A Leader of Clean Energy Technology · plant model. EGAT intends to become a leader in using clean...

1

A Leader of Clean Energy TechnologyWith 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.

Vision and Mission Statement 2Financial Overview 3Message from Chairman 6Report of the Audit Committee 8Economic and Electricity Overview 10

Operations 12Nature of Business of EGAT and Affiliates 20Analysis of Operating Results and Financial Status 26Enterprise Risk Management 36Organization Chart 38Structure of Organizational Management 39Board of Directors 54

ContentExecutives 69Corporate Governance 80Official Information Act Compliance Report 90Power Development and Future Plan 94Organization and Human Resource Development 110Corporate Social Responsibility 116Events 128Key Statistical Data 134Auditor’s Report 140Financial Statements 142Audit Fee 212

2 A Leader of Clean Energy Technology

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

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

3

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

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.

7

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)


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

9

• 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


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.

11

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.


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.

13

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.


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:

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

Revision Month Ft Tariff Average Retail Tariff including Ft (Baht/Unit) (Baht/Unit)

1 January - April 0.52 3.80 2 May - August 0.47 3.75 3 September - December 0.54 3.82

Type of Power Plant Installed Capacity (MW) Percentage of the System Capacity

Thermal 4,699.00 13.95 Combined cycle 6,866.00 20.39 Hydropower 3,435.74 10.20 Diesel 4.40 0.01 Renewable energy 4.99 0.02 Total 15,010.13 44.57

15

EGAT’s power plant performance

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.

2010 2011 2012 2013

1 Heat Rate (kJ/kWh) 8,835.93 8,694.21 8,662.41 8,620.00 2 GWEAF (%) 90.72 92.75 90.54 92.10 3 POF (%) 5.48 3.39 5.00 4.10 4 UOF (%) 2.46 2.58 2.84 2.30


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 circuit-kilometers 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.

17

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), 0.35626 number of occurrence/ delivery point

• System average interruption duration index (SAIDI), 13.96649 minutes/delivery point

The availability of the transmission system in 2013 was as follows:

• System availability (SA) (%) 99.9973

• Transmission circuit availability (%) 99.98316

• Transformer availability (%) 99.67192

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.


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.


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.

21

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).


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 by-products 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.

23

• 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.


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.

25

EGAT’s Investment in Its Affiliates

Company Registered Capital Ownership Status (Million Baht) (%)

Ratchaburi Electricity Generating Holding Public Company Limited 14,500 45 Subsidiary Company(RATCH)

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 99.99 Subsidiary Company(EGATi)

53 Moo 2 Charansanitwong Road, Bang Kruai District, Nonthaburi Province 11130Tel : +66 (0) 2436 4000 Fax : +66 (0) 2436 4017 Website: www.egati.co.th

EGAT Diamond Service Co., Ltd. 623 45 Subsidiary Company(EDS)

56/25 Moo 20, Khlong Nueng Sub-district, Khlong Luang District, Pathumthani Province 12120Tel : +66 (0) 2529 0800 Fax : +66 (0) 2529 0900Website: www.egatdiamond.co.th

Electricity Generating Public Company Limited 5,300 25.41 Associated Company(EGCO)

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 1,670 35 Joint Venture(DCAP)

Moo 1 Nong-Prue Sub-district, Bang Phli District, Samut Prakan Province 10540Tel : + 66 (0) 2327 4242 Fax : +66 (0) 2327 4244 Website: www.dcap.co.th


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:

2013 2012 Increase / (Decrease) Operating Results

Million Baht Million Baht Million Baht Percentage

Revenue from sales and services 536,913.34 512,991.89 23,921.45 4.66

Revenue from electric energy sales 512,820.46 486,243.70 26,576.76 5.47 Revenue from sales of other goods and services 24,092.88 26,748.19 (2,655.31) (9.93)

Cost from sales and services 478,658.84 455,503.10 23,155.74 5.08

Cost of electric energy sales 456,479.01 430,191.42 26,287.59 6.11 Cost of sales of other goods and services 22,179.83 25,311.68 (3,131.85) (12.37)

Gross profit 58,254.50 57,488.79 765.71 1.33

Other revenue 4,774.20 6,114.57 (1,340.37) (21.92)

Income before expenses 63,028.70 63,603.36 (574.66) (0.90)

Selling expenses 143.55 131.85 11.70 8.87 Administrative expenses 16,006.77 17,568.48 (1,561.71) (8.89) Other expenses 240.18 96.23 143.95 149.59

Operating income 46,638.20 45,806.80 831.40 1.82

Share of profit from associated company and jointly controlled entity of subsidiaries under the equity method 2,804.34 3,761.73 (957.39) (25.45)

Income before financial cost and income tax 49,442.54 49,568.53 (125.99) (0.25)

Financial cost 4,416.81 5,343.21 (926.40) (17.34)Income tax (part of subsidiaries) 1,293.73 887.24 406.49 45.82

Net income for the year 43,732.00 43,338.08 393.92 0.91

Net income - Non-controlling interests 3,390.16 4,480.15 (1,089.99) (24.33)

Net income - EGAT and its subsidiaries 40,341.84 38,857.93 1,483.91 3.82

27

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 2012 Increase / (Decrease) Cost of Electric Energy Sales Million Baht Million Baht Million Baht Percentage

Electricity purchased 240,967.69 209,206.82 31,760.87 15.18

Fuel 170,829.26 176,240.28 (5,411.02) (3.07)

Generating expenses 34,067.86 34,962.81 (894.95) (2.56)

Transmission expenses 10,614.20 9,781.51 832.69 8.51

Total 456,479.01 430,191.42 26,287.59 6.11


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:

29

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:

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.

2013 2012 Increase / (Decrease)

Fuel Million Unit Million Unit Million Unit Percentage

Natural gas (MBtu) 495.39 525.86 (30.47) (5.79)

Heavy oil (liter) 355.39 500.43 (145.04) (28.98)

Diesel oil (liter) 80.84 28.57 52.27 182.95

Palm oil (kg) 7.34 - 7.34 100.00

Lignite (ton) 16.88 16.78 (0.10) (0.60)

2013 2012 Increase / (Decrease) Fuel Million Baht Million Baht Million Baht Percentage

Natural gas 150,649.29 154,417.50 (3,768.21) (2.44)

Heavy oil 7,895.24 11,905.41 (4,010.17) (33.68)

Diesel oil 2,081.57 685.29 1,396.28 203.75

Palm oil 214.11 - 214.11 100.00

Lignite 9,989.05 9,232.08 756.97 8.20

Total 170,829.26 176,240.28 (5,411.02) (3.07)


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.

31

2. Analysis of Financial Status of EGAT and Its Subsidiaries

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:

2013 2012 Increase / (Decrease) Financial Status Million Baht Million Baht Million Baht Percentage

Total assets 578,380.63 533,270.08 45,110.55 8.46

Total liabilities 231,299.21 208,296.15 23,003.06 11.04

Owners’ equity of EGAT and its subsidiaries 315,928.06 294,868.74 21,059.32 7.14

Non-controlling interests 31,153.36 30,105.19 1,048.17 3.48


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 1,984.30Jointly-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

• 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.

33

• 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


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:

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.

Unit : Million Baht

Cash and cash equivalents as at December 31, 2012 (Restated) 40,312.35

Net cash inflows from operating activities 88,510.75

Net cash outflows from investing activities (34,332.36)

Net cash outflows from financing activities (27,348.51)

Effects from foreign exchange rate in cash and cash equivalents (63.43)

Cash and cash equivalents as at December 31, 2013 67,078.80

35

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:

Remark : EBITDA is calculated fromgross profit after selling expenses, administrative expenses,excludingdepreciationandotheramortizationexpenses.

Liquidity Ratio 2013 2012

Current ratio (Time) 1.51 1.42 Quick ratio (Time) 1.40 1.28 Cash ratio (Time) 0.82 0.70

Profitability Ratio

Ratio of gross profit to net sales (Percentage) 10.85 11.21 Ratio of net profit to net sales (Percentage) 8.15 8.45 EBITDA (Million Baht) 73,935.01 70,321.12

Efficiency Ratio

Rate of return on assets (Percentage) 7.87 8.41 Rate of return on fixed assets (Percentage) 26.12 25.13 Total assets turnover (Time) 0.98 1.02

Financial Policy Ratio

Debt to equity ratio (Time) 0.67 0.64 Times interest earned (Time) 11.19 9.28 Fixed charge coverage (cash basis) (Time) 1.57 1.03


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.

37

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.


Organization Chart

39

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


• 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

Remark : * Resigned,effectivefromOctober1,2013

** RetiredonJuly30,2013ashavingreached60yearsofageaccordingtothehiringcontractofEGATGovernor

*** AppointedbytheCabinetonJuly19,2013toreplaceMr.SutatPatmasiriwat,effectivefromJuly31,2013andservesasdirector(ex-officio)

No. Name Position Term of Office in 2013

1 Mr. Pornchai Rujiprapa Chairperson Jan. 1 - Jan. 31 2 Mrs. Anchalee Chavanich Chairperson Feb. 12 - Dec. 31 3 Mr. Kurujit Nakornthap Director Jan. 1 - Dec. 31 4 Mr. Trakul Winitnaiyapak Director Jan. 1 - Dec. 31 5 Mr. Sukit Charoenrattanakul Director Jan. 1 - Feb. 11 6 Mr. Porametee Vimolsiri Director Jan 1 - Dec. 31 7 Mr. Prawit Sarakitprija* Director Jan. 1 - Sept. 30 8 Mr. Kulit Sombatsiri Director Jan. 1 - Dec. 31 (Representative of Ministry of Finance)

9 Mrs. Amporn Nitisiri Director Jan. 1 - Dec. 31 10 Mr. Chuan Sirinantporn Director Feb. 12 - Dec. 31 11 Mr. Surachai Tansitpong Director Jan. 1 - Dec. 31 12 Mr. Yongyutt Chaipromprasith Director Jan. 1 - Dec. 31 13 Mr. Prachuab Ujjin Director Feb. 12 - Dec. 31 14 EGAT Governor Director (Ex-officio) Jan. 1 - Jul. 30 (Mr. Sutat Patmasiriwat)** & Secretary 15 EGAT Governor Director (Ex-officio) Jul. 31 - Dec. 31 (Mr. Soonchai Kumnoonsate)*** & Secretary

41

1.4 Board Members Holding Office in EGAT’s Affiliates

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.

No. Name Position in EGAT’s Term of Office Affiliates in 2013

Electricity Generating Public Company Limited (EGCO)

1. Mr. Pornchai Rujiprapa Chairman Jan. 1 - Dec. 31 2. Mr. Kulit Sombatsiri Director Jan. 1 - Dec. 31

Ratchaburi Electricity Generating Holding Public Company Limited (RATCH)

1. Mr. Kurujit Nakornthap Chairman Jan. 1 - Dec. 31 2. Mr. Trakul Winitnaiyapak Director Jan. 1 - Dec. 31 3. Mr. Surachai Tansitpong Director Jan. 1 - Apr. 31 4. Mr. Sutat Patmasiriwat Director Jan. 1 - Oct. 1 5. Mr. Soonchai Kumnoonsate Director Feb. 1 - Dec. 31 6. Mr. Prachuab Ujjin Director Apr. 24 - Dec. 31

EGAT International Company Limited (EGATi)

1. Mr. Sutat Patmasiriwat Chairman Jan. 1 - Sept. 30 2. Mr. Soonchai Kumnoonsate Chairman Oct. 24 - Dec. 31


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

Remark:-NewBoardofDirectorandExecutiveCommitteewereappointedonFebruary12and15,2013 respectively by replacingMr. Pornchai Rujiprapa byMrs. Anchalee Chavanich asChairperson

-Mr.SoonchaiKamnoonsatewasappointedEGATGovernorandCommitteeMember (Ex-officio)effectivefromJuly31,2013replacingMr.SutatPatmasiriwatwhoretiredonJuly30,2013.


1 Mr. Pornchai Rujiprapa Chairperson Jan. 1 - Jan. 31 2 Mrs. Anchalee Chavanich Chairperson Feb. 15 - Dec. 31 3 Mr. Kurujit Nakornthap Member Jan. 1 - Dec. 31 4 Mr. Trakul Winitnaiyapak Member Jan. 1 - Dec. 31 5 Mr. Kulit Sombatsiri Member Jan. 1 - Dec. 31 6 Mr. Prachuab Ujjin Member Feb. 15 - Dec. 31 7 Mr. Sutat Patmasiriwat Member (Ex-officio) Jan. 1 - July 30 & Secretary 8 Mr. Soonchai Kumnoonsate Member (Ex-officio) July 31 - Dec. 31 & Secretary

43

2.2 Audit Committee


• 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

Remark: * Appointedasmemberof theAuditCommittee fromNovember4,2011 to January31,2013andappointedasChairmanonFebruary15,2013replacingMr.SurachaiTansitpongwhocompletedhistermofoffice.

ResignedfromEGATBoardofDirectorsonOctober1,2013.

**AppointedasmemberoftheAuditCommitteeinthe2/2013meetingreplacingMr.PrawitSarakitprija,Chairman

No Name Position Term of Office in 2013

1 Mr. Surachai Tansitpong Chairman Jan. 1 - Jan. 31 2 Mr. Prawit Sarakitprija* Member Jan. 1 - Jan. 31 Chairman Feb. 15 - Sept. 30 3 Mr. Yongyutt Chaipromprasith** Member Feb. 15 - Dec. 31 4 Mr. Porametee Vimolsiri Member Jan. 1 - Dec. 31 5 Assistant Governor - Internal Audit Secretary Jan. 1 - Dec. 31 (Ex-officio)


2.3 Enterprise Risk Management Committee


• 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

2.4 Corporate Governance Committee


• 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


1 Mr. Kurujit Nakornthap Chairman Jan. 1 - Dec. 31 2 Mr. Sukit Charoenrattanakul Member Jan. 1 - Jan. 31 3 Mr. Yongyutt Chaipromprasith Member Jan. 1 - Jan. 31 4 Mr. Prachuab Ujjin Member Feb. 15 - Dec. 31 5 Mr. Chuan Sirinantporn Member Feb. 15 - Dec. 31 6 Deputy Governor - Policy and Member & Secretary Jan. 1 - Dec. 31 Planning (Ex-officio)

45

Members of Corporate Governance Committee

2.5 Human Resources Committee


• 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


1 Mr. Trakul Winitnaiyapak Chairman Jan. 1 - Dec. 31 2 Mr. Kulit Sombatsiri Member Jan. 1 - Dec. 31 3 Deputy Governor - Administration Member Jan. 1 - Dec. 31 4 Deputy Governor - Corporate Social Affairs Member Jan. 1 - Dec. 31 5 Assistant Governor - Human Resources Member Jan. 1 - Dec. 31 6 Director of the Office of the Governor Secretary Jan. 1 - Dec. 31 (Ex-officio)


1 Mr. Sukit Charoenrattanakul Chairperson Jan. 1 - Feb. 11 2 Mrs. Amporn Nitisiri Member Jan. 1 - Jan. 31 Chairperson Feb. 15 - Dec. 31 3 Mr. Chuan Sirinantporn Member Feb. 15 - Dec. 31 4 EGAT Governor Member Feb. 15 - Dec. 31 5 Deputy Governor - Administration Member Jan. 1 - Dec. 31 6 Assistant Governor - Human Resources Member & Secretary Jan. 1 - Dec. 31 (Ex-officio)


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

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


1. EGAT Board of Directors Chairperson Jan. 1 - Jan. 31 (Mr. Pornchai Rujiprapa) (Ex-officio) 2 EGAT Board of Directors Chairperson Feb. 15 - Dec. 31 (Mrs. Anchalee Chavanich) (Ex-officio) 3 Mr. Kurujit Nakornthap Member Jan. 1 - Dec. 31 4 Mr. Trakul Winitnaiyapak Member Jan. 1 - Dec. 31 5 Mr. Surachai Tansitpong Member Jan. 1 - Jan. 31 6 Mr. Santad Jirayuwat Member Jan. 1 - Jan. 31 7 Mr. Apichart Dilogsopon Member Jan. 1 - Dec. 31 8 Mr. Wirash Kanchanapibul Member Feb. 15 - Dec. 31 9 EGAT Governor Member & Secretary Jan. 1 - Dec. 31 (Ex-officio)


1 EGAT Governor Chairman Jan. 1 - Dec. 31 (Ex-officio) 2 Mr. Kurujit Nakornthap Member Jan. 1 - Dec. 31 3 Deputy Governors Member Jan. 1 - Dec. 31 4 Deputy Governor - Administration Member & Secretary Jan. 1 - Dec. 31 (Ex-officio)

47

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

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


1 EGAT Governor Chairman May 28 - Dec. 31

(Ex-officio)

2 Mrs. Amporn Nitisiri Member May 28 - Dec. 31

3 Mr. Wirash Kanchanapibul Member May 28 - Dec. 31

4 Deputy Governor - Administration Member & Secretary May 28 - Dec. 31

5 Assistant Governor - Human Resources Assistant secretary May 28 - Dec. 31

No. Name Position

1 Mr. Kurujit Nakornthap Chairman 2 Mr. Yongyutt Chaipromprasith Member 3 Mr. Suthep Liamsiricharoen Member 4 Mr. Porametee Vimolsiri Member 5 Mrs. Siriporn Luengnual Member 6 Assistant Governor - Human Resources Secretary


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

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.

No Name Position

1 Mr. Kulit Sombatsiri Chairman 2 Mrs. Amporn Nitisiri Member 3 Mr. Prachuab Ujjin Member 4 Mrs. Panchanitta Bunkrong Member 5 Assistant Governor - Human Resources Secretary

49

Mee

ting

Atte

ndan

ce in

201

3

Remark:Timesofattendancebyeachmemberagainsttotalnumberofmeetingsconvenedduringhis/herperiodofoffice

No

Nam

e Bo

ard

of

Exec

utiv

e Au

dit

Corp

orat

e Hu

man

Co

mm

ittee

for

Co

mm

ittee

for

En

terp

rise

Com

mitt

ee f

or

Com

mitt

ee f

or

Subc

omm

ittee

Di

rect

ors

Com

mitt

ee

Com

mitt

ee

Gove

rnan

ce

Reso

urce

s De

puty

As

sista

nt

Risk

Ad

viso

r EG

AT

Hirin

g

Co

mm

ittee

Co

mm

ittee

Go

vern

or

Gove

rnor

&

Man

agem

ent

and

Expe

rt

Gove

rnor

Pa

ymen

t of

EGA

T

No

min

atio

n Di

visio

n Di

rect

or

Com

mitt

ee

Nom

inat

ion

Nom

inat

ion

Gove

rnor

No

min

atio

n

1

Mr.

