusted by non-cash items in statements of income, such as depreciation and gains (losses) on foreign exchange etc. totaling Baht 70,731.24 million. Besides, changes in working capital resulted in a decrease in cash of Baht 23,114.91 million, cash receipts on interest of Baht 1,252.78 million, and cash payment on income tax totaling Baht 1,331.41 million. Net cash outflows from investing activities amounted to Baht 21,522.78 million, consisting of investments for the construction of power plant projects, transmission system, and construction projects and durable goods included interests totaling Baht 31,292.30 million, decrease in temporary investments in the amount of Baht 8,075.34 million, and the payment for additional share capital in subsidiaries, associated company and the jointly controlled entities of subsidiaries totaling Baht 1,744.56 million. Meanwhile, EGAT and its subsidiaries received cash on dividends of Baht 2,015.07 million and interest of Baht 806.33 million. Net cash outflows from financing activities totaled Baht 65,633.23 million, comprising of cash receipts from short and long-term loans of Baht 32,509.21 million, repayment of loans of Baht 38,754.10 million, decrease in finance lease – power plant and cash payment on interest expense from finance lease of Baht 32,799.21 million, remittance to the Ministry of Finance of Baht 20,054.22 million, and dividend payment of Baht 1,810.33 million.
39
4. Financial Ratio Based on the operating results and financial status for the years ended December 31, 2014 and 2013, the financial ratios of EGAT and its subsidiaries are as follows:
Liquidity Ratio
2014*
2013*
Current ratio (Time)
1.53
1.40
Quick ratio (Time)
1.42
1.30
Cash ratio (Time)
0.68
1.01
Profitability Ratio
Ratio of gross profit to net sales (Percentage)
14.00
14.80
7.56
7.12
104,322.68
106,220.88
5.83
5.53
31.83
31.13
0.78
0.79
Debt to equity ratio (Time)
0.97
1.02
Times interest earned (Time)
2.69
2.54
Fixed charge coverage (cash basis) (Time)
1.30
2.56
Ratio of net profit to net sales (Percentage) EBITDA ** (Million Baht) Efficiency Ratio
Rate of return on assets (Percentage) Rate of return on fixed assets (Percentage) Total assets turnover (Time)
Financial Policy Ratio
Remark:
* Financial ratio for the years 2014 and 2013 are calculated from the financial statements prepared in accordance with Financial Reporting Interpretations No. 4 and Accounting Standard No. 17.
** EBITDA is calculated from gross profit after selling expenses, administrative expenses, excluding depreciation, and other amortization expenses.
40
Enterprise Risk Management EGAT has adopted COSO - ERM principles as the main approach to manage its risks and has continuously improved its risk management capabilities as directed by the State Enterprise Policy Office (SEPO), Ministry of Finance. The integrated enterprise risk management approach has been continuously and effectively practiced with the same standard throughout the organization. It has been the intention of EGAT that the risk management awareness is raised in all employees so as to ensure that EGAT will be able to achieve its strategic objectives as stated in EGAT Corporate Plan. EGAT carries out its risk management system under the supervision of Committees and working groups in every level. At the top level, the Enterprise Risk Management Committee (ERMC) is appointed by EGAT Board of Directors to oversee EGAT’s overall risk management and report to the Board. The Audit Committee is responsible for the correctness, sufficiency, and effectiveness of the risk management system. Moreover, EGAT Governor has appointed the Committee on Corporate Strategy, Risk Management, and Internal Control to manage EGAT’s risks and provide technical support. Under the Committee are the working group on Risk Management and Internal Control, which is responsible for recommending appropriate risk management method and/or approach, and the working group on Business Continuity Planning responsible for recommending appropriate method or approach on business continuity management. EGAT Deputy Governor of each line of command has also appointed its own Risk Management Committee. EGAT has prepared its annual risk management plan as well as monitoring and reviewing the sufficiency of risk management action plans and measures every quarter of the year taking into account the allocated resources which are not to exceed Corporate Risk Appetite. The risk management results will be reported to the ERMC regularly so that they will be kept up to date and to ensure that EGAT’s mission will always be fulfilled.
41
Risk Management in 2014 To achieve its vision of being a world class organization in the power industry as stated in EGAT Corporate Plan (2014-2023), EGAT has conducted risk management based on its strategic plan. In this connection, EGAT has considered the internal and external factors which could compromise its operation in the changing situation. Risk appetites have been defined to provide a framework for determining corporate strategies. In 2014, the results of risk management which are based on 4 key risks, i.e. strategic & corporate risk, financial risk, operational risk, and compliance risk are summarized as follows:
1. Strategic & corporate risk For the security and reliability of the power supply system of the country, EGAT has managed risks by maintaining its share of generating capacity as the country’ s biggest power producer. In 2014, EGAT successfully maintained the appropriate growth rate of electricity generation business.
2. Financial risk EGAT has managed financial risks in an effort to maintain its financial status and stability by balancing its Return on Invested Capital (ROIC) and Weighted Average Cost of Capital (WACC). In order to do so, EGAT has considered its current and future financial position to determine the proper financial status and stability.
3. Operational risk In order to manage operational risks, EGAT has prepared itself to take on risks inherent in all aspects of its operations, including electricity generation, transmission, the development of power plant and transmission system according to the Power Development Plan (PDP), employees, community and environment, and public communication concerning EGAT’s operations. Moreover, in 2014, as a result of Information Technology (IT) threads and cyber attacks which occurred domestically and overseas, the Thai government considered IT thread to be among the national security threads involving all dimensions including energy security. Hence, EGAT took into account IT risk and set up plans and measures such as a plan to upgrade the security standard for EGAT computer center by applying for certification of ISO/IEC (ISO/IEC 27001) and a plan to raise an awareness of information security.
4. Compliance risk EGAT has been giving attention to law and regulation compliance. In order to manage risks which involve the violation of the related laws and regulations, EGAT has established the preventive plans and measures to avoid and reduce impacts from such risks. For instance, EGAT has established information system and warning system on the existing laws/regulations and related laws which are expected to be enacted and may have effects on EGAT’s operations such as the secondary laws under the Energy Industry Act, B.E. 2550 (2007). All concerned units have been kept informed and become ready for compliance. Throughout 2014, EGAT managed risks systematically and continuously resulting in its achievement of the strategic goals and objectives of EGAT Corporate Plan.
42
Internal Audit
Principles/ guideline in implementation EGAT’s internal audit system is in accordance with the Standard Rule of State Audit, B.E. 2544 (2001) of the State Audit Commission (SAC). The same system is implemented throughout the organization to ensure that the internal audit is adequate and appropriate as well as achieving the following objectives:
• Efficiency and effectiveness in the operation
• Reliability of the financial reports
• Compliance with law, rules, and regulations
An audit report is prepared annually based on the reports of every line of command for consideration of the Internal Audit Committee regarding the sufficiency and appropriateness of the report, before submission to the EGAT Board of Directors for forwarding to the State Audit Commission within March every year.
Internal Audit Report in 2014 EGAT has evaluated the internal audit system in accordance with the Standard Rule of State Audit to ensure that the mission of EGAT is achieved with effectiveness and efficiency in terms of
• resource utilization
• protection and maintenance of assets
• prevention of error, damage, or misconduct
• reliability of financial and non-financial reports and
• compliance with law, rules, and regulations
The results of the evaluation of the 5 components of internal audit are summarized as follows:
1. Audit environment
Internal audit process is organized by establishing an audit committee to check and review the sufficiency and efficiency of the control, to monthly review the financial and non-financial reports, to check and review the assignment of authority in written statement. The good governance is followed strictly so that the operation can be achieved with efficiency, transparency, fairness, and accountability.
2. Risk assessment
Risk assessment based on the COSO - ERM principles is applied throughout the organization under the supervision of the Enterprise Risk Management Committee (ERMC) which is responsible for setting policy, risk appetite, and risk tolerance as well as analyzing internal and external factors in relation with the corporate plan. Monitoring is carried out regularly every quarter of the year.
3. Audit activities
Policy and procedures together with major work manuals have been established and updated for every functional line. Assignment of responsibility, approval authority, and responsibility for property are clearly identified. Scope of responsibility is in written statement. The Internal Audit Bureau is responsible for reviewing the financial and non-financial reports before submission to the Internal Audit Committee and EGAT Board of Directors every month.
43
4. Information and communication
Financial and non-financial information system and complete database management system whose data are up-to-date and easily accessible are available. The Information Technology Committee is established to be responsible for managing the information system, preparing the information technology master plan, and implementing the information security standard. The management information system is available to support the decision-making of the executives. Various channels of information systems and communication systems are accessible in normal situation and in time of emergency.
5. Assessment
Assessment is conducted continuously and regularly during major operation. Assessment for each activity and control self-assessment (CSA) is conducted for every line of command in integration with the risk assessment which is carried out quarterly. Independent assessment (IA) is also conducted by the Internal Audit Bureau and the Office of the General Auditor of Thailand. EGAT has carried out the complete internal audit system covering 5 components in accordance with the regulation of the State Audit Commission throughout the organization with adequate and appropriate effectiveness fulfilling the objectives of the internal audit.
44
Organization Chart
45
Structure of Organizational Management EGAT Board of Directors has an important role in overseeing the overall operations, in decision making, and in setting policy and strategy of EGAT. In accordance with EGAT Act B.E. 2511 (1968) and the Act on Standards for Qualification of Board of Director Members and Employees of State Enterprises, B.E. 2518 (1975) and its amendment, the responsibility and the role of the Board of Directors and EGAT executives are clearly distinguished. To provide a connection between the supervision and the administration, EGAT Governor, the top management of EGAT, is appointed by the Board of Directors to be an ex - officio member and Secretary of the Board According to the EGAT Act, composition, qualification, and criteria for appointment of the Board of Directors are as follows:
1. Board of Directors
1.1 Composition, Qualifications, and Criteria for Appointment • The Board of Directors comprises Chairman and Directors not exceeding 10 members including EGAT Governor who serves as an ex-officio Director. • Chairman and Directors must be of Thai nationality and well qualified and experience in business administration, science, engineering, economics, finance, or law. All members must not have any direct or indirect interest in the contracts made with EGAT or in the activities acted for EGAT, except that they are merely shareholders who invest in good faith in limited company or public limited company. All members must not hold any political post or possess prohibited attributes as stipulated in the Act on Standards for Qualification of Board of Directors Members and Employees of State Enterprises, B.E. 2518 (1975) and its amendment • The Chairman and Directors, except the ex-officio Director, are appointed by the Cabinet*
1.2 Authority and Responsibilities EGAT Board of Directors is responsible for the following: • Lay down rules and regulations • Establish EGAT’s vision and policies and accountable for the performance of EGAT management • Review and approve significant policies and strategies including financial objectives, corporate social responsibility, and other EGAT’s initiatives as well as monitoring the performance of the management regularly • Ensure the reliability of accounting system, financial statements, and auditing as well as the effectiveness and efficiency of internal control, internal audit, risk management, financial information disclosure, and follow up observance • Control and address conflicts of interest issues that may occur among employees, management, or Directors as well as monitoring the misuse of EGAT’s property and investigating misconduct of illegal and unethical behavior
46 • Ensure that the structure and practices of EGAT Board of Directors comply with the principles of good corporate governance and high ethical standards • Monitor the appropriateness of human resources management including position classification and manpower • Evaluate the performance of EGAT Governor and review EGAT’s planning regularly * From May 22 to August 29, 2014 the chairpersons and directors of EGAT Board of Directors were appointed by the National Council for Peace and Order (NCPO).
1.3 Members of the Board of Directors No.
Name
Position
Term of office (2014)
Chairperson
Jan. 1 - Jun. 17
1
Mrs. Anchalee
Chavanich
2
M.L. Panadda
Diskul
Chairman
Jun. 25 - Aug. 27
3
Mr. Sombat
Santijaree
Chairman
Oct. 1 - Dec. 17
Director
Jun. 25 - Aug. 27
4
Mr. Kurujit
Nakornthap
Director
Jan. 1 - Jun. 30
5
Mr. Trakul
Winitnaiyapak
Director
Jan. 1 - Jun. 11
6
Mr. Porametee Vimolsiri
Director
Jan. 1 - Dec. 31
Director (Representative of Ministry of Finance)
Jan. 1 - Sep. 21
7 Mr. Kulit Sombatsiri
8
Mrs. Amporn
Nitisiri
Director
Jan. 1 - Jun. 24
9
Mr. Yongyutt
Chaipromprasith
Director
Jan. 1 - Jun. 18
10
Mr. Prachuab
Ujjin
Director
Jan. 1 - Nov. 30
11
Mr. Chuan
Sirinantporn
Director
Jun. 25 - Dec. 23
12
Lt. Gen. Kampanat Ruddit
Director
Jun. 25 - Dec. 31
13
Gen. Walit
Rochanapakdee
Director
Jul. 21 - Dec. 31
14
Mr. Witoon
Kulcharoenwirat
Director
Jul. 21 - Dec. 31
15
Mr. Khemchai
Chutiwongse
Director
Aug. 27 - Dec. 31
16 Mr. Krisada Chinavicharana
Director (Representative of Ministry of Finance)
Dec. 2 - Dec. 31
17 Mr. Soonchai Kumnoonsate
EGAT Governor Ex-officio Director & Secretary
Jan. 1 - Dec. 31
47 Remark :
No.1
Resigned, effective on June 18, 2014
No.2
Appointed as Chairman by the Letter of Ministry of Finance dated July 2, 2014, effective on June 25, 2014, and resigned on August 28, 2014
No.3
Appointed as Director by NCPO, effective on June 25, 2014, appointed as Acting Chairman by the resolution of the Board of Directors in the meeting session 9/2014, effective on September 24, 2014, appointed as Chairman by the Cabinet on October 1, 2014, and the term of office was completed on December 17, 2014 as having 65 years old
No.4
Resigned on July 1, 2014
No.5
Resigned on June 12, 2014
No.7
Resigned on September 22, 2014
No.8
Term of office was terminated by NCPO, effective on June 25, 2014
No.9
Resigned on June 19, 2014
No.10
Resigned on December 1, 2014
No.11
Appointed as Director by NCPO on July 2, 2014, effective on June 25, 2014, and appointed as Acting Chairman by the resolution of the Board of Directors in the meeting session 12/2014, effective on December 24, 2014
No.12
Appointed as Director by NCPO dated July 2, 2014, effective on June 25, 2014
No.13 and No. 14 Appointed as Director by NCPO on July 21, 2014
No.15
Appointed as Director by NCPO on July 21, 2014, approved by the Board Attorney on August 27, 2014
No.16
Appointed as Director by the resolution of the Cabinet dated December 2, 2014
1.4 Board Members Holding Office in EGAT’s Affiliates No.
Name
Position in EGAT’s Affiliates
Term of Office (2014)
Electricity Generating Public Company Limited (EGCO)
1
Mr. Sombat
Santijaree
Chairman
Sep. 29 - Dec. 31
Ratchaburi Electiricity Generating Holding Public Company Limited (RATCH)
1
Mr. Kurujit
Nakornthap
Chairman
Jan. 1 - Dec. 31
2
Mr. Trakul
Winitnaiyapak
Director
Jan. 1 - Jun. 11
3
Mr. Chuan
Sirinantporn
Director
Dec. 19 - Dec. 31
4
Mr. Prachuab Ujjin
Director
Jan. 1 - Nov. 29
5
Mr. Witoon
Director
Oct. 20 - Dec. 31
6
Mr. Soonchai Kumnoonsate
Director
Jan. 1 - Sep. 30
Chairman
Jan. 1 - Dec. 31
Kulcharoenwirat
EGAT International Company Limited (EGATi)
1
Mr. Soonchai Kumnoonsate
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2. Board Committees In 2014, the Board of Director appointed 5 committees to consider important issues, namely Executive Committee, Audit Committee, Enterprise Risk Management Committee, Corporate Governance Committee, and Human Resources Committee. Moreover, two more committees to consider matters concerning nomination of EGAT management were also appointed. These committees were Committee for Deputy Governor Nomination and Committee for Assistant Governor and Division Director Nomination.
2.1 Executive Committee Duties and Responsibilities • Considering and approving the Term of Reference (TOR) and procurement of supplies within the value limits not exceeding 700 million Baht which is beyond the approval authority of the EGAT Governor and considering those over 700 million Baht for submission to the Board of Directors • Considering and screening all issues concerning EGAT’s financial and investment policies and plans as well as annual budget of EGAT • Considering EGAT regulations and approving financial support to the people affected by the construction of power transmission lines within the value limits exceeding 4 million Baht but not exceeding 10 million Baht each. • Considering or screening the appeal concerning the seizure of the security in the procurement by an e-auction bidding in which the value of the security does not exceed 50 million Baht • Considering other issues assigned by the Board of Directors
Members of the Executive Committee No.
Name
Position
Term of office (2014) Jan. 1 - Jun. 17
1
Mrs. Anchalee
Chavanich
Chairperson
2
Mr. Kulit
Sombatsiri
Chairman
Aug. 27 - Sep. 21
Member
Jan. 1 - Jul. 23
3
Mr. Sombat
Santijaree
Chairman
Sep. 24 - Dec. 17
4
Mr. Kurujit
Nakornthap
Member
Jan. 1 - Jun. 30
5
Mr. Trakul
Winitnaiyapak
Member
Jan. 1 - Jun. 11
6
Mr. Prachuab
Ujjin
Member
Jan. 1 - Nov. 30
7
Mr. Khemchai
Chutiwongse
Member
Aug. 27 - Dec. 31
8
Mr. Witoon
Kulcharoenwirat
Member
Aug. 27 - Dec. 31
9 Mr. Soonchai Kumnoonsate
Member (Ex-officio) & Secretary
Jan. 1 - Dec. 31
Remark: In 2014, there were few changes in the Executive Committee. New Chairman and Directors of EGAT Board were appointed replacing the ones who resigned. New Executive Committee was established on August 27, 2014 chaired by Mr. Kulit Sombatsiri replacing Mrs. Anchalee Chavanich.
49
2.2 Audit Committee Duties and Responsibilities • Reviewing the efficiency and effectiveness of EGAT’s internal control, good corporate governance, and risk management system • Reviewing the reliability of financial statements and financial reports • Monitoring the compliance with laws, rules and regulations, related policies, and EGAT Code of Conduct and Ethics • Monitoring the effectiveness and efficient use of information technology systems and resources that meet corporate objectives and create added values for EGAT • Monitoring the executive management’s response to recommendations made by independent auditors and the Internal Audit Bureau concerning internal controls and risk management • Reviewing the operation of the Internal Audit Bureau and considering, in consultation with EGAT Governor, the appointment, transfer, performance evaluation, and salary raise of the Assistant Governor - Internal Audit Bureau • Coordinating with the independent auditors on the results of the annual audit • Reviewing at least once a year the appropriateness and effectiveness of the Audit Committee Charter and the Internal Audit Charter
Members of the Audit Committee No.
Position
Term of Office (2014)
Chairman
Apr. 23 - Dec. 31
Member
Jan. 1 - Apr. 22
2
Mrs. Amporn
Nitisiri
Member
Apr. 23 - Jun. 24
3
Mr. Yongyutt
Chaipromprasith
Member
Jan. 1 - Jun. 18
4
Lt. Gen. Kampanat Ruddit
Member
Aug. 15 - Dec. 31
5
Mr. Sombat
Santijaree
Member
Aug. 15 - Sep. 23
6
Mr. Krisada
Chinavicharana
Member
Dec. 2 - Dec. 31
7
Assistant Governor - Internal Audit
Secretary
Jan. 1 - Dec. 31
1
Name
Mr. Porametee Vimolsiri
Remark: No.1 No.2 No.3
(Ex-officio)
Appointed as Chairman on April 23, 2014 replacing Mr. Prawit Sarakitprija who had resigned. Term of office was terminated by the order of NCPO, effective on June 25, 2014 Resigned, effective on June 19, 2014
50
2.3 Enterprise Risk Management Committee Duties and Responsibilities • Ensuring the adequacy and effectiveness of risk management framework and policies which cover all EGAT’s operations • Reviewing the policies and systems used in assessing and evaluating risk management and controls as well as auditing and reporting procedures
• Overseeing and ensuring the observance of risk management
• Reviewing EGAT’s risk management reports and information to be submitted to regulatory bodies and the public • Performing any other tasks within the purview of the Enterprise Risk Management Committee as assigned by the Board of Directors
Members of the Enterprise Risk Management Committee No.
Name
Position
Term of Office (2014)
1
Mr. Kurujit
Nakornthap
Chairman
Jan. 1 - Jun. 30
2
Mr. Prachuab
Ujjin
Chairman
Aug. 15 - Nov. 30
Member
Jan. 1 - Aug. 14
3
Gen. Walit
Member
Aug. 15 - Dec. 31
4
EGAT Governor
Member
Jan. 1 - Dec. 31
5
Deputy Governor - Policy and Planning
Member and Secretary
Jan. 1 - Dec. 31
Remark: No.2
Rochanapakdee
Appointed as Chairman replacing No.1 who had resigned on July 1, 2014
2.4 Corporate Governance Committee Duties and Responsibilities
• Proposing policy, strategies, and practical guidelines for corporate governance and social responsibility
• Considering EGAT’s Corporate Governance and CSR Master plan
• Overseeing and ensuring the observance of the defined plans and practices
• Promoting and encouraging involvement of Directors, EGAT management, and employees in corporate governance and CSR activities, and reporting the performance to EGAT Board of Directors every 6 months
51
Members of Corporate Governance Committee No.
Name
Position
Term of Office (2014)
1
Mr. Trakul
Winitnaiyapak
Chairman
Jan. 1 - Jun. 11
2
Mr. Sombat
Santijaree
Chairman
Aug. 27 - Dec. 17
3
Mr. Khemchai
Chutiwongse
Member
Aug. 27 - Dec. 31
4
Mr. Kulit
Sombatsiri
Member
Jan. 1 - Sep. 21
5
Deputy Governor - Administration
Member
Jan. 1 - Dec. 31
6
Deputy Governor - Corporate Social
Member
Jan. 1 - Dec. 31
Affairs
7
Assistant Governor - Human Resources
Member
Jan. 1 - Dec. 31
Secretary (Ex-officio)
Jan. 1 - Dec. 31
8 Director of the Office of the Governor Remark : No.1 No.2
Resigned on June 12, 2014 Retired from Chairman of EGAT Board of Directors on December 17 as having 65 years old
2.5 Human Resources Committee Duties and Responsibilities
• Proposing policy guidelines on human resources
• Considering EGAT’s Human Resources Master Plan before submission to the Board of Directors
• Performing any other tasks related to HR oversight as assigned by the Board of Directors
Members of Human Resources Committee No.
Name
Position
Term of Office (2014)
Chairperson
Jan. 1 - Jun. 24
1
Mrs. Amporn
Nitisiri
2
Mr. Chuan
Sirinantporn
Chairman
Aug. 15 - Dec. 31
3
Mr. Kulit
Sombatsiri
Member
Jan. 1 - Sep. 21
4
EGAT Governor
Member
Jan. 1 - Dec. 31
5
Deputy Governor - Administration
Member
Jan. 1 - Dec. 31
6
Assistant Governor - Human Resources
Member & Secretary
Jan. 1 - Dec. 31
Remark : No.1 Term of office was terminated by the order of NCPO, effective on June 25, 2014
52
2.6 Committee for Deputy Governor Nomination The Committee is responsible for considering and recommending nominees for the position of Deputy Governor or rotation for the position of Deputy Governor.
Members of the Committee for Deputy Governor Nomination No.
Name
Position
Term of Office (2014)
1
Chairperson of EGAT Board of Directors
(Mrs. Anchalee Chavanich)
(Ex-officio)
2
Chairman of EGAT Board of Directors
Chairman
(M.L. Panadda Diskul)
(Ex-officio)
3
Mr. Kurujit
Nakornthap
Member
Jan. 1 - Jun. 30
4
Mr. Trakul
Winitnaiyapak
Member
Jan. 1 - Jun. 11
5
Mr. Apichart
Dilogsopon
Member
Jan. 1 - Dec. 31
6
Mr. Wirash
Kanchanapibul
Member
Jan. 1 - Dec. 31
7
Mr. Sombat
Santijaree
Member
Aug. 15 - Dec. 17
8
Mr. Chuan
Sirinantporn
Member
Aug. 15 - Dec. 31
9 EGAT Governor
Remark :
No.1 No.2 No.3 No.4
Chairperson
Ex-officio Member & Secretary
Jan. 1 - Jun. 17
Aug. 15 - Aug. 27
Jan. 1 - Dec. 31
Resigned from Chairperson of EGAT Board of Directors on June 18, 2014 Resigned from Chairman of EGAT Board of Directors on August 28, 2014 Resigned from member of EGAT Board of Directors on July 1, 2014 Resigned from member of EGAT Board of Directors on June 12, 2014
2.7 Committee for Assistant Governor and Division Director Nomination The Committee is responsible for considering and recommending candidates for nomination or rotation for the position of Assistant Governor and Division Director.
53
Members of the Committee for Assistant Governor and Division Director Nomination No.
Name
1
Position
EGAT Governor
Chairman
Term of Office (2014) Jan. 1 - Dec. 31
(Ex-officio)
2
Mr. Kurujit
Nakornthap
Member
Jan. 1 - Jun. 30
3
Mr. Witoon
Kulcharoenwirat
Member
Aug. 15 - Dec. 31
4
Deputy Governors
Member
Jan. 1 - Dec. 31
Member & Secretary (Ex-officio)
Jan. 1 - Dec. 31
5 Deputy Governor - Administration Remark : No.2 No.3
Resigned from EGAT Board of Directors on July 1, 2014 Appointed as Director by EGAT Board of Directors replacing No.2, effective on August 15, 2014
3. Meetings of the Board of Directors and Committees Meetings of EGAT Board of Directors are held in accordance with EGAT Regulation No. 338 concerning meetings and operation of EGAT Board of Directors. Members of the Board are informed on the meeting schedule of the coming year in advance in December to enable the Board members to attend the meeting regularly. In 2014, meetings were convened on the fourth Wednesday of each month. For each meeting, the agenda approved by the Chairman was circulated together with supporting document and the letter of invitation 5 days in advance of the meeting date to give sufficient time for the Board members to study the issues. Additional document or information on the operation of EGAT could be requested from the management of EGAT to provide the Board members with enough information for thorough consideration. In each meeting, when there was relevant agenda, Deputy Governors of the 10 operational lines also attended the meeting to give additional information. Moreover, they were able to directly receive policy as well as the views and recommendations of the Board of Directors and transfer to the operation and for action correctly, appropriately, and rapidly. Moreover, for transparency in the administration, two representatives from EGAT Labor Union, i.e. president and vice-president or member delegated from the chairman were invited to regularly attend the meeting as observers. The meetings of Committees of the EGAT Board of Directors were held regularly. Some committees met every month, whereas the others met as necessary. In 2014, the following meetings were held:
• • • • • • • •
EGAT Board of Directors: 12 meetings Executive Committee: 10 meetings Audit Committee: 10 meetings Enterprise Risk Management Committee: 1 meeting Corporate Governance Committee: 4 meetings Human Resources Committee: 2 meetings Committee for Deputy Governor Nomination: 1 meeting Committee for Assistant Governor and Division Director Nomination: 4 meetings
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Meeting Attendance of Board of Directors and Committees in 2014 No. Name Board of Executive Audit Enterprise Corporate Human Deputy Assistant Directors Committee Committee Risk Governance Resources Governor Governor & Management Committee Committee Nomination Division Director Committee Committee Nomination Committee 1 Mrs. Anchalee Chavanich
6/6
6/6
2 M.L Panadda Diskul 2/2 1/1 3 Mr. Sombat Santijaree 5/5 3/3 1/1 2/4 1/1 4 Mr. Kurujit Nakornthap 5/6 6/6 2/2 5 Mr. Trakul
Winitnaiyapak
4/6
4/6
6 Mr. Porametee Vimolsiri
9/12
7 Mr. Kulit
8/8
Sombatsiri
2/4
10/10
6/7
2/4
8 Mrs. Amporn Nitisiri 5/6 1/2 1/1 9 Mr. Chuan
Sirinantporn
10 Mr. Yonyutt Chaipromprasith 11 Mr. Prachuab Ujjin
5/6 5/6 11/11
1/1
1/1
5/5
8/9
12 Gen. Walit Rochanapakdee
4/6
13 Lt.. Gen. Kampanat Ruddit
5/6
1/1
4/4
14 Mr. Witoon Kulchroenwirat 5/6 4/4 2/2 15 Mr. Khemchai Chutiwongse
5/5
16 Mr. Krisada Chinavicharana
1/1
3/4
2/4
17 Mr. Apichart Dilogsopon 1/1 18 Mr. Wirash Kanchanapibul
1/1
19 Mr. Soonchai Kumnoonsate
1/1
12/12
10/10
1/1
2/2
4/4
4. Board Self-Assessment The purpose of self-assessment on performance and effectiveness to be conducted by the Board of Directors is to help identify weak points that need improvement and provide an opportunity for all Board members to review their past performance and obstacles confronted. The Board of Directors can deliberate on their contribution to the success of EGAT in order to improve their performance in directing the strategy of EGAT and efficiently supervising the administration of the EGAT executives. The annual self-assessment comprises collective Board self-assessment and individual self-assessment. Results of the assessment are notified to the entire Board for discussion in the meeting for improvement. In 2014, the results of both assessments were “excellent�. The assessments were conducted based on the principles and guideline in the good corporate governance of state enterprise specified by the State Enterprise Policy Office (SEPO) stating that Board of Directors of state enterprise should conduct self-assessment regularly at least once a year so that improvement for more efficiency and effectiveness could be made based on the results of the assessment.
55
5. Remuneration for EGAT Board of Directors The remuneration for members of the EGAT Board of Directors is within the rates approved by the Cabinet. Members of the EGAT Board of Directors who are tasked with more responsibility such as being members of Audit Committee, Executive Committee, Corporate Governance Committee, and Enterprise Risk Management Committee will receive more remuneration at the rates also approved by the Cabinet. In 2014, the remuneration for EGAT Board of Directors totaled 7,493,686.66 Baht detailed as follows: No. Name Payment (Baht)
Meeting allowance (Baht)
1
Mrs. Anchalee Chavanich
111,333.33
162,500.00
273,984.37
547,817.70
2
M.L. Panadda
Diskul
44,000.00
37,500.00
101,930.44
183,430.44
3
Mr. Sombat
Sarntijaree
82,967.74
142,983.87
251,428.43
477,380.04
4
Lt. Gen. Kampanat Ruddit
62,000.00
95,483.87
244,125.00
401,608.87
5
Mr. Kulit
Sombatsiri
90,000.00
172,500.00
342,562.50
605,062.50
6
Gen. Walit Rochanapakdee
53,548.39
50,000.00
158,135.08
261,683.47
7
Mr. Khemchai Chutiwongse
41,612.90
100,000.00
163,850.81
305,463.71
8
Mr. Chuan Sirinantporn
62,000.00
107,500.00
244,125.00
413,625.00
9
Mr. Porametee Vimolsiri
120,000.00
230,666.67
354,375.00
705,041.67
10
Mr. Prachuab
110,000.00
210,000.00
433,125.00
753,125.00
11
Mr. Witoon Kulcharoenwirat
53,548.39
110,000.00
210,846.77
374,395.16
12
Mr. Krisada Chinavicharana
9,677.42
10,000.00
38,104.84
57,782.26
13
Mr. Kurujit
60,000.00
152,500.00
236,250.00
448,750.00
14
Mr. Trakul Winitnaiyapak
53,666.67
125,000.00
211,312.50
389,979.17
15
Mrs. Amporn
60,000.00
145,166.67
228,375.00
433,541.67
16
Mr. Yonyutt Chaipromprasith
56,000.00
116,000.00
220,500.00
392,500.00
17
Mr. Soonchai Kumnoonsate
120,000.00
150,000.00
472,500.00
742,500.00
Ujjin
Nakornthap
Nitisiri
Total
Bonus (Baht)
Total (Baht)
1,190,354.84 2,117,801.08 4,185,530.74 7,493,686.66
Share...
Share
... experience in power development
For more than 45 years of EGAT’s operation, EGAT has shared its experience in power development by supporting various community development projects so that the Thai community will be self-supportive based on the participatory process while preserving traditional way of life and original environment.
58
Board of Directors Mr. Sombat Santijaree Age 65 Chairman (October 1 - December 17, 2014) Director (June 25 - September 30, 2014) Education/Training
• M. Eng., Lamar University, U.S.A.
• B. Eng., Kasetsart University
• Director Certification Program, Thai Institute of Directors
• Senior Executive Program (Class 6), Capital Market Academy
• Senior Executive Development Program (Class 1), General Electric Co., Ltd.
• Public Administration and Law for Executives (Class 4), King Prajadhipok’s Institute
• Applied Psychology Program (Class 84), Applied Psychology Institute
• Senior Executive Program, Sasin Graduate Institute of Business Administration of Chulalongkorn University
Work Experience 2007 - 2010
EGAT Governor
2006 - 2007
Deputy Governor - Generation, EGAT
2005 - 2006
Executive Vice President - Operation and Maintenance, EGAT
Directorship/Management Position in Other State Enterprise/Company
• Director, Gunkul Engineering Public Company Limited
• Chairperson, Electricity Generating Public Company Limited (EGCO)
Amount/Value of Shares in Other Companies* None Connected Transaction in 2014 None * Refers only to shares of company in the same industry or business in which EGAT operates and the amount of the shares held is equal to or higher than 10 percent of the total voting rights
59
Mr. Porametee Vimolsiri Age 54 Director (January 1 - December 31, 2014) Education/Training
• Ph.D. (Economics), Carleton University, Canada
• M.A. (International Affairs), Columbia University, U.S.A.
• B.A. (Economics), Chulalongkorn University
• Executive Creative Economy Training, organized by Office of Knowledge Management and Development in collaboration with University of the Thai Chamber of Commerce
• National Defense Course, National Defense College
• Director Certification Program, Thai Institute of Directors
• Chief Information Officer (CIO), Office of Civil Service Commission and National Science and Technology Development Agency (NSTDA)
• Top Executive Program in Commerce and Trade (TEPCoT) (Class 5)
• Successful Formulation and Execution of the Strategy, Thai Institute of Directors
Work Experience 2011 - Present
Deputy Secretary - General, Office of the National Economic and Social Development Board, Office of Prime Minister
Directorship/Management Position in Other State Enterprise/Company
• Director, Neighboring Countries Economic Development Cooperation Agency
• Director, Thailand Creative Economy Agency
• Director, National Innovation Board
• Director, National Center for Genetic Engineering and Biotechnology
• Director, the Halal Science Center, Chulalongkorn University
Amount/Value of Shares in Other Companies* None Connected Transaction in 2014 None
* Refers only to shares of company in the same industry or business in which EGAT operates and the amount of the shares held is equal to or higher than 10 percent of the total voting rights
60
Mr. Prachuab Ujjin Age 64 Director (January 1 - November 30, 2014) Education/Training • MS.EE. (Electrical Engineering), University of Missouri - Columbia, U.S.A.
• B.Eng. (Electrical Engineering), Chulalongkorn University
• Advanced Executive Program, Harvard Business School, U.S.A.
• Senior Executive Program, Sasin Graduate Institute of Business Administration of Chulalongkorn University
• Risk Management Committee Program (RMP), Thai Institute of Directors
Work Experience 2010 - Present
Retired
2010
Executive Vice President, Ratchaburi Electricity Generating Holding Public Company Limited (RATCH)
2002
Managing Director, Ratchaburi Electricity Generating Company Limited
1999
Manager, Ratchaburi Power Plant, EGAT
1997
Director, Efficiency Control Division, EGAT
Directorship/Management Position in Other State Enterprise/Company
• Director, Ratchaburi Electricity Generating Holding Public Company Limited (RATCH)
• Chairman, Ratchaburi Alliances Company Limited
Amount/Value of Shares in Other Companies* None Connected Transaction in 2014 None
* Refers only to shares of company in the same industry or business in which EGAT operates and the amount of the shares held is equal to or higher than 10 percent of the total voting rights
61
Mr. Chuan Sirinantporn Age 61 Director (June 25 - December 31, 2014) Education/Training
• Honorary Ph.D, Ubon Ratchathani Rajabhat University
• Honorary Ph.D, Ubon Ratchathani University
• M.A. (Development Administration) (Hons), National Institute of Development Administration
• B.A (Political Science), Chulalongkorn University
• Director Accredition Program, Thai Institute of Directors
• Thai Senior Executive Development Program, National Graduate Policy Studies (GRIP), Japan
• Leadership for Changes, Prince Damrong Rajanuphab Institute of Research and Development, Ministry of Interior
• National Defense Course, The National Defense College
• Certificate Course in Public Law, Thammasat University
• Senior Administrator Course, Institute of Administration Development
Work Experience 2013 - Present
Retired
2012 - 2013
Director - General, Department of Provincial Administration
2011 - 2012
Governor, Nakhon Ratchasima Province
2010 - 2011
Governor, Prae Province
2007 - 2010
Governor, Ubon Ratchathani Province
Directorship/Management Position in Other State Enterprise/Company
• Director, Rubber Estate Organization
Amount/Value of Shares in Other Companies* None Connected Transaction in 2014 None
* Refers only to shares of company in the same industry or business in which EGAT operates and the amount of the shares held is equal to or higher than 10 percent of the total voting rights
62
Lt. Gen. Kampanat Ruddit Age 58 Director (June 25 - December 31, 2014) Education/Training
• M.A., Command and General Staff College
• B.Sc., Chulachomklao Royal Military Academy
• The Joint State-Private Sector Course (Class 22), National Defense College
• Regular Course, Command and General Staff College
Work Experience 2014 - Present
Commanding General, 1st Army Area
2013 - 2014
Assintant Chief of Staff For Intelligence, Royal Thai Army
2011 - 2013
Deputy Commanding General, 1st Army Area
2009 - 2011
Division Commanding General, 1st Division, King’s Guard
2009
Commanding General, 15th Military Circle
Directorship/Management Position in Other State Enterprise/Company
• Director, Airports of Thailand Public Company Limited
• Chairman, Risk Management Committee, Airports of Thailand Public Company Limited
• Chairman, Information Technology and Communication Committee, Airports of Thailand Public Company Limited
Amount/Value of Shares in Other Companies* None Connected Transaction in 2014 None * Refers only to shares of company in the same industry or business in which EGAT operates and the amount of the shares held is equal to or higher than 10 percent of the total voting rights
63
Gen. Walit Rochanapakdee Age 58 Director (July 21 - December 31, 2014) Education/Training
• M.A. (Public Administration) (Public Policy), Burapha University
• B.Sc, Chulchomklao Royal Military Academy
• The Joint State-Private Sector Course (Class 22), National Defense College Work Experience 2014 - Present
Deputy Chief of Staff, Royal Thai Army
2014
Commanding General, 4th Army Area
2013
First Corps Commander
2012
Assistant Chief of Staff for Logistics, Royal Thai Army
2011
Deputy Commanding General, 1st Army Area
Directorship/Management Position in Other State Enterprise/Company Amount/Value of Shares in Other Companies* None Connected Transaction in 2014 None
* Refers only to shares of company in the same industry or business in which EGAT operates and the amount of the shares held is equal to or higher than 10 percent of the total voting rights
64
Mr. Witoon Kulcharoenwirat Age 56 Director (July 21 - December 31, 2014) Education/Training
• M.Eng. (Safety Engineering ), Kasetsart University
• M.Eng. (Transportation Engineering), Chulalongkorn University
• B.Eng. (Civil Engineering ), Chiang Mai University
• National Defense Course (Class 52), National Defense College
• Executive Training Program 1 (Class 43), Office of the Civil Service Commission
Work Experience 2014 - Present
Director - General, Department of Energy Business, Ministry of Energy
2013 - 2014
Deputy Director - General, Department of Energy Business, Ministry of Energy
2008 - 2013
Director, Bureau of Natural Gas Business Safety, Department of Energy Business, Ministry of Energy
2007 - 2008
Director, Bureau of Liquefied Petroleum Business Safety, Department of Energy Business, Ministry of Energy
Directorship/Management Position in Other State Enterprise/Company
• Director, Ratchaburi Electricity Generating Holding Public Company Limited (RATCH)
• Expert considering the Environmental Impact Assessment reports
• Director, National Environment Board, Project on Petroleum Development and Pipeline Transportation Project on Thermal Power Plants
Amount/Value of Shares in Other Companies* None Connected Transaction in 2014 None
* Refers only to shares of company in the same industry or business in which EGAT operates and the amount of the shares held is equal to or higher than 10 percent of the total voting rights
65
Mr. Khemchai Chutiwongse Age 60 Director (August 27 - December 31, 2014) Education/Training
• LL. M., Harvard University, U.S.A.
