A Leader of Clean Energy Technology With the mission in strengthening the power security of the country under the vision of becoming a world-class organization in electricity business, EGAT strives to develop clean technology and increase the efficiency in power generation to minimize the impact on the environment.
Content Vision and Mission Statement 2 Financial Overview 3 Message from Chairman 6 Report of the Audit Committee 8 Economic and Electricity Overview 10 Operations 12 Nature of Business of EGAT and Affiliates 20 Analysis of Operating Results and Financial Status 26 Enterprise Risk Management 36 Organization Chart 38 Structure of Organizational Management 39 Board of Directors 54
Executives 69 Corporate Governance 80 Official Information Act Compliance Report 90 Power Development and Future Plan 94 Organization and Human Resource Development 110 Corporate Social Responsibility 116 Events 128 Key Statistical Data 134 Auditor’s Report 140 Financial Statements 142 Audit Fee 212
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Vision EGAT aims to become a world-class organization in electricity business with commitment to the following 5 aspects:
Good Corporate Governance
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 and lignite by-products.
Core Cultures Loyalty Excellence Integrity
Strategic Themes
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1. Strengthening competitiveness in core businesses 2. Building growth in subsidiary companies and related businesses 3. Being a caring organization and giving due care for society and environment 4. Being a high-performance organization
A Leader
of Clean Energy Technology
Financial Overview (Consolidated Financial Statements)
Unit : Million Baht 2013 2012
Operating Performance Revenues from sales and services 536,913.34 512,991.89 Income from sales and services 42,104.18 39,788.46 Gains (Losses) on foreign exchange 22.97 634.43 Finance costs 4,416.81 5,343.21 Net income - EGAT and its subsidiaries 40,341.84 38,857.93 Net income - Non-controlling interests 3,390.16 4,480.15 Financial Status Total assets 578,380.63 533,270.08 Property, Plant and Equipment - net 261,012.92 268,284.91 Total liabilities 231,299.21 208,296.15 Long - term debts 84,511.96 92,764.34 Owners’ Equity and Non-controlling interests 347,081.42 324,973.93 Financial Ratios Ratio of Gross Profit to Net Sales (Percentage) 10.85 11.21 Ratio of Net Profit to Net Sales (Percentage) 8.15 8.45 Rate of Return on Total Assets (Percentage) 7.87 8.41 Debt to Equity Ratio (Time) 0.67 0.64 Time interest earned (Time) 11.19 9.28
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The Best Technology Is the One Which Well Serves Humanity
The “Thailand Coal Awards 2013” and “ASEAN Energy Awards 2013” given to Mae Moh Power Plant guarantee EGAT’s strong commitment to become a leader in clean energy technology which is friendly to the environment and society.
Message from Chairperson The formation of the ASEAN Economic Community (AEC) in 2015 is a major factor which will have a significant impact in the area of electricity in terms of the transfer of resources, investment, and labor as well as competition and expansion in trade. According to the report of the International Energy Agency (IEA), for the past two decades, Southeast Asia has a faster growing energy demand than in the other regions as a result of economic and demographic structure, particularly in an increasing number of populations, the upgraded quality of life, and the expansion of urban communities. The electricity demand has jumped tremendously and has a tendency to rise continuously in the future. The ASEAN Power Grid is among the economic and social cooperation frameworks of the ASEAN member countries. The purpose of the cooperation framework is to help ensure greater regional energy security and sustainability on the basis of mutual benefit. Under the ASEAN Interconnection Master Plan Study (AIMS-II) during the year 2009 - 2025, 16 interconnection projects with a total generating capacity of 22,000 MW will be implemented. Presently, Thailand has completed the interconnection system totaling 2,083 MW. Although Thailand has a stable power system, we have to be well-prepared for the incoming AEC, particularly about the fuel diversification and the energy price. Because electric power is vital, it thus must be well managed to prevent any problems which may occur and to facilitate competitiveness. Planning must take into account the balance among all aspects including accountability to community and environment, energy conservation, and clean energy development to enhance sustainable development. Development of clean energy which is environmental-friendly is a principal mission of EGAT and has been carried out continuously, particularly in research and development for the thermal power plant which is our main power source as well as the development of the renewable energy plant model. EGAT intends to become a leader in using clean energy technology in the region and be ready for future use of renewable energy in a commercial basis when appropriate. The blackout caused by lightning in the 14 southern provinces on May 21, 2013 was a critical incident in the power system. However, the electricity could be restored within 2 to 4.45 hours. EGAT has consequently reviewed and set up a measure to prevent the occurrence of such problem in the future and to be alert to the blackout in wide areas. A project has been set up to develop the generating capacity and transmission system in the South and to increase the capacity of transmitting electric power from the Central Area. In this connection, EGAT owes an apology to the public for the inconvenience occurred and will take it as a lesson learned. The natural gas supply interruption, of both planned and unplanned, which occurred several times during 2013, was also another important incident which affected the stability of the power system. The supply sources were both in the country and outside. The incident reflects the power situation of the country which needs a long-term planning to reduce dependency on natural gas. However, with the preventive measures and the cooperation received from all sectors in energy conservation during the gas supply disruption, Thailand did not encounter any blackout. This was a good cooperation of the Thai people to get through the difficulty.
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For EGAT’s operation in 2013, the electricity demand rose only 1.83 percent as the overall economic growth of Thailand had been under the prediction, and the world economy had slowed down. The country’s total installed generating capacity accounted for 33,681.02 MW or an increase of 3.31 percent consisting of 15,010.13 MW or 44.57 percent from EGAT’s power plants and 18,670.89 MW or 55.43 percent, an increase of 6.14 percent from independent power producers and power imported from neighboring countries. In power generation, the total of 72,113.94 million kWh or 41.56 percent was generated from EGAT’s power plants whereas the power of 101,421.51 million kWh or 58.44 percent was purchased from independent power producers and neighboring countries. The total electricity generation and the power purchase accounted for 173,535.45 million kWh or an increase of 330.32 million kWh or 0.19 percent from the prior year. The country’s energy mix for electricity generation included 67.43 percent from natural gas, 19.24 percent from coal, 3.12 percent from hydropower, 7.24 percent from imported electricity, 1.94 percent from biomass and alternative energy, and 1.04 percent from bunker oil and diesel. EGAT’s energy sales increased 0.09 percent from the previous year to 169,530.32 million kWh. Throughout the year, we, EGAT, continued to carry out our social and environmental activities. Under the key message “Power for Thai Happiness”, EGAT staff had been encouraged to perform their task with honesty, transparency, virtue, responsibility, and care in order that EGAT could become the national pride. The successful operation in 2013 was witnessed by several awards at the national and regional levels which reflected EGAT’s strong determination and efforts in this area. Among the success, the Ban Klong Rua Micro-Hydropower Plant Project was awarded the 2013 Outstanding State-Owned-Enterprise (SOE) in the CSR category and the first runner-up for ASEAN Energy Awards 2013 in the category of Community-Based Off-Grid. Moreover, EGAT received an honorary award for outstanding innovation for an organization for its work in Voice Communication Control System (VCCS). The year 2013 was the honorable time for our Mae Moh Power Plant and Mae Moh Mine. In the competition of the work in energy conservation and renewable energy of ASEAN, Mae Moh Power Plant was titled the first runner-up for ASEAN Energy Awards 2013 in the category of Best Practices - Clean Coal Use and Technology in Power Generation. Mae Moh Mine was also the first runner-up in the category of Best Practices in Surface Coal Mining. Moreover, Mae Moh Power Plant was the first unit of EGAT to be awarded the 2013 Thailand Quality Class (TQC) from the Thailand Productivity Institute. On behalf of EGAT, I would like to express our grateful thanks to all parties concerned for their cooperation and continued support which have significantly contributed to EGAT’s achievement. It is hopeful that further support will be given to strengthen the prosperity of electricity service of Thailand.
(Mrs. Anchalee Chavanich) Chairperson, Board of Directors Electricity Generating Authority of Thailand (EGAT)
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Report of the Audit Committee EGAT Audit Committee consists of three members from the Board of Directors. In 2013, members of the Audit Committee were as follows: • In January 2013, the Audit Committee included Mr. Surachai Tansitpong as Chairman, Mr. Prawit Sarakitprija and Mr. Porametee Vimolsiri as members. • February - September 2013, the Audit Committee included Mr. Prawit Sarakitprija as Chairman, Mr. Porametee Vimolsiri and Mr. Yongyutt Chaipromprasith as members. • October - December 2013, owing to the resignation of Mr. Prawit Sarakitprija, the Audit Committee included Mr. Porametee Vimolsiri as Chairman and Mr. Yongyutt Chaipromprasith as member. EGAT Assistant Governor - Internal Audit Bureau served as Secretary of the Audit Committee. The Audit Committee has performed its duties in accordance with the procedures set forth in the Audit Committee Charter to enhance good corporate governance. In 2013, the Audit Committee convened 11 meetings to discuss relevant agenda with EGAT management and independent auditors (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 independent auditors on annual financial statements of EGAT and its subsidiaries for the year ended December 31, 2012 and EGAT’s quarterly financial statements for the periods ended March 31, 2013, June 30, 2013 and September 30, 2013 and comparative financial statements for the respective periods to give an opinion on the accuracy and reliability of the financial statements in accordance with generally accepted accounting principles before submitting them to the Board of Directors • Review EGAT’s risk management and internal control system to consider the sufficiency and suitability to ensure the coverage of all significant issues • Review quarterly internal audit reports of EGAT and annual audit reports of EGAT’s subsidiaries and continuously follow-up correction and improvement in accordance with the audit comments • Review the evaluation reports of the Governor’s performance • Discuss with the Governor and independent auditors in developing internal control systems • Discuss with 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
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• Discuss with independent auditors on the scope and processes of their auditing practices to achieve good coordination and reduce duplication of efforts • Review an annual audit plan for 2014 and a 5-year strategic audit plan (2014-2018) as well as sufficiency of the Internal Audit Bureau resources and assessment of Internal Audit Bureau’s performance • Review the appropriateness of the Audit Committee Charter, the Internal Audit Charter, and the Internal Audit Work Manual • Prepare and submit the Committee’s performance reports to EGAT Board of Directors, the Ministry of Energy, and the Ministry of Finance • Set meeting schedules and agendas for the whole year of 2014 to cover all issues within the remit of the Audit Committee in order to ensure the effectiveness of the meetings • Conduct an annual self-assessment of both individual member and the entire committee based on the guidelines set by the Ministry of Finance for state enterprises and report the evaluation results to the Board of Directors to enhance the effectiveness, transparency, and reliability of the Audit Committee’s performance. The Audit Committee believed that throughout the year 2013, 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 the concerned parties to ensure the best interests of all related parties.
(Mr. Porametee Vimolsiri) Audit Committee Member Acting for Chairman of the Audit Committee January 14, 2014
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Economic and Electricity Overview The overall electricity demand of the EGAT system in 2013 could be represented by the net peak demand of 26,598.14 MW on May 16, 2013 at 14.00 hours which was an increase of 477 MW or 1.83 percent of the peak demand in 2012. Electricity consumption in 2013 of EGAT system rose from the previous year by 330.32 million kWh or 0.19 percent to 173,535.45 million kWh. The slight increase of the electricity demand was partly a result of the energy saving campaign during the interruption of the natural gas supply from Myanmar for gas pipeline maintenance which lasted from April 4 to 14, 2013. The attempt to reduce the electricity demand during the natural gas shortage coupled with the economic growth of the country which was below the target caused by the uncertainty of local political situation and the global economic slowdown resulted in the number of 2013’s electricity demand which was almost the same as the prior year. During the first three quarters of the year 2013, the economic growth of Thailand was lower than the estimation because of the global economic slowdown. The sectors of tourism and hospitality, finance, and transportation were able to expand and became the factors that drove the Thai economy, while the industrial and export sectors could not grow as expected. The U.S economy, despite its recovery, was still under the pressure of financial problem and public debts, whereas the Japanese economy had been facing the high unemployment rate and a slowdown in domestic consumption. The EU also encountered the problem of public debts. As a consequence, the Thai economic growth in 2013 had been estimated by the National Economic and Social Development Board (NESDB) to be 3.0 percent which was lower than the previous projection to 3.8 - 4.3 percent. The growth rates of domestic consumption and overall investment were 0.8 and 0.9 percent respectively. However, the Thai economy toward the end of 2013 was still under the pressure of the political uncertainty and the delay of budget withdrawal for the Government investment. It definitely had an effect on tourism which was the main income of the country.
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For the year 2014, the overall peak demand of EGAT system has been anticipated to stand at 27,915 MW or grow 4.95 percent from the previous year. The total energy generation requirement of EGAT system will reach 184,486 million kWh or an increase of 6.35 percent of the previous year. According to NESDB, the economic growth of Thailand in 2014 will be 4.0-5.0 percent owing to the recovery in global economy, the implementation of some investment projects including water management project and logistic infrastructure development project, the low price of crude oil, and the low inflation rate which will contribute to the economic recovery. It is predicted that the growth in export, domestic consumption, and investment will be 7.0 percent, 2.7 percent, and 7.1 percent respectively.
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Operations Generation System In 2013, EGAT’s power plants had a total installed generating capacity of 15,010.13 MW accounting for 44.57 percent of the country’s gross energy generation. The purchased power capacity included 12,741.69 MW from domestic independent power producers (IPPs) representing 37.83 percent of the country’s total generating capacity, 3,524.60 MW or 10.46 percent from small power producers (SPPs), and 2,404.60 MW or 7.14 percent imported from neighboring countries. In 2013, there was no new power plant synchronized to EGAT power system. More capacity of only 1,080 MW derived from the purchased power from SPPs was added to the system.
Power Generation and Purchase In 2013, the peak demand topped 26,598.14 MW on May 16, 2013 marking an increase of 477.04 MW or 1.83 percent from the previous year. In 2013, the net energy totaled 173,535.45 million kWh, representing an increase of 330.32 million kWh or 0.19 percent from the preceding year. Of total electricity, the amount of 72,113.94 million kWh or 41.56 percent of the country’s energy demand was generated by EGAT’s power plants, and 101,421.51 million kWh or 58.44 percent was purchased from the private power producers and from neighboring countries.
Fuel Utilization Natural gas supply for EGAT’s electricity generation was derived from the various gas fields including the Gulf of Thailand, Nam Pong, Phu Hom, Sirikit, and imported from Myanmar. In 2013, natural gas utilization by EGAT’s power plants amounted to 385,831 billion BTU, while 386,321 billion BTU was used by IPPs’ power plants, totaling the amount of natural gas of 772,152 billion BTU used in electricity generation. In 2013, natural gas consumption by EGAT’s power plants decreased by 6.90 percent or 57 trillion BTU from the year 2012. During 2011-2013, the average price of natural gas rose up continuously owing partly to the import of expensive LNG resulting in a continued rising price since then. Other fuels included 16.88 million tons of lignite which was used for Mae Moh Power Plant, while 316.82 million liters of bunker oil used as scheduled and in emergency case decreased 1.15 percent from the previous year. Diesel was used in the amount of 60.35 million liters.
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Energy Sales EGAT’s electric energy sales totaled 169,530.32 million kWh. Its sales included 49,623.63 million kWh sold to the Metropolitan Electricity Authority (MEA), 116,793.35 million kWh to the Provincial Electricity Authority (PEA), 3,015.30 million kWh to direct customers and neighboring countries (Lao PDR, Malaysia, and Cambodia), and 98.04 million kWh to other customers purchasing electricity for temporary and standby use.
Energy Adjustment Charge (Ft Tariff) In the year 2013, the cost in power generation increased from the year 2012. The price of natural gas which is the major fuel in power generation, in particular, increased 11 Baht/million BTU or 4 percent (from the average of 300 Baht/ million BTU to 311 Baht/ million BTU), resulting in the increase of power generation cost. EGAT has been trying to manage the power generation with the maximum efficiency to control the cost to ease the cost of living burden of the consumers. As a result, the Energy Regulatory Commission (ERC) allowed the Ft Tariff to be increased only in some extent, not yet fully covering the actual cost of power generation, and EGAT had to shoulder the accrued Ft revenue.
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In 2013, the Ft Tariff was revised 3 times during January - April (the Ft Tariff of 52.04 Satang per unit), May - August (the Ft Tariff of 46.92 Satang per unit) and September - December (the Ft Tariff of 54.00 Satang per unit). In summary, in 2013, the Ft Tariff was as follows: Revision Month Ft Tariff Average Retail Tariff including Ft (Baht/Unit) (Baht/Unit)
1 2 3
January - April May - August September - December
0.52 0.47 0.54
3.80 3.75 3.82
According to the resolution of the Energy Regulatory Commission (ERC), EGAT had to temporarily shoulder the accrued Ft revenue of 1,566 million Baht.
EGAT Generation Facilities EGAT’s capacity in power generation according to types of power plants Type of Power Plant Installed Capacity (MW) Thermal Combined cycle Hydropower Diesel Renewable energy Total
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4,699.00 6,866.00 3,435.74 4.40 4.99 15,010.13
of Clean Energy Technology
Percentage of the System Capacity 13.95 20.39 10.20 0.01 0.02 44.57
EGAT’s power plant performance
1 Heat Rate (kJ/kWh) 2 GWEAF (%) 3 POF (%) 4 UOF (%)
2010 2011 2012 2013 8,835.93 8,694.21 8,662.41 8,620.00 90.72 92.75 90.54 92.10 5.48 3.39 5.00 4.10 2.46 2.58 2.84 2.30
In 2013, the overall performance of EGAT’s power plants was improved continuously with lower heat rate than in 2011 and 2012. The generating weighted equivalent availability factor (GWEAF) of all power stations of EGAT amounted 1.6 percent higher than the preceding year due to the control measure of the unplanned outage, the reduction of generation capacity, and the adjustment of maintenance schedule to be completed early without extension of the maintenance time. The planned outage factor (POF) in 2013 was 1 percent lower than 2012, while the unplanned outage factor (UOF) dropped 0.5 percent from 2012. EGAT was able to control the rate of UOF to be less than 3 percent continuously since 2010.
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Transmission System In 2013, 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 which were completed during the year included a double-circuit line of 500 kV Pachi 2 - Tha Tako and installation of KT4A and KT5A transformers of the capacity 300 MVA at Chiang Rai Substation. The newly operated substation in this year was the 115 kV Hua Wai Substation. Presently, EGAT’s grid network comprises transmission lines of 32,384.24 circuitkilometers with 213 substations, 553 delivery points, and a total transformer capacity of 87,148.94 MVA. In 2013, forced outages occurred 69 times, 16 times of which were caused by failure of the transmission lines and 53 times from the errors in substation equipment. The interruption was mainly caused by malfunction of substation equipment and control and prevention equipment (25 times), by animals (21 times), by human errors, either staff or outside people (8 times), by environment (5 times), by weather (twice), by system failure (once), and by unidentifiable reasons (7 times). Among the forced outages, important events which worth mentioning were as follows: On May 21, 2013 at 17.26 hour, a short circuit occurred at the 500 kV Bang Saphan 2 - Chom Bueng line due to lightning leading to the operation of the protection system, detaching the line from the system. At 18.41 hour, the Chom Bueng Substation had supplied the electricity to Bang Saphan 2 Substation but failed to connect with the system. More power from Malaysia had been requested, but the protection system of the transmission line linking HVDC in Malaysia had an error, ordering the line to detach from the grid system. The overall system then lost its stability leading to the separation of the system between the Central area, which is the main system of the country, and the Southern Area at 18.52 hour.
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In 2013, EGAT’s bulk power supply system reliability performance was as follows: • System interruption severity (SISI) - System-minutes (MW-minutes/MW)
8.54925
• System average interruption frequency index (SAIFI), number of occurrence/ delivery point
0.35626
• System average interruption duration index (SAIDI), minutes/delivery point
13.96649
The availability of the transmission system in 2013 was as follows:
• Transmission circuit availability (%)
99.98316
• Transformer availability (%)
99.67192
• System availability (SA) (%)
99.9973
The quality of the power supply service has been 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. 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 area 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 as well as addressing 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.
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Awards of Honor and Pride
Ban Klong Rua Micro-Hydropower Project was awarded “2013 Outstanding State-Owned Enterprise” in the category of corporate social responsibility (CSR) and the outstanding energy award in the category of the off-grid renewable energy projects. Moreover, in the “ASEAN Energy Awards 2013” contest, Ban Klong Rua Project won the first runner-up in the category of the off-grid renewable energy projects.
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Nature of Business of EGAT and Affiliates EGAT’s Business Operation EGAT is a state enterprise under the supervision of Ministry of Energy and Ministry of Finance, having the principal mission in generating, acquiring, and selling electricity to the Metropolitan Electricity Authority (MEA), Provincial Electricity Authority (PEA), a number of direct customers by law, and neighboring countries. EGAT is also responsible for other related businesses as prescribed by EGAT Act. 1. Electricity Business 1.1 Generation EGAT owns and operates various types of power plants located in 40 sites countrywide with a total installed capacity of 15,010.13 MW. Its power generation facilities consist of 3 thermal power plants, 6 combined cycle power plants, 22 hydropower plants, 8 renewable energy plants, and a diesel power plant. 1.2 Power purchase
In addition to electricity from its own power plants, EGAT also purchases bulk electricity from 11 Independent Power Producers (IPPs) totaling 12,741.69 MW, from Small Power Producers (SPPs) totaling 3,524.60 MW, and from neighboring countries, namely Lao PDR and Malaysia totaling 2,404.60 MW. 1.3 Transmission
EGAT transmits electricity generated by its 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 including 500 kV, 230 kV, 115 kV, and 69 kV. EGAT sells electricity to two distributing authorities namely MEA and PEA which further 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 22 kV lines and Malaysia at 300 kV HVDC lines.
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2. Other businesses 2.1 EGAT’s Related Businesses
In 2013, EGAT conducted many related businesses in accordance with its strategic scheme and expanded them 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 increases revenue to EGAT and builds the stability of electricity system in Thailand as well as strengthening relationship among ASEAN countries. In 2013, the outstanding EGAT’s related businesses in overseas countries were as follows. • Engineering and Construction Service at Hongsa Lignite-Fired Power Plant, Lao PDR • Operation and Maintenance Service at Hongsa Lignite-Fired Power Plant, Lao PDR (Mobilization Phase started on July 15, 2013) • Operation and Maintenance Training Program for the personnel of Myanmar Electric Power Enterprise (MEPE), Myanmar • Cooperation with Original Equipment Manufacturer (OEM) for providing Inspection Service of Gas Turbine Rotor or Comprehensive Rotor Inspection (CRI) for TUAS Power Plant (Singapore), EVN (Vietnam), and Cilegon Power Plant (Indonesia).
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In Thailand, EGAT expanded the scope of its energy-related business of Operation and Maintenance Service to SPPs, whose numbers were increasing significantly as stated in Power Development Plan 2013 (PDP 2013). Furthermore, EGAT cooperated with the leading educational institutions in the country to conduct research and development (R&D) in the by-product from electricity generation at Mae Moh Lignite-Fired Power Plant in Lampang Province, to develop fly ash and synthetic gypsum products. These byproducts are utilized in the quality improvement of cement and organic fertilizer. EGAT also provided Engineering and Construction Service for Bang Pa-In Cogeneration Power Plant and Tender Service for the District Cooling System and Power Plant Company Limited (DCAP) Project (Phase 2) for Suvarnabhumi International Airport. 2.2 Investment
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. As a holding company, RATCH gets dividends from its invested companies as main revenue. The company focuses mainly on investing and developing electricity generating business which urges diversification of resources, i.e. natural gas, oil, coal, hydro, and alternative energy. The company is also interested in performing operation and maintenance service for power plant and coal mining, as well as investing jointly with partners in various projects, both in Thailand and other countries. At present, RATCH has the total capacity of 5,168.95 MW comprising 4,570.38 MW from domestic projects and 598.57 MW from overseas projects. Shareholding As of December 31, 2013, 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.
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• EGAT International Company Limited (EGATi) Nature of Business EGATi was established by EGAT on December 18, 2007 with aims to directly invest or set up subsidiaries to invest in power development projects in foreign countries. The company was approved by the Cabinet to invest in Nam Ngiep 1 Hydropower Project (289 MW) in Lao PDR by holding 30 percent stakes in this project. The construction is under preparation with the scheduled commercial operation dated in 2019. Shareholding
As of December 31, 2013, EGATi had a total registered capital of 310.8 million shares (equivalent to 3,108 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 are 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, 2013, EDS had a total registered capital of 6.23 million shares (equivalent to 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.
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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 4 groups as follows: 1) Independent Power Producer (IPP) 2) Small Power Producer (SPP) 3) Overseas Power Producer 4) Other business groups which are operation and maintenance companies (O&M) and water supply companies. At present, EGCO has a total capacity of 4,692 MW consisting of 3,819 MW from domestic projects and 873 MW from overseas projects. Shareholding
As of December 31, 2013, EGCO had the total registered capital amounting to 530 million shares (equivalent to 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 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 co-founded on April 2, 2003 by EGAT, PTT Public Company Limited (PTT), and Metropolitan Electricity Authority (MEA). The objective of the company is to generate and sell electricity and cooling water to the Suvarnabhumi International Airport. Presently, DCAP has conducted a feasibility study for its phase 2 project, of a new cogeneration plant for supporting the Suvarnabhumi International Airport. The scheduled commercial operational date is in the mid-year 2016. Shareholding As of December 31, 2013, DCAP had a total registered capital of 167 million shares (equivalent to 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.
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EGAT’s Investment in Its Affiliates Company
Registered Capital Ownership (Million Baht) (%)
Ratchaburi Electricity Generating Holding Public Company Limited (RATCH)
14,500
45
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 3,108 (EGATi)
99.99
Subsidiary Company
53 Moo 2 Charansanitwong Road, Bang Kruai District, 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 Company
56/25 Moo 20, Khlong Nueng Sub-district, Khlong Luang District, Pathumthani 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 Company
EGCO Tower 222 Moo 5, Vibhavadi-Rangsit Road, 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)
1,670
35
Joint Venture
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
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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, 2013 and 2012 are summarized as follows: Operating Results
Revenue from sales and services Revenue from electric energy sales Revenue from sales of other goods and services Cost from sales and services Cost of electric energy sales Cost of sales of other goods and services Gross profit Other revenue Income before expenses Selling expenses Administrative expenses Other expenses Operating income Share of profit from associated company and jointly controlled entity of subsidiaries under the equity method Income before financial cost and income tax Financial cost Income tax (part of subsidiaries) Net income for the year Net income - Non-controlling interests Net income - EGAT and its subsidiaries
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2013
Million Baht
2012
Increase / (Decrease)
Million Baht Million Baht Percentage
536,913.34 512,991.89 512,820.46 486,243.70
23,921.45 26,576.76
4.66 5.47
24,092.88 26,748.19 478,658.84 455,503.10 456,479.01 430,191.42
(2,655.31) 23,155.74 26,287.59
(9.93) 5.08 6.11
(3,131.85) 765.71 (1,340.37) (574.66) 11.70 (1,561.71) 143.95 831.40
(12.37) 1.33 (21.92) (0.90) 8.87 (8.89) 149.59 1.82
22,179.83 58,254.50 4,774.20 63,028.70 143.55 16,006.77 240.18 46,638.20
25,311.68 57,488.79 6,114.57 63,603.36 131.85 17,568.48 96.23 45,806.80
2,804.34
3,761.73
(957.39) (25.45)
49,442.54 49,568.53 (125.99) (0.25) 4,416.81 5,343.21 (926.40) (17.34) 1,293.73 887.24 406.49 45.82 43,732.00 43,338.08 393.92 0.91 3,390.16 40,341.84
4,480.15 (1,089.99) (24.33) 38,857.93
of Clean Energy Technology
1,483.91
3.82
For operating results in 2013, EGAT and its subsidiaries recorded a net income of Baht 40,341.84 million, an increase of Baht 1,483.91 million or 3.82% from the year 2012. The analysis is as follows: 1.1 Analysis of revenue from electric energy sales For the year ended December 31, 2013, revenue from electric energy sales, which is the primary source of revenue of EGAT and its subsidiaries, amounted to Baht 512,820.46 million, increasing by Baht 26,576.76 million or 5.47% from Baht 486,243.70 million in 2012. The higher sales revenue was mainly attributable to an increase of Baht 0.152 in unit selling price from Baht 2.869 in 2012 to Baht 3.021 in 2013, while electricity consumption was increasing. The volume of electric energy sales of EGAT and subsidiaries for the year 2013 increased by 282.30 million kWh or 0.17% to 169,778.52 million kWh, compared with 169,496.23 million kWh in 2012. This was because the volume of electricity consumption remained high in 2012 due to government’s policies to stimulate the economy and rehabilitation after flooding, while the government’s policy especially the first-car tax rebate scheme was ended in 2013. As a result, the manufacturing sector slowed down especially in the automotive industry as well as domestic consumption and investment. Exports slowed down because the global economy had not yet fully recovered. Therefore, an increase in demand for electricity consumption in 2013 was mainly because of the hot weather in summer. 1.2 Analysis of cost of electric energy sales In 2013, the cost of electric energy sales of EGAT and its subsidiaries increased from the year 2012 by Baht 26,287.59 million. Components of the cost of electric energy sales are detailed as follows:
2013
Cost of Electric Energy Sales
Million Baht
Electricity purchased Fuel Generating expenses Transmission expenses Total
240,967.69 170,829.26 34,067.86 10,614.20 456,479.01
2012
Increase / (Decrease)
Million Baht Million Baht Percentage
209,206.82 31,760.87 176,240.28 (5,411.02) 34,962.81 (894.95) 9,781.51 832.69 430,191.42 26,287.59
15.18 (3.07) (2.56) 8.51 6.11
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1.2.1
Electricity purchased
In 2013, the cost of purchased electricity increased by Baht 31,760.87 million or 15.18%. The increase was attributable to an increase of 7,006.54 million kWh or 8.72% in electricity purchase from private power producers amounting to 87,371.86 million kWh, and the higher average power purchase price of Baht 2.758 per kWh increased by Baht 0.155 per kWh, compared with Baht 2.603 per kWh in 2012. The significant details are as follows: • Electricity purchased from Electricity Generating Plc. (EGCO) decreased by 1,310.89 million kWh or Baht 3,008.49 million because the demand for electricity was lower than the prior year. Therefore, EGAT decreased in electricity purchasing from intermediate plants which could unlock and parallel the power plant to the system instantly. • Electricity purchased from GHECO-One Co.,Ltd. increased by 1,182.47 million kWh or Baht 3,999.69 million due to the fact that in 2013 EGAT was ready to operate more than prior year. EGAT started to commercial trade on July 26, 2012 and first synchronize on November 1, 2012. • Electricity purchased from small power producers increased by 7,506.35 million kWh or Baht 27,735.37 million due to an increase of purchasing power from non-firm because there was generation availability and an increase in commercial operation from 12 producers. • Electricity purchased from Electricité Du Laos increased by 2,051.68 million kWh or Baht 3,340.58 million due to heavy rain. Therefore, there was a lot of water in the dam thus the company had much more generation availability. 1.2.2 Fuel cost In 2013, the electricity produced by EGAT and its subsidiaries amounted to 86,414.88 million kWh, decreasing from the prior year by 6,590.43 million kWh from 93,005.31 million kWh in 2012. The details of fuel consumption are as follows:
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Fuel
Natural gas (MBtu) Heavy oil (liter) Diesel oil (liter) Palm oil (kg) Lignite (ton)
2013
2012
Million Unit
Million Unit
495.39 355.39 80.84 7.34 16.88
525.86 500.43 28.57 - 16.78
Increase / (Decrease)
Million Unit Percentage
(30.47) (145.04) 52.27 7.34 (0.10)
(5.79) (28.98) 182.95 100.00 (0.60)
The fuel cost for the year ended December 31, 2013 amounted to Baht 170,829.26 million, decreasing by Baht 5,411.02 million or 3.07%. The details of fuel cost are as follows:
Fuel
Natural gas Heavy oil Diesel oil Palm oil Lignite Total
2013
Million Baht
2012
Increase / (Decrease)
Million Baht Million Baht Percentage
150,649.29 154,417.50 (3,768.21) (2.44) 7,895.24 11,905.41 (4,010.17) (33.68) 2,081.57 685.29 1,396.28 203.75 214.11 - 214.11 100.00 9,989.05 9,232.08 756.97 8.20 170,829.26 176,240.28 (5,411.02) (3.07)
1.2.3 Electricity Generating Expenses For the year ended December 31, 2013, expenses for electricity generation decreased by Baht 894.95 million. The decrease was mainly attributable to a decrease in depreciation of generation assets under the power plant and equipment for power plant item of subsidiaries by Baht 522.97 million. In addition, there were the major overhaul and minor inspection, the major maintenance of the power plants of EGAT, which is not recorded as expenses in the period. EGAT recorded them as assets increasing from prior year by Baht 329.81 million.
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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 2013, EGAT and its subsidiaries recorded the revenue from sales of other goods and services in the amount of Baht 24,092.88 million, decreasing from the year 2012 by Baht 2,655.31 million or 9.93%, and the cost from sales of other goods and services in the amount of Baht 22,179.83 million, decreasing from the year 2012 by Baht 3,131.85 million or 12.37%. 1.4 Other revenue Other revenue for the year ended December 31, 2013 amounted to Baht 4,774.20 million, decreasing from 2012 by Baht 1,340.37 million or 21.92% due to the following reasons. • A decrease in gain from power purchase agreement cancellation of Collinsville Power Plant of Ratchaburi Electricity Generating Holding Plc. in the amount of Baht 1,069.44 million. • A decrease in gain on disposal of long-term investment from share offering 14% of Loy Yang A Power Plant which is indirect subsidiary of Ratchaburi Electricity Generating Holding Plc. in the amount of Baht 783.68 million. • An increase in gain on sale of long-term receivables of indirect subsidiary of Ratchaburi Electricity Generating Holding Plc. in the amount of Baht 645.83 million. 1.5 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, 2013, share of profit under the equity method totaled Baht 2,804.34 million, decreasing from the year 2012 by Baht 957.39 million or 25.45% which consisted of share of profit from associated company and share of profit from jointly controlled entity in the amount of Baht 935.15 million and Baht 22.24 million respectively. 1.6 Income tax For the year ended December 31, 2013, the income tax of its subsidiary, namely Ratchaburi Electricity Generating Holding Plc. amounted to Baht 1,293.73 million, increased from the year 2012 by Baht 406.49 million or 45.82% due to dividend income.