Porn

chai

Ru

jipra

pa

1/1

1/1

2

Mrs

. Anc

hale

e Ch

avan

ich

11/1

1 13

/13

1/

1 3

M

r. Ku

rujit

Na

korn

thap

12

/12

14/1

4

1/1

4/4

3/3

6/

6 4

M

r. Tr

akul

W

initn

aiya

pak

9/12

10

/14

4/

4

0/1

5

Mr.

Sukit

Ch

aroe

nrat

tana

kul

1/1

1/

4 6

M

r. Po

ram

etee

Vi

mol

siri

10/1

2 14

/14

9/10

4/

6 7

M

r. Pr

awit

Sara

kitpr

ija

4/9

8/

10 8

M

r. Ku

lit

Som

bats

iri

9/12

12

/14

4/

4

2/

2 9

M

r. Su

rach

ai

Tans

itpon

g 1/

1

1/1

10

Mrs

. Am

porn

Ni

tisiri

11

/12

3/

3

1/1

0/

2 1

1 M

r. Ch

uan

Sirin

antp

orn

9/12

0/

3 1

2 M

r. Yo

ngyu

tt Ch

aipr

ompr

asith

11

/12

10

/10

6/6

13

Mr.

Prac

huab

Uj

jin

11/1

1 12

/13

3/

3

2/

2 1

4 M

r. Ap

ichar

t Di

logs

opho

n

1/1

15

Mr.

Suth

ep

Liam

sirich

areo

n

5/6

16

Mrs

. Siri

porn

Lu

engn

ual

6/

6 1

7 M

r. W

irash

Ka

ncha

napi

bul

1/1

18

Mrs

. Pan

chan

itta

Bunk

rong

2/

2 1

9 M

r. Su

tat

Patm

asiri

wat

7/

7 8/

8

1/

1 2

0 M

r. So

onch

ai

Kum

noon

sate

5/

5 6/

6


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.

51

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 Total Allowance (Baht) (Baht) (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

53

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.


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


• Energy Literacy Leadership Program, Thailand Energy Academy

Work Experience

2011 - Present President, Thai Industrial Estate and Strategic Partner Association

2000 - Present Chairman, Coral and Coastal Conservation Foundation

2000 - Present Chairman, Thai Industrial Estate Foundation

2004 - 2010 Advisor, Industrial Estate Authority of Thailand

2000 - 2004 Governor, Industrial Estate Authority of Thailand

Directorship/Management Position in Other State Enterprise/ Company

• President, Thai Industrial Estate and Strategic Partner Association

• Chairman, Coral and Coastal Conservation Foundation

• Chairman, Thai Industrial Estate Foundation

Amount/Value of Shares in Other Companies*

None

Connected Transaction in 2013

None

* RefersonlytosharesofcompanyinthesameindustryorbusinessinwhichEGAToperatesandtheamountoftheshares

heldisequaltoorhigherthan10percentofthetotalvotingrights

55

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 Deputy Permanent Secretary, Ministry of Energy

2008 - 2010 Director - General, Department of Mineral Fuels, Ministry of Energy

2006 - 2008 Deputy Permanent Secretary, Ministry of Energy

2006 Deputy Director - General, Department of Mineral Fuels, Ministry of Energy


• Chairman, Ratchaburi Electricity Generating Holding Public Company Limited (RATCH)

• Director, ESSO (Thailand) Public Company Limited

• Director, Electricity Generating Public Company Limited


None


None




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 Deputy Attorney - General, Office of the Attorney General

2005 - 2011 Inspector General, Office of the Attorney General

2005 - 2006 Director - General, Advisory Department, Office of the Attorney General

2003 - 2005 Director - General, International Affairs Department, Office of the Attorney General


• Director, Ratchaburi Electricity Generating Holding Public Company Limited (RATCH)

• Director, Provincial Waterworks Authority


None


None



57

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


• 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


• 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


None


None




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 Inspector General, Ministry of Finance

2010 - 2011 Advisor, State Enterprise Policy Office, Ministry of Finance

2008 - 2010 Deputy Director, State Enterprise Policy Office, Ministry of Finance

2007 - 2008 Director, Bureau of Monetary Management, Treasury Department, Ministry of Finance

2006 - 2008 Deputy Secretary General, National Telecom Commission


• Director, TOT Public Company Limited

• Director, Krungthai Asset Management PLC


None


None



59

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


• Financial Statements for Directors Program (FSD) (Class 16/2012), Thai Institute of Directors

Work Experience

2008 - 2011 Director - General, Department of Labor Protection and Welfare, Ministry of Labor

2007 Inspector - General, Office of Permanent Secretary, Ministry of Labor

2006 Advisor, Office of Permanent Secretary, Ministry of Labor


-


None


None




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


• Certificate Course in Public Law, Thammasat University

• Senior Administrator Course, Institute of Administration Development


Work Experience

2012 - 2013 Director - General, Department of Provincial Administration

2011 - 2012 Governor, Nakhon Ratchasima Province

2010 - 2011 Governor, Phrae Province

2007 - 2010 Governor, Ubon Ratchathani Province


-


None


None



61

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 Director, Krungthai Bank (Plc.)

2012 - Present Sub-Committee on Strategic Management, National Health Security Office

2005 - Present Chairman and Chief Executive Officer, Aquarius Estate Company Limited


• Chairman and Chief Executive Officer, Aquarius Estate Company Limited

• Director, MCOT (Plc.)

• Director, Krungthai Bank (Plc.)


None


None




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 Deputy Director, Ratchaburi Electricity Generating Holding Public Company Limited (RATCH)

2002 Managing Director, Ratchaburi Electricity Generating Company Limited

1999 Manager, Ratchaburi Power Plant, EGAT

1997 Director, Efficiency Control Division, EGAT


• Committee, RATCH O&M Company Limited

• Committee, Ratchaburi Power Company Limited

• Committee, Chubu Ratchaburi Electric Service Company Limited

• Committee, Tri-Energy Company Limited


None


None



63

Mr. Soonchai Kumnoonsate

Age 57

EGAT GovernorDirector (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 EGAT Governor

2011 - 2013 Deputy Governor - Power Plant Development, EGAT

2010 - 2011 Assistant Governor - Fuel, EGAT


• Chairman, EGAT International Company Limited

• Director, Ratchaburi Electricity Generating Holding Public Company Limited

Amount/value of Shares in Other Companies*

None


None




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



Work Experience

2012 - Present Former Permanent Secretary, Ministry of Science and Technology

2010 - 2012 Permanent Secretary, Ministry of Science and Technology

2006 - 2010 Permanent Secretary, Ministry of Energy

2003 - 2006 Deputy Permanent Secretary, Ministry of Energy

1999 - 2003 Deputy Secretary General, National Economic and Social Development Board


• Chairman, Electricity Generating Public Company Limited (EGCO)

• Chairman, National Innovation Board


None


None



-ThetermofofficewascompletedonJanuary31,2013.

65

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


Work Experience

2012 - Present Visiting Lecturer, College of Local Administration, Khon Kaen University

Visiting Lecturer, Faculty of Political Sciences, Ramkhamhaeng University

2011 - 2012 Director - General, Department of Provincial Administration

2009 - 2011 Inspector General, Ministry of Interior, Acting Director General, Department of Provincial Administration

2008 - 2009 Director - General, Department of Local Administration

2008 - 2008 Deputy Permanent Secretary, Ministry of Interior


• Director, Provincial Waterworks Authority of Thailand


None


None



-ThetermofofficewascompletedonFebruary11,2013.


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.


• 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 Advisor in Public Debt, Public Debt Management Office, Ministry of Finance

2006 - 2008 Deputy Director - General, Public Debt Management Office, Ministry of Finance

2003 - 2006 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


None


None



-ThetermofofficewascompletedonOctober1,2013.

67

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


• 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 Chairman of the Executive Board, Siam Geotechnic Company Limited

2008 - 2009 Permanent Secretary, Ministry of Transport

2006 - 2007 Deputy Permanent Secretary, Ministry of Transport

2002 - 2005 Director - General, Department of Rural Roads, Ministry of Transport


• Chairman of the Executive Board, Siam Geotechnic Company Limited

• Director, Dhanasidhi Company Limited

Amount/value of Share in Other Companies*

None


None



-ThetermofofficewascompletedonJanuary31,2013.


Mr. Sutat Patmasiriwat

Age 60

EGAT Governor

Director (Ex-officio)

Education/Training

• B. Eng (Mechanical Engineering), Chulalongkorn University


• 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


• 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


heldisequaltoorhigherthan10percentofthetotalvotingrights.

-ThetermofofficewascompletedonJuly30,2013.

69

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





Work Experience

July 31, 2013 EGAT Governor

October 1, 2011 Deputy Governor - Power Plant Development

January 6, 2010 Assistant Governor - Fuel


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)


• 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


• 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

71

Mr. Mongkol Sakulkao

Age 60

Deputy Governor - Policy and Planning

Education/Training

• Master of Engineering (Water Resources Engineering), Asian Institute of Technology

• Bachelor of Engineering (Mechanical Engineering), Kasetsart University


• Thailand and ASEAN Economic Community (AEC), King Prajadhipok’s Institute



• Masterful Coaching Workshop, Hay Group


• ASEAN Executive Development Program, Thammasat Business School

Work Experience

October 1, 2011 Deputy Governor - Policy and Planning

October 1, 2008 Assistant Governor - Planning

Mr. Piboon Buacham

Age 59

Deputy Governor - Administration

Education/Training

• Master of Science in Applied Statistics (Hons.), National Institute of Development Administration

• Bachelor of Engineering, (Electrical Engineering), Chulalongkorn University


• Public Administration and Law for Executive Course, King Prajadhipok’s Institute

Work Experience

October 1, 2012 Deputy Governor - Administration

October 1, 2008 Assistant Governor -

System Control


Mr. Poonsuk Tochanakarn

Age 59

Deputy Governor - Account and Finance,

Serving as Chief Financial Officer (CFO)

Education/Training

• Bachelor of Accountancy, Chulalongkorn University


• Executive Finance Management Program, Economics and Finance Academy

Work Experience

October 1, 2012 Deputy Governor - Account and Finance, Serving as Chief Financial Officer (CFO)

October 1, 2011 Assistant Governor - Account

January 6, 2010 Assistant Governor - Internal Audit Bureau

Mr. Prapas Vichakul

Age 59

Deputy Governor - Corporate Social Affairs,

Serving as EGAT Spokesman

Education/Training

• 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




• Executive Program for Growing Companies, Stanford Graduate School of Business, U.S.A.

Work Experience

October 1, 2013 Deputy Governor - Corporate Social Affairs, Serving as EGAT Spokesman

October 1, 2011 Assistant Governor - Fuel

January 6, 2010 Assistant Governor - Mae Moh Mine

73

Mr. Suthon Boonprasong

Age 56

Deputy Governor - Transmission System

Education/Training

• Master of Business Administration, Chiang Mai University

• Bachelor of Economics, Sukhothai Thammathirat Open University

• Bachelor of Law, Ramkhamhaeng University




• Public Economics for Executives, King Prajadhipok’s Institute

• Senior Command Course, Institute of Police Administration Development




Work Experience

October 1, 2013 Deputy Governor - Transmission System

October 1, 2010 Assistant Governor - Transmission System Operation

January 6, 2010 Assistant Governor - Corporate Social Affairs and Environment

Mr. Somyos Theravongsakul

Age 60

Deputy Governor - Generation

Education/Training

• 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 Deputy Governor - Generation

January 6, 2010 Assistant Governor - Generation 2


Mr. Ratanachai Namwong

Age 57

Deputy Governor - Power Plant Development

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



Work Experience

October 1, 2013 Deputy Governor - Power Plant Development

October 1, 2010 Assistant Governor - Power Plant Engineering

Mr. Rum Herabat

Age 57

Deputy Governor - Fuel

Education/Training



• Royal Thai Army War College Course

Work Experience

October 1, 2013 Deputy Governor - Fuel

October 1, 2011 Assistant Governor - Operation and Maintenance Business

75

Mr. Kornrasit Pakchotanon

Age 55

Deputy Governor - Business Development

Education/Training



• Public Economics for the Executives, King Prajadhipok’s Institute


Work Experience

October 1, 2013 Deputy Governor - Business Development

October 1, 2011 Assistant Governor - Generation 3

Mr. Boonmarg Smitthileela

Age 57

Deputy Governor - Transmission System Development

Education/Training



Work Experience

October 1, 2013 Deputy Governor - Transmission System Development

October 1, 2011 Assistant Governor - Transmission System Maintenance


Executives Posted to EGAT Affiliates

Mr. Sahust Pratuknukul

Age 58

Engineer Level 14 to the Governor

Appointed as President, Electricity Generating Public Company Limited

Education/Training


• The Joint State - Private Course, National Defense College

• Executive Course, Capital Market Academy


• Senior Executive Development Program (Class 1), General Electric Company, U.S.A.



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

Mr. Thana Putarungsi

Age 58

Senior Deputy Governor to the Governor

Appointed as Senior Executive Vice President and Acting President, EGAT International Company Limited

Education/Training

• Master of Engineering (Electrical Engineering), Kasetsart University

• Bachelor of Engineering, (Electrical Engineering), Kasetsart University


• 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


• Financial Statement for Directors, Thai Institute of Directors




Work Experience

October 1, 2013 Senior Deputy Governor to the Governor Appointed as Senior Executive Vice President and Acting President, EGAT International Company Limited

October 1, 2010 Deputy Governor - Transmission System, EGAT

October 1, 2008 Assistant Governor - Transmission System Operation, EGAT

77

MR. Pongdith Potchana

Age 58


Appointed as Chief Executive Officer, Ratchaburi Electricity Generating Holding Public Company Limited

Education/Training

• Master of Engineering (Civil Engineering), Georgia Institute of Technology, U.S.A.

• Bachelor of Engineering, (Civil Engineering), Chiang Mai University


• 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 Engineer Level 14 to the Governor Appointed as Chief Executive Officer, Ratchaburi Electricity Generating Holding Public Company Limited

October 1, 2012 Deputy Governor - Corporate Social Affairs, Serving as EGAT Spokesman, EGAT

July 1, 2012 Assistant Governor - Corporate Social Affairs, EGAT

October 1, 2010 Assistant Governor - Corporate Social Affairs and Environment, EGAT

Mr. Paisan Katchasuwanmanee

Age 58


Appointed as Executive Vice President – Development, EGAT International Company Limited

Education/Training

• 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


• Public Economics for the Executives, King Prajadhipok’s Institute


• Psychological Operations for Management, Institute of Security Psychology

• Senior Executive Development Program (class 2), Foundation for International Human Resource Development



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


Executives Retired on October 1, 2013

Mr. Viwat Saeneemanomai Deputy Governor - Transmission System Development

(October 1, 2011 - September 30, 2013)

Mr. Somboon Arayaskul Engineer Level 14 to the Governor

Senior Executive Vice President and Acting President, EGAT International Company Limited


Mr. Surasak Supavititpatanana Deputy Governor - Generation

(January 6, 2010 - September 30, 2013)

Mr. Thanakorn Poolthavee Deputy Governor - Fuel

(January 6, 2010 - September 30, 2013)

Mr. Pithsanu Tongveerakul Deputy Governor - Business Development



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

81

- “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 Micro-Hydropower 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


• 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.

83

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.


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

b) Society as a whole

c) Communities in the vicinity of the power plants and transmis-sion lines

Need and Expectation

• 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

• Responsibility for the impact from the operation

• Supporting to minimize green-house effect

• Participation in different social activities

• 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

Delivered Values

• 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

• Submission of income to the government

• Improving management quality

• Provision of sufficient power for the demand

• Smart Grid Roadmap

• Focusing on CSR in process• Using power efficiently• Power conservation• Volunteer projects

• Safety• Participation of EGAT and the

community in developing the systematic community relations which strengthens the economics of the community

• Provision of local employment

Communication Channel

• Meeting, seminar• Activities as required by the

government policy and government organizations

• Formal and informal meeting• Annual report, website

• Meeting, seminar• Report• Annual report, website

• Meeting and seminar with MEA and PEA

• 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

85

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 (2012-2016) 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.

Stakeholders

d) EGAT Employees

e) Private sector

Need and Expectation

• Acceptance and involvement• Progress in profession• Security in life• Pride in working as EGAT

employees

• Sufficient power• Security and safety• Reasonable price• Less environmental impact• Transparency

Delivered Values

• 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

• Being good organization of the society

• Promotion of Demand Side Management (DSM)

• Greenhouse gas reduction

Communication Channel

• Meeting, teleconference• Weekly newsletter• Bi-monthly newsletter• Poster• Intercom• EGAT TV via intranet and email• Meeting with the executives• Seminar• Annual QC

• EGAT newsletter, newspaper, radio, television

• Survey• Call center• Seminar, meeting, letters,

website, email, visit


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.

87

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.


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

89

• 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


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.

91

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.


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,

93

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.


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 Ayutthaya Natural Gas 768.7 Apr. 2014 Block 42. Chana Combined Cycle Songkhla Natural Gas 782.2 Apr. 2014 Block 23. North Bangkok Nonthaburi Natural Gas 848.3 Jan. 2016 Combined Cycle Block 2 4. Mae Moh Lampang Lignite 540.0 Jan. 2018 (Replacement of Units 4-7)5. Krabi Coal Power Project Krabi Coal 800.0 Jun. 2019 (Clean Coal Technology)6. Renewable Energy - Wind, solar, hydro 718.7 2014-2019 Power Projects

Total 4,457.9

95

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.

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.