• Barrister at Law (Honors), Institute of Legal Education of Thai Bar Association
• LL. B. (1st class Honors), Chulalongkorn University
• Director Certification Program, Thai Institute of Directors
• Senior Executive Program, Capital Market Academy
• Politics and Governance in Democratic Systems for Executives, King Prajadhipok’s Institute
• National Defense Regular Course, National Defense College
Work Experience 2014 - Present
Inspector General, Office of the Attorney General
2011 - 2013
Director - General, Department of Legal Counsel
2007 - 2011
Director - General, Department of Public Prosecutor Commission
1994 - 1995
Provincial Chief Public Prosecutor, Pathum Thani Province, Office of the Attorney General
Directorship/Management Position in Other State Enterprise/Company
• Director, Sukhumvit Asset Management Company Limited
Amount/Value of Shares in Other Companies* None Connected Transaction in 2014 None
* Refers only to shares of company in the same industry or business in which EGAT operates and the amount of the shares held is equal to or higher than 10 percent of the total voting rights
66
Mr. Krisada Chinavicharana Age 51 Director (December 2 - December 31, 2014) (Representative of Ministry of Finance) Education/Training
• M.B.A. (Business Administration), University of New Haven, U.S.A
• B.A. (Laws), Chulalongkorn University
• Senior Executive Program (Class 18), Capital Market Academy
• National Defense Course (Class 54), National Defense College
• Director Certification Program, (Class 186/2014), Thai Institute of Directors
• Executive Program for Senior Officers: Management, Office of the Civil Service Commission
• Executive Training Program 1 (Class 56/2007), Office of the Civil Service Commission
• Integrated Justice Administration, (Class 4/2006), Office of Justice Affairs
• Financial Instrument and Markets 2004, Harvard Business School, U.S.A.
Work Experience 2014 - Present
Director, Fiscal Policy Office, Ministry of Finance
2012 - 2014
Financial Advisor, Fiscal Policy Office, Ministry of Finance
2009 - 2012
Deputy Director, Fiscal Policy Office, Ministry of Finance
Directorship/Management Position in Other State Enterprise/Company
• Director, Aeronautical Radio of Thailand Company Limited
Amount/Value of Shares in Other Companies* None Connected Transaction in 2014 None
* Refers only to shares of company in the same industry or business in which EGAT operates and the amount of the shares held is equal to or higher than 10 percent of the total voting rights
67
Mr. Soonchai Kumnoonsate Age 58 EGAT Governor Director (Ex-officio) (January 1 - December 31, 2014) Education/Training • B. Eng. (Electrical Engineering), Chulalongkorn University
• Senior Executive Program, (Class 18), Capital Market Academy
• Energy Literacy Leadership Program, (Class 2), Thailand Energy Academy
• Director Accreditation Program, Thai Institute of Directors
• Public Administration and Law for Executives, King Prajadhipok’s Institute
• Advanced Management Program, Harvard Business School, U.S.A.
• Psychological Operations for Management (Class 101), Applied Psychology Institute, National Defense Studies Institute
Experience 2013 - Present
EGAT Governor
2011 - 2013
Deputy Governor - Power Plant Development, EGAT
2010 - 2011
Assistant Governor - Fuel, EGAT
Directorship/Management Position in Other State Enterprise/Company
• Chairman, EGAT International Company Limited (EGATi)
• Director, Ratchaburi Electricity Generating Holding Public Company Limited
Amount/value of Shares in Other Companies* None Connected Transaction in 2014 None
* Refers only to shares of company in the same industry or business in which EGAT operates and the amount of the shares held is equal to or higher than 10 percent of the total voting rights
68
BOARD OF DIRECTORS (January 1 – September 21, 2014) Mrs. Anchalee Chavanich Age 64 Chairperson (January 1 - June 18, 2014) Education/Training
• M.S. (Engineering Management), University of Missouri-Rolla, U.S.A.
• B. Eng. (Industrial Engineering), Chulalongkorn University
• Training programs organized by Thai Institute of Directors
- Audit Committee Program (ACP)
- Director Certification Program (DCP)
- Finance for Nonfinance Director (FND)
- Role of the Chairman Program (RCP)
• Politics and Governance in Democratic Systems for Executives, King Prajadhipok’s Institute
• Administrative Justice for Executives (Class 4), Administrative Justice Development Institute
• Advanced Security Management Program, the Association of National Defense College of Thailand
• Senior Executive Program (Class 7), Capital Market Academy
• Executive Program (Class 6), King Prajadhipok’s Institute
• National Defense Course, National Defense College
• Energy Literacy Leadership Program (Class 3), Thailand Energy Academy
• The Rule of Law and Democracy Course (Class 2), Constitution College, Institute of Constitution Studies, Office of Constitutional Court
Work Experience 2014 - Present
Member, National Reform Council
2011 - Present
President, Thai Industrial Estate and Strategic Partner Association
2000 - Present
Chairman, Coral and Coastal Conservation Foundation
2000 - 2014
Chairman, Industrial Estate Foundation
2005 - 2006
Advisor to Minister of Transport
2004 - 2005
Advisor to Minister of Industry
69
2004 - 2010
Advisor, Industrial Estate Authority of Thailand
2000 - 2004
Governor, Industrial Estate Authority of Thailand
Directorship/Management Position in Other State Enterprise/Company
• President, Thai Industrial Estate and Strategic Partner Association
• Chairman, Coral and Coastal Conservation Foundation
• Chairman, Industrial Estate Foundation
Amount/Value of Shares in Other Companies* None Connected Transaction in 2014 None
* Refers only to shares of company in the same industry or business in which EGAT operates and the amount of the shares held is equal to or higher than 10 percent of the total voting rights
70
M.L. Panadda Diskul Age 58 Chairman (June 25 - August 28, 2014) Education/Training
• Honorary Ph. D. (Public Administration), Kasem Bundit University
• Honorary Ph. D. (Public Administration), Chiang Mai Rajabhat University • M.A. (Political Science, International Relations), Brigham Young University, USA
• B.S. (Political Science), Utah University, U.S.A.
• Comparative Study on Japanese - Thai History, Sofia University, Japan
• National Defense Course, The National Defense College
• Relations Enhancement of Army Logistics Administration and National Defense Industry (Class 3), RTA Logistics School
• Executive Development Course (Governing Executive Level 8), Prince Damrongrajanubhab Institute of Research and Development
• Administration of Provincial Governor’s Office, Prince Damrongrajanubhab Institute of Research and Development
Work Experience 2014 - Present
Minister of the Prime Minister’s Office*
2014 - Present
Permanent Secretary of the Prime Minister’s Office
2012 - 2014
Deputy Permanent Secretary, Ministry of Interior
2010 - 2012
Governor, Chiang Mai Province
2009 - 2010
Governor, Nakhon Pathom Province
2007 - 2009
Advisor on Security, Office of the Permanent Secretary for Interior
Directorship/Management Position in Other State Enterprise/Company
• Vice Chairman of the Board of Directors, MCOT Public Company Limited
Amount/Value of Shares in Other Companies** None Connected Transaction in 2014 None * Resigned from EGAT Board of Directors on August 28, 2014 and has been appointed as Minister of the Prime Minister’s Office by the Cabinet resolution on August 30, 2014 ** Refers only to shares of company in the same industry or business in which EGAT operates and the amount of the shares held is equal to or higher than 10 percent of the total voting rights
Mr. Kurijit Nakornthap Age 59 Director (January 1 - July 1, 2014) Education/Training
• Ph.D. in Petroleum Engineering, University of Oklahoma, U.S.A.
• M.Sc. in Petroleum Engineering, University of Oklahoma, U.S.A
• B.Sc. (with Special Distinction) in Petroleum Engineering, University of Oklahoma, U.S.A
• Training Program for Senior Executives, Office of the Civil Service Commission
• Senior Executive Program, London Business School, U.K.
• Training programs organized by Thai Institute of Directors
- Director Accreditation Program
- Audit Committee Program
- Role of Compensation Committee Program
• National Defense Course (Class 51), National Defense College
• Executive Program in Commerce and Trade (TEPCoT) (Class 3/2010)
• Leadership for Change, Right Livelihood Foundation, Matichon Group
• Administrative Justice for Executives (Class 2/2011), Administrative Justice Development Institute
• Senior Executive Program (Class 13/2011), Capital Market Academy
• Energy Literacy Leadership Program (Class 1/2012), Thailand Energy Academy
• SPSDM, Office of the Civil Service Commission/ACI Co., Ltd. (July 20 – 22, 2012)
• “Bhum Phlang Phan Din” for Executives (Class 2 ), Chulalongkorn University
Work Experience 2010 - Present
Deputy Permanent Secretary, Ministry of Energy
2008 - 2010
Director - General, Department of Mineral Fuels, Ministry of Energy
2006 - 2008
Deputy Permanent Secretary, Ministry of Energy
2006
Deputy Director - General, Department of Mineral Fuels, Ministry of Energy
Directorship/Management Position in Other State Enterprise/Company
• Chairman, Ratchaburi Electricity Generating Holding Public Company Limited (RATCH)
• Chairman, Thai Oil Public Company Limited
Amount/Value of Shares in Other Companies* None Connected Transaction in 2014 None * Refers only to shares of company in the same industry or business in which EGAT operates and the amount of the shares held is equal to or higher than 10 percent of the total voting rights
72
Mr. Trakul Winitnaiyapak Age 64 Director (January 1 - June 11, 2014) Education/Training
• LL. M., School of Law, Tulane University, U.S.A.
• Barrister at Law, Institute of Legal Education of Thai Bar Association
• LLB., Thammasat University
• Executive Program in Commerce and Trade (TEPCoT) (Class 7), Commerce Academy, the University of Thai Chamber of Commerce.
• The Joint State-Private Sector Course (Class 17), National Defense College
• Politics and Governance in Democratic Systems for Executives (Class 11), King Prajadhipok’s Institute
• Training in “United Nations Standard Minimum Rules for the Treatment of Juvenile Offender” under the Program “Crime Prevention and Treatment of Offender”, UNAFEI, Japan
• Training in Child Abuse Prosecutors and Investigators, American Prosecutor Research Institute, U.S.A.
• British Council International Seminar on Children’s Rights, Oxford University, U.K.
• The 2000 Executive Leadership, Georgetown University, U.S.A.
• Senior Criminal Justice Executive Program, International Law Enforcement Academy (ILEA), Thailand
• US Department of Foreign Affairs’ Program on Senior Crisis Management, Maryland University, U.S.A.
Work Experience 2014 - Present
Attorney - General, Office of the Attorney General
2011 - 2014
Deputy Attorney - General, Office of the Attorney General
2005 - 2011
Inspector General, Office of the Attorney General
2005 - 2006
Director - General, Advisory Department, Office of the Attorney General
2003 - 2005
Director - General, International Affairs Department, Office of the Attorney General
Directorship/Management Position in Other State Enterprise/Company
• Director, Ratchaburi Electricity Generating Holding Public Company Limited (RATCH)
• Director, Provincial Waterworks Authority
Amount/Value of Shares in Other Companies* None Connected Transaction in 2014 None
* Refers only to shares of company in the same industry or business in which EGAT operates and the amount of the shares held is equal to or higher than 10 percent of the total voting rights
Mr. Kulit Sombatsiri Age 51 Director (January 1 - September 21, 2014) Education/Training
• M.B.A. University of Southern California, U.S.A.
• M.P.A. San Diego State University, U.S.A
• B.A.(Political Science), Ramkhamhaeng University
• Senior Executive Program (Class10), Capital Market Academy
• Corporate Governance Program for Directors and Executives of State Enterprises and Public Organizations (Class 3), Public Directors Institute
• Director Certification Program (Class 124), Thai Institute of Directors
• Executive Training Program 2 (Class 1), Office of the Civil Service Commission
• Executive Training Program 1 (Class 40), Office of the Civil Service Commission
• The Joint State-Private Sector Course (Class 24), National Defense College
Work Experience 2014 - Present
Director, State Enterprise Policy Office, Ministry of finance
2011 - 2014
Inspector General, Ministry of Finance
2010 - 2011
Advisor, State Enterprise Policy Office, Ministry of Finance
2008 - 2010
Deputy Director, State Enterprise Policy Office, Ministry of Finance
2007 - 2008
Director, Bureau of Monetary Management, Treasury Department, Ministry of Finance
2006 - 2008
Deputy Secretary General, National Telecom Commission
Directorship/Management Position in Other State Enterprise/Company
• Director, TOT Public Company Limited
• Director, Krungthai Asset Management Public Company Limited
Amount/Value of Shares in Other Companies* None Connected Transaction in 2014 None
* Refers only to shares of company in the same industry or business in which EGAT operates and the amount of the shares held is equal to or higher than 10 percent of the total voting rights
74
Mrs. Amporn Nitisiri Age 63 Director (January 1 - June 24, 2014) Education/Training
• M.A. (Political Science), Thammasat University
• B.A. (Social Science), Kasetsart University
• Senior Executive Program (Class 6), Capital Market Academy
• Democratic Politics and Governance for High Level Administrators (Class10), King Prajadhipok’s Institute
• National Defense Course (Class 45), National Defense College
• Financial Statements for Directors Program (FSD) (Class 16), Thai Institute of Directors
Work Experience 2011 - Present
Retired
2008 - 2011
Director - General, Department of Labor Protection and Welfare, Ministry of Labor
2007
Inspector - General, Office of Permanent Secretary, Ministry of Labor
2006
Advisor, Office of Permanent Secretary, Ministry of Labor
Directorship/Management Position in Other State Enterprise/Company Amount/Value of Shares in Other Companies* None Connected Transaction in 2014 None
* Refers only to shares of company in the same industry or business in which EGAT operates and the amount of the shares held is equal to or higher than 10 percent of the total voting rights
75
Mr. Yongyutt Chaipromprasith Age 49 Director (January 1 - June 18, 2014) Education/Training • M.B.A. (Business Administration), Southern New Hampshire University, U.S.A.
• B.A. (Economics), Chulalongkorn University
• Director Certification Program (Class 161/2012)
• The Joint State-Private Sector Course, National Defense College
• Psychological Operations for Management (Class 90), Applied Psychology Institute
Work Experience 2012 - Present
Director and Executive Committee, Krungthai Bank Public Company Limited
2012 - Present
Sub-Committee on Strategic Management, National Health Security Office
2005 - Present
Chairman and Chief Executive Officer, Aquarius Estate Company Limited
Directorship/Management Position in Other State Enterprise/Company
• Chairman and Chief Executive Officer, Aquarius Estate Company Limited
• Director, MCOT Public Company Limited
• Director and Executive Committee, Krungthai Bank Public Company Limited
• Director, KT ZMICO Securities Company Limited
Amount/Value of Shares in Other Companies* None Connected Transaction in 2014 None
* Refers only to shares of company in the same industry or business in which EGAT operates and the amount of the shares held is equal to or higher than 10 percent of the total voting rights
76
Executives Mr. Soonchai Kumnoonsate Age 58 EGAT Governor Education/Training • B. Eng. (Electrical Engineering), Chulalongkorn University • Rule of Law and Democracy, Constitutional Studies Institute, Office of the Constitutional Court
• Senior Executive Program, Capital Market Academy
• EGAT Successor Development Program
• Excellence in Situation Management
• Director Accreditation Program, Thai Institute of Directors
• Energy Literacy Leadership Program, Thailand Energy Academy
• Public Administration and Law for Executives, King Prajadhipok’s Institute
• Advanced Management Program, Harvard Business School, U.S.A.
• Psychological Operations for Management, Applied Psychology Institute
Work Experience July
31, 2013
EGAT Governor
October 1, 2011
Deputy Governor - Power Plant Development
January 6, 2010
Assistant Governor - Fuel
77
Mr. Prapas Vichakul Age 59 Deputy Governor - Fuel Education/Training • M. Sc. (Geology), New Mexico Institute of Mining and Technology, U.S.A.
• B. Sc. (Geology), Chulalongkorn University
• Director Certification Program, Thai Institute of Directors
• Energy Literacy Leadership Program, Thailand Energy Academy
• A dvanced Certificate Course in Local Development Administration for Sustainability, King Prajadhipok’s Institute
• Naval War College Course, Institute of Advanced Naval Studies
• Masterful Coaching Workshop, Hay Group
• Finance for Executive Decision Program, Continuing Education Center, Chulalongkorn University
• Senior Executive Development Program (Class 2), Foundation for International Human Resource Development
• Executive Program for Growing Companies, Stanford Graduate School of Business, U.S.A.
Work Experience October 1, 2014
Deputy Governor - Fuel
October 1, 2013
Deputy Governor - Corporate Social Affairs, Serving as EGAT Spokesman
October 1, 2011
Assistant Governor - Fuel
January 6, 2010
Assistant Governor - Mae Moh Mine
78
Mr. Suthon Boonprasong Age 57 Deputy Governor - Transmission System Education/Training
• M.B.A., Chiang Mai University
• B. Econ., Sukhothai Thammathirat Open University
• LL. B., Ramkhamhaeng University
• B. Eng. (Electrical Engineering), Chulalongkorn University
• Director Certification Program, Thai Institute of Directors
• Advanced Management Program, Harvard Business School, U.S.A.
• Public Economics Management for Executives, King Prajadhipok’s Institute
• Advanced Police Command Course, Institute of Police Administration Development
• Senior Executive Development Program (Class 2), Foundation for International Human Resource Development
• Masterful Coaching Workshop, Hay Group
• Finance for Executive Decision Program, Continuing Education Center, Chulalongkorn University
Work Experience October 1, 2013
Deputy Governor - Transmission System
October 1, 2010
Assistant Governor - Transmission System Operation
January 6, 2010
Assistant Governor - Corporate Social Responsibility
79
Mr. Ratanachai Namwong Age 58 Deputy Governor - Power Plant Development Education/Training
• M. Eng. (Nuclear Technology), Chulalongkorn University
• B. Eng. (Metallurgical Engineering), Chulalongkorn University
• Director Certification Program, Thai Institute of Directors
• Public Administration and Law for Executives, King Prajadhipok’s Institute
• Advanced Certificate in Promotion of Peaceful Society, King Prajadhipok’s Institute
• Senior Executive Development Program (Class 2), Foundation for International Human Resource Development
• Masterful Coaching Workshop, Hay Group
Work Experience October 1, 2013
Deputy Governor - Power Plant Development
October 1, 2010
Assistant Governor - Power Plant Engineering
80
Mr. Rum Herabat Age 58 Deputy Governor - Generation Education/Training
• B. Eng. (Mechanical Engineering), Chulalongkorn University • Director Certification Program, Thai Institute of Directors
• Advanced Management Program, Harvard Business School, U.S.A.
• Royal Thai Army War College Course, Royal Thai Army Institute of Advanced Military Studies
Work Experience October 1, 2014 Deputy Governor - Generation October 1, 2013 Deputy Governor - Fuel October 1, 2011 Assistant Governor - Operation and Maintenance Business
81
Mr. Kornrasit Pakchotanon Age 56 Deputy Governor - Business Development Education/Training
• B. Eng. (Mechanical Engineering), Chulalongkorn University • Chartered Director Class, Thai Institute of Directors
• Director Certification Program, Thai Institute of Directors
• Energy Literacy Leadership Program, Thailand Energy Academy
• Advanced Management Program, Harvard Business School, U.S.A.
• Senior Executive Program, Sasin Graduate Institute of Business Administration of Chulalongkorn University
• Public Economics Management for Executives, King Prajadhipok’s Institute
• Advanced Certificate in Promotion of Peaceful Society, King Prajadhipok’s Institute
Work Experience October 1, 2013 Deputy Governor - Business Development October 1, 2011 Assistant Governor - Generation 3
82
Mr. Boonmarg Smitthileela Age 59 Deputy Governor - Transmission System Development Education/Training
• B. Eng. (Electrical Engineering), Chulalongkorn University
• Administrative Justice for Executives, Office of the Administrative Court • Advanced Certificate in Promotion of Peaceful Society, King Prajadhipok’s Institute Work Experience October 1, 2013 Deputy Governor - Transmission System Development October 1, 2011 Assistant Governor - Transmission System Maintenance
83
Mrs. Juree Somprasong Age 57 Advisor Level 14 to the Governor Education/Training • MBL., University of California, Los Angeles, U.S.A. (Fulbright /scholarship) • LL. B. (2nd Class Honors), Chulalongkorn University • Executive Program in Legal Administration for the Public, Office of the Council of State
• Executive Development Program, Fiscal Policy Research Institute Foundation
• Justice Administration for Executives, Office of the Attorney General
• Director Certification Program, Thai Institute of Directors
• Masterful Coaching Workshop, Hay Group
• Advanced Mini MBA
Work Experience January 22, 2014
Advisor Level 14 to the Governor
March
Assistant Governor - Legal Affairs Bureau
15, 2010
October 1, 2009
Assistant Governor - Legal Affairs Bureau, Serving as Assistant Secretary of EGAT Board of Directors and Assistant Secretary of Executive Committee
January 1, 2009
Assistant Governor - Legal Affairs Bureau
84
Mr. Seubphong Buranasirin Age 55 Deputy Governor - Administration Education/Training
• M.P.A., National Institute of Development Administration • LL. B., Thammasat University
• B. Econ. (Development Economics), Ramkhamhaeng University
• Justice Administration for Executives, Office of the Administrative Court
• The Joint State-Private Sector Course, National Defense College
• Director Certification Program, Thai Institute of Directors
• Anti-Corruption Course for Executives, Office of the National Anti-Corruption Commission
Work Experience October 1, 2014
Deputy Governor - Administration
May
Assistant Governor - Human Resources
1, 2014
October 1, 2012
Assistant Governor - Human Resources, Serving as Assistant Secretary of EGAT Board of Directors and Assistant Secretary of Executive Committee
October 1, 2011
Assistant Governor to Office of the Governor, Serving as Assistant Secretary of EGAT Board of Directors and Assistant Secretary of Executive Committee
85
Mr. Chanin Chaonirattisai Age 58 Deputy Governor - Policy and Planning Education/Trainging • M. Eng. (Electrical Engineering), University of Missouri-Rolla, U.S.A. • B. Eng. (Electrical Engineering), University of Missouri-Rolla, U.S.A. • Director Certification Program, Thai Institute of Directors
• Politics and Governance in Democratic Systems for Executives (Class 17), King Prajadhipok’s Institute
• The Basic Concept Regarding Conflict Management in Public Policies by Peaceful Means (Class 7), King Prajadhipok’s Institute
• Certificate of Governance for Middle Management (Class 10), King Prajadhipok’s Institute
Work Experience October 1, 2014 Deputy Governor - Policy and Planning October 1, 2012 Assistant Governor - System Control
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Mr. Chartchai Rojanaratanangkule Age 58 Deputy Governor - Account and Finance Serving as Chief Financial Officer (CFO) Education/Training
• Bachelor of Accountancy, Chulalongkorn University
• Financial Management Program, Fiscal Policy Research Institute Foundation Work Experience October 1, 2014 Deputy Governor - Account and Finance, Serving as Chief Financial Officer (CFO) October 1, 2013 Assistant Governor - Internal Audit Bureau
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Mr. Saharath Boonpotipukde Age 56 Deputy Governor - Corporate Social Affairs Serving as EGAT Spokesman Education/Training • B. Eng. (Electrical Engineering), Chulalongkorn University • Conflict Management in Public Policies for Energy Regulatory Commission, King Prajadhipok’s Institute Work Experience October 1, 2014 Deputy Governor - Corporate Social Affairs, Serving as EGAT Spokesman October 1, 2013 Engineer Level 13, Deputy Governor - Business Development Appointed as Executive Vice President-Administration, EGAT International Company Limited
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Executives Posted to EGAT Affiliates
Mr. Sahust Pratuknukul Age 59 Engineer Level 14 to the Governor Appointed as President, Electricity Generating Public Company Limited Education/Training • B. Eng. (Electrical Engineering), Chulalongkorn University
• The Joint State-Private Sector Course, National Defense College
• Senior Executive Program, Capital Market Academy
• Energy Literacy Leadership Program, Thailand Energy Academy
• Senior Executive Development Program (Class 1), General Electric Co., Ltd., U.S.A.
• Director Certification Program, Thai Institute of Directors
• Finance for Executive Decision, Continuing Education Center, Chulalongkorn University
Work Experience October 1, 2011
Engineer Level 14 to the Governor Appointed as President, Electricity Generating Public Company Limited
October 1, 2008
Deputy Governor - Policy and Planning
October 1, 2006
Assistant Governor - Policy
October 1, 2005
Assistant Chief Executive Officer - Planning
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Mr. Thana Putarungsi Age 59 Senior Deputy Governor to the Governor Appointed as Senior Executive Vice President and Acting President, EGAT International Company Limited Education/Training
• M. Eng. (Electrical Engineering), Kasetsart University
• B. Eng. (Electrical Engineering), Kasetsart University
• Energy Literacy Leadership Program, Thailand Energy Academy
• Politics and Governance in Democratic Systems for Executives, King Prajadhipok’s Institute
• I ndustrial Development and Investment for Executives, Institute of Business and Industrial Development
• Director Certification Program, Thai Institute of Directors
• Financial Statements for Directors, Thai Institute of Directors
• Senior Executive Development Program (Class 2), Foundation for International Human Resource Development
• Masterful Coaching Workshop, Hay Group
• Finance for Executive Decision Program, Continuing Education Center, Chulalongkorn University
Work Experience October 1, 2013
Senior Deputy Governor to the Governor Appointed as Senior Executive Vice President and Acting President, EGAT International Company Limited
October 1, 2010
Deputy Governor - Transmission System
October 1, 2008
Assistant Governor - Transmission System Operation
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Mr. Pongdith Potchana Age 59 Engineer Level 14 to the Governor Appointed as Chief Executive Officer, Ratchaburi Electricity Generating Holding Public Company Limited Education/Training • M. Eng. (Civil Engineering), Georgia Institute of Technology, U.S.A.
• B. Eng. (Civil Engineering), Chiang Mai University
• Energy Literacy Leadership Program, Thailand Energy Academy
• Public Administration and Law for Executives, King Prajadhipok’s Institute
Work Experience July
1, 2013
Engineer Level 14 to the Governor Appointed as Chief Executive Officer, Ratchaburi Electricity Generating Holding Public Company Limited
October 1, 2012
Deputy Governor - Corporate Social Affairs, Serving as EGAT Spokesman
July
Assistant Governor - Corporate Social Affairs
1, 2012
October 1, 2010
Assistant Governor - Corporate Social Responsibility
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Mr. Paisan Katchasuwanmanee Age 59 Engineer Level 14 to the Governor Appointed as Executive Vice President - Development, EGAT International Company Limited Education/Training
• B. Eng. (Electrical Engineering), Kasetsart University • Leadership Succession Program, Institute of Research and
Development for Public Enterprises (IRDP)
• Financial Statements for Directors, Thai Institute of Directors
• Director Certification Program, Thai Institute of Directors
• Public Economics Management for Executives, King Prajadhipok’s Institute
• Senior Executive Program, Sasin Graduate Institute of Business Administration of Chulalongkorn University
• Psychological Operations for Management, Applied Psychology Institute
• Senior Executive Development Program (Class 2), Foundation for International Human Resource Development
• Masterful Coaching Workshop, Hay Group
• Finance for Executive Decision Program, Continuing Education Center, Chulalongkorn University
Work Experience October
1, 2013
Engineer Level 14 to the Governor Appointed as Executive Vice President Development, EGAT International Company Limited
September 1, 2012
Engineer Level 13 to the Deputy Governor - Business Development Appointed as Executive Vice President - Development, EGAT International Company Limited
October
1, 2011
Assistant Governor - Business Administration
January
6, 2010
Assistant Governor - Power Plant Maintenance
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Executives Retired on October 1, 2014
Mr. Noppol Milinthanggoon Senior Deputy Governor to the Governor (July 1, 2013 - September 30, 2014)
Mr. Mongkol Sakulkao Deputy Governor - Policy and Planning (October 1, 2011 - September 30, 2014)
Mr. Piboon Buacham Deputy Governor - Administration (October 1, 2012 - September 30, 2014)
Mr. Poonsuk Tochanakarn Deputy Governor - Account and Finance (October 1, 2012 - September 30, 2014)
Mr. Somyos Theravongsakul Deputy Governor - Generation (October 1, 2013 - September 30, 2014)
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Corporate Governance EGAT manages corporate governance in accordance with the principle and guidelines of good corporate governance for state enterprise of 2009 and in line with the Statement of Directions (SOD) of the Ministry of Finance with emphasis on clear direction under the following state shareholder policy of 3 levels:
1. State shareholders as a whole : “being a mechanism in mobilizing the social and economic strategy of the country on the basis of efficient operation in accordance with good corporate governance”
2. State shareholders in energy sector : “building the country’s energy security, promoting and developing clean alternative energy, promoting the cost-effective use of energy and effective cost management, and taking care of the society and environment”
3. State shareholders of EGAT : “building confidence in the sufficiency, stability, and quality of the electricity system of the country, developing power generation from alternative energy taking into account the social and environmental impact as well as efficiently managing cost and resource of organization”
In responding to the state shareholder policy, EGAT Board of Directors has issued EGAT’s Policy on Good Corporate Governance (EGAT Notification No. 11/2553 (2010) dated April 22, 2010), and EGAT Governor has issued EGAT Notification on EGAT Good Corporate Governance (EGAT Notification No. 13/2553 (2010) dated May 11, 2010).
EGAT’s Good Corporate Governance Policy
1. Implementation of 6 pillars of good corporate governance consisting of rules of law, moral integrity, transparency, participation, responsibility and accountability, and effectiveness and efficiency
2. EGAT’s Code of Conduct should be established and to be observed by EGAT Board of Directors, EGAT executives, and EGAT employees in conjunction with EGAT’s Rules and Regulations
3. In establishing the vision, strategy, policy, and major plans of EGAT, risk factors should be considered, and appropriate management should be established. Internal audit should be followed to ensure the reliability of the accounting system, fiscal report, and audit report
4. Promotion of dedication and responsibility of the executives and employees in accordance with their role and responsibility
5. Promotion of good management taking into account 4 aspects which are
- state, society, community, and environment
- customers and stakeholders
- organization - employees
6. Promotion of establishment of appropriate ad hoc committees to scrutinize major issues
7. Promotion of disclosure of financial and non-financial information with correctness, reliability, sufficiency, regularity, and timeliness to ensure that the relevant persons and stakeholders have possessed information with equity
8. EGAT Board of Directors and EGAT executives shall be the model in good conduct and morality
9. EGAT Board of Directors and EGAT executives shall carry out their duty with dedication and responsibility with a clear dividing line between the role of the Chairman of the EGAT Board of Directors and EGAT Governor
10. Recruitment system and procedure and/or selection of persons for the executive posts of all levels shall be appropriate, transparent, and fair
11. Self-assessment shall be available to be used as a frame in the assessment of the performance of EGAT Board of Directors
Based on the above-mentioned policy, EGAT has established its vision and strategy in operation, appropriate for the situation. In 2014, EGAT won several awards reflecting its good corporate governance. Major awards are:
96
Outstanding State-Owned Enterprise (SOE) Award
• State Enterprise of Pride Award : A special award to mark a decade of the awarding activity was given to EGAT for the achievement during the consecutive years in the main mission of electricity generation, the strong corporate culture, and the profits rendered to the country
• Award of the honorary level for the outstanding innovation in the category of organization for the invention of Remote Terminal Unit (RTU)
Outstanding Workplace Award
• EGAT was given the Outstanding Workplace Award in the area of safety, occupational health, and working environment at the national level for 2014 for its 34 units.
Other Awards
• NACC Integrity Award 2013 : The award was given by the Office of the National Anti-Corruption Commission to 23 successful organizations among 96 candidates. Of the 23 successful organizations, 4 organizations were given NACC Integrity Award, and 19 organizations were given honorable mention.
• EIA Monitoring Award 2014 : EGAT was given EIA Monitoring Award in the category of transportation for its Project of Oil Transferring Port of Krabi Thermal Power Plant
• Green Mining Award 2014 : EGAT received Green Mining Award 2014 from the Department of Primary Industry and Mines, Ministry of Industry during the Industrial Supply Chain Logistics Conference 2014 at the Bangkok International Trade and Exhibition Center (BITEC). The award was granted to the workplaces with outstanding performance in environmental-friendly operation and with community participation. The award was given to Mae Moh Mine which has contributed to the desulfurization of lignite burning process in Mae Moh Power Plant
• Thailand Energy Award 2014 organized by Department of Alternative Energy Development and Efficiency, Ministry of Energy
- Promotion of Energy and Alternative Energy Conservation
Among 290 candidates, EGAT was awarded outstanding organization in Promotion of Energy and Alternative Energy Conservation which proved to be able to save energy, accounting for more than 1,600 million Baht pear year, and reduced carbon dioxide of more than 181,000 ton per year, which is equivalent to planting trees in an area of around 220,000 rais or approximately 22 million trees.
- Mass media in Promotion of Energy Conservation for EGAT website
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• Sustainability Report Award 2014 organized by Thai Listed Companies Association (CSR Club) in collaboration with the Office of the Securities and Exchange Commission and Thaipat Institute to upgrade the disclosure of CSR information and promote the sustainable economic, social, and environmental development at the regional level which will be beneficial to investors in the capital market.
Among the 64 candidates, 21 units of EGAT were given CSR-DIW Award and CSR-DIW Continuous Award from Department of Industrial Work.
• Asian Power Award 2014 : Chana Power Plant was given Asian Power Award 2014 of the Silver level in the category of Gas Power Project of the Year held at Shangri-La Hotel in Kuala Lumpur, Malaysia.
Policy Concerning Conflict of Interest EGAT Board of Directors has a policy to prevent the conflict of interest and has issued EGAT Rule No 346 on Good Corporate Governance containing a provision that EGAT Board of Directors is responsible for looking after and solving the problem regarding conflict of interest which may occur among the Executives, Board of Directors, and employees and investigating the misuse of EGAT property. EGAT Board of Directors has also established a preventive measure against the abusive self-dealing of the members of the Board. Every member has to report on other positions they are holding including committee member and management position in other state enterprises or companies as well as connected transactions, amount/value of shares in other companies in the same industry or business in which EGAT operates and the amount of the shares held is equal to or higher than 10 percent of the total voting rights. The qualification of the Board members shall comply with the Constitution of Thailand, Act on Qualification Standards for Directors and Employees of State Enterprises, B.E. 2518 (1975) and its amendment and other related laws. The qualification of the Board Committees shall comply with the EGAT Regulations on Board Committees. In addition to the report of the Board members mentioned above, the Good Corporate Governance Handbook also contains a form for disclosing the conflict of interest between one’s personal interest and the organization’s interest to be observed by EGAT executives from the level of Deputy Governors or the equivalent and above. The matter of conflict of interest will be disclosed upon the beginning of the post as well as the one occurring during the year. The concerned people who are members of the procurement committee will report on this matter as soon as a conflict of interest is found. Moreover, the Handbook on Good Corporate Governance also contains a guideline in handling the conflict of interest. For example, in such a situation where decision is to be made in approving the items, which involve or are suspected to involve a conflict of interest, a report should be made to the superior or the one who has the power to give approval before withdrawing from such work. Self-assessment on conflict of interest must be performed using the form on self-assessment on conflict of interest.
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Treatment of Stakeholders In complying with the policy on Good Corporate Governance and in response to the policy on Good Corporate Governance in the area of customers and stakeholders, EGAT has given importance to all stakeholders including responsibility to the society, community, and the environment. Stakeholders are divided into 5 groups with different mechanism in responding to the need and expectation (delivered values and communication channels) as follows:
Need and expectation, delivered values, and communication channel of stakeholders Stakeholders Need and expectation Delivered values a) Regulatory bodies comprising
• Implementation of the policy
• Provision of sufficient power for the demand
• Giving good cooperation
• Security of the power system
Communication channels
• Meeting, seminar • Activities as required by the government policy and government agencies
- Ministry of Energy
• Reasonable price of electricity
• Availability of the technology demonstrating alternative energy and clean energy
- Ministry of Finance
• Revenue for the government
• Meeting, seminar
• Increasing quality in management
• Record, report
• Provision of sufficient power for the demand
• Meeting, seminar between EGAT, MEA, and PEA
- Energy Regulatory Commission
• Formal and informal meeting • Annual report, website
• Annual report, website
• Availability of the country’s smart grid b) Society as a whole
c) Communities around the power plants and along the transmission lines
• Responsibility for the society and country by giving priority to the country’s development, happiness, and advantages
• Focus on CSR in process
• EGAT website www.egat.co.th
• Efficient power use
• EGAT Call Center 1416
• Power conservation
• EGAT Information Center (prinfo.egat.co.th)
• Controlling and minimizing the impact on safety in the daily life of the people and the environment
• Safety
• Billboard showing air quality
• Participation of EGAT and the community in developing the systematic and sustainable community relations, which strengthens economy of the community
• Annual emergency rehearsal
• Provision of local employment
• EGAT mass communication unit
• Appropriate support which responds to the demand of the community
• Volunteer projects
• Public Relations of each operation unit and each power plant
• Meeting of coordination committees in social, community, and environmental matter. • Events organized by EGAT executives together with the community around the power plants • Invitation to representatives of the community to visit the power plants and projects of EGAT • EGAT website, posters • Activities of social and environmental projects such as Biological Way of Life, Wan Kaew, mobile medical units, etc
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Stakeholders Need and expectation Delivered values d) EGAT Employees
• Image of the organization • Role of executives and superiors
• Management of the employees’ relationship in accordance with their need and expectation
Communication channels • Meeting of the Board of Directors • Meeting of the Executives
• Nature of work and involvement
• Meeting of Committee on Corporate Relations
• Quality of life
• Meeting of Committee on Strengthening Internal Relationship
• Work achievement management and compensation
• Meeting of Committee on Coordination
• Internal management
• Teleconference • EGAT news in various publications/e-mail/EGAT TV • Meeting with the executives • Seminar • Annual QC
e) General people, academics, and NGO
• Being a good organization of the society
• EGAT newsletter, newspaper, radio, television
• Reasonable price
• Promotion of Demand Side Management (DSM)
• Survey
• Less environmental impact
• Green gas reduction
• Sufficient power • Security and safety
• Transparency
• Call center • Seminar, meeting, letters, website, email, visit
Moreover, in enhancing corporate governance practices for the best interest of all stakeholders, the Information Management Committee has been appointed to be responsible for EGAT’s information service for all operational lines and units. Various communication channels for comments and complaints including EGAT Call Center 1416, EGAT website www.egat.co.th, and Public Service Counter 1111 have been provided for stakeholders. Comments and complaints will be collected and managed by EGAT’s Opinion Handling Center for further action. In 2014, EGAT contracted the following advisors to make a survey on the views of the stakeholders on EGAT’s operation. Academic Center, National Institute of Development Administration (NIDA) A survey was conducted by NIDA on the opinion of stakeholders on the adoption of Good Corporate Governance by EGAT to evaluate the result of the implementation of the Good Corporate Governance master plan (2012-2014) in terms of the increased acceptance of the stakeholders so as to prepare a new plan of 2015 for more acceptance. From the survey, the average score of the year 2014 was higher than the one of 2013. However, to increase acceptance of stakeholders of all groups, social media which is a new type of communication has been used as an additional channel in reaching wider people in general. The administrator who, on a continued basis, takes care of the content and organizes the events in which EGAT executives can exchange ideas with the community. More plans have been established to strengthen the cooperation with civil society, to show EGAT’s acceptance of their role, to build strong alliances, and to encourage the initiation from the civil society for the projects which correspond to their need. Advanced Research Group Co., Ltd. A survey was conducted by Advanced Research Group Co., Ltd on the satisfaction and acceptance of stakeholders of EGAT’s operation. The result of the survey revealed that the satisfaction level, the average score of acceptance, the level of relationship, the level of recognition and understanding of EGAT’s operation, and the level of recognition of EGAT’s social responsibility were higher than the result of the survey made in 2013.