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2. Analysis of Financial Status of EGAT and Its Subsidiaries
2013
2012
Increase / (Decrease)
Financial Status
Million Baht
Million Baht Million Baht Percentage
Total assets Total liabilities Owners’ equity of EGAT and its subsidiaries Non-controlling interests
578,380.63 231,299.21
533,270.08 208,296.15
45,110.55 23,003.06
8.46 11.04
315,928.06 31,153.36
294,868.74 30,105.19
21,059.32 1,048.17
7.14 3.48
As at December 31, 2013, the total assets of EGAT and its subsidiaries increased by Baht 45,110.55 million mainly due to the following reasons.
• An increase in cash and cash equivalents of Baht 26,766.45 million, mainly from an increase in fixed deposits not more than 3 months of EGAT and its subsidiaries in amount of Baht 23,319.61 million and an increase in government bonds not more than 3 months of EGAT in amount of Baht 3,998.23 million. • An increase of Baht 23,299.41 million in temporary investment, largely from an increase in fixed deposits not more than 12 months of EGAT and its subsidiaries in amount of Baht 27,034.38 million and a decrease in receipts of fixed deposits in amount of Baht 3,909.00 million. • An increase of Baht 8,963.28 million in accounts receivable, largely from an increase of Baht 10,047.61 million from Metropolitan Electricity Authority and a decrease of Baht 3,459.29 million from Provincial Electricity Authority respectively. • An increase in investment in associated company and jointly controlled entities of subsidiaries by using equity method of Baht 2,178.66 million. The details are as follows:
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Unit : Million Baht
Increase (Decrease)
Associated Companies Electricity Generating Plc. 1,393.23 First Korat Wind Co.,Ltd. 139.66 K.R. Two Co.,Ltd. 136.93 Nam Ngieb 1 Power Co.,Ltd. 314.48 1,984.30 Jointly-Controlled Entities Tri Energy Co.,Ltd. (291.27) Ratchaburi Power Co.,Ltd. 185.56 Chubu Ratchaburi Electric Services Co.,Ltd. (32.69) SouthEast Asia Energy Ltd. 154.86 Hongsa Power Co.,Ltd. (435.43) Phufai Mining Co.,Ltd. (0.04) Nam Ngum 3 Hydro electric Power Co.,Ltd. (0.34) Nava Nakorn Electricity Generation Co.,Ltd. 52.50 Ratchaburi World Cogeneration Co.,Ltd. 31.89 Solarta Co.,Ltd. 138.94 Solar Power (Korat 3) Co.,Ltd. 18.46 Solar Power (Korat 4) Co.,Ltd. 15.32 Solar Power (Korat 7) Co.,Ltd. 17.50 Songkhla Biomass Co.,Ltd. 31.81 Perth Power Partnership (Kwinana) (56.60) KK Power Co.,Ltd. (15.16) Songkhla Biofuel Co.,Ltd.q (0.01) Sukhothai Energy Co.,Ltd. (22.58) Xae Pien – Xae Nam Noi Co.,Ltd. 383.71 Ayudhya Power Co.,Ltd. 17.93 194.36 Total 2,178.66
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• Long-term investments decreased by Baht 9,751.69 million, largely from investment of EGAT in fixed deposits more than 12 months of Baht 10,005.34 million. • Net property, plant and equipment decreased by Baht 7,271.99 million as the assets of EGAT and its subsidiaries increased during the year of Baht 14,429.48 million, while depreciation for the year was valued at Baht 21,701.46 million.
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• Work under construction increased of Baht 8,282.98 million resulting from the Chana combined power plant construction project - Block 2 and the Wang Noi combined power plant construction project - Block 4. • Other non-current assets decreased by Baht 3,693.42 million, largely from divestment of subsidiaries in the amount of Baht 3,137.92 million. As at December 31, 2013, the total liabilities of EGAT and its subsidiaries increased by Baht 23,003.06 million, mainly detailed as follows: • Account payables increased by Baht 23,683.48 million, mostly from an increase in account payable - cost of electricity purchase from electricity purchased payable and fuel cost amounting to Baht 14,450.00 million and 8,192.37 million respectively. • Short - term loans increased by Baht 7,074.22 mainly because of an increase in short - term loans from financial institutions of subsidiaries. • Long-term loans and current portion of long-term loans decreased by Baht 8,252.38 million, due to repayment of EGAT’s long term loans amounting to Baht 22,568.45 million, offset by asking for a long term loans amounting to Baht 16,065.70 million. Owners’ equity of EGAT and its subsidiaries totaled Baht 315,928.06 million, increasing by Baht 21,059.32 million, as shown in the following details. • For the year ended December 31, 2013, the net income of EGAT and its subsidiaries totaled Baht 40,341.84 million. • EGAT wrote off the contribution from the government of multi-purpose dams in the portion of their irrigation purposes, resulting in a decrease of Baht 62.33 million. • A decrease in other comprehensive income in the amount of Baht 160.01 million. • Estimated remittance to the Ministry of Finance in the amount of Baht 19,060.18 million
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3. Analysis of Cash flow As at December 31, 2013, cash and cash equivalents of EGAT and its subsidiaries amounted to Baht 67,078.80 million, increasing from December 31, 2012 by Baht 26,766.45 million. The reasons are as follows: Unit : Million Baht
Cash and cash equivalents as at December 31, 2012 (Restated) Net cash inflows from operating activities Net cash outflows from investing activities Net cash outflows from financing activities Effects from foreign exchange rate in cash and cash equivalents Cash and cash equivalents as at December 31, 2013
40,312.35 88,510.75 (34,332.36) (27,348.51) (63.43) 67,078.80
In 2013, net cash inflows from operating activities totaled Baht 88,510.75 million which was derived from net income of Baht 40,341.84 million, adjusted by non-cash items in statements of income, such as depreciation and gains (losses) on foreign exchange etc. totaling Baht 35,993.78 million. Besides, changes in working capital resulted in an increase in cash of Baht 12,498.19 million, cash receipts on interest of Baht 1,070.92 million, and cash payment on income tax totaling Baht 1,393.98 million. Net cash outflows from investing activities amounted to Baht 34,332.36 million, consisting of investments for the construction of power plant projects, transmission system, and construction projects and durable goods included interests totaling Baht 24,296.64 million, additional temporary investments in the amount of Baht 23,248.28 million, the payment for additional share capital in associated company and the jointly controlled entities of subsidiaries totaling Baht 500.60 million. Meanwhile, EGAT and its subsidiaries received cash on long-term investments of Baht 10,044.49 million, dividends of Baht 2,001.17 million, and interest of Baht 795.13 million. Net cash outflows from financing activities totaled Baht 27,348.51 million, comprising of cash receipts from short and long-term loans of Baht 32,226.67 million, repayment of loans of Baht 32,242.67 million, remittance to the Ministry of Finance of Baht 17,671.88 million, and dividend payment of Baht 5,101.06 million.
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4. Financial Ratio Based on the operating results and financial status for the years ended December 31, 2013 and 2012, the financial ratios of EGAT and its subsidiaries are as follows:
Liquidity Ratio
2013
2012
Current ratio (Time) Quick ratio (Time) Cash ratio (Time)
1.51 1.40 0.82
1.42 1.28 0.70
10.85 8.15 73,935.01
11.21 8.45 70,321.12
7.87 26.12 0.98
8.41 25.13 1.02
0.67 11.19 1.57
0.64 9.28 1.03
Profitability Ratio Ratio of gross profit to net sales (Percentage) 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 Debt to equity ratio (Time) Times interest earned (Time) Fixed charge coverage (cash basis) (Time)
Remark : EBITDA is calculated from gross profit after selling expenses, administrative expenses, excluding depreciation and other amortization expenses.
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Enterprise Risk Management Enterprise Risk Management is an essential tool for the organization to efficiently and effectively achieve its objectives and targets for value enhancement of the organization to obtain the maximum benefit. The implementation of the integrated enterprise risk management has provided the confidence that EGAT’s operation and business continuity can efficiently meet the organization’s vision and mission within the acceptable risk. EGAT has systematically applied the Risk Management according to COSO - ERM, the international framework for the enterprise risk management, and the Risk Management of State Enterprise of the Ministry of Finance throughout the organization. It is so important that EGAT has thoroughly monitored its risk management in every level. The Enterprise Risk Management Committee (RMC) has been established by the Board of Directors to cooperate with Deputy Governors of every business unit in monitoring and overseeing the sufficiency and efficiency of the overall risk management. The Audit Committee reviews the appropriateness of the risk management system and reports to the Board of Directors. The risk management plan, follow-up, and report are submitted to the Board of Directors every quarter of the year for monitoring and revising the sufficiency of risk management action plans/measures to be within the Risk Appetite of the organization.
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Risk Management in 2013
EGAT has considered risk factors in all aspects which could compromise its operation under the current year. The four core aspects of key risk management consist of Strategic and Corporate Risk, Financial Risk, Operational Risk, and Compliance Risk. In May 2013, EGAT was able to cope with major critical incidents such as the power outage incident caused by the climate condition and lightning striking the transmission lines which occurred in 14 Provinces in the South of Thailand. According to the existing measures in the security of power aspect of EGAT’s risk management system, the blackout restoration plan was implemented to restore power and regain the power system to its normal condition as fast as possible and restrict affected area within the southern region. After the incident was resolved, EGAT set up a meeting to review the measures in order to prevent the probability of reoccurrence as well as establishing the short-term and long-term measures including the collaboration with Provincial Electricity Authority (PEA) and Metropolitan Electricity Authority (MEA). Investment on transmission system in the southern area has been made by constructing 3 new 500 kV transmission line routes in order to increase the stability and reliability of the national power system. Moreover, during the disruption of the natural gas production in Myanmar for maintenance such as the 8-day disruption of gas supply from Yadana Source in April 2013 and the 14-day disruption of gas supply from Yetakun Source in December 2013 which led to the natural gas shortage in Thailand, EGAT applied the measures of risk management system by replacing the natural gas with bunker oil and diesel. This made EGAT be able to maintain the stability of the power system and to respond to consumers’ demand. Regarding Compliance Risk aspect, EGAT has given close attention to law and regulation compliance. In order to manage risks which involve the violation of any related laws and regulations, EGAT has set up preventive and proactive plans and measures to avoid and reduce impacts from such risks. For instance, EGAT has established information system and alert system concerning related laws/regulations such as the Environment Impact Assessment (EIA), Health Impact Assessment (HIA), and Social Impact Assessment (SIA). In addition, EGAT has been well aware of the new related laws which are expected to be enacted and may have effects on EGAT’s operations such as the secondary laws provided for the Energy Industry Act, B.E. 2550 (2007). EGAT has closely monitored and thoroughly studied the effects of the new laws and regulations and has kept all concerned units informed so that EGAT can ready itself for any compliance risks. As a result of systematically and continuously managing risks during the year 2013, EGAT was able to fulfill its assignment as well as achieving its strategic objectives as stated in the enterprise corporate plans.
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Organization Chart
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Structure of Organizational Management EGAT organizational management consists of a Board of Directors and EGAT executives. Apart from establishing broad policies and objectives to oversee EGAT’s overall operations, the Board of Directors also appoints EGAT executives to be responsible for managing the organization in accordance with the given policies and strategies. In 2013, the EGAT Board of Directors comprised persons from public and private sectors having qualification as mentioned in the List of State Enterprise Directors in the Notification of the Ministry of Finance and had specific professional skills beneficial to the EGAT’s operation. The qualification of the members of Board of Directors shall comply with the Act on Standards for Qualification of Board of Director Members and Employees of State Enterprises, B.E. 2518 (1975) and its amendment. Qualification of EGAT Board Committees shall comply with EGAT regulation on EGAT Board Committees. 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 according to the Act on Standards for Qualification of Board of Director 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
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• 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 • 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 1.3 Members of the Board of Directors No. Name Position
1 2 3 4 5 6 7 8
9 10 11 12 13 14
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Mr. Pornchai Rujiprapa Mrs. Anchalee Chavanich Mr. Kurujit Nakornthap Mr. Trakul Winitnaiyapak Mr. Sukit Charoenrattanakul Mr. Porametee Vimolsiri Mr. Prawit Sarakitprija* Mr. Kulit Sombatsiri
(Representative of Ministry of Finance)
Chairperson Chairperson Director Director Director Director Director Director
Term of Office in 2013 Jan. 1 - Jan. 31 Feb. 12 - Dec. 31 Jan. 1 - Dec. 31 Jan. 1 - Dec. 31 Jan. 1 - Feb. 11 Jan 1 - Dec. 31 Jan. 1 - Sept. 30 Jan. 1 - Dec. 31
Mrs. Amporn Nitisiri Director Jan. 1 - Dec. 31 Mr. Chuan Sirinantporn Director Feb. 12 - Dec. 31 Mr. Surachai Tansitpong Director Jan. 1 - Dec. 31 Mr. Yongyutt Chaipromprasith Director Jan. 1 - Dec. 31 Mr. Prachuab Ujjin Director Feb. 12 - Dec. 31 EGAT Governor Director (Ex-officio) Jan. 1 - Jul. 30 (Mr. Sutat Patmasiriwat)** & Secretary EGAT Governor Director (Ex-officio) Jul. 31 - Dec. 31 (Mr. Soonchai Kumnoonsate)*** & Secretary
Remark : * Resigned, effective from October 1, 2013 ** Retired on July 30, 2013 as having reached 60 years of age according to the hiring contract of EGAT Governor *** Appointed by the Cabinet on July 19, 2013 to replace Mr. Sutat Patmasiriwat, effective from July 31, 2013 and serves as director (ex-officio)
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1.4 Board Members Holding Office in EGAT’s Affiliates No. Name Position in EGAT’s Term of Office Affiliates in 2013 Electricity Generating Public Company Limited (EGCO) 1. 2.
Mr. Pornchai Rujiprapa Mr. Kulit Sombatsiri
Chairman Director
Jan. 1 - Dec. 31 Jan. 1 - Dec. 31
Ratchaburi Electricity Generating Holding Public Company Limited (RATCH)
1. 2. 3. 4. 5. 6.
Mr. Kurujit Nakornthap Mr. Trakul Winitnaiyapak Mr. Surachai Tansitpong Mr. Sutat Patmasiriwat Mr. Soonchai Kumnoonsate Mr. Prachuab Ujjin
Chairman Director Director Director Director Director
Jan. 1 - Dec. 31 Jan. 1 - Dec. 31 Jan. 1 - Apr. 31 Jan. 1 - Oct. 1 Feb. 1 - Dec. 31 Apr. 24 - Dec. 31
EGAT International Company Limited (EGATi) 1. 2.
Mr. Sutat Patmasiriwat Mr. Soonchai Kumnoonsate
Chairman Chairman
Jan. 1 - Sept. 30 Oct. 24 - Dec. 31
2. Board Committees
In 2013, 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, other committees to consider matters concerning nomination of EGAT management were also appointed. These committees were Committee for Deputy Governor Nomination, Committee for Assistant Governor and Division Director Nomination, and Committee for Advisor and Expert Nomination. As the then EGAT Governor (Mr. Sutat Patmasiriwat) completed his office term as specified in the hiring contract and retire in 2013, the Committee for Governor Nomination and Subcommittee on Hiring Payment of Governor were established to nominate knowledgeable and experienced person as EGAT Governor and to consider hiring contract, payment, other compensation, and criteria for performance evaluation.
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2.1 Executive Committee Duties and Responsibilities • Consider and approve Term of Reference (TOR) and procurement of supplies within the value limits not exceeding 500 million Baht • Consider and screen all issues concerning EGAT’s financial and investment policies and plans as well as annual budget, and recommend the financial and investment strategies that will be beneficial to EGAT • Approve information technology master plan • Consider other issues assigned by the Board or proposed by the Management before submitting to the Board Members of the Executive Committee No. Name Position 1 Mr. Pornchai Rujiprapa 2 Mrs. Anchalee Chavanich 3 Mr. Kurujit Nakornthap 4 Mr. Trakul Winitnaiyapak 5 Mr. Kulit Sombatsiri 6 Mr. Prachuab Ujjin 7 Mr. Sutat Patmasiriwat 8 Mr. Soonchai Kumnoonsate
Chairperson Chairperson Member Member Member Member Member (Ex-officio) & Secretary Member (Ex-officio) & Secretary
Term of Office in 2013 Jan. 1 - Jan. 31 Feb. 15 - Dec. 31 Jan. 1 - Dec. 31 Jan. 1 - Dec. 31 Jan. 1 - Dec. 31 Feb. 15 - Dec. 31 Jan. 1 - July 30 July 31 - Dec. 31
Remark: - New Board of Director and Executive Committee were appointed on February 12 and 15, 2013 respectively by replacing Mr. Pornchai Rujiprapa by Mrs. Anchalee Chavanich as Chairperson - Mr. Soonchai Kamnoonsate was appointed EGAT Governor and Committee Member (Exofficio) effective from July 31, 2013 replacing Mr. Sutat Patmasiriwat who retired on July 30, 2013.
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2.2 Audit Committee Duties and Responsibilities • Review the adequacy and effectiveness of EGAT’s internal control and risk management system • Review the reliability of financial statements and financial reports • Monitor observance of laws, rules and regulations, related policies, and EGAT Code of Conduct and Ethics • Monitor the effectiveness and efficient use of information technology systems and resources that meet corporate objectives and create added values for EGAT • Monitor the executive management’s response to recommendations made by independent auditors and the Internal Audit Bureau concerning internal controls and risk management • Review the operation of the Internal Audit Bureau and consider, in consultation with EGAT Governor, the appointment, transfer, performance evaluation, and salary raise of the Assistant Governor - Internal Audit Bureau • Meet and discuss with independent auditors the results of the annual audit • Review 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 Name Position 1 Mr. Surachai Tansitpong 2 Mr. Prawit Sarakitprija* 3 Mr. Yongyutt Chaipromprasith** 4 Mr. Porametee Vimolsiri 5 Assistant Governor - Internal Audit
Chairman Member Chairman Member Member Secretary (Ex-officio)
Term of Office in 2013 Jan. 1 - Jan. 31 Jan. 1 - Jan. 31 Feb. 15 - Sept. 30 Feb. 15 - Dec. 31 Jan. 1 - Dec. 31 Jan. 1 - Dec. 31
Remark: * Appointed as member of the Audit Committee from November 4, 2011 to January 31, 2013 and appointed as Chairman on February 15, 2013 replacing Mr. Surachai Tansitpong who completed his term of office. Resigned from EGAT Board of Directors on October 1, 2013. ** Appointed as member of the Audit Committee in the 2/2013 meeting replacing Mr. Prawit Sarakitprija, Chairman
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2.3 Enterprise Risk Management Committee Duties and Responsibilities • Ensure the adequacy and effectiveness of risk management framework and policies which cover all EGAT’s operations • Review policies and systems used in assessing and evaluating risk management and controls as well as auditing and reporting procedures • Oversee and ensure the observance of risk management • Review EGAT’s risk management reports and information to be submitted to regulatory bodies and the public • Perform 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 1 2 3 4 5 6
Mr. Kurujit Nakornthap Chairman Mr. Sukit Charoenrattanakul Member Mr. Yongyutt Chaipromprasith Member Mr. Prachuab Ujjin Member Mr. Chuan Sirinantporn Member Deputy Governor - Policy and Member & Secretary Planning (Ex-officio)
Term of Office in 2013 Jan. 1 - Dec. 31 Jan. 1 - Jan. 31 Jan. 1 - Jan. 31 Feb. 15 - Dec. 31 Feb. 15 - Dec. 31 Jan. 1 - Dec. 31
2.4 Corporate Governance Committee Duties and Responsibilities • Establish policy, strategies, and practical guidelines for corporate governance and social responsibility • Oversee and ensure the observance of the defined plans and practices • Promote and encourage involvement of Directors, EGAT management, and employees in corporate governance and CSR activities
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Members of Corporate Governance Committee No. Name Position
Term of Office in 2013
1 Mr. Trakul Winitnaiyapak Chairman 2 Mr. Kulit Sombatsiri Member Member 3 Deputy Governor - Administration 4 Deputy Governor - Corporate Social Affairs Member Member 5 Assistant Governor - Human Resources Secretary 6 Director of the Office of the Governor (Ex-officio)
Jan. 1 - Dec. 31 Jan. 1 - Dec. 31 Jan. 1 - Dec. 31 Jan. 1 - Dec. 31 Jan. 1 - Dec. 31 Jan. 1 - Dec. 31
2.5 Human Resources Committee Duties and Responsibilities • Propose policy guidelines on human resources • Consider EGAT’s Human Resources Master Plan before submission to the Board of Directors • Perform any other tasks related to HR oversight as assigned by the Board of Directors Members of Human Resources Committee No Name Position 1 Mr. Sukit Charoenrattanakul Chairperson 2 Mrs. Amporn Nitisiri Member Chairperson 3 Mr. Chuan Sirinantporn Member Member 4 EGAT Governor Member 5 Deputy Governor - Administration 6 Assistant Governor - Human Resources Member & Secretary (Ex-officio)
Term of Office in 2013 Jan. 1 - Feb. 11 Jan. 1 - Jan. 31 Feb. 15 - Dec. 31 Feb. 15 - Dec. 31 Feb. 15 - Dec. 31 Jan. 1 - Dec. 31 Jan. 1 - Dec. 31
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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 in 2013
Chairperson 1. EGAT Board of Directors (Mr. Pornchai Rujiprapa) (Ex-officio) Chairperson 2 EGAT Board of Directors (Mrs. Anchalee Chavanich) (Ex-officio) 3 Mr. Kurujit Nakornthap Member 4 Mr. Trakul Winitnaiyapak Member 5 Mr. Surachai Tansitpong Member 6 Mr. Santad Jirayuwat Member 7 Mr. Apichart Dilogsopon Member 8 Mr. Wirash Kanchanapibul Member 9 EGAT Governor Member & Secretary (Ex-officio)
Jan. 1 - Jan. 31 Feb. 15 - Dec. 31 Jan. 1 - Dec. 31 Jan. 1 - Dec. 31 Jan. 1 - Jan. 31 Jan. 1 - Jan. 31 Jan. 1 - Dec. 31 Feb. 15 - Dec. 31 Jan. 1 - Dec. 31
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. Members of the Committee for Assistant Governor and Division Director Nomination No. Name Position
Term of Office in 2013
Chairman 1 EGAT Governor (Ex-officio) 2 Mr. Kurujit Nakornthap Member Member 3 Deputy Governors 4 Deputy Governor - Administration Member & Secretary (Ex-officio)
Jan. 1 - Dec. 31
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Jan. 1 - Dec. 31 Jan. 1 - Dec. 31 Jan. 1 - Dec. 31
2.8 Committee for Advisor and Expert Nomination The Committee is responsible for considering and recommending candidates for the position of advisors and experts. Members of the Committee for Advisor and Expert Nomination No. Name Position
Term of Office in 2013
1 EGAT Governor
May 28 - Dec. 31
Chairman (Ex-officio) 2 Mrs. Amporn Nitisiri Member 3 Mr. Wirash Kanchanapibul Member 4 Deputy Governor - Administration Member & Secretary 5 Assistant Governor - Human Resources Assistant secretary
May 28 - Dec. 31 May 28 - Dec. 31 May 28 - Dec. 31
May 28 - Dec. 31
2.9 Committee for EGAT Governor Nomination The Committee is responsible for considering and recommending candidates with suitable capability and experiences to the Board of Directors for the position of EGAT Governor. The nominees must not possess prohibited attributes according to the law. Members of the Committee for EGAT Governor Nomination No. Name 1 2 3 4 5 6
Position
Mr. Kurujit Nakornthap Mr. Yongyutt Chaipromprasith Mr. Suthep Liamsiricharoen Mr. Porametee Vimolsiri Mrs. Siriporn Luengnual
Chairman Member Member Member Member Assistant Governor - Human Resources Secretary
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2.10 Subcommittee on Hiring Payment of EGAT Governor The Subcommittee on Hiring Payment of Governor is responsible for considering the payment rate and other compensation for EGAT Governor, setting up criteria for performance evaluation, preparing EGAT Governor hiring contract, negotiating the hiring rate with other candidates proposed by the Committee for EGAT Governor Nomination, submitting achievement report to the EGAT Board of Directors, and assigning the work to relevant units and employees of EGAT, as appropriate. Members of the Subcommittee on Hiring Payment of EGAT Governor No Name 1 2 3 4 5
Position
Mr. Kulit Sombatsiri Mrs. Amporn Nitisiri Mr. Prachuab Ujjin Mrs. Panchanitta Bunkrong
Chairman Member Member Member Assistant Governor - Human Resources Secretary
3. Meetings of the Board of Directors and Committees
The Board of Directors regularly meets at least once a month. Additional meetings are convened as necessary. For each meeting, further information from the Management can be requested by the members. For the Board Committees, certain committees regularly meet on a monthly basis whereas others hold meetings only when needs arise.
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Remark: Times of attendance by each member against total number of meetings convened during his/her period of office
1 Mr. Pornchai Rujiprapa 1/1 1/1 2 Mrs. Anchalee Chavanich 11/11 13/13 1/1 3 Mr. Kurujit Nakornthap 12/12 14/14 1/1 4/4 3/3 6/6 4 Mr. Trakul Winitnaiyapak 9/12 10/14 4/4 0/1 5 Mr. Sukit Charoenrattanakul 1/1 1/4 6 Mr. Porametee Vimolsiri 10/12 14/14 9/10 4/6 7 Mr. Prawit Sarakitprija 4/9 8/10 8 Mr. Kulit Sombatsiri 9/12 12/14 4/4 2/2 9 Mr. Surachai Tansitpong 1/1 1/1 10 Mrs. Amporn Nitisiri 11/12 3/3 1/1 0/2 11 Mr. Chuan Sirinantporn 9/12 0/3 12 Mr. Yongyutt Chaipromprasith 11/12 10/10 6/6 13 Mr. Prachuab Ujjin 11/11 12/13 3/3 2/2 14 Mr. Apichart Dilogsophon 1/1 15 Mr. Suthep Liamsirichareon 5/6 16 Mrs. Siriporn Luengnual 6/6 17 Mr. Wirash Kanchanapibul 1/1 18 Mrs. Panchanitta Bunkrong 2/2 19 Mr. Sutat Patmasiriwat 7/7 8/8 1/1 20 Mr. Soonchai Kumnoonsate 5/5 6/6
No Name Board of Executive Audit Corporate Human Committee for Committee for Enterprise Committee for Committee for Subcommittee Directors Committee Committee Governance Resources Deputy Assistant Risk Advisor EGAT Hiring Committee Committee Governor Governor & Management and Expert Governor Payment of EGAT Nomination Division Director Committee Nomination Nomination Governor Nomination
Meeting Attendance in 2013
4. Board Self-Assessment
Board self-assessment is conducted to examine the performance and effectiveness of the Board of Directors to help identify weak points that need improvement. The self-assessment also provides an opportunity for all Board members to review their past performance and obstacles confronted and to gauge their contribution to EGAT’s success in order to improve their performance in discharging their oversight duties and in determining EGAT’s strategic directions. The annual self-assessment comprises individual self-assessment and collective Board self-assessment. Results of the evaluation are notified to the entire Board for discussion. Moreover, there are meetings that are held without the attendance of executives and members (ex-officio) in accordance with the State Enterprise’s Corporate Governance measures that need the independent members having the meeting without the presence of ex-officio from time to time. For new Board members, an orientation program has been provided. The program includes an insight into EGAT’s policies, mission, rules and regulations, business operations and practices, and work systems. They have also been given a set of handbooks containing guidelines and other necessary information. In addition, training and development programs are available to all Board members. Members of the Board are informed of the training/seminar programs organized by various institutions in which they can express their interest to attend as appropriate.
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5. Remuneration for Directors
The remuneration for directors of EGAT is stated at the rates approved by the Cabinet. In addition, directors appointed to serve as members of Board committees including Audit Committee, Executive Committee, Corporate Governance Committee, and Enterprise Risk Management Committee will receive more remuneration at the same rates. The remuneration for EGAT Board of Directors in 2013 totaled 7,622,851.56 Baht detailed as follows: No. Name Payment
Meeting Bonus Allowance (Baht) (Baht)
Total (Baht)
1 Mr. Pornchai Rujiprapa - 50,000.00 49,218.75 99,218.75 2 Mrs. Anchalee Chavanich 100,000.00 262,500.00 522,070.31 884,570.31 3 Mr. Kurujit Nakornthap 50,000.00 280,000.00 457,031.25 787,031.25 4 Mr. Trakul Winitnaiyapak 50,000.00 222,500.00 435,937.50 708,437.50 5 Mr. Sukit Charoenrattanakul - 12,500.00 13,710.95 26,210.95 6 Mr. Porametee Vimolsiri 50,000.00 240,000.00 457,031.25 747,031.25 7 Mr. Prawit Sarakitprija 20,000.00 160,000.00 189,140.62 369,140.62 8 Mr. Kulit Sombatsiri 50,000.00 225,000.00 354,375.00 629,375.00 9 Mrs. Amporn Nitisiri 50,000.00 232,500.00 457,031.25 739,531.25 10 Mr. Surachai Tansitpong - 32,500.00 39,375.00 71,875.00 11 Mr. Chuan Sirinantporn 50,000.00 70,000.00 313,242.19 433,242.19 12 Mr. Yongyutt Chaipromprasith 50,000.00 270,000.00 457,031.25 777,031.25 13 Mr. Prachuab Ujjin 50,000.00 210,000.00 417,656.25 677,656.25 14 Mr. Sutat Patmasiriwat - 100,000.00 274,354.84 374,354.84 15 Mr. Soonchai Kumnoonsate 50,000.00 50,000.00 198,145.15 298,145.15 Total 570,000.00 2,417,500.00 4,635,351.56 7,622,851.56
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Two Decades of DSM‌. More Than Energy Saving
During its two decades, the Demand Side Management (DSM) has successfully encouraged the awareness of the Thai people in energy conservation. The project can reduce 3,000 MW of electricity demand and 17,840 million kWh of energy. The emission of carbon dioxide, which is the cause of global warming, can be reduced for more than 10.7 million tons.
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Board of Directors Mrs. Anchalee Chavanich Age 63 Chairman
Education/Training
• M.S. (Engineering Management), University of Missouri-Rolla, U.S.A. • Bachelor of Engineering (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 • Executive Program on Administrative Justice • National Defense Course, National Defense College • Executive Program, Capital Market Academy • Executive Program, King Prajadhipok’s Institute • National Defense Course, National Defense College • Energy Literacy Leadership Program, Thailand Energy Academy Work Experience
2011 - Present 2000 - Present 2000 - Present 2004 - 2010 2000 - 2004
President, Thai Industrial Estate and Strategic Partner Association Chairman, Coral and Coastal Conservation Foundation Chairman, Thai Industrial Estate Foundation Advisor, Industrial Estate Authority of Thailand 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, Thai Industrial Estate Foundation
Amount/Value of Shares in Other Companies*
None Connected Transaction in 2013
*
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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
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Mr. Kurujit Nakornthap Age 58 Director
Education/Training
• Ph.D. in Petroleum Engineering, University of Oklahoma, U.S.A. • M.Sc. in Petroleum Engineering, University of Oklahoma, U.S.A • Bachelor of Science (with Special Distinction) in Petroleum Engineering, University of Oklahoma, U.S.A • Training Program for Senior Civil Servants (Class 46), 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 (DAP 64/2007) • Audit Committee Program (ACP 32/2010) • Role of Compensation Committee Program (RCC 12/2011) • National Defense Course (Class 51), National Defense College • Executive Program in Commerce and Trade (TEPCoT) (Class3/2010) • Leadership for Change (Class 2/2011), Right Livelihood Foundation, Matichon Group • Executive Program on Administrative Justice (Class 2/2011), Institute of Administrative Justice Development • Executive Program (Class 12/2011), Capital Market Academy • Energy Literacy Leadership Program (Class 1/2012), Thailand Energy Academy Work Experience
2010 - Present 2008 - 2010 2006 - 2008 2006
Deputy Permanent Secretary, Ministry of Energy Director - General, Department of Mineral Fuels, Ministry of Energy Deputy Permanent Secretary, Ministry of Energy 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) • Director, ESSO (Thailand) Public Company Limited • Director, Electricity Generating Public Company Limited
Amount/Value of Shares in Other Companies*
None
Connected Transaction in 2013
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
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MR. Trakul Winitnaiyapak Age 63 Director
Education/Training
• • • • •
•
•
• • •
•
Master of Law (LLM.), School of Law, Tulane University, U.S.A. Barrister at Law, Institute of Legal Education of Thai Bar Association LLB., Thammasat University National Defense Course of the Joint State-Private Sector, 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’ s Program on Senior Crisis Management, Maryland University, U.S.A.