Project Location Fuel Contractual Scheduled (Province) Capacity Commercial (MW) Operational Date (SCOD)

1. Gulf JP NS Co.,Ltd. Saraburi Natural Gas 1,600 Jun./Dec. 2014 Blocks 1-22. Gulf JP UT Co.,Ltd. Ayutthaya Natural Gas 1,600 Jun./Dec. 2015 Blocks 1-23. Electricity Generating Plc. Nakhon Si Natural Gas 930 Jul. 2016 Thammarat4. National Power Supply Chachoengsao Coal 540 Nov. 2016/ Co., Ltd. Unit 1-4 Mar. 20175. Chonburi Power Chon Buri Natural Gas 2,500 Mar./Oct. 2021 Generation Co.,Ltd. Mar./Oct. 20226. Siam Eastern Power Rayong Natural Gas 2,500 Mar./Oct. 2023 Co.,Ltd. Mar./Oct. 2024

Total 9,670


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.

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.

Project Fuel Contractual Scheduled Capacity Commercial (MW) Operational Date (SCOD)

1. Hong Sa Lignite Units 1-3 Lignite 1,473 Jun./Nov. 2015 Mar. 20162. Xe-Pian Xe-Namnoy Hydro 354 Feb. 20193. Nam Ngiep 1 Hydro 269 Jul. 20194. Xayaburi Hydro 1,220 Oct. 2019

Total 3,316

ChanaCombinedCyclePowerPlantBlock2

97

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.

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.

WangNoiCombinedCyclePowerPlantBlock4


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:

KhunDanPrakancholDamProject

Projects Location Capacity Scheduled (Province) (MW) Commercial Operational Date (SCOD)

Khun Dan Prakanchol Dam Nakhon Nayok 1x10 = 10 June 2013 Mae Klong Dam Kanchanaburi 2x6 = 12 July 2013 Pasak Jolasid Dam Lop Buri 1x6.7 = 6.7 March 2014 Kwae Noi Bamrungdan Dam Phitsanulok 2x15 = 30 June 2015 Thap Sakae Solar Prachuap Khiri Khan 1x5 = 5 December 2014Power Project

NorthBangkokCombinedCyclePowerPlantBlock2

99

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).


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.

101

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 circuit-kilometers. 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 Lignite-Fired 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.


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.

103

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 Xepian-Xenamnoy Hydropower Plan Project which has the generating capacity of 3×130 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.


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.

105

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:


Thechartshowingintegratedreclamationofcoolingblowdown

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.

107

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.

Waterfreevortex

Turbineanditsoperationaltest

Waterfreevortexmicrohydropowerplantwithitswaterlevelof0.7-0.9metersandcapacityof1kW.


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.

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.

Roboticsystemforwelding

109

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.

Integrationofpowergridandinformationinfrastructures


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

111

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.


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.

113

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.

115

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.


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.

117

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.


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

119

- 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:


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.

121

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:


- 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:

123

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.


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.

125

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.


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

127

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.


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.

129

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.


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)”.

131

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.


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.

133

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.


Key Statistical Data

System Installed Generating Capacity

2013 2012 IncreaseType of Power Plant

MW Percentage 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 44.18Neighboring 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 6.14

Grand Total 33,681.02 100.00 32,601.02 100.00 3.31

135

Monthly Peak Generation Requirement

Monthly Peak Generation Increase/ Month Requirement (MW) (Decrease)

2013 2012 MW Percentage

January 23,390.78 22,251.10 1,139.68 5.12 February 24,589.40 23,554.40 1,035.00 4.39 March 26,422.97 24,571.51 1,851.46 7.53 April 26,324.61 26,121.10 203.51 0.78 May* 26,598.14 25,207.27 1,390.87 5.52 June 25,038.04 23,927.30 1,110.74 4.64 July 24,568.41 23,932.60 635.81 2.66 August 23,941.68 24,155.70 (214.02) (0.89) September 24,363.69 24,009.30 354.39 1.48 October 23,741.50 24,131.33 (389.83) (1.62) November 24,251.18 24,657.91 (406.73) (1.65) December 22,905.22 20,395.42 2,509.80 12.31 Yearly Peak 26,598.14 26,121.10 477.04 1.83 Generation Requirement

* 2013peakgenerationrequirementoccurredonMay16,2013at14.00hours 2012peakgenerationrequirementoccurredonApril26,2012at14.30hours

Monthly Energy Generation Requirement

Monthly Energy Generation Increase/ Month Requirement (Million kWh) (Decrease)

2013 2012 Million kWh Percentage

January 13,644.32 13,036.23 606.16 4.65 February 13,476.66 13,579.14 (102.48) (0.75) March 15,730.69 15,252.02 479.43 3.14 April 14,674.50 14,380.65 292.72 2.04 May 16,058.70 15,411.17 645.90 4.19 June 14,793.29 14,597.00 196.29 1.34 July 14,748.06 14,847.93 (99.87) (0.67) August 14,857.03 14,652.29 199.36 1.36 September 14,403.65 14,209.28 193.61 1.36 October 14,572.38 14,792.85 (202.47) (1.49) November 14,176.28 14,486.75 (310.47) (2.14) December 12,399.89 13,959.81 (1,559.92) (11.17) Total 173,535.45 173,205.13 330.32 0.19


Gross Energy Generation and Purchase (by type of fuel)

2013 2012 Increase/ Source (Decrease) Million kWh Percentage Million kWh Percentage Percentage

EGAT’s Power Plants

Natural gas 48,234.06 27.80 51,040.61 29.47 (5.50)Lignite 17,109.59 9.86 16,817.40 9.71 1.74Hydropower 5,390.33 3.11 8,408.36 4.85 (35.89)Fuel oil 1,201.19 0.69 1,177.45 0.68 2.02Diesel oil 173.25 0.10 55.46 0.03 212.39Renewable energy 5.52 - 3.57 0.01 54.62EGAT’s Total Generation 72,113.94 41.56 77,502.85 44.75 (6.95)

Purchase from

Domestic Private Power Plants

- IPPs Natural gas 51,518.52 29.69 55,588.57 32.09 (7.32) Coal 14,277.85 8.23 13,707.39 7.91 4.16 Fuel oil 195.23 0.11 727.24 0.42 (73.15) Diesel oil 189.71 0.11 77.58 0.04 144.53Subtotal 66,181.31 38.14 70,100.78 40.47 (5.59)

- SPPs Natural gas 17,252.64 9.94 10,434.28 6.02 65.35 Coal 1,999.15 1.15 2,009.34 1.16 (0.51) Hydropower 29.20 0.02 29.81 0.02 (2.05) Fuel oil 28.08 0.03 29.97 0.02 (6.31) Biomass 2,850.55 1.64 2,527.99 1.46 12.76 Renewable energy 508.37 0.29 135.72 0.08 274.57Subtotal 22,667.99 13.06 15,167.11 8.76 49.45

Neighboring Countries

- Laos 12,427.54 7.16 10,293.60 5.94 20.73- Malaysia 144.67 0.09 140.79 0.08 2.76Subtotal 12,572.21 7.24 10,434.39 6.02 20.49

Total Energy Purchase 101,421.51 58.44 95,702.28 55.25 5.98

Grand Total 173,535.45 100.00 173,205.13 100.00 0.19

137

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 0.66Authority (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) - MalaysiaElectricité 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

Customer

2013 2012 Increase/ (Decrease) Baht/kWh Baht/kWh Percentage

Metropolitan Electricity Authority (MEA) 3.04 2.79 8.85

Provincial Electricity Authority (PEA) 3.02 2.81 7.63

Direct customers 3.18 3.01 5.78

Standby power supply 6.51 5.76 12.94

Electricité du Laos (EDL) 1.65 1.83 (9.80)

Tenaga Nasional Berhad 7.28 7.69 (5.32)(TNB) - Malaysia

Electricité du Cambodge (EDC) 3.65 3.41 7.14

Other minor customers 2.11 2.05 3.03

Overall Average Sales Price 3.02 2.80 7.97


Transmission System

Voltage Level

2013 2012

(kV)

Line Length Number of Transformer Line Length Number of Transformer

(Circuit-Kilometers) Substations Capacity (Circuit-Kilometers) Substations Capacity

(MVA) (MVA)

500 4,167.17 11 20,849.99 3,884.23 11 20,849.99

230 14,505.65 71 51,160.04 14,060.13 71 50,760.04

132 8.70 - 133.40 8.70 - 133.40

115 13,660.65 131 14,617.49 13,561.53 130 14,598.74

69 19.00 - - 19.00 - -

300 (HVDC) 23.07 - 388.02 23.07 - 388.02

Total 32,384.24 213 87,148.94 31,556.66 212 86,730.19

Fuel Consumption

Increase/ Type of Fuel 2013 2012 (Decrease) Percentage

Natural gas (million cubic feet)* 412,701.72 436,096.03 (5.36)

Fuel oil (million liters)* 316.82 320.52 (1.15)

Lignite (million tons) 16.88 16.78 0.60

Diesel oil (million liters)* 60.35 17.84 238.28

*ExcludinggasandoilsuppliesprovidedforREGCO,KEGCO,andRGCO

139

Reservoir Operation

2013 2012 Increase/ Operation (Decrease) Percentage

Total reservoir capacity 62,427 62,290 - (million cubic meters) * Total storage at year end 22,776 21,255 7.16(million cubic meters) *Total water inflow (million cubic meters) * 37,240 33,009 12.82Total water release (million cubic meters) * - Passed through generators 32,064 39,502 (18.83) - Extra release through spillways 507 - 100.00 - Extra release for irrigation ** 348 292 19.18 - Evaporation 3,112 3,176 (2.02)Total water release 36,031 42,971 (16.15)Water pumped up into the 196 68 188.24upper reservoir (million cubic meters) **Generated energy (million kWh) *** 5,390 8,407 (35.88)Water used for energy generation 6.68 5.10 30.98(cubic meters/kWh)

* ExcludingPakMunDam,LamtakhongDam,andotherminihydropowerplants** WaterpumpedupintoBhumibolDam,SrinagarindDam,andLamtakongDam*** AllofEGAT’shydropowerplants

Workforce

at December 2013 at December 2012 Increase/ Educational Level Number of Percentage Number of Percentage (Decrease) Persons Persons Percentage

Bachelor’s Degree 7,869 34.28 7,543 33.05 4.32and HigherDiploma/Higher Vocational 8,217 35.80 7,978 34.95 3.00CertificateVocational Certificate 3,055 13.31 3,201 14.02 (4.56)Others 3,813 16.61 4,103 17.98 (7.07)Total 22,954 100.00 22,825 100.00 0.57


Auditor’s Report

(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 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 of income, comprehensive income, changes in owners’ equity and cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Consolidated and Separate Financial Statements Management is responsible for the preparation and fair presentation of these consolidated and

separate financial statements in accordance with Thai Financial Reporting Standards, and for such internal control as management determines is necessary to enable the preparation of the consolidated and separate financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility The responsibility of The Office of the Auditor General of Thailand is to express an opinion

on these consolidated and separate financial statements based on the audits. The Office of the Auditor General of Thailand conducted the audit in accordance with Thai Standards on Auditing. Those standards require that the Office of the Auditor General of Thailand comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated and separate financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and 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

สํา 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

(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 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 of income, comprehensive income, changes in owners’ equity and cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Consolidated and Separate Financial Statements Management is responsible for the preparation and fair presentation of these consolidated and

separate financial statements in accordance with Thai Financial Reporting Standards, and for such internal control as management determines is necessary to enable the preparation of the consolidated and separate financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility The responsibility of The Office of the Auditor General of Thailand is to express an opinion

on these consolidated and separate financial statements based on the audits. The Office of the Auditor General of Thailand conducted the audit in accordance with Thai Standards on Auditing. Those standards require that the Office of the Auditor General of Thailand comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated and separate financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and 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

สํา 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

141

2

fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

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 the Auditor General of Thailand’s audit opinion.

Opinion 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 position of Electricity Generating Authority of Thailand and its subsidiaries, and of Electricity Generating Authority of Thailand, respectively, as at December 31, 2013, and their consolidated and separate financial performance and their consolidated and separate cash flows for the year then ended in accordance with Thai Financial Reporting Standards.

(Signed) Prapee Ankinandana

(Prapee Ankinandana)

Deputy Auditor General

Acting Auditor General

(Signed) Adisorn Puawaranukroa

(Adisorn Puawaranukroa)

Director of Financial Audit Office No. 8.

สํา 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 March 24, 2014

2

fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

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 the Auditor General of Thailand’s audit opinion.

Opinion 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 position of Electricity Generating Authority of Thailand and its subsidiaries, and of Electricity Generating Authority of Thailand, respectively, as at December 31, 2013, and their consolidated and separate financial performance and their consolidated and separate cash flows for the year then ended in accordance with Thai Financial Reporting Standards.

(Signed) Prapee Ankinandana

(Prapee Ankinandana)

Deputy Auditor General

Acting Auditor General

(Signed) Adisorn Puawaranukroa

(Adisorn Puawaranukroa)

Director of Financial Audit Office No. 8.

สํา 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 March 24, 2014


Financial Statements

Unit : Baht Notes Consolidated financial statement Separate financial statement

2013 2012 2013 2012(Restated)

ASSETSCURRENT 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 6.3 55,891,616,198 47,819,131,996 55,294,331,530 47,353,258,355 Trade accounts receivable - related parties 6.4.1 3,087,652,761 2,196,855,857 3,643,517,639 2,509,755,872 Accrued revenue from electric energy sales

according to automatic tariff adjustment (Ft) 6.5 529,599,717 6,529,895,779 529,599,717 6,529,895,779 Other accounts receivable 6.6 8,481,754,537 7,205,349,921 7,982,861,760 6,536,839,712 Current portion of long-term loans to related parties 6.4.2 - 62,500,000 - - Materials and supplies 6.7 13,103,841,970 12,631,918,829 10,533,246,348 10,414,636,705 Other current assets

Derivative assets 6.8.1 121,136 - 121,136 - Others 132,196,442 93,362,218 - -

Total current assets 185,374,277,278 130,620,646,928 170,175,371,017 113,234,894,008 NON-CURRENT ASSETS

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 6.9.4 - - 9,913,350,000 7,122,952,585 Investments in jointly controlled entities 6.9.3, 6.9.4 14,104,003,823 13,909,641,259 584,500,000 584,500,000 Other long-term investments 3,183,523,921 12,935,218,422 - 10,005,340,984 Property, plant and equipment 6.10 261,012,924,599 268,284,912,744 220,057,322,644 223,244,394,993 Work under construction 6.11 62,297,874,119 54,014,892,441 62,269,449,284 53,905,163,695 Goodwill 6.12 763,742,443 752,913,124 - - Other intangible assets 6.13 28,362,587,910 27,700,083,434 23,388,044,807 22,027,229,518 Land awaiting development 6.14 2,125,289,755 2,121,472,035 1,816,082,185 1,816,082,185 Deferred tax assets 6.15.1 141,025,159 129,882,869 - - Other non-current assets 6.16 3,293,403,202 7,062,730,872 1,581,218,270 1,896,520,378 Total non-current assets 393,006,351,530 402,649,430,378 321,197,517,423 322,189,734,571

TOTAL ASSETS 578,380,628,808 533,270,077,306 491,372,888,440 435,424,628,579

Notes to the financial statements are an integral part of these financial statements.

ELECTRICITY GENERATING AUTHORITY OF THAILAND AND ITS SUBSIDIARIESSTATEMENTS OF FINANCIAL POSITION

AS AT DECEMBER 31, 2013

(TRANSLATION)- 3 -

143

Unit : Baht Notes Consolidated financial statement Separate financial statement

2013 2012 2013 2012(Restated)

LIABILITIES AND EQUITYCURRENT LIABILITIES

Trade accounts payable - others 6.17 66,230,641,939 42,012,277,857 59,240,043,399 34,983,438,682 Trade accounts payable - related parties 6.4.3 7,622,278,324 8,157,161,024 15,947,732,882 11,974,052,504 Deferred revenue for electricity compensation 6.5 2,231,343,911 2,768,975,278 2,231,343,911 2,768,975,278 Other accounts payable 9,657,778,368 12,210,547,595 8,849,880,043 11,323,952,243 Short-term loans 9,774,215,414 2,700,000,000 - - Accrued interest expenses 1,227,648,844 1,166,100,704 989,752,178 927,933,843 Accrued remittance to the Ministry of Finance 6.18 9,466,293,684 8,077,994,513 9,466,293,684 8,077,994,513 Accrued expenses 5,210,277,256 5,450,498,674 5,200,132,196 5,368,338,728 Current portion of long - term loans 6.19 11,590,864,773 9,333,668,342 6,480,099,844 4,980,015,965 Current portion of finance lease liabilities 3,106,946 1,394,273 1,510,500 - Other current liabilities

Derivative liabilities 6.8.2 - 4,591,500 - 4,591,500 Others 88,349,789 39,951,445 - -

Total current liabilities 123,102,799,248 91,923,161,205 108,406,788,637 80,409,293,256 NON-CURRENT LIABILITIES

Long-term loans from related parties 6.4.4 1,186,296,943 1,358,280,353 - - Long-term loans 6.19 71,734,801,073 82,072,391,755 64,416,272,901 57,742,506,324 Deferred tax liabilities 6.15.1 1,942,951,121 2,185,544,715 - - Finance lease liabilities 4,951,813 1,037,602 1,384,625 - Employee benefit obligations 6.20 14,051,248,017 13,562,464,135 13,955,724,214 13,475,643,183 Provision liabilities for mine reclamation 6.21 2,080,313,567 2,047,399,372 2,080,313,567 2,047,399,372 Other non-current liabilities 6.22 17,195,843,540 15,145,872,091 16,602,058,760 14,503,747,639 Total non-current liabilities 108,196,406,074 116,372,990,023 97,055,754,067 87,769,296,518

TOTAL LIABILITIES 231,299,205,322 208,296,151,228 205,462,542,704 168,178,589,774 OWNERS' EQUITY

Contribution from the government 6.23 9,001,977,817 9,064,310,580 9,001,977,817 9,064,310,580 Surplus from royalty on state property service 474,767,280 474,767,280 474,767,280 474,767,280 Retained earnings

AppropriatedCapital expenditure appropriation 80,186,366,913 80,186,366,913 80,186,366,913 80,186,366,913

Unappropriated 224,710,045,449 203,428,380,429 197,685,039,974 178,958,400,280 Other components of owners' equity 1,554,899,904 1,714,915,271 (1,437,806,248) (1,437,806,248)