100 Thammasat University Research and Consultancy Institute (TU-RAC) A survey was conducted by Thammasat University Research and Consultancy Institute on the satisfaction of customers with EGAT’s operation. From the survey, the average score of satisfaction and the level of confidence in EGAT’s service are higher than the result of the survey made in 2013. The Metropolitan Electricity Authority (MEA) has a tendency to have the strongest ties with EGAT Brand. EGAT has continuously given importance to the activities concerning social responsibility (CSR) and has regarded CSR as an integral part of its mission particularly CSR in Process in accordance with ISO 26000.
Information Disclosure and Transparency Information disclosure is an indicator of transparency in the operation and a factor to create confidence in stakeholders. Realizing the importance of the disclosure of correct and precise information, EGAT has provided several channels through which stakeholders can have an easy access to information. Campaign has been made to create awareness of information disclosure and transparency in the operation. Appropriate mechanism for receiving complaints has been provided to ensure fairness to all parties concerned. Financial and non-financial information has been provided in EGAT annual report. News and information have been communicated to all stakeholders with equity in accordance with the Official Information Act, B.E.2540 (1997) and other relevant laws. Importance has been given to financial and management reports as an oversight tool. The reports have been ensured that they are accurate, reliable, up-to-date, and accountable to reduce the risk that might affect the operation. EGAT emphasizes the transparency of its operation on the principle that all levels of employees should perform their duties to maximize EGAT’s benefits without personal interest. Moreover, EGAT Information Center is available to all interested persons. EGAT Deputy Governor Corporate Social Affairs who serves as EGAT spokesman is responsible for giving news to the mass media and general public.
Ethics, Code of Conduct, and Core Value EGAT Regulation No. 346 on Corporate Governance issued by the Board of Directors also contains the ethics and code of conduct to provide transparency, moral, and accountability to the society and environment to the operation of EGAT. Moreover, EGAT Board of Directors has also issued EGAT Regulation No. 347 regarding Ethics and Code of Conduct to be observed by the Board of Directors, executives, and employees. The Code of Conduct includes “Core value of the standard for ethics”, “EGAT standard for ethics”, “What should be practiced by EGAT employees” and “Practice, mechanism, and enforcement of code of conduct”. The standard for ethics of EGAT has been established to comply with the provision of the Constitution of Thailand B.E. 2550 (2007). Moreover, the EGAT Notification No.1/2552 (2009) on the implementation of the Code of Conduct in connection with the EGAT operation and recommendations to solve the related problems has also been in use.
101 Regarding the core value which is a basis for a strong corporate culture, importance has been given by EGAT Board of Directors and executives to the implementation of the regulation. Revision of the core value was undertaken, and it has been found that the present core value “Firm-C” (representing Fairness, Integrity, Responsibility and Accountability, Mutual Respect, and Commitment) still complies, supports, and correlates with the vision, strategic frame, and core culture of EGAT. All these values will support EGAT executives and the employees in working together, with the same direction with individual uniqueness, mutual trust, and the sense of belonging as a team. Being essential elements for an organization with strong corporate culture, “Firm-C” is an indispensible factor in enhancing an efficient as well as a good person. In 2014, EGAT focused on responsibility and accountability to oneself, to society, and to the country. To materialize this core value, the assessment of the conduct in accordance with the core values constitutes a part of the annual assessment of EGAT employees ‘ performance. Moreover, the ethical activities are supported by various religious clubs. Networks in ethical and good governance and anti-corruption have been established. EGAT has been participating in the activities of the Moral Promotion Center and the Office of the National Anti-Corruption Commission.
Promotion and Dissemination of Activities Concerning Corporate Governance EGAT has organized the following activities to promote and support the participation in good corporate governance which is a part of corporate culture:
• Communication and awareness campaigns such as the website on good corporate governance, news, and articles on intranet
• Information on good corporate governance on the first page of EGAT website www.egat.co.th as another channel easily accessible by the public
• Revision of handbook on good corporate governance and handbook on EGAT’s core values and circulation to the executives and employees for implementation
• Lectures by knowledgeable and experienced persons in good governance for EGAT Board of Directors and the executives, and lectures on good governance and implementation of the Good Corporate Governance master plan (2012-2016)
• Corporation with 22 parties in the annual National Moral Assembly in mobilizing the matter concerning moral and ethics in Thai society
• The organization of “EGAT - the Clean Organization” in July every year
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Official Information Act Compliance Report In compliance with the Official Information Act, B.E. 2540 (1997), EGAT has appointed the Committee on EGAT Information Management to be responsible for determining policies, measure or criteria regarding information management, permission to use information, and information services, with the approval of EGAT Deputy Governor - Corporate Social Affairs. EGAT Information Center is responsible for information service in accordance with EGAT information management policy with a commitment to provide news and information service in a fair, equitable, and transparent manner and in compliance with the Official Information Act B.E. 2540 (1997) and other relevant laws. EGAT has put in place its information disclosure system which defines clear rules, procedures, systems, and practices complying with the Official Information Act B.E. 2540 (1997). EGAT’s information service is available in various forms, such as documents, internet-accessible information, audio text, fax on demand, and assistance by EGAT staff. Moreover, interested persons can visit the EGAT Information Center at EGAT Office, Bang Kruai District, Nonthaburi Province. Detailed information or documents on important topics are available at the concerned divisions with the assistance of appointed EGAT staff in each division. Interested persons can visit the required division or by telephone.
Internet-Accessible Information Information on various activities of EGAT is available at EGAT website: www.egat.co.th which is accessible on 24-hour basis. This information includes corporate profile, power plants and transmission systems, power generation, energy and sales, power development plan, and new power projects, etc. Moreover, inquiry and complaint menu is also available on EGAT website for EGAT employees and interested people.
EGAT Call Center EGAT Call Center is available to provide enquiry service regarding technical and other related information and suggestion useful to the public including emergency situations related to the transmission system. EGAT Call Center has provided a one-stop service for the people countrywide to contact EGAT speedily around the clock. EGAT Call Center Phone 1416 has been in full operation since 2012.
Activities of EGAT Information Center in 2014 EGAT Information Center provides information through telephone, EGAT website, and assistance to visitors to the Information Center during office hour. Report on the activities of EGAT Information Center will be sent to the Office of Permanent Secretary, Ministry of Energy.
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In 2014, EGAT Information Center provided 11,592 times of information services through its Call Center Phone 1416. Types of information of public interest included the following:
• EGAT’s operations
• EGAT’s CSR activities
• Job recruitment, internship training opportunities, and request for EGAT office and power plants’ visits
• Contact of EGAT staff and offices
• The areas of the transmission lines
• Emergency situation and complaints
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EGAT Information Management Committee The Committee on EGAT Information Management is responsible for setting policies, measures on information management system, information service as well as consideration of complaints or objection according to the Official Information Act, B.E. 2540 (1997). The resolutions of the Committee will be responsible by relevant units of EGAT.
Public Complaint Process To enhance the efficiency of the EGAT public complaint process, the comment and complaint process has been installed on EGAT website to facilitate 8 groups of stakeholders comprising state sectors and regulatory bodies, financial institutions, EGAT employees, trade partners and business alliances, main customers and endusers, academics and NGOs, communities around the power plants and along transmission lines, and mass media to comment or give suggestions. In 2014 EGAT’s public complaint process handled appeals and enquiries totaling 552 items received through various channels comprising EGAT website, EGAT-VOC, EGAT Call Center 1416, and Government telephone hotline 1111. All public complaints, concerns, and questions included
Through the Government’s Complaint Handling System 1111 (20 items) EGAT investigated the complaints and reported to the Office of the Prime Minister in reasonable time.
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Through EGAT–VOC (41 items) Comments and complaints received from direct customers through EGAT–VOC enabled EGAT to be aware quickly of the problems occurring to EGAT’s power system which affected the customers’ operation and the problems at the delivery points so that they could be addressed promptly. EGAT’s direct customers are
• Metropolitan Electricity Authority (MEA)
• Provincial Electricity Authority (PEA)
• ESSO (Thailand) (Plc.)
• Jalaprathan Cement (Plc.) (Takli)
• SCG (Plc.) (Tung Song)
• Padaeng Industry (Plc.)
• Siam Construction Steel (2001) Co., Ltd.
• Electricity Welfare of the Royal Thai Navy (Sattaheep)
• The Voice of Free Asia (VFA) Radio Station
• Power Plant Operation and Maintenance Business
• Communication Network Business
Through EGAT’s Opinions Handling System (491 items) Most of these complaints were the appeal regarding the lands outside the power grid network. EGAT had made an investigation on the matter and submitted for approval of EGAT Information Management Committee to remedy those who were affected by the construction with compensation payment and informed those who had made complaints on the results and the action taken. EGAT has established a process of dealing with complaints. The complaints received are forwarded to the relevant units through the EGAT’s Opinions Handling System. The responsible units will consider the matter in a fair and equitable manner together with the review of comments and complaints to prevent the same occurrence in the future. Moreover, personal information of the persons making a complaint is regarded as confidential.
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Power Development and Future Plan The official power development plan currently in use is PDP 2010 (3rd Revision) which was approved by the Cabinet on June 19, 2012. For the preparation of the next power development plan, PDP 2015, the National Energy Policy Council (NEPC) has approved the timeframe of 2015-2036 which is in accordance with the National Economic and Social Development Plan established by the Office of the National Economic and Social Development Board (NESDB). Moreover, the timeframe of the Energy Efficiency Development Plan (EEDP) and the Alternative Energy Development Plan (AEDP) is also in line with that of PDP 2015 (2015-2036). NEPC also approved on December 15, 2014, the framework of PDP 2015 emphasizing 3 key aspects: energy security, economy, and ecology. The preparation of PDP 2015 is under the responsibility of the Energy Policy and Planning Office (EPPO), and it is expected to be finalized and submitted to the Cabinet for approval by the beginning of 2015.
EGAT’s Power Projects
1. New Power Plant Construction
1.1 Chana Combined Cycle Power Plant, Block 2
Chana Combined Cycle Power Plant, Block 2 is located in the area of the existing Chana Power Plant, Chana District, Songkhla Province. The power plant has a total capacity of 782.2 MW using natural gas as fuel. The project will strengthen the power security and stability in the South. The construction had started in December 2011 and was completed for commercial operation in June 13, 2014.
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1.2 Wang Noi Combined Cycle Power Plant, Block 4
Wang Noi Combined Cycle Power Plant, Block 4 is located in the area of the existing Wang Noi Power Plant, Wang Noi District, Ayutthaya Province. The power plant has a total capacity of 768.7 MW using natural gas as fuel. The project serves the future power demand and strengthens the power security and stability in the Central Area. The construction had started in December 2011 and was completed for commercial operation in April 2014.
1.3 North Bangkok Combined Cycle Power Plant, Block 2
North Bangkok Combined Cycle Power Plant, Block 2 is located in the area of the existing North Bangkok Power Plant, Bang Kruai District, Nonthaburi Province. The power plant has a total capacity of 848.3 MW using a mixture of natural gas from the western gas pipelines (from Myanmar source) and the eastern gas pipelines (from the Gulf of Thailand) as fuel. The construction work started in February 2013 with the scheduled commercial operation date in January 2016. As of November 2014, the work progress was 90.5 percent.
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2. Renewable Energy Development Projects EGAT has continuously developed renewable energy power plant projects in response to the government’s policy in promoting electricity generation from renewable energy and to reduce fossil fuel consumption. The renewable energy development projects which have been approved and have the scheduled commercial operation dates during 2015-2018 are as follows: No. Projects Location Type Scheduled Capacity (Province) Commercial (MW) Operation Date (SCOD) 1. Thap Sakae Solar Power Project
Prachuap Khiri khan
Solar
Jun. 2015
5
2. Khun Dan Prakanchol Dam
Nakhon Nayok
Hydro
Jun. 2015
10
3. Mae Klong Dam
Kanchanaburi
Hydro
Jun. 2015
12
Lop Buri
Hydro
Jun. 2015
6.7
Phitsanulok
Hydro
Jun. 2015
30
Lampang
Hydro
Sep. 2017
5.5
Nakhon Ratchasima
Wind
Dec. 2017
24
Uttaradit
Hydro
Sep. 2018
2.5
Chaiyaphum
Hydro
Sep. 2018
1.25
4. Pasak Jolasid Dam 5. Kwae Noi Bamrungdan Dam 6. Kiew Komah Dam 7. Lam Takong Wind Turbine, Phase 2 8. Klong Tron Dam 9. Chulabhorn Downstream Hydro Power Plant
Total
96.95
3. Projects in the Initial Stage of Development
3.1 Replacement of Mae Moh Power Plant, Units 4-7
As Mae Moh Power Plant, Units 4-7 of which the installed capacity is 600 MW have been in operation for 25 years, EGAT has prepared a project for replacement units during 2008-2010. The replacement units 4-7 which are thermal power plants of a contracted capacity of approximately 600 MW using lignite from Mae Moh Mine as fuel will be located in the existing Mae Moh Power Plant, Mae Moh Sub-district, Mae Moh District of Lampang Province. The investment cost is 36,811 million Baht. The scheduled commercial operation date is expected to be in November 2018. Presently, the report on environmental and health impact assessment (EHIA) of this project has been approved by the National Environment Board. EGAT is requested to follow the recommendations given in the report regarding the preventive measure of the environmental impact, relevant improvement, and monitoring.
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3.2 Clean Coal Technology Power Projects
3.2.1 Krabi Coal-Fired Power Plant Krabi Coal-Fired Power Plant Project is located in an area of 60 rais of the existing Krabi Power Plant in Klong Khanan Sub-district, Nuea Khlong District of Krabi Province. The power plant has an installed capacity of 870 MW using imported sub-bituminous or bituminous from Indonesia as fuel. The scheduled commercial operation date is December 2019. Airsafe Co. Ltd in collaboration with Mahidol University and Kasetsart University have been contracted by EGAT to conduct EHIA for Krabi Expansion Power Project and EIA for the Pier Construction Project. The assessment has been subjected to 3 public hearings. Currently, the complete EHIA report of the Krabi Coal-Fired Power Plant Extension Project and the EIA report for the Pier Construction Project at Ban Klong Rua have been submitted to the Office of Natural Resources and Environmental Policy and Planning (ONEP) and will be forwarded to the Expert Committee for consideration and approval. 3.2.2 Thepha Coal-Fired Power Plant Being a clean coal technology project, the 2,200 MW Thepha Power Plant consists of 2 blocks, each of which has an installed capacity of approximately 1,100 MW. The power plant is located on the coastal area of 2,000 rais in Pak Bang Sub-district, Thepha District of Songkla Province. The Pier Construction Project for transferring the imported coal for the power plant is located in the power plant area. The Thepha Power Project and the Pier Construction Project have been subjected to the first public hearing and are in the process of preparing for the second public hearing which will be held at the beginning of 2015.
3.3 Nuclear Power Plants
According to the Draft PDP 2015 (2015-2036), the scheduled commercial operation date of the two nuclear power plants, each of which has the installed capacity of 1,000 MW will be postponed from 2026 and 2027 to the last 10-year-duration of the PDP 2015. The Nuclear Power Development Project will help to diversify the fuel sources, reduce investment cost, and decrease CO2 emission by 20 percent of the current level. In the meantime, more studies will be planned to add to the readiness in several aspects such as in technical area, safety, plant location, and knowledge sharing with the public regarding nuclear power plants on a regular basis.
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Power Purchase Projects
Power Purchase from Independent Power Producers (IPPs) During 2015 - 2024, there are 8 projects of power purchase from independent power producers of the total capacity of 8,070 MW which are in the Request for Proposal 2012. No. Projects Location Type Capacity Scheduled (Province) (MW) Commercial Operation Date (SCOD) 1. Gulf JP UT Co.,Ltd., Blocks 1-2 2. EGCO Plc.
Ayutthaya
Natural gas
Nakhon Si Thammarat Natural gas
1,600
Jun./Dec. 2015
930
Jul. 2016
3. National Power Supply Co., Ltd., Units 1-2
Chachoengsao
Coal
270
Nov. 2016
4. National Power Supply Co., Ltd., Units 3-4
Chachoengsao
Coal
270
Mar. 2017
5. Gulf SRC Co.,Ltd. Chon Buri Natural gas
1,250 (2×625)
Mar./Oct. 2021
6. Gulf SRC Co.,Ltd. Chon Buri Natural gas
1,250 (2×625)
Mar./Oct. 2022
7. Gulf PD Co.,Ltd. Rayong Natural gas
1,250 (2×625)
Mar./Oct. 2023
8. Gulf PD Co.,Ltd. Rayong Natural gas
1,250 (2×625)
Mar./Oct. 2024
Total
8,070
Power Purchase from Small Power Producers (SPPs) The projects of power purchase from small power producers which have the scheduled commercial operation dates of 2015-2019 with the total capacity of 5,598 MW comprise 3,600 MW firm cogeneration projects, 60 MW non-firm cogeneration projects, and 1,938 MW renewable energy projects.
Power Purchase from Neighboring Countries Currently, EGAT has purchased a total of 2,404.6 MW power from 6 power projects from neighboring countries. During 2015-2019, the total capacity of foreign power purchase to be added to the power system will be 3,316 MW from 5 power projects as follows:
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No. Projects Fuel Type Contractual Scheduled Capacity Commercial (MW) Operation Date (SCOD) 1.
Hongsa Lignite Power Plant, Units 1-2
Lignite
982
Jun./Nov. 2015
2.
Hongsa Lignite Power Plant, Unit 3
Lignite
491
Mar. 2016
3.
Xe-Pian Xe-Namnoy
Hydro
354
Feb. 2019
4.
Nam Ngiep 1
Hydro
269
Jul. 2019
5.
Xayaburi
Hydro
1,220
Oct. 2019
Total
3,316
Transmission System Development and Expansion Projects
Projects Which Have Been Approved
1.1 On-going Transmission System Projects
1. Bulk Power Supply for the Greater Bangkok Area Project, Phase 2 (BSB2) Being a successive project of Bulk Power Supply for the Greater Bangkok Area Project-Phase 1 (BSB1), the Project BSB2 has an investment cost of 9,170 million Baht. The project comprises the construction of new transmission lines of 89 circuit-kilometers, a new substation, expansion of 6 substations, installation of transformers totaling 10,600 MVA and voltage control equipment totaling 384 MVAr, and 23 miscellaneous work relating to the transmission system expansion. As of December 2014, the progress of the project was 85.07 percent. This project is scheduled to be completed in 2017. 2. Transmission System Expansion Project No.11 (TS.11) Being a successive scheme of the Transmission System Expansion Project No. 10 (TS.10), the project TS.11 has an investment cost of 23,000 million Baht and consists of the construction of the transmission lines totaling 2,014 circuit-kilometers, 10 new substations, expansion of 24 substations, the installation of transformers of 15,950 MVA and voltage control equipment of 1,738 MVAr, and 163 miscellaneous work relating to the transmission system expansion. As of December 2014, the progress of the project was 94.29 percent. It is scheduled to be completed in 2015. 3. Transmission System Development Project for Power Purchase from Nam Ngum 3 and Nam Theun 1 Hydropower Plants The purpose of this transmission system development project is to accommodate the power purchase from Nam Ngum 3 and Nam Theun 1 Hydropower Plants and/or other potential projects in Lao PDR. The investment cost of this project is 16,337.600 million Baht. The project consists of the construction of the transmission line of 1,492 circuit-kilometers, a new substation, expansion of 3 substations, and the installation of the transformers of 4,000 MVA and voltage control equipment of 770 MVAr. As of December 2014, the progress of the project was 4.58 percent. The project is scheduled to be completed in 2017.
112 4. Transmission System Development Project for Power Purchase from Theun Hinboun Hydropower Plant Expansion This project is to accommodate the power purchase from Theun Hinboun Hydropower Plant. The project has an investment cost of 665 million Baht which includes the construction of the transmission line of 114 circuit-kilometers, a new substation, expansion of 2 substations, and 3 miscellaneous work relating to the transmission system expansion. The construction was completed in September 2014. 5. Transmission System Development Project for Power Purchase from IPPs The purpose of this transmission system development project is to accommodate the power purchase from the IPP power plants under 4 sub-projects of the installed capacity of approximately 4,400 MW. The investment cost of the project is 7,023.300 million Baht. The project consists of the construction of the transmission line of 169 circuit-kilometers, 2 new substations, expansion of 6 substations, installation of transformers of 1,000 MVA, and 4 miscellaneous work relating to the transmission system expansion. As of December 2014, the progress of each transmission system sub-project is as follows:
1. The construction of the transmission system for power purchase from Gheco - One Co.,Ltd. was completed in February 2013.
2. The construction of the transmission system for power purchase from National Power Supply Co.,Ltd will start in 2016 and will be completed in 2017.
3. The construction of the transmission system for power purchase from Gulf JP UT Co.,Ltd. was completed in August 2014.
4. The progress of the construction of the transmission system for power purchase from Gulf JP NS Co.,Ltd. was 93.45 percent. It is scheduled to be completed in 2015.
6. Transmission System Development Project for Power Purchase from Hongsa Lignite-Fired Power Plant This project is to accommodate the power purchase from the Hongsa Lignite-Fired Power Plant in Lao PDR which has a capacity of 3 Ă— 626 MW and will supply 1,473 MW power to Thailand through the 500 kV transmission lines across the Thai/Lao border (in Nan Province). The investment cost of this project is 21,160 million Baht. The project consists of the construction of the transmission lines of 1,192 circuit-kilometers, expansion of 3 substations, and the installation of transformers of 1,150 MVA and voltage control equipment of 880 MVAr. As of December 2014, the progress of project was 75.88 percent. The project is scheduled to be completed in 2015. 7. Transmission System Expansion and Renovation Project, Phase 1: Substation Having the investment cost of 3,815 million Baht, the project consists of the renovation of 15 substations and the installation of transformers of 1,250 MVA and voltage control equipment of 543.75 MVAr. As of December 2014, the progress of the project was 10 percent. The project is scheduled for completion in 2017. 8. Transmission System Development for Chana Power Plant, Block 2 The project has the investment cost of 1,290.50 million Baht and comprises the construction of 230 kV transmission lines of 90 circuit-kilometers from Chana Power Plant - Chana Junction - Khlong Ngae and expansion of 2 substations. As of December 2014, the progress of this project was 97.32 percent. It is scheduled to be completed in 2515. 9. Main Transmission System Expansion Project for Power Purchase from SPP Cogeneration Power Plant, Based on the Request for Proposal 2010 This project has the investment cost of 10,610 million Baht. The project consists of the construction and expansion of relevant transmission system of 507 circuit-kilometers, a new substation, expansion of 3 substations, installation of transformers of 2,900 MVA, and 73 miscellaneous work relating to the transmission system expansion. As of December 2014, the progress of the project was 16.14 percent. The project is scheduled to be completed in 2019.
113 10. Transmission System Renovation and Expansion Project, Phase 1: Transmission Line The investment cost of the project is 9,850 million Baht. The project comprises the construction of transmission lines of 1,461 circuit-kilometers, expansion of 18 substations, and 3 miscellaneous work relating to the transmission system expansion. As of December 2014, the progress of this project was 2.10 percent. It is scheduled to be completed in 2021. 11. Transmission System Development Project for North Bangkok Power Plant, Block 2 Being an urgent project, this transmission system development project has an investment cost of 179.100 million Baht. The project comprises the construction of an underground 230 kV transmission line of 500 meters from North Bangkok Power Plant, Block 2 to North Bangkok and the expansion of North Bangkok substation. As of December 2014, the progress of this project was 84.34 percent. This project is scheduled to be completed in 2015. 12. Transmission System Renovation and Expansion Project, Phase 2 The project is a successive scheme of the Transmission System Renovation and Expansion Project, Phase 1. The objective of this project is to reduce the loss from power outage occurring from the damaged or the aged substation equipment or the transmission lines and to increase capacity of the substation and the transmission line in supplying electricity consistently and efficiently. The investment cost of the project is 21,900 million Baht. This project involves the miscellaneous work in renovation and expansion of the transmission system of 11 routes, renovation and expansion of 31 substations, and 15 miscellaneous work relating to the transmission system. As of December 2014, the progress of this project was 0.66 percent. The project is scheduled to be completed in 2019.
114 13. Bulk Power Supply for the Greater Bangkok Area Phase 3 (BSB3) This project is a successive project of the Project on Bulk Power Supply for the Greater Bangkok Area Phase 2 (BSB2). The objective of this project is to respond to the increasing demand for electricity in the area of Greater Bangkok which is the most important economic center of the country. The investment cost of this project is 12,100 million Baht. The project comprises the construction and improvement of the transmission lines of 172 circuit-kilometers, two new substations, expansion of 12 substations, the installation of transformers of 10,200 MVA and the voltage control equipment of 96 MVAr, and a miscellaneous work relating to the expansion of the transmission system. As of December 2014, the progress of this project was 2.12 percent. The project is scheduled to be completed in 2018. 14. Transmission System Development Project for Tha Tako Substation The purpose of this project is to increase the efficiency of the 500/230/115 kV control and prevention systems of Tha Tako Substation. The investment cost of this project is 475 million Baht. The project comprises the construction of a temporary building and a permanent building for the control and prevention systems for Tha Tako Substation. The construction was completed in April 2014.
1.2 Transmission System Projects Which Have Not Yet Implemented
1. Transmission System Development Project in the Area of Loei, Nong Bua Lam Phu and Khon Kaen Provinces for Power Purchase from Lao PDR The purpose of this transmission system development project is to accommodate the transmission of the 1,220 MW power purchase from the Xayaburi Hydroelectric Plant in Lao PDR. The investment cost of this project is 12,060 million Baht. The project is scheduled to start in 2015 and to be completed in 2018. 2. Transmission System Development Project in the Area of Ubon Ratchathani, Yasothon, and Amnat Charoen Provinces for Power Purchase from Lao PDR This project is intended to accommodate the power purchase from Xe-Pian Xe-Namnoy Hydropower Plant which has the installed capacity of 3Ă—130 MW and to receive more power from other potential projects from the southern part of Lao PDR. The investment cost of this project is 7,300 million Baht. The project is scheduled to start in 2015 and to be completed in 2018.
115 3. Transmission System Improvement Project in Eastern Region for System Security Enhancement The purpose of this transmission system improvement project is to enhance the security of the power system in the eastern part of Thailand to continuously and sufficiently cope with the rising demand for electricity, to receive electric power from the new power plants, and to promote the expansion of industry and tourism in the eastern part of Thailand. The investment cost of the project is 12,000 million Baht. The project is scheduled to start in 2015 and to be completed in 2019. 4. Transmission System Expansion Project No.12 (TS.12) Being a successive scheme of the Transmission System Expansion Project No.11 (TS.11), the project TS.12 has an investment cost of 60,000 million Baht. The project is scheduled to start in 2015 and to be completed in 2020. 5. Transmission System Improvement Project in the Western and Southern Regions for System Security Enhancement The project involves the construction of the 500 kV transmission lines and additional improvement of the 230 kV transmission systems to cope with the increasing power demand in the southern part of Thailand in the long run, to increase the capability of the transmission system from the West/Central of Thailand to the South, and to remedy the power outage problem in the South. The investment cost of the project is 63,200 million Baht. This project is scheduled to start in 2016 and to be completed in 2022. 6. Transmission System Development for the Project of Replacement of Mae Moh Power Plant, Units 4-7 The project involves the construction of new Mae Moh thermal power plant of the installed capacity of 600 MW to replace the former power plant which has been in operation for more than 25 years. The investment cost of the project is 360 million Baht. This project is scheduled to start in 2016 and to be completed in the same year. 7. New Transmission System Interconnection Project between Su-Ngai Kolok Substation (EGAT) and Rantau Panjang Substation (TNB) The purpose of this project is to strengthen security of the power system in Narathiwat Province by receiving more electricity from Malaysia. The investment cost of the project is 535 million Baht. The project is expected to be completed in 2016. The project construction will be able to start after the Interconnection Agreement between EGAT and Tenaga Nasional Berhad (TNB) is achieved.
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Transmission System Projects in Approval Process 1. Transmission Development System for Lam Takong Wind Turbine (Phase 2) Being a successive project of Lam Takong Wind Turbine (Phase 1), the project consists of the construction of a new substation and relevant work to transmission system. The investment cost of the project is 265 million Baht. This project is scheduled to be completed in 2017. 2. Transmission System Development for the Northeast, Lower North, Central Part and Bangkok Metropolitan for System Security Enhancement. This project will support the renewable and alternative power projects under the Renewable Power Development Plan of the government and the ASEAN Power Grid (APG) Project. The investment cost of the project is 94,040 million Baht. The project is scheduled to be completed in 2023. 3. Transmission System Development for the Upper Northern Region for System Security Enhancement. The project to improve the transmission system in the upper northern region consists of the construction of the transmission lines of 420 circuit-kilometers. The investment cost of the project is 12,240 million Baht. The project is scheduled to be completed in 2021.
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Research and Development In 2014, EGAT’s research and development roadmap (R&D roadmap) was finalized to be used as a master plan in this area. In the same year, EGAT also funded various educational institutions, research institutes, and EGAT internal units in their research work under 28 projects. Since 2006, a total 212 projects amounting to 1,390,002,136 Baht have been funded. Examples of the completed EGAT-funded projects in 2014 are as follows:
The Reconciliation for Sustainable Development for Improving Life Quality : the Case of Ban Khao Yai Tieng, Klongphai Sub-District, Sikhio District, Nakhon Ratchasima Province (Phase 2) by Nakhon Ratchasima Rajabhat University In the study, the participatory action research with the emphasis on information and knowledge based participation and learning action is used to achieve sustainable development and to promote the participation and learning action in solving problem of the community. With participation of the community, the project comprises the analysis, planning, study visit, training, brainstorming, decision making, meeting, and discussion to share knowledge and experiences regularly so as to improve the life quality of the Ban Khao Yai Tieng community. From the study, the Agricultural Cooperative of Khao Yai Tieng is restored to become the core in developing the quality of life of the community. Moreover, the community has several activities such as development of the forest for eco-tourism, establishment of career groups, provision of more communication channels as well as development of an information center and a learning center, and encouragement of the people to learn and work together. As a result, people in the community recognize the potential of the youth in the local area and promote their future leadership.
118 An Analysis of a Sustainable Community-Based Tourism Development of Mae Moh District, Lampang Province by the Upper Northern Research Administration Network (UNRN), Chiang Mai University EGAT has considered that the 5 sub-districts of Mae Moh District namely Na Sak, Chang Nua, Sob Pad, Ban Dong, and Mae Moh have possessed a multitude of tourism resources which can be developed into a sustainable tourist spot with effective management. Therefore, EGAT offered a fund to the Upper Northern Research Administration Network (UNRN), Chiang Mai University to conduct this research. The study has made Mae Moh District well known as an amazing tourist attraction and has generated more income from tourism of all levels in the area and upgraded the quality of life of the local people. Moreover, it has created the awareness of the community in the value of the native land. Careful management is provided to preserve and develop the areas with sustainability for the benefits of the next generation.
Activity of each sub-district: brainstorming in tourism management with participation of the community in Mae Moh District, Lampang Province
Study team and community members participated in drafting the tourist routes and tourism calendar in Mae Moh District, Lampang Province
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Example of tourism routes in Mae Moh Sub-district, Mae Moh District, Lampang Province
The Study of Potential Renewable Energy Model for Operation by Community by Kasetsart University EGAT’s Renewable Energy Development Plan is a tool in mobilizing the renewable energy policy of Thailand. The objective of the plan is to support the development of renewable energy of each community. EGAT provided a fund for Kasetsart University to conduct a study project on “Potential Renewable Energy Model for Operation by Community� in order to find ways to develop renewable energy in completeness by using local resource together with the local technology and wisdom which can be extended further on a continuous basis. The study emphasizes the participation of the model community in accordance with the energy planning process for the community. The project activities consist of building mutual understanding with the community, establishing a teamwork, collecting energy information in the local area, evaluating data to prepare the energy position, providing the energy data to the community, making study visits to places dealing with sustainable energy technology of interest to the community, brainstorming in order to prepare energy plan at the community level, organizing public hearing on the energy plan, implementing the plan, and preparing a summary of the lesson learned. From the study, an energy plan of the community and a renewable energy model appropriate for the local area are obtained. The plan is able to be actually implemented together with the evaluation of the cost and benefit of the project in terms of the economic and social point of view and the environment according to the social profits gained from the investment.
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121 Program Development for High Voltage Substation Performance Evaluation by King Mongkut’s University of Technology North Bangkok High voltage substation is a valuable asset of EGAT and is essential for the stability and reliability of the electricity transmission system. As the main equipment and the substation will be aging with time and the usage, a number of equipment and substations will require a lot of maintenance and improvement cost in the future. EGAT provided a fund to King Mongkut’s University of Technology North Bangkok to conduct a study on “Program Development for High Voltage Substation Performance Evaluation”. The result of the study is used as a tool in decision-making for the appropriate measure and budget allocation for the prioritization of the work on maintenance and renovation of the substations. A user-friendly information program developed from the study is used as a center of up to-date information, knowledge, and expertise which serves as the decision support tools. In short, the study will provide: 1. A database on high voltage substations which is a collection of up-to-date data, knowledge, and experiences of the experts organized in a systematic way and supported with the rationale. The information is provided on a user-friendly information system which can be updated easily. 2. A program to evaluate the performance of the high voltage substations and their main equipment to ensure the safety of the substations for EGAT personnel and property 3. A program to evaluate the amount of work and the urgency of maintenance and renovation of the substations enabling EGAT to conduct an appropriate improvement of its substations, technically and economically
Criteria for evaluation of performance of main equipment
122 Reduction of Sulfate Contamination in Mae Moh Mine Drainage by Using Red Clay as Covering Material by EGAT EGAT is responsible for the production and transportation of lignite to be used as fuel in electricity generation in Mae Moh Power Plant. The mine pit and overburden area covers a large area of approximately 58 square kilometers. During the rainy season, the soil and dirt from lignite are carried by the rainwater to the water source. The drainage water has a comparatively higher contamination than natural water in general, particularly of sulfate. As sulfate is a main component of the total dissolved solids (TDS) in the drainage water of the mine, the reduction of sulfate, therefore, can significantly reduce the amount of TDS. A fund for the project was given to the Mae Moh Mine Planning and Management Division to find the type of soil and coal in the mine having a high potential in dissolving sulfate and to find the possibility of using red clay as covering material in the reduction of the sulfate in the water. From the result of the study, the type of the soil or coal which is the source of sulfate and the efficiency of the red clay in soil covering to reduce the amount of sulfate are known. The information obtained from the study is used in the mining planning to prevent the solution of sulfate at the origin and to enhance the water management of Mae Moh Mine in the future.
Study of the covering of the soil or coal which is the origin of sulfate with red clay
Covering of the slope of south-west pit with red clay
Covering of the final slope with red clay
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Organization and Human Resource Development Human Resource Management EGAT values its employees as the vital resource for the growth of the organization. Its human resource management has emphasized building good, professionally competent, and happy employees with loyalty to the organization. In 2014, EGAT continued to promote and encourage the employees to work with transparency, honesty, responsibility and accountability, consideration for others, and self-development to uphold EGAT’s corporate culture: “Loyalty, Striving for Excellence, and Embracing Good Ethics” which would lead the organization towards its goal in becoming national pride. In addition, for the purpose of supporting the recruitment of EGAT employees and supporting educational development, EGAT has been providing undergraduate scholarship to the general public and offering those who become EGAT employees more scholarships for further studies.
Human Resource Development As employees have been considered a valuable factor in the mobilization of the organization to achieve its vision as the top quartile in electricity business, EGAT has a policy to develop the employees of all levels and all functions, both in technical matter which is the main knowledge and special skills as well as other areas such as management, quality of life development, ethics, and virtues. The purpose of human resource development is to promote EGAT employees to be competent, ethical, happy, responsible and accountable, and loyal to the organization. Moreover, EGAT employees have a chance to attend training organized locally and aboard. EGAT also supports development of human resource by providing scholarship for a master’s degree and a doctorate so that the obtained knowledge will be used in organization development to cope with future change. In 2014, EGAT’s employee development programs were designed with a variety of development approaches focusing the continued study and self- development. Moreover, Individual Development Plan (IDP) technique was used from top management to lower management levels and would include all employees in the future. EGAT also developed the competency of new generation employees who were essential in driving EGAT to become a leading organization in power plant management. Moreover, EGAT was mobilized to become a “learning organization” through knowledge management activities.
Information Technology Management EGAT’s Information Technology Committee is responsible for laying down policy, rules, and regulations. The committee also considers and follows up the results of operations and the project implementation to increase the efficiency and effectiveness in responding to the need of all stakeholders through the implementation of the International Standard on Corporate Governance of Information Technology (ISO/IEC 38500). This standard controls and directs the IT management of EGAT to be appropriate, reliable, secure, and correct for continual use, available for need, and compliant with the law. The IT Management is beneficial for the current and future operation of EGAT and helps to support the aim of EGAT to be a top quartile in global power business as stated in the EGAT’s Corporate Strategic Plan (2015-2025).