Work Experience
2011 - Present 2005 - 2011 2005 - 2006 2003 - 2005
Deputy Attorney - General, Office of the Attorney General Inspector General, Office of the Attorney General Director - General, Advisory Department, Office of the Attorney General 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 2013
*
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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
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Mr. Porametee Vimolsiri Age 53 Director
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 (DCP) (Class 86/2007), Thai Institute of Directors Chief Information Officer (CIO) organized by Office of Civil Service Commission and NASDA 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, Mass Rapid Transit Authority of Thailand 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 2013
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
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Mr. Kulit Sombatsiri Age 50 Director
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 Leadership Program (Class10), Capital Market Academy Corporate Governance Program for Directors and Executives of State Enterprises and Public Organizations(Class 3), Public Director Institute Director Certification Program (DCP) (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
2011 - Present 2010 - 2011 2008 - 2010 2007 - 2008 2006 - 2008
Inspector General, Ministry of Finance Advisor, State Enterprise Policy Office, Ministry of Finance Deputy Director, State Enterprise Policy Office, Ministry of Finance Director, Bureau of Monetary Management, Treasury Department, Ministry of Finance Deputy Secretary General, National Telecom Commission
Directorship/Management Position in Other State Enterprise/ Company
• Director, TOT Public Company Limited • Director, Krungthai Asset Management PLC
Amount/Value of Shares in Other Companies*
None
Connected Transaction in 2013
*
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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
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Mrs. Amporn Nitisiri Age 62 Director
Education/Training
• • • •
M.A. (Political Science) ,Thammasat University B.A. (Social Science), Kasetsart University Leadership 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 16/2012), Thai Institute of Directors
Work Experience
2008 - 2011 2007 2006
Director - General, Department of Labor Protection and Welfare, Ministry of Labor Inspector - General, Office of Permanent Secretary, Ministry of Labor 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 2013
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
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Mr. Chuan Sirinantporn Age 60 Director
Education/Training
• • • •
• • • •
M.A. (Development Administration) (Hons), National Institute of Development Administration B.A (Political Science), Chulalongkorn University 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, National Defense College Certificate Course in Public Law, Thammasat University Senior Administrator Course, Institute of Administration Development Energy Literacy Leadership Program, Thailand Energy Academy
Work Experience
2012 - 2013 2011 - 2012 2010 - 2011 2007 - 2010
Director - General, Department of Provincial Administration Governor, Nakhon Ratchasima Province Governor, Phrae Province Governor, Ubon Ratchathani Province
Directorship/Management Position in Other State Enterprise/ Company
-
Amount/Value of Shares in Other Companies*
None
Connected Transaction in 2013
*
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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
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Mr. Yongyutt Chaipromprasith Age 48 Director
Education/Training
• • • •
M.B.A. (Business Administration), Southern New Hampshire University, U.S.A. B.A. (Economics), Chulalongkorn University Joint State - Private Sector Course (Class 24), National Defense College Psychological Operations for Management (Class 90), Institute of Security Psychology
Work Experience
2012 - Present 2012 - Present 2005 - Present
Director, Krungthai Bank (Plc.) Sub-Committee on Strategic Management, National Health Security Office 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 (Plc.) • Director, Krungthai Bank (Plc.)
Amount/Value of Shares in Other Companies*
None Connected Transaction in 2013
*
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
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Mr. Prachuab Ujjin Age 63 Director
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 2002 1999 1997
Deputy Director, Ratchaburi Electricity Generating Holding Public Company Limited (RATCH) Managing Director, Ratchaburi Electricity Generating Company Limited Manager, Ratchaburi Power Plant, EGAT Director, Efficiency Control Division, EGAT
Directorship/Management Position in Other State Enterprise/ Company
• • • •
Committee, RATCH O&M Company Limited Committee, Ratchaburi Power Company Limited Committee, Chubu Ratchaburi Electric Service Company Limited Committee, Tri-Energy Company Limited
Amount/Value of Shares in Other Companies*
None
Connected Transaction in 2013
*
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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
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Mr. Soonchai Kumnoonsate Age 57 EGAT Governor Director (Ex-officio) Education/Training
• • • •
• • • •
B.Eng. (Electrical Engineering), Chulalongkorn University EGAT Successor Development Program Excellence in Situation Management Psychological Operations for Management (Class 101), Institute of Security Psychology, National Defense Studies Institute Advanced Management Program, Harvard Business School, U.S.A. Public Administration and Law for Executives, King Prajadhipok’s Institute Director Accreditation Program (DAP), Thai Institute of Directors Energy Literacy Leadership Program (Class 2), Thailand Energy Academy
Work Experience
2013 - Present 2011 - 2013 2010 - 2011
EGAT Governor Deputy Governor - Power Plant Development, EGAT Assistant Governor - Fuel, EGAT
Directorship/Management Position in Other State Enterprise/ Company
• Chairman, EGAT International Company Limited • Director, Ratchaburi Electricity Generating Holding Public Company Limited
Amount/value of Shares in Other Companies*
None
Connected Transaction in 2013
*
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
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Board of Directors
(during January 1 – September 30, 2013)
Mr. Pornchai Rujiprapa Age 61 Chairman
Education/Training
• Ph.D. (Regional Economics), University of Pennsylvania, U.S.A. • M.Sc. (Regional Economics), University of Pennsylvania, U.S.A. • Master of Public Administration (Programming Planning Administration), National Institute of Development Administration • B.Sc. (Agro-Industry), Kasetsart University • National Defense Course (Class 41), National Defense College • Director Accreditation Program (DAP), Thai Institute of Directors
Work Experience
2012 - Present 2010 - 2012 2006 - 2010 2003 - 2006 1999 - 2003
Former Permanent Secretary, Ministry of Science and Technology Permanent Secretary, Ministry of Science and Technology Permanent Secretary, Ministry of Energy Deputy Permanent Secretary, Ministry of Energy Deputy Secretary General, National Economic and Social Development Board
Directorship/Management Position in Other State Enterprise/ Company
• Chairman, Electricity Generating Public Company Limited (EGCO)
• Chairman, National Innovation Board
Amount/Value of Shares in Other Companies*
None
Connected Transaction in 2013
*
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
- The term of office was completed on January 31, 2013.
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Mr. Sukit Charoenrattanakul Age 61 Director
Education/Training
• Certificate of Advanced Study (Political Science and Public Administration, Equivalent to Doctor Degree of 3 Cycle in France), Northern Illinois University, U.S.A. • M.A. (Political Science), Eastern Mexico University, U.S.A. • B.A. (Political Science), Chiang Mai University • Personnel Management Program, University of Essex. U.K. • Senior Administrator (Class 13), Department of Provincial Administration, Ministry of Interior • National Defense Course (Class 43), National Defense College
Work Experience
2012 - Present 2011 - 2012 2009 - 2011 2008 - 2009 2008 - 2008
Visiting Lecturer, College of Local Administration, Khon Kaen University Visiting Lecturer, Faculty of Political Sciences, Ramkhamhaeng University Director - General, Department of Provincial Administration Inspector General, Ministry of Interior, Acting Director General, Department of Provincial Administration Director - General, Department of Local Administration Deputy Permanent Secretary, Ministry of Interior
Directorship/Management Position in Other State Enterprise/ Company
• Director, Provincial Waterworks Authority of Thailand
Amount/Value of Shares in Other Companies*
None
Connected Transaction in 2013
*
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
- The term of office was completed on February 11, 2013.
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Mr. Prawit Sarakitprija Age 60 Director
Education/Training
• • • • • •
M.A. (Development Economics), Boston University, U.S.A. B.A. (Business Administration), Boston University, U.S.A. National Defense Course (Class 49), National Defense College Chief Information Officer Program (Class 19) Director Certification Program (DCP) (Class 75), Thai Institute of Directors Executive Development Program 1 (Class 39), Office of the Civil Service Commission
Work Experience
2008 - 2011 2006 - 2008 2003 - 2006
Advisor in Public Debt, Public Debt Management Office, Ministry of Finance Deputy Director - General, Public Debt Management Office, Ministry of Finance Director, Payment Administration and IT Bureau, Public Debt Management Office, Ministry of Finance
Directorship/Management Position in Other State Enterprise/ Company
• Committee, Zoological Park Organization of Thailand • Committee, Financial Institutions Development Fund (FIDF), Bank of Thailand
Amount/Value of Shares in Other Companies*
None
Connected Transaction in 2013
*
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
- The term of office was completed on October 1, 2013.
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Mr. Surachai Tansitpong Age 64 Director
Education/Training
• • • • • • •
M.P.A., National Institute of Development Administration B.B.A., Sukhothai Thammathirat Open University B.Eng. (Civil Engineering), Chulalongkorn University National Defense Course, National Defense College Senior Executive Program, Department of Provincial Administration Executive Program, Office of the Civil Service Commission Director Accreditation Program (DAP) (Class 73/2008), Thai Institute of Directors
Work Experience
2009 - Present 2008 - 2009 2006 - 2007 2002 - 2005
Chairman of the Executive Board, Siam Geotechnic Company Limited Permanent Secretary, Ministry of Transport Deputy Permanent Secretary, Ministry of Transport Director - General, Department of Rural Roads, Ministry of Transport
Directorship/Management Position in Other State Enterprise/ Company
• Chairman of the Executive Board, Siam Geotechnic Company Limited • Director, Dhanasidhi Company Limited
Amount/value of Share in Other Companies*
None
Connected Transaction in 2013
*
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
- The term of office was completed on January 31, 2013.
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Mr. Sutat Patmasiriwat Age 60 EGAT Governor Director (Ex-officio)
Education/Training
• B. Eng (Mechanical Engineering), Chulalongkorn University • Advanced Management Program, Harvard Business School, U.S.A. • Senior Executive Development Program, Foundation for International Human Resource Development • Creating Value through Product Management and Customer Profitability Program, Sasin Graduate Institute of Business Administration of Chulalongkorn University • Training Programs held by the Thai Institute of Directors Association (IOD) • Director Certification Program (DCP) • Role of the Chairman Program (RCP) Work Experience
2009 - 2013 EGAT Governor 2008 - 2009 Deputy Governor - Generation, EGAT 2007 - 2008 Assistant Governor - Administration, Generation Area, EGAT Directorship/Management Position in Other State Enterprise/ Company
• Chairman, EGAT International Company Limited (EGATi) • Director, Ratchaburi Electricity Generating Holding Public Company Limited (RATCH)
Amount/value of Share in Other Companies*
None
Connected Transactions in 2013
*
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.
- The term of office was completed on July 30, 2013.
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Executives Mr. Soonchai Kumnoonsate Age 57 EGAT Governor
Education/Training
• • • • • • • •
Bachelor of Engineering (Electrical Engineering), Chulalongkorn University EGAT Successor Development Program Excellence in Situation Management Psychological Operations for Management (Class 101), Institute of Security Psychology Advanced Management Program, Harvard Business School, U.S.A. Public Administration and Law for Executives, King Prajadhipok’s Institute Director Accreditation Program (DAP), Thai Institute of Directors Energy Literacy Leadership Program (Class 2), Thailand Energy Academy
Work Experience
July 31, 2013 October 1, 2011 January 6, 2010
EGAT Governor Deputy Governor - Power Plant Development Assistant Governor - Fuel
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Mr. Noppol Milinthanggoon Age 59 Senior Deputy Governor to the Governor
Education/Training
• • • • • • • • • • • •
Master of Engineering (Nuclear Technology), Chulalongkorn University Bachelor of Engineering, 2nd Class Honors (Electrical Engineering), Chulalongkorn University ASEAN Executive Management Program (Class 2) Energy Literacy Leadership Program (Class 1), Thailand Energy Academy Security Management for Executives (Class 2), National Defense College Executive Course (Class 9), Capital Market Academy Public Economic Management for Executives, King Prajadhipok’ s Institute Public Administration and Law for Executives, King Prajadhipok’s Institute Finance for Executive Decision Program, Continuing Education Center, Chulalongkorn University Director Certification Program, Thai Institute of Directors Senior Executive Development Program (Class 1), General Electric Company, U.S.A. Senior Executive Development Program (Class 2), Foundation for International Human Resource Development • ASEAN Executive Development Program, Thammasat Business School • Senior Command Course, Institute of Police Administration Development
Work Experience
July 1, 2013 Senior Deputy Governor to the Governor October 1, 2010 Engineer Level 14 to the Governor appointed as President of Ratchaburi Electricity Generating Holding Public Company Limited October 1, 2008 Engineer Level 13 to the Governor appointed as President of Ratchaburi Electricity Generating Holding Public Company Limited December 21, 2007 Assistant Governor - Thermal Power Plant Construction October 1, 2005 Executive Vice President - Power Plant Engineering
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Mr. Mongkol Sakulkao
Mr. Piboon Buacham
Age 60
Age 59
Deputy Governor - Policy and Planning
Deputy Governor - Administration
Education/Training
Education/Training
• Master of Engineering (Water Resources Engineering), Asian Institute of Technology • Bachelor of Engineering (Mechanical Engineering), Kasetsart University • Director Certification Program, Thai Institute of Directors • Thailand and ASEAN Economic Community (AEC), King Prajadhipok’s Institute • Senior Executive Program, Sasin Graduate Institute of Business Administration of Chulalongkorn University • 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 • ASEAN Executive Development Program, Thammasat Business School
• Master of Science in Applied Statistics (Hons.), National Institute of Development Administration • Bachelor of Engineering, (Electrical Engineering), Chulalongkorn University • Director Certification Program, Thai Institute of Directors • Public Administration and Law for Executive Course, King Prajadhipok’s Institute
Work Experience
October 1, 2012 October 1, 2008
Deputy Governor Administration Assistant Governor System Control
Work Experience
October 1, 2011 October 1, 2008
Deputy Governor - Policy and Planning Assistant Governor - Planning
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Mr. Poonsuk Tochanakarn
Mr. Prapas Vichakul
Age 59
Age 59
Deputy Governor - Account and Finance,
Deputy Governor - Corporate Social Affairs,
Serving as Chief Financial Officer (CFO)
Serving as EGAT Spokesman
Education/Training
• Bachelor of Accountancy, Chulalongkorn University • Director Certification Program, Thai Institute of Directors • Executive Finance Management Program, Economics and Finance Academy
Education/Training
Work Experience
October 1, 2012 October 1, 2011 January 6, 2010
Deputy Governor - Account and Finance, Serving as Chief Financial Officer (CFO) Assistant Governor - Account Assistant Governor - Internal Audit Bureau
• Master of Science (Geology), New Mexico Institute of Mining and Technology, U.S.A. • Bachelor of Science (Geology), Chulalongkorn University • Advanced Certificate Course in Sustainable Rural Development, 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, 2013 October 1, 2011 January 6, 2010
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Deputy Governor - Corporate Social Affairs, Serving as EGAT Spokesman Assistant Governor - Fuel Assistant Governor - Mae Moh Mine
Mr. Suthon Boonprasong
Mr. Somyos Theravongsakul
Age 56
Age 60
Deputy Governor - Transmission System
Deputy Governor - Generation
Education/Training
Education/Training
• Master of Business Administration, Chiang Mai University • Bachelor of Economics, Sukhothai Thammathirat Open University • Bachelor of Law, Ramkhamhaeng University • Bachelor of Engineering, (Electrical Engineering), Chulalongkorn University • Director Certification Program, Thai Institute of Directors • Advanced Management Program, Harvard Business School, U.S.A. • Public Economics for Executives, King Prajadhipok’s Institute • Senior 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
• Master of Public Administration, National Institute of Development Administration • Bachelor of Engineering, (Mechanical Engineering), Chulalongkorn University • Psychological Operations for Management, Institute of Security Psychology
Work Experience
October 1, 2013 January 6, 2010
Deputy Governor - Generation Assistant Governor Generation 2
Work Experience
October 1, 2013 October 1, 2010 January 6, 2010
Deputy Governor Transmission System Assistant Governor Transmission System Operation Assistant Governor Corporate Social Affairs and Environment
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Mr. Ratanachai Namwong
Mr. Rum Herabat
Age 57
Age 57
Deputy Governor - Power Plant Development
Deputy Governor - Fuel
Education/Training
• Master of Engineering (Nuclear Technology), Chulalongkorn University • Bachelor of Engineering, (Metallurgy), Chulalongkorn University • Advanced Certificate Course in Building Peaceful Society, King Prajadhipok’s Institute • Senior Executive Development Program (Class 2), Foundation for International Human Resource Development • Masterful Coaching Workshop, Hay Group
Education/Training
• Bachelor of Engineering, (Mechanical Engineering), Chulalongkorn University • Advanced Management Program, Harvard Business School, U.S.A. • Royal Thai Army War College Course
Work Experience
October 1, 2013 October 1, 2011
Work Experience
October 1, 2013
Deputy Governor - Power Plant Development October 1, 2010 Assistant Governor - Power Plant Engineering
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Deputy Governor - Fuel Assistant Governor Operation and Maintenance Business
Mr. Kornrasit Pakchotanon
Mr. Boonmarg Smitthileela
Age 55
Age 57
Deputy Governor - Business Development
Deputy Governor - Transmission System Development
Education/Training
Education/Training
• Bachelor of Engineering, (Mechanical Engineering), Chulalongkorn University • Senior Executive Program, Sasin Graduate Institute of Business Administration of Chulalongkorn University • Public Economics for the Executives, King Prajadhipok’s Institute • Advanced Certificate Course in Building Peaceful Society, King Prajadhipok’s Institute
• Bachelor of Engineering, (Electrical Engineering), Chulalongkorn University • Advanced Certificate Course in Building Peaceful Society, King Prajadhipok’s Institute
Work Experience
October 1, 2013 October 1, 2011
Work Experience
October 1, 2013 October 1, 2011
Deputy Governor - Business Development Assistant Governor Generation 3
Deputy Governor Transmission System Development Assistant Governor Transmission System Maintenance
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Executives Posted to EGAT Affiliates
Mr. Sahust Pratuknukul
Mr. Thana Putarungsi
Age 58
Age 58
Engineer Level 14 to the Governor
Senior Deputy Governor to the Governor
Appointed as President, Electricity Generating Public Company Limited
Appointed as Senior Executive Vice President and Acting President, EGAT International Company Limited
Education/Training
• Bachelor of Engineering, (Electrical Engineering), Chulalongkorn University • The Joint State - Private Course, National Defense College • Executive Course, Capital Market Academy • Energy Literacy Leadership Program, Thailand Energy Academy • Senior Executive Development Program (Class 1), General Electric Company, U.S.A. • Director Certification Program, Thai Institute of Directors • Finance for Executive Decision Program, 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, EGAT October 1, 2006 Assistant Governor - Policy, EGAT October 1, 2005 Assistant Chief Executive Officer - Planning, EGAT
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Education/Training
• Master of Engineering (Electrical Engineering), Kasetsart University • Bachelor of Engineering, (Electrical Engineering), Kasetsart University • Energy Literacy Leadership Program, Thailand Energy Academy • Politics and Governance in Democratic Systems for Executives, King Prajadhipok’s Institute • Executives in Business and Industrial Development and Investment, Institute of Business and Industrial Development • Director Certification Program, Thai Institute of Directors • Financial Statement 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
October 1, 2010 October 1, 2008
of Clean Energy Technology
Senior Deputy Governor to the Governor Appointed as Senior Executive Vice President and Acting President, EGAT International Company Limited Deputy Governor - Transmission System, EGAT Assistant Governor - Transmission System Operation, EGAT
MR. Pongdith Potchana
Mr. Paisan Katchasuwanmanee
Age 58
Age 58
Engineer Level 14 to the Governor
Engineer Level 14 to the Governor
Appointed as Chief Executive Officer, Ratchaburi Electricity Generating Holding Public Company Limited
Appointed as Executive Vice President – Development, EGAT International Company Limited
Education/Training
Education/Training
• Master of Engineering (Civil Engineering), Georgia Institute of Technology, U.S.A. • Bachelor of Engineering, (Civil Engineering), Chiang Mai University • Energy Literacy Leadership Program (Class 3), Thailand Energy Academy • Director Accreditation Program, Thai Institute of Directors • Public Administration and Law for Executives (Class 10), King Prajadhipok’s Institute • EGAT Senior Executive Program (ESEP) • EGAT Director Development Program (EDDP) • EGAT Newly-Promoted Executive Orientation Program (ENOP) • EGAT Preparation of Professional Leader Program, Australia
Work Experience
July
1, 2013
October 1, 2012 July
1, 2012
October 1, 2010
Engineer Level 14 to the Governor Appointed as Chief Executive Officer, Ratchaburi Electricity Generating Holding Public Company Limited Deputy Governor - Corporate Social Affairs, Serving as EGAT Spokesman, EGAT Assistant Governor Corporate Social Affairs, EGAT Assistant Governor Corporate Social Affairs and Environment, EGAT
• Bachelor of Engineering, (Electrical Engineering), Kesetsart 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 for the Executives, King Prajadhipok’s Institute • Senior Executive Program, Sasin Graduate Institute of Business Administration of Chulalongkorn University • Psychological Operations for Management, Institute of Security Psychology • 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 Vice President Development, EGAT International Company Limited September 1, 2012 Engineer Level 13 to the Deputy Governor - Business Development Appointed as Vice President Development, EGAT International Company Limited October 1, 2011 Assistant Governor - Business Administration, EGAT January 6, 2010 Assistant Governor - Power Plant Maintenance, EGAT
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Executives Retired on October 1, 2013
Mr. Surasak Supavititpatanana
Mr. Viwat Saeneemanomai
Deputy Governor - Generation
Deputy Governor - Transmission System Development
(January 6, 2010 - September 30, 2013)
(October 1, 2011 - September 30, 2013)
Mr. Thanakorn Poolthavee
Mr. Somboon Arayaskul
Deputy Governor - Fuel
Engineer Level 14 to the Governor
(January 6, 2010 - September 30, 2013)
Senior Executive Vice President and Acting President, EGAT International Company Limited
(October 1, 2011 - September 30, 2013)
Mr. Pithsanu Tongveerakul Deputy Governor - Business Development
(October 1, 2011 - September 30, 2013)
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Corporate Governance EGAT commits to continuously improving the efficiency, integrity, and transparency of its operation and business practices in order to create sustainable values as well as enhancing corporate image and stakeholders’ confidence and trust. EGAT has also improved its corporate governance system and practices to meet the international best practices. EGAT’s corporate governance is based on 6 pillars of good corporate governance consisting of rules of law, moral integrity, transparency, participation, responsibility and accountability, and effectiveness and efficiency. In 2013 EGAT won several awards which reflected its good corporate governance. Major awards are as follows: • Outstanding State-Owned Enterprise (SOE) Award 2013 in the category of Corporate Social Responsibility (CSR) to the Ban Klong Rua Micro-Hydropower Project and an honorary SOE award in the category of innovation for Voice Communication Control System (VCCS) • National Moral Award 2013 to Ubol Ratana Dam for its CSR activities in accordance with EGAT Good Governance (The award was given in the 6th National Moral Marketplace and Assembly organized by the Moral Promotion Center (Public Organization) and other organizations in the network during July 25-26, 2013.) • Four prizes in the ASEAN Energy Awards 2013 consisting of - The first runner-up in the category of Community-Based Off-Grid to the Ban Klong Rua Micro-Hydropower Project of the Corporate Communications Division in cooperation with the Faculty of Social Administration, Thammasat University - The first runner-up in the category of Best Practices – Clean Coal Use and Technology in Power Generation to Mae Moh Power Plant - The first runner-up in the category of Best Practices in Surface Coal Mining to Mae Moh Mine
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•
•
•
•
•
- “Excellence in Energy Management Award” given to Mr. Sutat Patmasiriwat, the then EGAT Governor, in the capacity of Power HAPUA Chairman and EGAT Governor of Thailand, on September 25, 2013 “Outstanding Renewable Energy Award” to the Ban Klong Rua MicroHydropower Project and “Power Conservation Promotion Award” given to EGAT website in the category of website media in the “2013 Thailand Energy Award” contest CSR-DIW Continuous Award 2013 given by the Ministry of Industry to 20 units of EGAT on September 11, 2013 Honorary plaque given by the Ministry of Social Development and Human Security to EGAT as the organization having contributed to society and youth in creating the awareness on value of energy and environmental sustainability on October 3, 2013 “Safety Award” given to 29 units of EGAT during the “27th National Safety Week” organized under the theme of “Economic Progress with Safety in Work and People’s Health” on July 3, 2013 “Zero Accident Campaign Award” given to the line of Deputy Governor Generation by the Ministry of Labor on September 2, 2013
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• Five-star honorary award in “Vocational Studies – Bilateral System toward Excellence” given to EGAT and Mae Moh College of Technology and Management on August 19, 2013 as model organizations which give support to theoretical and practical learning and provide education opportunity to the community • Award of industrial enterprise complying with the good governance in the environment given by Ministry of Industry to EGAT’s Bang Pakong Power Plant on June 13, 2013 EGAT has developed its corporate governance policy in accordance with the good governance of the State Enterprise Policy Office (SEPO) of 2009 to be observed by the executives and the employees. Principal achievements are as follows: Responsibility of the Board of Directors
The Board of Directors has a key role in monitoring the operation, making decision, and planning EGAT’s policy and strategy. Committees are appointed by the Board of Directors to deliberate and monitor the operation and functioning of the 5 key systems as well as approving plans for all systems which include risk management, internal control, internal audit, information technology management, and human resources management systems. Moreover, regular financial and non-financial reports are prepared monthly or quarterly as necessary. The monitoring of the operation system is carried out mostly through the meeting of the Board of Directors which is scheduled at least one month in advance. The Board of Directors has made various observations and suggestions regularly. Other monitoring channels are visits to EGAT operation, participation in EGAT activities, and requests for additional information or relevant persons to give further information in the meeting. The Enterprise Risk Management Committee is responsible for reviewing key risk management factors and adding new risk factors on the damage of the transmission system from the accidents as well as deterioration and risk in connection with the lignite and nuclear power plant development projects due to the insufficient understanding of the public. In complying with the laws, rules, and regulations, apart from observing the legal provisions, rules and regulations, and government policy, EGAT has given importance to the adoption of the Enterprise Risk Management (ERM) framework of the Committee of Sponsoring Organization Enterprise Risk Management (COSO) as a tool to achieve EGAT’s strategic goals and objectives. The integration of good corporate governance, enterprise risk management, and compliance practices cultivates risk management as the key part of the corporate culture and enhance EGAT’s sustainable value.
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For the internal audit, EGAT’s Internal Audit Unit is responsible for preparing an effective internal control system which covers all aspects including finance, operation, compliance practices, follow–up, and evaluation to ensure that all operations are according to the plan. The Audit Committee is responsible for monitoring the internal audit system of EGAT and the affiliates, following-up the revision and improvement according to the recommendations continuously and quarterly. In the area of the information technology system, the Executive Committee has been delegated by the Board of Directors to oversee EGAT’s IT system management and development, as well as reviewing EGAT information technology and communication master plan before submission for the consideration of the Board. The EGAT Information Technology Committee (EITC) has gathered and prepared reports on the performance of EGAT with respect to information technology management as well as the EGAT information technology and communication (ICT) master plan for submission for approval of the Executive Committee and the Board of Directors. The approved ICT master plan is also submitted to the Ministry of Energy and the Ministry of Information Technology and Communication for acknowledgement. With respect to the human resources management system, the Human Resources Committee is appointed to oversee and advise in the human resources policy and review the human resource master plan for submission to the Board of Directors as well as performing other tasks related to human resources. The Policy and Development Consideration Committee of EGAT chaired by EGAT Deputy Governor - Administration is entrusted to prepare the EGAT human resource master plan. The Corporate Governance Committee is responsible for overseeing the work regarding corporate governance, corporate social responsibility, and code of ethics and conduct; giving advice on the policy; approving the plans; and promoting the involvement of the committees, executives, and EGAT personnel in good corporate governance and corporate social responsibility. The report is submitted to the Board of Directors every six months.
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Treatment to 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 delivered values and communication channels as follows: Stakeholders a) Regulatory bodies comprising - Ministry of Energy
- Ministry of Finance - Energy Regulatory Commission
Need and Expectation
Delivered Values
• Power purchase from neighboring countries • Expansion of the transmission system • Improving the efficiency of the power plants to reduce heat rate • Promoting the research and development in renewable energy and clean energy • Promoting Thailand to be the regional commercial hub for power • Expanding operation of related businesses • Becoming a world-class oraganization in electricity business • National grid development • Completing PDP 2013
• Provision of sufficient power for the demand • Security of the power system • Reasonable price of electricity • Availability of the technology demonstration on renewable energy and clean energy
• Meeting, seminar • Activities as required by the government policy and government organizations • Formal and informal meeting • Annual report, website
• Submission of income to the government • Improving management quality
• Meeting, seminar • Report • Annual report, website
• Provision of sufficient power for the demand • Smart Grid Roadmap • Focusing on CSR in process • Using power efficiently • Power conservation • Volunteer projects
• Meeting and seminar with MEA and PEA
• Safety • Participation of EGAT and the community in developing the systematic community relations which strengthens the economics of the community • Provision of local employment
• • • • •
b) Society as a whole
• Responsibility for the impact from the operation • Supporting to minimize greenhouse effect • Participation in different social activities
c) Communities in the vicinity of the power plants and transmission lines
• Controlling and minimizing the pollution from the operation such as noise, dust, magnetic field, electromagnetic field, etc. to the limit in the standard on safety • Availability of measure in the case of accident • Availability of two-way communication channel to learn about EGAT activities and to comment and complain problems • Developing quality of life • Employment • Support in different activities such as contribution to temples
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Communication Channel
• EGAT website www.egat.co.th • EGAT Call Center 1416 • EGAT Information Center (prinfo. egat.co.th) • Public Relations of each operation unit and each power plant Billboard showing SOx and NOx Annual emergency rehearsal Meeting of coordination committees on society, community, and environment EGAT public relation unit Events organized by EGAT executives together with the communities in the vicinity of the power plants • Invitation to representatives of the community to visit the power plants and projects of EGAT • EGAT website • Organization of social and environmental projects such as Biological Way of Life, Wan Kaew, mobile medical units, etc
Stakeholders
Need and Expectation
Delivered Values
Communication Channel
d) EGAT Employees
• • • •
Acceptance and involvement Progress in profession Security in life Pride in working as EGAT employees
• Guideline in building employee relationship with the organization in accordance with their need and expectation as well as the care of the organization to employees
• Meeting, teleconference • Weekly newsletter • Bi-monthly newsletter • Poster • Intercom • EGAT TV via intranet and email • Meeting with the executives • Seminar • Annual QC
e) Private sector
• • • • •
Sufficient power Security and safety Reasonable price Less environmental impact Transparency
• Being good organization of the society • Promotion of Demand Side Management (DSM) • Greenhouse gas reduction
• EGAT newsletter, newspaper, radio, television • Survey • Call center • Seminar, meeting, letters, website, email, visit
In enhancing corporate governance practices for the best interest of all stakeholders, the Information Management Committee is appointed to be responsible for EGAT’s information service for all operational lines and units. Moreover, various communication channels for comments and complaints are provided for stakeholders. These received comments and complaints are transferred to the EGAT’s Opinion Handling Center for further action. In 2013, EGAT implemented the Good Corporate Governance Master Plan (20122016) to enhance EGAT as an organization with good corporate governance which could satisfy the demand of all stakeholders. The Good Corporate Governance Master Plan has been incorporated with the EGAT strategic plan to cover all lines of command which are required to be responsible for the activities in the action plan with the clearly specified indicators. Moreover, the Committee on EGAT’s Ethical Conduct, Value, and Culture was appointed to study, analyze, and review practices on corporate governance in accordance with the Good Corporate Governance Master Plan as well as promoting EGAT’s value and culture in compliance with EGAT’s vision, policy, and strategy, providing the good corporate governance information to the public, and evaluating and reporting the progress of the work to the Executive Committee and the Corporate Governance Committee quarterly.
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In the activities concerning social and environment, EGAT has constantly given priority to its accountability to society and environment which has been an integral part of its mission. Its social objective has been set in the corporate strategic map as “a caring organization for society and environment” within the strategic driving framework of “accountability to the society, community, and environment with honesty, fairness, and sincerity” reflecting the systematic integration of EGAT’s social responsibility and operation. Moreover, in the activities to enhance employees’ volunteering spirit in supporting the social responsibility, it has been found that a number of employees have long dedicated themselves to social service and charity causes. The information about these volunteers was gathered by EGAT to make a database for further use. 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 the information. Various campaigns have been made to create awareness among Board of Directors, executives, and employees in 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 shown in the 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 founded on the principle that employees at all levels perform their duties to maximize EGAT’s benefits without personal interest.
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Ethics and Code of Conduct
In EGAT Regulation No. 346 on Corporate Governance, Code of Conduct was issued to provide transparency, moral, and accountability to the society and environment to the operation of EGAT. The Board of Directors, executives, and employees are required to discharge their respective duties in compliance with the ethics and code of conduct issued by the Board of Directors in the Regulation No. 347 regarding Ethics and Code of Conduct to be observed by the Board of Directors, executives, and employees. The standard for ethics 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 operation of the employees and recommendations to solve the related problems has also been in use. Regarding the core value which is a basis for a strong corporate culture, importance has been given by the executives of EGAT to the implementation of regulation. In 2013, revision on the core value was undertaken, and it was found that the present core value still complied, supported, and correlated with the vision, strategic frame, and core culture of EGAT. Its core value “Firm-C” represents Fairness, Integrity, Responsibility and Accountability, Mutual Respect, and Commitment. All these values support the executives and the employees to work together in the same direction with individual uniqueness, mutual trust, and the sense of belonging as a team. Being an essential element for an organization with strong corporate culture, “Firm-C” is an indispensible factor in enhancing an efficient and good person.