TOTAL EQUITY ATTRIBUTABLE TO OWNERS OF EGAT 315,928,057,363 294,868,740,473 285,910,345,736 267,246,038,805

NON-CONTROLLING INTERESTS 31,153,366,123 30,105,185,605 - - TOTAL OWNERS' EQUITY 347,081,423,486 324,973,926,078 285,910,345,736 267,246,038,805 TOTAL LIABILITIES AND OWNERS' EQUITY 578,380,628,808 533,270,077,306 491,372,888,440 435,424,628,579


(signed) Soonchai Kumnoonsate (signed) Poonsuk Tochanakarn(Mr. Soonchai Kumnoonsate) (Mr. Poonsuk Tochanakarn)

Director and Governor Deputy Governor - Account and Finance

ELECTRICITY GENERATING AUTHORITY OF THAILAND AND ITS SUBSIDIARIES STATEMENTS OF FINANCIAL POSITION

AS AT DECEMBER 31, 2013

(TRANSLATION)- 4 -


Unit : BahtNotes 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(Restated)

REVENUESRevenue from electric energy sales 512,820,461,091 486,243,700,769 510,178,670,654 482,675,345,412 Revenue from sales of other goods and services 6.24 24,092,877,109 26,748,195,076 26,046,692,421 30,376,199,254 Total revenue from sales and services 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 Total cost of sales and services 478,658,837,994 455,503,101,060 485,762,338,941 464,156,749,805

GROSS PROFIT 58,254,500,206 57,488,794,785 50,463,024,134 48,894,794,861 OTHER REVENUES 6.27 4,774,197,184 6,114,568,329 5,135,814,857 4,666,323,301 INCOME BEFORE EXPENSES 63,028,697,390 63,603,363,114 55,598,838,991 53,561,118,162 SELLING EXPENSES 143,546,015 131,852,220 141,543,687 130,072,296 ADMINISTRATIVE EXPENSES 16,006,773,493 17,568,480,611 14,036,488,965 15,907,624,928 OTHER EXPENSES 6.28 240,180,973 96,226,083 894,553,145 198,695,224 TOTAL EXPENSES 16,390,500,481 17,796,558,914 15,072,585,797 16,236,392,448 FINANCE COSTS 6.30 4,416,805,820 5,343,212,630 2,739,436,078 2,899,370,245 INCOME BEFORE SHARE OF PROFIT FROM INVESTMENTS 42,221,391,089 40,463,591,570 37,786,817,116 34,425,355,469 SHARE OF PROFIT FROM INVESTMENTS IN ASSOCIATES 6.29 2,057,685,427 2,992,828,855 - - SHARE OF PROFIT FROM INVESTMENTS IN JOINTLY

CONTROLLED ENTITIES 746,653,720 768,896,690 - - INCOME BEFORE INCOME TAXES 45,025,730,236 44,225,317,115 37,786,817,116 34,425,355,469 INCOME TAXES 6.15.2 1,293,733,237 887,235,560 - - INCOME FOR THE YEAR 43,731,996,999 43,338,081,555 37,786,817,116 34,425,355,469

ATTRIBUTABLE TO:OWNERS OF EGAT 40,341,842,442 38,857,934,775 37,786,817,116 34,425,355,469 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




ELECTRICITY GENERATING AUTHORITY OF THAILAND AND ITS SUBSIDIARIES STATEMENTS OF INCOME

FOR THE YEAR ENDED DECEMBER 31, 2013

(TRANSLATION)- 5 -

145


Jan 1 - Dec 31, 13 Jan 1 - Dec 31, 12 Jan 1 - Dec 31, 13 Jan 1 - Dec 31, 12(Restated)

INCOME FOR THE YEAR 43,731,996,999 43,338,081,555 37,786,817,116 34,425,355,469 OTHER COMPREHENSIVE INCOME (LOSS)

Exchange rate differences from currency translation (1,356,016,962) (45,997,970) - - Available-for-sale financial assets 176,695,607 698,667,109 - - Actuarial gain (losses) 6.20 5,813,383 (1,437,806,248) - (1,437,806,248) Income taxes of other comprehensive gain (loss) of subsidiaries 93,635,107 (99,762,538) - - Share of other comprehensive gain of associates 344,037,593 193,774,396 - -

OTHER COMPREHENSIVE LOSS FOR THE YEAR, NET OF TAXES (735,835,272) (691,125,251) - (1,437,806,248)

TOTAL COMPREHENSIVE INCOME FOR THE YEAR 42,996,161,727 42,646,956,304 37,786,817,116 32,987,549,221

ATTRIBUTABLE TO:OWNERS OF EGAT 40,181,827,075 37,872,828,590 37,786,817,116 32,987,549,221 NON-CONTROLLING INTERESTS 2,814,334,652 4,774,127,714 - -

42,996,161,727 42,646,956,304 37,786,817,116 32,987,549,221




ELECTRICITY GENERATING AUTHORITY OF THAILAND AND ITS SUBSIDIARIES STATEMENTS OF COMPREHENSIVE INCOME


(TRANSLATION)- 6 -


Unit :

Baht

Notes

Contr

ibutio

n from

Surpl

us fro

mTo

tal EG

AT's

Non-c

ontrol

ling

Total

owner

s' the

gover

nment

royalt

y on s

tate

approp

riated

unapp

ropria

tedTo

tal ot

herow

ners' e

quity

intere

stsequ

itypro

perty

servic

eEx

change

rate

Availa

ble-fo

r-sale

Ac

tuaria

l Su

rplus

on Inc

ome ta

xesSh

are of

other

compon

ents o

fdif

ferenc

es fin

ancial

assets

gain (

losses

)sub

sidiar

ies an

dfor

other

compre

hensiv

eow

ners' e

quity

from

curren

cyass

ociate

s usin

gcom

prehen

sive

gain (

loss) o

f tra

nslati

onequ

ity m

ethod

gain (

loss)

associ

ates

Balan

ce as

at Janu

ary 1,

2012

(Befor

e adju

stment

) 9,1

26,643

,343

474

,767,2

80

80,186

,366,9

13

182,33

8,845,

049

(65,16

8,738)

(39

,298,0

65)

-

2,8

86,909

,938

2,757,

343

216,70

3,464

3,001,

903,94

2

275,12

8,526,

527

27,201

,246,6

49

302,32

9,773,

176

Cumu

lative

effect

of th

e chan

ges in

accou

nting

policie

s5

-

-

-

3,9

20,705

346

,409

-

-

-

-

-

346

,409

4,267,

114

(130,9

27,798

)

(12

6,660,

684)

Balan

ce as

at Janu

ary 1,

2012

as pre

viousl

y repo

rted

9,126,

643,34

3

474,76

7,280

80,

186,36

6,913

182

,342,7

65,754

(64

,822,3

29)

(39,29

8,065)

-

2,886,

909,93

8

2,7

57,343

216

,703,4

64

3,0

02,250

,351

275

,132,7

93,641

27,

070,31

8,851

302

,203,1

12,492

Cu

mulati

ve eff

ect of

the c

hanges

in ac

counti

ng pol

icies

and ad

justm

ent-

-

-

(441,0

10,061

)

-

-

-

-

-

(302,2

28,895

)

(30

2,228,

895)

(743,2

38,956

)

-

(74

3,238,

956)

Balan

ce as

at Janu

ary 1,

2012 -

adjus

te d6.9

.5.19,1

26,643

,343

474

,767,2

80

80,186

,366,9

13

181,90

1,755,

693

(64,82

2,329)

(39

,298,0

65)

-

2,8

86,909

,938

2,757,

343

(85,52

5,431)

2,700,

021,45

6

274,38

9,554,

685

27,070

,318,8

51

301,45

9,873,

536

Depre

ciatio

n of a

ssets f

or irri

gatio n

6.23

(62,33

2,763)

-

-

-

-

-

-

-

-

-

-

(62

,332,7

63)

-

(62,33

2,763)

Sh

are re

ceived

in ad

vance

of su

bsidia

ries

-

-

-

-

-

-

-

-

-

-

-

-

34,931

,610

34,931

,610

Re

mittan

ce to

the M

inistry

of Fi

nanc e

Increa

se of

the ye

ar 201

1 -

-

-

(315,5

26)

-

-

-

-

-

-

-

(315,5

26)

-

(31

5,526)

The y

ear 20

12 (Ja

n 1 - J

un 30,

2012)

-

-

-

(9,

253,00

0,000)

-

-

-

-

-

-

-

(9,

253,00

0,000)

-

(9,253

,000,0

00)

Pro

vision

for re

mittan

ce to

the M

inistry

of Fi

nanc e

The y

ear 20

12 (Ju

l 1 - D

ec 31,

2012)

6.18

-

-

-

(8,

077,99

4,513)

-

-

-

-

-

-

-

(8,

077,99

4,513)

-

(8,077

,994,5

13)

-

-

-

(17,33

1,310,

039)

-

-

-

-

-

-

-

(17,33

1,310,

039)

-

(17

,331,3

10,039

)

Chang

es in

owner

s' equi

ty for

the y

ea rAd

dition

al inve

stment

s from

subsi

diarie

s-

-

-

-

-

-

-

-

-

-

-

-

20,

182,43

0

20,

182,43

0

Divide

nds pa

i d-

-

-

-

-

-

-

-

-

-

-

-

(1,

794,37

5,000)

(1,

794,37

5,000)

Total

compre

hensiv

e incom

e (los

s) for

the ye

a r-

-

-

38,857

,934,7

75

(10,58

1,391)

314

,400,1

99

(1,

437,80

6,248)

-

(44

,893,1

41)

193

,774,3

96

(98

5,106,

185)

37,872

,828,5

90

4,774,

127,71

4

42,646

,956,3

04

Balan

ce as

at Dece

mber

31, 20

1 29,0

64,310

,580

474

,767,2

80

80,186

,366,9

13

203,42

8,380,

429

(75,40

3,720)

275

,102,1

34

(1,

437,80

6,248)

2,8

86,909

,938

(42,13

5,798)

108,24

8,965

1,714,

915,27

1

294,86

8,740,

473

30,105

,185,6

05

324,97

3,926,

078

Balan

ce as

at Janu

ary 1,

2013

(Befor

e adju

stment

)9,0

64,310

,580

474

,767,2

80

80,186

,366,9

13

203,80

3,127,

409

(75,40

3,720)

275

,102,1

34

(1,

437,80

6,248)

2,8

86,909

,938

(42,13

5,798)

565,18

7,751

2,171,

854,05

7

295,70

0,426,

239

30,105

,185,6

05

325,80

5,611,

844

Cumu

lative

effect

of th

e chan

ges in

accou

nting

policie

s5

-

-

-

(37

4,746,

980)

-

-

-

-

-

(45

6,938,

786)

(456,9

38,786

)

(83

1,685,

766)

-

(831,6

85,766

)

Ba

lance

as at J

anuary

1, 201

3 - ad

juste d

9,064,

310,58

0

474,76

7,280

80,

186,36

6,913

203

,428,3

80,429

(75

,403,7

20)

275,10

2,134

(1,437

,806,2

48)

2,886,

909,93

8

(42

,135,7

98)

108

,248,9

65

1,7

14,915

,271

294

,868,7

40,473

30,

105,18

5,605

324

,973,9

26,078

De

precia

tion o

f asse

ts for

irrigat

io n6.2

3(62

,332,7

63)

-

-

-

-

-

-

-

-

-

-

(62,33

2,763)

-

(62

,332,7

63)

Addit

iona l p

aid-up

share

-

-

-

-

-

-

-

-

-

-

-

-

29,109

,675

29,109

,675

Inc

rease

in inv

estme

nts of

non-c

ontrol

ling i

nteres

t s15,

061,19

1

15,

061,19

1

Remi

ttance

to the

Mini

stry of

Finan

c e6.1

8Inc

rease

of the

year

2012

-

-

-

(4,

005,48

7)

-

-

-

-

-

-

-

(4,

005,48

7)

-

(4,005

,487)

Th

e year

2013

(Jan 1

- Jun

30, 20

13)-

-

-

(9,589

,878,2

51)

-

-

-

-

-

-

-

(9,589

,878,2

51)

-

(9,

589,87

8,251)

Provis

ion fo

r remi

ttance

to the

Mini

stry of

Finan

c eTh

e year

2013

(Jul 1

- Dec

31, 20

13)-

-

-

(9,466

,293,6

84)

-

-

-

-

-

-

-

(9,466

,293,6

84)

-

(9,

466,29

3,684)

-

-

-

(19

,060,1

77,422

)

-

-

-

-

-

-

-

(19

,060,1

77,422

)

-

(19,06

0,177,

422)

Ch

anges

in ow

ners' e

quity

for th

e yea r

Divide

nds pa

id-

-

-

-

-

-

-

-

-

-

-

-

(1,

810,32

5,000)

(1,

810,32

5,000)

Total

compre

hensiv

e incom

e (los

s) for

the ye

a r-

-

-

40,341

,842,4

42

(628,3

05,751

)

79,500

,971

2,6

16,022

-

42,

135,79

8

344

,037,5

93

(16

0,015,

367)

40,181

,827,0

75

2,814,

334,65

2

42,996

,161,7

27

Balan

ce as

at Dece

mber

31, 20

1 39,0

01,977

,817

474

,767,2

80

80,186

,366,9

13

224,71

0,045,

449

(703,7

09,471

)

354,60

3,105

(1,435

,190,2

26)

2,886,

909,93

8

-

452

,286,5

58

1,5

54,899

,904

315

,928,0

57,363

31,

153,36

6,123

347

,081,4

23,486

Notes

to th

e finan

cial st

ateme

nts ar

e an i

ntegra

l part

of th

ese fin

ancial

statem

ents.

- 7 -

(TRAN

SLAT

ION)

Other

comp

rehens

ive in

come (l

oss)

Retai

ned ea

rningsEL

ECTR

ICITY

GENE

RATIN

G AUT

HORI

TY OF

THAI

LAND

AND I

TS SU

BSID

IARI

ESST

ATEM

ENTS

OF CH

ANGE

S IN O

WNER

S' EQ

UITY

FOR T

HE YE

AR EN

DED D

ECEM

BER 3

1, 2013

Conso

lidate

d fina

ncial s

tatem

ent

Other

comp

onents

of eq

uity

Total

equit

y attr

ibutab

le to E

GAT

147

Unit :

Baht

Notes

Contr

ibutio

n from

Surpl

us fro

mTo

tal ow

ners'

the go

vernm

entroy

alty o

n stat

eapp

ropria

tedun

approp

riated

equity

proper

ty ser

vice

Balan

ce as

at Janu

ary 1,

2012

9,126,

643,34

3

474

,767,2

80

80,186

,366,9

13

161

,864,3

54,850

-

251

,652,1

32,386

De

precia

tion o

f asse

ts for

irrigat

ion6.2

3(62

,332,7

63)

-

-

-

-

(62,33

2,763)

Re

mittan

ce to

the M

inistry

of Fi

nance

Increa

se of

the ye

ar 201

1 -

-

-

(315,5

26)

-

(31

5,526)

The y

ear 20

12 (Ja

n 1 - J

un 30,

2012)

-

-

-

(9,

253,00

0,000)

-

(9,253

,000,0

00)

Pro

vision

for re

mittan

ce to

the M

inistry

of Fi

nance

The y

ear 20

12 (Ju

l 1 - D

ec 31,

2012)

6.18

-

-

-

(8,

077,99

4,513)

-

(8,077

,994,5

13)

-

-

-

(17,33

1,310,

039)

-

(17

,331,3

10,039

)

Chang

es in

owner

s' equi

ty for

the y

earTo

tal com

prehen

sive in

come (

loss) f

or the

year

-

-

-

34,

425,35

5,469

(1,437

,806,2

48)

32,987

,549,2

21

Ba

lance

as at D

ecemb

er 31,

2012

9,064,

310,58

0

474

,767,2

80

80,186

,366,9

13

178

,958,4

00,280

(1,

437,80

6,248)

267

,246,0

38,805

Balan

ce as

at Janu

ary 1,

2013

9,064,

310,58

0

474

,767,2

80

80,186

,366,9

13

178

,958,4

00,280

(1,

437,80

6,248)

267

,246,0

38,805

De

precia

tion o

f asse

ts for

irrigat

ion6.2

3(62

,332,7

63)

-

-

-

-

(62,33

2,763)

Re

mittan

ce to

the M

inistry

of Fi

nance

6.18

Increa

se of

the ye

ar 201

2-

-

-

(4,005

,487)

-

(4,

005,48

7)

The y

ear 20

13 (Ja

n 1 - J

un 30,

2013)

-

-

-

(9,

589,87

8,251)

-

(9,589

,878,2

51)

Pro

vision

for re

mittan

ce to

the M

inistry

of Fi

nance

The y

ear 20

13 (Ju

l 1 - D

ec 31,

2013)

-

-

-

(9,

466,29

3,684)

-

(9,466

,293,6

84)

-

-

-

(19,06

0,177,

422)

-

(19

,060,1

77,422

)

Chang

es in

owner

s' equi

ty for

the y

earTo

tal com

prehen

sive in

come f

or the

year

-

-

-

37,

786,81

7,116

-

37,786

,817,1

16

Ba

lance

as at D

ecemb

er 31,

2013

9,001,

977,81

7

474

,767,2

80

80,186

,366,9

13

197

,685,0

39,974

(1,

437,80

6,248)

285

,910,3

45,736

Notes

to th

e finan

cial st

ateme

nts ar

e an i

ntegra

l part

of th

ese fin

ancial

statem

ents.