EGAT has directed its efforts in aligning its operation procedures to comply with the international standards. On January 31, 2014, EGAT was certified to be in compliance with the International Standard on Software Engineering (ISO/IEC 29110). On October 13, 2014, EGAT was also certified as complying with the International Standard on Information Security Management (ISO/IEC 27001:2013) covering IT services both in EGAT’s Head Office and its backup sites. EGAT has followed the strategies as indicated in the EGAT Information and Communication Technology (ICT) Master Plan (2013-2017). The improvement has been made to ensure that EGAT’s work plans are initiated efficiently and lead to successfully delivery of business operations. The following key ICT strategies are highlighted as:
Strategy 1 Developing EGAT’s ICT professionals in terms of quality and quantity to create, produce, and use ICT in an efficient, effective, ethical, and discreet manner
Strategy 2 Strengthening EGAT’s ICT governance
Strategy 3 Developing EGAT’s ICT infrastructure
Strategy 4 U s i n g I C T t o p r o m o t e g o o d governance in EGAT’s administration and services
Strategy 5 Using ICT to build EGAT’s sustainable competitiveness
Give...
Give
... happiness to Thai society. It is the happiness from having been able to assist the underprivileged people and to give something back to the society. The EGAT personnel will always be aware that their mission in electricity generation is a way of giving happiness to the Thai society.
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Corporate Social Responsibility EGAT has given importance to the social and environmental development in parallel with the development of power source and transmission system. CSR is considered to be an integral part of EGAT business which supports its sustainable growth. The activities of CSR in process and CSR after process have been carried out in compliance with the international standards to get acceptance of all sectors under the participatory process coupled with the sustainable development of quality of life and the environment.
Community Relations in the Power Development Areas To encourage participation of all sectors, EGAT has implemented the participatory process through various activities as follows: 1. Building awareness and understanding of power development The objective of this activity is to create the understanding among the people of the increasing demand for electricity due to the growth and expansion of society which result in the necessity to build more power plants. Power development projects cover the following:
- North Bangkok Power Plant, Block 2
- Chana Power Plant, Block 2
- Mae Moh Power Plant, Units 4-7 (Replacement)
- Capacity expansion in the Southern Thailand (Krabi Province)
- Bang Pakong Power Plant, Units 1-2 (Replacement)
- South Bangkok Power Plant, Units 1-5 (Replacement)
- Coal power plant construction projects in Thepa District of Songkhla Province and in Trang and Chumphon Provinces, etc.
- Renewable power plants in Sikhio District, Nakhon Ratchasima Province and in Thap Sakae, Prachuap Khiri Khan Province
- The public communication areas concerning nuclear power plant in Kalasin and Ubon Ratchathani Provinces.
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2. Development of the communities’ quality of life The activity has been carried out with participation of all sectors with the objective of promoting various community activities to upgrade the quality of life of communities around the existing power plants and in the areas of new development projects as a continuous participatory process to sustainability. Such activities cover various aspects, i.e. education, sports, religion, arts, custom and local tradition, health and sanitation, fishery, occupational promotion including primary job and additional job, and provision of marketplace. Training in public disaster, fire prevention, and assistance to the underprivileged people are also provided. 3. Environmental conservation EGAT promotes public participation and takes part in activities of all sectors in building awareness and recognition of environmental conservation through the campaigns based on the royal initiative projects on natural resources and environmental conservation as a guideline, i.e.
Promotion of forest conservation EGAT in collaboration with the Protected Area Regional Office 9 (Ubon Ratchathani) has implemented the reforestation project “Bringing Back Siamese Rosewood to Southern Isarn” in the protected area of 1,000 rais located in Ubon Ratchathani, Si Sa Ket, and Surin Provinces
Promotion of forest and environment conservation in the religious sites. EGAT has participated with the community in increasing the green areas and improving the environment in the religious places around the North Bangkok Power Plant in Bang Kruai District, Nonthaburi Province by planting trees and taking care of them. Examples are Wat Tanode in an area of 4 rais and Wat Bang-O in an area of 2 rais.
Promotion of coastal resource conservation EGAT has cooperated with the community in Nuea Khlong District, Krabi Province in restoring the mangrove forest and increasing the number of fish larvae. This is to build up participation and awareness in the importance of coastal resource restoration and conservation. The activity includes the promotion of making artificial corals, establishing crab bank, and the release of wing shells, etc.
Promotion of environmental conservation EGAT has participated with the community in using the effective microorganism (EM) to protect the environment. The activity includes the training in using EM in the power development areas such as in Krabi, Chumphon, Nakhon Sawan, Ubon Ratchathani, Kalasin, Nonthaburi, and Nakhon Ratchasima. Moreover, EGAT has cooperated with the community around the North Bangkok Power Plant in the implementation of the project “Beautiful Canal, Clear Water” by providing training and establishing a learning center.
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Environmental Activity for Sustainable Development
In 2014, the activities of EGAT in environmental protection as a whole focused on environmental management for sustainable development and the determination to become an organization with social and environmental responsibility. Within the policy framework in social and environmental responsibility, the achievements of EGAT in environmental protection in 2014 are as follows:
EGAT’s air quality monitoring center
Public hearing process
Environmental impact assessment For the Environmental Impact Assessment (EIA) of EGAT new power projects in 2014, 6 projects were approved by the Office of Natural Resources and Environmental Policy and Planning, namely:
- Bang Pakong Power Plant, Block 5
- Mae Moh Power Plant, Units 4-7 (Replacement)
- Mae Moh Lignite Mine Project, (Concession Request No. 14 - 36/2553 in Mae Moh District, Lampang Province)
- Project of 230 kV Grid Network of Ayutthaya 4 - Sikhio 2 (additional part through the conservative area)
- Project of Improvement of 115 kV Grid Network of Krabi - Lampura (additional part through the conservative area) Furthermore, 11 projects are in the EIA process.
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Environmental quality monitoring EGAT has continuously monitored the quality of the environment as a result of the operation in electricity generation in terms of water quality, water ecology, ambient air quality, air quality emitted from the stack, noise level, electromagnetic field, and waste. This is to prevent various impacts which may occur from the operation to comply with the limit specified in the standards which are enforced by the law and to improve the environmental quality as a whole.
Air quality monitoring in the power plant site
Water quality monitoring in the power plant site
Environmental network activities Environmental network activities have been established among the community around the following power plants:
- Wang Noi Power Plant in Ayutthaya Province
- Chana Power Plant in Songkhla Province
- North Bangkok Power Plant in Nonthaburi Province
- Tab Sakae Solar Plant in Prachuap Khiri Khan Province
The environmental network activities provide communities around the power plants particularly the youth with understanding and knowledge in initial inspection of air and water quality. The network members acquire knowledge from the practice. EGAT aims at building up better understanding and closer link between the local eco-system and EGAT power plants.
Environmental youth network in Thap Sakae District
Environmental youth network in Wang Noi District
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Participation and public hearing of the stakeholders In 2014, EGAT organized the public hearings of the community around the sites of the new power projects, namely :
- Project of Improvement of 115 kV Grid Network of Krabi - Lampura (additional part through the conservative area)
- Project of 230 kV Grid Network of Ayutthaya 4 - Sikhio 2 (additional part through the conservative area)
- Project of 500 kV Network of Loei 2 - Khon Kaen 4 (additional part through the conservative area)
- Downstream Hydropower Plant, Chulabhorn Dam, Chaiyaphum Province
- Bang Pakong Power Plant, Block 5, Chachoengsao Province
- Bang Pakong Power Plant, Units 1-2 (Replacement), Chachoengsao Province
- Mae Moh Power Plant, Units 4-7 (Replacement), Lampang Province
- South Bangkok Power Plant, Units 1-5 (Replacement), Samut Prakan Province
- Capacity expansion of Krabi Power Plant and pier for coal transfer to Krabi Power Plant, Krabi Province
- Thepha Coal Power Plant and pier for coal transfer to Thepha Power Plant, Songkhla Province
Public hearing of Ban Khlong Rua Port, Krabi
Public hearing of Thepha Coal Power Plant, Songkhla
Management of the greenhouse gas In 2014, EGAT participated in the pilot project “Furthering the Result of the Promotion of Carbon Footprint in the Industrial Sector� for 4 power plants, namely :
- Wang Noi Power Plant, Blocks 1-3, Ayutthaya Province
- Chana Power Plant, Block 1, Songkhla Province
- Krabi Power Plant, Krabi Province
- Bang Pakong Power Plant, Block 5, Chachoengsao Province
133
Green house gas reduction certificate to Krabi Power Plant
Green house gas reduction certificate to Bang Pakong Power Plant, Block 5
In the voluntary reduction of greenhouse gas by international mechanism under the Kyoto Protocol, EGAT has strengthened the energy efficiency of Mae Moh Power Plant through retrofitting the turbines Unit 10-11 with traceability test to apply to the CDM Executive Board (CDM EB) for certification. This project has been recognized from UNFCCC as the largest CDM in Thailand and has the largest carbon credit per year in the world. Moreover, EGAT has implemented Clean Development Mechanism (CDM) which consists of 8 projects for renewable energy. It is estimated that they will be able to reduce the greenhouse gas by 201,893 tCO2/year. For the voluntary greenhouse gas reduction according to the Thai standard (Thailand Voluntary Emission Reduction Program : T-VER), 2 prototype programs are the Downstream Hydropower Plant of Naresuan Dam, Phitsanulok Province and the Lam Ta Khong Wind Turbine Power Plant, Nakhon Ratchasima Province. The two projects have been registered and have passed traceability test and certified by the Greenhouse Gas Management Organization (Public) as the T-VER projects which have been able to reduce greenhouse gas by 16,914 tons carbon dioxide equivalent (tCO2e).
T-VER signing ceremony
134
Environmental management system in accordance with ISO 14001 To build confidence for the community in environmental management of EGAT, ISO 14001 has been implemented in all units of EGAT involving power generation. In 2014, 27 power plants, dams, and coal mines of EGAT were successfully certified by a Certification Body (CB). Furthermore, ISO 14001 has been applied in EGAT substations to ensure the complete implementation of international standard on environmental management from power generation to power transmission.
Wang Noi Power Plant received ISO 14001 certification
Environmental and social management of the power plants In 2014, EGAT strictly complied with the relevant law and legal provision concerning environment. There was focus on the Environmental Impact Assessment (EIA), Social Impact Assessment (SIA), and Health Impact Assessment (HIA). ISO 14001 and the Thai Industrial Standard on Occupational Health and Safety (TIS 18001) were implemented from the early phase of power plant construction up to the operation phase coupled with the regular organization of activities to increase participatory process and public hearings.
Social Activities
Reforestation project to commemorate the 60th Birthday Anniversary of Her Royal Highness Princess Maha Chakri Sirindhorn On the auspicious occasion of the 60th Birthday Anniversary of Her Royal Highness Princess Maha Chakri Sirindhorn on April 2, 2015, EGAT has prepared the “Reforestation Project to Commemorate the 60th Birthday Anniversary of Her Royal Highness Princess Maha Chakri Sirindhorn�. According to the project, reforestation will be carried out during 2014 - 2015 covering an area of 13,000 rais consisting of the following: Headwater and community reforestation in an area of 5,500 rais covering
- the Mae Charim National Park and Doi Phu Kha National Park in Mae Charim District and Pua District respectively
- Doi Phu Kha National Reserve and Pa Daeng Forest in Bo Kluea District
- National Reserve of Nam Yao Forest and Pa Nam Suad Forest in Ban Luang District, Nan Province
135 Mangrove forest covering an area of 1,000 rais
- Chumphon Archipelago National Park, Chumphon Province
- Nakhon Si Thammarat Province
The total number of trees to be planted is 3,620,000. The trees planted each year will be taken care of for 2 consecutive years. Local participation of all sectors including community and public organizations are mainly required.
Reforestation project to commemorate the 60th Birthday Anniversary of HRH Princess Sirindhorn
EGAT CSR camp EGAT CSR Camp has an aim to encourage university students to participate in CSR activities during their leisure time through the existing volunteer camps of each university. The CSR Camp also focuses on the participation of all sectors. During the 6 consecutive years in which EGAT has carried out this activity, the number of volunteers including students and communities is more than 5,000. Today, there is a network of more than 2,000 students who have participated in EGAT CSR Camp in all parts of the country including the North, Central Part, the South, and the Northeast. There is also a public relations center in each part of the country to give information on the project of each year.
Biological way of life for sustainable development project This project has been implemented by EGAT since 1999 based on the recommendation of Her Majesty the Queen and the initiative of His Majesty the King on the Philosophy of Sufficiency Economy. The project promotes the use of the Effective Microorganism (EM) instead of chemicals in everyday life in agriculture, fishery, livestock development, and environmental conservation. The network is expanded to the community near EGAT power plants and along the transmission lines. Nowadays there are 21 prototype communities in sufficiency economy throughout the country. The prototype community serves as a learning center and a center for disseminating relevant knowledge through lectures, demonstration, and exhibitions. Moreover, EGAT has signed a memorandum of understanding with the Office of Vocational Commission in furthering the activities to 92 technological and agricultural colleges, fishery colleges, vocational colleges as well as technological and management colleges in the country.
136
Support for Thai weightlifting athletes EGAT has given continuous support to the Thai Amateur Weightlifting Association since 2004. In 2014, the Thai athletes developed their skill to the world class level and were awarded gold, silver, and copper medals in the 3 international and world competitions. In the 2014 world weightlifting competition, the Thai athletes won 1 gold medal, 2 silver medals, and 6 copper medals. Moreover, EGAT gave the support to the 3 programs in the 2014 international weightlifting competition for the royal trophy.
A decade of the EGAT Foster Parents Project for children in the border area The year 2014 was a decade of the EGAT Foster Parents Project for children in the border area. The objective of the project is to provide an opportunity for children in the Thailand - Myanmar border in Wiang Haeng District of Chiang Mai Province to continue their study to the university level. Through the project which has been implemented since 2004, campaigns have been made to invite volunteers to become foster parents and to give scholarship to poor children and families. Up to present, 21 scholarships have been granted, and 32 children have completed the university degree and returned to work in their hometown and nearby areas. Today, there are 168 students under the project studying in high schools up to the graduate level.
21st scholarship granting ceremony, EGAT Foster Parents Project
137
Demand Side Management The year 2014 was the beginning of the 3rd decade of EGAT Demand Side Management. This is the mission for the society that the Demand Side Implementation Division and Demand Side Management and Planning Division, the units which are in the line of Deputy Governor - Corporate Social Affairs have proudly achieved continuously. With the strong intention to promote the reduction of unnecessary energy consumption together with the strategic plan for achievement, EGAT has adhered to this measure throughout 20 years. EGAT has also complied with Energy Conservation Plan and the Energy Conservation Promotion Act, B.E. 2535 (1992). With this, EGAT has achieved higher energy conservation than the set target. In 2014, the main activities are as follows:
Support and development of the markets for the high efficiency electrical appliances EGAT has put the energy-saving Label No.5 for two more high performance electrical appliances, namely induction cooker and microwave. A memorandum of understanding has also been signed by EGAT and the entrepreneurs to put the Label No.5 for two more products, namely television and electric kettle. Moreover, EGAT has requested cooperation from the entrepreneurs of air-conditioners with No.5 labeling to change the standard for testing, from energy efficiency ratio (EER) of air-conditioners with fix-speed compressor to seasonal efficiency ratio (SEER) for air-conditioners with inverter compressor so as to be able to put Label No.5 on the products in 2015.
Promotion of the markets for Label No.5 appliances EGAT has signed a memorandum of understanding with the producers and retailers to sell, at reasonable price, Label No.5 LED tube, bulb, and treaded E27 of the 5 watt and 7-8 watt placed in EGAT boxes. Moreover, an international exposition for lighting equipment (LED Expo Thailand 2014) was organized by EGAT to expand the market for energy saving appliances. Furthermore, cooperation has been made with monetary institutions to promote distribution of Label No. 5 energy saving appliances.
138
Building confidence for consumers, alliances, and stakeholders EGAT has cooperated with public sector, business and industrial sector as well as household sector through the project of promotion of efficient energy saving. EGAT has signed a memorandum of understanding with the Royal Development Study Centers under the Office of the Royal Development Project Boards on the project of promotion of efficient energy saving. A pilot project has been implemented at Kung Krabaen Bay Royal Development Study Center to encourage the use of LED lighting equipment among the public sector. LED street lamps have been used in EGAT’s offices, dam sites, and power plants and will be extended to other organizations in the future. Through the pilot project of Standard Offer Program (SOP) which is a promotion measure in accordance with the 20 year-energy saving plan of the Ministry of Energy, EGAT has conducted a study on the energy reduction in business sector and industrial sector. Moreover, cooperation has been made with the alliances, stakeholders, producers, importers, and suppliers of Label No.5 products as well as public sector, educational institutions, and mass media.
Public relations, campaigns, and activities EGAT has produced and distributed various forms of media through mass media and personal communication. Campaigns and activities are organized in the target area to provide knowledge to consumers, to change their attitude and behavior, and to increase their awareness in energy saving as well as effective and sustainable use of energy.
139
Strategic adjustment Through the Project “Upgrading Green Classroom to Green School to Create Energy Saving Network”, EGAT has developed the project “Green Classroom” to “Green School”. In 2014, 112 schools successfully passed the assessment as “Green Schools”. To promote the energy management and reduction of carbon dioxide in a systematic and tangible manner in the educational institutions, a contest “Low Carbon School” was organized by EGAT. Forty-five schools won the contest, and the awards were given in the celebration of the 45th anniversary of EGAT’s establishment.
Achievements The success of demand side management which has linked the strategic planning with the achievement was possible with the cooperation with the alliances from the public and private sectors which have contributed to the higher energy saving than the set target. The Label No.5 Project is the basis in the establishment of the Minimum Efficiency Performance Standard (MEPS) which is a legal provision and is already effective for refrigerators and air-conditioners. EGAT’s Label No.5 Project is well-known locally and abroad. The tangible result of the project from 1993 - 2014 is the reduction of energy consumption of 3,538.8 MW and reduction of carbon dioxide emission of 12.3 million tons.
140
Events
During her royal mission in Kanchanaburi Province on February 20-21, 2014, Her Royal Highness Princess Maha Chakri Sirindhorn stayed overnight at the royal residence of Vajiralongkorn Dam at Thong Pha Phum District in Kanchanaburi Province
141
Her Royal Highness Princess Maha Chakri Sirindhorn stayed overnight at the royal residence of Sirindhorn Dam in Ubon Ratchathani Province during her royal mission in the Northeast including Ubon Ratchathani Province on May 29-30, 2014.
142
Air Chief Marshal Kamthon Sindhavananda, Privy Councilor, presided over the exhibition “A Story from the Forest, Tracing Back the 20-Year-Reforestation in Honor of Their Majesties” held at Sky Hall, 3rd Floor, Central Plaza, Ladprao on November 7, 2014.
EGAT Governor, Mr. Soonchai Kumnoonsate, on behalf of Mae Moh Power Plant, received the award “Thailand Quality Class (TQC) 2013” held in the Thailand Quality Award 2013 on March 27, 2014 at Makhawan Rangsan Hall, Thai Army Club.
143
The opening ceremony of the 785.6 MW Wang Noi Power Plant Block 4 in Ayutthaya Province was held on May 20, 2014. The power plant was built to increase security of the electricity system in the Central Thailand.
EGAT organized an international exposition on electrical technology and LED products “LED Expo Thailand 2014� which was the largest of such events in ASEAN. The exposition was held on May 22-24, 2014 at IMPACT Exhibition and Convention Center at Muang Thong Thani in Nonthaburi Province.
144 On July 1, 2014, EGAT in collaboration with Chiang Mai Province and 33rd Military Circle organized the first community reforestation under the EGAT Reforestation Project in Commemoration of the 60th Birthday Anniversary of Her Royal Highness Princess Maha Chakri Sirindhorn. The reforestation covers an area of 1,200 rai in Ban Aen Sub-district, Doi Tao District, Chiang Mai Province.
EGAT celebrated the commercial operation of the 782 MW Chana Power Plant Block 2 in Songkhla Province on July 31, 2014. The Power Plant was constructed to cope with the increasing demand for electricity of the Southern Thailand.
EGAT’s Chana Power Plant Block 2 was awarded the “Asian Power Awards 2014” of the Silver Level in the category of Gas Power Project of the Year on September 11, 2014 at Shangri-La Hotel, Kuala Lumpur, Malaysia. The power plant, moreover, was considered to be “one of the most eco-friendly power plants in Asia.”
145 EGAT received “Thailand Energy Awards 2014” from the Prime Minister, General Prayuth Chan-ocha for having promoted energy conservation and renewable energy in the categories of energy conser vation promotion organization and website. The award presentation was held on November 21, 2014 at Santi Maitri Building, the Government House.
Mr. Soonchai Kumnoonsate, EGAT Governor, received the “2014 Outstanding State Enterprise Awards” from the Prime Minister, General Prayuth Chan-ocha. Two awards were presented, namely “State Enterprise of Pride” and “Outstanding Innovation” for the innovation of Remote Terminal Unit (RTU). The award presentation was held on November 24, 2014 at Royal Jubilee Ballroom, Challenger Hall, IMPACT Exhibition and Convention Center at Muang Thong Thani in Nonthaburi Province.
EGAT was presented the NACC Integrity Awards 2013 from the Office of the National Anti-Corruption Commission. The award presentation was held on December 8, 2014 at Nonthaburi 1 Room, Office of the National Anti-Corruption Commission in Nonthaburi Province.
146
Key Statistical Data System Installed Generating Capacity 2014 2013 Increase/ Type of Power Plant (Decrease) MW Percentage MW Percentage Percentage EGAT’s Power Plants Thermal
3,647.00
10.52
4,699.00
13.95
(22.39)
Combined cycle
8,382.00
24.18
6,866.00
20.39
22.08
Hydropower
3,443.74
9.93
3,435.74
10.20
0.23
Diesel
4.40
0.01
4.40
0.01
-
Renewable energy
4.99
0.02
4.99
0.02
-
15,482.13
44.66
15,010.13
44.57
3.14
Subtotal
Purchase from Domestic Private Power Plants IPPs
13,166.70
37.98
12,741.69
37.83
3.34
SPPs
3,614.60
10.43
3,524.60
10.46
2.55
Neighboring Countries Laos
2,104.60
6.07
2,104.60
6.25
-
300.00
0.86
300.00
0.89
-
Subtotal
19,185.90
55.34
18,670.89
55.43
2.76
Grand Total
34,668.03
100.00
33,681.02
100.00
2.93
EGAT-TNB Interconnection System
147
Monthly Peak Generation Requirement
Monthly Peak Generation Increase/(Decrease) Requirement (MW)
2014
Month
2013
MW Percentage
January
22,556.93
23,390.78
(833.85)
(3.56)
February
23,658.59
24,589.40
(930.81)
(3.79)
March
26,105.94
26,422.97
(317.03)
(1.20)
April*
26,942.10
26,324.61
617.49
2.35
May
26,473.30
26,598.14
(124.84)
(0.47)
June
26,253.29
25,038.04
1,215.25
4.85
July
25,017.19
24,568.41
448.78
1.83
August
24,623.74
23,941.68
682.06
2.85
September
24,785.24
24,363.69
421.55
1.73
October
24,181.13
23,741.50
439.63
1.85
November
24,961.80
24,251.18
710.62
2.93
December
24,493.26
22,905.22
1,588.04
6.93
26,942.10
26,598.14
343.96
1.29
Yearly Peak Generation Requirement
* 2014 peak generation requirement occurred on April 23, 2014 at 14.26 hours * 2013 peak generation requirement occurred on May 16, 2013 at 14.00 hours
Monthly Energy Generation Requirement Month
Monthly Energy Generation Increase/(Decrease) Requirement (Million kWh) 2014
2013
Million kWh
Percentage
January
12,709.93 13,644.32 (934.39) (6.85)
February
13,010.96 13,476.66 (465.70) (3.46)
March
April
15,085.20 14,674.50 410.70 2.80
May
16,424.23
June
15,462.91 14,793.29 669.62 4.53
July
15,457.62 14,748.06 709.56 4.81
August
15,210.71 14,857.65 353.06 2.38
September
15,005.86 14,403.03 602.83 4.19
October
15,046.24 14,572.38 473.86 3.25
November
14,709.83 14,176.28 533.55 3.76
December
13,637.50 12,399.89 1,237.61
Total
15,819.48 15,730.69 16,058.70
88.79 0.56 365.53
177,580.47 173,535.45 4,045.02
2.28
9.98 2.33
148
Gross Energy Generation and Purchase (by type of fuel)
2014 2013 Increase/ Source (Decrease)
Million kWh
Percentage
Million kWh
Percentage
Percentage
EGAT’s Power Plants
Natural gas
Lignite
49,356.37
27.79
48,234.06
27.79
2.33
17,347.47
9.77
17,109.59
9.86
1.39
Hydropower
5,141.09
2.90
5,390.33
3.11
(4.62)
Fuel oil
1,428.03
0.81
1,201.20
0.69
18.88
Diesel oil
56.70
0.03
173.24
0.10
(67.27)
Renewable energy
-
11.05
41.55
1.69
EGAT’s Total Generation
6.13 73,335.79
- 41.30
5.52 72,113.94
Purchase from Domestic Private Power Plants - IPPs
Natural gas
Coal
Fuel oil
49,057.51 16,334.21
27.63 9.20
51,518.37 14,278.00
29.69
(4.78)
8.23
14.40
320.48
0.18
195.23
0.11
64.16
Diesel oil
64.78
0.04
189.71
0.11
(65.85)
Subtotal
65,776.98
37.05
66,181.31
38.14
(0.61)
- SPPs
Natural gas
Coal
20,145.50
11.34
17,252.64
9.94
16.77
2,030.24
1.14
1,999.15
1.15
1.56
Hydropower
22.94
0.01
29.20
0.02
(21.44)
Fuel oil
25.91
0.01
28.08
0.02
(7.73)
Biomass
3,103.66
1.64
8.88
Renewable energy
871.51
Subtotal 26,199.76
1.75
2,850.55
0.49
508.37
0.29
71.43
14.74
22,667.99
13.06
15.58
Neighboring Countries - Laos - Malaysia
Subtotal
12,122.90
6.83
12,427.54
7.16
(2.45)
145.04
0.08
144.67
0.09
0.26
12,267.94
6.91
12,572.21
7.25
(2.42)
Total Energy Purchase
104,244.68
58.70
101,421.51
58.45
2.78
Grand Total
177,580.47
100.00
173,535.45
100.00
2.33
149
Energy Sales
2014 2013 Increase/ Customer (Decrease)
Million kWh
Metropolitan Electricity Authority (MEA) Provincial Electricity Authority (PEA) Direct customers Standby power supply Electricité du Laos (EDL) Tenaga Nasional Berhad (TNB) - Malaysia Electricité du Cambodge (EDC) Other minor customers Total
Percentage
Million kWh
Percentage
Percentage
50,043.56
28.83
49,623.63
29.27
0.85
120,200.48
69.24
116,793.35
68.89
2.92
1,593.17 169.44 1,221.35 22.36
0.92 0.10 0.70 0.01
1,635.94 98.04 953.55 4.22
0.97 0.06 0.56 -
(2.61) 72.83 28.08 429.86
350.07
0.20
416.98
0.25
(16.05)
3.38
-
4.61
-
(26.68)
173,603.81
100.00
169,530.32
100.00
2.40
Average Energy Sales Price
2014 2013 Increase/ Customer (Decrease) Baht/kWh Baht/kWh Percentage
Metropolitan Electricity Authority (MEA)
3.17
3.04
4.50
Provincial Electricity Authority (PEA)
3.10
3.02
2.60
Direct customers
3.30
3.18
3.76
Standby power supply
5.46
6.48
(15.73)
Electricité du Laos (EDL)
1.60
1.64
(2.46)
Tenaga Nasional Berhad (TNB) - Malaysia
8.40
7.28
15.31
Electricité du Cambodge (EDC)
3.78
3.65
3.49
Other minor customers
2.33
2.11
10.27
Overall Average Sales Price
3.12
3.03
3.17
150
Transmission System
Voltage Level (kV)
2014
2013
Line Length Number of Transformer Capacity Line Length Number of Transformer Capacity (Circuit-Kilometers) Substations (MVA) (Circuit-Kilometers) Substations (MVA)
500
4,167.17 11 20,849.99 4,167.17 11 20,849.99
230
14,605.12 71 52,460.04 14,505.65 71 51,160.04
132
8.70 - 133.40 8.70 - 133.40
115
13,703.93 131 14,629.99 13,660.65 130 14,617.49
69
19.00 - - 19.00 - -
300 (HVDC)
23.07 - 388.02 23.07 - 388.02
Total
32,526.99
213
88,461.44
32,384.24
212
87,148.94
Fuel Consumption
Type of Fuel
2014
2013
Increase/(Decrease)
Percentage
Natural gas (million cubic feet)*
415,000.40
412,701.70
0.56
377.22
309.50
21.88
Lignite (million tons)
20.40
60.30
(66.17)
Diesel oil (million liters)*
17.02
16.90
0.71
Fuel oil (million liters)*
* Excluding gas and oil supplies provided for REGCO, KEGCO, and RGCO
151
Reservoir Operation Operation 2014 2013 Increase/ (Decrease) Percentage Total reservoir capacity (million cubic meters) *
62,427
62,427
-
Total storage at year end (million cubic meters) *
39,980
45,908
(12.91)
Total water inflow (million cubic meters) *
27,241
37,532
(27.42)
Total water release (million cubic meters) *
- Passed through generators
29,865
32,145
(7.09)
- Extra release through spillways
485
507
(4.35)
- Extra release for irrigation **
775
460
68.52
- Evaporation
3,121
3,172
(1.61)
Total water release
34,246
36,284
(5.62)
466
196
138.00
5,139
5,390
(4.66)
5.87
5.10
15.10
Water pumped up into the upper reservoir (million cubic meters) ** Generated energy (million kWh) *** Water used for energy generation (cubic meters/kWh)
* Excluding Pak Mun Dam, Lamtakhong Dam, and other mini hydropower plants ** Water pumped up into Bhumibol Dam, Srinagarind Dam, and Lamtakhong Dam
*** All of EGAT’s hydropower plants
Workforce
Educational Level
at December 2014
at December 2013
Increase/
(Decrease) Number of Number of Persons Percentage Persons Percentage Percentage
Bachelor’s Degree and Higher
8,084
33.59
7,869
34.28
2.73
Diploma/Higher Vocational Certificate
8,453
35.52
8,217
35.80
2.87
Vocational Certificate
2,882
14.25
3,055
13.31
(5.66)
Others
3,501 16.64 3,813 16.61 (8.18)
Total
22,920
100.00
22,954
100.00
(0.15)
152
Auditor’s Report (TRANSLATION) (TRANSLATION)
(TRANSLATION) AUDITOR’S REPORT AUDITOR’S REPORT
TO: THE BOARD OF DIRECTORS OF ELECTRICITY GENERATING AUTHORITY OF THAILAND TO: THE BOARD OF DIRECTORS OF ELECTRICITY GENERATING AUTHORITY OF THAILAND
The Office of the Auditor General of Thailand has audited the accompanying consolidated The Office of the Auditor General of Thailand has audited the accompanying consolidated financial statements of Electricity Generating Authority of Thailand and its subsidiaries and separate financial financial statements of Electricity Generating Authority of Thailand and its subsidiaries and separate financial statements of Electricity Generating Authority of Thailand, which comprise the consolidated and separate statements of Electricity Generating Authority of Thailand, which comprise the consolidated and separate statements of financial position as at December 31, 2014, and the related consolidated and separate statements statements of financial position as at December 31, 2014, and the related consolidated and separate statements of income, comprehensive income, changes in owners’ equity and cash flows for the year then ended, and a of income, comprehensive income, changes in owners’ equity and cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information. summary of significant accounting policies and other explanatory information. Management’s Responsibility for the Consolidated and Separate Financial Statements Management’s Responsibility for the Consolidated and Separate Financial Statements Management is responsible for the preparation and fair presentation of these consolidated and Management is responsible for the preparation and fair presentation of these consolidated and separate financial statements in accordance with Thai Financial Reporting Standards, and for such internal separate financial statements in accordance with Thai Financial Reporting Standards, and for such internal control as management determines is necessary to enable the preparation of the consolidated and separate control as management determines is necessary to enable the preparation of the consolidated and separate financial statements that are free from material misstatement, whether due to fraud or error. financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Auditor’s Responsibility The Office of the Auditor General of Thailand’s responsibility is to express an opinion on The Office of the Auditor General of Thailand’s responsibility is to express an opinion on these consolidated and separate financial statements based on the audit. The Office of the Auditor General of these consolidated and separate financial statements based on the audit. The Office of the Auditor General of Thailand conducted the audit in accordance with Thai Standards on Auditing. Those standards require that the Thailand conducted the audit in accordance with Thai Standards on Auditing. Those standards require that the Office of the Auditor General of Thailand comply with ethical requirements and plan and perform the audit to Office of the Auditor General of Thailand comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated and separate financial statements are free from obtain reasonable assurance about whether the consolidated and separate financial statements are free from material misstatement. material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated and separate financial statements. The procedures selected depend on the disclosures in the consolidated and separate financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the consolidated and auditor’s judgment, including the assessment of the risks of material misstatement of the consolidated and separate financial statements, whether due to fraud or error. In making those risk assessments, the auditor separate financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and considers internal control relevant to the entity’s preparation and สํ า นั ก ง า น ก า ร ต ร ว จ เ งิ น แ ผ่ น ดิ น สํ า นั ก ง า น ก า ร ต ร ว จ เ งิ น แ ผ่ น ดิ น Office of the Auditor General Office of the Auditor General
153
2 fair presentation of the consolidated and separate financial 2 statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of fair presentation of the consolidated and separate financial 2 statements in order to design audit procedures that the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of and presentation the reasonableness of accounting made bystatements management, as well as evaluating the overall fair of the consolidated andestimates separate financial in order to design audit procedures that the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used presentation of the consolidated and separate statements. are appropriate in the circumstances, but not financial for the purpose of expressing an opinion on the effectiveness of and the reasonableness of accounting estimates made by management, as well as evaluating the overall Thecontrol. Office An of the Auditor Generalevaluating of Thailandthebelieves that the audit evidence policies the Officeused of the entity’s internal audit also includes appropriateness of accounting presentation of the consolidated and separate financial statements. the General of Thailand has obtained is sufficient appropriate toas provide basis for thetheOffice of and Auditor the reasonableness of accounting estimates made byandmanagement, well asa evaluating overall The Office of the Auditor General of Thailand believes that the audit evidence the Office of the Auditor General of Thailand’sandaudit opinion. presentation of the consolidated separate financial statements. the Auditor General of Thailand has obtained is sufficient and appropriate to provide a basis for the Office of The Office of the Auditor General of Thailand believes that the audit evidence the Office of Opinion the Auditor General of Thailand’s audit opinion. the Auditor General of Thailand has obtained is sufficient and appropriate to provide a basis for the Office of In The Office of the Auditor General of Thailand’s opinion, the above mentioned consolidated the Auditor General of Thailand’s audit opinion. Opinion and separate financial statements present fairly, in all material respects, the consolidated financial position of In The Office of the Auditor General of Thailand’s opinion, the above mentioned consolidated Electricity Opinion Generating Authority of Thailand and its subsidiaries, and separate financial position of Electricity and separate financial statements present fairly, in all material respects, the consolidated financial position of Generating Authority Thailand, as at of December 31,opinion, 2014, and separate In TheofOffice of therespectively, Auditor General Thailand’s thetheir aboveconsolidated mentioned and consolidated Electricity Generating Authority of Thailand and its subsidiaries, and separate financial position of Electricity financial performance their consolidated and inseparate cash flows for the then endedfinancial in accordance and separate financial and statements present fairly, all material respects, theyear consolidated positionwith of Generating Authority of Thailand, respectively, as at December 31, 2014, and their consolidated and separate Thai Financial ReportingAuthority Standards.of Thailand and its subsidiaries, and separate financial position of Electricity Electricity Generating financial performance and their consolidated and separate cash flows for the year then ended in accordance with Generating Authority of Thailand, respectively, as at December 31, 2014, and their consolidated and separate Thai Financial Reporting Standards. financial performance and their consolidated and separate cash flows for the year then ended in accordance with Thai Financial Reporting Standards. (Signed) (Signed) (Signed)
Sirin Phankasem
(Sirin Phankasem) Sirin Phankasem Deputy Auditor General (Sirin Phankasem) Acting Auditor General Sirin Phankasem Deputy Auditor General (Sirin Phankasem) Acting Auditor General Deputy Auditor General Acting Auditor General
(Signed)
Adisorn Puawaranukroa
(Adisorn Puawaranukroa) (Signed) Puawaranukroa DirectorAdisorn of Financial Audit Office No. 8.
สํ า นั ก ง า น ก า ร ต ร ว จ เ งิ น แ ผ่ น ดิ น Office of the Auditor General สํMarch า นั ก 30, ง า น2015 ก า ร ต ร ว จ เ งิ น แ ผ่ น ดิ น Office of the Auditor General สํMarch า นั ก 30, ง า น2015 ก า ร ต ร ว จ เ งิ น แ ผ่ น ดิ น
(Adisorn Puawaranukroa) (Signed) Adisorn Puawaranukroa Director of Financial Audit Office No. 8. (Adisorn Puawaranukroa) Director of Financial Audit Office No. 8.
154
Financial Statements (TRANSLATION) -3-
ELECTRICITY GENERATING AUTHORITY OF THAILAND AND ITS SUBSIDIARIES STATEMENTS OF FINANCIAL POSITION AS AT DECEMBER 31, 2014 Unit : Baht Notes
Consolidated financial statement Dec 31, 14 Dec 31, 13 Jan 1, 13 (Restated) (Restated)
ASSETS CURRENT ASSETS Cash and cash equivalents
6.1
66,103,360,804
67,078,800,366
40,312,353,629
Temporary investments
6.2
28,946,395,753
37,068,694,151
13,769,278,699
Trade accounts receivable - others
6.3
63,221,065,071
55,891,616,198
47,819,131,996
Trade accounts receivable - related parties
6.4.1
2,538,509,983
3,087,652,761
2,196,855,857
529,599,717
6,529,895,779
8,483,838,778
7,205,349,921
Accrued revenue from electric energy sales according to automatic tariff adjustment (Ft) Other accounts receivable
6.5 6.6
7,471,081,125
Current portion of long - term loans to related parties Materials and supplies
6.7
13,384,008,145
13,103,841,970
62,500,000 12,631,918,829
Other current assets Derivative assets
6.8
Others Total current assets
-
121,136
-
1,807,346,034 183,471,766,915
132,196,442 185,376,361,519
93,362,218 130,620,646,928
NON - CURRENT ASSETS Investments in associates
6.9.3
19,261,669,210
18,547,823,537
16,620,335,211
Investments in jointly controlled entities
6.9.3
10,535,016,371
11,656,261,243
11,692,661,058
4,065,095,769
3,183,523,921
12,935,218,422
Other long - term investments Long - term loans to related parties
6.4.2
Finance lease assets
43,195,812
-
-
178,108,306,597
156,458,201,834
167,310,687,926
Property, plant and equipment
6.10
260,073,848,477
237,345,841,545
242,521,854,943
Work under construction
6.11
45,605,002,712
62,297,874,119
54,014,892,441
Goodwill
6.12
273,532,776
763,742,443
752,913,124
Other intangible assets
6.13
28,641,732,209
28,362,587,910
27,700,083,434
Land awaiting development
6.14
2,134,160,622
2,125,289,755
2,121,472,035
Deferred tax assets
6.15.2
51,617,195
15,825,297
13,540,580
6.16
3,055,012,105 551,848,189,855 735,319,956,770
3,293,403,202 524,050,374,806 709,426,736,325
7,062,730,872 542,746,390,046 673,367,036,974
Other non - current assets Total non - current assets TOTAL ASSETS
Notes to the financial statements are an integral part of these financial statements.