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Conflicts of Interest
EGAT Board of Directors has established a preventive measure against the abusive self-dealing of the Board members. Every member has to report on the other positions they are holding including committee member and management position in other state enterprise or company as well as connected transactions (in the fiscal year 2013), amount/value of shares in other companies in the same industry or business in which EGAT operates, and the amount of the shares held which 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 Regulation on Board Committees which is a measure in checking the qualification of committee members. 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 for observation of Deputy Governors or the equivalent and above. The matter of conflict of interest is 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 must report on this matter as soon as a conflict of interest is found. Moreover, the Handbook on Good Corporate Governance also contains the 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. 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: • EGAT is the only state enterprise that has become a member of the National Moral Center, which has a purpose of organizing activities to increase the awareness of the Thai people in moral and ethics. EGAT has been participating in the activities of the Moral Promotion Center such as participation in the 6th National Moral Marketplace and Assembly. EGAT Governor signed the “2nd Charter to Mobilize Moral and Honesty 2013” with the other 32 organizations to declare that all members observe the charter to mobilize the country to become society of honesty. • Communication and awareness campaigns such as the website on good corporate governance, news, and articles on the intranet of EGAT
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• Information on good corporate governance on the first page of EGAT website (www.egat.co.th) as another channel easily accessible by the public • Handbook on Good Corporate Governance to serve as guideline for employees • Lectures on good governance by persons who are skillful and possess knowledge and experience in good governance for executives and the Board of Directors as well as lectures on implementation of the Good Corporate Governance master plan (2012-2016) • The activity on “EGAT - the Clean Organization”, organized in July 2013 in corporation with the National Anti-Corruption Commission
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Official Information Act Compliance Report The right to know and get access to government agency information is stated in Section 58 of the Constitution of the Kingdom of Thailand, B.E. 2550 (2007) as follows: “A person shall have the right to know and have access to public data or information in possession of a Government agency, a State agency, a State enterprise, or a local government organization unless the disclosure of such data or information shall affect the security of the State, public safety, or interest of other persons which should be protected to be personal data as provided by the law.” The Official Information Act, B.E. 2540 (1997) was enacted on the principle that under the democratic system, it is necessary for the people to have a wide opportunity to know about the information regarding the operation of the State agencies. According to the Official Information Act, people have the right to know and have access to public data or information in possession of a Government agency, a State agency, a State enterprise, or a local government organization. According to Section 58 of the Constitution of the Kingdom of Thailand, B.E. 2550 (2007), people shall have the right to express opinion and to use political right correctly. This strengthens democratic system and promotes the efficient and transparent state administration for the benefits of the people. In compliance with the Official Information Act, B.E. 2540 (1997), EGAT has appointed the Committee on Information Management to be responsible for determining policies, rules or criteria, and procedures regarding information management, permission, and information services, with the endorsement of EGAT Deputy Governor - Corporate Social Responsibility. EGAT Information Center is responsible for information service in accordance with the policy in information management which focuses on the intention of EGAT to provide information service in a fair, equitable, and transparent manner in compliance with the Official Information Act B.E. 2540 (1997) and other relevant laws. In information disclosure and information service, EGAT has specified scope and procedures under clear instruction 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, audiotext, fax on demand, and assistance by EGAT staff. Moreover, interested persons can visit the EGAT Information Center at EGAT Head 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 on EGAT website: www.egat. co.th which is accessible on 24-hour basis such as corporate profile, power plants and transmission systems, power generation and sales, power development projects, etc. Inquiry and complaint menu is also available on EGAT website for EGAT employees and interested people.
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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. The service has provided a one-stop center for the people countrywide to contact EGAT speedily around the clock. EGAT Call Center 1416 has been in full operation since 2012. Activities of EGAT Information Center in 2013
In 2013, EGAT Information Center provided 8,653 times of information service through its Call Center 1416. Types of information included the following: • EGAT operations • CSR activities • Job recruitment, internship training opportunities • Request to visit • Contact of EGAT staff and offices • The areas of the transmission lines • Emergency situation and complaints Moreover, EGAT Information Center also provided information and answer to inquiries via EGAT website and to the visitors.
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EGAT Information Management Committee
The Committee on EGAT Information Management is responsible for establishing policies, measures, and rules on public information management concerning the request and permission to disclose information and information service as well as considering complaints or objection according to the Official Information Act, B.E. 2540 (1997). In 2013, major considerations by the committee included the following: • Approval for a request by the Office of the Energy Regulatory Commission for a copy of Power Purchase Agreement between EGAT and Gulf JP UT Co., Ltd. By the letter Ref. EGAT 981400/23017 dated April 2, 2013, the Office of the Energy Regulatory Commission was informed that as the disclosure of the Agreement had to comply with the conditions in the Agreement, the Office of the Energy Regulatory Commission was requested not to disclose such information to prevent any harmful effect to the parties. However, if it was necessary for the Energy Regulatory Commission to disclose any information, agreement had to be made between the Energy Regulatory Commission and such person to keep the information confidential with limited purpose as mentioned in the letter Ref. 5502/1651 dated March 18, 2013. • Approval for the request of the Bang Kruai Police Station as mentioned in the letter Ref. TCH 0016.48 (S) /4961 dated December 3, 2012 for a copy of the document for the investigation purpose. EGAT sent the letter Ref. EGAT 981400/3272 dated January 14, 2013 to the Chief of Bang Kruai Police Station enclosing 3 documents for investigation purpose namely, - letter of Energy Absolute Public Co., Ltd. No. 5507/08 dated December 3, 2012 - letter of permission to rent and to use space (additional) - letter of permission to rent and to use space • Approval for the request of the Bang Kruai Police Station as mentioned in the letter Ref. TCH 00160.48 (S) /2178 dated June 10, 2013 for the original of the document for the investigation purpose. EGAT sent the letter Ref. EGAT 981400/42691 dated July 11, 2013 to the Bang Kruai Police Station enclosing 2 documents for investigation purpose namely, - original of the letter of Energy Absolute Public Co., Ltd. No. 5507/08 dated July 9, 2012 - letter of permission to rent and to use space and additional letter received by EGAT from the company Public Complaint Process
To enhance the efficiency of the EGAT public complaint process, in 2013 the comments and complaint process previously developed for use only on the intranet was installed on the internet (EGAT website) to provide opportunity to 8 groups of stakeholders comprising state sectors and regulatory bodies, financial institutions, EGAT employees,
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trade partners and business allies, main customers and end-users, academics and NGOs, communities around the power plants and along transmission lines, and mass media. Complaints, appeals, and enquiries received are recorded and directed to various channels including public complaint process on EGAT website, EGAT–VOC, EGAT Call Center 1416, Government telephone hotline 1111, and letter of complaints. In dealing with these comments and complaints, EGAT has established a process of investigation and management of the stakeholders’ expectation with equal and fair treatment together with the review of complaints to prevent the same occurrence in the future. Moreover, personal information of the persons making complaints is regarded confidential. During 2013, EGAT’s Opinion Handling Center received the following 760 public complaints and opinions from all groups of stakeholders through the above mentioned channels: - through the Government’s Complaint Handling System 1111 (4 items) EGAT investigated the complaints and reported to the Office of the Prime Minister in reasonable time. - through the EGAT - VOC (8 items) Comments and complaints received from the following customers through EGAT– VOC enabled EGAT to be aware quickly of the problems occurring to the power system of EGAT which affected the customers’ operation and of the problems at the delivery points so that they could be addressed promptly: - 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 - through EGAT’s Opinions Handling Center (748 items) In 2013, complaints on EGAT’s operation mostly involved the impact from the construction of high voltage transmission system. Among these, 629 complaints were the appeal regarding the land outside the power grid network. EGAT made an investigation on the matter and submitted for approval of the Committee to remedy those who were affected by the construction with compensation payment as well as informing those who had made complaints on the results and the action taken.
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Power Development and Future Plan The current official Thailand Power Development Plan (PDP) is PDP 2010 : 3rd Revision (2012-2030) endorsed by the Cabinet on June 19, 2012. Consequently on March 19, 2013, the Cabinet endorsed the 2011-2030 Action Plan for the 20-Year Energy Efficiency Development Plan (EEDP) as approved by the National Energy Policy Council (NEPC) on February 8, 2013. Furthermore, the Cabinet also endorsed on August 13, 2013 the new Alternative Energy Development Plan (AEDP) 2012-2021 which was approved by NEPC on July 16, 2013. The mentioned action plan of EEDP and the new AEDP are to be used in the revision of PDP which is under the responsibility of the Energy Policy and Planning Office. EGAT’s Power Projects
During 2014-2019, EGAT’s new power projects with a total capacity of 4,457.9 MW are as follows:
Project Location Fuel Contractual Scheduled (Province) Capacity Commercial (MW) Operational Date (SCOD)
1. Wang Noi Combined Cycle Block 4 2. Chana Combined Cycle Block 2 3. North Bangkok Combined Cycle Block 2 4. Mae Moh (Replacement of Units 4-7) 5. Krabi Coal Power Project (Clean Coal Technology) 6. Renewable Energy Power Projects
Ayutthaya
Natural Gas
768.7
Apr. 2014
Songkhla
Natural Gas
782.2
Apr. 2014
Nonthaburi
Natural Gas
848.3
Jan. 2016
Lampang
Lignite
540.0
Jan. 2018
Krabi
Coal
800.0
Jun. 2019
Wind, solar, hydro 718.7
2014-2019
-
Total
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4,457.9
Power Purchase Projects
Independent Power Producers (IPP) Projects The following 6 projects during 2014 - 2024 of a total power supply of 9,670 MW consisting of the power projects under construction and the power purchase projects in the 2012 bidding were acknowledged by the National Energy Policy Council (NEPC) on July 16, 2013, and the proposal of the Energy Regulatory Commission (ERC) was endorsed by the Minister of Energy on November 13, 2013. Project Location Fuel Contractual Scheduled (Province) Capacity Commercial (MW) Operational Date (SCOD) 1. Gulf JP NS Co.,Ltd. Saraburi Natural Gas 1,600 Blocks 1-2 2. Gulf JP UT Co.,Ltd. Ayutthaya Natural Gas 1,600 Blocks 1-2 3. Electricity Generating Plc. Nakhon Si Natural Gas 930 Thammarat 4. National Power Supply Chachoengsao Coal 540 Co., Ltd. Unit 1-4 5. Chonburi Power Chon Buri Natural Gas 2,500 Generation Co.,Ltd. 6. Siam Eastern Power Rayong Natural Gas 2,500 Co.,Ltd. Total
Jun./Dec. 2014 Jun./Dec. 2015 Jul. 2016 Nov. 2016/ Mar. 2017 Mar./Oct. 2021 Mar./Oct. 2022 Mar./Oct. 2023 Mar./Oct. 2024
9,670
Small Power Producer (SPP) Projects The PDP 2010 : 3rd Revision includes 5,258.1 MW of power supply to be purchased from small power producers (SPPs) during 2014-2019 consisting of 3,600 MW power from firm energy contract SPPs using cogeneration system and 1,658.1 MW from SPPs using renewable energy.
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Power Import from Neighboring Countries Currently, EGAT imports electricity under 6 projects with a total capacity of 2,404.6 MW. According to the PDP 2010 : 3rd Revision, during 2014-2019, additional power supply of 3,316 MW will be purchased from neighboring countries. Project Fuel Contractual Scheduled Capacity Commercial (MW) Operational Date (SCOD)
1. Hong Sa Lignite Units 1-3 Lignite 1,473 2. Xe-Pian Xe-Namnoy Hydro 354 3. Nam Ngiep 1 Hydro 269 4. Xayaburi Hydro 1,220 Total
Jun./Nov. 2015 Mar. 2016 Feb. 2019 Jul. 2019 Oct. 2019
3,316
Power Project Development
To cope with the increasing power demand in the future according to the economic and industrial growth and also to ensure the stability and reliability of the system according to the PDP 2010 : 3rd Revision (2012-2030), the following new power projects have been developed: 1. Expansion of Existing Power Plants
1.1 Chana Combined Cycle Power Plant Project Block 2
The power plant of a total capacity of 800 MW using natural gas as fuel which is located in the area of the existing Chana Power Plant, Chana District, Songkhla Province has been constructed to ensure the stability and reliability of the power system in the Southern region. The construction started in December 2011 and is expected to be completed in September 2014. The progress of this project in 2013 was 96.20 percent. The first synchronization GT21 was carried out on December 31, 2013.
Chana Combined Cycle Power Plant Block 2
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1.2 Wang Noi Combined Cycle Power Plant Project Block 4 The power project of 800 MW capacity using natural gas as fuel which is located in the area of the existing Wang Noi Power Plant, Wang Noi District, Ayutthaya Province is intended to serve the future power demand and to ensure the stability of the power system in the Central area. The construction started in December 2011 and is expected to supply electricity commercially in June 2014. The progress of this project in 2013 was 97.46 percent. The first synchronization of the steam turbine generator was tested on December 28, 2013.
Wang Noi Combined Cycle Power Plant Block 4
1.3 North Bangkok Combined Cycle Power Plant Project Block 2
The power project of a capacity of 848.3 MW is located in the area of the existing North Bangkok Power Plant in Bang Kruai Sub-district, Bang Kruai District, Nonthaburi Province to serve the increasing power demand in Bangkok Metropolitan Area and to ensure the stability of the power system in the Central region and the country as a whole. This power station uses a mixture of natural gas from the source in the western coast of Myanmar and the eastern coast of the Gulf of Thailand. The construction of the plant started in February 2013 and is expected to supply electricity to the system on commercial basis in January 2016. The progress of this project in 2013 was 49.20 percent.
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North Bangkok Combined Cycle Power Plant Block 2
2. Renewable Energy Power Plant Development EGAT has implemented the Renewable Energy Power Plant Development Project in response to the strategy in renewable energy development (2008-2013) of the Ministry of Energy and the condition in the renewable portfolio standard (RPS) requiring that 5 percent of renewable energy power plant development would be conducted. In 2013, major renewable energy power plants were as follows: Projects Location Capacity Scheduled (Province) (MW) Commercial Operational Date (SCOD) Khun Dan Prakanchol Dam Nakhon Nayok Mae Klong Dam Kanchanaburi Pasak Jolasid Dam Lop Buri Kwae Noi Bamrungdan Dam Phitsanulok Thap Sakae Solar Prachuap Khiri Khan Power Project
1x10 = 10
June 2013
2x6 = 12
July 2013
1x6.7 = 6.7
March 2014
2x15 = 30
June 2015
1x5 = 5
December 2014
Khun Dan Prakanchol Dam Project
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3. Projects in the Initial Stage of Development
3.1 Clean Coal Technology Power Project
The first clean coal technology power plant project is the extension project of Krabi Power Plant which is located in Khlong Kanan Sub-district, Nuea Khlong District, Krabi Province. With the total capacity of 800 MW using imported coal as fuel, it is expected to supply electricity on commercial basis by 2019. In 2013, the Environmental Health Impact Assessment (EHIA) of the power plant expansion project and the Environment Impact Assessment (EIA) of loading pier construction project were conducted. They are expected to be completed in 2014 so as to be able to supply electricity on commercial basis in 2019.
3.2 Replacement of Mae Moh Power Plant Units 4-7
During 2009-2010, EGAT had a policy to increase the efficiency in power generation while decreasing the production cost. The result of a feasibility study revealed that it was appropriate to construct a new lignite power plant of a total capacity of 600 MW to replace the existing Units 4-7 of Mae Moh Power Plant which had been in operation for 25 years. It is expected that the new units will be able to supply power on commercial basis in January 2018. In 2013, the Environmental Health Impact Assessment Report (EHIA) was completed and submitted to the Office of Natural Resources and Environmental Policy and Planning for consideration by the Expert Committee prior to seeking approval from the National Environment Board.
3.3 Nuclear Power Plant
According to the Power Development Plan (PDP) 2010 : 3rd Revision (2012-2030), the Cabinet endorsed the resolution of the National Energy Policy Committee (NEPC) to postpone the development of Nuclear Power Plant from the original schedule to 2023. In 2013, however, EGAT continued with the preparation for the project which included staff training, locally and abroad, legislative framework, regulatory framework, stakeholder involvement, and dissemination of knowledge on nuclear power. A curriculum on “Electricity in Daily Life” for primary and secondary schools has been prepared by EGAT with the cooperation of the Office of the Non-Formal and Informal Education. Moreover, a text book on “Alternative Energy Utilization” for the secondary school has also been prepared by EGAT together with the Institute for the Promotion of Teaching Science and Technology (IPST).
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Transmission System Development and Expansion Projects
EGAT carries out its mission in transmission system planning and development to ensure the stability and reliability of the power system to cope with the growing electricity demand of the country while maintaining the efficiency of the interconnection system to accommodate the power in the country and neighboring countries. Particular attention is given to the risky and significant delivery points to prevent the possibility of blackout in wide area in the future. Moreover, the transmission system development projects have been well prepared for the interconnection system for the upcoming ASEAN Economic Community (AEC) and Smart Grid System. Major on-going transmission system development and expansion projects and the projects in an approval process are as follows: On-going Transmission System Projects
1. Bulk Power Supply for the Greater Bangkok Area Phase 2 Project (BSB2)
Being a successive project of the BSB1, BSB2 has an investment cost of 9,170 million Baht. The project comprises the construction of new transmission lines and the upgrade of existing lines totaling 89.025 circuit-kilometers, installation of transformers totaling 9,600 MVA, and voltage control equipment totaling 384.0 MVAr. In 2013, the progress of the project as of November 2013 was 84.89 percent. This project was scheduled to be completed in 2016.
2. Transmission System Expansion Project No.11 (TS.11)
Being a successive scheme of the TS.10, TS.11 covers the transmission system expansion and reinforcement projects in all provincial areas countrywide to strengthen system reliability and support the expansion plan of the new delivery points of the Provincial Electricity Authority (PEA) to assure the power sufficiency and power quality to the end-users. The TS.11 project consists of the construction of transmission lines totaling a distance of approximately 1,922.7 circuit-kilometers, 12 new substations, the installation of transformers of 14,575 MVA, and voltage control equipment of 1,741.2 MVAr. The project has an investment cost of 23,000 million Baht. As of November 2013, the overall project achieved 83.82 percent progress. It was scheduled to be completed in December 2015.
3. Transmission System Development Project for Power Purchase from IPPs
This transmission system project serves electric power purchase from four awarded IPPs’ power plants, totaling approximately 4,400 MW installed capacity. The investment cost of the project is 7,985 million Baht. The progress of each transmission system sub-project is as follows: 3.1 The transmission system for the Gheco-One Power Plant was completed and connected to the grid system since February 11, 2013 3.2 The transmission system for the National Power Supply Co., Ltd. is currently pending due to the power plant rescheduling.
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3.3 The progress of the transmission system for the Gulf JP UT Co., Ltd. was 29.67 percent. It was scheduled to be completed in September 2014. 3.4 The progress of transmission system for the Gulf JP NS Co. Ltd. was 79.56 percent. It was scheduled to be completed in September 2014.
4. Transmission System Development for Power Purchase from Theun Hinboun Hydroelectric Power Plant Expansion Project
The project includes the construction of the 230 kV Nakhon Phanom 2 Substation and relevant transmission lines with a total distance of approximately 108 circuitkilometers. This transmission system project is to receive more electric power of 220 MW (additional to the former 220 MW) from the Expansion Project of Theun Hinboun Expansion Hydroelectric Power Plant situated in Lao PDR. An investment cost for this project is 665 million Baht. The project has been completed since December 1, 2012. As of November 2013, the progress of the remaining transmission system construction work was 98.61 percent. The whole project was scheduled to be completed in July 2014. 5. Transmission System Development for Power Purchase from Hongsa LigniteFired Thermal Power Plant Project
This project is to accommodate the power purchase from Hongsa Lignite-Fired Thermal Power Plant Project in Lao PDR, the country’s first lignite-fired power plant of the capacity of 3 × 626 MW, which will supply 1,473 MW of power to Thailand. This transmission system project consists of the construction of new 500 kV transmission lines from Thai/Lao border (Nan Province) to 500/230/115 kV Nan Substation to be connected with 500 kV transmission line to the main system in Mae Moh 3 Substation, renovation of related transmission lines with a total length of approximately 1,192 circuit-kilometers, a new substation, and the installation of transformers of 1,150 MVA. The investment cost of this project is 21,160 million Baht. As of November 2013, the progress of project was 27.27 percent. The project is scheduled to be completed in December 2014. 6. Transmission System Development for Power Purchase from Nam Ngum 3 and Nam Theun 1 Hydropower Plant Project
This transmission system project is to accommodate the power purchase from Nam Ngum 3 and Nam Theun 1 and/or other potential projects in Lao PDR, such as Nam Ngiep 1 Hydropower Project and Xayaburi Hydropower Project. The project consists of the construction of new 500 kV transmission lines Nam Phong 2 – Chaiyaphum 2 - Tha Tako connected with the existing Ban Na Bong (Lao PDR) – Udon Thani 3 – Nam Phong 2 lines (currently operating at 230 kV) to be the 500 kV Ban Na Bong – Udon Thani 3 – Chaiyaphum 2 – Tha Tako line, the construction of the 230 kV Chaiyaphum 2 – Chaiyaphum line, with a total length of approximately 728 circuit-kilometers, a new substation, and the installation of transformers of 4,000 MVA. The investment cost of this project is 17,550 million Baht. As of November 2013, the progress of the project was 0.06 percent. The project was scheduled to be completed by March 2016 – February 2017.
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7. Transmission System Development in the Area of Loei, Nong Bua Lam Phu, and Khon Kaen Provinces for Power Purchase from Lao PDR Project
This transmission system project is to receive imported electric power from the Xayaburi Hydroelectric Power Plant Project in Lao PDR which will supply power of 1,220 MW to Thailand. It is scheduled that all units will supply power commercially within October 2019. The project involves the construction of 500 kV double-circuit transmission lines from Thai/Lao border in Loei Province to the new Tha Li Substation (distance of approximately 5 kilometers) and from Tha Li Substation to the new Khon Kaen 4 Substation (distance of approximately 225 kilometers) totaling 460 circuit-kilometers of transmission lines (only in Thai territory). The project also includes two new substations and installation of transformer of 1,000 MVA. The investment cost of this project is 12,060 million Baht. The project was initially planned for completion in 2018.
8. Transmission System Development for Chana Power Plant Block 2 Project
This new transmission system project aims to serve 800 MW power from EGAT’s new Chana Power Plant Block 2 Project. The project comprises the construction of 230 kV Chana power plant – Chana Junction – Khlong Ngae lines, with a total distance of 90 circuit-kilometers, and the construction and expansion of two existing substations. The investment cost of this project is 1,290.50 million Baht. As of November 2013, the progress of this project was 39.87 percent. It was scheduled to be completed in March 2014.
9. Transmission System Expansion and Renovation Project Phase 1: Substation
This project involves the improvement/replacement of aged substation equipment and control systems at EGAT’s 15 substations and other miscellaneous transmission system expansion. The project aims to increase the availability, reliability, and security of transmission system with an investment cost of 3,815 million Baht. As of November 2013, the progress of the project was 1.34 percent. The project was scheduled for completion in February 2017. 10. New Transmission System Interconnection Project between Su-ngai Kolok Substation (EGAT) and Rantau Panjang Substation (TNB)
This new transmission system project helps strengthen the system’s security and reliability in the Narathiwat Province by increasing imported power from Malaysia and promote the cooperation between Malaysia and Thailand. The investment cost of the project is 535 million Baht. The construction will start after the Interconnection Agreement between EGAT and Tenaga Nasional Berhad (TNB) is achieved. 11. Main Transmission System Expansion Project for Power Purchase from SPP Cogeneration Power Plants, Based on Request for Proposal 2010
This project is the expansion of major transmission system to accommodate the increasing power purchase from SPP’s cogeneration power plants in line with the resolution of the National Energy Policy Council (NEPC) of November 25, 2010 to strengthen the stability of the power system and reduce the loss of power in supplying and purchasing.
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The project involves the construction of new 230 kV transmission lines between Ayutthaya 4 and Sikhio 2 Substation, renovation of related transmission lines with the distance of 482 circuit-kilometers, a new substation, the installation of transformers of 2,650 MVA, and the improvement of relevant transmission system. The investment cost of the project is 10,610 million Baht. As of November 2013, the progress of the project was 1.07 percent. The project will be completed in January 2017.
12. Transmission System Renovation and Expansion Project Phase 1: Transmission
Line
This transmission system renovation and expansion project aims to reduce the power loss from the blackout caused by the old transmission line so as to increase the continuity and efficiency in power supply and to enhance the reliability of the power system and the performance index of the transmission system. It involves the replacement and upgrade of 15 transmission line routes and other miscellaneous transmission system expansion. The investment cost of the project is 9,850 million Baht. As of November 2013, the progress of this project was 0.12 percent. This project was planned for completion by February 2017. 13. Transmission System Development in the Area of Ubon Ratchathani, Yasothon, and Amnat Charoen Provinces for Power Purchase from Lao PDR Project
This project is intended to accommodate the power purchase from XepianXenamnoy Hydropower Plan Project which has the generating capacity of 3Ă—130 MW, and to receive more power from other potential projects from the Southern part of Lao PDR. The project consists of the construction of new 500 kV transmission lines from Thai/ Lao Border at Ubon Ratchathani Province to the new Ubon Ratchathani 3 Substation with the distance of 90 kilometers, initially energized at 230 kV, and the improvement of other transmission lines (in Thai territory only) with a total of 440 circuit-kilometers. The project also includes the construction of a new substation and the installation of transformers of 400 MVA. The investment cost of the project is 7,300 million Baht. The project was approved by the Cabinet on March 19, 2013 and expected to be completed in 2018.
14. Transmission System Renovation and Expansion Project Phase 2
The Transmission System Renovation and Expansion Project Phase 2, a successive scheme of Phase 1 involves the renovation and expansion of the existing 19 substations and 11 transmission lines and other miscellaneous work related to the transmission system. The investment cost of the project is 21,900 million Baht. The project was approved by the Cabinet on January 15, 2013 and was expected to be completed by 2015-2017.
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15. Transmission System Improvement Project in Eastern Region for System Security Enhancement
This transmission system project aims to improve the system security in the Eastern part of Thailand to continuously serve the growing electricity demand and also receive the electric power from the new power plants. The project consists of the construction of the transmission lines totaling 358 circuit-kilometers, two new substations, and the installation of additional transformers of 4,000 MVA. The investment cost of the project is 12,000 million Baht. The project was approved by the Cabinet on April 23, 2013 and expected to be completed by 2017 and 2019.
16. Bulk Power Supply for the Greater Bangkok Area Phase 3 (BSB3)
Being a successive project of BSB2, BSB3 comprises several subprojects to respond to the increasing demand for electricity in the Greater Bangkok area, to maintain the stability of the power system and the continuity of the power supply according to the standard, and to cope with the malfunction problem of the western natural gas pipelines as well as providing the security of the power system of the country as a whole. The project comprises the construction of 27 circuit-kilometer transmission lines, two new substations, the installation of transformers of 4,200 MVA, and the voltage control equipment of 288.0 MVAr. The investment cost of this project is 12,100 million Baht. The project was approved by Cabinet on October 15, 2013 and scheduled to be completed initially in 2018. Transmission System Projects in an Approval Process
1. Transmission System Expansion Project No. 12 (TS.12)
Being a successive scheme of the project TS.11, the project TS.12 covers the transmission system expansion and reinforcement projects in all provincial areas countrywide to cope with the increasing demand for electricity and to support the expansion plan of the new delivery points of the Provincial Electricity Authority (PEA). The project TS.12 consists of the construction of the transmission lines of the distance of approximately 2,791.7 circuit-kilometers, 7 new substations, the installation of transformers of 9,300 MVA, and the voltage control equipment of 2,322 MVAr. The investment cost of the project is 60,000 million Baht. The project is expected to be approved by Cabinet in 2014 and scheduled to be completed in 2020. 2. Transmission System Improvement Project in Western and Southern Regions to Enhance System Security
The project involves the construction of the 500 kV transmission lines and the renovation of 230 kV transmission systems to cope with the increasing power demand in the Southern part of Thailand in the long run and to increase the capability of the transmission system from the West/Central of Thailand to the South in order to promote the growth of business, industry, and tourism sectors of southern Thailand, including remedy in the power outage in the South. The investment cost of the project is 63,200 million Baht. This project is expected to be approved by the Cabinet in 2014 and scheduled to be completed in two phases: 2019 and 2022.
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Research and Development
In 2013, EGAT research and development roadmap was completed. To cope with the mission and responsibilities of EGAT, the work of related units was classified into five major groups with the timeframe in line with the technological progress and the support of appropriate EGAT’s budget in research and development as well as the social research for the purpose of community development around EGAT’s power plants. The research and development roadmap of EGAT, a master plan in research and development, is beneficial sustainably to EGAT as it can be used in setting a direction for the future research and development work to meet the demand of all units and to cope with the technological changes. Examples of EGAT research and development roadmap in nuclear power plant are as follows:
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EGAT has funded 25 research projects of both inside and outside research offices and also of educational institutes. Since 2006, a total of 183 projects amounting to 1,199.02 million Baht have been funded. Moreover, EGAT has signed a Memorandum of Understanding with the Agricultural Research Institute to promote the research and development in using the by-product from power generation to enhance agricultural value and technology of energy crop, as well as continuously increasing the competency of the researchers together with the development of useful knowledge for the country. Examples of the 18 completed EGAT-funded projects in 2013 were as follows:
1. Study on Integrated Reclamation of Cooling Blowdown
The study provides EGAT with an integrated reclamation of cooling blowdown for the thermal and combined cycle power plants which is technically and economically appropriate. It can reduce the use of water from natural water resources and thus the drain of wastewater to the environment without a negative impact on the ecological system of the public water resource.
The chart showing integrated reclamation of cooling blowdown
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2. Design and Development of Water Free Vortex Micro Hydropower Plant
The research revealed that the electricity generated by the water free vortex system was environmental friendly and did not damage the aquatic animals. Being a low-cycle turbine, the aquatic animals which may come with the flow of water can safely escape from the turbine. Moreover, the rotation of water can also increase oxygen to the water resource.
Water free vortex
Turbine and its operational test
Water free vortex micro hydro power plant with its water level of 0.7-0.9 meters and capacity of 1 kW.
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3. Development of Robotic System for Welding
The research revealed that the designed robotic system for welding could weld the critical part of the power plant precisely and efficiently. The robotic system can control the precision of the welding constantly throughout the work, with speediness and consistent quality, reducing the rework problem.
Robotic system for welding
4. Relationship of Air Deck Length to Ground Vibration of Mae Moh Mine
The research revealed that the method could reduce the vibration in the explosion of Mae Moh Mine and produce lignite more rapidly while reducing the use of energy and maintenance cost of the machine. As the explosion can destroy the ground structure having the soil hardness, the deterioration of the machine, energy use, and the cost of explosives can be minimized.
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5. Development of Smart Grid Roadmap for Electricity Generating Authority of Thailand
From the research, a roadmap with a clearly stated vision, mission, and target is available for EGAT for its smart grid development. The roadmap also provides a direction for the preparation for the readiness of the personnel, the knowledge, and related technology. It is useful in preparing the action plan according to the timeframe and in monitoring the progress of each activity in each project.
Integration of power grid and information infrastructures
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Organization and Human Resource Development Human Resource Management
EGAT values its employees as the most important resource for the organization’s sustainable growth. Its human resource management emphasizes on building professionally competent, good, and happy employees with loyalty to the organization. In 2013, EGAT continued to promote and encourage the employees to work with transparency, honesty, accountability, mutual respect, and self-development in line with EGAT’s corporate culture: “Loyalty, Striving for Excellence, and Embracing Good Ethics” which leads the organization towards its goal in becoming national pride. In addition, EGAT has supported employees’ recruitment and educational development by providing undergraduate scholarship to students and offering more scholarship for further studies. Human Resource Development
Human resource development programs have been arranged for the employees of all levels and all functions. Trainings are organized in various areas such as management, quality of life development, ethics and virtues, etc., to promote the employees to be competent and responsible for themselves, organization, and society as well as enjoying their work. In 2013, EGAT’s employee development programs were designed with a variety of development approaches with an aim to enhance the effectiveness and shorten the learning curve. In addition to classroom training, other methods such as coaching, mentoring, and special assignment were encouraged. Moreover, Individual Development Plan (IDP) technique was implemented. EGAT emphasized the development of core technical competencies in terms of electricity production and transmission and also drove the culture of learning organization through knowledge management activities in order to maintain and disseminate the core knowledge and knowhow within the organization. Promotion of employee’s ethics and awareness of social responsibility was also handled substantially throughout the year. EGAT also fully supported the long-term development
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of both management and employees by having them trained by well-known institutes and studied for a master’s degree and a doctorate. Thus, EGAT people can develop their competencies to cope with the future progress. Lastly, the retirement preparation program was also organized to enable the retiring employees to live happily and healthily after retirement. Information Technology Management
EGAT uses the information technology system in accordance with its IT Governance which covers risk management and regulations concerning management of information to be reliable, secure, and correct for continual use; available for need; and compliant with the law. The IT Management helps support the aim of EGAT to become a high-performance organization as stated in EGAT’s Corporate Strategic Plan (2013-2017). The Information Technology Committee is thus responsible for laying down policy, rules, and regulations and to consider and follow-up the results of operations and the project implementation for business alignment to increase the efficiency and effectiveness in responding to the need of all stakeholders.
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EGAT has followed the strategies as indicated in the Information and Communication Technology (ICT) Master Plan (2013-2017). Improvement has been made to ensure that EGAT’s work plans are initiated efficiently and lead to a successful delivery of business operations. The key ICT strategies are as follows: Strategy 1 : Develop EGAT’s ICT professionals both in terms of quality and quantity to create, produce, and use ICT in an efficient, effective, ethical, and discreet manner Strategy 2 : Strengthen EGAT’s ICT governance Strategy 3 : Develop EGAT’s ICT infrastructure Strategy 4 : Use ICT to promote EGAT’s good governance Strategy 5 : Use ICT to build EGAT’s sustainable competitiveness. To optimize its operational efficiency, EGAT has successfully implemented the Enterprise Resource Planning (ERP) to be aligned with its business processes since 2007. The regular maintenance, improvement, and expansion of the ERP system are made to include business processes and integration of data and information of day-to-day operations into the Executive Information System (EIS). To ensure the system availability and the potential of system for future business, in 2013 the computer system for ERP was replaced after six years of use. EGAT has used an email system as one of the major tools in doing its business and as an effective mean of communications including business contacts, scheduling of meetings, and distributing of information. The email system has been maintained and improved for efficiency with seamless availability. In 2013, in responding to disasters that might occur at the head office, the email backup system was installed at a safe location outside the head office.