Retai

ned ea

rnings

Total

other

comp

onents

of ow

ners' e

quity

Other

comp

rehens

ive in

come

Actur

ial los

ses

(TRAN

SLAT

ION)

- 8 -

ELEC

TRIC

ITY GE

NERA

TING A

UTHO

RITY

OF TH

AILA

ND AN

D ITS

SUBS

IDIA

RIES

STAT

EMEN

TS OF

CHAN

GES I

N OWN

ERS'

EQUI

TYFO

R THE

YEAR

ENDE

D DEC

EMBE

R 31, 2

013Sep

arate f

inanci

al stat

ement



Jan 1 - Dec 31, 13 Jan 1 - Dec 31, 12 Jan 1 - Dec 31, 13 Jan 1 - Dec 31, 12CASH FLOWS FROM OPERATING ACTIVITIESNet income of EGAT 40,341,842,442 38,857,934,775 37,786,817,116 34,425,355,469

Adjustments to reconcile net income to net cash inflow (outflow) from operating activities

Depreciation 25,393,555,332 24,653,281,931 22,105,153,294 21,269,620,278 Donation assets (108,550) (42,500) (108,550) (42,500) Donated assets 672,215 5,460,443 672,215 5,460,443 Amortization of land rights and project development rights 298,258,525 328,817,591 874,894 896,061 Amortization of computer software rights 219,650,249 220,446,078 213,081,693 214,829,489 Amortization of royalty on state property service 6.13 6,337,356 6,337,356 6,337,356 6,337,356 Amortization of gas pipe system rights 6.13 312,449 312,449 - - Amortization of transmission system connection rights 6.13 3,712,103 3,558,250 - - Amortization of deferred loan fees (122,317,517) (88,394,022) - - Allowance for loss on impairment of investments 15,155,956 - - - Amortization of deferred charges of the lignite mine 6.16 6,031,320,583 5,408,304,116 6,031,320,583 5,408,304,116 Doubtful debts 2,198,763 (2,046,918) 2,198,763 (2,046,918) Bad debts 5,593 111,270 5,593 111,270 Allowance for obsolescence on materials and supplies 283,140,776 287,043,620 236,327,885 345,499,315 Gain on the power purchase agreement cancellation - (1,069,442,446) - - Gain on sale of long-term investments - (783,678,571) - - Loss on revaluation of investments in trading securities. (1,133,061) - - - Loss (profit) on disposal of assets 187,161,915 61,472,685 159,310,563 (13,367,290)

ELECTRICITY GENERATING AUTHORITY OF THAILAND AND ITS SUBSIDIARIES STATEMENTS OF CASH FLOWS


(TRANSLATION)- 9 -

Loss (profit) on disposal of assets 187,161,915 61,472,685 159,310,563 (13,367,290) Revenue from deferred income 6.22 (431,685,334) (526,711,566) (431,685,334) (526,711,566) Employee benefit obligations 383,252,090 (143,414,710) 371,933,217 (149,555,419) Loss (gain) on foreign exchange (22,966,233) (634,426,835) 682,223,523 163,941,825 Gain on changes in the fair value of derivatives (104,291,021) (150,902,003) (104,291,021) (150,902,003) Dividends received from associates 6.9.4 - - (802,641,972) (735,755,141) Dividends received from subsidiary 6.9.4 - - (1,481,175,000) (1,468,125,000) Dividends received from other investments (220,902,845) (188,314,482) - - Share of profit from associated company (2,057,685,427) (2,992,828,855) - - Share of profit from jointly controlled entity (746,653,719) (768,896,690) - - Net income attributable to non-controlling interests 3,390,154,557 4,480,146,780 - - Interest income (2,017,920,503) (1,990,035,673) (1,544,696,836) (1,378,098,739) Interest expenses 4,210,822,459 5,425,184,044 2,737,707,515 2,893,013,089 Income taxes 6.15.2 1,293,733,237 887,235,560 - -

Net income from operating activities before changes in operating assets 76,335,622,390 71,286,511,677 65,969,365,497 60,308,764,135 and liabilitiesChanges in operating assets (Increase) Decrease

Trade accounts receivable (3,123,569,171) (16,855,424,157) (3,235,123,007) (16,857,815,613) Other accounts receivable (914,462,857) (764,576,621) (634,526,922) (933,566,526) Materials and supplies (703,261,756) (823,019,076) (303,135,366) (763,747,489) Other current assets (38,834,223) 43,002,448 - - Other non-current assets 3,694,638,205 (743,434,469) 240,612,643 (143,473,329) Deferred tax assets (11,142,290) 59,745,241 - - Deferred charges of the lignite mine 6.16 (5,955,412,355) (5,331,127,445) (5,955,412,355) (5,331,127,445)

Changes in operating liabilities Increase (Decrease) Trade accounts payable 23,200,355,269 14,573,733,346 27,747,158,983 13,622,333,229 Other accounts payable (2,247,655,746) (407,754,672) (6,136,063,372) (3,285,089,478) Other current liabilities 161,138,358 (18,277,658) - - Accrued expenses 249,253,946 1,567,431,000 (168,332,407) 842,574,569 Other non - current liabilities (1,608,127,404) (368,285,755) (33,053,999) (276,642,152) Deferred tax liabilities (242,593,594) (760,473,056) - - Provision liabilities for mine reclamation 37,865,259 70,101,832 37,865,259 70,101,832

12,498,191,641 (9,758,359,042) 11,559,989,457 (13,056,452,402) C h i f i 88 833 814 031 61 528 152 635 77 529 354 954 47 252 311 733 Cash receipts from operating 88,833,814,031 61,528,152,635 77,529,354,954 47,252,311,733 Cash receipts on interest 1,070,923,689 912,699,761 1,042,112,353 909,251,442 Cash payment on income taxes (1,393,986,295) (1,642,366,367) - -

Net cash from operating activities 88,510,751,425 60,798,486,029 78,571,467,307 48,161,563,175


149


Jan 1 - Dec 31, 13 Jan 1 - Dec 31, 12 Jan 1 - Dec 31, 13 Jan 1 - Dec 31, 12CASH FLOWS FROM INVESTING ACTIVITIES

Net cash receipts (payment) on temporary investments (23,248,282,391) (687,859,670) (24,973,301,124) 2,033,473,118 Net cash receipts (payment) on long-term investments 10,044,490,984 (9,798,928,380) 10,005,340,984 (10,005,340,984) Cash receipts on disposal of assets 172,891,244 83,494,670 166,714,464 59,858,568 Cash payment on property, plant, equipment, work under

construction and intangible assets a (23,724,844,591) (30,759,146,477) (24,259,720,669) (29,799,865,901) Cash payment on interest for work under construction (571,798,570) (283,944,559) (571,798,570) (281,844,538) Cash receipts on deferred income 690,328,545 1,492,402,112 690,328,545 1,492,402,112 Cash payment on investments in subsidiaries 6.9.5.2 - - (2,790,397,415) (70,000,000) Cash payment on investments in associates (367,082,771) (342,770,299) - - Cash payment on investments in jointly controlled entity (133,520,000) (507,020,830) - - Cash payment on investments in other entity (11,643,851) - - - Cash receipt from disposal investments in jointly controlled entity 20,800,000 - - - Cash receipts from compensation of the power purchase agreement

cancellation - 3,167,366,428 - - Cash receipts on interest 795,130,139 743,609,820 508,009,323 375,313,301 Dividends received from associates 6.9.3 , 6.9.4 802,641,972 735,755,141 802,641,972 735,755,141 Dividends received from subsidiary 6.9.4 - - 1,481,175,000 1,468,125,000 Dividends received from jointly controlled entities 977,625,453 774,462,805 - - Dividends received from other entities 220,902,844 188,314,481 - -

Net cash used in investing activities (34,332,360,993) (35,194,264,758) (38,941,007,490) (33,992,124,183) CASH FLOWS FROM FINANCING ACTIVITIES

Remittance to the Ministry of Finance (17,671,878,251) (16,297,000,000) (17,671,878,251) (16,297,000,000) Cash receipts from short-term loans from financial institutions 13,160,718,504 14,540,000,000 - - Cash payment of short-term loans from financial institutions (6,424,227,960) (13,640,000,000) - - Cash receipts from bill of exchange payables 3,000,000,000 2,300,000,000 - - Cash payment of bill of exchange payables (3,250,000,000) (500,000,000) - - Cash receipts from long-term loans 16,065,950,000 11,147,350,000 13,000,000,000 11,000,000,000 Cash receipts from share subscription of subsidiary 29,109,675 34,931,610 - - Cash payment of long - term loans from related party (58,170,400) - - - Cash payment of long - term loans (22,510,275,718) (23,751,963,072) (4,964,753,468) (14,640,572,134) Cash payment on interest (4,589,464,918) (5,379,010,951) (2,677,809,423) (2,923,285,965) Cash receipts (payment) on finance lease liabilities 793,929 (1,795,698) 3,021,000 - Dividends paid to non-controlling interests of subsidiary (1,810,325,000) (1,794,375,000) - - Dividend paid to the Company's shareholders (3,290,737,147) (3,262,002,373) - -

Net cash used in financing activities (27,348,507,286) (36,603,865,484) (12,311,420,142) (22,860,858,099) EFFECT FROM FOREIGN EXCHANGE RATE IN CASH AND

CASH EQUIVALENTS (63,436,409) (26,830,065) 8,844,503 (2,538,362) NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 26,766,446,737 (11,026,474,278) 27,327,884,178 (8,693,957,469) CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR 40,312,353,629 51,338,827,907 31,843,250,055 40,537,207,524 CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR 6.1 67,078,800,366 40,312,353,629 59,171,134,233 31,843,250,055


ELECTRICITY GENERATING AUTHORITY OF THAILAND AND ITS SUBSIDIARIES STATEMENTS OF CASH FLOWS


(TRANSLATION)- 10 -


(TRANSLATION) - 11 -

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.

151


ELECTRICITY GENERATING AUTHORITY OF THAILAND AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS


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



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

153


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:



No movement within Percentage of allowance for obsolescence of stocks 6 -18 months 10 Over 18 - 30 months 30 Over 30 - 48 months 50 Over 48 - 60 months 75 Over 60 months 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.

155


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 available-

for-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.



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: 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:

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

157


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 - Lignite Power Plants 8 2

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



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.

159


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.



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

161


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.



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.

163


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.



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

(Revised 2012)Share-based Payment

Thai Financial Reporting Standard No.3 (Revised 2012)

Business Combinations


Non-current Assets Held for Sale and Discontinued Operations


Operating Segments

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

165


Thai Financial Reporting Interpretation No.4 Determining Whether an Arrangement Contains a Lease

Thai Financial Reporting Interpretation No.5 Rights to Interests arising from Decommissioning, Restoration and Environmental Rehabilitation Funds

Thai Financial Reporting Interpretation No.7 Applying the Restatement Approach under TAS 29 Financial Reporting in Hyperinflationary Economies

Thai Financial Reporting Interpretation No.10 Interim Financial Reporting and Impairment Thai Financial Reporting Interpretation No.12 Service Concession Arrangements Thai Financial Reporting Interpretation No.13 Customer Loyalty Programmes Thai Financial Reporting Interpretation No.17 Distributions of Non-cash Assets to Owners Thai Financial Reporting Interpretation No.18 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.



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

Before reclassified and

restated Reclassified Restated

As reclassified and restated

Statements of financial position as at December 31, 2012Cash and cash equivalents 40,644.20 (331.85) - 40,312.35 Temporary investments 13,819.28 (50.00) - 13,769.28 Trade accounts receivable - others 47,769.37 49.76 - 47,819.13 Trade accounts receivable - related parties 2,164.25 32.61 - 2,196.86 Other accounts receivable 7,287.72 (82.37) - 7,205.35 Investments in associates 16,569.37 - (831.69) 15,737.68 Other current assets-others 43.36 50.00 - 93.36 Other non-current assets 6,750.88 331.85 (20.00) 7,062.73 Trade accounts payable - others 42,006.77 5.51 - 42,012.28 Other accounts payable 12,216.06 (5.51) - 12,210.55 Other current liabilities-others 15,165.87 - (20.00) 15,145.87 Retained earnings-unappropriated 203,803.13 - (374.75) 203,428.38 Other componenets of owners' equity 2,171.85 - (456.94) 1,714.91

Statements of changes in owners' equity as at December 31, 2012Retained earnings-unappropriated 203,803.13 - (374.75) 203,428.38 Other componenets of owners' equity 2,171.85 - (456.94) 1,714.91 Total owners' equity 295,700.43 - (831.69) 294,868.74

Consolidated financial statement

167


Unit : Million Baht

Before reclassified and restated

RestatedAs reclassified and

restatedStatements of income for the year ended December 31, 2012Revenues Share of profit from investments in associates 2,926.57 66.26 2,992.83 Income for the year Income for the year 43,271.82 66.26 43,338.08

Statements of comprehensive income for the year ended December 31, 2012Share of other comprehensive income of associates 348.48 (154.71) 193.77 Other comprehensive income (loss) for the year - net of taxes (536.42) (154.71) (691.13)

Statements of changes in owners' equity as at January 1, 2012Retained earnings-unappropriated 182,338.85 3.92 182,342.77 Exchange rate differences from currency translation (65.17) 0.35 (64.82) Non-controlling interests 27,201.25 (130.93) 27,070.32 Total owners' equity 302,329.77 (126.66) 302,203.11

Unit : Million Baht

Before reclassified and restated

RestatedAs reclassified and

restated

Statements of financial position as at December 31, 2012Cash and cash equivalents 32,175.10 (331.85) 31,843.25 Trade accounts receivable - others 47,303.49 49.76 47,353.25 Trade accounts receivable - related parties 2,396.08 113.67 2,509.75 Other accounts receivable 6,700.27 (163.43) 6,536.84 Other non-current assets 1,564.67 331.85 1,896.52


Separate financial statement



6. Supplementary Information

6.1 Cash and Cash Equivalents Unit : Million Baht

Dec 31, 13 Dec 31, 12 Dec 31, 13 Dec 31, 12Cash on hand 9.38 8.40 8.39 7.82 Cash in banks current and saving accounts 35,893.08 37,344.86 33,154.27 31,835.43 Fixed deposits not more than 3 months 23,358.11 38.50 22,010.24 - Government bonds not more than 3 months 3,998.23 - 3,998.23 - Fixed deposit receipts 3,820.00 2,790.59 - - Bills of exchange - 130.00 - - Total 67,078.80 40,312.35 59,171.13 31,843.25

6.2 Temporary Investments Unit : Million Baht

Dec 31, 13 Dec 31, 12 Dec 31, 13 Dec 31, 12Fixed deposits more than 3 months but not more than 12 months 35,132.06 8,097.68 33,020.56 8,047.26 Fixed deposit receipts 1,400.00 5,309.00 - - Debenture 50.00 50.00 - - Government bonds more than 3 months 41.00 - - - Investments in trading securities 445.63 312.60 - - Total 37,068.69 13,769.28 33,020.56 8,047.26

Consolidated financial statement Separate financial statement


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.

169


6.3 Trade Accounts Receivable - Others Unit : Million Baht

Dec 31, 13 Dec 31, 12 Dec 31, 13 Dec 31, 12Receivable from electric energy sales

Metropolitan Electricity Authority 24,273.44 14,225.83 24,273.44 14,225.83 Provincial Electricity Authority 27,050.93 30,510.22 27,050.93 30,510.22 Others 3,789.23 2,475.14 3,756.39 2,441.01

55,113.60 47,211.19 55,080.76 47,177.06 Services and others receivable 826.30 655.76 261.85 224.01

Total 55,939.90 47,866.95 55,342.61 47,401.07 Less : Allowance for doubful accounts (48.28) (47.82) (48.28) (47.82)

Balance 55,891.62 47,819.13 55,294.33 47,353.25


Trade accounts receivable - others can be analyzed by categories and outstanding period as follows:

Unit: Million Baht Consolidated financial statement Dec 31,13 Dec 31, 12 Outstanding period Electric

energy sales Service and

others Total

Undue portion 54,840.00 756.69 55,596.69 47,811.13 Overdue not more than 6 months 273.60 18.49 292.09 5.00 Overdue more than 6 months to 1 year

- 0.07 0.07 0.11

Overdue more than 1 year - 51.05 51.05 50.71 Total 55,113.60 826.30 55,939.90 47,866.95 Less : Allowance for doubtful accounts

-

(48.28)

(48.28)

(47.82)

Balance 55,113.60 778.02 55,891.62 47,819.13



Trade accounts receivable - others can be analyzed by categories and outstanding period as follows:

Unit: Million Baht Separate financial statement Dec 31,13 Dec 31, 12 Outstanding period Electric

energy sales Service and

others Total

Undue portion 54,807.16 192.24 54,999.40 47,345.25 Overdue not more than 6 months 273.60 18.49 292.09 5.00 Overdue more than 6 months to 1 year

- 0.07 0.07 0.11

Overdue more than 1 year - 51.05 51.05 50.71 Total 55,080.76 261.85 55,342.61 47,401.07 Less : Allowance for doubtful accounts

-

(48.28)

(48.28)

(47.82)

Balance 55,080.76 213.57 55,294.33 47,353.25

171


6.4 Related Parties Transactions

The companies that have transactions with EGAT as at December 31, 2013 are as follows:

Company Country of RelationshipIncorporation/

NationalityEGAT International Co., Ltd. Thailand Subsidiary, EGAT has 100% shareholdingEGAT Diamond Service Co., Ltd. Thailand Subsidiary, EGAT has 45% shareholding Ratchaburi Electricity Generating Holding Plc. Thailand Subsidiary, EGAT has 45% shareholdingDistrict Cooling System and Power Plant Thailand Jointly controlled entity of EGAT, EGAT has 35% Co., Ltd. shareholdingElectricity Generating Plc. Thailand Associated company, EGAT has 25.41% shareholdingRatchaburi 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 EGATEGCO Engineering and Services Co., Ltd. Thailand Related party of EGATXayaburi Power Co., Ltd. Lao PDR Related party of EGATGulf Electric Plc. Thailand Related party of EGATBLCP Power Co., Ltd. Thailand Related party of EGATEastern Water Resources Development and

Management Plc. Thailand Related party of EGATYanhee EGCO Holding Co., Ltd. Thailand Related party of EGATSolarco Co., Ltd. Thailand Related party of EGATRatchaburi Power Co., Ltd. Thailand Related party of EGATSouth East Asia Energy Ltd. Thailand Related party of EGATHongsa Power Co., Ltd. Lao PDR Related party of EGATPhufai Mining Co., Ltd. Lao PDR Related party of EGATRATCH-Australia Corporation Ltd. Australia Related party of EGAT



Related Parties Transactions the details are as follows:

6.4.1 Trade accounts receivable - related parties Unit : Million Baht

Dec 31, 13 Dec 31, 12 Dec 31, 13 Dec 31, 12Subsidiaries - - 553.01 332.73Associated company 691.97 711.14 691.97 711.14Jointly controlled entity 5.29 9.36 8.15 14.41Related parties 2,390.39 1,476.36 2,390.39 1,451.48Total trade accounts receivable - related parties 3,087.65 2,196.86 3,643.52 2,509.76