155
(TRANSLATION) -4ELECTRICITY GENERATING AUTHORITY OF THAILAND AND ITS SUBSIDIARIES STATEMENTS OF FINANCIAL POSITION AS AT DECEMBER 31, 2014 Notes
LIABILITIES AND EQUITY CURRENT LIABILITIES Trade accounts payable - others Trade accounts payable - related parties Surplus revenue from electric energy sales according to automatic tariff adjustment (Ft) Deferred revenue for electricity compensation Other accounts payable Short - term loans Accrued interest expenses Accrued remittance to the Ministry of Finance Accrued expenses Current portion of long - term loans Current portion of finance lease liabilities - Power plants Current portion of finance lease liabilities - others Other current liabilities Derivative liabilities Others Total current liabilities NON - CURRENT LIABILITIES Long - term loans from related parties Long - term loans Advance receive from related party Deferred tax liabilities Finance lease liabilities - Power plants Finance lease liabilities - others Employee benefit obligations Provision liabilities for mine reclamation Other non - current liabilities Total non - current liabilities TOTAL LIABILITIES OWNERS' EQUITY Contribution from the government Surplus from royalty on state property service Retained earnings Appropriated Capital expenditure appropriation Unappropriated Other components of owners' equity TOTAL EQUITY ATTRIBUTABLE TO EGAT NON - CONTROLLING INTERESTS TOTAL OWNERS' EQUITY TOTAL LIABILITIES AND OWNERS' EQUITY
Dec 31, 14
Consolidated financial statement Dec 31, 13 (Restated)
Unit : Baht Jan 1, 13 (Restated)
6.17 6.4.3
54,555,579,721 7,563,871,829
66,230,641,939 7,622,278,324
42,012,277,857 8,157,161,024
6.5 6.5
4,872,377,719 3,386,830,541 10,866,800,546 4,800,000,000 1,189,894,291 8,380,707,819 5,205,073,455 8,958,807,792 10,221,931,977 4,168,322
2,231,343,911 9,659,862,609 9,774,215,414 1,227,648,844 9,466,293,684 5,210,277,256 11,590,864,773 9,527,841,832 3,483,740
2,768,975,278 12,210,547,595 2,700,000,000 1,166,100,704 8,077,994,513 5,450,498,674 9,333,668,342 8,924,468,906 1,506,025
68,050,678 120,074,094,690
88,349,789 132,633,102,115
4,591,500 39,951,445 100,847,741,863
1,095,464,557 72,499,705,552 7,903,089 1,765,326,301 136,395,267,311 3,536,912 14,580,469,970 2,141,000,116 14,255,018,674 242,743,692,482 362,817,787,172
1,186,296,943 71,734,801,073 3,326,588,424 115,669,572,876 5,889,837 14,051,248,017 2,080,313,567 17,195,843,540 225,250,554,277 357,883,656,392
1,358,280,353 82,072,391,755 3,438,532,549 119,970,692,484 1,318,683 13,562,464,135 2,047,399,372 15,145,872,091 237,596,951,422 338,444,693,285
8,939,645,054 213,885,677
9,001,977,817 220,223,033
9,064,310,580 226,560,389
80,186,366,913 247,911,016,135 1,166,721,347 338,417,635,126 34,084,534,472 372,502,169,598 735,319,956,770 23,011,336,618.00
80,186,366,913 227,449,968,641 1,557,994,063 318,416,530,467 33,126,549,466 351,543,079,933 709,426,736,325 (7,342,781.00)
80,186,366,913 211,831,243,228 1,715,489,816 303,023,970,926 31,898,372,763 334,922,343,689 673,367,036,974 (4,569,894)
6.18 6.19 6.20
6.4.4 6.19 6.15.2 6.20 6.21 6.22 6.23
6.24
Notes to the financial statements are an integral part of these financial statements
(signed) Soonchai Kumnoonsate (Mr. Soonchai Kumnoonsate) Director and Governor
(signed) Chartchai Rojanaratanangkule (Mr. Chartchai Rojanaratanangkule) Deputy Governor - Account and Finance
156 (TRANSLATION) -5ELECTRICITY GENERATING AUTHORITY OF THAILAND AND ITS SUBSIDIARIES STATEMENTS OF FINANCIAL POSITION AS AT DECEMBER 31, 2014 Unit : Baht Separate financial statement Dec 31, 13 (Restated)
Notes Dec 31, 14
Jan 1, 13 (Restated)
ASSETS CURRENT ASSETS Cash and cash equivalents
6.1
55,120,091,945
59,171,134,233
31,843,250,055
Temporary investments
6.2
24,014,555,179
33,020,558,654
8,047,257,530
Trade accounts receivable - others
6.3
62,731,676,854
55,294,331,530
47,353,258,355
Trade accounts receivable - related parties
6.4.1
2,898,377,884
3,643,517,639
2,509,755,872
529,599,717
6,529,895,779
Accrued revenue from electric energy sales according to automatic tariff adjustment (Ft)
6.5
-
Other accounts receivable
6.6
7,054,532,164
7,982,861,760
6,536,839,712
Materials and supplies
6.7
10,725,339,295
10,533,246,348
10,414,636,705
6.8
162,544,573,321
121,136 170,175,371,017
113,234,894,008
Investments in associates
6.9.4
1,587,550,233
1,587,550,233
1,587,550,233
Investments in subsidiaries
6.9.4
11,167,350,000
9,913,350,000
7,122,952,585
Investments in jointly controlled entity
6.9.4
584,500,000
584,500,000
584,500,000
Other current assets Derivative assets Total current assets NON - CURRENT ASSETS
Other long - term investments
-
Finance lease assets
-
10,005,340,984
178,108,306,597
156,458,201,834
167,310,687,926
Property, plant and equipment
6.10
244,109,227,418
220,057,322,644
223,244,394,993
Work under construction
6.11
45,590,905,814
62,269,449,284
53,905,163,695
Other intangible assets
6.13
24,251,627,818
23,388,044,807
22,027,229,518
Land awaiting development
6.14
1,816,082,185
1,816,082,185
1,816,082,185
Other non - current assets Total non - current assets TOTAL ASSETS
6.16
1,523,686,059 508,739,236,124 671,283,809,445
1,581,218,270 477,655,719,257 647,831,090,274
1,896,520,378 489,500,422,497 602,735,316,505
Notes to the financial statements are an integral part of these financial statements.
157 (TRANSLATION) - 6ELECTRICITY GENERATING AUTHORITY OF THAILAND AND ITS SUBSIDIARIES STATEMENTS OF FINANCIAL POSITION AS AT DECEMBER 31, 2014 Notes
LIABILITIES AND EQUITY CURRENT LIABILITIES Trade accounts payable - others Trade accounts payable - related parties Surplus revenue from electric energy sales according to automatic tariff adjustment (Ft) Deferred revenue for electricity compensation Other accounts payable Accrued interest expenses Accrued remittance to the Ministry of Finance Accrued expenses Current portion of long - term loans Current portion of finance lease liabilities - Power plants Current portion of finance lease liabilities - others Other current liabilities Derivative liabilities Total current liabilities NON - CURRENT LIABILITIES Long - term loans Finance lease liabilities - Power plants Finance lease liabilities - others Employee benefit obligations Provision liabilities for mine reclamation Other non - current liabilities Total non - current liabilities TOTAL LIABILITIES OWNERS' EQUITY Contribution from the government Surplus from royalty on state property service Retained earnings Appropriated Capital expenditure appropriation Unappropriated Other components of owners' equity TOTAL EQUITY ATTRIBUTABLE TO EGAT TOTAL OWNERS' EQUITY TOTAL LIABILITIES AND OWNERS' EQUITY
Dec 31, 14
Separate financial statement Dec 31, 13 (Restated)
Unit : Baht Jan 1, 13 (Restated)
6.17 6.4.3
45,693,812,700 17,968,105,954
59,240,043,399 15,947,732,882
34,983,438,682 11,974,052,504
6.5 6.5
4,872,377,719 3,386,830,541 9,236,264,176 878,695,528 8,380,707,819 5,187,061,774 8,076,716,135 13,649,524,047 2,051,705
2,231,343,911 8,849,880,043 989,752,178 9,466,293,684 5,200,132,196 6,480,099,844 13,003,427,545 1,510,500
2,768,975,278 11,323,952,243 927,933,843 8,077,994,513 5,368,338,728 4,980,015,965 10,517,295,267 -
117,332,148,098
121,410,216,182
4,591,500 90,926,588,523
56,203,902,463 164,586,062,271 422,900 14,469,212,516 2,141,000,116 13,923,916,258 251,324,516,524 368,656,664,622
64,416,272,901 145,888,865,170 1,384,625 13,955,724,214 2,080,313,567 16,602,058,760 242,944,619,237 364,354,835,419
57,742,506,324 153,665,570,492 13,475,643,183 2,047,399,372 14,503,747,639 241,434,867,010 332,361,455,533
8,939,645,054 213,885,677
9,001,977,817 220,223,033
9,064,310,580 226,560,389
80,186,366,913 214,725,053,427 (1,437,806,248) 302,627,144,823 302,627,144,823 671,283,809,445 21,402,854,451.00
80,186,366,913 195,505,493,340 (1,437,806,248) 283,476,254,855 283,476,254,855 647,831,090,274 -
80,186,366,913 182,334,429,338 (1,437,806,248) 270,373,860,972 270,373,860,972 602,735,316,505 -
6.18 6.19 6.20
6.19 6.20 6.21 6.22 6.23
6.24
Notes to the financial statements are an integral part of these financial statements
(signed) Soonchai Kumnoonsate (Mr. Soonchai Kumnoonsate) Director and Governor
(signed) Chartchai Rojanaratanangkule (Mr. Chartchai Rojanaratanangkule) Deputy Governor - Account and Finance
158 (TRANSLATION) -7ELECTRICITY GENERATING AUTHORITY OF THAILAND AND ITS SUBSIDIARIES STATEMENTS OF INCOME FOR THE YEAR ENDED DECEMBER 31, 2014 Notes
Consolidated financial statement 2014 2013 (Restated)
Unit : Baht Separate financial statement 2014 2013 (Restated)
REVENUES Revenue from electric energy sales Revenue from sales of other goods and services
6.25
Total revenue from sales and services
536,318,407,332
512,820,461,091
533,786,404,632
510,178,670,654
21,410,085,149
24,092,877,109
23,385,655,408
26,046,692,421
557,728,492,481
536,913,338,200
557,172,060,040
536,225,363,075
COST OF SALES Cost of electric energy sales
6.26
460,197,876,743
435,263,920,814
459,204,806,181
435,211,908,103
Cost of sales of other goods and services
6.27
19,445,920,148
22,179,830,145
21,870,922,876
24,317,549,826
479,643,796,891
457,443,750,959
481,075,729,057
459,529,457,929
78,084,695,590
79,469,587,241
76,096,330,983
76,695,905,146
6,574,799,545
4,774,197,185
6,323,389,785
5,135,814,857
84,659,495,135
84,243,784,426
82,419,720,768
81,831,720,003
148,585,269
143,546,015
146,353,489
141,543,687
17,302,590,138
15,983,761,815
14,664,043,570
14,036,488,965
455,628,286
5,238,943,407
332,096,719
5,893,315,579
17,906,803,693
21,366,251,237
15,142,493,778
20,071,348,231
25,709,675,141
25,715,828,746
29,700,173,346
29,535,467,704
41,043,016,301
37,161,704,443
37,577,053,644
32,224,904,068
1,331,035,011
1,998,360,717
-
-
1,047,967,855
515,891,340
-
-
43,422,019,167
39,675,956,500
1,281,939,416
1,433,240,279
42,140,079,751
38,242,716,221
37,577,053,644
32,224,904,068
38,818,541,051
34,672,565,479
37,577,053,644
32,224,904,068
3,321,538,700
3,570,150,742
42,140,079,751
38,242,716,221
Total cost of sales and services GROSS PROFIT OTHER REVENUES
6.28
PROFIT BEFORE EXPENSES SELLING EXPENSES ADMINISTRATIVE EXPENSES OTHER EXPENSES
6.29
TOTAL EXPENSES FINANCE COSTS
6.30
PROFIT BEFORE SHARE OF PROFIT FROM INVESTMENTS SHARE OF PROFIT FROM INVESTMENTS IN ASSOCIATES
6.31
SHARE OF PROFIT FROM INVESTMENTS IN JOINTLY CONTROLLED ENTITIES PROFIT BEFORE INCOME TAXES INCOME TAXES PROFIT FOR THE YEAR
6.15.1
37,577,053,644
32,224,904,068
-
-
ATTRIBUTABLE TO: OWNERS OF EGAT NON - CONTROLLING INTERESTS
37,577,053,644
32,224,904,068
Notes to the financial statements are an integral part of these financial statements.
(signed) Soonchai Kumnoonsate (Mr. Soonchai Kumnoonsate) Director and Governor
(signed) Chartchai Rojanaratanangkule (Mr. Chartchai Rojanaratanangkule) Deputy Governor - Account and Finance
159 (TRANSLATION) -8ELECTRICITY GENERATING AUTHORITY OF THAILAND AND ITS SUBSIDIARIES STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEAR ENDED DECEMBER 31, 2014 Consolidated financial statement 2014 2013 (Restated) PROFIT FOR THE YEAR
42,140,079,751
38,242,716,221
(1,194,128,786)
(1,356,016,962)
Unit : Baht Separate financial statement 2014 2013 (Restated)
37,577,053,644
32,224,904,068
OTHER COMPREHENSIVE INCOME (LOSS) Exchange rate differences from currency translation
-
-
-
Losses on cash flow hedges
(105,465,824)
Gains on available - for - sale investments valuation
567,459,304
176,695,607
-
-
(359,822)
5,813,383
-
-
93,635,107
-
-
(115,680,610)
346,557,207
-
-
(848,175,738)
(733,315,658)
-
-
41,291,904,013
37,509,400,563
37,577,053,644
32,224,904,068
38,427,268,335
34,515,069,726
37,577,053,644
32,224,904,068
2,864,635,678
2,994,330,837
41,291,904,013
37,509,400,563
Actuarial gain (loss) Income taxes of other comprehensive income Share of other comprehensive income (loss) of associates
-
-
-
OTHER COMPREHENSIVE LOSS FOR THE YEARNET OF TAXES TOTAL COMPREHENSIVE INCOME FOR THE YEAR ATTRIBUTABLE TO: OWNERS OF EGAT NON - CONTROLLING INTERESTS
37,577,053,644
32,224,904,068
Notes to the financial statements are an integral part of these financial statements.
(signed) Soonchai Kumnoonsate (Mr. Soonchai Kumnoonsate) Director and Governor
(signed) Chartchai Rojanaratanangkule (Mr. Chartchai Rojanaratanangkule) Deputy Governor - Account and Finance
-
-
-
-
(6,337,356) 213,885,677
-
-
8,939,645,054
-
474,767,280 (254,544,247) 220,223,033 -
-
9,001,977,817 9,001,977,817 (62,332,763)
(6,337,356) 220,223,033
-
-
9,001,977,817
-
474,767,280 (248,206,891) 226,560,389 -
-
9,064,310,580 9,064,310,580 (62,332,763) -
Contribution from Surplus from the government royalty on state property service
Notes to the financial statements are an integral part of these financial statements.
Changes in owners' equity for the year Decrease in non-controlling interests of subsidiaries Dividends paid Surplus from royalty on state property service adjustment Final judgment of contentious litigation adjustment Total comprehensive income for the year Balance as at December 31, 2014
Balance as at January 1, 2014 (Before adjustment) Cumulative effect of the changes in accounting policies 5 Cumulative effect of the adjustment 5 Balance as at January 1, 2014 (Adjusted) Depreciation of assets for irrigation 6.16 Remittance to the Ministry of Finance 6.18 Increase of the year 2013 The year 2014 (Jan 1 - Jun 30, 2014) Provision for remittance to the Ministry of Finance The year 2014 (Jul 1 - Dec 31, 2014)
Changes in owners' equity for the year Additional investments from subsidiaries Dividends paid Surplus from royalty on state property service adjustment Total comprehensive income for the year Balance as at December 31, 2013
Balance as at January 1, 2013 (Before adjustment) Cumulative effect of the changes in accounting policies 5 Cumulative effect of the adjustment 5 Balance as at January 1, 2013 (Adjusted) Depreciation of assets for irrigation 6.16 Additional paid-up share Remittance to the Ministry of Finance 6.18 Increase of the year 2012 The year 2013 (Jan 1 - Jun 30, 2013) Provision for remittance to the Ministry of Finance The year 2013 (Jul 1 - Dec 31, 2013)
Notes
80,186,366,913
-
-
-
80,186,366,913 80,186,366,913 -
80,186,366,913
-
-
-
80,186,366,913 80,186,366,913 -
6,337,356 604,800,000 38,818,541,051 247,911,016,135
-
(8,380,707,819) (18,968,630,913)
(28,828,065) (10,559,095,029)
224,710,045,449 2,485,378,945 254,544,247 227,449,968,641 -
6,337,356 34,672,565,479 227,449,968,641
-
(9,466,293,684) (19,060,177,422)
(4,005,487) (9,589,878,251)
203,428,380,429 8,154,655,908 248,206,891 211,831,243,228 -
Retained earnings Appropriated Unappropriated
(425,363,980) (1,129,073,451)
-
-
-
(703,709,471) (703,709,471) -
(628,305,751) (703,709,471)
-
-
-
Exchange rate differences from currency translation (75,403,720) (75,403,720) -
(105,465,824) (105,465,824)
-
-
-
-
-
-
-
-
255,399,618 610,002,723
-
-
-
354,603,105 354,603,105 -
79,500,971 354,603,105
-
-
-
(161,920) (1,435,352,146)
-
-
-
(1,435,190,226) (1,435,190,226) -
2,616,022 (1,435,190,226)
-
-
-
2,886,909,938
-
-
-
2,886,909,938 2,886,909,938 -
2,886,909,938
-
-
-
Equity attributable to EGAT Other components of owners' equity Other comprehensive income (loss) Losses on Gains on Actuarial Surplus on cash flow hedges available-for-sale gain (loss) subsidiaries and investments associates using valuation equity method 275,102,134 (1,437,806,248) 2,886,909,938 275,102,134 (1,437,806,248) 2,886,909,938 -
Consolidated financial statement
ELECTRICITY GENERATING AUTHORITY OF THAILAND AND ITS SUBSIDIARIES STATEMENTS OF CHANGES IN EQUITY FOR THE YEAR ENDED DECEMBER 31, 2014
(TRANSLATION) -9-
-
-
-
-
-
42,135,798 -
-
-
-
Income taxes for other comprehensive income (42,135,798) (42,135,798) -
(115,680,610) 339,700,107
-
-
-
452,286,558 3,094,159 455,380,717 -
346,557,207 455,380,717
-
-
-
Share of other comprehensive income (loss) of associates 108,248,965 574,545 108,823,510 -
(391,272,716) 1,166,721,347
-
-
-
1,554,899,904 3,094,159 1,557,994,063 -
(157,495,753) 1,557,994,063
-
-
-
1,714,915,271 574,545 1,715,489,816 -
Total other components of owners' equity
604,800,000 38,427,268,335 338,417,635,126
-
(8,380,707,819) (18,968,630,913)
(28,828,065) (10,559,095,029)
315,928,057,363 2,488,473,104 318,416,530,467 (62,332,763)
34,515,069,726 318,416,530,467
-
(9,466,293,684) (19,060,177,422)
(4,005,487) (9,589,878,251)
294,868,740,473 8,155,230,453 303,023,970,926 (62,332,763) -
Total EGAT's equity
2,864,635,678 34,084,534,472
(96,325,672) (1,810,325,000)
-
-
31,153,366,123 1,973,183,343 33,126,549,466 -
2,994,330,837 33,126,549,466
15,061,191 (1,810,325,000)
-
-
30,105,185,605 1,793,187,158 31,898,372,763 29,109,675
Non - controlling interests
604,800,000 41,291,904,013 372,502,169,598
(96,325,672) (1,810,325,000)
(8,380,707,819) (18,968,630,913)
(28,828,065) (10,559,095,029)
351,543,079,933 (62,332,763)
347,081,423,486 4,461,656,447
37,509,400,563 351,543,079,933
15,061,191 (1,810,325,000)
(9,466,293,684) (19,060,177,422)
(4,005,487) (9,589,878,251)
324,973,926,078 9,948,417,611 334,922,343,689 (62,332,763) 29,109,675
Total owners' equity
Unit : Baht
160
6.24 6.18
5 5
6.24 6.18
5 5
(6,337,356) 213,885,677
-
8,939,645,054
-
474,767,280 (254,544,247) 220,223,033 -
-
9,001,977,817 9,001,977,817 (62,332,763)
(6,337,356) 220,223,033
-
9,001,977,817
-
474,767,280 (248,206,891) 226,560,389 -
Surplus from royalty on state property service
-
9,064,310,580 9,064,310,580 (62,332,763)
Contribution from the government
Notes to the financial statements are an integral part of these financial statements
Changes in owners' equity for the year Surplus from royalty on state property service adjustment Final judgment of contentious litigation adjustment Total comprehensive income for the year Balance as at December 31, 2014
Balance as at January 1, 2014 (Before adjustment) Cumulative effect of the changes in accounting policies Cumulative effect of the adjustment Balance as at January 1, 2014 (Adjusted) Depreciation of assets for irrigation Remittance to the Ministry of Finance Increase of the year 2013 The year 2014 (Jan 1 - Jun 30, 2014) Provision for remittance to the Ministry of Finance The year 2014 (Jul 1 - Dec 31, 2014)
Changes in owners' equity for the year Surplus from royalty on state property service adjustment Total comprehensive income for the year Balance as at December 30, 2013
Balance as at January 1, 2013 (Before adjustment) Cumulative effect of the changes in accounting policies Cumulative effect of the adjustment Balance as at January 1, 2013 (Adjusted) Depreciation of assets for irrigation Remittance to the Ministry of Finance Increase of the year 2012 The year 2013 (Jan 1 - Jun 30, 2013) Provision for remittance to the Ministry of Finance The year 2013 (Jul 1 - Dec 31, 2013)
Notes
80,186,366,913
-
-
80,186,366,913 80,186,366,913 -
80,186,366,913
-
-
80,186,366,913 80,186,366,913 -
6,337,356 604,800,000 37,577,053,644 214,725,053,427
(8,380,707,819) (18,968,630,913)
(28,828,065) (10,559,095,029)
197,685,039,974 (2,434,090,881) 254,544,247 195,505,493,340 -
6,337,356 32,224,904,068 195,505,493,340
(9,466,293,684) (19,060,177,422)
(4,005,487) (9,589,878,251)
178,958,400,280 3,127,822,167 248,206,891 182,334,429,338 -
Retained earnings Appropriated Uunappropriated
ELECTRICITY GENERATING AUTHORITY OF THAILAND AND ITS SUBSIDIARIES STATEMENTS OF CHANGES IN EQUITY FOR THE YEAR ENDED DECEMBER 31, 2014 Separate financial statement
(TRANSLATION) - 10 -
(1,437,806,248)
-
-
(1,437,806,248) (1,437,806,248) -
(1,437,806,248)
-
-
(1,437,806,248) (1,437,806,248) -
Other components of owners' equity Other comprehensive income (loss) Acturial loss
604,800,000 37,577,053,644 302,627,144,823
32,224,904,068 283,476,254,855 285,910,345,736 (2,434,090,881) 283,476,254,855 (62,332,763) (28,828,065) (10,559,095,029) (8,380,707,819) (18,968,630,913)
(4,005,487) (9,589,878,251) (9,466,293,684) (19,060,177,422)
267,246,038,805 3,127,822,167 270,373,860,972 (62,332,763)
Unit : Baht Total owners' equity
161
162 (TRANSLATION) - 11 ELECTRICITY GENERATING AUTHORITY OF THAILAND AND ITS SUBSIDIARIES STATEMENTS OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2014 Notes
CASH FLOWS FROM OPERATING ACTIVITIES Net income of EGAT Adjustments to reconcile net income to net cash inflow (outflow) from operating activities Depreciation Depreciation of finance lease assets 6.33 Donation assets Donated assets Amortization of land rights and project development rights Amortization of computer software rights Amortization of royalty on state property service 6.13 Amortization of gas pipe system rights 6.13 Amortization of transmission system connection rights 6.13 Amortization of deferred loan fees Allowance for loss on impairment of investments Allowance for diminution in value of inventories Loss on impairment of property, plant and equipment 6.10 Loss on impairment of goodwill 6.12 Amortization of deferred charges of the lignite mine Doubtful debts Bad debts Allowance for obsolescence on materials and supplies Gain on revaluation of investments in trading securities. Gain on disposal of investments in jointly controlled entities (Profit) loss on disposal of assets 6.28, 6.29 Revenue from deferred income 6.23 Employee benefit expense realized from estimates 6.21 Actuarial gains 6.21 Foreign exchange adjustment under employee benefit obligations 6.21 (Gain) Loss on foreign exchange 6.28, 6.29 Loss on foreign exchange under finance leases 6.29 Gain on changes in the fair value of derivatives 6.28 Loss on bargain purchase of a subsidiary. Loss on disposal of investments in subsidiary Dividends received from associates 6.9.3, 6.9.4 Dividends received from subsidiary 6.9.4 Dividends received from jointly controlled entities 6.9.3 Dividends received from other investments Share of profit from investments in associates Share of (profit) loss from investments in jointly controlled entities Net income attributable to non - controlling interests Interest income Interest expenses Interest expenses under finance leases 6.30 Income taxes 6.15.1 Net income from operating activities before changes in operating assets and liabilities Notes to the financial statements are an integral part of these financial statements.
Consolidated financial statement 2014 2013 (Restated)
Unit : Baht Separate financial statement 2014 2013 (Restated)
38,818,541,051
34,672,565,479
37,577,053,644
32,224,904,068
25,684,682,182 11,336,178,674 9,228,715 296,121,074 235,951,281 6,337,356 312,449 3,712,103 17,761,191 (141,770) 134,176,015 375,367,356 6,108,101,571 (7,802,704) 6,983,411 348,852,014 (2,113,492) (10,942,000) (277,555,857) (311,013,901) 1,009,136,596 (94,395)
25,588,843,475 10,852,486,091 (108,550) 672,215 298,258,525 219,650,249 6,337,356 312,449 3,712,103 (122,317,517) 15,155,956 6,031,320,583 2,198,763 5,593 283,140,776 (1,133,061) 187,161,915 (431,685,334) 976,652,976 -
24,459,091,934 11,336,178,674 9,228,715 853,727 218,758,129 6,337,356 6,108,101,571 (7,802,704) 6,983,411 145,712,215 (277,609,858) (311,013,901) 989,773,618 -
22,105,153,294 10,852,486,091 (108,550) 672,215 874,894 213,081,693 6,337,356 6,031,320,583 2,198,763 5,593 236,327,885 159,310,563 (431,685,334) 957,070,139 -
(362,049) (1,045,592,547) 271,350,916 (107,615,802) 825,375,928 142,113,794 (1,072,185,388) (706,928,598) (235,951,209) (258,849,623) (341,039,257) 3,321,538,700 (1,956,617,121) 4,421,720,929 21,229,109,420 1,281,939,416
(443,766) (22,966,233) 4,998,762,434 (104,291,021) (802,641,972) (977,625,453) (220,902,844) (1,195,718,745) 461,734,113 3,570,150,742 (2,017,920,503) 4,210,929,192 21,298,916,193 1,433,240,279
(675,369,678) 276,781,686 (107,615,802) (836,085,388) (1,481,175,000) (1,647,741,080) 2,924,282,826 26,774,341,382 -
682,223,523 4,998,762,434 (104,291,021) (802,641,972) (1,481,175,000) (1,544,696,836) 2,737,707,515 26,796,031,626 -
109,549,786,429
109,214,452,458
105,489,065,477
103,639,869,522
163 (TRANSLATION) - 12 ELECTRICITY GENERATING AUTHORITY OF THAILAND AND ITS SUBSIDIARIES STATEMENTS OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2014 Notes
CASH FLOWS FROM OPERATING ACTIVITIES (CONTINUE) Changes in operating assets (Increase) Decrease Trade accounts receivable Other accounts receivable Materials and supplies Other current assets Other non - current assets Deferred tax assets Deferred charges of the lignite mine Changes in operating liabilities Increase (Decrease) Trade accounts payable Other accounts payable Long - term advance receive from related party Other current liabilities Accrued expenses Other non - current liabilities Deferred tax liabilities Actual payment on employee benefit Provision liabilities for mine reclamation Cash receipts from operating Cash receipts on interest Cash payment on income taxes Net cash from operating activities CASH FLOWS FROM INVESTING ACTIVITIES Net cash receipts (payment) on temporary investments Net cash receipts (payment) on long - term investments Cash receipts on disposal of assets Cash payment on property, plant, equipment, work under construction and intangible assets Cash payment on interest for work under construction Cash payment of refund to contribution Cash receipts on deferred income Cash payment on investments in subsidiaries Cash payment on investments in associated company Cash payment on investments in other entities Cash payment on investments in jointly controlled entities Cash receipts from disposal of investments in jointly controlled entities Cash receipts from disposal of investments in subsidiaries
6.21
a 6.23
Notes to the financial statements are an integral part of these financial statements
Consolidated financial statement 2014 2013 (Restated)
Unit : Baht Separate financial statement 2014 2013 (Restated)
(5,783,365,205) (264,655,628) (304,721,487) (1,655,188,590) (152,827,524) 1,256,574,169 (6,031,066,636)
(3,123,569,171) (916,547,097) (703,261,756) (38,834,223) 3,682,105,352 (2,284,716) (5,955,412,355)
(6,162,156,263) (476,205,357) (286,500,722) (19,289,061) (6,031,066,636)
(3,235,123,007) (634,526,922) (303,135,366) 240,612,643 (5,955,412,355)
(5,667,369,978) (1,790,657,756) 7,903,089 (1,078,856,211) 6,744,824 434,616,671 (1,561,262,123) (598,530,811) 67,749,836 (23,114,913,360) 86,434,873,069 1,252,776,892 (1,331,410,620) 86,356,239,341
23,200,355,269 (5,536,308,653) 161,138,358 109,640,170 (1,611,324,764) (111,944,125) (589,759,759) 37,865,259 8,601,857,789 117,816,310,247 1,070,923,689 (1,393,986,295) 117,493,247,641
(5,339,462,202) (2,344,559,492) (13,070,421) 789,985,016 (588,198,339) 67,749,836 (20,402,773,641) 85,086,291,836 1,215,734,012 86,302,025,848
27,747,158,983 (6,136,063,372) (168,332,407) (33,053,999) (585,136,922) 37,865,259 10,974,852,535 114,614,722,057 1,042,112,353 115,656,834,410
8,075,338,873 (291,299,037) 448,070,269
(23,235,749,539) 10,044,490,984 172,891,244
9,041,325,385 442,618,142
(24,973,301,124) 10,005,340,984 166,714,464
(30,966,423,559) (325,873,449) (54,738,519) 385,935,059 (703,435,335) (623,844,703) (417,275,485) 10,942,000 118,428,750
(26,014,802,271) (571,798,570) 690,328,545 (367,082,771) (11,643,851) (133,520,000) 20,800,000 -
(31,101,176,660) (325,873,449) (54,738,519) 385,935,059 (1,254,000,000) -
(24,259,720,669) (571,798,570) 690,328,545 (2,790,397,415) -
164 (TRANSLATION) - 13 ELECTRICITY GENERATING AUTHORITY OF THAILAND AND ITS SUBSIDIARIES STATEMENTS OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2014 Notes
CASH FLOWS FROM INVESTING ACTIVITIES (CONTINUE) Cash receipts on interest Dividends received from associates Dividends received from subsidiaries Dividends received from jointly controlled entitie Dividends received from other entities Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Remittance to the Ministry of Finance Cash receipts from short - term loans from financial institutions Cash payment of short - term loans from financial institutions Cash receipts from bill of exchange payables Cash payment of bill of exchange payables Cash receipts from long - term loans Cash receipts from share subscription of subsidiary Cash payment of long - term loans from related party Increase (decrease) in finance lease liabilities - others Decrease in finance lease liabilities - Power plants Cash payment of long - term loans Cash payment on interest Cash payment on interest under finance leases Dividends paid to non - controlling interests of subsidiary Net cash used in financing activities EFFECT FROM FOREIGN EXCHANGE RATE IN CASH AND CASH EQUIVALENTS NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS EFFECT FROM PURCHASE OF INVESTMENT IN SUBSIDIARY EFFECT FROM SALES OF INVESTMENT IN SUBSIDIARY CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR Notes to the financial statements are an integral part of these financial statements.
6.9.3, 6.9.4 6.9.4 6.9.3
6.19
6.30
13
6.1
Consolidated financial statement 2014 2013 (Restated)
Unit : Baht Separate financial statement 2014 2013 (Restated)
806,326,085 1,072,185,388 706,928,598 235,951,209 (21,522,783,856)
795,130,139 802,641,972 977,625,453 220,902,844 (36,609,785,821)
513,780,822 836,085,388 1,481,175,000 (20,034,868,832)
508,009,323 802,641,972 1,481,175,000 (38,941,007,490)
(20,054,216,778) 17,535,000,000 (23,433,996,684) 4,700,000,000 (3,750,000,000) 10,274,205,641 (4,051,156) (11,837,849,773) (11,570,105,267) (4,452,775,802) (21,229,109,420) (1,810,325,000) (65,633,224,239)
(17,671,878,251) 13,160,718,504 (6,424,227,960) 3,000,000,000 (3,250,000,000) 16,065,950,000 29,109,675 (58,170,400) 410,703 (8,696,509,116) (22,510,275,718) (4,589,464,918) (21,298,916,193) (1,810,325,000) (54,053,578,674)
(20,054,216,778) (1,955,220) (13,919,771,521) (6,457,892,766) (3,035,339,589) (26,774,341,382) (70,243,517,256)
(17,671,878,251) 13,000,000,000 3,021,000 (10,289,335,477) (4,964,753,468) (2,677,809,423) (26,796,031,626) (49,396,787,245)
(193,036,551) (992,805,305) 45,700,249 (28,334,506) 67,078,800,366 66,103,360,804
(63,436,409) 26,766,446,737 40,312,353,629 67,078,800,366
(74,682,048) (4,051,042,288) 59,171,134,233 55,120,091,945
8,844,503 27,327,884,178 31,843,250,055 59,171,134,233
(TRANSLATION) - 14 -
ELECTRICITY GENERATING AUTHORITY OF THAILAND AND ITS SUBSIDIARIES STATEMENTS OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2014
Notes to the Statements of Cash Flows a. Property, Plant and Equipment, Work under Construction and Intangible Assets Consolidated During the year 2014, EGAT and its subsidiaries purchased property, plant and equipment, work under construction and intangible assets which total costs are Baht 33,881.66 million. The purchasing were cash paid amounting to Baht 30,966.42 million and for the remaining unpaid amounting to Baht 2,915.24 million were accounts payable. During the year 2013, EGAT and its subsidiaries purchased property, plant and equipment, work under construction and intangible assets which total costs are Baht 29,756.41 million. The purchasing were cash paid amounting to Baht 26,014.80 million and for the remaining unpaid amounting to Baht 3,741.61 million were accounts payable. Separate During the year 2014, EGAT purchased property, plant and equipment, work under construction and intangible assets which total costs are Baht 34,016.42 million. The purchasing were cash paid amounting to Baht 31,101.18 million and for the remaining unpaid amounting to Baht 2,915.24 million were accounts payable. During the year 2013, EGAT purchased property, plant and equipment, work under construction and intangible assets which total costs are Baht 28,001.33 million. The purchasing were cash paid amounting to Baht 24,259.72 million and for the remaining unpaid amounting to Baht 3,741.61 million were accounts payable.
Notes to the financial statements are an integral part of these financial statements.
165
(TRANSLATION) - 15 -
166
ELECTRICITY GENERATING AUTHORITY OF THAILAND AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2014
1. General Information Electricity Generating Authority of Thailand (EGAT), which is a juristic person, was established by Electricity Generating Authority of Thailand Act, B.E. 2511 (1968) and subsequent amendments. EGAT’s main business objectives are as follows: 1.1 To generate, acquire, transmit or distribute electric energy to: - The Metropolitan Electricity Authority (MEA), the Provincial Electricity Authority (PEA) or other electricity authorities under the law thereon; - Other electric energy consumers as prescribed by a Royal Decree; - Neighboring countries 1.2 To undertake various activities concerning electric energy, energy sources deriving from natural resources and undertakes business concerning electric energy and other businesses concerning or related to the activities of EGAT, or collaborates with other persons for the said activities. 1.3 To produce and sell lignite or any chemicals derived from lignite. All of assets, liabilities, rights, obligations and businesses of the Yanhee Electricity Authority, the Lignite Authority and the Northeast Electricity Authority were transferred to EGAT. Total net assets (net of liabilities) were considered the capital of EGAT. 2. Basis of Financial Statements Presentation 2.1 Principles of Financial Statements Preparation The consolidated and the separate financial statements have been prepared in accordance with Thai Financial Reporting Standards under the Accounting Profession Act, B.E. 2547, including interpretations and guildlines promulgated by the Federation of Accounting Professions (FAP). EGAT has presented the financial statements in compliance with the notification of the Department of Business Development “Definition of the abbreviated components required in the financial statements, B.E.2554”, dated September 28, B.E.2554, under the third paragraph of section 11 of the Accounting Act, B.E.2543. These accompanying consolidated and the separate financial statements are prepared based on the assumption that users of these financial statements have an understanding of generally accepted accounting principles and practices used in Thailand. In any case, these accounting principles may differ, in certain aspects, from generally accepted accounting principles used in other countries.