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Information Technology (IT) Security
EGAT’s information security policy, standards for information security, and manual for information security control according to ISO/IEC 27001 were approved by the Electronic Transactions Commission on September 28, 2011. From 2010, the information security management system of EGAT according to ISO/IEC 27001: 2005 has been successfully certified covering the security in the provision of internet and email services.
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Clean Energy‌.. Power for the Future
EGAT supports the research and development of alternative energy and power plant model with high efficiency and clean technology as power for the future.
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Corporate Social Responsibility EGAT has carried out both CSR in process and CSR after process taking into account the participation of the public and sustainable development of the quality of life and the environment, in order to encourage the public acceptance. Activities Concerning the Communities around the Power Plants
Participatory process has been used to enhance the participation of all sectors as follows: Encouragement of understanding in power development This activity aims to create an understanding of the public to be aware of the increasing power demand owing to the growth and expansion of the society, which results to the necessity of the new power development projects. The power projects to increase the generating capacity of the existing power plants include the North Bangkok Power Plant Block 2, the Unit 4-7 Replacement Project of Mae Moh Power Plant, the Wang Noi Power Plant Block 4, the Chana Power Plant Block 2, five micro-hydropower plants, downstream hydropower plants, and Bang Lang Hydropower Plant Unit 1-3. The new power plant development projects include coal power development projects in Chumporn, Nakhon Si Thammarat, Trang, Krabi, and Songkhla Provinces, renewable power development projects in Sikhio District, Nakhon Ratchasima Province and Thap Sakae District, Prachuap Khiri Khan Province, and nuclear power project area. Development of the communities’ quality of life EGAT has participated with all sectors to support and improve the quality of life of the communities in the vicinity of the power plants and areas for new power development projects. For sustainable development, a variety of community development projects and activities have been carried out. EGAT also promotes and disseminates knowledge to local people on the application of effective microorganism in sustainable farming and living. Environmental conservation promotion EGAT promotes and participates with all sectors in raising awareness and recognition of environmental conservation through the campaigns based on the Royal Initiative Projects in Conservation of Natural Resources and Environment.
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EGAT’s project on reforestation to increase water sources of Sirikit Dam to commemorate the 78th Birthday Anniversary of Her Majesty the Queen The forest conservation project was implemented under the initiations of the Organizing Committee to commemorate the 60th Coronation Anniversary and the Ministry of Energy’s project to commemorate the 78th Birthday Anniversary of Her Majesty the Queen (August 12) with the concept of “Tree planting and check dam building to honor the Queen”. The project aimed for reforestation in an area of 780 rai on the right riverbank of the Nan River National Park in Tha Pla District of Uttaradit Province and an increase of water sources by building 780 check dams around the reservoir of Sirikit Dam with participation of all concerned sectors.
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Project on restoration and preservation of seagrass in Krabi Province The project aimed to create the awareness in restoration and conservation of seagrass with participation of communities in Sri Boya Sub-district, Nuea Khlong District, Krabi Province by growing and planting seagrass around Sri Boya Island and Pu Island. A learning center was established at Pu Island. A campaign on seagrass planting was organized with the participation of the community.
Promotion of the conservation of forests and the environment The project aimed to create the awareness in forest and environment conservation with participation of communities and government sectors by means of forestation. Examples of such activities are as follows: - Tree planting in Ubol Ratchthani Province - Mangrove planting in the Mu Koh Chumphon National Park, Mueang District in Chumphon Province - Mangrove planting on both sides of the Natub Canal
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- Mangrove planting on the islet in the Bang Pakong River - Trees planting to increase green area in Bang Kruai District, Nonthaburi Province with participation of the community in the area
Promotion of community environment protection The activities of using effective microorganisms (EM) as the means to protect the environment were conducted with participation of communities which included lecture on the use of EM for environmental protection in power development area in different
provinces such as Ubon Ratchathani, Kalasin, Nakhon Ratchasima, Nakhon Sawan, Ayutthaya, Nonthaburi, and Nakhon Si Thammarat. Moreover, under the Project “Beautiful Canal, Clear Water�, EGAT conducted training and established 5 microorganism banks in community areas. Activities Concerning the Environmental Conservation
EGAT has given importance to environmental management by conducting activities within the framework of corporate social responsibility and environmental policy comprising the project on greenhouse gas reduction and development of clean and renewable energy. In 2013, major activities in environmental conservation are as follows:
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Environmental impact assessment of power development projects Concerning the environmental impact assessment for the new power development projects in 2013, assessment reports of the following 5 projects were approved by the Office of Natural Resources and Environmental Policy and Planning. - Bang Pakong Combined Cycle Project Block 5, Chachoengsao Province - Lam Ta Khong Wind Power Project Phase 2, Nakhon Ratchasima Province - Khlong Tron Hydropower Project, Uttaradit Province - Grid network of 500 kV between Thai border (Nan Province) - Nan 2 - Mae Moh 3 (additional part through the conservation area) - Solar Power Project of 5 MW, Thap Sakae District, Prachuap Khiri Khan Province The preparation of report of the environmental impact assessment of the following 3 more projects are in process: - Project of capacity expansion of Krabi Power Plant, Krabi Province - Project of Replacement of Mae Moh Power Plant, Units 4-7, Lampang Province - Mae Moh Mine, Lampang Province Monitoring the environmental quality EGAT recognizes the importance of environmental quality monitoring in preventing and controlling the environmental impact from the operation. The activities include the control of air pollution from SO2, NOx, CO2, etc. as well as management and control of quality of water, noise, waste, and used materials in accordance with the standard specified in the law and improvement of the quality of the environment as a whole. Moreover, EGAT supports the establishment of a network of the communities around the power plants to monitor the environmental quality. Environmental network The environment community networks in the area of 5 kilometers from power plants have been established, namely, - Wang Noi Combined Cycle Power Plant, Ayutthaya Province - Chana Combined Cycle Power Plant, Songkhla Province - North Bangkok Combined Cycle Power Plant, Nonthaburi Province - Lam Ta Khong Jolabha Vadhana Power Plant, Nakhon Ratchasima Province The purpose of the network is to provide the communities knowledge and practice in the fundamental inspection of water quality. With this, EGAT intends to create more understanding from the communities and a closer linkage between the local ecological system and the power plants.
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Stakeholders’ participation and public hearing EGAT recognizes the importance of stakeholders’ participation and public hearing. In 2013, several public hearings were organized for the communities located around the new power development projects as follows: - Bang Pakong Combined Cycle Project Block 5, Chachoengsao Province - Solar Power Project of 5 MW, Thap Sakae District, Prachuap Khiri Khan Province - Kiew Koh Ma Hydropower Project, Lampang Province - Grid network of 230 kV between Ayutthaya 4 - Sikhio 2 (additional part through the conservation area) - Clean Coal Technology Project, Nakhon Si Thammarat Project on Clean Development Mechanism (CDM) EGAT has implemented the Clean Development Mechanism (CDM) to minimize the greenhouse gas emission. The following 6 projects are in process:
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- The project of energy efficiency improvement of Mae Moh Power Plant, unit 10-11, through retrofitting low pressure turbines. This is the presently largest CDM project in Thailand. - Mae Ngat Somboon Chol Hydropower Project, Chiang Mai Province - Kaeng Krachan Hydropower Project, Phetchaburi Province - Mae Khlong Hydropower Project, Kanchanaburi Province - Pa Sak Jolasid Hydropower Project, Lop Buri Province - Chao Phraya Hydropower Project, Chai Nat Province - Sirindhorn Solar Power Project, Ubon Ratchathani Province Among these projects, EGAT Irrigation Valve Based Micro Hydro Project at Mae Ngat Somboon Chol Dam and Kaeng Krachan Dam complies with the Crown Standard from Thailand Greenhouse Gas Management Organization (Public Organization) The above-mentioned 6 projects have been registered at the CDM-EB for UNFCCC. They are contributing, not only to the efficiency in power generation and fuel cost reduction, but also to the image of EGAT as an organization which takes account of society, community, and environment. Environmental management in accordance with ISO 14001 EGAT has implemented the environmental management system in accordance with ISO 14001 within its operation units to build confidence to the society and community in its environmental management system. In 2013, 27 units of EGAT including power plants, dams, and mine were certified with ISO 14001 by the certification body. Moreover, EGAT substations also implemented ISO 14001 so that the environmental management system could cover from the power generation to the transmission system. Environmental and social management of the power plants From the construction phase up to the power generation phase, EGAT has focused on Social Impact Assessment (SIA), Health Impact Assessment (HIA), the implementation of the international standard of ISO 14001, and Thai Industrial Standard for Occupational Health and Safety (TIS 18001). To minimize the environmental impact and to create correct understanding on the power development projects leading to the acceptance of all stakeholders, EGAT has taken account of the stakeholder’s participation process and public hearing as stated in the Constitution of the Kingdom of Thailand B.E. 2550. Social Activities
EGAT has placed emphasis on good relationship with the communities in the vicinity of the EGAT’s power plants and along the transmission lines as well as involvement in providing them better quality of life. Social projects implemented by EGAT are as follows:
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EGAT’s Project “Headwaters Reforestation at Sirikit Dam in Commemoration of the 80th Birthday Anniversary of Her Majesty Queen Sirikit” The project was implemented during 2012-2013. Activities included planting of 1,000,000 saplings each year, the campaign to plant vetiver grass and to promote the understanding in using vetiver grass for soil and water protection, strengthening relationship with the communities in the area of headwaters of Sirikit Dam, nearby areas, and target areas, and construction of check dams. EGAT will take care of the reforestation area for two more years before handing over to the Department of Forestry and Department of National Parks, Wildlife and Plant Conservation.
EGAT’s D.I.Y Camp for the Volunteering Spirit Fostering Project The project aims to foster volunteering spirit among university students through the volunteer camp activities under the concept “Good thoughts, good deeds”. Invitation has been sent to university students to submit a D.I.Y project for contest. Selected students are sponsored to participate in D.I.Y activities organized by EGAT. For maximum benefit, the integrated knowledge in energy and experience in social responsibility and D.I.Y camp management are incorporated in the D.I.Y activities so that the students could apply in the area. EGAT is proud to be a part in fostering and building a network of “Young EGAT” to become good members of the society.
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Financial Support to Thai Weightlifting Sport Project EGAT has given financial support to the Thai Amateur Weightlifting Association (TAWA) since 2004 to present under the project “One State Enterprise, One Sport Association� initiated by the Government to develop the competency of the Thai athletes. The Thai were so successful that they won gold, silver, and bronze medals in the three successive Olympic Games, i.e. 2004 Athens Olympic Games in Greece, 2008 Beijing Olympic Games in China, and recently 2012 London Olympic Games in England. EGAT continues to support TAWA for four more years (2013-2016) for the 2016 Rio de Janeiro Olympic Games in Brazil. EGAT also sponsored the competition of EGAT Weightlifting Thailand Championship for the royal trophies granted by His Majesty the King, His Royal Highness Crown Prince Vajiralongkorn, and Her Royal Highness Princess Maha Chakri Sirindhorn. Biological Way of Life for Sustainable Development Project Being the project implemented since 1999, the Biological Way of Life for Sustainable Development Project is based on the royal initiative of their Majesties on the concept of sufficiency economy. The project focuses on the promotion and knowledge dissemination by EGAT employees to the communities in the vicinity of the power plants countrywide. The project promotes the reduction and avoidance of chemical use replaced by effective microorganism among communities, farmers, schools, and public and private organizations. Through the Memorandum of Understanding between EGAT and Office of Vocational Education Commission, the Biological Way of Life for Sustainable Development Project were implemented in 92 agricultural and technological colleges, vocational colleges, fishery colleges, and technological and management colleges throughout the country for further extension to the communities with necessary financial and material support provided by EGAT. Demand Side Management (DSM)
The principal mission of EGAT is to sufficiently acquire and generate electricity to meet the demand of the country. As the demand is increasing while the source of energy and fuel is decreasing, EGAT has implemented demand side management actively since 1993 until today. 35 projects have been implemented to promote the effective and economical use of electricity in all sectors including household, business, and industry as well as increasing the awareness of the youth in the effective use of electricity to prolong the availability of electricity. Among these projects, the Label No.5 project is the most successful and becomes well known among the consumers. The Label No.5 represents high performance electrical appliances which require less energy and help reduce the electricity cost of the households. In 2013, major achievements included labeling of 2 more high performance electrical appliances, namely washing machine and light emitting diode (LED) lamp. Furthermore, EGAT signed an agreement with the manufacturers for the improvement of microwave oven and induction cooker so that they will be eligible for Label No.5 by 2014. Up to 2013, there are 21 high performance electrical appliances which have the Label No. 5, comprising lighting equipment, cooling equipment, household electrical equipment, etc. A total of 247 million of Label No.5s were attached to these efficient products.
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The project of T5 fluorescent lamp was implemented in government buildings, monasteries, and private sector with financial support from the Energy Conservation Fund. During 2008-2013, more than 13 millions lamps were used in replacement. From the study in the project promoting the use of LED lamps, it was found that LED lamps could reduce the use of electricity approximately 60-70 percent. A pilot project was carried out to use the LED street lamps at EGAT’s 8 dams and power plants and to collect data on the energy use and saving. The project can be used as a sample to the public in the use of LED lamps for lighting purpose.
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In May 2013, an international exhibition in electric lamps and LED “LED Expo Thailand 2013” was organized by EGAT at IMPACT Exhibition and Convention Center, Muang Thong Thani. Technology and innovation of LED products of manufacturers from different countries were presented to provide knowledge on high-performance lighting products and to promote the wide use, contributing to the energy saving of the country as a whole. In load management, EGAT made a study on the potential in reduction of electricity need by means of Demand Response (DR) measure to minimize the use of electricity in industry to prevent the possible power crisis. EGAT made a survey and assessed the potential in power reduction by means of DR in 120 buildings and industrial premises before promoting the activities to the national level. The youth is the target group which EGAT has given continuous attention. DSM’s Green Classroom Project aims to provide knowledge in energy and its effective use. Presently, EGAT has upgraded from the Green Classroom Project in 414 schools to the Green School in 92 schools across the country. The activity has been extended to more than 800 nearby schools in the network. Moreover, EGAT has introduced schools to a low carbon society by encouraging their participations in the reduction of carbon dioxide emission. Throughout 20 years of its operation in DSM, EGAT has achieved satisfactory results as evidenced by the acceptance and participation of all sectors and the successful energy saving rate. In 2013, the electricity demand of the country could be reduced by 3,150 MW, the peak energy saving was of 19,000 million kWh, and the carbon dioxide emission could be reduced by 11 million tons. CSR Achievement
Ban Klong Rua Micro-Hydropower Project of Phato District, Chumphon Province was given three awards, which was the result of energy knowledge management for the southern area implemented by EGAT in cooperation with Faculty of Social Administration, Thammasat University. The project was selected by the Department of Alternative Energy
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Development and Efficiency and EGAT to participate in the 3 contests in 2013. It could successfully win the awards in the national and regional contests. In ASEAN Energy Award 2013 organized at Nusa Dua Convention Center in Bali, Indonesia, the project was the first runner-up in the category of the off-grid renewable energy projects. In Thailand Energy Award 2013 at the Office of the Prime Minister, the project won the award as outstanding project in the category of the off-grid renewable energy projects. The project was also awarded the 2013 Outstanding State-Owned Enterprise (SOE) in the area of CSR. Community Enterprise of Charcoal Briquettes situated at Moo 6, Ban Khlong Wai Lek, Khlong Kanan Sub-district, Nuea Khlong District, Krabi Province was originated from the project of quality of life development and energy security in the community. It was implemented by EGAT in cooperation with Faculty of Social Administration, Thammasat University. The project aims for quality of life development planning by participatory process and begins with the analysis of household problem and collection of the need and problems to find solution. From the analysis, it has been found that cooking fuel such as a large amount of gas and charcoal is required. As a solution to the problem, the community should produce charcoal briquettes from the waste materials such as coconut shells or driftwood for use and for sale. The project comprises the experiment and study tour on briquette production together with the application of community management and local wisdom in charcoal production. The production of charcoal briquettes has been materialized as a community enterprise of Nuea Khlong District. The people living in the community have adopted a job of charcoal production from coconut shells to supply to the factory. Moreover, the people can invest in the community enterprise and get dividend. With the project, sustainable development could be achieved, and the community could be strengthened. Moreover, both of Mae Moh Power Plant and Mine received ASEAN Energy Awards 2013. Mae Moh Power Plant was awarded the first runner-up in the category of Best Practices - Clean Coal Use and Technology in Power Generation, while Mae Moh Mine was awarded the first runner-up in the category of Best Practices in Surface Coal Mining.
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Events
On June 13, 2013, Her Royal Highness Princess Maha Chakri Sirindhorn graciously represented His Majesty the King in officiating the opening of EGAT’s Lam Ta Khong Jolabha Vadhana Power Plant. HRH Princess also visited the Lam Ta Khong Wind Power Plant and observed the activity of the “Wan Kaew” Project.
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Her Royal Highness Princess Maha Chakri Sirindhorn graciously inaugurated the museum of Ban Yang Micro-Hydropower Plant in Fang District, Chiang Mai Province on August 13, 2013. The Ban Yang Micro-Hydropower Plant which was one among the royal initiative projects of His Majesty the King and the first micro-hydropower plant of Thailand became a learning center for hydropower generation.
On December 20, 2013, Her Royal Highness Princess Maha Chakri Sirindhorn graciously presided over the technical meeting and exhibition entitled “Thai Resources: Showing to the World”. The Princess also officiated the opening of the building “Rajanurak” which was EGAT’s learning center at Srinagarind Dam in Kanchanaburi Province. The building was constructed to commemorate the work of HRH Princess Maha Chakri Sirindhorn in conservation, development, and sustainable use of natural resources of the country.
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Prime Minister Ms. Yingluck Shinawatra chaired the opening of “Thai People Solving the Power Crisis” campaign which was held at the Government House on April 4, 2013. The campaign called for cooperation of Thai people in reducing the use of energy (i.e. to turn off electricity, to adjust air-conditioners, and to unplug electricity) during April 5-14, 2013.
Mrs. Anchalee Chavanich, Chairperson of EGAT Board of Directors, represented EGAT in receiving the 2 awards from the Prime Minister Ms. Yingluck Shinawatra on October 16, 2013. The awards comprised “2013 Outstanding State-Owned Enterprise (SOE)” in the category of CSR for the Ban Klong Rua Micro-Hydropower Project (located in Pak Song Sub-district, Pha To District, Chumphon Province) and an honorary award for outstanding innovation in “Voice Communication Control System (VCCS)”.
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EGAT Governor, Mr. Soonchai Kumnoonsate, and EGAT executives represented EGAT in hosting royal mourning of the late Supreme Patriarch, His Holiness Somdet Phra Nyanasamvara on October 31 and November 11, 2013 at Petch Pavillion, Bowon Niwet Temple in Bangkok.
EGAT organized “LED Expo Thailand 2013� which was the first international exhibition on technological electricity system and LED products of Thailand, during May 23-25, 2013 at IMPACT Exhibitions and Convention Center at Muang Thong Thani.
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In “Thailand Energy Awards 2013” on July 5, 2013, EGAT won two outstanding awards in renewable energy projects: Ban Klong Rua Micro-Hydropower Project in the category of the off-grid renewable energy projects and EGAT website (www.egat.co.th) in the category of website on promotion of energy conservation and renewable energy.
Ban Klong Rua Micro-Hydropower Project was awarded the first runner-up in the category of the community-based off-grid in the “ASEAN Energy Awards 2013” on August 16, 2013.
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EGAT announced the success of its “20 Years of DSM - Demand Side Management� in recognizing cooperation of all concerned parties in achieving the saving of approximately 3,000 MW of the power system and reducing 10.7 million tons of carbon dioxide. The signing ceremony of the MOU together with the presentation of the Label No.5 plaques to the manufacturers and the launch of No.5 Application was held on September 18, 2013.
EGAT organized the ceremony of foundation-stone laying for the construction of the North Bangkok Power Plant Block 2 on November 19, 2013. It is estimated that, after the construction completes, electricity will be supplied to the system by January 2016 to cope with the rising demand for electricity in Bangkok and the metropolitan area.
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Key Statistical Data
System Installed Generating Capacity
Type of Power Plant
2013 MW Percentage
2012 Increase MW Percentage Percentage
EGAT’s Power Plants Thermal 4,699.00 13.95 4,699.00 14.41 Combined cycle 6,866.00 20.39 6,866.00 21.06 Hydropowr 3,435.74 10.20 3,435.74 10.54 Diesel 4.40 0.01 4.40 0.01 Renewable energy 4.99 0.02 4.99 0.02 Subtotal 15,010.13 44.57 15,010.13 46.04 Purchase from Domestic Private Power Plants IPPs 12,741.69 37.83 12,741.69 39.08 SPPs 3,524.60 10.46 2,444.60 7.50 Neighboring Countries Laos 2,104.60 6.25 2,104.60 6.46 EGAT-TNB 300.00 0.89 300.00 0.92 Interconnection System Subtotal 18,670.89 55.43 17,590.89 53.96 Grand Total 33,681.02 100.00 32,601.02 100.00
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44.18 6.14 3.31
Monthly Peak Generation Requirement
Month January February March April May* June July August September October November December Yearly Peak Generation Requirement *
Monthly Peak Generation Requirement (MW) 2013 2012 23,390.78 22,251.10 24,589.40 23,554.40 26,422.97 24,571.51 26,324.61 26,121.10 26,598.14 25,207.27 25,038.04 23,927.30 24,568.41 23,932.60 23,941.68 24,155.70 24,363.69 24,009.30 23,741.50 24,131.33 24,251.18 24,657.91 22,905.22 20,395.42 26,598.14 26,121.10
Increase/ (Decrease) MW Percentage 1,139.68 5.12 1,035.00 4.39 1,851.46 7.53 203.51 0.78 1,390.87 5.52 1,110.74 4.64 635.81 2.66 (214.02) (0.89) 354.39 1.48 (389.83) (1.62) (406.73) (1.65) 2,509.80 12.31 1.83 477.04
2013 peak generation requirement occurred on May 16, 2013 at 14.00 hours 2012 peak generation requirement occurred on April 26, 2012 at 14.30 hours
Monthly Energy Generation Requirement
Month
Monthly Energy Generation Requirement (Million kWh) 2013 2012
January 13,644.32 13,036.23 February 13,476.66 13,579.14 March 15,730.69 15,252.02 April 14,674.50 14,380.65 May 16,058.70 15,411.17 June 14,793.29 14,597.00 July 14,748.06 14,847.93 August 14,857.03 14,652.29 September 14,403.65 14,209.28 October 14,572.38 14,792.85 November 14,176.28 14,486.75 December 12,399.89 13,959.81 Total 173,535.45 173,205.13
Increase/ (Decrease) Million kWh Percentage 606.16 4.65 (102.48) (0.75) 479.43 3.14 292.72 2.04 645.90 4.19 196.29 1.34 (99.87) (0.67) 199.36 1.36 193.61 1.36 (202.47) (1.49) (310.47) (2.14) (1,559.92) (11.17) 330.32 0.19
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Gross Energy Generation and Purchase (by type of fuel)
2013 2012 Source
Million kWh Percentage
Increase/ (Decrease)
Million kWh Percentage Percentage
EGAT’s Power Plants Natural gas 48,234.06 27.80 51,040.61 29.47 Lignite 17,109.59 9.86 16,817.40 9.71 Hydropower 5,390.33 3.11 8,408.36 4.85 Fuel oil 1,201.19 0.69 1,177.45 0.68 Diesel oil 173.25 0.10 55.46 0.03 Renewable energy 5.52 - 3.57 0.01 EGAT’s Total Generation 72,113.94 41.56 77,502.85 44.75 Purchase from Domestic Private Power Plants - IPPs Natural gas 51,518.52 29.69 55,588.57 32.09 Coal 14,277.85 8.23 13,707.39 7.91 Fuel oil 195.23 0.11 727.24 0.42 Diesel oil 189.71 0.11 77.58 0.04 Subtotal 66,181.31 38.14 70,100.78 40.47 - SPPs Natural gas 17,252.64 9.94 10,434.28 6.02 Coal 1,999.15 1.15 2,009.34 1.16 Hydropower 29.20 0.02 29.81 0.02 Fuel oil 28.08 0.03 29.97 0.02 Biomass 2,850.55 1.64 2,527.99 1.46 Renewable energy 508.37 0.29 135.72 0.08 Subtotal 22,667.99 13.06 15,167.11 8.76 Neighboring Countries - Laos 12,427.54 7.16 10,293.60 5.94 - Malaysia 144.67 0.09 140.79 0.08 Subtotal 12,572.21 7.24 10,434.39 6.02 Total Energy Purchase 101,421.51 58.44 95,702.28 55.25 Grand Total 173,535.45 100.00 173,205.13 100.00
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(5.50) 1.74 (35.89) 2.02 212.39 54.62 (6.95)
(7.32) 4.16 (73.15) 144.53 (5.59) 65.35 (0.51) (2.05) (6.31) 12.76 274.57 49.45 20.73 2.76 20.49 5.98 0.19
Energy Sales
2013 2012 Increase/ Customer (Decrease) Million kWh Percentage Million kWh Percentage Percentage Metropolitan Electricity 49,623.63 29.27 49,991.69 29.52 (0.74) Authority (MEA) Provincial Electricity 116,793.35 68.89 116,025.45 68.50 0.66 Authority (PEA) Direct customers 1,635.94 0.97 1,693.21 1.00 (3.38) Standby power supply 98.04 0.06 119.81 0.07 (18.17) Electricité du Laos (EDL) 953.56 0.56 1,141.02 0.67 (16.43) Tenaga Nasional Berhad 4.22 - 1.06 - 298.11 (TNB) - Malaysia Electricité du Cambodge 416.97 0.25 393.06 0.23 6.08 (EDC) Other minor customers 4.61 - 4.67 - (1.28) Total 169,530.32 100.00 169,369.97 100.00 0.09
Average Energy Sales Price
2013 2012 Increase/ Customer (Decrease) Baht/kWh Baht/kWh Percentage 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 Overall Average Sales Price
3.04 3.02 3.18 6.51 1.65 7.28
2.79 2.81 3.01 5.76 1.83 7.69
8.85 7.63 5.78 12.94 (9.80) (5.32)
3.65 2.11 3.02
3.41 2.05 2.80
7.14 3.03 7.97
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Transmission System
2013 Voltage Level Line Length Number of Transformer
(Circuit-Kilometers) Substations (kV)
500 4,167.17 230 14,505.65 132 8.70 115 13,660.65 69 19.00 300 (HVDC) 23.07 Total 32,384.24
2012
Line Length Number of Transformer Capacity (Circuit-Kilometers) Substations Capacity (MVA) (MVA)
11 20,849.99 3,884.23 11 20,849.99 71 51,160.04 14,060.13 71 50,760.04 - 133.40 8.70 - 133.40 131 14,617.49 13,561.53 130 14,598.74 - - 19.00 - - - 388.02 23.07 - 388.02 213 87,148.94 31,556.66 212 86,730.19
Fuel Consumption
Type of Fuel 2013 2012 Natural gas (million cubic feet)* Fuel oil (million liters)* Lignite (million tons) Diesel oil (million liters)*
412,701.72 316.82 16.88 60.35
436,096.03 320.52 16.78 17.84
* Excluding gas and oil supplies provided for REGCO, KEGCO, and RGCO
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Increase/ (Decrease) Percentage (5.36) (1.15) 0.60 238.28
Reservoir Operation
2013 2012 Increase/ Operation (Decrease) Percentage Total reservoir capacity 62,427 (million cubic meters) * Total storage at year end 22,776 (million cubic meters) * Total water inflow (million cubic meters) * 37,240 Total water release (million cubic meters) * - Passed through generators 32,064 - Extra release through spillways 507 - Extra release for irrigation ** 348 - Evaporation 3,112 Total water release 36,031 Water pumped up into the 196 upper reservoir (million cubic meters) ** Generated energy (million kWh) *** 5,390 Water used for energy generation 6.68 (cubic meters/kWh)
62,290
-
21,255
7.16
33,009
12.82
39,502 - 292 3,176 42,971 68
(18.83) 100.00 19.18 (2.02) (16.15) 188.24
8,407 5.10
(35.88) 30.98
* Excluding Pak Mun Dam, Lamtakhong Dam, and other mini hydropower plants ** Water pumped up into Bhumibol Dam, Srinagarind Dam, and Lamtakong Dam *** All of EGAT’s hydropower plants
Workforce Educational Level
Bachelor’s Degree and Higher Diploma/Higher Vocational Certificate Vocational Certificate Others Total
at December 2013 at December 2012 Increase/ Number of Percentage Number of Percentage (Decrease) Persons Persons Percentage
7,869
34.28
7,543
33.05
4.32
8,217
35.80
7,978
34.95
3.00
3,055 13.31 3,813 16.61 22,954 100.00
3,201 14.02 4,103 17.98 22,825 100.00
(4.56) (7.07) 0.57
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Auditor’s Report
(TRANSLATION) (TRANSLATION) AUDITOR’S REPORT
TO: THE BOARD OF DIRECTORS OF ELECTRICITY GENERATING AUTHORITY OF THAILAND
The Office of the Auditor General of Thailand has audited the accompanying consolidated and separate financial statements of Electricity Generating Authority of Thailand and its subsidiaries and of (TRANSLATION) Electricity Generating Authority of Thailand, respectively, which comprise the consolidated and separate statements of financial position as at December 31, 2013, and the related consolidated and separate statements AUDITOR’S REPORT of income, comprehensive income, changes in owners’ equity and cash flows for the yearOFthen ended, and a TO: THE BOARD OF DIRECTORS OF ELECTRICITY GENERATING AUTHORITY THAILAND summary of significant accounting policies General and otherofexplanatory information. The Office of the Auditor Thailand has audited the accompanying consolidated and separate financial statementsforof the Electricity Generating AuthorityFinancial of Thailand and its subsidiaries and of Management’s Responsibility Consolidated and Separate Statements Electricity Generating Authority of Thailand,forrespectively, which comprise the consolidated and separate Management is responsible the preparation and fair presentation of these consolidated and statements of financial positioninasaccordance at Decemberwith 31, Thai 2013,Financial and the related consolidated andand separate statements separate financial statements Reporting Standards, for such internal ofcontrol income,as comprehensive income, changes in owners’ equitytheand cash flowsofforthetheconsolidated year then ended, and a management determines is necessary to enable preparation and separate summary significantthataccounting policies and other explanatory information. financial ofstatements are free from material misstatement, whether due to fraud or error.
Management’s Responsibility for the Consolidated and Separate Financial Statements Auditor’s Responsibility Management is responsible for theofpreparation fair presentation consolidated and The responsibility of The Office the AuditorandGeneral of Thailandof isthese to express an opinion separate statements in accordance Thai Financial Reporting Standards, andtheforAuditor such internal on thesefinancial consolidated and separate financial with statements based on the audits. The Office of General control as management determines is necessarywith to enable the preparation of theThose consolidated separate of Thailand conducted the audit in accordance Thai Standards on Auditing. standardsandrequire that financial statements that areGeneral free fromofmaterial to fraud orand error.plan and perform the the Office of the Auditor Thailandmisstatement, comply withwhether ethical due requirements
audit to obtain reasonable assurance about whether the consolidated and separate financial statements are free Auditor’s Responsibility from material misstatement. The responsibility of The Office of the Auditor General of Thailand is to express an opinion An audit involvesfinancial performing procedures auditThe evidence the amounts and on these consolidated and separate statements based toonobtain the audits. Office about of the Auditor General in the financial statements. The procedures on the auditor’s judgment, including ofdisclosures Thailand conducted the audit in accordance with Thai selected Standardsdepend on Auditing. Those standards require that the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. the Office of the Auditor General of Thailand comply with ethical requirements and plan and perform the In making thosereasonable risk assessments, auditor considers internal control the entity’s preparation and audit to obtain assurancetheabout whether the consolidated andrelevant separatetofinancial statements are free from สํ า นั กmaterial ง า น ก า ร misstatement. ต ร ว จ เ งิ น แ ผ่ น ดิ น An audit involves performing procedures to obtain audit evidence about the amounts and Office of the Auditor General disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the 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 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
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2 2 fair presentation of the financial statements in order to design audit procedures that are appropriate in the faircircumstances, presentation of statements in order toandesign audit that areof appropriate the butthe notfinancial for the purpose of expressing opinion on procedures the effectiveness the entity’s ininternal circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the control. An auditof accounting also includes evaluating themanagement, appropriateness policies and theof reasonableness estimates made by as wellof asaccounting evaluating the overallused presentation reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. the financial statements. The Office of the Auditor General of Thailand believe that the audit evidence the Office of The Office of the Auditor General of Thailand believe that the audit evidence the Office of the Auditor General of Thailand has obtained is sufficient and appropriate to provide a basis for the Office of thetheAuditor has audit obtained is sufficient and appropriate to provide a basis for the Office of AuditorGeneral GeneralofofThailand Thailand’s opinion. the Auditor General of Thailand’s audit opinion. Opinion Opinion In The Office of the Auditor General of Thailand’s opinion, the consolidated and separate In The Office of the Auditor General of Thailand’s opinion, the consolidated and separate financial statements referred to above present fairly, in all material respects, the consolidated and separate financial referred to above present fairly, in allof material consolidated separate financialstatements position of Electricity Generating Authority Thailandrespects, and its the subsidiaries, andand of Electricity financial position of Electricity Generating Authority of Thailand31,and subsidiaries, and of Electricity Generating Authority of Thailand, respectively, as at December 2013,itsand their consolidated and separate Generating Authority ofand Thailand, respectively,andasseparate at December 31, 2013, theirthen consolidated and separate financial performance their consolidated cash flows for theandyear ended in accordance with financial performance and their consolidated and separate cash flows for the year then ended in accordance with Thai Financial Reporting Standards. Thai Financial Reporting Standards.