Trade accounts receivable - related parties can be analyzed by categories and aging schedule as follows:

Unit : Million Baht

Dec 31, 13 Dec 31, 12 Dec 31, 13 Dec 31, 12Undue portion 3,087.65 2,196.43 3,643.52 2,479.94Overdue not more than 6 months - 0.43 - 29.82Total trade accounts receivable - related parties 3,087.65 2,196.86 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

Dec 31, 13 Dec 31, 12Current portion of long-term loans to related parties - 62.50

Total - 62.50


173


6.4.3 Trade accounts payable - related parties

Unit : Million Baht

Dec 31, 13 Dec 31, 12 Dec 31, 13 Dec 31, 12Subsidiaries - - 8,283.45 3,780.51Associated company 1,064.11 820.42 1,064.11 820.42Jointly controlled entity 78.01 67.56 120.01 103.94Related parties 6,480.16 7,269.18 6,480.16 7,269.18Total trade accounts payable - related parties 7,622.28 8,157.16 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

Dec 31, 13 Dec 31, 12Long-term loans from related parties 1,186.30 1,358.28

Total 1,186.30 1,358.28




6.4.5 Revenues and expenses - related parties

Jan 1-Dec 31, 13 Jan 1-Dec 31, 12 Jan 1-Dec 31, 13 Jan 1-Dec 31, 12Revenues Revenue from electric energy sales Subsidiary - - 190.28 155.67 Associated company 20.71 14.00 20.71 14.00 Related parties 87.26 89.01 87.26 89.01 Revenue from sales of other

goods and services Subsidiaries - - 2,702.82 4,299.10 Associated company 7,239.61 10,316.73 7,239.61 10,316.73 Jointly controlled entity 56.31 57.17 86.63 87.96 Related parties 14,062.00 14,489.98 14,062.00 14,489.98

Expenses Cost of electric energy sales Subsidiaries - - 47,963.67 51,838.47 Associated company 9,318.89 12,340.49 9,318.89 12,340.49 Jointly controlled entity 655.55 555.07 1,008.54 853.96 Related parties 52,576.17 66,992.19 52,576.17 66,992.19

Cost of sales of other goods and services Subsidiaries - - 2,232.04 3,939.62 Associated company 7,223.80 10,326.23 7,223.80 10,326.23 Jointly controlled entity 59.12 61.27 90.95 94.26 Related parties 13,840.96 14,345.04 13,840.96 14,345.04

Consolidated financial statement Separate financial statementUnit : Million Baht

175


6.4.6 Executives' remunerations For the year ended December 31, 2013, Executives' remunerations are as follows:

Unit : Million Baht

Jan 1-Dec 31, 13 Jan 1-Dec 31, 12 Jan 1-Dec 31, 13 Jan 1-Dec 31, 12Directors' remunerations

Meeting remuneration and bonuses 43.64 47.38 3.18 3.81 43.64 47.38 3.18 3.81

Management's remunerationsSalaries, bonuses and other short-term employee benefits 200.66 230.99 48.82 56.75 Post-employee benefit and other long-term employee benefits 10.97 29.50 0.94 1.33

211.63 260.49 49.76 58.08 Total 255.27 307.87 52.94 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.



6.6 Other Accounts Receivable Unit : Million Baht

Dec 31, 13 Dec 31, 12 Dec 31, 13 Dec 31, 12Employee accounts receivable 78.69 161.68 76.33 158.20

Other accounts receivable 348.00 768.31 219.44 418.54Less : Allowance for doubtful accounts (19.68) (17.93) (19.68) (17.93)Advances and Prepaid 2,965.77 1,937.16 2,643.20 1,811.52Accrued revenues 316.03 417.02 285.94 289.89Input tax 4,792.94 3,939.11 4,777.63 3,876.62 Balance 8,481.75 7,205.35 7,982.86 6,536.84


6.7 Materials and Supplies

Unit : Million Baht

Dec 31, 13 Dec 31, 12 Dec 31, 13 Dec 31, 12Fuel oil for power plant 5,826.34 5,657.40 4,785.72 4,861.56

Lignite stock 1,559.32 1,521.72 1,559.32 1,521.72Spare parts, other materials and supplies 11,613.04 11,077.07 9,335.19 8,942.01Less : Allowance for obsolescence (5,894.86) (5,624.27) (5,146.98) (4,910.65) Balance 13,103.84 12,631.92 10,533.25 10,414.64


6.8 Derivative Assets and Liabilities 6.8.1 Derivative Assets

Unit : Million Baht

Dec 31, 13 Dec 31, 12 Dec 31, 13 Dec 31, 12Foreign currency forward contracts 0.12 - 0.12 - Balance 0.12 - 0.12 -


177


6.8.2 Derivative liabilities Unit : Million Baht

Dec 31, 13 Dec 31, 12 Dec 31, 13 Dec 31, 12Cross currency and interest rate swap contracts - 4.59 - 4.59 Balance - 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

Country of Businessincorporation/ Dec 31, 13 Dec 31, 12

NationalitySubsidiariesEGAT International Co., Ltd. Thailand Generation and supply of electricity 100 100EGAT Diamond Service Co., Ltd. Thailand Gas turbine maintenance including

components and spare parts 45 45Ratchaburi Electricity Generating Thailand Generation and supply of electricity

Holding Plc. 45 45

Associated companyElectricity Generating Plc. Thailand Generation and supply of electricity 25.41 25.41

Jointly controlled entityDistrict Cooling System and Thailand Generation and supply of electricity

Power Plant Co., Ltd. and chilled water 35 35

Shareholding (%)Company



6.9.2 Details of subsidiaries, associates and jointly controlled entities : Ratchaburi Electricity Generating Holding Plc.


NationalityDirect subsidiariesRatchaburi Electricity Generating Co., Ltd. Thailand Generation and supply of electricity 100 100Ratchaburi Gas Co., Ltd. Thailand Investment in electricity business 100 100Ratch Udom Power Co., Ltd. Thailand Investment in electricity business 100 100

(In liquidation process)Ratchaburi Energy Co., Ltd. Thailand Power plant development and operation

and investment in electricity business 100 100RH International Corporation Ltd. Thailand Investment in electricity business 100 100RATCH-Lao Services Co., Ltd. Lao PDR Operation and maintenance services 100 100RATCH O&M Co., Ltd. Thailand Operation and maintenance services 100 100

Indirect subsidiariesRatchaburi Alliances Co., Ltd. Thailand Investment in electricity business 100 100RH International (Mauritius) Mauritius Investment in electricity business

Corporation Ltd. in foreign country 100 100RH International (Singapore) Singapore Investment in electricity business

Corporation Ltd. in foreign country 100 100Sustainable Energy Corporation Co., Ltd. Thailand Investment in electricity business 55.18 55.18Khao Kor Wind Power Co., Ltd. Thailand Generation and supply of electricity 55.18 55.18RATCH-Australia Corporation Ltd. Australia Power plant development and operation

and the group of the company and investment in electricity business 80 80Ban Bueng Power Co., Ltd. Thailand Generation and supply of electricity 100 -Eastern IPP Co., Ltd. Thailand Generation and supply of electricity 100 -Eastern Power Generation Co., Ltd. Thailand Generation and supply of electricity 100 -

Shareholding (%)Company

179



NationalityAssociatesFirst Korat Wind Co., Ltd. Thailand Generation and supply of electricity 20 20K.R. Two Co., Ltd. Thailand Generation and supply of electricity 20 20

Jointly controlled entitiesTri Energy Co., Ltd. Thailand Generation and supply of electricity 50 50Ratchaburi Power Co., Ltd. Thailand Generation and supply of electricity 25 25Chubu Ratchaburi Electric Services Co., Ltd. Thailand Operation and maintenance services 50 50South East Asia Energy Ltd. and subsidiary Thailand Investment in electricity business 33.33 33.33Hongsa Power Co., Ltd. Lao PDR Generation and supply of electricity 40 40Phufai Mining Co., Ltd. Lao PDR Generation and supply of coal 37.50 37.50Nam Ngum 3 Power Co., Ltd. Lao PDR Generation and supply of electricity 25 25Nava Nakorn Electricity Generating Co., Ltd. Thailand Generation and supply of electricity and steam 40 40Ratchaburi World Cogeneration Co., Ltd. Thailand Generation and supply of electricity and steam 40 40Solarta Co., Ltd. Thailand Generation and supply of electricity 49 49Solar Power (Korat 3) Co., Ltd. Thailand Generation and supply of electricity 40 40Solar Power (Korat 4) Co., Ltd. Thailand Generation and supply of electricity 40 40Solar Power (Korat 7) Co., Ltd. Thailand Generation and supply of electricity 40 40Songkhla Biomass Co., Ltd. Thailand Generation and supply of electricity 40 40KK Power Co., Ltd. Cambodia Generation and supply of electricity 50 50Songkhla Biofuel Co., Ltd. Thailand Supply the biomass fuel 40 40Sukhothai Energy Co., Ltd. Thailand Development and operation in electricity business 25 51Ayudhya 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

Company Shareholding (%)



6.9.3 Investments in associates and jointly controlled entities in the consolidated financial statements Unit : Million Baht

Dec 31, 13

Dec 31, 12

Cost Method

Equity Method

Cost Method

Equity Method

Dec 31, 13 Dec 31, 12

Associates1. Electricity Generating Plc. 25.41 25.41 1,587.55 16,449.87 1,587.55 15,056.64 802.64 735.75 2. First Korat Wind Co., Ltd. 20.00 20.00 399.20 514.92 381.93 375.26 - - 3. K.R. Two Co., Ltd. 20.00 20.00 365.40 442.71 317.90 305.78 - - 4. Nam Ngiep1 Power Co., Ltd. 30.00 - 302.31 314.48 - - - -

Total 2,654.46 17,721.98 2,287.38 15,737.68 802.64 735.75 Jointly controlled entities1. Tri Energy Co., Ltd. 50.00 50.00 1,809.21 4,445.68 1,809.21 4,736.95 341.86 161.77 2. Ratchaburi Power Co., Ltd. 25.00 25.00 1,831.25 3,920.66 1,831.25 3,735.10 475.00 450.00 3. Chubu Ratchaburi Electric

Services Co., Ltd. 50.00 50.00 10.00 79.39 10.00 112.08 20.00 16.00 4. South East Asia Energy Ltd. 33.33 33.33 2,202.25 2,804.75 2,202.25 2,649.89 57.26 - 5. Hongsa Power Co., Ltd. 40.00 40.00 983.12 - 983.12 435.43 - - 6. Phufai Mining Co., Ltd. 37.50 37.50 0.63 0.35 0.63 0.39 - - 7. Nam Ngum 3 Power Co., Ltd. 25.00 25.00 0.45 - 0.45 0.34 - - 8. Nava Nakorn Electricity

Generating Co., Ltd. 40.00 40.00 160.80 139.54 96.80 87.04 - - 9. Ratchaburi World

Cogeneration Co., Ltd. 40.00 40.00 500.00 522.77 500.00 490.88 - - 10. Solarta Co., Ltd. 49.00 49.00 545.96 745.49 545.96 606.55 - - 11. Solar Power (Korat 3) Co., Ltd. 40.00 40.00 71.30 89.26 65.00 70.80 7.34 - 12. Solar Power (Korat 4) Co., Ltd. 40.00 40.00 74.07 91.90 68.25 76.58 7.84 - 13. Solar Power (Korat 7) Co., Ltd. 40.00 40.00 70.00 89.70 63.70 72.20 8.06 - 14. Songkhla Biomass Co., Ltd. 40.00 40.00 67.50 64.17 34.50 32.36 - - 15. Perth Power Partnership (Kwinana) 30.00 30.00 618.53 707.61 618.53 764.21 60.26 115.88 16. KK Power Co., Ltd. 50.00 50.00 15.44 - 15.44 15.16 - - 17. Songkhla Biofuel Co., Ltd. 40.00 40.00 0.40 0.38 0.40 0.39 - - 18. Sukhothai Energy Co., Ltd. 25.00 51.00 20.00 1.69 40.80 24.27 - - 19. Xe-Pien Xe-Nam Noy

Power Co., Ltd. 25.00 25.00 532.18 382.73 0.78 (0.98) - - 20. Ayudhya Power Co., Ltd. 45.00 - 18.10 17.93 - - - -

9,531.19 14,104.00 8,887.07 13,909.64 977.62 743.65 12,185.65 31,825.98 11,174.45 29,647.32 1,780.26 1,479.40Grand Total

DividendCompany

Shareholding (%) Dec 31, 13 Dec 31, 12

Total

181


6.9.4 Investments in subsidiaries, associated company and jointly controlled entity in the separate financial statements

Unit : Million Baht

Dec 31, 13 Dec 31, 12 Dec 31, 13 Dec 31, 12 Dec 31, 13 Dec 31, 12

1. 100.00 100.00 3,108.00 370.00 - - 2. 45.00 45.00 280.35 227.95 - - 3.

45.00 45.00 6,525.00 6,525.00 1,481.18 1,468.139,913.35 7,122.95 1,481.18 1,468.13

1. 25.41 25.41 1,587.55 1,587.55 802.64 735.751,587.55 1,587.55 802.64 735.75

1.35.00 35.00 584.50 584.50 - -

584.50 584.50 - - 12,085.40 9,295.00 2,283.82 2,203.88Grand Total

Power Plant Co., Ltd.

Company

Total

Total

Total

Ratchaburi Electricity Generating Holding Plc.

Associated companyElectricity Generating Plc.

Jointly controlled entityDistrict Cooling System and

Shareholding (%) Cost Method Dividend

SubsidiariesEGAT International Co., Ltd.EGAT Diamond Service Co., Ltd.

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 BahtDec 31, 13 Dec 31, 12

Balance at the beginning of the year 29,647.32 27,074.83 Change in accounting policy - (743.24) Balance at the beginning of the year after adjustment 29,647.32 26,331.59 Share of profit from investments - equity method 2,804.34 3,695.46 Additional payment of share capital in jointly controll entities 133.52 507.02 Additional payment of share capital in associates 367.08 342.77 Sale of investments in jointly controlled entities (20.80) - Transfer development cost to investment 392.53 - Dividend revenues (977.62) (743.65) Allowance for impairment (15.16) - Available-for-sale investments (42.28) 532.64 Currency translation differences of the company settled in foreign country 404.45 (184.15) Dividend received (802.64) (735.75) Exchange rate adjustment (64.76) (10.16) Balance at the end of the year (before adjustment) 31,825.98 29,735.77 Change in fair value - (88.45) Balance at the end of the year after adjustment 31,825.98 29,647.32



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

Unit : Million Baht

Dec 31, 13 Dec 31, 12Balance at the beginning of the year 9,295.00 9,225.00 Additional investments 2,790.40 70.00 Balance at the end of the year 12,085.40 9,295.00

183

(TRAN

SLAT

ION)

- 4

4 -

6.10 P

ropert

y, Plan

t and E

quipm

ent

Unit :

Million

Baht

Land

Struct

ures

Reserv

oirs

Power p

lants

Equipm

entCon

trolTra

nsmissi

onCom

munica

tionCoa

lMa

chinery

Large-s

izedVeh

icles

Other

Deferr

edAdj

ustment

Total

and da

msfor

power

system

system

system

handlin

gspa

re parts

materi

alscha

rges of

major

in cons

olidated

plants

system

for min

eand

supplie

sinsp

ection

feefrom

profit o

nequ

ipment

sale of

power p

lants

Cost as

at Jan 1

, 138,3

21.26

27,

891.49

28,

855.79

335

,424.3

0

30,

398.37

804

.76

144,65

9.68

6,6

69.70

5,931.

24

6,050.

26

42.85

2,925.

75

9,7

08.29

5,397.

12

(4,8

39.33)

608

,241.5

3

Inc

rease du

ring the

period

306.23

6.12

0.2

9

938.52

1,8

96.99

-

0.7

0

-

-

229

.68

-

221

.21

744

.56

-

-

4,3

44.30

Transfe

rred fro

m work

under

constru

ction

-

1,016.

88

8.1

7

563.96

-

103.69

12,

838.13

388

.19

129.22

163.62

-

-

32.14

304

.06

-

15,

548.06

Exchan

ge rate

differen

ces fro

mcur

rency t

ranslat

ion

(25.37

)

(10

.00)

-

(2,079.

49)

-

-

-

-

-

-

-

-

(0.0

7)

-

-

(2,114.

93)

Rec

lassific

ation

-

(0.31)

-

4.9

5

(6.0

3)

-

(24

.20)

0.1

5

-

(1.4

3)

-

2.2

7

23.26

-

-

(1.3

4)

Dis

posal/w

rite-off

(28.07

)

(12

3.29)

-

(76.75

)

-

(20

.92)

(1,0

56.87)

(142.5

7)

-

(55.35

)

-

(11

3.99)

(368.8

1)

(1,4

62.83)

-

(3,4

49.45)

Cost as

at Dec 3

1, 13

8,574.

05

28,780

.89

28,864

.25

334,77

5.49

32,289

.33

887.53

156

,417.4

4

6,915.

47

6,0

60.46

6,3

86.78

42.

85

3,0

35.24

10,139

.37

4,238.

35

(4,8

39.33)

622

,568.1

7

Accum

ulated d

eprecia

tion / A

mortiz

ation

as at Ja

n 1, 13

-

(17,20

2.76)

(9,6

62.61)

(20

0,077.

83)

(14,89

5.06)

(70

3.79)

(71

,950.7

3)

(5,561.

08)

(4,4

14.16)

(4,8

95.24)

(42

.85)

(2,408.

38)

(7,121.

59)

(2,167.

20)

2,150.

54

(33

8,952.

74)

Deprec

iation/

Amorti

zation

for the

year

-

(1,020.

89)

(447.4

1)

(12

,332.2

4)

(3,1

45.65)

(33.27

)

(5,544.

17)

(31

5.94)

(13

0.98)

(234.1

4)

-

(171.9

6)

(66

3.15)

(1,734.

53)

196.69

(25,57

7.64)

Exchan

ge rate

differen

ces fro

mcur

rency t

ranslat

ion

-

3.33

-

816

.30

-

-

-

-

-

-

-

-

0.06

-

-

819

.69

Reclass

ificatio

n-

(0.0

7)

-

(0.28)

1.11

-

16.68

(0.1

5)

-

(0.1

5)

-

(0.0

6)

(16.61

)

-

-

0.4

7

Dis

posal/w

rite-off

-

99.45

-

70.