(TRANSLATION) - 16 -
The mentioned financial statements have been prepared under the historical cost convention, except explained otherwise as disclosed in Note 3. In the consolidated financial statements, the significant transactions arising between EGAT, subsidiaries and jointly controlled entities are eliminated. Investments in subsidiaries, associated company and the jointly controlled entity have been presented in the separate financial statements under the cost method. Non - controlling interests are separately disclosed in equity. When materiality, accounting policies of its subsidiaries, an associated company, and a jointly controlled entity have been changed to ensure consistency with the accounting policies adopted by EGAT. An English language version of the financial statements has been prepared from the statutory financial statements that were issued in Thai language. In case of conflict or difference in the interpretation between the two languages, the financial statements in Thai language shall prevail. 2.2 Use of Estimates The consolidated and the separate financial statements are prepared in conformity with Thai generally accepted accounting principles in Thailand, which require management to make estimates and assumptions that affect the book value of assets and liabilities in the consolidated and the separate financial statements. Actual results may differ from those estimates and assumptions. 3. Significant Accounting Policies 3.1 Cash and Cash Equivalents Cash and cash equivalents include cash, cash in current accounts, saving accounts and short term fixed deposits not more than 3 months including promissory notes or bills of exchange with maturity of 3 months or less which EGAT has fully accessed without commitment. 3.2 Temporary investments Temporary investments of EGAT has followed to the regulations of the Ministry of Finance regarding accounting and finance of state owned enterprise B.E. 2548 section 2 of finance which defined state owned enterprise to deposit its money with commercial banks that also are state owned following to the budgeting law. If there is remaining liquidity or desire to manage remaining liquidity to gain higher reward than deposit with state owned banks following to the budgeting law of state owned enterprise, it is possible to invest in short term financial instruments issued by the Ministry of Finance or financial institutions of government. 3.3 Trade Accounts Receivable and Other Accounts Receivable Accounts receivable are stated at net realizable value. The allowance for doubtful accounts is estimated by percentage of the overdue, which have been based on historical results of collection and the
167
168
(TRANSLATION) - 17 -
present events pertaining to accounts receivable at the statements of financial position date. According to the regulations of the Ministry of Finance regarding accounting and finance of state owned enterprise B.E. 2548, which amended the regulations of the Ministry of Finance regarding accounting and finance of state owned enterprise B.E. 2520, the allowance for doubtful accounts are stated as follows: 3.3.1 Trade accounts receivable exclusive of government agencies and state enterprises Overdue Period Percentage of allowance for doubtful accounts Over 6 months - 1 year 50 Over 1 year 100 3.3.2 Other accounts receivable (exclude accrued revenues and prepaid expenses), which the overdue period is over 1 year, the percentage of allowance for doubtful accounts is 100. 3.4 Materials and Supplies 3.4.1 Fuel oil for power plant is stated at the lower of moving average cost or net realizable value. 3.4.2 Lignite is stated at the lower of moving average cost or net realizable value. 3.4.3 Spare parts for power plant and mine equipment are stated at moving average cost less allowance for obsolescence of stocks designed to write off the parts on a straight - line method over the useful lives of the main equipment. Spare parts for power plant under materials and supplies - net item are namely the spare parts and equipment which are used in maintenance power plants. The portion of main spare parts and equipment for power plants, which has useful life over 1 year, is stated in equipment for power plants under property, plant and equipment item. Spare parts for mine equipment are namely component, spare parts and supplies for mine equipment maintenance such as spare parts for 85 ton truck, spare parts for excavator and spare parts for engine belt system. However, useful life over 1 year and reserved spare parts for mine equipment is stated under property, plant and equipment item. 3.4.4 General materials and supplies are stated at moving average cost less allowance for obsolescence of stocks designed, which have not moved for 6 months and above. The allowance is calculated at the following rates:
(TRANSLATION) - 18 -
No movement within 6 -18 months Over 18 - 30 months Over 30 - 48 months Over 48 - 60 months Over 60 months
Percentage of allowance for obsolescence of stocks 10 30 50 75 100
General materials and supplies consist of fuel oil for vehicle and machine, general spare parts and office suppliers for operation. 3.5 Derivative Assets and Derivative Liabilities Derivatives have initial realized based on the fair value at the statements of financial position date. Gains or losses from the change of fair value are realized in statements of income of that period. At the statements of financial position date, the fair value of forward foreign exchange contracts, cross currency and interest rate swap contracts, currency swap contracts and interest rate swap contracts are calculated by financial institutions, which are the contractor of EGAT. 3.6 Investments in Associates, Subsidiaries and Jointly Controlled Entities 3.6.1 Investments in associates Investments in associates of EGAT have been presented in the separate financial statements under the cost method. Investments in associates of EGAT and its subsidiaries have been presented in the consolidated financial statements under the equity method. respectively.
A list of associates of EGAT and its subsidiaries is set out in Note 6.9.1 and 6.9.2
3.6.2 Investments in subsidiaries Investments in subsidiaries of EGAT have been presented in the separate financial statements under the cost method. Investments in subsidiaries of EGAT and its subsidiaries have been eliminated together with the equity interests in the consolidated financial statements preparation. A list of subsidiaries of EGAT and its subsidiaries is set out in Note 6.9.1 and 6.9.2 respectively. Although EGAT owned Ratchaburi Electricity Generating Holding Public Company Limited (RATCH) and EGAT Diamond Service Co., Ltd., only 45% of the total fully paid-up common share, EGAT has effective control over so that they are subsidiaries of EGAT according to generally accepted accounting principles, which must prepared the consolidated financial statements. But, according to the Budgeting Law, EGAT has to own in the company over 50% then, they can be the state enterprise.
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3.6.3 Investments in jointly controlled entities Investments in jointly controlled entities of EGAT have been eliminated together with the equity interests in the consolidated financial statements preparation while investments in jointly controlled entities of subsidiaries have been presented in the consolidated financial statements under the equity method. A list of jointly controlled entities of EGAT and its subsidiaries is set out in Note 6.9.1 and 6.9.2 respectively. 3.7 Investments in financial securities Investments in financial securities of EGAT comprise of held - to - maturity investments and available - for - sale securities investments. 3.7.1 Held - to - maturity investments are investments with maturity period. The bearers intends and be able to held to maturity date. It has been included in the current assets and disclosed in cash and cash equivalents and temporary investments in the case of the maturity date of investments is more than 3 months but not more than 1 year. Held - to - maturity investments are stated in the statements of financial position at amortized cost less impairment loss of investments. The difference between purchased prices and maturity value will be amortized using the effective rate of interest method over the remaining useful life of the investments. 3.7.2 Available - for - sale securities investments are investments held with no identifiable time and may sell for enhancing liquidity or when interests rate change. Available - for - sale securities investments are stated at fair value. Unrealized gain (loss) from value changes is recognized separately in the equity. When there is sales of available - for - sale securities investments, accumulated changes in fair value is recognized in the statements of income and discloses in gain (loss) from sales of investments. Investments in financial securities of EGAT is in compliance with the regulations of the Ministry of Finance about Accounting and Finance of state owned enterprise, B.E.2548 section 2 which require the state owned enterprises who want to manage liquidity may elect to invest in short - term financial instruments issued by the Ministry of Finance or government financial institutions. 3.8 Property, Plant and Equipment Property, Plant and equipment are stated at cost on the date of acquisition or completion of construction less accumulated depreciation.
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Depreciation is calculated on the straight - line method in order to reduce the book value of each type of assets over the estimated useful lives with residual value of one Baht except the land which has infinite useful lives. The estimates of useful lives of EGAT’s assets are as follows: Years Structures Reservoirs and dams Power plants Equipment for power plants Control system Transmission system Communication system Coal handling system Machinery Large - sized spare parts for mine equipment Vehicles Other materials and supplies
3 6 5 3 3 3 5 10 5 8
years - 40 years years 8 months - 75 years years - 30 years years - 25 years years - 25 years years - 40 years years - 25 years years - 25 years years - 10 years years
5 years 3 years
- 12 years - 10 years
The estimate of useful lives for power plants of subsidiaries is stated according to the power purchase agreement. Depreciation of the Srinagarind, Bang Lang, Vajiralongkorn, Rajjaprabha and Pak Mun dams are included in the statements of income only to the extent that they relate to power generation. The remaining portion relating to irrigation is deducted from capital contribution for supporting construction of those dams. When the asset was disposed, EGAT recorded to write off the asset with accumulated depreciation and recognized gain (loss) on disposal of asset in the statements of income. The cost of major inspection was recognized as the part of property, plant and equipment and was amortized according to the estimated useful lives. The useful lives of major inspection fee are estimated under type of major inspection fee and power plants as follows:
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172
Type of Power Plants
Type of Major Inspection Fee Major Overhaul : MO
Minor Inspection : MI
Useful lives (Year)
Useful lives (Year)
- Hydro Power Plants
6 - 12
2-4
- Thermal Power Plants
4-6
2
- Combined Cycle Power Plants
2-6
2-3
- Gas Turbine Power Plants
4-8
1-4
8
2
- Lignite Power Plants
Besides, cost of power plants commissioning after deduction of revenue from electric energy during power plants commissioning are recorded as the part of property, plant and equipment in work under construction item. 3.9 Assets and Liabilities under Finance Lease Agreements Assets and liabilities under finance lease agreements are stated at the lower of fair values at inception or present values of the minimum lease payments less accumulated depreciation. A portion of lease payments is recognized as financial expenses and the remainder is deducted from the principle over the lease periods. Depreciations of those leased assets are calculated on the straight - line method over the estimated useful lives of each type of assets. In case the ownership of the assets is not transferred to the lessee at the end of the lease periods, depreciations are based on the shorter of the useful lives of the assets or the lease period. 3.10 Intangible Assets 3.10.1 Land rights The land rights under transmission line have infinite useful lives because its future economic benefit is uncertain. Other land rights, which can be expected their useful lives, will be amortized according to the certain useful lives. 3.10.2 Computer software rights and software license Computer software rights of EGAT are amortized as expenses over the expected useful lives not more than 5 years, which are revised the amortization method and the useful lives in every accounting period. The software license is amortized as expenses over the expected useful lives in 5 - 10 years.
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173
3.10.3 Royalty on state property service In 1990, with the approval of the Ministry of Finance, EGAT has been entitled to use land and building surrounding the Sirikit dam, which are state property without charge and EGAT recognized cost of dam in portion that use for generating electric power and surplus from Royalty on State Property Service as a Royalty on State Property Service account. It is recognized as expenses and written off from the Royalty on State Property Service. The balance is being amortized over 59 years, which is the remainder estimated useful lives of the dam. 3.10.4 Gas piped system rights Gas piped system rights are amortized based on a straight - line method over the expected useful lives in 20 years. 3.10.5 Transmission system connection rights Transmission system connection rights are amortized based on a straight - line method over the expected useful lives in 8 years. 3.10.6 Project development rights The incurred costs on development projects are recognized as intangible assets when there are obvious possibilities that the projects will be success. The cost on development projects that has been capitalized is amortized from commencement of the commercial operation based on a straight - line method over the period of its expected benefit. 3.11 Goodwill Goodwill represents the excess of the cost of acquisition of the group of subsidiaries over the fair value of the Group’s share of the identifiable net assets of the acquired subsidiary, jointly controlled entity or associated company at the acquisition date. Goodwill is measured at cost less accumulated impairment losses. Goodwill is tested for impairment. The carrying amounts of the Group’s assets are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, the assets’ recoverable amounts are estimated. For goodwill, the recoverable amount is estimated at each reporting date, when indicators of impairment are identified. 3.12 Deferred Charges of the Lignite Mine 3.12.1 Overburden removal costs The costs of overburden removal expended in each year are calculated by multiply the quantity of lignite extracted from the mine in that period by 6.09 (the stripping ratio is 6.09:1, which is the ratio of the overburden bears to the total economically lignite) and multiply by the average cost per cubic metre of overburden removed. In case the actual stripping ratio in each period is more than 6.09, the excess
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174
is recorded as the deferred charges. However, the accumulated of overburden removal costs is not more than the deferred charges. 3.12.2 Minerals resource exploration and preliminary development costs Minerals resource exploration and preliminary development costs are recognized as expenses for the year in which they are incurred. Any exploration done as a part of a power development plan and long - term mining plan, are recognized as deferred charges and amortized in the proportion that deferred expenses bears to the total economically mineable reserves and multiplied by the quantity of lignite extracted during the year. 3.12.3 Resettlement costs Resettlement costs expended in each year are calculated by dividing the total actual resettlement costs by the total lignite mineable reserves over the useful lives of the power plants multiplied by the quantity of lignite extracted during the year. The resettlement costs in areas, which are not mined for lignite, will be recognized as expense in the period as incurred. 3.12.4 Mineral patent costs Mineral patent costs paid as an extra to the government are calculated by 0.1% of the total mineral value, each of them has value exceeding Baht 50 million. Mineral fields with lesser value are exempted from such patent costs. Each patent is granted a period of 25 years. Mineral patent costs are recognized as deferred charges and amortized over the period of patent. 3.13 Foreign Currency Foreign currency transactions are translated into Thai Baht using the Bank of Thailand's reference exchange rate prevailing at the transaction date. Assets and liabilities dominated in foreign currency are translated into Thai Baht using the exchange rate at the end of accounting period. Gains or losses on foreign exchange are recognized as either revenues or expenses for all amounts in that accounting period. 3.14 Employee Benefit Obligations Employee Benefit Obligations of EGAT, subsidiaries and jointly controlled entities were measured and recognized as follows: 1. Short - term employee benefits are recognized as expenses in profit and loss when incurred. However, short - term employee benefits in case of leave with accumulated compensation are recognized when the services are rendered.
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2. Post - employee benefits - defined contribution plans EGAT, subsidiaries and jointly controlled entity have jointly established a provident fund. The fund is monthly contributed by employees, EGAT, subsidiaries and jointly controlled entity. The fund’s assets are held in a separate trust fund and the contributions are recognized as expenses when incurred. 3. Post - employee benefits - defined benefit plans The obligation under the defined benefit plan is determined based on actuarial techniques, using the project unit credit method, in order to determine present value of the obligation, current service cost and past service cost. These are recognized as a liability in statements of financial position and expenses in statements of income. In case of EGAT has the differences between actual employee benefits paid and actuarial estimated, EGAT will not recognized the differences until there is assumptions revision in accordance with actuarial, which revised every 3 years or whether there is any indication. Any actuarial gains and losses are recognized in statements of comprehensive income. 4. Other long - term employee benefits The obligation under the defined benefit plan is determined based on actuarial techniques, using the project unit credit method, in order to determine present value of the obligation, current service cost and past service cost. These are recognized as a liability in statements of financial position and expenses in statements of income. In case of EGAT has the differences between actual employee benefits paid and actuarial estimated, EGAT will not recognize the differences until there is assumptions revision in accordance with actuarial, which will be revised every 3 years or whether there is any indication. Any actuarial gains and losses are recognized in statements of income in the period in which they arise. 3.15 Provision Liabilities for Mine Reclamation EGAT recognizes provision liabilities for mine reclamation of lignite mine in Mae Moh District, Lampang, which will arise in the future. The Mining Act defines that the reclamation shall take place after mine closure. As a result, EGAT shall recognize provision liabilities for mine reclamation. For reclamation costs recognized as expenses in the reporting period are calculated by estimation of total reclamation costs, divided by total expected quantity of extracted lignite over the mining life, multiplied by the quantity of extracted lignite for each period. 3.16 Staff AID Fund and Provident Fund EGAT has established the Staff AID Fund to provide welfare for employees after leaving EGAT. EGAT contributes to the fund on a monthly basis at the rate of 10% of salaries of its employees being the
175
176
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fund’s members. Contributions are recognized as expense in EGAT’s statements of income in full amount and the accounting transactions of the fund have been consolidated in EGAT’s financial statements. On January 1, 1995, EGAT has set up the Provident Fund in accordance with the Provident Fund Act, B.E. 2530, which the Ministry of Finance prescribed the policy that the state owned enterprises contribute to the Provident Fund at the rate approved by the Ministry of Finance. The employees have the privilege to contribute to the Fund at the minimum rate of 3% of salaries but not more than the combined rate that EGAT contributes to the Fund. EGAT recognizes contributions paid to the provident fund as expenses in the reporting period. In addition, the provident fund is an entity that is legally separate from EGAT. 3.17 Deferred Income 3.17.1 Contributions for construction In case cash contributions received from EGAT's direct customers towards project construction, after completion of the project, assets will be owned by EGAT, are accounted for as deferred contributions and released to revenues over the useful lives of the related assets. In case cash contributions received from independent power producers towards project construction, after completion of the project, assets will be owned by EGAT, are accounted for as deferred contributions and released to revenues over the period of the power purchase contracts. In the event that independent power producers operate construction and assets of the project are transferred to EGAT after completion, those assets are accounted for as EGAT’s assets and matched with deferred contributions which are released to revenues over the period of the power purchase contracts. 3.17.2 Income from donation Income from donation, which is assets or cash received from governments and foreign financial institutions in forms of discount of interest or grants to be used for project development of EGAT as identified by donors, is recorded as deferred income under liabilities. Deferred income is recognized as revenue over the useful lives of fixed assets or, in case of cash from donation is recognized according to actual expenditures incurred. 3.18 Revenue from Electric Energy Sales Revenue from electric energy sales is recognized according to metered delivery units at the selling point under the power purchase agreement. Revenue from automatic tariff adjustment (Ft) is recognized according to the occurred Ft revenue in that period which comprised of the actual collected Ft revenue in accordance with the approval of the Energy Regulatory Commission (ERC) and recognized the accrued Ft revenue or unearned Ft revenue, which came from the difference of the calculated Ft price under the formula Ft with the collected Ft price in that period.
(TRANSLATION) - 26 -
Deferred revenue for electricity compensation has been occurred from receiving fuel costs or electricity compensation from fuel suppliers or other power producers, However, such compensation has not been approved by the ERC to be included in the tariff structure. EGAT will recognized that compensation as electricity revenue when ERC has approved it. 3.19 Revenue from Sales of Other Goods and Services 3.19.1 Revenue from sales of other goods such as the revenue from fuel providing to affiliates of EGAT and revenue from sales of Hydrogen gas, distilled water, chemicals and by products from generating electricity. It is recognized as income upon the delivery of products and when the significant risks and rewards of ownership are transferred to the customers. 3.19.2 Revenue from services such as revenue from running the machinery and power plant maintenance services, communications system and telecommunication services are recognized as income by percentage of completion at the statements of financial position date. 3.20 Interest Income Interest income is recognized on a time proportion basis and effective rate of return on assets. 3.21 Borrowing Costs Borrowing costs include interest expenses, commitment charges and other expenses on long term borrowings. Interest expenses of long term borrowings for acquisition of non - current assets that are work under construction period are recognized as capitalized, while after the completion of construction period are recognized as expenses. Interest expenses on borrowings for working capital are recognized as expenses in the period they incurred. 3.22 Related Parties Related parties refer to individuals or enterprises, which directly or indirectly manage or control, or are controlled by EGAT or are under common control, including subsidiaries and fellow subsidiaries. Besides, related parties refer to individuals or enterprises, including associated company and shareholder which have directly or indirectly vote and significant influence to EGAT, directors, management or employees of the EGAT. In considering each possible related parties relationship, EGAT attends to the substance of the relationship and not merely the legal form.
177
(TRANSLATION) - 27 -
178
3.23 Financial Instruments Financial assets presented in the financial statements include cash and cash equivalents, temporary investments, trade accounts receivable - others, and trade accounts receivable - related parties. Financial liabilities presented in the financial statements include trade accounts payable - others, trade accounts payable - related parties, other accounts payable and loans. The accounting policies applied to those particular items are separately disclosed in the individual policy statements associated with them. EGAT uses the financial instruments to mitigate foreign currency risk and fluctuations in interest rate. The main derivative financial instruments consisted of forward foreign exchange contracts and cross currency and interest rate swap agreements and cash flow hedge. Forward foreign exchange contracts The forward foreign exchange contracts are financial instruments to protect against the risk of exchange rate fluctuations, are agreements enabling EGAT to buy a specific amount of foreign currency at a pre - agreed rate on a fixed future time. The forward foreign exchange contracts are not recognized in the financial statements at agreement date but gains or losses will be recognized in the statements of income on any due dated as specified in the contracts. Cross currency and interest rate swap agreements The cross currency and interest rate swap agreements are financial instruments to protect against the risk of fluctuations in foreign exchange rate and interest rate associated with foreign currency borrowings. The swap agreements are not recognized in the financial statements at agreement date but the differential will be recognized in the statements of income on any due dated as specified in the contracts. Cash flow hedge Cash flow hedge is a hedging instrument of the exposure to variability in cash flows that is attributable to a particular risk associated with assets or liabilities. The portion of the gain or loss on the hedging instrument that is determined to be an effective hedge shall be recognized in other comprehensive income, and the ineffective portion of the gain or loss on the hedging instrument shall be recognized as other incomes or expenses in statements of income. 3.24 Capital Risk Management The subsidiary’s objectives of capital management are to safeguard the subsidiary’s ability to provide returns for shareholders, to be beneficial for other stakeholders and to maintain proper capital structure to reduce the cost of capital. 3.25 Operating Segments Disclosure EGAT and its subsidiaries have adopted Thai Financial Reporting Standard No.8, Operating Segments. The Operating Segments Disclosure is reported on the basis of internal reports of EGAT and its
(TRANSLATION) - 28 -
179
subsidiaries that are received and regularly reviewed by Chief Operating Decision Maker (CODM) in order to allocate resources to the segment and assess its performance. In addition, CODM of EGAT is board of directors of EGAT. EGAT and its subsidiaries engage in the single operating segment which is generating, acquiring, transmission or distribution electric energy, including other business concerning or related to the main activities of EGAT or joint arrangements with other parties to operate such activities. Thus, revenues, income from operations and assets presented in the financial statements are considered as operating segment reporting. 3.26 Accounting for an arrangement containing a lease Since January 1, 2014, EGAT and its subsidiaries have adopted Thai Financial Interpretation No. 4 (TFRIC 4), Determining whether an Arrangement contains a Lease. If an arrangement is determined to contain a lease, EGAT and its subsidiaries shall apply Thai Accounting Standard No. 17, Lease, to classify and account for the lease element of the arrangement. Management has reviewed and founded that there are 11 arrangements with IPPs and 8 arrangements with SPPs determined to be agreements containing finance leases. TFRIC 4 adoption has affected assets, liabilities and retained earnings of EGAT and its subsidiaries. Due to a change in accounting policy resulting from the initial application of TFRIC 4, EGAT and its subsidiaries shall apply the change retrospectively. 4. Thai Accounting Standards (TASs), Thai Financial Reporting Standards (TFRSs), Thai Standing Interpretations Committee and Thai Financial Reporting Interpretations promulgated by the Federation of Accounting Professions (FAP). Effective for accounting periods beginning on or after January 1, 2015 ¡
Thai Accounting Standard No. 1 (revised 2014)
Presentation of Financial Statements
¡
Thai Accounting Standard No. 2 (revised 2014)
Inventories
¡
Thai Accounting Standard No. 7 (revised 2014)
Statement of Cash Flows
¡
Thai Accounting Standard No. 8 (revised 2014)
Accounting Policies, Changes in Accounting Estimates and Errors
¡
Thai Accounting Standard No. 10 (revised 2014)
Events after the Reporting Period
¡
Thai Accounting Standard No. 11 (revised 2014)
Construction Contracts
¡
Thai Accounting Standard No. 12 (revised 2014)
Income Taxes
¡
Thai Accounting Standard No. 16 (revised 2014)
Property, Plant and Equipment
¡
Thai Accounting Standard No. 17 (revised 2014)
Leases
(TRANSLATION) - 29 -
180 ¡
Thai Accounting Standard No. 18 (revised 2014)
Revenue
¡
Thai Accounting Standard No. 19 (revised 2014)
Employee Benefits
¡
Thai Accounting Standard No. 20 (revised 2014)
Accounting for Government Grants and Disclosure of Government Assistance
¡
Thai Accounting Standard No. 21 (revised 2014)
The Effects of Changes in Foreign Exchange Rates
¡
Thai Accounting Standard No. 23 (revised 2014)
Borrowing Costs
¡
Thai Accounting Standard No. 24 (revised 2014)
Related Party Disclosures
¡
Thai Accounting Standard No. 26 (revised 2014)
Accounting and Reporting by Retirement Benefit Plans
¡
Thai Accounting Standard No. 27 (revised 2014)
Separate Financial Statements
¡
Thai Accounting Standard No. 28 (revised 2014)
Investments in Associates and Joint Ventures
¡
Thai Accounting Standard No. 29 (revised 2014)
Financial Reporting in Hyperinflationary Economies
¡
Thai Accounting Standard No. 33 (revised 2014)
Earnings per Share
¡
Thai Accounting Standard No. 34 (revised 2014)
Interim Financial Reporting
¡
Thai Accounting Standard No. 36 (revised 2014)
Impairment of Assets
¡
Thai Accounting Standard No. 37 (revised 2014)
Provisions, Contingent Liabilities and Contingent Assets
¡
Thai Accounting Standard No. 38 (revised 2014)
Intangible Assets
¡
Thai Accounting Standard No. 40 (revised 2014)
Investment Property
Thai Financial Reporting Standard No. 2 (revised 2014)
Share - based Payment
Thai Financial Reporting Standard No. 3 (revised 2014)
Business Combinations
Thai Financial Reporting Standard No. 5 (revised 2014)
Non - current Assets Held for Sale and Discontinued Operations
Thai Financial Reporting Standard No. 6 (revised 2014)
Exploration for and Evaluation of Mineral Resources
Thai Financial Reporting Standard No. 8 (revised 2014)
Operating Segments
¡
Thai Financial Reporting Standard No. 10
Consolidated Financial Statements
¡
Thai Financial Reporting Standard No. 11
Joint Arrangements
¡
Thai Financial Reporting Standard No. 12
Disclosure of Interest in Other Entities
¡
¡
¡
¡
¡
(TRANSLATION) - 30 ¡ ¡
¡
¡
¡
¡
¡
¡
¡
¡
¡
¡
¡
¡
¡
¡
¡
¡
181
Thai Financial Reporting Standard No. 13
Fair Value Measurement
Thai Standing Interpretation No. 10 (revised 2014)
Government Assistance - No Specific Relation to Operating Activities
Thai Standing Interpretation No. 15 (revised 2014)
Operating Leases - Incentives
Thai Standing Interpretation No. 25 (revised 2014)
Income Taxes - Changes in the Tax Status of an Entity or its Shareholders
Thai Standing Interpretation No. 27 (revised 2014)
Evaluating the Substance of Transactions Involving the Legal Form of a Lease
Thai Standing Interpretation No. 29 (revised 2014)
Service Concession Arrangements: Disclosures
Thai Standing Interpretation No. 31 (revised 2014)
Revenue - Barter Transactions Involving Advertising Services
Thai Standing Interpretation No. 32 (revised 2014)
Intangible Assets - Web Site Costs
Thai Financial Reporting Interpretation No. 1 (revised 2014)
Changes in Existing Decommissioning, Restoration and Similar Liabilities
Thai Financial Reporting Interpretation No. 4 (revised 2014)
Determining Whether an Arrangement Contains a Lease
Thai Financial Reporting Interpretation No. 5 (revised 2014)
Rights to Interests arising from Decommissioning, Restoration and Environmental Rehabilitation Funds
Thai Financial Reporting Interpretation No. 7 (revised 2014)
Applying the Restatement Approach under TAS 29 (revised 2014) Financial Reporting in Hyperinflationary Economies
Thai Financial Reporting Interpretation No. 10 (revised 2014)
Interim Financial Reporting and Impairment
Thai Financial Reporting Interpretation No. 12 (revised 2014)
Service Concession Arrangements
Thai Financial Reporting Interpretation No. 13 (revised 2014)
Customer Loyalty Programmes
Thai Financial Reporting Interpretation No. 14
TAS 19 (revised 2014) - The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction
Thai Financial Reporting Interpretation No. 15 (revised 2014)
Agreements for the Construction of Real Estate
Thai Financial Reporting Interpretation No. 17 (revised 2014)
Distributions of Non - cash Assets to Owners
(TRANSLATION) - 31 -
182
ยก
ยก
Thai Financial Reporting Interpretation No. 18 (revised 2014)
Transfers of Assets from Customers
Thai Financial Reporting Interpretation No. 20
Stripping Costs in the Production Phase of a Surface Mine
Effective for accounting periods on beginning or after January 1, 2016 Thai Financial Reporting Standard No.4 Insurance Contracts (revised 2014) The management of EGAT has assessed and determined the potential impact of adopting Thai Accounting Standards (TASs), Thai Financial Reporting Standards (TFRSs), Thai Standing Interpretations Committee and Thai Financial Reporting Interpretations, and concluded that there will have no material impact on the financial statements, except for the Thai Accounting Standard No.28 (revised 2014), Investments in Associates and Joint Ventures, Thai Financial Reporting Standard No. 10, Consolidated Financial Statements and Thai Financial Reporting Standard No. 11, Joint Arrangements, that was during considering guidelines and assessing the impact on the financial statements. ยก
5. The Effects on Adjustment of Financial Statements of EGAT, Subsidiaries and Associates Adjustment of financial statements and reclassification EGAT had adjusted the consolidated and separate financial statements, resulting from the adoption of Thai Financial Interpretation No. 4 (TFRIC 4), Determining whether an Arrangement contains a Lease, and Thai Accounting Standard No. 17, Lease. In addition, subsidiaries and jointly controlled entities have reclassified items in the financial statements in conformity with the presentation of items in the financial statements for the year ended December 31, 2014. Besides, EGAT has adjusted the accounting practice relating to right to utilize state property (Sirikit Dam) that EGAT has recorded right to utilize state property in the financial statements of EGAT since the year 1974. In such circumstance, EGAT shall make retrospective restatement until the current year in order that the carrying amount of assistance - right to utilize state property presented as a part of surplus is equal to the carrying amount of right to utilize state property.
183
(TRANSLATION) - 32 -
The Effects of consolidated and separate statement of financial position as at December 31, 2013 and January 1, 2013, consolidated and separate statements of income for the year ended December 31, 2013 and consolidated statements of comprehensive income for the year ended December 31, 2013 and balance brought forward of consolidated and separate statement of change in equity for the year ended December 31, 2014 and December 31, 2013 are summarized as follows: Unit : Million Baht Consolidated financial statement
Statements of financial position as at December 31, 2013 Other accounts receivable Investments in associates Investments in jointly controlled entities Finance lease assets Property, plant and equipment Deferred tax assets Other accounts payable Current portion of finance lease liabilities - Power plants Current portion of finance lease liabilities - Others Deferred tax liabilities Finance lease liabilities - Power plants Finance lease liabilities - Others Surplus from royalty on state property service Retained earnings - Unappropriated Other components of owners' equity Non - controlling interests
Before reclassified and restated
Reclassified
8,481.76 17,721.98 14,104.00 261,012.92 141.03 9,657.78
2.08 2.08
825.84 (2,447.74) 156,458.20 (23,667.09) (125.20) -
8,483.84 18,547.82 11,656.26 156,458.20 237,345.83 15.83 9,659.86
-
-
9,527.84
9,527.84
3.11 1,942.95 4.95
0.01 (0.01)
0.36 1,383.64 115,669.57 0.95
3.48 3,326.59 115,669.57 5.89
474.77 224,710.05 1,554.90 31,153.37
-
(254.55) 2,739.93 3.09 1,973.18
220.22 227,449.98 1,557.99 33,126.55
Restated
As reclassified and restated
184
(TRANSLATION) - 33 -
Unit : Million Baht Consolidated financial statement Before restated Restated As restated Statements of financial position as at January 1, 2013 Investments in associates Investments in jointly controlled entities Finance lease assets Property, plant and equipment Deferred tax assets Current portion of finance lease liabilities - Power plants Current portion of finance lease liabilities - Others Deferred tax liabilities Finance lease liabilities - Power plants Finance lease liabilities - Others Surplus from royalty on state property service Retained earnings - Unappropriated Other components of owners' equity Non-controlling interests
15,737.68 13,909.64 268,284.91 129.88 1.39 2,185.54 1.04 474.77 203,428.38 1,714.91 30,105.18
882.65 (2,216.98) 167,310.69 (25,763.06) (116.34) 8,924.47 0.11 1,252.99 119,970.69 0.28 (248.21) 8,402.86 0.57 1,793.20
16,620.33 11,692.66 167,310.69 242,521.85 13.54 8,924.47 1.50 3,438.53 119,970.69 1.32 226.56 211,831.24 1,715.48 31,898.38
Unit : Million Baht Consolidated financial statement Before restated Restated As restated Statements of income for the year ended December 31, 2013 Revenues Share of profit from investments in associates Share of profit from investments in jointly controlled entities Expenses Cost of electric energy sales Administrative expenses Other expenses Finance costs Income taxes Profit for the year Profit for the year
2,057.69 746.65
(59.33) (230.76)
1,998.36 515.89
456,479.01 16,006.78 240.18 4,416.81 1,293.73
(21,215.09) (23.02) 4,998.76 21,299.02 139.51
435,263.92 15,983.76 5,238.94 25,715.83 1,433.24
43,731.99
(5,489.27)
38,242.72
185
(TRANSLATION) - 34 -
Statements of comprehensive income for the year ended December 31, 2013 Share of other comprehensive income of associates Other comprehensive income for the year - net of taxes
Unit : Million Baht Consolidated financial statement Before restated Restated As restated
344.04 (735.84)
2.52 2.52
346.56 (733.32)
Statements of changes in owners' equity as at January 1, 2014 Surplus from royalty on state property service Retained earnings - Unappropriated Share of other comprehensive income (loss) of associates Non - controlling interests Total owners' equity
474.77 224,710.05 452.29 31,153.37 347,081.42
(254.55) 2,739.93 3.09 1,973.18 4,461.65
220.22 227,449.98 455.38 33,126.55 351,543.07
Statements of changes in owners' equity as at January 1, 2013 Surplus from royalty on state property service Retained earnings - Unappropriated Share of other comprehensive income of associates Non - controlling interests Total owners' equity
474.77 203,428.38 108.25 30,105.18 324,973.92
(248.21) 8,402.86 0.57 1,793.20 9,948.42
226.56 211,831.24 108.82 31,898.38 334,922.34
Unit : Million Baht Separated financial statement Before restated Restated As restated Statements of financial position as at December 31, 2013 Finance lease assets Current portion of finance lease liabilities - Power plants Finance lease liabilities - Power plants Surplus from royalty on state property service Retained earnings - Unappropriated
474.77 197,685.04
156,458.20 13,003.43 145,888.87 (254.55) (2,179.55)
156,458.20 13,003.43 145,888.87 220.22 195,505.49
Statements of financial position as at January 1, 2013 Finance lease assets Current portion of finance lease liabilities - Power plants Finance lease liabilities - Power plants Surplus from royalty on state property service Retained earnings - Unappropriated
474.77 178,958.40
167,310.69 10,517.30 153,665.57 (248.21) 3,376.03
167,310.69 10,517.30 153,665.57 226.56 182,334.43
(TRANSLATION) - 35 -
186
Unit : Million Baht Separate financial statement Restated Before restated As restated Statements of income for the year ended December 31, 2013 Expenses Cost of electric energy sales Other expenses Finance costs Profit for the year Profit for the year
461,444.79 894.55 2,739.44
(26,232.88) 4,998.76 26,796.03
435,211.91 5,893.31 29,535.47
37,786.81
(5,561.91)
32,224.90
Statements of changes in owners' equity as at January 1, 2014 Surplus from royalty on state property service Retained earnings - Unappropriated Total owners' equity
474.77 197,685.04 285,910.35
(254.55) (2,179.55) (2,434.10)
220.22 195,505.49 283,476.25
Statements of changes in owners' equity as at January 1, 2013 Surplus from royalty on state property service Retained earnings - Unappropriated Total owners' equity
474.77 178,958.40 267,246.04
(248.21) 3,376.03 3,127.82
226.56 182,334.43 270,373.86
6. Supplementary Information 6.1 Cash and Cash Equivalents comprise
Cash on hand Cash in banks current and saving accounts Fixed deposits not more than 3 months Government bonds not more than 3 months Fixed deposit receipts Total
Consolidated financial statement Dec 31, 14 Dec 31, 13 7.14 9.38 47,807.33 35,893.08 10,225.34 23,358.11 3,998.23 8,063.55 3,820.00 66,103.36 67,078.80
Unit : Million Baht Separate financial statement Dec 31, 14 Dec 31, 13 6.65 8.39 45,113.44 33,154.27 10,000.00 22,010.24 3,998.23 55120.09 59171.13
(TRANSLATION) - 36 -
187
6.2 Temporary investments comprise Consolidated financial statement Dec 31, 14 Dec 31, 13 Fixed deposits more than 3 months but not more than 12 months Fixed deposit receipts Debenture Government bonds more than 3 months Investments in trading securities Total 6.3 Trade Accounts Receivable - Others comprise
Receivable from electric energy sales Metropolitan Electricity Authority Provincial Electricity Authority Others Services and others receivable Total Less : Allowance for doubful accounts Balance
18,168.26 3,304.00 7,038.28 435.85 28,946.39
35,132.06 1,400.00 50.00 41.00 445.63 37,068.69
Unit : Million Baht Separate financial statement Dec 31, 14 Dec 31, 13 17,017.27 6,997.28 24,014.55
33,020.56 33,020.56
Unit : Million Baht Consolidated financial statement Separate financial statement Dec 31, 14 Dec 31, 13 Dec 31, 14 Dec 31, 13 27,234.60 30,569.51 4,782.72 62,586.83 682.01 63,268.84 (47.78) 63,221.06
24,273.44 27,050.93 3,789.23 55,113.60 826.30 55,939.90 (48.28) 55,891.62
27,234.60 30,569.51 4,746.55 62,550.66 228.79 62,779.45 (47.78) 62,731.67
24,273.44 27,050.93 3,756.39 55,080.76 261.85 55,342.61 (48.28) 55,294.33
188
(TRANSLATION) - 37 -
Trade accounts receivable - others can be analyzed by categories and outstanding period as follows:
Outstanding period Undue portion Overdue not more than 6 months Overdue more than 6 months to 1 year Overdue more than 1 year Total Less : Allowance for doubtful accounts Balance
Outstanding period Undue portion Overdue not more than 6 months Overdue more than 6 months to 1 year Overdue more than 1 year Total Less : Allowance for doubtful accounts Balance
Unit: Million Baht Consolidated financial statement Dec 31, 14 Dec 31, 13 Electric Service and Total energy sales others 61,061.77 620.48 61,682.25 55,596.69 1,251.46 10.98 1,262.44 292.09 273.60 62,586.83
0.08 50.47 682.01
0.08 324.07 63,268.84
0.07 51.05 55,939.90
62,586.83
(47.78) 634.23
(47.78) 63,221.06
(48.28) 55,891.62
Electric energy sales 61,025.60 1,251.46
Unit: Million Baht Separate financial statement Dec 31, 14 Dec 31, 13 Service and Total others 177.05 61,202.65 54,999.40 1.19 1,252.65 292.09
273.60 62,550.66
0.08 50.47 228.79
0.08 324.07 62,779.45
0.07 51.05 55,342.61
62,550.66
(47.78) 181.01
(47.78) 62,731.67
(48.28) 55,294.33
189
(TRANSLATION) - 38 -
6.4 Related Parties Transactions The companies that have transactions with EGAT as at December 31, 2014 are as follows: Company
Country of Incorporation/ Nationality
Relationship
EGAT International Co., Ltd.
Thailand
Subsidiary, EGAT has 100% shareholding
EGAT Diamond Service Co., Ltd.
Thailand
Subsidiary, EGAT has 45% shareholding
Ratchaburi Electricity Generating Holding Plc. Thailand
Subsidiary, EGAT has 45% shareholding
District Cooling System and Power Plant
Jointly controlled entity of EGAT, EGAT has 35%
Thailand
Co., Ltd.
shareholding
Electricity Generating Plc.
Thailand
Associated company, EGAT has 25.41% shareholding
Ratchaburi Electricity Generating Co., Ltd.
Thailand
Subsidiary of Ratchaburi Electricity Generating Holding Plc.
Ratchaburi Energy Co., Ltd.
Thailand
Subsidiary of Ratchaburi Electricity Generating Holding Plc.
RATCH - Lao Services Co., Ltd.
Lao PDR
Subsidiary of Ratchaburi Electricity Generating Holding Plc.
RH International Corporation Ltd.
Thailand
Subsidiary of Ratchaburi Electricity Generating Holding Plc.
RATCH O&M Co., Ltd.