(Signed) (Signed)
Prapee Ankinandana Prapee Ankinandana (Prapee Ankinandana) (Prapee Deputy Ankinandana) Auditor General
Deputy Auditor General Acting Auditor General Acting Auditor General
Adisorn Puawaranukroa Adisorn Puawaranukroa (Adisorn Puawaranukroa) (Adisorn Puawaranukroa) Director of Financial Audit Office No. 8.
(Signed) (Signed)
Director 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 สํ า Office นั ก ง า นofก าthe ร ต รAuditor ว จ เ งิ น แGeneral ผ่ น ดิ น Office Marchof24,the 2014Auditor General March 24, 2014
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Financial Statements (TRANSLATION) -3ELECTRICITY GENERATING AUTHORITY OF THAILAND AND ITS SUBSIDIARIES STATEMENTS OF FINANCIAL POSITION AS AT DECEMBER 31, 2013 Notes
Unit : Baht Separate financial statement 2013 2012
Consolidated financial statement 2012 2013 (Restated)
ASSETS CURRENT ASSETS Cash and cash equivalents
6.1
67,078,800,366
40,312,353,629
59,171,134,233
31,843,250,055
Temporary investments
6.2
37,068,694,151
13,769,278,699
33,020,558,654
8,047,257,530
Trade accounts receivable - others Trade accounts receivable - related parties
6.3 6.4.1
55,891,616,198 3,087,652,761
47,819,131,996 2,196,855,857
55,294,331,530 3,643,517,639
47,353,258,355 2,509,755,872
according to automatic tariff adjustment (Ft) Other accounts receivable
6.5 6.6
529,599,717 8,481,754,537
6,529,895,779 7,205,349,921
529,599,717 7,982,861,760
6,529,895,779 6,536,839,712
Current portion of long-term loans to related parties
6.4.2
Materials and supplies
6.7
13,103,841,970
Other current assets Derivative assets
6.8.1
121,136
Accrued revenue from electric energy sales
Others Total current assets NON-CURRENT ASSETS
-
62,500,000 12,631,918,829 -
10,533,246,348 121,136
10,414,636,705 -
132,196,442 185,374,277,278
93,362,218 130,620,646,928
170,175,371,017
113,234,894,008
Investments in associates
6.9.3, 6.9.4
17,721,976,599
15,737,683,178
1,587,550,233
1,587,550,233
Investments in subsidiaries Investments in jointly controlled entities
6.9.4 6.9.3, 6.9.4
14,104,003,823
13,909,641,259
9,913,350,000 584,500,000
7,122,952,585 584,500,000
3,183,523,921 261,012,924,599 62,297,874,119 763,742,443 28,362,587,910 2,125,289,755 141,025,159 3,293,403,202 393,006,351,530 578,380,628,808
12,935,218,422 268,284,912,744 54,014,892,441 752,913,124 27,700,083,434 2,121,472,035 129,882,869 7,062,730,872 402,649,430,378 533,270,077,306
220,057,322,644 62,269,449,284 23,388,044,807 1,816,082,185 1,581,218,270 321,197,517,423 491,372,888,440
10,005,340,984 223,244,394,993 53,905,163,695 22,027,229,518 1,816,082,185 1,896,520,378 322,189,734,571 435,424,628,579
Other long-term investments Property, plant and equipment Work under construction Goodwill Other intangible assets Land awaiting development Deferred tax assets Other non-current assets Total non-current assets TOTAL ASSETS
6.10 6.11 6.12 6.13 6.14 6.15.1 6.16
Notes to the financial statements are an integral part of these financial statements.
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(TRANSLATION) -4ELECTRICITY GENERATING AUTHORITY OF THAILAND AND ITS SUBSIDIARIES STATEMENTS OF FINANCIAL POSITION AS AT DECEMBER 31, 2013
LIABILITIES AND EQUITY CURRENT LIABILITIES Trade accounts payable - others Trade accounts payable - related parties 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 Other current liabilities Derivative liabilities Others Total current liabilities NON-CURRENT LIABILITIES Long-term loans from related parties Long-term loans Deferred tax liabilities Finance lease liabilities 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 OWNERS OF EGAT NON-CONTROLLING INTERESTS TOTAL OWNERS' EQUITY TOTAL LIABILITIES AND OWNERS' EQUITY
Unit : Baht Separate financial statement 2013 2012
Notes
Consolidated financial statement 2013 2012 (Restated)
6.17 6.4.3 6.5
66,230,641,939 7,622,278,324 2,231,343,911 9,657,778,368 9,774,215,414 1,227,648,844 9,466,293,684 5,210,277,256 11,590,864,773 3,106,946
42,012,277,857 8,157,161,024 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 1,394,273
59,240,043,399 15,947,732,882 2,231,343,911 8,849,880,043 989,752,178 9,466,293,684 5,200,132,196 6,480,099,844 1,510,500
34,983,438,682 11,974,052,504 2,768,975,278 11,323,952,243 927,933,843 8,077,994,513 5,368,338,728 4,980,015,965 -
6.8.2
88,349,789 123,102,799,248
4,591,500 39,951,445 91,923,161,205
108,406,788,637
4,591,500 80,409,293,256
6.4.4 6.19 6.15.1
1,186,296,943 71,734,801,073 1,942,951,121 4,951,813 14,051,248,017 2,080,313,567 17,195,843,540 108,196,406,074 231,299,205,322
1,358,280,353 82,072,391,755 2,185,544,715 1,037,602 13,562,464,135 2,047,399,372 15,145,872,091 116,372,990,023 208,296,151,228
64,416,272,901 1,384,625 13,955,724,214 2,080,313,567 16,602,058,760 97,055,754,067 205,462,542,704
57,742,506,324 13,475,643,183 2,047,399,372 14,503,747,639 87,769,296,518 168,178,589,774
9,001,977,817 474,767,280
9,064,310,580 474,767,280
9,001,977,817 474,767,280
9,064,310,580 474,767,280
80,186,366,913 224,710,045,449 1,554,899,904
80,186,366,913 203,428,380,429 1,714,915,271
80,186,366,913 197,685,039,974 (1,437,806,248)
80,186,366,913 178,958,400,280 (1,437,806,248)
315,928,057,363 31,153,366,123 347,081,423,486 578,380,628,808
294,868,740,473 30,105,185,605 324,973,926,078 533,270,077,306
285,910,345,736 285,910,345,736 491,372,888,440
267,246,038,805 267,246,038,805 435,424,628,579
6.18 6.19
6.20 6.21 6.22
6.23
Notes to the financial statements are an integral part of these financial statements. (signed) Soonchai Kumnoonsate (Mr. Soonchai Kumnoonsate) Director and Governor
(signed) Poonsuk Tochanakarn (Mr. Poonsuk Tochanakarn) Deputy Governor - Account and Finance
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(TRANSLATION) -5ELECTRICITY GENERATING AUTHORITY OF THAILAND AND ITS SUBSIDIARIES STATEMENTS OF INCOME FOR THE YEAR ENDED DECEMBER 31, 2013 Notes
Consolidated financial statement Jan 1 - Dec 31, 13 Jan 1 - Dec 31, 12 (Restated)
Unit : Baht Separate financial statement Jan 1 - Dec 31, 13 Jan 1 - Dec 31, 12
REVENUES Revenue from electric energy sales Revenue from sales of other goods and services
6.24
Total revenue from sales and services
512,820,461,091
486,243,700,769
510,178,670,654
482,675,345,412
24,092,877,109
26,748,195,076
26,046,692,421
30,376,199,254
536,913,338,200
512,991,895,845
536,225,363,075
513,051,544,666
COST OF SALES Cost of electric energy sales
6.25
456,479,007,849
430,191,419,362
461,444,789,115
434,921,195,187
Cost of sales of other goods and services
6.26
22,179,830,145
25,311,681,698
24,317,549,826
29,235,554,618
478,658,837,994
455,503,101,060
485,762,338,941
464,156,749,805
58,254,500,206
57,488,794,785
50,463,024,134
48,894,794,861
Total cost of sales and services GROSS PROFIT OTHER REVENUES
6.27
INCOME BEFORE EXPENSES
4,774,197,184
6,114,568,329
5,135,814,857
4,666,323,301
63,028,697,390
63,603,363,114
55,598,838,991
53,561,118,162
143,546,015
131,852,220
141,543,687
130,072,296
16,006,773,493
17,568,480,611
14,036,488,965
15,907,624,928
240,180,973
96,226,083
894,553,145
198,695,224
16,390,500,481
17,796,558,914
15,072,585,797
16,236,392,448
SELLING EXPENSES ADMINISTRATIVE EXPENSES OTHER EXPENSES
6.28
TOTAL EXPENSES FINANCE COSTS
6.30
INCOME BEFORE SHARE OF PROFIT FROM INVESTMENTS SHARE OF PROFIT FROM INVESTMENTS IN ASSOCIATES
4,416,805,820
5,343,212,630
2,739,436,078
2,899,370,245
42,221,391,089
40,463,591,570
37,786,817,116
34,425,355,469
2,057,685,427
2,992,828,855
-
-
746,653,720
768,896,690
-
-
45,025,730,236
44,225,317,115
1,293,733,237
887,235,560
43,731,996,999
43,338,081,555
37,786,817,116
34,425,355,469
40,341,842,442
38,857,934,775
37,786,817,116
34,425,355,469
6.29
SHARE OF PROFIT FROM INVESTMENTS IN JOINTLY CONTROLLED ENTITIES INCOME BEFORE INCOME TAXES INCOME TAXES
6.15.2
INCOME FOR THE YEAR
37,786,817,116
34,425,355,469
-
-
ATTRIBUTABLE TO: OWNERS OF EGAT NON-CONTROLLING INTERESTS
3,390,154,557
4,480,146,780
43,731,996,999
43,338,081,555
37,786,817,116
34,425,355,469
Notes to the financial statements are an integral part of these financial statements.
(signed) Soonchai Kumnoonsate (Mr. Soonchai Kumnoonsate) Director and Governor
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(signed) Poonsuk Tochanakarn (Mr. Poonsuk Tochanakarn) Deputy Governor - Account and Finance
(TRANSLATION) -6ELECTRICITY GENERATING AUTHORITY OF THAILAND AND ITS SUBSIDIARIES STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEAR ENDED DECEMBER 31, 2013 Notes
INCOME FOR THE YEAR
Consolidated financial statement Jan 1 - Dec 31, 13 Jan 1 - Dec 31, 12 (Restated)
Unit : Baht Separate financial statement Jan 1 - Dec 31, 13 Jan 1 - Dec 31, 12
43,731,996,999
43,338,081,555
37,786,817,116
34,425,355,469
(1,356,016,962)
(45,997,970)
-
-
176,695,607
698,667,109
-
-
5,813,383
(1,437,806,248)
-
93,635,107
(99,762,538)
-
-
344,037,593
193,774,396
-
-
(735,835,272)
(691,125,251)
-
42,996,161,727
42,646,956,304
37,786,817,116
32,987,549,221
40,181,827,075
37,872,828,590
37,786,817,116
32,987,549,221
2,814,334,652
4,774,127,714
42,996,161,727
42,646,956,304
OTHER COMPREHENSIVE INCOME (LOSS) Exchange rate differences from currency translation Available-for-sale financial assets Actuarial gain (losses)
6.20
Income taxes of other comprehensive gain (loss) of subsidiaries Share of other comprehensive gain of associates
(1,437,806,248)
OTHER COMPREHENSIVE LOSS FOR THE YEAR, NET OF TAXES TOTAL COMPREHENSIVE INCOME FOR THE YEAR
(1,437,806,248)
ATTRIBUTABLE TO: OWNERS OF EGAT NON-CONTROLLING INTERESTS
37,786,817,116
32,987,549,221
Notes to the financial statements are an integral part of these financial statements.
(signed) Soonchai Kumnoonsate (Mr. Soonchai Kumnoonsate) Director and Governor
(signed) Poonsuk Tochanakarn (Mr. Poonsuk Tochanakarn) Deputy Governor - Account and Finance
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6.18
6.23
5
6.18
474,767,280
-
-
9,001,977,817
-
474,767,280 474,767,280 -
9,064,310,580 9,064,310,580 (62,332,763) -
474,767,280
-
9,064,310,580
-
-
474,767,280 -
9,126,643,343 (62,332,763) -
6.9.5.1 6.23 -
474,767,280 474,767,280
9,126,643,343 9,126,643,343
5
Notes to the financial statements are an integral part of these financial statements.
Changes in owners' equity for the year Dividends paid Total comprehensive income (loss) 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 Balance as at January 1, 2013 - adjusted Depreciation of assets for irrigation Additional paid-up share Increase in investments of non-controlling interests 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)
Changes in owners' equity for the year Additional investments from subsidiaries Dividends paid Total comprehensive income (loss) for the year Balance as at December 31, 2012
Balance as at January 1, 2012 (Before adjustment) Cumulative effect of the changes in accounting policies Balance as at January 1, 2012 as previously reported Cumulative effect of the changes in accounting policies and adjustment Balance as at January 1, 2012 - adjusted Depreciation of assets for irrigation Share received in advance of subsidiaries Remittance to the Ministry of Finance Increase of the year 2011 The year 2012 (Jan 1 - Jun 30, 2012) Provision for remittance to the Ministry of Finance The year 2012 (Jul 1 - Dec 31, 2012)
Surplus from royalty on state property service
Contribution from the government
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 80,186,366,913
40,341,842,442 224,710,045,449
(9,466,293,684) (19,060,177,422)
(4,005,487) (9,589,878,251)
203,803,127,409 (374,746,980) 203,428,380,429 -
38,857,934,775 203,428,380,429
(8,077,994,513) (17,331,310,039)
(315,526) (9,253,000,000)
(441,010,061) 181,901,755,693 -
182,338,845,049 3,920,705 182,342,765,754
Retained earnings appropriated unappropriated
(628,305,751) (703,709,471)
-
-
(75,403,720) (75,403,720) -
(10,581,391) (75,403,720)
-
-
(64,822,329) -
79,500,971 354,603,105
-
-
275,102,134 275,102,134 -
314,400,199 275,102,134
-
-
(39,298,065) -
Exchange rate Available-for-sale differences financial assets from currency translation (65,168,738) (39,298,065) 346,409 (64,822,329) (39,298,065)
2,616,022 (1,435,190,226)
-
-
(1,437,806,248) (1,437,806,248) -
(1,437,806,248) (1,437,806,248)
-
-
-
2,886,909,938
-
-
2,886,909,938 2,886,909,938 -
2,886,909,938
-
-
2,886,909,938 -
42,135,798 -
-
-
(42,135,798) (42,135,798) -
(44,893,141) (42,135,798)
-
-
2,757,343 -
Other components of equity Other comprehensive income (loss) Actuarial Surplus on Income taxes gain (losses) subsidiaries and for other associates using comprehensive equity method gain (loss) 2,886,909,938 2,757,343 2,886,909,938 2,757,343
Total equity attributable to EGAT
Consolidated financial statement
ELECTRICITY GENERATING AUTHORITY OF THAILAND AND ITS SUBSIDIARIES STATEMENTS OF CHANGES IN OWNERS' EQUITY FOR THE YEAR ENDED DECEMBER 31, 2013
(TRANSLATION) -7-
344,037,593 452,286,558
-
-
565,187,751 (456,938,786) 108,248,965 -
193,774,396 108,248,965
-
-
(302,228,895) (85,525,431) -
Share of other comprehensive gain (loss) of associates 216,703,464 216,703,464
(160,015,367) 1,554,899,904
-
-
2,171,854,057 (456,938,786) 1,714,915,271 -
(985,106,185) 1,714,915,271
-
-
(302,228,895) 2,700,021,456 -
3,001,903,942 346,409 3,002,250,351
Total other components of owners' equity
40,181,827,075 315,928,057,363
(9,466,293,684) (19,060,177,422)
(4,005,487) (9,589,878,251)
295,700,426,239 (831,685,766) 294,868,740,473 (62,332,763) -
37,872,828,590 294,868,740,473
(8,077,994,513) (17,331,310,039)
(315,526) (9,253,000,000)
(743,238,956) 274,389,554,685 (62,332,763) -
275,128,526,527 4,267,114 275,132,793,641
Total EGAT's owners' equity
(1,810,325,000) 2,814,334,652 31,153,366,123
-
-
30,105,185,605 30,105,185,605 29,109,675 15,061,191
20,182,430 (1,794,375,000) 4,774,127,714 30,105,185,605
-
-
27,070,318,851 34,931,610
27,201,246,649 (130,927,798) 27,070,318,851
Non-controlling interests
(1,810,325,000) 42,996,161,727 347,081,423,486
(9,466,293,684) (19,060,177,422)
(4,005,487) (9,589,878,251)
325,805,611,844 (831,685,766) 324,973,926,078 (62,332,763) 29,109,675 15,061,191
20,182,430 (1,794,375,000) 42,646,956,304 324,973,926,078
(8,077,994,513) (17,331,310,039)
(315,526) (9,253,000,000)
(743,238,956) 301,459,873,536 (62,332,763) 34,931,610
302,329,773,176 (126,660,684) 302,203,112,492
Total owners' equity
Unit : Baht
147
6.23 6.18
6.18
6.23
474,767,280
80,186,366,913
-
-
9,001,977,817
-
80,186,366,913 -
-
474,767,280 -
80,186,366,913
-
474,767,280
-
80,186,366,913 -
37,786,817,116 197,685,039,974
(9,466,293,684) (19,060,177,422)
(4,005,487) (9,589,878,251)
178,958,400,280 -
34,425,355,469 178,958,400,280
(8,077,994,513) (17,331,310,039)
(315,526) (9,253,000,000)
161,864,354,850 -
Retained earnings appropriated unappropriated
-
474,767,280 -
Surplus from royalty on state property service
-
9,064,310,580 (62,332,763)
9,064,310,580
-
-
9,126,643,343 (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 Total comprehensive income for the year Balance as at December 31, 2013
Balance as at January 1, 2013 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)
Changes in owners' equity for the year Total comprehensive income (loss) for the year Balance as at December 31, 2012
Balance as at January 1, 2012 Depreciation of assets for irrigation Remittance to the Ministry of Finance Increase of the year 2011 The year 2012 (Jan 1 - Jun 30, 2012) Provision for remittance to the Ministry of Finance The year 2012 (Jul 1 - Dec 31, 2012)
Notes
ELECTRICITY GENERATING AUTHORITY OF THAILAND AND ITS SUBSIDIARIES STATEMENTS OF CHANGES IN OWNERS' EQUITY FOR THE YEAR ENDED DECEMBER 31, 2013 Separate financial statement
(TRANSLATION) -8-
(1,437,806,248)
-
-
(1,437,806,248) -
(1,437,806,248) (1,437,806,248)
-
-
-
Total other components of owners' equity Other comprehensive income Acturial losses
37,786,817,116 285,910,345,736
(9,466,293,684) (19,060,177,422)
(4,005,487) (9,589,878,251)
267,246,038,805 (62,332,763)
32,987,549,221 267,246,038,805
(8,077,994,513) (17,331,310,039)
(315,526) (9,253,000,000)
251,652,132,386 (62,332,763)
Unit : Baht Total owners' equity
(TRANSLATION) -9ELECTRICITY GENERATING AUTHORITY OF THAILAND AND ITS SUBSIDIARIES STATEMENTS OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2013 Notes CASH FLOWS FROM OPERATING ACTIVITIES Net income of EGAT Adjustments to reconcile net income to net cash inflow (outflow) from operating activities Depreciation Donation assets Donated assets Amortization of land rights and project development rights Amortization of computer software rights Amortization of royalty on state property service Amortization of gas pipe system rights Amortization of transmission system connection rights Amortization of deferred loan fees Allowance for loss on impairment of investments Amortization of deferred charges of the lignite mine Doubtful debts Bad debts Allowance for obsolescence on materials and supplies Gain on the power purchase agreement cancellation Gain on sale of long-term investments Loss on revaluation of investments in trading securities. Loss (profit) on disposal of assets Revenue from deferred income Employee benefit obligations Loss (gain) on foreign exchange Gain on changes in the fair value of derivatives Dividends received from associates Dividends received from subsidiary Dividends received from other investments Share of profit from associated company Share of profit from jointly controlled entity Net income attributable to non-controlling interests Interest income Interest expenses Income taxes Net income from operating activities before changes in operating assets and liabilities 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 Other current liabilities Accrued expenses Other non - current liabilities Deferred tax liabilities Provision liabilities for mine reclamation
6.13 6.13 6.13 6.16
6.22
6.9.4 6.9.4
6.15.2
6.16
CCashh receipts i ffrom operating i Cash receipts on interest Cash payment on income taxes Net cash from operating activities
Consolidated financial statement Jan 1 - Dec 31, 13 Jan 1 - Dec 31, 12 40,341,842,442
38,857,934,775
37,786,817,116
34,425,355,469
25,393,555,332 (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) 383,252,090 (22,966,233) (104,291,021) (220,902,845) (2,057,685,427) (746,653,719) 3,390,154,557 (2,017,920,503) 4,210,822,459 1,293,733,237 76,335,622,390
24,653,281,931 (42,500) 5,460,443 328,817,591 220,446,078 6,337,356 312,449 3,558,250 (88,394,022) 5,408,304,116 (2,046,918) 111,270 287,043,620 (1,069,442,446) (783,678,571) 61,472,685 (526,711,566) (143,414,710) (634,426,835) (150,902,003) (188,314,482) (2,992,828,855) (768,896,690) 4,480,146,780 (1,990,035,673) 5,425,184,044 887,235,560 71,286,511,677
22,105,153,294 (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) 371,933,217 682,223,523 (104,291,021) (802,641,972) (1,481,175,000) (1,544,696,836) 2,737,707,515 65,969,365,497
21,269,620,278 (42,500) 5,460,443 896,061 214,829,489 6,337,356 5,408,304,116 (2,046,918) 111,270 345,499,315 (13,367,290) (526,711,566) (149,555,419) 163,941,825 (150,902,003) (735,755,141) (1,468,125,000) (1,378,098,739) 2,893,013,089 60,308,764,135
(3,123,569,171) (914,462,857) (703,261,756) (38,834,223) 3,694,638,205 (11,142,290) (5,955,412,355)
(16,855,424,157) (764,576,621) (823,019,076) 43,002,448 (743,434,469) 59,745,241 (5,331,127,445)
(3,235,123,007) (634,526,922) (303,135,366) 240,612,643 (5,955,412,355)
(16,857,815,613) (933,566,526) (763,747,489) (143,473,329) (5,331,127,445)
23,200,355,269 (2,247,655,746) 161,138,358 249,253,946 (1,608,127,404) (242,593,594) 37,865,259 12,498,191,641 88,833,814,031 88 833 814 031 1,070,923,689 (1,393,986,295) 88,510,751,425
14,573,733,346 (407,754,672) (18,277,658) 1,567,431,000 (368,285,755) (760,473,056) 70,101,832 (9,758,359,042) 61 528 152 635 61,528,152,635 912,699,761 (1,642,366,367) 60,798,486,029
27,747,158,983 (6,136,063,372) (168,332,407) (33,053,999) 37,865,259 11,559,989,457 77 529 354 954 77,529,354,954 1,042,112,353 78,571,467,307
13,622,333,229 (3,285,089,478) 842,574,569 (276,642,152) 70,101,832 (13,056,452,402) 47,252,311,733 47 252 311 733 909,251,442 48,161,563,175
Notes to the financial statements are an integral part of these financial statements.
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(TRANSLATION) - 10 ELECTRICITY GENERATING AUTHORITY OF THAILAND AND ITS SUBSIDIARIES STATEMENTS OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2013 Notes 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 a Cash payment on interest for work under construction Cash receipts on deferred income Cash payment on investments in subsidiaries 6.9.5.2 Cash payment on investments in associates Cash payment on investments in jointly controlled entity Cash payment on investments in other entity Cash receipt from disposal investments in jointly controlled entity Cash receipts from compensation of the power purchase agreement cancellation Cash receipts on interest Dividends received from associates 6.9.3 , 6.9.4 Dividends received from subsidiary 6.9.4 Dividends received from jointly controlled entities 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 Cash payment of long - term loans Cash payment on interest Cash receipts (payment) on finance lease liabilities Dividends paid to non-controlling interests of subsidiary Dividend paid to the Company's shareholders Net cash used in financing activities EFFECT FROM FOREIGN EXCHANGE RATE IN CASH AND CASH EQUIVALENTS NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR 6.1
Consolidated financial statement Jan 1 - Dec 31, 13 Jan 1 - Dec 31, 12
Unit : Baht Separate financial statement Jan 1 - Dec 31, 13 Jan 1 - Dec 31, 12
(23,248,282,391) 10,044,490,984 172,891,244
(687,859,670) (9,798,928,380) 83,494,670
(24,973,301,124) 10,005,340,984 166,714,464
2,033,473,118 (10,005,340,984) 59,858,568
(23,724,844,591) (571,798,570) 690,328,545 (367,082,771) (133,520,000) (11,643,851) 20,800,000
(30,759,146,477) (283,944,559) 1,492,402,112 (342,770,299) (507,020,830) -
(24,259,720,669) (571,798,570) 690,328,545 (2,790,397,415) -
(29,799,865,901) (281,844,538) 1,492,402,112 (70,000,000) -
795,130,139 802,641,972 977,625,453 220,902,844 (34,332,360,993)
3,167,366,428 743,609,820 735,755,141 774,462,805 188,314,481 (35,194,264,758)
508,009,323 802,641,972 1,481,175,000 (38,941,007,490)
375,313,301 735,755,141 1,468,125,000 (33,992,124,183)
(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) (22,510,275,718) (4,589,464,918) 793,929 (1,810,325,000) (3,290,737,147) (27,348,507,286)
(16,297,000,000) 14,540,000,000 (13,640,000,000) 2,300,000,000 (500,000,000) 11,147,350,000 34,931,610 (23,751,963,072) (5,379,010,951) (1,795,698) (1,794,375,000) (3,262,002,373) (36,603,865,484)
(17,671,878,251) 13,000,000,000 (4,964,753,468) (2,677,809,423) 3,021,000 (12,311,420,142)
(16,297,000,000) 11,000,000,000 (14,640,572,134) (2,923,285,965) (22,860,858,099)
(63,436,409) 26,766,446,737 40,312,353,629 67,078,800,366
(26,830,065) (11,026,474,278) 51,338,827,907 40,312,353,629
8,844,503 27,327,884,178 31,843,250,055 59,171,134,233
(2,538,362) (8,693,957,469) 40,537,207,524 31,843,250,055
Notes to the financial statements are an integral part of these financial statements.
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ELECTRICITY GENERATING AUTHORITY OF THAILAND AND ITS SUBSIDIARIES STATEMENTS OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2013
Notes to the Statements of Cash Flows a. Property, Plant and Equipment, Work under Construction and Intangible Assets Consolidated During the year 2013, EGAT and its subsidiaries purchased property, plant and equipment, work under construction and intangible assets which total costs are Baht 27,466.45 million. The purchasing were cash paid amounting to Baht 23,724.84 million and for the remaining unpaid amounting to Baht 3,741.61 million were accounts payable. During the year 2012, EGAT and its subsidiaries purchased property, plant and equipment, work under construction and intangible assets which total costs are Baht 36,829.35 million. The purchasing were cash paid amounting to Baht 30,759.15 million and for the remaining unpaid amounting to Baht 6,070.20 million were accounts payable. Separate 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. During the year 2012, EGAT purchased property, plant and equipment, work under construction and intangible assets which total costs are Baht 35,870.07 million. The purchasing were cash paid amounting to Baht 29,799.87 million and for the remaining unpaid amounting to Baht 6,070.20 million were accounts payable.
Notes to the financial statements are an integral part of these financial statements.
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ELECTRICITY GENERATING AUTHORITY OF THAILAND AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2013
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 generally accepted accounting principles under the Accounting Act, B.E. 2543 being those Thai accounting standards endorsed 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 accounting principles may differ, in certain aspects, from generally accepted accounting principles used in other countries. So the financial statements were prepared, have not intend to present the financial position, the results of operations and cash flows in accordance with generally accepted accounting
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principles used in other countries. Consequently, the 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. The mentioned financial statements have been prepared under the historical cost convention, except explained otherwise as disclosed in Note 3. The separate financial statements present the financial position and the results of operations of all EGAT’s businesses, which include assets, liabilities and equity of Staff Aid Fund, Welfare Loan Fund, Land and Housing Loan Fund. The consolidated financial statements include the EGAT’s financial statements, its three subsidiaries and a jointly controlled entity over which EGAT has shared control. In the consolidated financial statements, the subsidiaries are recorded by sum up on a line-by-line basis with similar items beside the jointly controlled entity is accounted for by proportionate of EGAT. Significant inter-company transactions and balances 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 three months or less which EGAT has fully accessed without commitment. 3.2 Trade Accounts Receivable and Other Accounts Receivable Accounts receivable are stated at net realizable value. The allowance for doubtful accounts is assessed by reference to the estimated losses arising from irrecoverable debts, exclusive of government
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agencies and state enterprises, which have been based on historical results of collection and the 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: 3.2.1 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 3.2.2 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. 3.3 Materials and Supplies 3.3.1 Fuel oil for power plant is stated at the lower of moving average cost or net realizable value. 3.3.2 Lignite is stated at the lower of moving average cost or net realizable value. 3.3.3 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, large-sized reserved spare parts for mine equipment, which has useful life over 1 year, is stated in large-sized spare parts for mine equipment under property, plant and equipment item. 3.3.4 General materials and supplies are stated at moving average cost less allowance for obsolescence of stocks designed, which have not moved for six months and above. The allowance is calculated at the following rates:
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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. 3.4 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. 3.5 Investments in Associates, Subsidiaries and Jointly Controlled Entities 3.5.1 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. A list of associates of EGAT and its subsidiaries is set out in Note 6.9.1 and 6.9.2 respectively. 3.5.2 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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3.5.3 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. 3.6 Investments in financial securities Investments in financial securities of EGAT comprise of held-to-maturity investments and availablefor-sale securities investments. 3.6.1 Held-to-maturity investments are investments with maturity period. EGAT 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. 3.6.2 Available-for-sale securities investments are investments held with no identifiable time and may sell for enhancing liquidity or when interests rate change. 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. 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.
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3.7 Property, Plant and Equipment Property, Plant and equipment are stated at cost on the date of acquisition or completion of construction less accumulated depreciation. 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 3 years - 40 years Reservoirs and dams 6 years 8 months - 75 years Power plants 5 years - 30 years Equipment for power plants 6 years 3 months - 25 years Control system 3 years - 25 years Transmission system 3 years - 40 years Communication system 5 years - 25 years Coal handling system 10 years - 25 years Machinery 5 years - 10 years Large-sized spare parts for mine equipment 8 years Vehicles 5 years - 12 years Other materials and supplies 3 years - 10 years The estimate of useful lives for power plants of subsidiaries is stated according to the power purchasing 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 or 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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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. 3.8 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. 3.9 Intangible Assets 3.9.1 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. 3.9.2 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. 3.9.3 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
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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. 3.9.4 Gas piped system rights Gas piped system rights are amortized based on a straight - line method over the expected useful lives in 20 years. 3.9.5 Transmission system connection rights Transmission system connection rights are amortized based on a straight - line method over the expected useful lives in 8 years. 3.9.6 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. 3.10 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. 3.11 Deferred Charges of the Lignite Mine 3.11.1 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 is recorded as the deferred charges. However, the accumulated of overburden removal costs is not more than the deferred charges.
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3.11.2 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 the quantity of lignite extracted during the year bears to the total economically mineable reserves. 3.11.3 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. 3.11.4 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. 3.12 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. 3.13 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. 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.
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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. In the year 2012, EGAT hires actuary consultants to revise assumptions and the obligation estimation based on new actuarial technique. 3.14 Provision Liabilities for Mine Reclamation EGAT established provision liabilities for mine reclamation at the lignite mine in Mae Moh District, Lampang Province, which will arise in the future. According to the Mining Act, EGAT is obliged to carry out reclamation work when the mine is closed and because of the certainty of its occurrence amounts set aside for this work are recognized as provisions. Such provisions are recognized as expense in EGAT's statements of income and are calculated by taking that proportion of the total estimated cost of reclamation work that the quantity of lignite extracted during the year bears to the total economically mineable reserves. The actual cost is deducted from provision liabilities. 3.15 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
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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. Interest earned from the assets of the fund is recognized as revenue in EGAT’s statements of income. 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. 3.16 Deferred Income 3.16.1 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. 3.16.2 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. 3.17 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.
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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. When ERC has a resolution on the compensation to be included in the tariff structure, EGAT will recognized that compensation as electricity revenue. 3.18 Revenue from Sales of Other Goods and Services 3.18.1 Revenue from sales of other goods other than the revenue from electric energy sales comprise of the revenue from fuel providing to affiliates of EGAT and revenue from sales of other goods such as 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. 3.18.2 Revenue from services comprise of revenue from running the machinery and power plant maintenance services, communications system and telecommunication services, etc. It is recognized as income by percentage of completion method at the statements of financial position date. 3.19 Interest Income Interest income is recognized on a time proportion basis and effective rate of return on assets. 3.20 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. 3.21 Related Parties Related parties refer to individuals or enterprises, that 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. Directors’ remunerations comprised of meeting remunerations and bonuses. Management who has significant influence’s remunerations comprised of short-term benefits are salaries, bonuses, other short-term employee benefits, post-employment benefits and other long-term employee benefits.