99

-

19.

15

759

.24

141

.83

-

28.52

-

113.97

360.01

1,462.

83

-

3,0

55.99

Accum

ulated d

eprecia

tion / A

mortiz

ation

as at D

ec 31, 1

3-

(18

,120.9

4)

(10,11

0.02)

(21

1,523.

06)

(18,03

9.60)

(71

7.91)

(76

,718.9

8)

(5,735.

34)

(4,5

45.14)

(5,1

01.01)

(42

.85)

(2,466.

43)

(7,441.

28)

(2,438.

90)

2,347.

23

(36

0,654.

23)

Accum

ulated i

mpairm

ent

As at J

an 1, 13

-

(49.58

)

-

(89

9.84)

-

-

-

-

-

(53

.62)

-

-

(0.84)

-

-

(1,0

03.88)

Increas

e (Decr

ease) d

uring th

e period

-

48.40

-

-

-

-

-

-

-

53.62

0.84

102

.86

As at D

ec 31, 1

3-

(1.1

8)

-

(899.8

4)

-

-

-

-

-

-

-

-

-

-

-

(901.0

2)

Net bo

ok val

ueAs

at Dec 3

1, 12

8,321.

26

10,639

.15

19,193

.18

134,44

6.63

15,503

.31

100.97

72,

708.95

1,1

08.62

1,517.

08

1,101.

40

-

517.37

2,585.

86

3,2

29.92

(2,688.

79)

268,28

4.91

As at D

ec 31, 1

38,5

74.05

10,

658.77

18,

754.23

122

,352.5

9

14,

249.73

169

.62

79,698

.46

1,180.

13

1,5

15.32

1,2

85.77

-

568

.81

2,6

98.09

1,799.

45

(2,4

92.10)

261

,012.9

2

Consoli

dated f

inancia

l statem

ent

(TRAN

SLAT

ION)

- 4

5 -

Unit :

Million

Baht

Land

Struct

ures

Reserv

oirsPow

er plan

tsEqu

ipment

Contro

lTra

nsmissi

onCom

munic

ation

Coal

Machi

nery

Large-

sized

Vehicle

sOth

erDef

erred

Total

and da

msfor

power

system

system

system

handlin

gspa

re part

sma

terials

charge

s of ma

jorpla

ntssys

temfor

mine

and sup

plies

inspecti

on fee

equipm

entCos

t as at

Jan 1,

136,9

29.54

26,

687.52

28,855

.79

251,39

8.25

30,376

.51

804

.76

144

,659.6

8

6,669.

70

5,931.

24

5,9

80.09

42.85

2,881.

82

9,208.

90

5,397.

12

525

,823.7

7

Inc

rease d

uring th

e perio d

284.78

0.41

0.2

9

661.82

1,8

96.99

-

0.70

-

-

229

.11

-

221

.16

721

.61

-

4,0

16.87

Tra

nsferre

d from

work u

nder

constru

ction

-

994.26

8.1

7

563.96

-

103.69

12,838

.13

388

.19

129

.22

8.47

-

-

2.7

5

304.06

15,340

.90

Rec

lassific

ation

-

(0.31)

-

4.9

5

-

-

(24.20

)

0.15

-

(1.43)

-

2.1

6

17.34

-

(1.3

4)

Dis

posal/w

rite-off

(0.63)

(121.8

7)

-

(70

.19)

-

(20.92

)

(1,0

56.87)

(142.5

7)

-

(16.86

)

-

(113.9

9)

(35

9.30)

(1,462.

83)

(3,366.

03)

Cost as

at Dec

31, 13

7,213.

69

27,560

.01

28,

864.25

252

,558.7

9

32,

273.50

887.53

156,41

7.44

6,9

15.47

6,0

60.46

6,199.

38

42.

85

2,9

91.15

9,5

91.30

4,2

38.35

541,81

4.17

Accum

ulated

deprec

iation

/ Amo

rtizatio

n as a

t Jan 1

, 13-

(16

,831.2

1)

(9,662.

61)

(162,1

19.38)

(14,89

3.94)

(70

3.79)

(71

,950.7

3)

(5,561.

08)

(4,414.

16)

(4,8

84.36)

(42.85

)

(2,3

79.30)

(6,9

53.43)

(2,1

67.20)

(30

2,564.

04)

Dep

reciati

on/Am

ortizati

on for

the yea

r-

(96

6.08)

(447.4

1)

(8,9

27.64)

(3,145.

65)

(33

.27)

(5,544.

17)

(31

5.94)

(130.9

8)

(220.3

6)

-

(16

5.64)

(582.8

7)

(1,7

34.53)

(22

,214.5

4)

Rec

lassific

ation

-

(0.07)

-

(0.2

8)

-

-

16.68

(0.1

5)

-

(0.1

5)

-

(0.06)

(15

.50)

-

0.47

Dispos

al/write

-off-

99.

09

-

70.19

-

19.

15

759

.24

141.83

-

16.

86

-

113.97

353.43

1,462.

83

3,0

36.59

Acc

umula

ted dep

reciati

on / A

mortiz

ation

as at D

ec 31, 1

3-

(17

,698.2

7)

(10,11

0.02)

(17

0,977.

11)

(18

,039.5

9)

(717.9

1)

(76,71

8.98)

(5,7

35.34)

(4,5

45.14)

(5,088.

01)

(42

.85)

(2,431.

03)

(7,198.

37)

(2,438.

90)

(321,7

41.52)

Accum

ulated

impai

rment

As at J

an 1, 13

-

-

-

(15

.33)

-

-

-

-

-

-

-

-

-

-

(15

.33)

As at D

ec 31, 1

3-

-

-

(15.33

)

-

-

-

-

-

-

-

-

-

-

(15.33

)

Net

book

value

As at D

ec 31, 1

26,9

29.54

9,8

56.31

19,193

.18

89,263

.54

15,

482.57

100.97

72,708

.95

1,1

08.62

1,5

17.08

1,095.

73

-

502

.52

2,2

55.47

3,2

29.92

223,24

4.40

As at D

ec 31, 1

37,2

13.69

9,8

61.74

18,754

.23

81,566

.35

14,

233.91

169.62

79,698

.46

1,1

80.13

1,5

15.32

1,111.

37

-

560

.12

2,3

92.93

1,7

99.45

220,05

7.32

Separa

te fina

ncial s

tateme

nt


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:

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.

Unit : Million BahtSeparate financial statementDec 31, 13 Dec 31, 12

Structures 8,998.16 8,556.07 Reservoirs and dams 8.40 8.40 Power Plants 48,185.47 47,813.40 Equipment for power plants 8,123.79 7,462.35 Control system 449.97 456.14 Transmission system 13,579.83 13,308.55 Communication system 4,080.70 3,928.79 Coal handling system 3,224.80 2,774.24 Machinery 4,030.90 4,014.99 Large-sized spare parts for mine equipment 42.85 42.85 Vehicles 1,868.45 1,867.06 Other materials and supplies 4,663.36 4,261.62

Total 97,256.68 94,494.46

(TRAN

SLAT

ION)

- 4

7 -

6.1

1 Work

under

Const

ructio

n Un

it : M

illion

Baht

Struct

ures

Reser

voirs

Powe

r plan

tsCo

ntrol

Trans

missio

nCo

mmun

icatio

nCoal

hand

ling

Machi

nery

Other

Major

Co

mpute

rMa

terials

forMa

terials

in To

taland

dams

system

system

and

system

system

mater

ials an

dins

pectio

nSof

tware

work

under

tra

nsport

ation

explor

ation

suppli

esfee

constr

uction

of tra

nsmissi

on sys

temBri

ng for

ward

as at J

an 1, 1

31,2

70.22

499

.02

12,651

.11

122.16

22,146

.90

518

.92

305

.17

101

.48

9.7

5

305.09

-

2,200.

09

13,

884.98

54,014

.89

Inc

rease

during

the pe

riod

1,351.

30

152.77

23,

106.53

7.4

2

8,907.

01

190

.30

463

.37

53.

67

164.58

2,336.

09

44.

01

1,3

06.17

3,699.

55

41,

782.77

2,621.

52

651.79

35,

757.64

129

.58

31,

053.91

709.22

768.54

155.15

174.33

2,641.

18

44.

01

3,5

06.26

17,584

.53

95,

797.66

Transf

erred

to prop

erty, p

lant, e

quipm

ent

an

d othe

rs(99

9.07)

(8.17)

(564.7

5)

(10

5.54)

(12,83

0.90)

(388.1

9)

(14

4.12)

(155.1

5)

(40

.89)

(304.0

6)

(1.

29)

(7.

23)

-

(15,54

9.36)

Tra

nsferr

ed to w

ork un

der co

nstruc

tion

of

powe

r pant

s and

transm

ission

syste

m-

-

-

-

-

-

-

-

-

-

-

(93

6.78)

(16

,899.5

0)

(17

,836.2

8)

Transf

erred

to mate

rials f

or wo

rk und

er

const

ructio

n of tr

ansmi

ssion

system

-

-

-

-

-

-

-

-

-

-

-

-

(11

4.15)

(11

4.15)

Carry

forw

ard as

at De

c 31, 1

31,6

22.45

643

.62

35,192

.89

24.04

18,223

.01

321

.03

624

.42

-

133

.44

2,3

37.12

42.72

2,562.

25

570

.88

62,297

.87

Conso

lidate

d fina

ncial s

tatem

ent

Unit :

Milli

on Ba

ht

Struct

ures

Reser

voirs

Powe

r plan

tsCo

ntrol

Trans

missio

nCo

mmun

icatio

nCo

al hand

lingOt

herMa

jor

Comp

uter

Mater

ials for

Mater

ials in

Total

and da

mssys

temsys

tem an

d sys

temsys

temma

terials

and

inspec

tion

Softwa

rewo

rk un

der

transp

ortati

onexp

lorati

onsup

plies

feecon

struct

ion of

transm

ission

system

Bring

forwa

rd as

at Jan

1, 13

1,268.

46

499.02

12,651

.01

122.16

22,

146.90

518.92

305

.17

3.3

6

305

.09

-

2,2

00.09

13,

884.98

53,905

.16

Increa

se dur

ing the

perio

d1,3

21.79

152

.77

23,

103.46

7.4

2

8,9

07.01

190.30

463

.37

124

.97

2,336.

09

42.

72

1,3

06.17

3,6

99.55

41,655

.62

2,590.

25

651.79

35,754

.47

129.58

31,

053.91

709.22

768

.54

128

.33

2,641.

18

42.

72

3,5

06.26

17,

584.53

95,560

.78

Transf

erred

to prop

erty, p

lant, e

quipm

ent

an

d othe

rs(97

6.72)

(8.

17)

(56

4.75)

(105.5

4)

(12,83

0.90)

(38

8.19)

(144.1

2)

(11

.22)

(30

4.06)

-

(7.23)

-

(15,34

0.90)

Tra

nsferr

ed to w

ork un

der co

nstruc

tion

o

f pow

er pant

s and

transm

ission

syste

m-

-

-

-

-

-

-

-

-

-

(936.7

8)

(16

,899.5

0)

(17,83

6.28)

Tra

nsferr

ed to m

ateria

ls for

work

under

c

onstru

ction o

f trans

missi

on sys

tem-

-

-

-

-

-

-

-

-

-

-

(114.1

5)

(11

4.15)

Carry

forw

ard as

at De

c 31, 1

31,6

13.53

643

.62

35,

189.72

24.

04

18,

223.01

321.03

624

.42

117

.11

2,337.

12

42.

72

2,5

62.25

570

.88

62,269

.45

Separa

te fina

ncial s

tatem

ent


EGAT had work under construction project as follows:

Unit : Million Baht

Project Dec 31, 13 Dec 31, 12 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

Total 62,297.87 54,014.89 62,269.45 53,905.16


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 Unit : Million Baht

Dec 31, 13 Dec 31, 12Cost at the beginning of period 752.91 1,913.62 Goodwill amortization from disposal of long-term investment - (660.15) Goodwill amortization from power purchase agreement cancellation - (546.45) Differences from exchange rate adjustment 10.83 45.89 Net book value at the end of period 763.74 752.91


(TRAN

SLAT

ION)

- 4

9 -

6.13 O

ther I

ntangi

ble As

sets

Unit

: Milli

on B

aht

Cons

olida

ted fin

ancia

l stat

emen

tLa

nd

Comp

uter

Roya

lty on

Gas p

iped

Tran

smiss

ionPr

oject

Total

right

sso

ftwar

e righ

tssta

te pr

oper

tysy

stem

syste

mde

velop

ment

and s

oftwa

reser

vice

right

sco

nnec

tion

right

slic

ense

righ

tsCo

st as

at Ja

n 1, 1

324

,746.3

4

1,650

.04

47

4.77

6.25

29

.69

7,267

.97

34

,175.0

6

Incre

ase d

uring

the p

eriod

1,551

.35

57

.73

-

-

-

-

1,609

.08

Tr

ansfe

rred f

rom

work

unde

r con

struc

tion

-

1.3

0

-

-

-

-

1.30

Ex

chan

ge ra

te dif

feren

ces f

rom

curre

ncy

trans

lation

-

(4

.79)

-

-

-

(552

.94)

(557

.73)

Recla

ssific

ation

-

1.3

4

-

-

-

-

1.34

Di

spos

al/wr

ite-o

ffs-

(23.4

7)

-

-

-

-

(2

3.47)

Cost

as at

Dec

31, 1

326

,297.6

9

1,682

.15

47

4.77

6.25

29

.69

6,715

.03

35

,205.5

8

Accu

mulat

ed am

ortiz

ation

as at

Jan 1

, 13

(3,83

8.09)

(7

43.76

)

(2

48.21

)

(2

.03)

(9

.78)

(1

,633.1

1)

(6,47

4.98)

Am

ortiz

ation

for t

he ye

ar(0

.87)

(2

19.97

)

(6

.34)

(0

.31)

(3

.71)

(2

97.38

)

(5

28.58

)

Ex

chan

ge ra

te dif

feren

ces f

rom

curre

ncy

trans

lation

-

(1

.81)

-

-

-

139.5

0

13

7.69

Recla

ssific

ation

-

(0

.47)

-

-

-

-

(0

.47)

Di

spos

al/wr

ite-o

ffs-

23.35

-

-

-

-

23

.35

Accu

mulat

ed am

ortiz

ation

as

at D

ec 31

, 13

(3,83

8.96)

(9

42.66

)

(2

54.55

)

(2

.34)

(1

3.49)

(1,79

0.99)

(6

,842.9

9)

Net b

ook v

alue

As at

Dec

31, 1

220

,908.2

5

906.2

8

22

6.56

4.22

19

.91

5,634

.86

27

,700.0

8

As at

Dec

31, 1

322

,458.7

3

739.4

9

22

0.22

3.91

16

.20

4,924

.04

28

,362.5

9


6.14 Land Awaiting Development Unit : Million Baht

Dec 31, 13 Dec 31, 12 Dec 31, 13 Dec 31, 12Balance at the beginning of the year 2,544.90 2,544.90 2,239.51 2,239.51 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


Unit : Million Baht Separate financial statement

Land Computer Royalty on Totalrights software rights state property

and software license serviceCost as at Jan 1, 13 24,746.34 1,612.46 474.77 26,833.57 Increase during the period 1,551.35 29.32 - 1,580.67 Reclassification - 1.34 - 1.34 Disposal/ write-off - (23.47) - (23.47) Cost as at Dec 31, 13 26,297.69 1,619.65 474.77 28,392.11 Accumulated amortization

as at Jan 1, 13 (3,838.09) (720.04) (248.21) (4,806.34) Amortization for the year (0.87) (213.40) (6.34) (220.61) Reclassification - (0.47) - (0.47) Disposal/ write-off - 23.35 - 23.35Accumulated amortization

as at Dec 31, 13 (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



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

Dec 31, 13 Dec 31, 12Deferred tax assets 141.02 129.88 Deferred tax liabilities (1,942.95) (2,185.54) Total (1,801.93) (2,055.66)


6.15.2 Income tax

Unit : Million Baht

Jan 1-Dec 31, 13 Jan 1-Dec 31, 12Income tax

Current income tax 1,291.01 1,783.61 Income tax of previous year which is over recorded (4.65) (95.54) Total 1,286.36 1,688.07

Deferred taxChange in temporary differences 7.37 (800.83) Total 7.37 (800.83) Grand total 1,293.73 887.24


191


6.15.3 Movements in deferred tax assets and deferred tax liabilities Unit : Million Baht

As at Exchange As at Jan 1, 13 Profit or Other differences Dec 31, 13

loss comprehensiveincome

Deferred tax assetsAllowance for spare parts and supplies 112.74 9.33 - - 122.07 Provision for employee benefits 17.22 1.70 - - 18.92 Finance leases liabilities (0.08) 0.11 - - 0.03

129.88 11.14 - - 141.02 Deferred tax liabilities

Income taxes of other comprehensive income (loss) (93.63) - 93.63 - - Depreciation and amortization (3,214.95) 142.28 - 257.74 (2,814.93) Deferred expenses 151.60 (142.51) - (9.09) - Accumulated losses 1,042.32 93.86 - (96.69) 1,039.49 Others (70.88) (112.14) - 15.51 (167.51)

(2,185.54) (18.51) 93.63 167.47 (1,942.95)

Consolidated financial statement(Charged)/credited to:

As at Exchange As at Jan 1, 12 Profit or Other differences Dec 31, 12

loss comprehensiveincome

Deferred tax assetsAllowance for spare parts and supplies 101.00 11.74 - - 112.74 Provision for employee benefits 16.63 0.59 - - 17.22 Available-for-sale security 6.13 - (6.13) - - Losses carry forward 65.90 (65.90) - - - Finance leases liabilities (0.03) (0.05) - - (0.08)

189.63 (53.62) (6.13) - 129.88 Deferred tax liabilities

Income taxes of other comprehensive income (loss) - - (93.63) - (93.63) Depreciation and amortization (3,058.17) (199.07) - 42.29 (3,214.95) Deferred expenses 234.70 (81.07) - (2.03) 151.60 Accumulated Losses - 1,055.87 - (13.55) 1,042.32 Others (122.55) 78.72 (28.00) 0.95 (70.88)