Thailand
Subsidiary of Ratchaburi Electricity Generating Holding Plc.
Tri Energy Co., Ltd.
Thailand
Subsidiary of Ratchaburi Electricity Generating Holding Plc.
Ratchaburi Alliances Co.,Ltd
Thailand
Subsidiary of Ratchaburi Electricity Generating Holding Plc.
Khanom Electricity Generating Co., Ltd.
Thailand
Related party of EGAT
EGCO Engineering and Services Co., Ltd.
Thailand
Related party of EGAT
Xayaburi Power Co., Ltd.
Lao PDR
Related party of EGAT
Gulf Electric Plc.
Thailand
Related party of EGAT
BLCP Power Co., Ltd.
Thailand
Related party of EGAT
Thailand
Related party of EGAT
Yanhee EGCO Holding Co., Ltd.
Thailand
Related party of EGAT
Solarco Co., Ltd.
Thailand
Related party of EGAT
Ratchaburi Power Co., Ltd.
Thailand
Related party of EGAT
Hongsa Power Co., Ltd.
Lao PDR
Related party of EGAT
Phufai Mining Co., Ltd.
Lao PDR
Related party of EGAT
RATCH - Australia Corporation Ltd.
Australia
Related party of EGAT
Nam Ngiep1 Power Co., Ltd.
Lao PDR
Related party of EGAT
(In the process of liquidation)
Eastern Water Resources Development and Management Plc.
190
(TRANSLATION) - 39 -
Related Parties Transactions the details are as follows: 6.4.1 Trade accounts receivable - related parties comprise
Subsidiaries Associates Jointly controlled entity Other related parties Total trade accounts receivable - related parties
Consolidated financial statement Dec 31, 14 Dec 31, 13 6.21 691.97 4.71 5.29 2,527.59 2,390.39 2,538.51
3,087.65
Unit : Million Baht Separate financial statement Dec 31, 14 Dec 31, 13 357.33 553.01 6.21 691.97 7.24 8.15 2,527.59 2,390.39 2,898.37
3,643.52
Trade accounts receivable - related parties can be analyzed by categories and aging schedule as follows: Consolidated financial statement Dec 31, 14 Dec 31, 13 2,538.51 3,087.65 Undue portion Overdue not more than 6 months Total trade accounts receivable - related parties 2,538.51 3,087.65
Unit : Million Baht Separate financial statement Dec 31, 14 Dec 31, 13 2,888.34 3,643.52 10.03 2,898.37
3,643.52
6.4.2 Long - term loans to related parties Long - term loans to related parties in consolidated financial statement are the transactions of the group of EGAT’s subsidiaries comprise of: Unit : Million Baht Consolidated financial statement Dec 31, 14 Dec 31, 13 Current portion of long - term loans to related parties 43.20 Total 43.20
191
(TRANSLATION) - 40 -
6.4.3 Trade accounts payable - related parties comprise
Subsidiaries Associates Jointly controlled entity Other related parties Total trade accounts payable - related parties
Consolidated financial statement Dec 31, 14 Dec 31, 13 226.51 1,064.11 87.02 78.01 7,250.34 6,480.16 7,563.87
7,622.28
Unit : Million Baht Separate financial statement Dec 31, 14 Dec 31, 13 10,357.38 8,283.45 226.51 1,064.11 133.88 120.01 7,250.34 6,480.16 17,968.11
15,947.73
6.4.4 Long - term loans from related parties Long - term loans from related parties in consolidated financial statement are the transactions of the group of EGAT’s subsidiaries comprise of: Unit : Million Baht Consolidated financial statement Dec 31, 14 Dec 31, 13 Long - term loans from related parties 1,095.46 1,186.30 Total 1,095.46 1,186.30
(TRANSLATION) - 41 -
192
6.4.5 Revenues and expenses - related parties comprise Consolidated financial statement 2014 2013 Revenues Revenue from electric energy sales Subsidiary Associates Other related parties Revenue from sales of other goods and services Subsidiaries Associates Jointly controlled entity Other related parties Expenses Cost of electric energy sales Subsidiaries Jointly controlled entity
36.70 71.06
3,355.89 57.28 15,371.15
20.71 87.26
7,239.61 56.31 14,062.00
-
-
714.34
655.55
-
-
Unit : Million Baht Separate financial statement 2014 2013
205.03 36.70 71.06
190.28 20.71 87.26
2,939.31 3,355.89 88.13 15,371.15
2,702.82 7,239.61 86.63 14,062.00
17.23 1,098.98
18.18 1,008.54
2,545.40 3,332.26 99.45 15,123.27
2,232.04 7,223.80 90.95 13,840.96
Cost of sales of other goods and services Subsidiaries Associates Jointly controlled entity Other related parties
3,332.26 64.64 15,123.27
7,223.80 59.12 13,840.96
(TRANSLATION) - 42 -
193
6.4.6 Executives' remunerations For the year ended December 31, 2014, Executives' remunerations are as follows:
Directors' remunerations Meeting remuneration and bonuses Management's remunerations Salaries, bonuses and other short - term employee benefits Post - employee benefit and other long - term employee benefits Total
Consolidated financial statement 2014 2013
Unit : Million Baht Separate financial statement 2014 2013
45.01 45.01
43.62 43.62
2.13 2.13
3.18 3.18
209.28
200.66
54.12
48.82
16.20 225.48 270.49
10.97 211.63 255.25
1.35 55.47 57.60
0.94 49.76 52.94
6.5 Accrued / Surplus Revenue from Electric Energy Sales According to Automatic Tariff Adjustment (Ft) and Deferred Revenue for Electricity Compensation As at January 1, 2014, EGAT has the accrued revenue from electric energy sales according to automatic tariff adjustment (Ft) in the amount of Baht 529.60 million. As at January 9, May 8 and September 8, 2014, ERC has approved the Ft for retail of January - April 2014 which was 59.00 satang per unit and May - August 2014 and September - December 2014 which was 69.00 satang per unit. However, the cost of fuel and electric energy purchased in such period are lower than the estimated Ft calculating formula, as of December 31, 2014, EGAT had surplus Ft revenue of Baht 4,872.38 million. EGAT had recorded deferred revenue for electricity compensation, which had been presented in current liabilities as at January 1, 2014 in the amount of Baht 2,231.34 million and as at December 31, 2014 in amount of Baht 3,386.83 million. Deferred revenue for electricity compensation had increased by Baht 1,155.49 million due to the fact that EGAT had received more compensation for the fuel or electric energy from fuel suppliers or other electric energy producers.
194
(TRANSLATION) - 43 -
6.6 Other Accounts Receivable comprise Consolidated financial statement Dec 31, 14 Dec 31, 13 Employee accounts receivable Other accounts receivable Less : Allowance for doubtful accounts Advances and Prepaid Accrued revenues Input tax Balance
217.90 661.16 (12.37) 1,754.69 242.83 4,606.87 7,471.08
78.69 348.00 (19.68) 2,965.77 316.03 4,795.03 8,483.84
6.7 Materials and Supplies comprise Consolidated financial statement Dec 31, 14 Dec 31, 13 Fuel oil for power plant Lignite stock Spare parts, other materials and supplies Less : Allowance for obsolescence Balance
6.8 Derivative Assets comprise
Unit : Million Baht Separate financial statement Dec 31, 14 Dec 31, 13 214.06 498.64 (12.37) 1,582.09 173.03 4,599.08 7,054.53
76.33 219.44 (19.68) 2,643.20 285.94 4,777.63 7,982.86
Unit : Million Baht Separate financial statement Dec 31, 14 Dec 31, 13
5,890.51 1,550.94 12,175.61 (6,233.05)
5,826.34 1,559.32 11,613.04 (5,894.86)
4,769.06 1,550.94 9,698.04 (5,292.70)
4,785.72 1,559.32 9,335.19 (5,146.98)
13,384.01
13,103.84
10,725.34
10,533.25
Unit : Million Baht Consolidated financial statement Separate financial statement Dec 31, 14 Dec 31, 13 Dec 31, 14 Dec 31, 13 0.12 0.12 Foreign currency forward contracts Balance 0.12 0.12
195
(TRANSLATION) - 44 -
6.9 Investment in Subsidiaries, Associates and Jointly Controlled Entities 6.9.1 Details of subsidiaries, associated company and jointly controlled entity Company
Country of incorporation/ Nationality
Subsidiaries EGAT International Co., Ltd. Thailand EGAT Diamond Service Co., Ltd. Thailand Ratchaburi Electricity Generating Holding Plc. Associated company Electricity Generating Plc. Jointly controlled entity District Cooling System and Power Plant Co., Ltd.
Thailand
Business
Generation and supply of electricity Gas turbine maintenance including components and spare parts Generation and supply of electricity
Shareholding (%) Dec 31, 14 Dec 31, 13
100
100
45
45
45
45
Thailand
Generation and supply of electricity
25.41
25.41
Thailand
Generation and supply of electricity and chilled water
35
35
(TRANSLATION) - 45 -
196
6.9.2 Details of subsidiaries, associates and jointly controlled entities : Ratchaburi Electricity Generating Holding Plc. Company
Country of incorporation/ Nationality
Direct subsidiaries Ratchaburi Electricity Generating Co., Ltd. Thailand Ratchaburi Energy Co., Ltd. Ratchaburi Gas Co., Ltd. (Liquidation) Ratch Udom Power Co., Ltd. (Liquidation) RATCH - Lao Services Co., Ltd. RH International Corporation Ltd. RATCH O&M Co., Ltd. Tri Energy Co., Ltd. (In liquidation process) Ratchaburi Alliances Co., Ltd. Indirect subsidiaries Ratchaburi Alliances Co., Ltd. RH International (Mauritius) Corporation Ltd. RH International (Singapore) Corporation Ltd. Sustainable Energy Corporation Co., Ltd. Khao Kor Wind Power Co., Ltd. RATCH - Australia Corporation Ltd. and the group of the company Ban Bueng Power Co., Ltd. (Liquidation) Eastern IPP Co., Ltd. (Liquidation) Eastern Power Generation Co., Ltd. (Liquidation)
Business
Shareholding (%) Dec 31, 14 Dec 31, 13
Thailand
Generation and supply of electricity and investment in electricity business Power plant development and operation and investment in electricity business Investment in electricity business
Thailand
Investment in electricity business
Lao PDR Thailand Thailand
Operation and maintenance services Investment in electricity business Operation and maintenance services
100 100 100
100 100 100
Thailand
Generation and supply of electricity
100
-
Thailand
Investment in electricity business
100
-
Thailand Mauritius
Investment in electricity business Investment in electricity business in foreign country Investment in electricity business in foreign country Investment in electricity business Generation and supply of electricity Power plant development and operation and investment in electricity business Generation and supply of electricity Generation and supply of electricity Generation and supply of electricity
-
100
100
100
100 -
100 55.18 55.18
80 -
80 100 100 100
Thailand
Singapore Thailand Thailand Australia Thailand Thailand Thailand
100
100
100 -
100 100
-
100
(TRANSLATION) - 46 -
Company
Associates First Korat Wind Co., Ltd. K.R. Two Co., Ltd.
Country of incorporation/ Nationality
197 Business
Shareholding (%) Dec 31, 14 Dec 31, 13
Thailand Thailand
Generation and supply of electricity Generation and supply of electricity
20 20
20 20
Tri Energy Co., Ltd.
Thailand
Generation and supply of electricity
-
50
Ratchaburi Power Co., Ltd.
Thailand
Generation and supply of electricity
25
25
Chubu Ratchaburi Electric Services Co., Ltd. Thailand
Operation and maintenance services
50
50
South East Asia Energy Ltd. and subsidiary
Thailand
Investment in electricity business
33.33
33.33
Hongsa Power Co., Ltd.
Lao PDR
Generation and supply of electricity
40
40
Phufai Mining Co., Ltd.
Lao PDR
Generation and supply of coal
37.50
37.50
Nam Ngum 3 Power Co., Ltd.
Lao PDR
Generation and supply of electricity
25
25
Nava Nakorn Electricity Generating Co., Ltd. Thailand
Generation and supply of electricity and steam
40
40
Ratchaburi World Cogeneration Co., Ltd.
Thailand
Generation and supply of electricity and steam
40
40
Solarta Co., Ltd.
Thailand
Generation and supply of electricity
49
49
Solar Power (Korat 3) Co., Ltd.
Thailand
Generation and supply of electricity
40
40
Solar Power (Korat 4) Co., Ltd.
Thailand
Generation and supply of electricity
40
40
Solar Power (Korat 7) Co., Ltd.
Thailand
Generation and supply of electricity
40
40
Songkhla Biomass Co., Ltd.
Thailand
Generation and supply of electricity
40
40
KK Power Co., Ltd.
Cambodia
Generation and supply of electricity
50
50
Songkhla Biofuel Co., Ltd.
Thailand
Supply the biomass fuel
40
40
Sukhothai Energy Co., Ltd.
Thailand
Development and operation in electricity business
-
25
Xe-Pien Xe-Nam Noy Power Co., Ltd.
Lao PDR
Generation and supply of electricity
25
25
Ayudhya Power Co., Ltd.
Thailand
Generation and supply of electricity
45
45
Ratchaburi Cogeneration Co., Ltd.
Thailand
Generation and supply of electricity and steam
35
-
Oversea Green Energy Co., Ltd.
Thailand
Power plant management services
60
-
Perth Power Partnership (Kawinana)
Australia
Generation and supply of electricity
30
30
RICI International Investment Co., Ltd.
Singapore
Investment in electricity business in foreign country
60
-
Jointly controlled entities
On November 21, 2014, RH International (Singapore) Corporation Ltd., an indirect subsidiary of a subsidiary of EGAT registered the establishment of RICI International Investment Co., Ltd. with authorized share capital in the amount of SGD 100. As at December 31, 2014, such indirect subsidiary has the obligation to pay up share capital according to proportion of the investment of 60 percent in the amount of SGD 60.
(TRANSLATION) - 47 -
198
6.9.3 Investments in associates and jointly controlled entities in the consolidated financial statements
Company Associates 1. Electricity Generating Plc. 2. First Korat Wind Co., Ltd. 3. K.R. Two Co., Ltd. 4. Nam Ngiep1 Power Co., Ltd. Total Jointly controlled entities 1. Tri Energy Co., Ltd. 2. Ratchaburi Power Co., Ltd. 3. Chubu Ratchaburi Electric Services Co., Ltd. 4. South East Asia Energy Ltd. and its subsidiary 5. Hongsa Power Co., Ltd. 6. Phufai Mining Co., Ltd. 7. Nam Ngum 3 Power Co., Ltd. 8. Nava Nakorn Electricity Generating Co., Ltd. 9. Ratchaburi World Cogeneration Co., Ltd. 10. Solarta Co., Ltd. 11. Solar Power (Korat 3) Co., Ltd. 12. Solar Power (Korat 4) Co., Ltd. 13. Solar Power (Korat 7) Co., Ltd. 14. Songkhla Biomass Co., Ltd. 15. KK Power Co., Ltd. 16. Songkhla Biofuel Co., Ltd. 17. Sukhothai Energy Co., Ltd. 18. Xe-Pien Xe-Nam Noy Power Co., Ltd. 19. Ayudhya Power Co., Ltd. 20. Ratchaburi Cogeneration Co., Ltd. 21. Oversea Green Energy Co., Ltd. 22. Perth Power Partnership (Kwinana) Total Grand Total
Shareholding (%) Dec 31, 14 Dec 31, Dec 31, Cost Equity 14 13 Method Method 25.41 20.00 20.00 30.00
25.41 20.00 20.00 30.00
1,587.55 399.20 365.40 926.16 3,278.31
17,659.36 530.69 427.69 643.93 19,261.67
25.00
50.00 25.00
1,831.25
50.00
50.00
33.33 40.00 37.50 25.00
Unit : Million Baht Dividend
Dec 31, 13 Cost Equity Dec 31, 14 Dec 31, 13 Method Method 1,587.55 17,275.71 836.08 399.20 514.92 112.00 365.40 442.71 124.10 302.31 314.48 2,654.46 18,547.82 1,072.18
802.64 802.64
4,054.63
1,809.21 1,831.25
2,163.16 3,755.44
400.00
341.86 475.00
10.00
79.27
10.00
79.39
20.00
20.00
33.33 40.00 37.50 25.00
2,202.25 983.12 0.63 0.45
2,993.55 0.27 -
2,202.25 983.12 0.63 0.45
2,804.75 0.35 -
72.67 -
57.26 -
40.00
40.00
400.80
368.58
160.80
139.54
-
-
40.00 49.00 40.00 40.00 40.00 40.00 50.00 40.00 -
40.00 49.00 40.00 40.00 40.00 40.00 50.00 40.00 25.00
500.00 545.96 75.50 77.96 74.20 80.00 15.44 0.40 -
526.37 808.80 109.41 106.38 101.93 71.83 0.37 -
500.00 545.96 71.30 74.07 70.00 67.50 15.44 0.40 20.00
522.77 745.49 89.26 91.90 89.70 64.17 0.38 1.69
105.43 7.93 12.51 15.93 -
7.34 7.84 8.06 -
25.00 45.00 35.00 60.00 30.00
25.00 45.00 30.00
675.32 18.10 8.75 0.60 618.53 8,119.26 11,397.57
647.72 393.31 382.73 13.93 18.10 17.93 8.51 0.59 642.88 618.53 707.61 72.46 60.26 10,535.02 9,392.32 11,656.26 706.93 977.62 29,796.69 12,046.78 30,204.08 1,779.11 1,780.26
(TRANSLATION) - 48 -
199
During the year 2014, a subsidiary of EGAT had paid up the increased share capital of an associated company - Nam Ngiep 1 Power Co., Ltd. and jointly controlled entities - Nava Nakorn Electricity Generating Co., Ltd., Solar Power (Korat 3) Co., Ltd., Solar Power (Korat 4) Co., Ltd., Solar Power (Korat 7) Co., Ltd., Songkhla Biomass Co., Ltd. and Xe - Pien Xe - Nam Noy Power Co., Ltd. Besides, a subsidiary of EGAT increased investment in jointly controlled entities - Ratchaburi Cogeneration Co., Ltd. and Oversea Green Energy Co., Ltd. In addition, EGAT had the recognition of impairment for investment in KK Power Co., Ltd. in the amount of Baht 15.16 million. On August 4, 2014, the liquidation of Tri Energy Co., Ltd. was registered with the Department of Business Development, Ministry of Commerce. 6.9.4 Investments in subsidiaries, associated company and jointly controlled entity in the separate financial statements Company Subsidiaries 1. EGAT International Co., Ltd. 2. EGAT Diamond Service Co., Ltd. 3. Ratchaburi Electricity Generating Holding Plc. Total Associated company 1. Electricity Generating Plc. Total Jointly controlled entity 1. District Cooling System and Power Plant Co., Ltd. Total Grand Total
Unit : Million Baht Shareholding (%) Cost Method Dividend Dec 31, 14 Dec 31, 13 Dec 31, 14 Dec 31, 13 Dec 31, 14 Dec 31, 13 100.00 45.00
100.00 45.00
4,362.00 280.35
3108.00 280.35
-
-
45.00
45.00
6,525.00 11,167.35
6,525.00 9,913.35
1,481.18 1,481.18
1,481.18 1,481.18
25.41
25.41
1,587.55 1,587.55
1,587.55 1,587.55
836.08 836.08
802.64 802.64
35.00
35.00
584.50 584.50 13,339.40
584.50 584.50 12,085.40
2,317.26
2,283.82
(TRANSLATION) - 49 -
200
6.9.5 Movements in investments in the consolidated financial statements and the separate financial statements 6.9.5.1 Movements in investments in associates and jointly controlled entities accounted for under the equity method in the consolidated financial statements
Unit : Million Baht Dec 31, 14 Dec 31, 13
Balance at the beginning (Before adjustment) Change in accounting policy Balance at the beginning (After adjustment) Share of profit from investments - equity method Additional payment of share capital in jointly controll entities Additional payment of share capital in associates Sale of investments in jointly controlled entities Gain from sale of investments in jointly controlled entities Transfer development cost to investment Allowance for impairment Investments in jointly controlled entities before status change Available - for - sale investments Currency translation differences of the company settled in foreign country Loss from cash flow hedge Dividend received Exchange rate adjustment Others Balance at the end (Before adjustment) Change in fair value Balance at the end (After adjustment)
30,204.08 30,204.08 2,379.00 417.28 623.84 (10.94) 10.94 138.87 (2,163.16) (88.41)
29,647.32 (1,334.34) 28,312.98 2,804.34 133.52 367.08 (20.80) 392.53 (15.16) (42.28)
25.03 (105.47) (1,779.11) (59.42) 204.16 29,796.69 29,796.69
404.45 (1,780.26) (64.76) 30,491.64 (287.56) 30,204.08
6.9.5.2 Movements in investments in subsidiaries, associated company and jointly controlled entity accounted for under the cost method in the separate financial statements
Balance at the beginning Additional investments Balance at the end
Unit : Million Baht Dec 31, 14 Dec 31, 13 12,085.40 9,295.00 1,254.00 2,790.40 13,339.40 12,085.40
Accumulated depreciation / Amortization as at Jan 1, 14 Effects on change in accounting policy adjustment Accumulated depreciation / Amortization as at Jan 1, 14 (Adjusted) Depreciation/Amortization for the year Acquired from business combination Exchange rate differences from currency translation Reclassification Disposal / write - off Accumulated depreciation / Amortization as at Dec 31, 14 Accumulated impairment As at Jan 1, 14 Increase (Decrease) during the year As at Dec 31, 14 Net book value As at Dec 31, 13 As at Dec 31, 14
Cost as at Jan 1, 14 Effects on change in accounting policy adjustment Cost as at Jan 1, 14 (Adjusted) Increase during the year Acquired from business combination Transferred from work under construction Exchange rate differences from currency translation Reclassification Disposal / write - off Cost as at Dec 31, 14
3.02 (0.41) 71.92
(18,790.38)
(1.18) (1.18)
-
-
-
10,502.19 10,585.75
(17,819.59) (1,045.32) -
-
8,574.05 8,948.78
301.35
-
18,754.23 18,530.77
-
(10,563.48)
-
(10,110.02) (453.46) -
-
(10,110.02)
29,094.25
(20.23) 0.64 (84.50) 29,377.31
(11.41) 8,948.78
(18,120.94)
229.65
1,138.20
-
-
28,864.25 0.35 -
(457.93) 28,322.96 20.24 -
8,574.05 266.72 119.42
28,864.25
Reservoirs and dams
28,780.89
Structures
8,574.05
Land
6.10 Property, Plant and Equipment comprise
96,359.49 116,477.77
(899.84) (134.18) (1,034.02)
(187,014.37)
818.30 (3.39) 4,704.68
(181,260.15) (11,139.56) (134.25)
30,262.91
(211,523.06)
(1,814.35) 9.54 (4,710.97) 304,526.16
31,518.74
(56,256.01) 278,519.48 747.09 256.63
334,775.49
Power plants
14,249.73 14,028.14
-
(21,442.91)
-
(18,039.60) (3,403.31) -
-
(18,039.60)
35,471.05
1,455.61
32,289.33 1,726.11 -
32,289.33
Equipment for power plants
169.62 138.66
-
(729.16)
21.48
(717.91) (32.73) -
-
(717.91)
(26.18) 867.82
6.47
887.53 -
79,698.46 81,059.93
-
(81,760.19)
0.37 611.49
(76,718.98) (5,653.07) -
-
(76,718.98)
(5.67) (756.06) 162,820.12
7,016.82
156,417.44 147.59 -
1,180.13 1,087.08
-
(5,852.23)
158.89
(5,735.34) (275.78) -
-
(5,735.34)
(160.68) 6,939.31
166.71
6,915.47 17.81 -
1,515.32 1,505.06
-
(4,669.14)
-
(4,545.14) (124.00) -
-
(4,545.14)
6,174.20
113.74
6,060.46 -
1,285.77 1,255.45
-
(5,294.42)
0.58 38.92
(5,101.01) (232.91) -
-
(5,101.01)
(0.94) (38.92) 6,549.87
0.27
6,386.78 202.68 -
568.81 534.57
-
-
(2,455.13)
0.12 189.60
(2,466.43) (168.50) (9.92)
-
(2,466.43)
(0.12) (191.15) 2,989.70
-
3,035.24 132.60 13.13
-
-
Unit : Million Baht
2,698.38 2,743.01
-
(7,821.09)
0.12 2.73 374.62
(7,441.32) (708.28) (48.96)
(0.04)
(7,441.28)
(0.22) (3.45) (382.01) 10,564.10
135.39
0.33 10,139.70 622.68 52.01
1,799.45 3,187.27
-
-
(2,805.01)
2,206.62
(2,438.90) (2,572.73) -
-
(2,438.90)
(2,206.63) 5,992.28
3,960.56
4,238.35 -
(9.79) (8.39)
-
-
12.59
-
11.19 1.40 -
(2,336.04)
2,347.23
(20.98)
-
4,818.35 (20.98) -
237,345.84 260,073.85
(901.02) (134.18) (1,035.20)
(349,227.77)
821.44 8,378.22
(332,426.05) (25,808.25) (193.13)
28,228.18
(360,654.23)
(1,846.21) (8,557.10) 610,336.82
45,742.16
(51,895.26) 570,672.91 3,883.87 441.19
Other Deferred Adjustment Total materials charges of major in consolidated and supplies inspection fee from profit on sale of power plants 3,035.24 10,139.37 4,238.35 (4,839.33) 622,568.17
Vehicles
-
(42.85)
-
(42.85) -
-
(42.85)
42.85
-
42.85 -
Consolidated financial statement Control Transmission Communication Coal Machinery Large - sized system system system handling spare parts system for mine equipment 887.53 156,417.44 6,915.47 6,060.46 6,386.78 42.85
(TRANSLATION) - 50 -
201
Accumulated depreciation / Amortization as at Jan 1, 14 Depreciation/Amortization for the year Reclassification Disposal / write - off Accumulated depreciation / Amortization as at Dec 31, 14 Accumulated impairment As at Jan 1, 14 As at Dec 31, 14 Net book value As at Dec 31, 13 As at Dec 31, 14
Cost as at Jan 1, 14 Increase during the year Transferred from work under construction Reclassification Disposal / write - off Cost as at Dec 31, 14
28,864.25 0.35
229.65 29,094.25
27,560.01 13.46
1,137.45 (0.30) (84.50) 28,626.12
7,213.69 266.72
7,480.41
-
18,754.23 18,530.77
(18,637.86)
-
9,861.74 9,988.26
-
-
7,213.69 7,480.41
(10,563.48)
(17,698.27) (1,011.68) 0.17 71.92
-
(10,110.02) (453.46) -
Reservoirs and dams
Structures
Land
81,566.35 103,031.58
(15.33) (15.33)
(176,337.06)
(170,977.11) (10,059.66) (3.39) 4,703.10
31,517.74 9.54 (4,708.39) 279,383.97
252,558.79 6.29
Power plants
14,233.91 14,012.31
-
(21,442.91)
(18,039.59) (3,403.32) -
1,455.61 35,455.22
32,273.50 1,726.11
Equipment for power plants
169.62 138.66
-
(729.16)
(717.91) (32.73) 21.48
6.47 (26.18) 867.82
887.53 -
Control system
79,698.46 81,059.93
-
(81,760.19)
(76,718.98) (5,653.07) 0.37 611.49
7,016.82 (5.67) (756.06) 162,820.12
156,417.44 147.59
1,180.13 1,087.08
-
(5,852.23)
(5,735.34) (275.78) 158.89
166.71 (160.68) 6,939.31
6,915.47 17.81
1,515.32 1,505.06
-
(4,669.14)
(4,545.14) (124.00) -
113.74 6,174.20
6,060.46 -
Separate financial statement Transmission Communication Coal system system handling system
(TRANSLATION) - 51 -
1,111.37 1,095.91
-
(5,262.80)
(5,088.01) (213.71) 38.92
(38.92) 6,358.71
-
-
(42.85)
(42.85) -
42.85
560.12 528.91
-
(2,415.85)
(2,431.03) (161.87) 0.12 176.93
(0.12) (177.59) 2,944.76
2,392.93 2,463.08
-
(7,488.15)
(7,198.37) (620.66) 2.73 328.15
105.28 (3.45) (332.98) 9,951.23
1,799.45 3,187.27
-
(2,805.01)
(2,438.90) (2,572.73) 2,206.62
3,960.56 (2,206.63) 5,992.28
Machinery Large - sized Vehicles Other Deferred spare parts materials charges of major for mine and supplies inspection fee equipment 6,199.38 42.85 2,991.15 9,591.30 4,238.35 198.25 131.32 591.08 -
220,057.32 244,109.23
(15.33) (15.33)
(338,006.69)
(321,741.52) (24,582.67) 8,317.50
45,710.03 (8,491.93) 582,131.25
541,814.17 3,098.98
Total
Unit : Million Baht
202
203
(TRANSLATION) - 52 -
As at December 31, 2014 and 2013, EGAT has buildings and equipment fully accumulated depreciation, while being in use. The cost value of these assets before deduction of accumulated depreciation were Baht 106,615.07 million and Baht 97,256.68 million respectively, which comprise
Structures Reservoirs and dams Power Plants Equipment for power plants Control system Transmission system Communication system Coal handling system Machinery Large - sized spare parts for mine equipment Vehicles Other materials and supplies Total
Unit : Million Baht Separate financial statement Dec 31, 14 Dec 31, 13 9,503.82 8,998.16 15.50 8.40 53,674.54 48,185.47 9,634.43 8,123.79 457.59 449.97 15,131.13 13,579.83 4,403.08 4,080.70 3,260.52 3,224.80 3,734.90 4,030.90 42.85 42.85 1,925.01 1,868.45 4,831.70 4,663.36 106,615.07 97,256.68
As at December 31, 2014, Nong Jok power plant - unit 2 and 3 with some equipments of Lankrabue power plant - unit 11 which were sent to Japan for alleviating the electricity shortage during the summer of 2011 due to a natural disaster Tsunami, have fully accumulated depreciation. The remaining net book value are Baht 47 and Baht 2, respectively.
Transferred to property, plant, equipment and others Transferred to work under construction of power pants and transmission system Transferred to materials for work under construction of transmission system Balance as at Dec 31, 14
Balance as at Jan 1, 14 Increase during the year
Transferred to property, plant, equipment and others Transferred to work under construction of power pants and transmission system Transferred to materials for work under construction of transmission system Balance as at Dec 31, 14
Balance as at Jan 1, 14 Increase during the year Acquire from business combination Reclassification
(229.82)
-
463.61
(1,141.61)
-
1,981.20
12,491.38
-
(32,958.48)
35,192.89 10,256.57 0.40 45,449.86
-
-
643.62 49.81 693.43
(229.82)
-
463.61
1,613.53 1,502.87 3,116.40
(1,135.20)
-
1,981.20
12,487.25
-
(32,957.48)
35,189.72 10,255.01 45,444.73
25.84
-
(5.14)
24.04 6.94 30.98
403.69
-
(166.71)
321.03 249.37 570.40
749.39
-
(116.30)
624.42 241.27 865.69
3.77
-
(0.27)
4.04 4.04
19,619.56
-
(7,020.82)
18,223.01 8,417.37 26,640.38
403.69
-
(166.71)
321.03 249.37 570.40
749.39
-
(116.30)
624.42 241.27 865.69
7.74
-
(112.82)
117.11 3.45 120.56
599.96
-
(3,960.56)
2,337.12 2,223.40 4,560.52
599.96
-
(3,960.56)
2,337.12 2,223.40 4,560.52
2,238.48
(2,079.63)
(5.18)
1.30
-
(50.14)
2,238.48
(2,079.63)
(5.18)
(717.96) 45,605.00
(8,100.15)
(45,798.72)
(717.96) 7,012.89
(6,020.52)
-
(717.96) 45,590.91
(8,100.15)
(45,760.17)
62,269.45 37,899.74 100,169.19
Total
Unit : Million Baht
(717.96) 7,012.89
(6,020.52)
-
Materials for Materials in work under transportation construction of transmission system 42.72 2,562.25 570.88 8.72 1,761.04 13,180.49 51.44 4,323.29 13,751.37
1.30
-
(50.90)
62,297.87 37,923.56 0.40 100,221.83
Total
Unit : Million Baht Computer Materials for Materials in Software work under transportation construction of transmission system 42.72 2,562.25 570.88 9.48 1,761.04 13,180.49 52.20 4,323.29 13,751.37
Major Computer inspection Software fee
13.93
-
(142.93)
133.44 20.16 3.26 156.86
Separate financial statement Transmission Communication Coal handling Other system and system system materials and exploration supplies
19,619.56
(7,020.82)
(5.14)
25.84
18,223.01 8,417.37 26,640.38
Consolidated financial statement Transmission Communication Coal handling Machinery Other Major system and system system materials and inspection exploration supplies fee
24.04 6.94 30.98
Control system
Structures Reservoirs Power plants Control and dams system
643.62 49.81 693.43
1,622.45 1,503.62 (3.26) 3,122.81
Structures Reservoirs Power plants and dams
6.11 Work under Construction comprise
(TRANSLATION) - 53 -
204
205
(TRANSLATION) - 54 -
EGAT had work under construction project as follows: Unit : Million Baht Consolidated financial statement Project Expand Transmission System Project Chana Combined Cycle Power Plant Project - Block 2 North Bangkok Combined Cycle Power Plant Project - Block 2 Wang Noi Combined Cycle Power Plant Project - Block 4 Others Total
Dec 31, 14
Dec 31, 13
Separate financial statement Dec 31, 14
Dec 31, 13
21,470.21
20,358.00
21,470.21
20,358.00
104.53
15,467.08
104.53
15,467.08
12,055.40
911.24
12,055.40
911.24
200.17
14,950.71
200.17
14,950.71
11,774.69
10,610.84
11,760.60
10,582.42
45,605.00
62,297.87
45,590.91
62,269.45
As at December 31, 2014, North Bangkok Combined Cycle Power Plant Project - Block 2 had 91.70 percentages of completion. As for the Chana Combined Cycle Power Plant Project - Block 2 was completed and transferred to asset on April 8, 2014 (Train 1) and May 9, 2014 (Train 2). As for Wang Noi Combined Cycle Power Plant Project – block 4 was completed and transferred to asset on March 9, 2014. However, there are incomplete construction in the part of the additional surrounding development in the power plants (Facilities) that will be transferred to asset after completion. 6.12 Goodwill comprise
Balance as at the beginning Impairment losses Decrease from disposal of investment Differences from exchange rate adjustment Balance as at the end
Unit : Million Baht Consolidated financial statement Dec 31, 14 Dec 31, 13 763.74 752.91 (375.37) (117.08) 2.24 10.83 273.53 763.74
As at Dec 31, 14
Cost as at Jan 1, 14 Increase during the year Acquired from business combination Transferred from work under construction Exchange rate differences from currency translation Disposal / write - offs Cost as at Dec 31, 14 Accumulated amortization as at Jan 1, 14 Amortization for the year Acquired from business combination Exchange rate differences from currency translation Disposal / write - offs Accumulated amortization as at Dec 31, 14 Net book value As at Dec 31, 13
6.13 Other Intangible Assets comprise
2.03 20.94 (1,167.92) 739.49
(3,839.82) 22,458.73
606.79
(942.66) (241.61) (6.62)
(3,838.96) (0.86) -
23,479.08
(26.40) (22.68) 1,774.71
Computer software rights and software license 1,682.15 74.56 16.18 50.90
27,318.90
-
26,297.69 1,021.21
Land rights
213.89
220.22
(260.88)
-
(254.55) (6.33) -
474.77
-
3.59
3.91
(2.66)
-
(2.34) (0.32) -
6.25
-
12.49
16.20
(17.20)
-
(13.49) (3.71) -
29.69
-
Consolidated financial statement Royalty on Gas piped Transmission state property system system service rights connection rights 474.77 6.25 29.69 -
(TRANSLATION) - 55 -
4,325.89
4,924.04
(1,925.94)
160.31 -
(1,790.99) (295.26)
(463.20) 6,251.83
-
6,715.03 -
Project development rights
28,641.73
28,362.59
(7,214.42)
162.34 20.94
(6,842.99) (548.09) (6.62)
(489.60) (22.68) 35,856.15
35,205.58 1,095.77 16.18 50.90
Total
Unit : Million Baht
206
(TRANSLATION) - 56 -
207
Unit : Million Baht Separate financial statement Land Computer Royalty on rights software rights state property and software license service 26,297.69 1,619.65 474.77 1,021.21 24.16 -
28,392.11 1,045.37
27,318.90
50.14 (20.05) 1,673.90
474.77
50.14 (20.05) 29,467.57
(3,838.96) (0.86) -
(910.56) (224.42) 19.74
(254.55) (6.33) -
(5,004.07) (231.61) 19.74
(3,839.82)
(1,115.24)
(260.88)
(5,215.94)
Net book value As at Dec 31, 13
22,458.73
709.09
220.22
23,388.04
As at Dec 31, 14
23,479.08
558.66
213.89
24,251.63
Cost as at Jan 1, 14 Increase during the year Transferred from work under construction Disposal / write - off Cost as at Dec 31, 14 Accumulated amortization as at Jan 1, 14 Amortization for the year Disposal / write - off Accumulated amortization as at Dec 31, 14
Total
6.14 Land Awaiting Development comprise
Balance at the beginning Add : Increase during the year Less: Accumulated impairment Balance at the end
Consolidated financial statement Dec 31, 14 Dec 31, 13 2,548.72 2,544.90 3.82 8.87 2,557.59 2,548.72 (423.43) (423.43) 2,134.16 2,125.29
Unit : Million Baht Separate financial statement Dec 31, 14 Dec 31, 13 2,239.51 2,239.51 2,239.51 2,239.51 (423.43) (423.43) 1,816.08 1,816.08
(TRANSLATION) - 57 -
208
As at December 31, 2014, EGAT has had the land awaiting development of Baht 1,816.08 million appropriated for construction of new power plants to support the additional demand of electric energy. Due to the change in power development planning, the construction of new power plants has been postponed. Details of the land awaiting development are comprise of: - Land at Ao - Phai, Chonburi Province of 122 Rai is valued at Baht 9.05 million. - Land at Tap Sakae, Prachuap Khiri Khan Province of 4,029 Rai is valued at Baht 2,223.43 million with accumulated impairment in the amount of Baht 423.43 million. As a result, the net book value of land was Baht 1,800 million. - Land surrounding Carrier Gas Station on Phet Kasem Road at Ratchaburi Province of 37 Rai is valued at Baht 3.75 million. - Land surrounding Bannasan substation at Nampu, Bannasan, Suratthani Province is valued at Baht 3.28 million. 6.15 Income Taxes and Deferred Taxes 6.15.1 Income taxes
Income taxes Current income taxes Income taxes of previous year which is over recorded Total Deferred taxes Change in temporary differences Total Grand total
Unit : Million Baht Consolidated financial statement 2014 2013 1,473.02 (14.51) 1,458.51
1,291.01 (4.65) 1,286.36
(176.57) (176.57) 1,281.94
146.88 146.88 1,433.24
6.15.2 Deferred tax assets and deferred tax liabilities Unit : Million Baht
Deferred tax assets (liabilities) Set - off of taxes Net deferred tax assets (liabilities)
Consolidated financial statement Assets Liabilities Dec 31, 14 Dec 31, 13 Dec 31, 14 Dec 31, 13 6,410.66 (9,169.70) (9,721.42) 7,455.99 (7,404.37) (6,394.83) 7,404.37 6,394.83 51.62 15.83 (1,765.33) (3,326.59)
(TRANSLATION) - 58 -
209
6.15.3 Movements in deferred tax assets and deferred tax liabilities
Deferred tax assets Allowance for obsolescence of spare parts and supplies and allowance for declining in value of spare parts and supplies Property, plant and equipment - Finance Leases Provision for employee benefits Finance leases liabilities Losses carry forward Total Deferred tax liabilities Depreciation and amortization Finance leases receivable - related parties Others Total
As at Jan 1, 14
122.07 5,230.15 18.92 0.03 1,039.49 6,410.66
60.06 1,556.84 1,616.90
40.63 (657.35) 3.10 0.04 155.70 (457.88)
(113.69) (113.69)
222.76 6,129.64 22.02 0.07 1,081.50 7,455.99
(2,814.93) (6,738.98) (167.51) (9,721.42)
(324.53) (324.53)
(17.27) 739.83 (88.11) 634.45
222.83 18.97 241.80
(2,609.37) (6,323.68) (236.65) (9,169.70)
As at Jan 1, 13 Deferred tax assets Allowance for obsolescence of spare parts and supplies Property, plant and equipment - Finance Leases Provision for employee benefits Finance leases liabilities Deferred expenses Losses carry forward Total Deferred tax liabilities Available - for - sale security Depreciation and amortization Finance leases receivable Others Total
Unit : Million Baht Consolidated financial statement Business Gain or Exchange rate As at Combination Loss differences Dec 31, 14
Consolidated financial statement (Charged)/credited to: Exchange As at Gain or Other rate Dec 31, 13 loss comprehensive differences income
112.74
9.33
-
-
122.07
5,688.21 17.22 (0.08) 151.60 1,042.32 7,012.01
(458.06) 1.70 0.11 (142.51) 93.86 (495.57)
-
(9.09) (96.69) (105.78)
5,230.15 18.92 0.03 1,039.49 6,410.66
(93.63) (3,214.95) (7,057.54) (70.88) (10,437.00)
142.28 318.56 (112.14) 348.70
93.63 93.63
257.74 15.51 273.25
(2,814.93) (6,738.98) (167.51) (9,721.42)
(TRANSLATION) - 59 -
210
6.16 Other Non - Current Assets comprise
- Deferred Charges of the Lignite Mine Deferred charges as at Jan 1, 14 Increase during the year Deferred charges as at Dec 31, 14 Amortization as at Jan 1, 14 Increase during the year Amortization as at Dec 31, 14 Net book value As at Dec 31, 13 As at Dec 31, 14 - Others As at Dec 31, 13 As at Dec 31, 14 Total other non - current assets As at Dec 31, 13 As at Dec 31, 14
Unit : Million Baht
Consolidated financial statement Overburden Minerals Resettlement Mineral removal resource costs Patent costs costs exploration and preliminary development costs
Total
645.67 645.67 (314.33) (10.80) (325.13)
1,988.44 1,988.44 (1,685.79) (54.99) (1,740.78)
281.14 281.14 (57.73) (11.25) (68.98)
97,618.63 6,031.07 103,649.70 (96,761.23) (6,108.11) (102,869.34)
-
331.34
302.65
223.41
857.40
-
320.54
247.66
212.16
780.36
94,703.38 6,031.07 100,734.45 (94,703.38) (6,031.07) (100,734.45)
2,436.00 2,274.65 3,293.40 3,055.01
(TRANSLATION) - 60 -
211
Unit : Million Baht
- Deferred Charges of the Lignite Mine Deferred charges as at Jan 1, 14 Increase during the year Deferred charges as at Dec 31, 14 Amortization as at Jan 1, 14 Increase during the year Amortization as at Dec 31, 14 Net book value As at Dec 31, 13 As at Dec 31, 14 - Others As at Dec 31, 13 As at Dec 31, 14 Total other non - current assets As at Dec 31, 13 As at Dec 31, 14
Separate financial statement Overburden Minerals Resettlement Mineral removal resource costs Patent costs costs exploration and preliminary development costs
94,703.38 6,031.07 100,734.45 (94,703.38) (6,031.07) (100,734.45) -
Total
645.67 645.67 (314.33) (10.80) (325.13)
1,988.44 1,988.44 (1,685.79) (54.99) (1,740.78)
281.14 281.14 (57.73) (11.25) (68.98)
97,618.63 6,031.07 103,649.70 (96,761.23) (6,108.11) (102,869.34)
331.34 320.54
302.65 247.66
223.41 212.16
857.40 780.36 723.82 743.33 1,581.22 1,523.69
6.17 Trade Accounts Payable - Others are as follows :
Trade payable - electric energy purchased Trade payable - fuel for electricity generating Trade payable - fuel for providing Others Total
Unit : Million Baht Consolidated financial statement Separate financial statement Dec 31, 14 Dec 31, 13 Dec 31, 14 Dec 31, 13 30,818.94 33,840.82 30,818.94 33,840.82 10,718.60 19,732.48 10,718.60 19,732.48 1,322.00 2,962.82 1,322.00 2,962.82 11,696.04 9,694.52 2,834.27 2,703.92 54,555.58 66,230.64 45,693.81 59,240.04
212
(TRANSLATION) - 61 -
6.18 Accrued Remittance to the Ministry of Finance In the year 2014, the Ministry of Finance prescribes that EGAT has to calculate the accrued remittance to the Ministry of Finance in 45% of net income before provision of bonus expense. However, the amount of remittance may vary depending on the revision from the Ministry of Finance. As at January 1, 2014, EGAT has accrued remittance to the Ministry of Finance in the amount of Baht 9,466.29 million. EGAT increased in provision for remittance to the Ministry of Finance in the amount of Baht 28.83 million and on May 6, 2014, EGAT remit to the Ministry of Finance in accordance with the notice of EGAT no. 921101/23585 in the amount of Baht 9,495.12 million. As at December 31, 2014, EGAT recorded the provision for the remittance to the Ministry of Finance for the year 2014 in the amount of Baht 18,939.80 million. However, in October 2014, EGAT remitted for the six months ended June 30, 2014 in the amount of Baht 10,559.09 million, therefore, EGAT has accrued remittance to the Ministry of Finance in the amount of Baht 8,380.71 million as at December 31, 2014. 6.19 Long - Term loans comprise
Unit : Million Baht Consolidated financial statement
Balance at the beginning Increase during the year Repayments Gain on exchange rate from repayments Gain on derivatives from repayments (Gain) Loss on exchange rate adjustment / Exchange rate differences from currency translation Less : Current portion of long - term loans Balance at the end
Dec 31, 14 83,325.66 10,274.21 (11,604.77) (20.60) (1.61)
Dec 31, 13 91,406.06 16,065.70 (22,561.45) (9.56) (5.70)
(514.38) 81,458.51 (8,958.81) 72,499.70
(1,569.39) 83,325.66 (11,590.86) 71,734.80
Separate financial statement
Dec 31, 14 70,896.37 (6,457.89) (20.60) (1.61)
Dec 31, 13 62,722.52 13,000.00 (4,964.75) (9.56) (5.70)
(135.65) 64,280.62 (8,076.72) 56,203.90
153.86 70,896.37 (6,480.10) 64,416.27
(TRANSLATION) - 62 -
Long - Term loans comprise
Local sources secured by the Ministry of Finance: EGAT bonds Fixed rate due within 2014 - 2020 Local sources unsecured by the Ministry of Finance: Ministry of Finance loans Fixed rate due within 2014 - 2027 EGAT bonds Fixed rate due within 2014 - 2033 Debenture Fixed rate due within 2014 - 2015 Other financial institutions Floating rate due within 2014 - 2020 Fixed rate due in 2016 Foreign sources secured by the Ministry of Finance: Loans Euro: Fixed rate due within 2014 Fixed rate due within 2014 - 2037 Foreign sources unsecured by the Ministry of Finance: Loans AUD Dollars: Floating rate due within 2014 - 2017 Debenture Japanese Yen: Fixed rate due in 2026 Dollars: Fixed rate due in 2019 Total Less: Current portion of long - term loans Balance
213
Consolidated financial statement Dec 31, 14 Dec 31, 13 Foreign Million Foreign Million currencies Baht currencies Baht Unit : million Unit : million -
5,000.00 5,000.00
-
8,000.00 8,000.00
-
78.50
-
83.49
-
58,100.00
-
61,250.00
-
721.33
-
5,681.34
-
779.38 1,200.00 60,879.21
-
930.14 1,200.00 69,144.97
27.31
1,102.12 1,102.12
0.09 34.40
3.93 1,558.95 1,562.88
20.00
505.09
1.57
(45.62)
15,000.00
4,112.27
15,000.00
4,663.43
300.00
9,859.82 14,477.18 81,458.51 (8,958.81) 72,499.70
-
4,617.81 83,325.66 (11,590.86) 71,734.80
(TRANSLATION) - 63 -
214
As at December 31, 2014 and 2013, the fee of subsidiaries for advance financing is in the amount of Baht 32.61 million and Baht 45.62 million respectively from loan of AUD Dollars 100 million for the period from the year 2013 to 2018. The company intends to exercise its right to such loans. It still shows the offset against long - term loans payable as a whole.