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In considering each possible related parties relationship, EGAT attends to the substance of the relationship and not merely the legal form. 3.22 Financial Instruments Financial assets presented in the financial statements include cash and cash equivalents, temporary investments, trade accounts receivable - others - net, 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. 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. 3.23 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.
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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, 2014 ¡Thai Accounting Standard No.1 (Revised 2012) Presentation of Financial Statements ¡Thai Accounting Standard No.7 (Revised 2012) Statement of Cash Flows ¡Thai Accounting Standard No.12 (Revised 2012) Income Taxes ¡Thai Accounting Standard No.17 (Revised 2012) Leases ¡Thai Accounting Standard No.18 (Revised 2012) Revenue ¡Thai Accounting Standard No.19 (Revised 2012) Employee Benefits ¡Thai Accounting Standard No.21 (Revised 2012) The Effects of Changes in Foreign Exchange Rates ¡Thai Accounting Standard No.24 (Revised 2012) Related Party Disclosures ¡Thai Accounting Standard No.28 (Revised 2012) Investments in Associates ¡Thai Accounting Standard No.31 (Revised 2012) Interests in Joint Ventures ¡Thai Accounting Standard No.34 (Revised 2012) Interim Financial Reporting ¡Thai Accounting Standard No.36 (Revised 2012) Impairment of Assets ¡Thai Accounting Standard No.38 (Revised 2012) Intangible Assets ¡Thai Financial Reporting Standard No.2 Share-based Payment (Revised 2012) ¡Thai Financial Reporting Standard No.3 Business Combinations (Revised 2012) ¡Thai Financial Reporting Standard No.5 Non-current Assets Held for Sale and (Revised 2012) Discontinued Operations ¡Thai Financial Reporting Standard No.8 Operating Segments (Revised 2012) ¡Thai Standing Interpretation Committee No.15 Operating Leases - Incentives ¡Thai Standing Interpretation Committee No.27 Evaluating the Substance of Transactions Involving the Legal Form of a Lease ¡Thai Standing Interpretation Committee No.29 Service Concession Arrangements: Disclosures ¡Thai Standing Interpretation Committee No.32 Intangible Assets - Web Site Costs ¡Thai Financial Reporting Interpretation No.1 Changes in Existing Decommissioning, Restoration and Similar Liabilities
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Thai Financial Reporting Interpretation No.4
¡
Thai Financial Reporting Interpretation No.5
¡
Thai Financial Reporting Interpretation No.7
Thai Financial Reporting Interpretation No.10 ¡Thai Financial Reporting Interpretation No.12 ¡Thai Financial Reporting Interpretation No.13 ¡Thai Financial Reporting Interpretation No.17 ¡Thai Financial Reporting Interpretation No.18 ¡
Determining Whether an Arrangement Contains a Lease Rights to Interests arising from Decommissioning, Restoration and Environmental Rehabilitation Funds Applying the Restatement Approach under TAS 29 Financial Reporting in Hyperinflationary Economies Interim Financial Reporting and Impairment Service Concession Arrangements Customer Loyalty Programmes Distributions of Non-cash Assets to Owners Transfers of Assets from Customers
Effective for accounting periods on beginning or after January 1, 2016 ¡Thai Financial Reporting Standard No.4 Insurance Contracts 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 Financial Reporting Interpretations No.4 and Thai Accounting Standard Interpretations No.27 that was during consultant hire and assessing the impact on the financial statements. 5. The Effects on Financial Statements of EGAT Subsidiaries and Associates’s Financial Statements Adjustment Adjustment of financial statements and reclassification EGAT had reclassified the consolidated and separate financial statements. And EGAT had adjusted the consolidated financial statements and reclassified some items from the fact that EGAT’s associate had adjusted share of income from investments in associate that affect from the adoption of Accounting Standards No. 12 Income Taxes and Accounting Standard No. 21 (revised 2009) The Effects of Changes in Foreign Exchange Rates. In addition subsidiaries and jointly controlled entities have been reclassified to consistent with the presentation in the financial statements for the year ended December 31, 2013.
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The Effects of statement of financial position as at December 31, 2012, statements of income and statements of comprehensive income for the year ended December 31, 2012 and balance brought forward of statement of change in owners’ equity for the year ended December 31, 2012 are summarized as follows: Unit : Million Baht Consolidated financial statement Before reclassified and restated
Reclassified
Statements of financial position as at December 31, 2012 Cash and cash equivalents Temporary investments Trade accounts receivable - others Trade accounts receivable - related parties Other accounts receivable Investments in associates Other current assets-others Other non-current assets Trade accounts payable - others Other accounts payable Other current liabilities-others Retained earnings-unappropriated Other componenets of owners' equity
40,644.20 13,819.28 47,769.37 2,164.25 7,287.72 16,569.37 43.36 6,750.88 42,006.77 12,216.06 15,165.87 203,803.13 2,171.85
(331.85) (50.00) 49.76 32.61 (82.37) 50.00 331.85 5.51 (5.51) -
(831.69) (20.00) (20.00) (374.75) (456.94)
40,312.35 13,769.28 47,819.13 2,196.86 7,205.35 15,737.68 93.36 7,062.73 42,012.28 12,210.55 15,145.87 203,428.38 1,714.91
Statements of changes in owners' equity as at December 31, 2012 Retained earnings-unappropriated Other componenets of owners' equity Total owners' equity
203,803.13 2,171.85 295,700.43
-
(374.75) (456.94) (831.69)
203,428.38 1,714.91 294,868.74
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Restated
As reclassified and restated
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Unit : Million Baht Consolidated financial statement As reclassified and Before reclassified Restated restated and restated Statements of income for the year ended December 31, 2012 Revenues Share of profit from investments in associates Income for the year Income for the year
2,926.57
66.26
2,992.83
43,271.82
66.26
43,338.08
Statements of comprehensive income for the year ended December 31, 2012 Share of other comprehensive income of associates Other comprehensive income (loss) for the year net of taxes
348.48
(154.71)
193.77
(536.42)
(154.71)
(691.13)
Statements of changes in owners' equity as at January 1, 2012 Retained earnings-unappropriated Exchange rate differences from currency translation Non-controlling interests Total owners' equity
182,338.85 (65.17) 27,201.25 302,329.77
3.92 0.35 (130.93) (126.66)
182,342.77 (64.82) 27,070.32 302,203.11 Unit : Million Baht
Separate financial statement As reclassified and Before reclassified Restated restated and restated Statements of financial position as at December 31, 2012 Cash and cash equivalents Trade accounts receivable - others Trade accounts receivable - related parties Other accounts receivable Other non-current assets
32,175.10 47,303.49 2,396.08 6,700.27 1,564.67
(331.85) 49.76 113.67 (163.43) 331.85
31,843.25 47,353.25 2,509.75 6,536.84 1,896.52
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6. Supplementary Information 6.1 Cash and Cash Equivalents
Unit : Million Baht Consolidated financial statement
Dec 31, 13 Cash on hand 9.38 Cash in banks current and saving accounts 35,893.08 Fixed deposits not more than 3 months 23,358.11 Government bonds not more than 3 months 3,998.23 Fixed deposit receipts 3,820.00 Bills of exchange Total 67,078.80
Dec 31, 12 8.40 37,344.86 38.50 2,790.59 130.00 40,312.35
Separate financial statement
Dec 31, 13 8.39 33,154.27 22,010.24 3,998.23 59,171.13
6.2 Temporary Investments
Unit : Million Baht Consolidated financial statement
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
Dec 31, 12 7.82 31,835.43 31,843.25
Dec 31, 12
Separate financial statement
Dec 31, 13
Dec 31, 12
35,132.06 1,400.00 50.00 41.00 445.63
8,097.68 5,309.00 50.00 312.60
33,020.56 -
8,047.26 -
37,068.69
13,769.28
33,020.56
8,047.26
Temporary investments of EGAT are investment in fixed deposits more than 3 months but not more than 12 months. 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.
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6.3 Trade Accounts Receivable - Others
Receivable from electric energy sales Metropolitan Electricity Authority Provincial Electricity Authority Others Services and others receivable Total Less : Allowance for doubful accounts Balance
Consolidated financial statement Dec 31, 13 Dec 31, 12 24,273.44 27,050.93 3,789.23 55,113.60 826.30 55,939.90 (48.28) 55,891.62
14,225.83 30,510.22 2,475.14 47,211.19 655.76 47,866.95 (47.82) 47,819.13
Unit : Million Baht Separate financial statement Dec 31, 13 Dec 31, 12 24,273.44 27,050.93 3,756.39 55,080.76 261.85 55,342.61 (48.28) 55,294.33
14,225.83 30,510.22 2,441.01 47,177.06 224.01 47,401.07 (47.82) 47,353.25
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
Unit: Million Baht Consolidated financial statement Dec 31,13 Dec 31, 12 Electric Service and Total energy sales others 54,840.00 756.69 55,596.69 47,811.13 273.60 18.49 292.09 5.00 55,113.60
0.07 51.05 826.30
0.07 51.05 55,939.90
0.11 50.71 47,866.95
55,113.60
(48.28) 778.02
(48.28) 55,891.62
(47.82) 47,819.13
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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
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Electric energy sales 54,807.16 273.60
Unit: Million Baht Separate financial statement Dec 31,13 Dec 31, 12 Service and Total others 192.24 54,999.40 47,345.25 18.49 292.09 5.00
55,080.76
0.07 51.05 261.85
0.07 51.05 55,342.61
0.11 50.71 47,401.07
55,080.76
(48.28) 213.57
(48.28) 55,294.33
(47.82) 47,353.25
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6.4 Related Parties Transactions The companies that have transactions with EGAT as at December 31, 2013 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 Gas Co., Ltd.
Thailand
Subsidiary of Ratchaburi Electricity Generating Holding Plc.
Ratchaburi Energy Co., Ltd.
Thailand
Subsidiary of Ratchaburi Electricity Generating Holding Plc.
RH International Corporation Ltd.
Thailand
Subsidiary of Ratchaburi Electricity Generating Holding Plc.
RATCH-Lao Services Co., Ltd.
Lao PDR
Subsidiary of Ratchaburi Electricity Generating Holding Plc.
RATCH O&M 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
South East Asia Energy 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
Eastern Water Resources Development and Management Plc.
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Related Parties Transactions the details are as follows: 6.4.1 Trade accounts receivable - related parties
Subsidiaries Associated company Jointly controlled entity Related parties Total trade accounts receivable - related parties
Consolidated financial statement Dec 31, 13 Dec 31, 12 691.97 711.14 5.29 9.36 2,390.39 1,476.36 3,087.65
2,196.86
Unit : Million Baht Separate financial statement Dec 31, 13 Dec 31, 12 553.01 332.73 691.97 711.14 8.15 14.41 2,390.39 1,451.48 3,643.52
2,509.76
Trade accounts receivable - related parties can be analyzed by categories and aging schedule as follows: Consolidated financial statement Dec 31, 13 Dec 31, 12 3,087.65 2,196.43 Undue portion 0.43 Overdue not more than 6 months Total trade accounts receivable - related parties 3,087.65 2,196.86
Unit : Million Baht Separate financial statement Dec 31, 13 Dec 31, 12 3,643.52 2,479.94 29.82 3,643.52
2,509.76
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 consist of: Unit : Million Baht Consolidated financial statement Dec 31, 13 Dec 31, 12 Current portion of long-term loans to related parties 62.50 Total 62.50
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6.4.3 Trade accounts payable - related parties
Subsidiaries Associated company Jointly controlled entity Related parties Total trade accounts payable - related parties
Consolidated financial statement Dec 31, 13 Dec 31, 12 1,064.11 820.42 78.01 67.56 6,480.16 7,269.18 7,622.28
8,157.16
Unit : Million Baht Separate financial statement Dec 31, 13 Dec 31, 12 8,283.45 3,780.51 1,064.11 820.42 120.01 103.94 6,480.16 7,269.18 15,947.73
11,974.05
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 consist of: Unit : Million Baht Consolidated financial statement Dec 31, 13 Dec 31, 12 Long-term loans from related parties 1,186.30 1,358.28 1,358.28 Total 1,186.30
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6.4.5 Revenues and expenses - related parties
Unit : Million Baht Consolidated financial statement Separate financial statement Jan 1-Dec 31, 13 Jan 1-Dec 31, 12 Jan 1-Dec 31, 13 Jan 1-Dec 31, 12
Revenues Revenue from electric energy sales Subsidiary Associated company Related parties Revenue from sales of other goods and services Subsidiaries Associated company Jointly controlled entity Related parties Expenses Cost of electric energy sales Subsidiaries Associated company Jointly controlled entity Related parties Cost of sales of other goods and services Subsidiaries Associated company Jointly controlled entity Related parties
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20.71 87.26
7,239.61 56.31 14,062.00
9,318.89 655.55 52,576.17
7,223.80 59.12 13,840.96
14.00 89.01
10,316.73 57.17 14,489.98
12,340.49 555.07 66,992.19
10,326.23 61.27 14,345.04
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190.28 20.71 87.26
155.67 14.00 89.01
2,702.82 7,239.61 86.63 14,062.00
4,299.10 10,316.73 87.96 14,489.98
47,963.67 9,318.89 1,008.54 52,576.17
51,838.47 12,340.49 853.96 66,992.19
2,232.04 7,223.80 90.95 13,840.96
3,939.62 10,326.23 94.26 14,345.04
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6.4.6 Executives' remunerations For the year ended December 31, 2013, 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 Jan 1-Dec 31, 13 Jan 1-Dec 31, 12
Unit : Million Baht Separate financial statement Jan 1-Dec 31, 13 Jan 1-Dec 31, 12
43.64 43.64
47.38 47.38
3.18 3.18
3.81 3.81
200.66
230.99
48.82
56.75
10.97 211.63 255.27
29.50 260.49 307.87
0.94 49.76 52.94
1.33 58.08 61.89
6.5 Accrued Revenue from Electric Energy Sales According to Automatic Tariff Adjustment (Ft) and Deferred Revenue for Electricity Compensation As at January 1, 2013, EGAT has the accrued revenue from electric energy sales according to automatic tariff adjustment (Ft) in the amount of Baht 6,529.90 million. During the year 2013, EGAT has recovered all of accrued Ft revenue. As at September 5, 2013, ERC has approved the Ft estimation of September-December 2013 which was 61.10 satang per unit. Nevertheless EGAT can charge equal to 54.00 satang per unit in such period by absorbs the Ft of Baht 1,566 million temporarily. However, the cost of fuel and electric energy purchased in such period are lower than the estimated Ft calculating formula, As of December 31, 2013, EGAT had accrued Ft revenue of Baht 529.60 million. EGAT had recorded deferred revenue for electricity compensation, which had been presented in current liabilities as at January 1, 2013 in the amount of Baht 2,768.98 million and as at December 31, 2013 in amount of Baht 2,231.34 million. Deferred revenue for electricity compensation had decreased Baht 537.64 million by offset with compensation in amount of Baht 2,247.32 million, while EGAT had received more compensation for the fuel or electric energy from fuel suppliers or other electric energy producers.
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6.6 Other Accounts Receivable
Employee accounts receivable Other accounts receivable Less : Allowance for doubtful accounts Advances and Prepaid Accrued revenues Input tax Balance
Consolidated financial statement Dec 31, 13 Dec 31, 12 161.68 78.69 348.00 (19.68) 2,965.77 316.03 4,792.94 8,481.75
768.31 (17.93) 1,937.16 417.02 3,939.11 7,205.35
6.7 Materials and Supplies
Fuel oil for power plant Lignite stock Spare parts, other materials and supplies Less : Allowance for obsolescence Balance
Consolidated financial statement Dec 31, 13 Dec 31, 12 5,657.40 5,826.34 1,559.32 11,613.04 (5,894.86) 13,103.84
1,521.72 11,077.07 (5,624.27) 12,631.92
Unit : Million Baht Separate financial statement Dec 31, 13 Dec 31, 12 76.33 158.20 219.44 (19.68) 2,643.20 285.94 4,777.63 7,982.86
418.54 (17.93) 1,811.52 289.89 3,876.62 6,536.84
Unit : Million Baht Separate financial statement Dec 31, 13 Dec 31, 12 4,785.72 4,861.56 1,559.32 9,335.19 (5,146.98) 10,533.25
1,521.72 8,942.01 (4,910.65) 10,414.64
6.8 Derivative Assets and Liabilities 6.8.1 Derivative Assets
Unit : Million Baht Consolidated financial statement Separate financial statement Dec 31, 13 Dec 31, 12 Dec 31, 13 Dec 31, 12 0.12 0.12 Foreign currency forward contracts 0.12 Balance 0.12 -
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6.8.2 Derivative liabilities
Cross currency and interest rate swap contracts Balance
Unit : Million Baht Consolidated financial statement Separate financial statement Dec 31, 13 Dec 31, 12 Dec 31, 13 Dec 31, 12 -
4.59 4.59
-
4.59 4.59
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, 13 Dec 31, 12
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
177
(TRANSLATION) - 39 -
6.9.2 Details of subsidiaries, associates and jointly controlled entities : Ratchaburi Electricity Generating Holding Plc. Company
Direct subsidiaries Ratchaburi Electricity Generating Co., Ltd. Ratchaburi Gas Co., Ltd. Ratch Udom Power Co., Ltd. (In liquidation process) Ratchaburi Energy Co., Ltd. RH International Corporation Ltd. RATCH-Lao Services Co., Ltd. RATCH O&M 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. Eastern IPP Co., Ltd. Eastern Power Generation Co., Ltd.
178
A Leader
Country of incorporation/ Nationality
Business
Shareholding (%) Dec 31, 13 Dec 31, 12
Thailand Thailand Thailand
Generation and supply of electricity Investment in electricity business Investment in electricity business
100 100 100
100 100 100
Thailand
Power plant development and operation and investment in electricity business Investment in electricity business Operation and maintenance services Operation and maintenance services
100 100 100 100
100 100 100 100
100
100
100
100
100 55.18 55.18
100 55.18 55.18
80 100 100 100
80 -
Thailand Lao PDR Thailand Thailand Mauritius Singapore Thailand Thailand Australia Thailand Thailand Thailand
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
of Clean Energy Technology
(TRANSLATION) - 40 -
Company
Associates First Korat Wind Co., Ltd. K.R. Two Co., Ltd.
Country of incorporation/ Nationality
Business
Shareholding (%) Dec 31, 13 Dec 31, 12
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
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
51
Ayudhya Power Co., Ltd.
Thailand
Generation and supply of electricity
45
-
Xe-Pien Xe-Nam Noy Power Co., Ltd.
Lao PDR
Generation and supply of electricity
25
25
Jointly controlled entities
179
(TRANSLATION) - 41 -
6.9.3 Investments in associates and jointly controlled entities in the consolidated financial statements Shareholding (%) Dec 31, 13 Dec 31, Dec 31, Cost Equity 13 12 Method Method
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. 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. Perth Power Partnership (Kwinana) 16. KK Power Co., Ltd. 17. Songkhla Biofuel Co., Ltd. 18. Sukhothai Energy Co., Ltd. 19. Xe-Pien Xe-Nam Noy Power Co., Ltd. 20. Ayudhya Power Co., Ltd. Total Grand Total
180
A Leader
25.41 20.00 20.00 30.00
25.41 20.00 20.00 -
1,587.55 399.20 365.40 302.31 2,654.46
16,449.87 514.92 442.71 314.48 17,721.98
50.00 25.00
50.00 25.00
1,809.21 1,831.25
50.00 33.33 40.00 37.50 25.00
50.00 33.33 40.00 37.50 25.00
40.00
Unit : Million Baht Dec 31, 12 Dividend Cost Equity Dec 31, 13 Dec 31, 12 Method Method 1,587.55 15,056.64 381.93 375.26 317.90 305.78 2,287.38 15,737.68
802.64 802.64
735.75 735.75
4,445.68 3,920.66
1,809.21 1,831.25
4,736.95 3,735.10
341.86 475.00
161.77 450.00
10.00 2,202.25 983.12 0.63 0.45
79.39 2,804.75 0.35 -
10.00 2,202.25 983.12 0.63 0.45
112.08 2,649.89 435.43 0.39 0.34
20.00 57.26 -
16.00 -
40.00
160.80
139.54
96.80
87.04
-
-
40.00 49.00 40.00 40.00 40.00 40.00 30.00 50.00 40.00 25.00
40.00 49.00 40.00 40.00 40.00 40.00 30.00 50.00 40.00 51.00
500.00 545.96 71.30 74.07 70.00 67.50 618.53 15.44 0.40 20.00
522.77 745.49 89.26 91.90 89.70 64.17 707.61 0.38 1.69
500.00 545.96 65.00 68.25 63.70 34.50 618.53 15.44 0.40 40.80
490.88 606.55 70.80 76.58 72.20 32.36 764.21 15.16 0.39 24.27
7.34 7.84 8.06 60.26 -
115.88 -
25.00 45.00
25.00 -
532.18 18.10 9,531.19 12,185.65
382.73 0.78 (0.98) 17.93 14,104.00 8,887.07 13,909.64 977.62 743.65 31,825.98 11,174.45 29,647.32 1,780.26 1,479.40
of Clean Energy Technology
(TRANSLATION) - 42 -
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, 13 Dec 31, 12 Dec 31, 13 Dec 31, 12 Dec 31, 13 Dec 31, 12 100.00 45.00
100.00 45.00
3,108.00 280.35
370.00 227.95
-
-
45.00
45.00
6,525.00 9,913.35
6,525.00 7,122.95
1,481.18 1,481.18
1,468.13 1,468.13
25.41
25.41
1,587.55 1,587.55
1,587.55 1,587.55
802.64 802.64
735.75 735.75
35.00
35.00
584.50 584.50 12,085.40
584.50 584.50 9,295.00
2,283.82
2,203.88
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, 13 Dec 31, 12
Balance at the beginning of the year Change in accounting policy Balance at the beginning of the year 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 Transfer development cost to investment Dividend revenues Allowance for impairment Available-for-sale investments Currency translation differences of the company settled in foreign country Dividend received Exchange rate adjustment Balance at the end of the year (before adjustment) Change in fair value Balance at the end of the year after adjustment
29,647.32 29,647.32 2,804.34 133.52 367.08 (20.80) 392.53 (977.62) (15.16) (42.28)
27,074.83 (743.24) 26,331.59 3,695.46 507.02 342.77 (743.65) 532.64
404.45 (802.64) (64.76) 31,825.98 31,825.98
(184.15) (735.75) (10.16) 29,735.77 (88.45) 29,647.32
181
(TRANSLATION) - 43 -
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 of the year Additional investments Balance at the end of the year
182
A Leader
of Clean Energy Technology
Unit : Million Baht Dec 31, 13 Dec 31, 12 9,295.00 9,225.00 2,790.40 70.00 12,085.40 9,295.00
183
Accumulated depreciation / Amortization as at Jan 1, 13 Depreciation/Amortization for the year Exchange rate differences from currency translation Reclassification Disposal/write-off Accumulated depreciation / Amortization as at Dec 31, 13 Accumulated impairment As at Jan 1, 13 Increase (Decrease) during the period As at Dec 31, 13 Net book value As at Dec 31, 12 As at Dec 31, 13
Cost as at Jan 1, 13 Increase during the period Transferred from work under construction Exchange rate differences from currency translation Reclassification Disposal/write-off Cost as at Dec 31, 13 8.17
1,016.88
(10.00) (0.31) (123.29) 28,780.89
-
(25.37) (28.07) 8,574.05
(10,110.02) 19,193.18 18,754.23
3.33 (0.07) 99.45
(18,120.94) (49.58) 48.40 (1.18)
10,639.15 10,658.77
-
-
-
8,321.26 8,574.05
-
(17,202.76) (1,020.89)
(9,662.61) (447.41)
28,864.25
28,855.79 0.29
Reservoirs and dams
27,891.49 6.12
Structures
8,321.26 306.23
Land
6.10 Property, Plant and Equipment
134,446.63 122,352.59
(899.84) (899.84)
(211,523.06)
816.30 (0.28) 70.99
(200,077.83) (12,332.24)
(2,079.49) 4.95 (76.75) 334,775.49
563.96
335,424.30 938.52
Power plants
15,503.31 14,249.73
-
(18,039.60)
1.11 -
(14,895.06) (3,145.65)
(6.03) 32,289.33
-
30,398.37 1,896.99
Equipment for power plants
100.97 169.62
-
(717.91)
19.15
(703.79) (33.27)
(20.92) 887.53
103.69
72,708.95 79,698.46
-
(76,718.98)
16.68 759.24
(71,950.73) (5,544.17)
(24.20) (1,056.87) 156,417.44
12,838.13
1,108.62 1,180.13
-
(5,735.34)
(0.15) 141.83
(5,561.08) (315.94)
0.15 (142.57) 6,915.47
388.19 (1.43) (55.35) 6,386.78
163.62
(0.15) 28.52
1,517.08 1,515.32
-
1,101.40 1,285.77
(53.62) 53.62 -
(4,545.14) (5,101.01)
-
(4,414.16) (4,895.24) (130.98) (234.14)
6,060.46
129.22
517.37 568.81
-
-
-
(2,466.43)
(0.06) 113.97
(2,408.38) (171.96)
2.27 (113.99) 3,035.24
-
-
(42.85)
-
(42.85) -
42.85
-
2,585.86 2,698.09
(0.84) 0.84 -
(7,441.28)
0.06 (16.61) 360.01
(7,121.59) (663.15)
(0.07) 23.26 (368.81) 10,139.37
32.14
3,229.92 1,799.45
-
-
(2,438.90)
1,462.83
(2,167.20) (1,734.53)
(1,462.83) 4,238.35
304.06
(2,688.79) (2,492.10)
-
-
2,347.23
-
2,150.54 196.69
(4,839.33)
-
268,284.91 261,012.92
(1,003.88) 102.86 (901.02)
(360,654.23)
819.69 0.47 3,055.99
(338,952.74) (25,577.64)
(2,114.93) (1.34) (3,449.45) 622,568.17
15,548.06
Unit : Million Baht Consolidated financial statement Control Transmission Communication Coal Machinery Large-sized Vehicles Other Deferred Adjustment Total system system system handling spare parts materials charges of major in consolidated system for mine and supplies inspection fee from profit on equipment sale of power plants 804.76 144,659.68 6,669.70 5,931.24 6,050.26 42.85 2,925.75 9,708.29 5,397.12 (4,839.33) 608,241.53 0.70 229.68 221.21 744.56 4,344.30
(TRANSLATION) - 44 -
Accumulated depreciation / Amortization as at Jan 1, 13 Depreciation/Amortization for the year Reclassification Disposal/write-off Accumulated depreciation / Amortization as at Dec 31, 13 Accumulated impairment As at Jan 1, 13 As at Dec 31, 13 Net book value As at Dec 31, 12 As at Dec 31, 13
Cost as at Jan 1, 13 Increase during the period Transferred from work under construction Reclassification Disposal/write-off Cost as at Dec 31, 13
19,193.18 18,754.23
9,856.31 9,861.74
-
6,929.54 7,213.69
(10,110.02)
(17,698.27)
-
(9,662.61) (447.41) -
8.17 28,864.25
(16,831.21) (966.08) (0.07) 99.09
994.26 (0.31) (121.87) 27,560.01
(0.63) 7,213.69
28,855.79 0.29
Reservoirs and dams
-
26,687.52 0.41
Structures
6,929.54 284.78
Land
89,263.54 81,566.35
(15.33) (15.33)
(170,977.11)
(162,119.38) (8,927.64) (0.28) 70.19
563.96 4.95 (70.19) 252,558.79
251,398.25 661.82
Power plants
15,482.57 14,233.91
-
(18,039.59)
(14,893.94) (3,145.65) -
32,273.50
30,376.51 1,896.99
Equipment for power plants
100.97 169.62
-
(717.91)
(703.79) (33.27) 19.15
103.69 (20.92) 887.53
804.76 -
Control system
72,708.95 79,698.46
-
(76,718.98)
(71,950.73) (5,544.17) 16.68 759.24
12,838.13 (24.20) (1,056.87) 156,417.44
144,659.68 0.70
1,108.62 1,180.13
-
(5,735.34)
(5,561.08) (315.94) (0.15) 141.83
388.19 0.15 (142.57) 6,915.47
6,669.70 -
1,517.08 1,515.32
-
(4,545.14)
(4,414.16) (130.98) -
129.22 6,060.46
5,931.24 -
Separate financial statement Transmission Communication Coal system system handling system
(TRANSLATION) - 45 -
1,095.73 1,111.37
-
(5,088.01)
(4,884.36) (220.36) (0.15) 16.86
8.47 (1.43) (16.86) 6,199.38
-
-
(42.85)
(42.85) -
42.85
Machinery Large-sized spare parts for mine equipment 5,980.09 42.85 229.11 -
502.52 560.12
-
(2,431.03)
(2,379.30) (165.64) (0.06) 113.97
2.16 (113.99) 2,991.15
2,881.82 221.16
Vehicles
2,255.47 2,392.93
-
(7,198.37)
(6,953.43) (582.87) (15.50) 353.43
2.75 17.34 (359.30) 9,591.30
9,208.90 721.61
3,229.92 1,799.45
-
(2,438.90)
(2,167.20) (1,734.53) 1,462.83
304.06 (1,462.83) 4,238.35
5,397.12 -
Other Deferred materials charges of major and supplies inspection fee
223,244.40 220,057.32
(15.33) (15.33)
(321,741.52)
(302,564.04) (22,214.54) 0.47 3,036.59
15,340.90 (1.34) (3,366.03) 541,814.17
525,823.77 4,016.87
Total
Unit : Million Baht
(TRANSLATION) - 46 -
As at December 31, 2013 and 2012, 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 97,256.68 million and Baht 94,494.46 million respectively. The details are as follows:
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, 13 Dec 31, 12 8,998.16 8,556.07 8.40 8.40 48,185.47 47,813.40 8,123.79 7,462.35 449.97 456.14 13,579.83 13,308.55 4,080.70 3,928.79 3,224.80 2,774.24 4,030.90 4,014.99 42.85 42.85 1,868.45 1,867.06 4,663.36 4,261.62 97,256.68 94,494.46
As at December 31, 2013, 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 Carry forward as at Dec 31, 13
Bring forward as at Jan 1, 13 Increase during the period
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 Carry forward as at Dec 31, 13
Bring forward as at Jan 1, 13 Increase during the period (8.17) 643.62
(999.07)
-
1,622.45
35,192.89
-
(564.75)
12,651.11 23,106.53 35,757.64
24.04
-
(105.54)
122.16 7.42 129.58
Control system
499.02 152.77 651.79 (8.17) 643.62
1,268.46 1,321.79 2,590.25
(976.72)
-
1,613.53
35,189.72
-
(564.75)
12,651.01 23,103.46 35,754.47
24.04
-
(105.54)
122.16 7.42 129.58
Structures Reservoirs Power plants Control and dams system
499.02 152.77 651.79
1,270.22 1,351.30 2,621.52
Structures Reservoirs Power plants and dams
6.11 Work under Construction
321.03
-
(388.19)
518.92 190.30 709.22
624.42
-
(144.12)
305.17 463.37 768.54
-
-
(155.15)
101.48 53.67 155.15
18,223.01
-
(12,830.90)
22,146.90 8,907.01 31,053.91
321.03
-
(388.19)
518.92 190.30 709.22
624.42
-
(144.12)
305.17 463.37 768.54
117.11
-
(11.22)
3.36 124.97 128.33
2,337.12
-
(304.06)
305.09 2,336.09 2,641.18
42.72
-
(1.29)
2,562.25
(936.78)
(7.23)
2,337.12
-
(304.06)
42.72
-
-
2,562.25
(936.78)
(7.23)
(114.15) 62,297.87
(17,836.28)
(15,549.36)
54,014.89 41,782.77 95,797.66
Total
(114.15) 570.88
(16,899.50)
-
(114.15) 62,269.45
(17,836.28)
(15,340.90)
53,905.16 41,655.62 95,560.78
Total
Unit : Million Baht
(114.15) 570.88
(16,899.50)
-
Computer Materials for Materials in Software work under transportation construction of transmission system 2,200.09 13,884.98 44.01 1,306.17 3,699.55 44.01 3,506.26 17,584.53
Unit : Million Baht
Major Computer Materials for Materials in inspection Software work under transportation fee construction of transmission system 305.09 2,200.09 13,884.98 2,336.09 42.72 1,306.17 3,699.55 2,641.18 42.72 3,506.26 17,584.53
133.44
-
(40.89)
9.75 164.58 174.33
Separate financial statement Transmission Communication Coal handling Other system and system system materials and exploration supplies
18,223.01
-
(12,830.90)
22,146.90 8,907.01 31,053.91
Consolidated financial statement Transmission Communication Coal handling Machinery Other Major system and system system materials and inspection exploration supplies fee
(TRANSLATION) - 47 -
(TRANSLATION) - 48 -
EGAT had work under construction project as follows: Unit : Million Baht Consolidated financial statement Project
Dec 31, 13
Dec 31, 12
Separate financial statement Dec 31, 13
Dec 31, 12
Expand Transmission System Project
20,358.00
23,920.58
20,358.00
23,920.58
Chana Combined Cycle Power Plant Project - Block 2
15,467.08
11,390.07
15,467.08
11,390.07
North Bangkok Combined Cycle Power Plant Project - Block 1
-
0.08
-
0.08
North Bangkok Combined Cycle Power Plant Project - Block 2
911.24
-
911.24
-
Wang Noi Combined Cycle Power Plant Project - Block 4
14,950.71
10,967.68
14,950.71
10,967.68
Others
10,610.84
7,736.48
10,582.42
7,626.75
62,297.87
54,014.89
62,269.45
53,905.16
Total
As at December 31, 2013, Chana Combined Cycle Power Plant Project (Songkhla) – Block 2, North Bangkok Combined Cycle Power Plant Project - Block 2 and Wang Noi Combined Cycle Power Plant Project – Block 4 have 96.20, 49.20 and 97.46 percentages of completion respectively. As for the Power plant of North Bangkok Combined Cycle Power Plant Project - Block 1 was completed and transferred to asset, which its commercial operation has been commenced on November 19, 2010. 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
Cost at the beginning of period Goodwill amortization from disposal of long-term investment Goodwill amortization from power purchase agreement cancellation Differences from exchange rate adjustment Net book value at the end of period