Local sources secured by the Ministry of Finance: EGAT bonds Fixed rate due within 2014 - 2020
Separate financial statement Dec 31, 14 Dec 31, 13 Foreign Million Foreign Million currencies Baht currencies Baht Unit : million Unit : million
Local sources unsecured by the Ministry of Finance: Ministry of Finance loans Fixed rate due within 2014 - 2027 EGAT bonds Fixed rate due within 2014 - 2033 Foreign sources secured by the Ministry of Finance: Loans Euro: Fixed rate due within 2014 Fixed rate due within 2014 - 2037
Less:
-
5,000.00 5,000.00
-
8,000.00 8,000.00
-
78.50
-
83.49
-
58,100.00 58,178.50
-
61,250.00 61,333.49
27.31
1,102.12 1,102.12 64,280.62 (8,076.72) 56,203.90
0.09 34.40
3.93 1,558.95 1,562.88 70,896.37 (6,480.10) 64,416.27
Total Current portion of long - term loans Balance
As at December 31, 2014, long - term loans can be classified by interest rate as follows:
Floating rate Fixed rate Total
Consolidated financial statement Dec 31, 14 Dec 31, 13 779.38 930.14 80,679.13 82,395.52 81,458.51 83,325.66
Unit : Million Baht Separate financial statement Dec 31, 14 Dec 31, 13 64,280.62 70,896.37 64,280.62 70,896.37
(TRANSLATION) - 64 -
215
Interest rate of long - term loans as at December 31, 2014 are as follows : Consolidated financial statement Separate financial statement EGAT bonds - local sources - Guaranteed by the Ministry of Finance - The Ministry of Finance does not guarantee. Loans - local sources - The Ministry of Finance does not guarantee. Loans - foreign sources - Guaranteed by the Ministry of Finance Debenture - The Ministry of Finance does not guarantee.
6.927% to 7.380% 3.240% to 6.235%
6.927% to 7.380% 3.240% to 6.235%
3.000% to 4.875%
3.000% to 3.000%
0.000% to 8.000%
0.000% to 8.000%
2.720% to 3.940%
6.20 Finance Leases Liabilities - Power plants Unit : Million Baht
Finance leases liabilities Less : Deferred interest expenses Net
Finance leases liabilities Less : Deferred interest expenses Net
Current portion Dec 31, 14 Dec 31, 13 32,611.70 29,993.73 (22,389.77) (20,465.89) 10,221.93 9,527.84
Current portion Dec 31, 14 Dec 31, 13 41,052.99 38,622.24 (27,403.46) (25,618.81) 13,649.53 13,003.43
Consolidated financial statement Non - current portion Total Dec 31, 14 Dec 31, 13 Dec 31, 14 Dec 31, 13 335,119.91 280,950.80 367,731.61 310,944.53 (198,724.64) (165,281.23) (221,114.41) (185,747.12) 136,395.27 115,669.57 146,617.20 125,197.41 Separate financial statement Non - current portion Dec 31, 14 Dec 31, 13 386,277.87 337,915.21 (221,691.81) (192,026.34) 164,586.06 145,888.87
Unit : Million Baht Total
Dec 31, 14 427,330.86 (249,095.27) 178,235.59
Dec 31, 13 376,537.45 (217,645.15) 158,892.30
216
(TRANSLATION) - 65 -
6.21 Employee Benefit Obligations EGAT's employees will receive retirement benefits under Thai labour law when employees has completed their terms in accordance with agreements between employees and EGAT. Employee benefits liability is a defined benefits obligation calculated by using the projected unit credit method on an actuarial basis. This basis determines the present value of future payments by discounting the future cash flows using the yields on government bonds with a currency and term similar to the estimated term of the benefit obligations. Any expenses related to benefits are recognized in profit or loss in order to attribute benefits to periods of service. Movement in the present value of the defined benefit obligations is as follows : Consolidated financial statement Dec 31, 14 Dec 31, 13 Balance at the beginning 14,051.25 13,562.46 Current service costs 588.03 572.03 Interest on obligations 533.02 512.77 Acquired from business combination 7.47 Decrease from business disposal (0.31) Actuarial gains (0.10) (5.81) Actual payment (598.53) (589.76) Foreign exchange adjustment (0.36) (0.44) Balance at the end 14,580.47 14,051.25
Unit : Million Baht Separate financial statement Dec 31, 14 Dec 31, 13 13,955.72 13,475.64 572.69 555.81 529.00 509.41 (588.20) (585.14) 14,469.21 13,955.72
Expenses recognized in the statements of income and as part of cost of assets / liabilities are shown in the statements of financial position for the year ended December 31, 2014 are as follows :
217
(TRANSLATION) - 66 -
Expenses realized in statements of income Cost of sales Selling expenses Administrative expenses Total Cost of assets / liabilities realized in statements of financial position Materials and supplies Work under construction Provision liabilities for mine reclamation Total Grand Total
Principle actuarial assumptions of EGAT Discount rate Inflation rate Consumer price index Post - employment medical care Resignation rate Salary escalation rate Mortality rate, by table
Consolidated financial statement Dec 31, 14 Dec 31, 13
Unit : Million Baht
Separate financial statement Dec 31, 14 Dec 31, 13
624.73 6.57 377.84 1,009.14
600.91 6.90 368.84 976.65
624.73 6.57 358.48 989.78
600.91 6.90 349.26 957.07
39.00 71.53 1.38 111.91 1,121.05
39.98 66.83 1.34 108.15 1,084.80
39.00 71.53 1.38 111.91 1,101.69
39.98 66.83 1.34 108.15 1,065.22
Annual percentage (%) 3.9 3.5 10 0.0 - 0.8 6 - 11 TMO08 (Thai mortality table A.D.2008)
218
(TRANSLATION) - 67 -
6.22 Provision Liabilities for Mine Reclamation are as follows : Consolidated financial statement Dec 31, 14 Dec 31, 13 2,080.31 2,047.40 130.38 128.14 2,210.69 2,175.54 (64.01) (91.62) (5.68) (3.61) 2,141.00 2,080.31
Balance at the beginning Add : Increase during the year Less : Mine reclamation expenses Depreciation Balance at the end
6.23 Other Non - Current Liabilities comprise
Deferred Income Balance at the beginning Add : Contribution received Asset transferred Less : Recognized to other revenue Contribution refunded Decrease in depreciation Balance at the end Retention Cash received from breaking agreement in case of conflict Others Total
Consolidated financial statement Dec 31, 14 Dec 31, 13
Unit : Million Baht Separate financial statement Dec 31, 14 Dec 31, 13 2,080.31 2,047.40 130.38 128.14 2,210.69 2,175.54 (64.01) (91.62) (5.68) (3.61) 2,141.00 2,080.31
Unit : Million Baht Separate financial statement Dec 31, 14 Dec 31, 13
6,359.11 406.15 178.65 6,943.91 (311.01) (54.74) (1.34) 6,576.82 5,433.33
6,100.59 691.55 6,792.14 (431.69) (1.34) 6,359.11 8,475.46
6,379.11 386.15 178.65 6,943.91 (311.01) (54.74) (1.34) 6,576.82 5,433.33
6,120.59 691.55
574.12 1,670.75 14,255.02
848.47 1,512.80 17,195.84
574.12 1,339.65 13,923.92
848.47 899.02 16,602.06
6,812.14 (431.69) (1.34) 6,379.11 8,475.46
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(TRANSLATION) - 68 -
6.24 Owners' Equity Contribution from The Government comprise
Capital Contribution for supporting construction of the Srinagarind, Bang Lang, Vajiralongkorn, Rajjaprabha and Pak Mun Dam Less : Accumulated depreciation Depreciation for the period Balance
Unit : Million Baht Consolidated financial statement Separate financial statement Dec 31, 14 Dec 31, 13 Dec 31, 14 Dec 31, 13 6,507.64 6,507.64 6,507.64 6,507.64
4,364.75 (1,808.08) (62.33) 2,494.34 9,001.98
4,364.75 (1,870.41) (62.33) 2,432.01 8,939.65
6.25 Revenue from Sales of Other Goods and Services comprise
Revenue from telecommunication services Revenue from fuel providing Revenue from operation and maintenance services Others Total
Consolidated financial statement 2014 2013
4,364.75 (1,870.41) (62.33) 2,432.01 8,939.65
4,364.75 (1,808.08) (62.33) 2,494.34 9,001.98
Unit : Million Baht Separate financial statement 2014 2013
573.19 18,098.06
575.20 20,753.37
573.19 19,810.63
575.20 21,742.48
1,214.41 1,524.42 21,410.08
1,336.39 1,427.92 24,092.88
2,450.18 551.66 23,385.66
3,063.65 665.36 26,046.69
EGAT has the revenue from telecommunication business, which has been approved to operate telecommunication business by The National Telecommunications Commission on March 15, 2007.
220
(TRANSLATION) - 69 -
6.26 Cost of Electric Energy Sales comprise
Electric energy purchased Fuel Generating expenses Transmission expenses Total Finance Leases - Power plants Electric energy purchased Fuel Generating expenses Total
Consolidated financial statement 2014 2013 308,607.58 288,913.17 182,195.69 170,829.26 34,839.21 31,995.71 10,770.07 10,614.20 536,412.55 502,352.34 (196,028.58) 102,339.15 17,474.76 (76,214.67) 460,197.88
(194,531.42) 110,106.66 17,336.34 (67,088.42) 435,263.92
6.27 Cost of Sales of Other Goods and Services comprise Consolidated financial statement 2014 2013 31.30 Cost of telecommunication services 29.83 Cost of fuel providing 18,098.06 20,753.37 Cost of operation and 927.34 maintenance services 869.49 Others 448.54 467.82 Total 19,445.92 22,179.83
Unit : Million Baht Separate financial statement 2014 2013 309,009.45 289,284.49 139,150.67 134,416.99 29,632.55 27,129.11 10,770.07 10,614.20 488,562.74 461,444.79 (196,028.58) 145,313.44 21,357.21 (29,357.93) 459,204.81
(194,531.42) 146,322.98 21,975.56 (26,232.88) 435,211.91
Unit : Million Baht Separate financial statement 2014 2013 29.83 31.30 19,810.63 21,742.47 1,721.58 308.88 21,870.92
2,190.37 353.41 24,317.55
EGAT recorded cost of telecommunication services to dual with revenue from telecommunication services since March 15, 2007 that EGAT has received the approval to operate telecommunication business by The National Telecommunications Commission. However, cost of telecommunication services excludes selling expense, administrative expense and finance cost, which each of expenses is shown in each of categories of expenses in statements of income.
221
(TRANSLATION) - 70 -
6.28 Other Revenues comprise
Interest income Dividend income Profit on disposal of assets Gain on foreign exchange Gain on changes in the fair value of derivatives Contribution income Gain on disposal of long - term investment Gain from bargaining of purchase Fine income Income on disposal of fly ash and scrap Miscellaneous income Others Total
Consolidated financial statement 2014 2013 2,020.45 1,975.44 235.95 220.90 277.55 1,045.59 22.97
Unit : Million Baht Separate financial statement 2014 2013 1,666.56 1,547.22 2,317.26 2,283.82 277.61 675.37 -
107.62 303.14
104.29 257.17
107.62 303.14
104.29 257.17
797.29 372.50 392.80 41.01 1,025.91 6,574.80
645.83 136.37 379.75 55.87 930.60 4,774.20
372.49 392.80 41.01 169.53 6,323.39
136.37 379.75 55.87 371.32 5,135.81
In the year 2014, EGAT recognized fine revenue from dispute with Idreco S.P.A. Co., Ltd in the amount of Baht 235.92 million, that the case is terminated. 6.29 Other Expenses comprise
Loss on foreign exchange Loss on foreign exchange under finance Leases Loss on disposal of assets Others Total
Consolidated financial statement 2014 2013 271.35 184.28 455.63
4,998.76 187.16 53.02 5,238.94
Unit : Million Baht Separate financial statement 2014 2013 682.22 276.78 55.32 332.10
4,998.76 159.31 53.02 5,893.31
(TRANSLATION) - 71 -
222
6.30 Finance Costs comprise
Capitalized to work under construction Finance costs in the statements of income Finance costs - Finance Leases Total
Interest expenses 325.88 4,421.72 21,229.11 25,650.83 25,976.71
Unit : Million Baht Consolidated financial statement Expenses relating Total to the loans 2014 2013 0.20 326.08 572.56 58.84 4,480.56 4,416.91 21,229.11 21,298.92 58.84 25,709.67 25,715.83 59.04 26,035.75 26,288.39 Unit : Million Baht
Capitalized to work under construction Finance costs in the statements of income Finance costs - Finance Leases Total
Interest expenses 325.88 2,924.28 26,774.34 29,698.62 30,024.50
Separate financial statement Total Expenses relating to the loans 2014 0.20 326.08 1.55 2,925.83 26,774.34 1.55 29,700.17 1.75 30,026.25
2013 572.56 2,739.44 26,796.03 29,535.47 30,108.03
6.31 Share of Profit (Loss) from Investments in Associates comprise
Electricity Generating Plc. First Korat Wind Co., Ltd. K.R. Two Co., Ltd. Nam Ngiep 1 Power Co., Ltd. Total
Unit : Million Baht Consolidated financial statement 2014 2013 1,335.41 1,792.50 127.77 122.39 109.08 89.43 (241.23) (5.96) 1,331.03 1,998.36
6.32 Performance of EGAT The performance of EGAT in net income of 2014 was Baht 37,577.05 million. EGAT recorded the provision of expenses and liabilities of bonus for employees and directors in the amount of Baht 4,537.55 million for the 2014 financial statements.
(TRANSLATION) - 72 -
223
In April and June 2014, the Ministry of Finance approved EGAT to allocate the 2013 net income for bonus payment to the employees and directors in the amount of Baht 4,534.08 million. EGAT recorded the provision of bonus in 2013 in the amount of Baht 4,560.23 million so, EGAT recorded the high difference of the provision of bonus in the amount of Baht 26.15 million, that brought about to decrease the expenses in the year 2014. 6.33 Expenses by Nature comprise Consolidated financial statement 2014 2013 94,381.75 Electric energy purchased 112,579.00 Work performed by the enity and capitalized (23,064.59) (36,754.40) Raw materials and consumables used 184,590.21 173,561.05 Fuel - Finance leases 102,339.15 110,106.66 Management's remunerations 354.89 350.59 Employee benefit expenses 28,497.74 28,178.24 Depreciation of property, plant and 23,401.09 equipment 25,726.83 Depreciation of finance leases assets 11,336.18 10,852.49 Amortization of intangible assets 547.86 528.38 Hire and maintenance expenses 8,335.69 6,402.63 Other expenses 46,307.64 67,801.52 Total 497,550.60 478,810.00
Unit : Million Baht Separate financial statement 2014 2013 112,980.87 94,753.07 (23,064.59) (36,754.40) 142,830.78 137,574.11 145,313.44 146,322.98 140.65 147.20 27,957.42 27,729.33 24,501.24 11,336.18 231.38 6,766.02 47,224.83 496,218.22
22,135.57 10,852.49 220.40 5,505.99 71,114.07 479,600.81
7. Power Development Fund The legislation of Energy Industry Act B.E.2550, which shall come into effect on December 11, 2007, determined to set up the power development fund with the following objectives: to support extensive electricity service provision to various localities ; to decentralized prosperity to provincial areas; and to develop the local communities affected by the operation of a power plant, etc. Anyhow, Energy Regulatory Commission (ERC) has power and duty to manage the fund, ERC declared about delivery the money to the power development fund for electricity industry licensees in type of license B.E.2553 which determines electricity industry licensees shall deliver the money to the fund in 2 periods as follows: 1. During the power plant construction from the date starting from the conducting of the construction in accordance with the contract for services in order to construct and comply with the electricity industry licenses until the commercial operation date (COD) and have to deliver annually by calculating the money from estimate of installed capacity of power plant at the rate of Baht 50,000 per megawatt per year.
224
(TRANSLATION) - 73 -
In case of the construction is less than 1 year, EGAT has to deliver the money in accordance with percentage of month which construction had been conducted but it must not be less than Baht 50,000 per year. 2. During electricity generating the date starting from the commercial operation date, EGAT has to deliver monthly money calculated by electric energy produced for sales and use which exclude electric energy using in production process in station service. It was separated by the types of fuels using in generating power such as natural gas, fuel oil, diesel, coal, lignite etc. For the year ended December 31, 2014 and 2013, EGAT had provision for contributions for the power development fund in the part of the power plant of EGAT which included in generating expenses in the amount of Baht 947.71 million and Baht 954.46 million respectively. 8. Contingent Asset Power Purchase Agreement of Power Plant Project, Nam Theun 2 and Nam Ngum 2 From the year 2010, EGAT entered into the Power Purchase Agreement with Lao People’s Democratic Republic (Lao PDR) of Nam Theun 2 power plant project and Nam Ngum 2 power plant project. The power purchase guarantee in accordance with annual supply target specified that in case of the power plants have supply excess, they don’t charge EGAT for the excess. However, the excess will be accumulated to set off in the following year which has supply shortfall. On the other hand, if EGAT has dispatch shortfall, the power plants will charge in the amount of the buying guarantee of EGAT whereas EGAT has to pay in advance and be able to receive amount of energy at a later month to make up the dispatch. In case of EGAT accepts the supply excess, EGAT is able to apply the amount accumulated to set off. During the agreement period, if it has no supply shortfall, EGAT will pay for accrued electricity expense for supply excess with the excess electricity rate which is less than normal electricity rate (Baht 0.57 for Nam Theun 2 power plant project and Baht 1.145 for Nam Ngum 2 power plant project) at the end of the period. Period of Nam Theun 2 power plant ends at 13th anniversary from March 8, 2010 and period of Nam Ngum 2 power plant ends 10th anniversary from running the machinery. However, both of the projects have to include period of time extended because of unpredictable events. Besides, EGAT will get the refund 25% of accrued electricity expense which pay at the end of the period. It calculates by accumulated supply excess plus excess energy or excess revenue less accumulated dispatch shortfall. At this time, EGAT is not able to estimate because there is no certainty about amount of contingent assets.
(TRANSLATION) - 74 -
9. Contingent Liabilities As at December 31, 2014, contingent liabilities excluded from the separate financial statements, are the calling for EGAT to pay additional compensation, which are the Civil Court judged that EGAT was liable for the additional payment of 31 lawsuits amounting to Baht 122.90 million in case of calling for compensation of land rights and violation. 10. Commitments 10.1 Long - Term Power Purchase Agreements As a result of the government’s policy on decreasing the government’s investment burden and encouraging private sector to be involved in the power generation industry, the Government approved an investment program for the power generation in new project by private sector (Independent Power Producers known as IPP) who will sell power to EGAT. As at December 31, 2014, EGAT has entered into 85 Power Purchase Agreements which can be divided by 2 categories as follows : (1) Long - term power purchase agreements with hydro power plants – Capability to generate electricity of the power plants shall depend on water level in the dam and production plan of each power plant. Therefore, EGAT the obligation of the electricity generated by hydro power plants cannot be estimated reliably. Nowadays, EGAT has 7 electric power purchase agreements with hydro power plants which consist of Theun Hinboun power plant, Houay Ho power plant, Nam Theun 2 power plant, Nam Ngum 2 power plant, Xaiyaburi power plant, Xe - Pien Xe - Nam Noy power plant and Nam Ngiep 1 power plant. (2) Long - term power purchase agreements from thermal power plants and combined - cycle power plants - At present, EGAT has 78 power purchase agreements from thermal power plants and combined - cycle power plants, that total commitments to the end of all contracts amounting to approximately Baht 7,703,731 million and total production capacity of 16,121 megawatts.
225
226
(TRANSLATION) - 75 -
Company Capacity Power producers (megawatt) Power Project Developers in Lao People's Democratic Republic Hongsa Lignite Project 1 1,473 Independent Power Producers (IPP) Gulf JP UT Company Limited (GUT) As formerly, Siam Energy Company Limited (SEC) 1 1,600 Khanom Electricity Generating Company Limited (KEGCO) - Unit 4 1 930 Gulf SRC Company Limited (GSRC) 1 2,500 Gulf PD Company Limited (GPD) 1 2,500 Small Power Producers (SPP) 73 7,118 Total 78 16,121
Remaining life of contract (years)
Amount
Availability Energy payment (AP) payment (EP) (Million Baht) (Million Baht) (Million Baht)
27
2015-2041
527,862
318,806
209,056
26
2015-2040
796,361
126,807
669,554
26 27 27
2016-2041 2021-2047 2023-2049 3-26 Years
466,234 1,174,233 1,169,465 3,569,576 7,703,731
79,222 217,008 211,468 653,318 1,606,629
387,012 957,225 957,997 2,916,258 6,097,102
10.2 Fuel Purchase Agreements EGAT has entered to 4 gas purchase agreements for power plant in the totaled amount of Baht 1,803,702 million, which the remaining life of contract is from 11.5 months to 17 years and 8 months. The rest of amount as contract is valued at Baht 345,867 million. 10.3 Hire - Purchase Agreements EGAT has entered to the local and foreign hire - purchase agreements, which the details are as follows: 10.3.1 There are 299 agreements of local hire - purchase agreements and their amount as contract is Baht 54,135.07 million with the remaining life of contract in 0.5 month to 10 years and 11.5 months. The rest of amount as contract is approximately Baht 25,333.33 million. 10.3.2 There are 173 agreements of foreign hire - purchase agreements and their amount as contract is Baht 82,962.29 million. Some contracts have the remaining life of contract in 0.5 month to 11 years and 6 months and some contracts are not indicated the contract period. The rest of amount as contract from the conversion of foreign currency under the average buying exchanged rate on December 30, 2014, which announced by the Bank of Thailand was approximately Baht 29,604.74 million. 10.4 Letter of Credit On December 31, 2014, EGAT has unused letter of credit, which are not expired amounting to approximately Baht 7,571.67 million.
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10.5 Share Pledge Contract Since August 15, 2014, a subsidiary has pledged share of its associates as guarantee for loan in order to support the operation of such associates, according to the credit condition of financial institutions with Bangkok Bank Public Company Limited (as representative in accordance with the collateral of the Laos law, who has the power to act representing guaranteed creditors). This pledge is redeemable when there is full payment to all guaranteed creditors. 11. Disclosure of Financial Instruments EGAT uses the financial instruments to decrease uncertainty from uncontrollable outside factors. The main derivative financial instrument was forward foreign exchange contracts. 11.1 Forward Foreign Exchange Contracts EGAT has conducted a forward foreign exchange contracts to mitigate the risk of fluctuations in foreign exchange rate associated with foreign loan repayment, the electric energy purchased from foreign countries, goods and services. Forward foreign exchange contracts are contracts to buy foreign currency at a pre - agreed exchange rate on a specified future time and are not realized in the financial statements on the contract date. As at December 31, 2014, EGAT has forward foreign exchange contracts which has book value and forward foreign exchange rate as follows:
Exchange rate : Baht 32.772 per US dollar
Unit : Million Baht Dec 31, 14 Dec 31, 13 65.54 65.54
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11.2 Fair Value of Financial Instruments As at December 31, 2014, contract price and fair value of long - term loans and derivative are as follows:
Long - term loans - local sources Long - term loans - foreign sources Forward foreign exchange contracts
Dec 31, 14 Contract price Fair value 68,182.33 63,178.50 1,102.12 1,102.00 -
Unit : Million Baht Dec 31, 13 Contract price Fair value 69,333.49 71,093.64 1,562.88 1,584.27 (0.12)
EGAT calculated fair value of long - term loans, derivative and fixed rate bonds as the present value of the estimated future cash flow, which based on the nearby term discount rate. Forward foreign exchange contracts are calculated by financial institutions, which are contractor of EGAT. 12. Infrastructure Fund On November 27, 2014, the Board of EGAT approved model of infrastructure fund structure for North Bangkok Combined Cycle Power Plant - Block 1 which required EGAT to quarterly remit net revenue (availability of payments (AP1) net insurance premium) of North Bangkok Combined Cycle Power Plant Block 1 throughout the contractual period, according to the contract between EGAT and such fund. The amount of fund is not less than Baht 19,000 million, and the estimated contractual period is 20 years. EGAT will record receipt from sale of investment units as liabilities. The remitted net revenue will be paid in respect of the return and repayment of investment until the maturity date of the contract. EGAT appointed Krung Thai Asset Management Public Company Limited (KTAM) as the fund manager and Siam Commercial Bank as the underwriter. EGAT will hold 25 percent of the sold investment units and was prohibited to sell investment units for 5 years. On March 10, 2015, the Cabinet has already approved EGAT to establish the infrastructure fund for the North Bangkok Combined Cycle Power Plant - Block 1. 13. Acquisitions of subsidiaries On 28 January 2014, Ratchaburi Gas Company Limited (“RGAS”), a subsidiary of a subsidiary of EGAT, acquired an additional 49.99% of the common shares of Tri Energy Company Limited (“TECO”), for USD 21.32 million or equivalent to Baht 703.43 million resulting in RGAS holding 99.99% of the issued and paid up capital of TECO (previously held 50%).
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Under TFRS 3 Business Combinations, the investment in TECO is classified as a step acquisition which requires the Group to remeasure the previously held equity interest in TECO (50%) at fair value and recognise the difference between fair value and carrying value to profit or loss on the acquisition date as follows:
Fair value of previously held equity interest in TECO (50%) at the acquisition date Less: Carrying amount of previously investment in TECO Differences from fair value adjustment of previously held equity interest
Unit : Million Baht 703.44 (2,163.16) (1,459.72)
As result of, the acquisition of TECO led to the recognition of Baht 2,257.02 million to gain on bargain purchase under TFRS 3 which calculated as follows:
Cash and cash equivalents Trade accounts receivable Finance lease receivable Other accounts receivable Inventories Other current assets Property, plant and equipment Intangible assets Deferred tax assets Other non - current assets Trade accounts payable - others Other accounts payable Other current liabilities Employee benefit obligations Net asset acquisitions Fair value of previously held equity interest (50%) Fair value of additional investment (49.99%) Gain on a bargain purchase
Unit : Million Baht Book Value on the Fair Value Recognised acquisition date adjustment amounts (unaudited) 45.70 45.70 466.89 466.89 2,407.04 (784.37) 1,622.67 130.25 130.25 272.85 272.85 25.36 25.36 248.46 (30.92) 217.54 9.56 9.56 1,129.31 163.06 1,292.37 13.16 13.16 (124.63) (124.63) (10.44) (10.44) (289.92) (289.92) (7.47) (7.47) 4,316.12 (652.23) 3,663.89 (703.44) (1,406.87) (703.43) 2,257.02
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EGAT recognized the change in fair value of investment in TECO before changing status from jointly-controlled entity to subsidiary of subsidiary of EGAT and difference rising from fair value on the acquisition date in the statement of comprehensive income for the year ended December 31, 2014 as follows:
Differences from fair value adjustment of previously held equity interest Gain on bargain purchase Net
Unit : Million Baht (1,459.72) 2,257.02 797.30
The subsidiary incurred acquisition-related costs of Baht 5.02 million related to external legal fees and due diligence costs, which was included in administrative expenses in the statement of comprehensive income. At the annual general meeting of the shareholders of Ratchaburi Electricity Generating Holding Public Company Limited (“RATCH”) held on March 28, 2014, the shareholders unanimously approved to acquire the entire business of RGAS (“the seller”), a subsidiary. As at March 31, 2014, RATCH agreed to acquire all investment in TECO which equal to the net book value of Baht 2,512.65 million. The consideration paid to the seller was also equal to the net book value of such investment. The transfer qualifies for treatment as a business combination under common control for which has been accounted for under the guideline issued in 2009 by the FAP. Under the guideline, the net assets of the combining entities are consolidated using the existing book values of the combining entities. On August 1, 2014, TECO transferred its entire business including all assets, liabilities and agreements with third parties to Ratchaburi Electricity Generating Company Limited at the book value of net assets as at July 31, 2014. RATCH increased its ordinary share capital from Baht 18,275 million (comprising 1,827.50 million ordinary shares at par value of Baht 10 per share) to Baht 21,900 million (comprising 2,190 million ordinary shares at par value of Baht 10 per share) by issuance of ordinary shares totaling 362.50 million shares at par value of Baht 10 per share in order to purchase and accept the transfer of TECO’s entire business. At the extraordinary shareholders’ meeting of TECO held on August 1, 2014, the shareholders approved the dissolution of such company. The dissolution was registered with the Department of Business Development Ministry of Commerce on August 4, 2014. As at December 31, 2014, the liquidation has been under process. However, the business transfer is part of the restructuring of the Group’s operations and does not have any impact on the consolidated financial statements.
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14. Subsequent Events Payment for the additional paid-up capital On January 12, 2015, EGAT paid up the increase share capital of subsidiary in the amount of Baht 1,746 million and on February 4, 2015, the subsidiary registered 174.60 million of the increase share capital at par value of Baht 10 per share. Mae Moh mine case On February 10, 2015, the Administrative Court judged the Mae Moh mine case to EGAT shall implement measures to prevent and correct environmental impact around Mae Moh mining areas. After judgement, EGAT, government agencies and community representatives inspected the area of the concession no. 3-6/2530 , 30-46/2535 and 20010/15937 of EGAT on February 27, 2015 and there was preliminary conclusion that EGAT had to provide more information for further consideration. Due to environmental problems which EGAT was sued in the past that EGAT had tried to solve such problems continuously. EGAT and related government agencies have to summarize the data and facts, including measures that EGAT performed before judgement in order to define the proper measures or guidelines that EGAT may need to take additional action. However, the authorities concerned will notify to EGAT later. 15. Reclassification Transactions EGAT reclassified some transactions in the financial statements for the year ended December 31, 2013 for conformity with the presentation of the financial statements for the year ended December 31, 2014. 16. Issuance Dated of Financial Statements Governor of EGAT approved these financial statements for issuance on March 30, 2015. _________________________________
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Audit Fee EGAT’s financial statements are audited by the Office of the Auditior General of Thailand. For Fiscal year 2014, audit fees and expenses total Baht 4,020,000 comprising Baht 2,200,000 fee for the annual audit, Baht 1,500,000 fees for the reviews of quarterly financial statements totaling three quarters or Baht 500,000 for each quarter and Baht 320,000 fees for the audits of account unbundling.