Unit : Million Baht Consolidated financial statement Dec 31, 13 Dec 31, 12 752.91 1,913.62 (660.15) (546.45) 10.83 45.89 763.74 752.91
As at Dec 31, 13
Cost as at Jan 1, 13 Increase during the period Transferred from work under construction Exchange rate differences from currency translation Reclassification Disposal/write-offs Cost as at Dec 31, 13 Accumulated amortization as at Jan 1, 13 Amortization for the year Exchange rate differences from currency translation Reclassification Disposal/write-offs Accumulated amortization as at Dec 31, 13 Net book value As at Dec 31, 12
6.13 Other Intangible Assets
(743.76) (219.97) (1.81) (0.47) 23.35 (942.66) 906.28
26,297.69 (3,838.09) (0.87) (3,838.96) 20,908.25
739.49
(4.79) 1.34 (23.47) 1,682.15
24,746.34 1,551.35 -
22,458.73
Computer software rights and software license 1,650.04 57.73 1.30
Land rights
220.22
226.56
(254.55)
-
(248.21) (6.34)
474.77
3.91
4.22
(2.34)
-
(2.03) (0.31)
6.25
16.20
19.91
(13.49)
-
(9.78) (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) - 49 -
4,924.04
5,634.86
(1,790.99)
139.50 -
(1,633.11) (297.38)
(552.94) 6,715.03
7,267.97 -
Project development rights
28,362.59
27,700.08
(6,842.99)
137.69 (0.47) 23.35
(6,474.98) (528.58)
(557.73) 1.34 (23.47) 35,205.58
34,175.06 1,609.08 1.30
Total
Unit : Million Baht
(TRANSLATION) - 50 -
Unit : Million Baht Separate financial statement Land Computer Royalty on rights software rights state property and software license service 24,746.34 1,612.46 474.77 1,551.35 29.32 1.34 (23.47) 26,297.69 1,619.65 474.77
26,833.57 1,580.67 1.34 (23.47) 28,392.11
(3,838.09) (0.87) -
(720.04) (213.40) (0.47) 23.35
(248.21) (6.34) -
(4,806.34) (220.61) (0.47) 23.35
(3,838.96)
(910.56)
(254.55)
(5,004.07)
Net book value As at Dec 31, 12
20,908.25
892.42
226.56
22,027.23
As at Dec 31, 13
22,458.73
709.09
220.22
23,388.04
Cost as at Jan 1, 13 Increase during the period Reclassification Disposal/ write-off Cost as at Dec 31, 13 Accumulated amortization as at Jan 1, 13 Amortization for the year Reclassification Disposal/ write-off Accumulated amortization as at Dec 31, 13
Total
6.14 Land Awaiting Development Unit : Million Baht Consolidated financial statement Separate financial statement Dec 31, 13 Dec 31, 12 Dec 31, 13 Dec 31, 12 2,544.90 2,544.90 2,239.51 2,239.51 Balance at the beginning of the year Add : Increase during the period 3.82 2,548.72 2,544.90 2,239.51 2,239.51 Less: Accumulated impairment (423.43) (423.43) (423.43) (423.43) Balance at the end of the year 2,125.29 2,121.47 1,816.08 1,816.08
(TRANSLATION) - 51 -
As at December 31, 2013, 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 as follows: - 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 Deferred tax assets and deferred tax liabilities
Unit : Million Baht Consolidated financial statement Dec 31, 13 Dec 31, 12 129.88 141.02 (1,942.95) (2,185.54) (1,801.93) (2,055.66)
Deferred tax assets Deferred tax liabilities Total
6.15.2 Income tax
Income tax Current income tax Income tax of previous year which is over recorded Total
Unit : Million Baht Consolidated financial statement Jan 1-Dec 31, 13 Jan 1-Dec 31, 12
Deferred tax Change in temporary differences Total Grand total
190
A Leader
of Clean Energy Technology
1,291.01 (4.65) 1,286.36
1,783.61 (95.54) 1,688.07
7.37 7.37 1,293.73
(800.83) (800.83) 887.24
(TRANSLATION) - 52 -
6.15.3 Movements in deferred tax assets and deferred tax liabilities As at Jan 1, 13 Deferred tax assets Allowance for spare parts and supplies Provision for employee benefits Finance leases liabilities Deferred tax liabilities Income taxes of other comprehensive income (loss) Depreciation and amortization Deferred expenses Accumulated losses Others
112.74 17.22 (0.08) 129.88
9.33 1.70 0.11 11.14
-
-
122.07 18.92 0.03 141.02
(93.63) (3,214.95) 151.60 1,042.32 (70.88) (2,185.54)
142.28 (142.51) 93.86 (112.14) (18.51)
93.63 93.63
257.74 (9.09) (96.69) 15.51 167.47
(2,814.93) 1,039.49 (167.51) (1,942.95)
As at Jan 1, 12 Deferred tax assets Allowance for spare parts and supplies Provision for employee benefits Available-for-sale security Losses carry forward Finance leases liabilities Deferred tax liabilities Income taxes of other comprehensive income (loss) Depreciation and amortization Deferred expenses Accumulated Losses Others
Unit : Million Baht Consolidated financial statement (Charged)/credited to: Exchange As at Profit or Other differences Dec 31, 13 loss comprehensive income
Consolidated financial statement (Charged)/credited to: Exchange Profit or Other differences loss comprehensive income
101.00 16.63 6.13 65.90 (0.03) 189.63
11.74 0.59 (65.90) (0.05) (53.62)
(6.13) (6.13)
(3,058.17) 234.70 (122.55) (2,946.02)
(199.07) (81.07) 1,055.87 78.72 854.45
(93.63) (28.00) (121.63)
42.29 (2.03) (13.55) 0.95 27.66
As at Dec 31, 12
112.74 17.22 (0.08) 129.88 (93.63) (3,214.95) 151.60 1,042.32 (70.88) (2,185.54)
191
(TRANSLATION) - 53 -
6.16 Other Non-Current Assets
- Deferred Charges of the Lignite Mine Deferred charges as at Jan 1, 13 Increase during the period Deferred charges as at Dec 31, 13 Amortization as at Jan 1, 13 Increase during the period Amortization as at Dec 31, 13 Net book value As at Dec 31, 12
Unit : Million Baht
Consolidated financial statement Overburden Minerals Resettlement Mineral removal resource costs Patent costs costs exploration and preliminary development costs 88,747.97 5,955.41 94,703.38 (88,747.97) (5,955.41) (94,703.38)
As at Dec 31, 13
645.67 645.67 (303.73) (10.60) (314.33)
1,988.44 1,988.44 (1,631.73) (54.06) (1,685.79)
281.14 281.14 (46.48) (11.25) (57.73)
91,663.22 5,955.41 97,618.63 (90,729.91) (6,031.32) (96,761.23)
-
341.94
356.71
234.66
933.31
-
331.34
302.65
223.41
857.40
- Others As at Dec 31, 12 Adjustment Reclassification As at Dec 31, 12 - (adjusted and reclassified) As at Dec 31, 13 Total other non-current assets As at Dec 31, 12 - (adjusted and reclassified) As at Dec 31, 13
192
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Total
5,817.57 (20.00) 5,797.57 331.85 6,129.42 2,436.00 7,062.73 3,293.40
of Clean Energy Technology
(TRANSLATION) - 54 -
Unit : Million Baht
- Deferred Charges of the Lignite Mine Deferred charges as at Jan 1, 13 Increase during the period Deferred charges as at Dec 31, 13 Amortization as at Jan 1, 13 Increase during the period Amortization as at Dec 31, 13 Net book value As at Dec 31, 12 As at Dec 31, 13 - Others As at Dec 31, 12 Reclassification As at Dec 31, 12 - ( reclassified) As at Dec 31, 13 Total other non-current assets As at Dec 31, 12 - ( reclassified) As at Dec 31, 13
Separate financial statement Overburden Minerals Resettlement Mineral removal resource costs Patent costs costs exploration and preliminary development costs
88,747.97 5,955.41 94,703.38 (88,747.97) (5,955.41) (94,703.38) -
Total
645.67 645.67 (303.73) (10.60) (314.33)
1,988.44 1,988.44 (1,631.73) (54.06) (1,685.79)
281.14 281.14 (46.48) (11.25) (57.73)
91,663.22 5,955.41 97,618.63 (90,729.91) (6,031.32) (96,761.23)
341.94 331.34
356.71 302.65
234.66 223.41
933.31 857.40 631.36 331.85 963.21 723.82 1,896.52 1,581.22
6.17 Trade Accounts Payable - Others
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, 13 Dec 31, 12 Dec 31, 13 Dec 31, 12 33,840.82 18,855.94 33,840.82 18,855.94 19,732.48 11,540.11 19,732.48 11,540.11 2,962.82 2,096.59 2,962.82 2,096.59 9,694.52 9,519.64 2,703.92 2,490.80 66,230.64 42,012.28 59,240.04 34,983.44
193
(TRANSLATION) - 55 -
6.18 Accrued Remittance to the Ministry of Finance In the year 2013, 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, 2013, EGAT has accrued remittance to the Ministry of Finance in the amount of Baht 8,077.99 million. EGAT increased in provision for remittance to the Ministry of Finance in the amount of Baht 4.01 million and on April 9, 2013, EGAT remit to the Ministry of Finance in accordance with the notice of EGAT no. 921101/23761 in the amount of Baht 8,082.00 million. As at December 31, 2013, EGAT recorded the provision for the remittance to the Ministry of Finance for the year 2013 in the amount of Baht 19,056.17 million. However, in October 2012, EGAT remitted for the six months ended June 30, 2013 in the amount of Baht 9,589.88 million, therefore, EGAT has accrued remittance to the Ministry of Finance in the amount of Baht 9,466.29 million as at December 31, 2013. 6.19 Long-Term loans are as follows :
Unit : Million Baht Consolidated financial statement
Dec 31, 13 Long - term loans at the beginning of the year 91,406.06 Increase during the period 16,065.70 Repayments (22,561.45) Gain on repayments (9.56) Gain from derivatives (5.70) (Gain) Loss on exchange rate adjustment / Exchange rate differences from currency translation (1,569.39) Long - term loans at the end of the year 83,325.66 (11,590.86) Less Current portion of long - term loans Balance 71,734.80
194
A Leader
Dec 31, 12 102,468.27 11,147.35 (20,976.02) (26.70) (62.89)
(1,143.95) 91,406.06 (9,333.67) 82,072.39
of Clean Energy Technology
Separate financial statement
Dec 31, 13 62,722.52 13,000.00 (4,964.75) (9.56) (5.70)
Dec 31, 12 66,495.49 11,000.00 (14,640.57) (26.70) (62.89)
153.86 70,896.37 (6,480.10) 64,416.27
(42.81) 62,722.52 (4,980.01) 57,742.51
(TRANSLATION) - 56 -
Long - Term loans are as follows :
Local sources secured by the Ministry of Finance: EGAT bonds Fixed rate due within 2013 - 2020 Local sources unsecured by the Ministry of Finance: Ministry of Finance loans Fixed rate due within 2013 - 2027 EGAT bonds Fixed rate due within 2013 - 2033 Debenture Fixed rate due within 2013 - 2015 Other financial institutions Floating rate due within 2013 - 2020 Fixed rate due in 2016 Foreign sources secured by the Ministry of Finance: Loans Japanese Yen: Fixed rate due in 2013 Euro: Fixed rate due within 2013 - 2014 Fixed rate due within 2013 - 2037 Foreign sources unsecured by the Ministry of Finance: Loans AUD Dollars: Floating rate due within 2013 - 2015 Debenture Japanese Yen: Fixed rate due in 2026 Total Less: Current portion of long-term loans Balance
Consolidated financial statement Dec 31, 13 Dec 31, 12 Foreign Million Foreign Million currencies Baht currencies Baht Unit : million Unit : million -
8,000.00 8,000.00
-
9,000.00 9,000.00
-
83.49
-
88.34
-
61,250.00
-
51,781.90
-
5,681.34
-
9,618.20
-
930.14 1,200.00 69,144.97
-
941.19 1,200.00 63,629.63
-
-
419.51
150.17
0.09 34.40
3.93 1,558.95 1,562.88
0.17 41.48
7.09 1,695.02 1,852.28
1.57
(45.62)
367.61
11,632.58
15,000.00
4,663.43 4,617.81 83,325.66 (11,590.86) 71,734.80
15,000.00
5,291.57 16,924.15 91,406.06 (9,333.67) 82,072.39
195
(TRANSLATION) - 57 -
As at December 31, 2013, the fee of subsidiaries for advance financing is in the amount of Baht 45.62 million 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 2013 - 2020
Separate financial statement Dec 31, 13 Dec 31, 12 Foreign Million Foreign Million currencies Baht currencies Baht Unit : million Unit : million
-
8,000.00 8,000.00
-
9,000.00 9,000.00
Local sources unsecured by the Ministry of Finance: Ministry of Finance loans Fixed rate due within 2013 - 2027 EGAT bonds Fixed rate due within 2013 - 2033
-
83.49
-
88.34
-
61,250.00 61,333.49
-
51,781.90 51,870.24
Foreign sources secured by the Ministry of Finance: Loans Japanese Yen: Fixed rate due in 2013 Euro: Fixed rate due within 2013 - 2014 Fixed rate due within 2013 - 2037
-
Less:
196
Total Current portion of long-term loans Balance
A Leader
0.09 34.40
3.93 1,558.95 1,562.88 70,896.37 (6,480.10) 64,416.27
of Clean Energy Technology
419.51
150.17
0.17 41.48
7.09 1,695.02 1,852.28 62,722.52 (4,980.01) 57,742.51
(TRANSLATION) - 58 -
As at December 31, 2013, long - term loans can be classified by interest rate as follows:
Floating rate Fixed rate Total
Consolidated financial statement Dec 31, 13 Dec 31, 12 884.52 12,573.77 82,441.14 78,832.29 83,325.66 91,406.06
Unit : Million Baht Separate financial statement Dec 31, 13 Dec 31, 12 70,896.37 62,722.52 70,896.37 62,722.52
Interest rate of long-term loans as at December 31, 2013 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 8.554% 3.240% to 6.235%
6.927% to 8.554% 3.240% to 6.235%
3.000% to 4.350%
3.000% to 3.000%
0.000% to 8.000%
0.000% to 8.000%
2.720% to 3.940%
6.20 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.
197
(TRANSLATION) - 59 -
Movement in the present value of the defined benefit obligations:
Beginning balance Current service costs Interest on obligations Actuarial (gains) losses Actual payment Exchange rate differences from currency translation Ending balance
Consolidated financial statement Dec 31, 13 Dec 31, 12 13,562.46 12,155.17 572.03 529.94 512.77 495.02 (5.81) 1,439.35 (589.76) (1,056.95) (0.44) 14,051.25
(0.07) 13,562.46
Unit : Million Baht Separate financial statement Dec 31, 13 Dec 31, 12 13,475.64 12,074.49 555.81 517.12 509.41 492.12 1,439.35 (585.14) (1,047.44) 13,955.72
13,475.64
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, 2013 are as follows: Unit : Million Baht
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
Consolidated financial statement Separate financial statement Jan 1-Dec 31, 13 Jan 1-Dec 31, 12 Jan 1-Dec 31, 13 Jan 1-Dec 31, 12
600.91 6.90 368.84 976.65
564.07 5.85 343.69 913.61
600.91 6.90 349.26 957.07
564.07 5.85 327.97 897.89
39.98 66.83 1.34 108.15 1,084.80
44.19 67.32 1.39 112.90 1,026.51
39.98 66.83 1.34 108.15 1,065.22
44.19 67.32 1.39 112.90 1,010.79
EGAT has actuarial gains which recognized in comprehensive income for the year ended December 31, 2013 in the amount of Baht 5.81 million and has actuarial losses which recognized in comprehensive income for the year ended December 31, 2012 in the amount of Baht 1,437.80 million.
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(TRANSLATION) - 60 -
Principle actuarial assumptions of EGAT
Annual percentage (%) 3.9
Discount rate Inflation rate Consumer price index Post-employment medical care Resignation rate Salary escalation rate Mortality rate, by table
3.5 10 0.0 - 0.8 6 - 11 TMO08 (Thai mortality table A.D.2008)
6.21 Provision Liabilities for Mine Reclamation
Balance at the beginning of the year Add : Increase during the period Less : Mine reclamation expenses Depreciation Balance at the end of the year
Consolidated financial statement Dec 31, 13 Dec 31, 12 2,047.40 1,982.70 128.14 130.65 2,175.54 2,113.35 (91.62) (62.23) (3.61) (3.72) 2,080.31 2,047.40
Unit : Million Baht Separate financial statement Dec 31, 13 Dec 31, 12 2,047.40 1,982.70 128.14 130.65 2,175.54 2,113.35 (91.62) (62.23) (3.61) (3.72) 2,080.31 2,047.40
199
(TRANSLATION) - 61 -
6.22 Other Non-Current Liabilities
Deferred Income Balance at the beginning of the year Add : Contribution received
Consolidated financial statement Dec 31, 13 Dec 31, 12
Less : Recognized to other revenue Decrease in depreciation Balance at the end of the year Retention Cash received from breaking agreement in case of conflict Others Total
6.23 Owners' Equity Contribution from The Government
Capital Contribution for supporting construction of the Srinagarind, Bang Lang, Vajiralongkorn, Rajjaprabha and Pak Mun Dam Less : Accumulated depreciation Depreciation for the period Balance
200
A Leader
Unit : Million Baht Separate financial statement Dec 31, 13 Dec 31, 12
6,100.59 691.55 6,792.14 (431.69) (1.34) 6,359.11 8,475.46
5,156.23 1,472.41 6,628.64 (526.71) (1.34) 6,100.59 6,623.86
6,120.59 691.55 6,812.14 (431.69) (1.34) 6,379.11 8,475.46
5,156.23 1,492.41 6,648.64 (526.71) (1.34) 6,120.59 6,623.86
848.47 1,512.80 17,195.84
841.16 1,580.26 15,145.87
848.47 899.02 16,602.06
841.16 918.14 14,503.75
Unit : Million Baht Consolidated financial statement Separate financial statement Dec 31, 13 Dec 31, 12 Dec 31, 13 Dec 31, 12 6,507.64 6,507.64 6,507.64 6,507.64
4,364.75 (1,808.08) (62.34) 2,494.33 9,001.97
4,364.75 (1,745.74) (62.34) 2,556.67 9,064.31
of Clean Energy Technology
4,364.75 (1,808.08) (62.34) 2,494.33 9,001.97
4,364.75 (1,745.74) (62.34) 2,556.67 9,064.31
(TRANSLATION) - 62 -
6.24 Revenue from Sales of Other Goods and Services
Revenue from telecommunication services Revenue from fuel providing Revenue from operation and maintenance services Others Total
Unit : Million Baht Consolidated financial statement Separate financial statement Jan 1-Dec 31, 13 Jan 1-Dec 31, 12 Jan 1-Dec 31, 13 Jan 1-Dec 31, 12 575.20 20,753.37
416.62 24,266.13
575.20 21,742.48
416.62 27,360.26
1,353.67 1,410.64 24,092.88
881.75 1,183.69 26,748.19
3,081.08 647.93 26,046.69
2,079.98 519.34 30,376.20
EGAT has the revenue from telecommunication business, which has been approved to operate telecommunication business by The National Telecommunications Commission on March 15, 2007. 6.25 Cost of Electric Energy Sales
Electric energy purchased Fuel Generating expenses Transmission expenses Total
Consolidated financial statement Jan 1-Dec 31, 13 Jan 1-Dec 31, 12 240,967.69 209,206.82 170,829.26 176,240.28 34,067.86 34,962.81 10,614.20 9,781.51 456,479.01 430,191.42
Unit : Million Baht Separate financial statement Jan 1-Dec 31, 13 Jan 1-Dec 31, 12 289,284.49 261,334.91 134,416.99 136,189.64 27,129.11 27,615.13 10,614.20 9,781.51 461,444.79 434,921.19
201
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6.26 Cost of Sales of Other Goods and Services
Unit : Million Baht Consolidated financial statement Separate financial statement Jan 1-Dec 31, 13 Jan 1-Dec 31, 12 Jan 1-Dec 31, 13 Jan 1-Dec 31, 12 Cost of telecommunication services 31.30 28.10 31.30 28.10 Cost of fuel providing 20,753.37 24,266.13 21,742.47 27,360.26 Cost of operation and maintenance services 933.67 701.42 2,196.72 1,551.85 Others 461.49 316.03 347.06 295.34 Total 22,179.83 25,311.68 24,317.55 29,235.55
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. 6.27 Other Revenues
Unit : Million Baht Consolidated financial statement Separate financial statement Jan 1-Dec 31, 13 Jan 1-Dec 31, 12 Jan 1-Dec 31, 13 Jan 1-Dec 31, 12 1,992.50 1,547.22 1,380.57 2,020.45 220.90 188.31 2,283.82 2,203.88 13.37 22.97 634.43 -
Interest income Dividend income Profit on disposal of assets Gain on foreign exchange Gain on changes in the fair value of derivatives Gain on disposal of long-term investment Gain from power purchase agreement cancellation Contribution income Fine income Income on disposal of fly ash and scrap Miscellaneous income Others Total
202
A Leader
104.29
150.90
104.29
150.90
-
783.68
-
-
257.17 136.37 379.75 55.87 1,576.43 4,774.20
1,069.44 287.82 124.24 340.89 26.47 515.88 6,114.56
of Clean Energy Technology
257.17 136.37 379.75 55.87 371.32 5,135.81
287.82 124.24 340.89 26.47 138.18 4,666.32
(TRANSLATION) - 64 -
6.28 Other Expenses
Loss on foreign exchange rate Loss on disposal of assets Others Total
Consolidated financial statement Jan 1-Dec 31, 13 Jan 1-Dec 31, 12 187.16 61.47 53.02 34.75 240.18 96.22
Unit : Million Baht Separate financial statement Jan 1-Dec 31, 13 Jan 1-Dec 31, 12 682.22 163.94 159.31 53.02 34.75 894.55 198.69
6.29 Share of Profit from Investments in Associates
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 Dec 31, 13 Dec 31, 12 1,851.83 3,011.13 122.39 (6.26) 89.43 (12.04) (5.96) 2,057.69 2,992.83
6.30 Finance Costs
Capitalized to work under construction Finance costs in the statements of income Total
Unit : Million Baht Consolidated financial statement Interest Expenses relating Total to the loans Jan 1-Dec 31, 13 Jan 1-Dec 31, 12 expenses 0.76 572.56 287.90 571.80 4,168.13 248.68 4,416.81 5,343.21 4,739.93 249.44 4,989.37 5,631.11 Unit : Million Baht
Capitalized to work under construction Finance costs in the statements of income Total
Separate financial statement Total Interest Expenses relating expenses to the loans Jan 1-Dec 31, 13 Jan 1-Dec 31, 12 571.80 0.76 572.56 285.72 2,737.71 1.73 2,739.44 2,899.37 3,309.51 2.49 3,312.00 3,185.09
203
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6.31 Performance of EGAT The performance of EGAT in net income of 2013 was Baht 37,786.82 million. EGAT recorded the provision of expenses and liabilities of bonus for employees and directors in the amount of Baht 4,560.23 million for the 2013 financial statements. In April and May 2013, the Ministry of Finance approved EGAT to allocate the 2012 net income for bonus payment to the employees and directors in the amount of Baht 4,139.80 million. EGAT recorded the provision of bonus in 2012 in the amount of Baht 4,087.97 million so, EGAT recorded the difference of the provision of bonus in the amount of Baht 51.83 million, that brought about to increase the expenses in the year 2013. 6.32 Expenses by Nature Consolidated financial statement Jan 1-Dec 31, 13 Jan 1-Dec 31, 12 209,206.82 Electric energy purchased 240,967.69 Work performed by the enity and capitalized (36,754.40) (24,888.54) Raw materials and consumables used 173,561.05 178,959.54 Management benefit expenses 350.59 391.89 Employee benefit expenses 28,164.06 29,465.42 Depreciation of property, plant and 24,713.86 equipment 25,473.99 Amortization of intangible assets 528.37 559.80 Hire and maintenance expenses 6,402.63 7,342.37 Other expenses 57,037.67 47,725.82 Total 495,731.65 473,476.98
Unit : Million Baht Separate financial statement Jan 1-Dec 31, 13 Jan 1-Dec 31, 12 289,284.49 261,334.91 (36,754.40) (24,888.54) 137,574.11 141,818.76 147.20 145.47 27,729.33 29,001.72 22,135.57 220.40 5,505.99 54,992.23 500,834.92
21,297.41 222.39 5,290.77 46,170.25 480,393.14
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:
204
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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. 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, 2013 and 2012, 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 954.46 million and Baht 1,039.01 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
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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. 9. Contingent Liabilities As at December 31, 2013, contingent liabilities excluded from the separate’s financial statements, are the calling for EGAT to pay additional compensation, which the details are as follows: 1. The Civil Court judged that EGAT was liable for the additional payment of 32 lawsuits amounting to Baht 109.02 million in case of calling for compensation of land rights and violation. 2. On March 4, 2008, the Administrative Court at Chiangmai Province judged that EGAT repay the compensation for health and sanitation of 131 affected people in the area, which are impacted from dust and sulfur dioxide in the amount of Baht 246,900 per person. EGAT estimated the approximately compensation amounting to Baht 24.72 million (excluding interest). 3. On March 4, 2008, the Administrative Court at Chiangmai Province judged that EGAT did not proceed according to the regulations and requirements of environment impact protection and mitigation in patent of coal mine. The court judged that EGAT is committed to practice under the principle of patent etc., village errigration, reforestation in golf course, mitigation of affected dust and environmental assessment report is submitted every two years. Due to, there are not obvious the compensation to the government and claimant, so, EGAT does not determined the compensation. 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 programme for the power generation in new project by private sector (Independent Power Producers known as IPP) who will sell power to EGAT.
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As at December 31, 2013, EGAT has entered into 96 Power Purchase Agreements with total commitments amounting to approximately Baht 9,650,895 million and total production capacity of 27,526 megawatts. The details are as follows: Company Capacity Power producers (megawatt) Power Project Developers in Lao People's Democratic Republic 434 Theun Hinboun Power Company Limited 1 Houay Ho Power Company Limited 1 126 Nam Theun Project 2 1 920 Nam Ngum Project 2 1 454 Hongsa Lignite Project 1 1,473 Xayaburi Project 1 871 Nam Ngiep Project 1 1 249 Xe-Pien Xe-Nam Noy 1 349 Independent Power Producers (IPP) Electricity Generating Public Company Limited (EGCO) As formerly, Rayong Electricity Generating Company Limited(REGCO) 1 1,161 Khanom Electricity Generating Company Limited (KEGCO) 1 748 Tri Energy Company Limited (TECO) 1 700 Eastern Power Electric Company Limited (EPEC) 1 350 Global Power Synergy Company Limited (GPSC) As formerly, Independent Power (Thailand) Company Limited (IPT) 1 700 Ratchaburi Electricity Generating Company Limited (RGCO) 1 3,481 Glow IPP Company Limited (GIPP) 1 713 Gulf Power Generation Company Limited (GULF) 1 1,468 Ratchaburi Power Company Limited (RPCL) 1 1,400 BLCP Power Company Limited (BLCP) 1 1,347 Gheco One Company Limited (GHECO ONE) 1 660 Gulf JP UT Company Limited (GUT) As formerly, Siam Energy Company Limited (SEC) 1 1,600 Gulf JP NS Company Limited (GNS) As formerly, Power Generation Supply Company Limited (PGS) 1 1,600 Small Power Producers (SPP) 75 6,722 Total 96 27,526
Remaining life Amount Availability Energy of contract payment (AP) payment (EP) (years) (Million Baht) (Million Baht) (Million Baht) 26 16 22 24 27 29 28 28
2014-2039 2014-2029 2014-2035 2014-2037 2015-2041 2019-2047 2019-2046 2019-2046
123,067 16,119 190,235 103,588 525,083 414,185 94,115 102,983
319,050 -
123,067 16,119 190,235 103,588 206,033 414,185 94,115 102,983
1
2014-2014
12,019
1,917
10,102
3 2014-2016 7 2014-2020 10 2014-2023
38,974 73,176 59,780
3,721 5,216 9,302
35,253 67,960 50,478
12 2014-2025
139,910
17,636
122,274
14 14 20 20 19 24
2014-2027 2014-2027 2014-2033 2014-2033 2014-2032 2014-2037
823,318 176,188 528,132 529,286 251,726 319,555
116,124 22,150 77,922
707,194 154,038 450,210
63,202
466,084
86,397
165,329
107,386
212,169
25 2015-2039
765,954
119,149
646,805
26 2014-2039 764,771 6-26 Years 3,598,731 9,650,895
107,007
657,764
660,901
2,937,830
1,717,080
7,933,815
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10.2 Fuel Purchase Agreements EGAT has entered to 7 fuel purchase agreements, which the details are as follows: 10.2.1 There are 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 1 year and 11.5 months to 18 years and 8 months. The rest of amount as contract is valued at Baht 464,425 million. 10.2.2 There are 3 fuel oil purchase agreements, which the details are as follows: - Fuel oil purchase agreement has ended, however, EGAT has renewed the contract until a new contract is in effect. The amount of the contract is approximately Baht 14,837 million. - Diesel fuel for generation purchase agreement will be renewed until EGAT will cancel the contract. The amount of the contract is approximately Baht 2,102 million. - Gasoline for vehicle purchase agreement will be renewed until EGAT will cancel the contract. The amount of the contract is approximately Baht 235 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 265 agreements of local hire - purchase agreements and their amount as contract is Baht 51,762.62 million with the remaining life of contract in 0.5 month to 8 years and 5.5 months. The rest of amount as contract is approximately Baht 28,868.80 million. 10.3.2 There are 161 agreements of foreign hire - purchase agreements and their amount as contract is Baht 84,472.19 million. Some contracts have the remaining life of contract in 0.5 month to 3 years and 6.5 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 27, 2013, which announced by the Bank of Thailand was approximately Baht 36,849.47 million. 10.4 Letter of Credit On December 31, 2013, EGAT has unused letter of credit, which are not expired amounting to approximately Baht 15,512.58 million.
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11. Disclosure of Financial Instruments EGAT uses the financial instruments to decrease uncertainty from uncontrollable outside factors. The main derivative financial instruments consisted of currency swap agreements, interest rate swap agreements and forward foreign exchange contracts. 11.1 Cross Currency and Interest Rate Swap Agreements EGAT uses the cross currency and interest rate swap agreements to mitigate foreign currency risk and fluctuations in interest rate which are inherent foreign currency borrowings. The agreements are not recognized in the financial statements on the agreement date. EGAT has entered into several cross currency and interest rate swap agreements with a maturity of 4 - 10 years. The term and remaining foreign currency amount under the cross currency and interest rate swap agreements as at December 31, 2013 are as follows: Terms of cross currency and interest rate swap agreements Yen 6,712 million / Baht 2,456 million
Dec 31, 13
-
Unit : Million Baht Dec 31, 12 153.54 153.54
-
Unit : Million Baht Dec 31, 12 153.54 153.54
The maturity of agreements can be analyzed as follows : More than 5 years
Dec 31, 13
11.2 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.
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As at December 31, 2013, 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, 13 Dec 31, 12 65.54 65.54 -
11.3 Fair Value of Financial Instruments As at December 31, 2013 , contract price and fair value of long-term loans and derivative are as follows: Unit : Million Baht Dec 31, 13 Dec 31, 12 Contract price Fair value Contract price Fair value 71,093.64 60,870.24 64,210.01 Long - term loans - local sources 69,333.49 Long - term loans - foreign sources 1,562.88 1,584.27 1,852.28 1,897.67 Cross currency and interest rate swap contracts 4.59 Forward foreign exchange contracts (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. Cross currency and interest rate swap contracts and interest rate swap contracts are calculated by financial institutions, which are contractor of EGAT. 12. Subsequent Events On November 1, 2013, EGAT has appointed Siam Commercial Bank Plc., as a financial advisor to study design structure and guidelines for the establishment of the North-Bangkok Combined Cycle Power Plant-Block 1 infrastructure fund which is an alternative for funding without causing public debt. EGAT still owns and has management power in operation and maintenance of North-Bangkok Combined Cycle Power Plant-Block 1 as it used to be. The structure and guidelines for the establishment of infrastructure fund are defined as a tool for funding, so they do not lead to the privatization of EGAT. Initially, it is expected to completed the study of the establishment of the mutual fund within 120 days before submission
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to the Cabinet and will be able to sell within 180 days after the Cabinet approved the establishment of such fund. At this time, EGAT is studying about the income transfer to the fund to present to the office of the Securities and Exchange Commission and State Enterprise Policy Office for approval. EGAT has hired PWC as a consultant for the financial statements of North-Bangkok Combined Cycle Power Plant-Block 1. EGAT is currently collecting data for the preparation of initial financial statements. 13. Reclassification Transactions EGAT reclassified some transactions in the consolidated financial statements for the year ended December 31, 2012 for conformity with the presentation of the consolidated financial statements for the year ended December 31, 2013.
14. Issuance Dated of Financial Statements Governor of EGAT approved these financial statements for issuance on March 24, 2014. _________________________________
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Audit Fee EGAT’s financial statements are audited by the Office of the Auditior General of Thailand. For Fiscal year 2013, 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.
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