(2,946.02) 854.45 (121.63) 27.66 (2,185.54)

Consolidated financial statement(Charged)/credited to:



6.16 Other Non-Current AssetsUnit : Million Baht

Consolidated financial statementOverburden Minerals Resettlement Mineral Total

removal resource costs Patent costscosts exploration and

preliminary development costs

- Deferred Charges of the Lignite Mine

Deferred charges as at Jan 1, 13 88,747.97 645.67 1,988.44 281.14 91,663.22 Increase during the period 5,955.41 - - - 5,955.41 Deferred charges as at Dec 31, 13 94,703.38 645.67 1,988.44 281.14 97,618.63 Amortization as at Jan 1, 13 (88,747.97) (303.73) (1,631.73) (46.48) (90,729.91) Increase during the period (5,955.41) (10.60) (54.06) (11.25) (6,031.32) Amortization as at Dec 31, 13 (94,703.38) (314.33) (1,685.79) (57.73) (96,761.23) Net book valueAs at Dec 31, 12 - 341.94 356.71 234.66 933.31 As at Dec 31, 13 - 331.34 302.65 223.41 857.40

- OthersAs at Dec 31, 12 5,817.57 Adjustment (20.00)

5,797.57 Reclassification 331.85 As at Dec 31, 12 - (adjusted and reclassified) 6,129.42 As at Dec 31, 13 2,436.00

Total other non-current assetsAs at Dec 31, 12 - (adjusted and reclassified) 7,062.73 As at Dec 31, 13 3,293.40

193


Unit : Million BahtSeparate financial statement

Overburden Minerals Resettlement Mineral Totalremoval resource costs Patent costs

costs exploration andpreliminary

development costs- Deferred Charges of the

Lignite MineDeferred charges as at Jan 1, 13 88,747.97 645.67 1,988.44 281.14 91,663.22 Increase during the period 5,955.41 - - - 5,955.41 Deferred charges as at Dec 31, 13 94,703.38 645.67 1,988.44 281.14 97,618.63 Amortization as at Jan 1, 13 (88,747.97) (303.73) (1,631.73) (46.48) (90,729.91) Increase during the period (5,955.41) (10.60) (54.06) (11.25) (6,031.32) Amortization as at Dec 31, 13 (94,703.38) (314.33) (1,685.79) (57.73) (96,761.23) Net book valueAs at Dec 31, 12 - 341.94 356.71 234.66 933.31 As at Dec 31, 13 - 331.34 302.65 223.41 857.40

- OthersAs at Dec 31, 12 631.36 Reclassification 331.85 As at Dec 31, 12 - ( reclassified) 963.21 As at Dec 31, 13 723.82

Total other non-current assetsAs at Dec 31, 12 - ( reclassified) 1,896.52 As at Dec 31, 13 1,581.22

6.17 Trade Accounts Payable - Others Unit : Million Baht

Dec 31, 13 Dec 31, 12 Dec 31, 13 Dec 31, 12Trade payable - electric energy purchased 33,840.82 18,855.94 33,840.82 18,855.94 Trade payable - fuel for electricity generating 19,732.48 11,540.11 19,732.48 11,540.11 Trade payable - fuel for providing 2,962.82 2,096.59 2,962.82 2,096.59 Others 9,694.52 9,519.64 2,703.92 2,490.80

Total 66,230.64 42,012.28 59,240.04 34,983.44




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

Dec 31, 13 Dec 31, 12 Dec 31, 13 Dec 31, 12Long - term loans at the beginning of the year 91,406.06 102,468.27 62,722.52 66,495.49 Increase during the period 16,065.70 11,147.35 13,000.00 11,000.00 Repayments (22,561.45) (20,976.02) (4,964.75) (14,640.57) Gain on repayments (9.56) (26.70) (9.56) (26.70) Gain from derivatives (5.70) (62.89) (5.70) (62.89) (Gain) Loss on exchange rate adjustment /

Exchange rate differences fromcurrency translation (1,569.39) (1,143.95) 153.86 (42.81)

Long - term loans at the end of the year 83,325.66 91,406.06 70,896.37 62,722.52 Less Current portion of long - term loans (11,590.86) (9,333.67) (6,480.10) (4,980.01)

Balance 71,734.80 82,072.39 64,416.27 57,742.51


195


Long - Term loans are as follows :Consolidated financial statement

Foreign Million Foreign Million currencies Baht currencies Baht

Unit : million Unit : millionLocal sources secured by the Ministry of Finance:EGAT bonds

Fixed rate due within 2013 - 2020 - 8,000.00 - 9,000.00 8,000.00 9,000.00

Local sources unsecured by the Ministry of Finance:Ministry of Finance loans

Fixed rate due within 2013 - 2027 - 83.49 - 88.34 EGAT bonds

Fixed rate due within 2013 - 2033 - 61,250.00 - 51,781.90 Debenture

Fixed rate due within 2013 - 2015 - 5,681.34 - 9,618.20 Other financial institutions

Floating rate due within 2013 - 2020 - 930.14 - 941.19 Fixed rate due in 2016 - 1,200.00 - 1,200.00

69,144.97 63,629.63 Foreign sources secured by the Ministry of Finance:Loans

Japanese Yen:Fixed rate due in 2013 - - 419.51 150.17 Euro:Fixed rate due within 2013 - 2014 0.09 3.93 0.17 7.09 Fixed rate due within 2013 - 2037 34.40 1,558.95 41.48 1,695.02

Foreign sources unsecured by the Ministry of Finance: 1,562.88 1,852.28 Loans

AUD Dollars:Floating rate due within 2013 - 2015 1.57 (45.62) 367.61 11,632.58

DebentureJapanese Yen:Fixed rate due in 2026 15,000.00 4,663.43 15,000.00 5,291.57

4,617.81 16,924.15 Total 83,325.66 91,406.06

Less: Current portion of long-term loans (11,590.86) (9,333.67) Balance 71,734.80 82,072.39

Dec 31, 13 Dec 31, 12



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.


Foreign Million Foreign Million currencies Baht currencies Baht

Unit : million Unit : millionLocal sources secured by the Ministry of Finance:EGAT bonds


Local sources unsecured by the Ministry of Finance:Ministry of Finance loans

Fixed rate due within 2013 - 2027 - 83.49 - 88.34 EGAT bonds


Foreign sources secured by the Ministry of Finance:Loans

Japanese Yen:Fixed rate due in 2013 - - 419.51 150.17 Euro:Fixed rate due within 2013 - 2014 0.09 3.93 0.17 7.09 Fixed rate due within 2013 - 2037 34.40 1,558.95 41.48 1,695.02

1,562.88 1,852.28 Total 70,896.37 62,722.52

Less: Current portion of long-term loans (6,480.10) (4,980.01) Balance 64,416.27 57,742.51

Dec 31, 13 Dec 31, 12

197


As at December 31, 2013, long - term loans can be classified by interest rate as follows: Unit : Million Baht

Dec 31, 13 Dec 31, 12 Dec 31, 13 Dec 31, 12Floating rate 884.52 12,573.77 - - Fixed rate 82,441.14 78,832.29 70,896.37 62,722.52

Total 83,325.66 91,406.06 70,896.37 62,722.52


Interest rate of long-term loans as at December 31, 2013 are as follows:

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.

3.240% to 6.235% 3.240% to 6.235%


6.927% to 8.554%

3.000% to 3.000%

2.720% to 3.940%

0.000% to 8.000%

6.927% to 8.554%

3.000% to 4.350%

0.000% to 8.000%

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.



Movement in the present value of the defined benefit obligations:Unit : Million Baht

Dec 31, 13 Dec 31, 12 Dec 31, 13 Dec 31, 12Beginning balance 13,562.46 12,155.17 13,475.64 12,074.49 Current service costs 572.03 529.94 555.81 517.12 Interest on obligations 512.77 495.02 509.41 492.12 Actuarial (gains) losses (5.81) 1,439.35 - 1,439.35 Actual payment (589.76) (1,056.95) (585.14) (1,047.44) Exchange rate differences from

currency translation (0.44) (0.07) - - Ending balance 14,051.25 13,562.46 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

Jan 1-Dec 31, 13 Jan 1-Dec 31, 12 Jan 1-Dec 31, 13 Jan 1-Dec 31, 12Expenses realized in statements of income

Cost of sales 600.91 564.07 600.91 564.07 Selling expenses 6.90 5.85 6.90 5.85 Administrative expenses 368.84 343.69 349.26 327.97 Total 976.65 913.61 957.07 897.89

Cost of assets / liabilities realized in statements of financial positionMaterials and supplies 39.98 44.19 39.98 44.19 Work under construction 66.83 67.32 66.83 67.32 Provision liabilities for mine reclamation 1.34 1.39 1.34 1.39 Total 108.15 112.90 108.15 112.90 Grand Total 1,084.80 1,026.51 1,065.22 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.

199


Principle actuarial assumptions of EGAT Annual

percentage (%)Discount rate 3.9Inflation rate

Consumer price index 3.5Post-employment medical care 10

Resignation rate 0.0 - 0.8Salary escalation rate 6 - 11Mortality rate, by table TMO08

(Thai mortalitytable A.D.2008)

6.21 Provision Liabilities for Mine ReclamationUnit : Million Baht

Consolidated financial statement Separate financial statementDec 31, 13 Dec 31, 12 Dec 31, 13 Dec 31, 12

Balance at the beginning of the year 2,047.40 1,982.70 2,047.40 1,982.70 Add : Increase during the period 128.14 130.65 128.14 130.65

2,175.54 2,113.35 2,175.54 2,113.35 Less : Mine reclamation expenses (91.62) (62.23) (91.62) (62.23)

Depreciation (3.61) (3.72) (3.61) (3.72) Balance at the end of the year 2,080.31 2,047.40 2,080.31 2,047.40



6.22 Other Non-Current LiabilitiesUnit : Million Baht

Consolidated financial statement Separate financial statementDec 31, 13 Dec 31, 12 Dec 31, 13 Dec 31, 12

Deferred IncomeBalance at the beginning of the year 6,100.59 5,156.23 6,120.59 5,156.23 Add : Contribution received 691.55 1,472.41 691.55 1,492.41

6,792.14 6,628.64 6,812.14 6,648.64 Less : Recognized to other revenue (431.69) (526.71) (431.69) (526.71)

Decrease in depreciation (1.34) (1.34) (1.34) (1.34) Balance at the end of the year 6,359.11 6,100.59 6,379.11 6,120.59 Retention 8,475.46 6,623.86 8,475.46 6,623.86 Cash received from breaking

agreement in case of conflict 848.47 841.16 848.47 841.16 Others 1,512.80 1,580.26 899.02 918.14

Total 17,195.84 15,145.87 16,602.06 14,503.75

6.23 Owners' EquityContribution from The Government

Unit : Million BahtConsolidated financial statement Separate financial statement

Dec 31, 13 Dec 31, 12 Dec 31, 13 Dec 31, 12Capital 6,507.64 6,507.64 6,507.64 6,507.64 Contribution for supporting construction

of the Srinagarind, Bang Lang,Vajiralongkorn, Rajjaprabha and Pak Mun Dam 4,364.75 4,364.75 4,364.75 4,364.75

Less : Accumulated depreciation (1,808.08) (1,745.74) (1,808.08) (1,745.74) Depreciation for the period (62.34) (62.34) (62.34) (62.34)

2,494.33 2,556.67 2,494.33 2,556.67 Balance 9,001.97 9,064.31 9,001.97 9,064.31

201


6.24 Revenue from Sales of Other Goods and ServicesUnit : Million Baht

Consolidated financial statement Separate financial statementJan 1-Dec 31, 13 Jan 1-Dec 31, 12 Jan 1-Dec 31, 13 Jan 1-Dec 31, 12

Revenue from telecommunication services 575.20 416.62 575.20 416.62

Revenue from fuel providing 20,753.37 24,266.13 21,742.48 27,360.26 Revenue from operation and

maintenance services 1,353.67 881.75 3,081.08 2,079.98 Others 1,410.64 1,183.69 647.93 519.34

Total 24,092.88 26,748.19 26,046.69 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 SalesUnit : Million Baht


Electric energy purchased 240,967.69 209,206.82 289,284.49 261,334.91 Fuel 170,829.26 176,240.28 134,416.99 136,189.64 Generating expenses 34,067.86 34,962.81 27,129.11 27,615.13 Transmission expenses 10,614.20 9,781.51 10,614.20 9,781.51

Total 456,479.01 430,191.42 461,444.79 434,921.19



6.26 Cost of Sales of Other Goods and Services Unit : Million Baht


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 RevenuesUnit : Million Baht


Interest income 2,020.45 1,992.50 1,547.22 1,380.57 Dividend income 220.90 188.31 2,283.82 2,203.88 Profit on disposal of assets - - - 13.37 Gain on foreign exchange 22.97 634.43 - - Gain on changes in the fair value

of derivatives 104.29 150.90 104.29 150.90 Gain on disposal of long-term

investment - 783.68 - - Gain from power purchase agreement

cancellation - 1,069.44 - - Contribution income 257.17 287.82 257.17 287.82 Fine income 136.37 124.24 136.37 124.24 Income on disposal of fly ash and scrap 379.75 340.89 379.75 340.89 Miscellaneous income 55.87 26.47 55.87 26.47 Others 1,576.43 515.88 371.32 138.18

Total 4,774.20 6,114.56 5,135.81 4,666.32

203


6.28 Other Expenses

Unit : Million BahtConsolidated financial statement Separate financial statement

Jan 1-Dec 31, 13 Jan 1-Dec 31, 12 Jan 1-Dec 31, 13 Jan 1-Dec 31, 12Loss on foreign exchange rate - - 682.22 163.94 Loss on disposal of assets 187.16 61.47 159.31 - Others 53.02 34.75 53.02 34.75

Total 240.18 96.22 894.55 198.69

6.29 Share of Profit from Investments in Associates

Unit : Million BahtConsolidated financial statement

Dec 31, 13 Dec 31, 12Electricity Generating Plc. 1,851.83 3,011.13 First Korat Wind Co., Ltd. 122.39 (6.26) K.R. Two Co., Ltd. 89.43 (12.04) Nam Ngiep 1 Power Co., Ltd. (5.96) -

Total 2,057.69 2,992.83

6.30 Finance Costs Unit : Million Baht

Interest Expenses relatingexpenses to the loans Jan 1-Dec 31, 13 Jan 1-Dec 31, 12

Capitalized to work under construction 571.80 0.76 572.56 287.90 Finance costs in the statements of income 4,168.13 248.68 4,416.81 5,343.21

Total 4,739.93 249.44 4,989.37 5,631.11

Unit : Million Baht

Interest Expenses relatingexpenses to the loans Jan 1-Dec 31, 13 Jan 1-Dec 31, 12

Capitalized to work under construction 571.80 0.76 572.56 285.72 Finance costs in the statements of income 2,737.71 1.73 2,739.44 2,899.37

Total 3,309.51 2.49 3,312.00 3,185.09



Total

Total



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

Unit : Million BahtConsolidated financial statement Separate financial statementJan 1-Dec 31, 13 Jan 1-Dec 31, 12 Jan 1-Dec 31, 13 Jan 1-Dec 31, 12

Electric energy purchased 240,967.69 209,206.82 289,284.49 261,334.91 Work performed by the enity and capitalized (36,754.40) (24,888.54) (36,754.40) (24,888.54) Raw materials and consumables used 173,561.05 178,959.54 137,574.11 141,818.76 Management benefit expenses 350.59 391.89 147.20 145.47 Employee benefit expenses 28,164.06 29,465.42 27,729.33 29,001.72 Depreciation of property, plant and

equipment 25,473.99 24,713.86 22,135.57 21,297.41 Amortization of intangible assets 528.37 559.80 220.40 222.39 Hire and maintenance expenses 6,402.63 7,342.37 5,505.99 5,290.77 Other expenses 57,037.67 47,725.82 54,992.23 46,170.25

Total 495,731.65 473,476.98 500,834.92 480,393.14

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:

205


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



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.

207


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:

Amount Availability EnergyCompany Capacity payment (AP) payment (EP)

Power producers (megawatt) (Million Baht) (Million Baht) (Million Baht)Power Project Developers in Lao People's Democratic Republic

Theun Hinboun Power Company Limited 1 434 26 2014-2039 123,067 - 123,067 Houay Ho Power Company Limited 1 126 16 2014-2029 16,119 - 16,119 Nam Theun Project 2 1 920 22 2014-2035 190,235 - 190,235 Nam Ngum Project 2 1 454 24 2014-2037 103,588 - 103,588 Hongsa Lignite Project 1 1,473 27 2015-2041 525,083 319,050 206,033 Xayaburi Project 1 871 29 2019-2047 414,185 - 414,185 Nam Ngiep Project 1 1 249 28 2019-2046 94,115 - 94,115 Xe-Pien Xe-Nam Noy 1 349 28 2019-2046 102,983 - 102,983

Independent Power Producers (IPP)Electricity Generating Public Company Limited (EGCO)As formerly, Rayong Electricity Generating Company

Limited(REGCO) 1 1,161 1 2014-2014 12,019 1,917 10,102 Khanom Electricity Generating Company Limited

(KEGCO) 1 748 3 2014-2016 38,974 3,721 35,253 Tri Energy Company Limited (TECO) 1 700 7 2014-2020 73,176 5,216 67,960 Eastern Power Electric Company Limited (EPEC) 1 350 10 2014-2023 59,780 9,302 50,478 Global Power Synergy Company Limited (GPSC)As formerly, Independent Power (Thailand) Company

Limited (IPT) 1 700 12 2014-2025 139,910 17,636 122,274 Ratchaburi Electricity Generating Company Limited

(RGCO) 1 3,481 14 2014-2027 823,318 116,124 707,194 Glow IPP Company Limited (GIPP) 1 713 14 2014-2027 176,188 22,150 154,038 Gulf Power Generation Company Limited (GULF) 1 1,468 20 2014-2033 528,132 77,922 450,210 Ratchaburi Power Company Limited (RPCL) 1 1,400 20 2014-2033 529,286 63,202 466,084 BLCP Power Company Limited (BLCP) 1 1,347 19 2014-2032 251,726 86,397 165,329 Gheco One Company Limited (GHECO ONE) 1 660 24 2014-2037 319,555 107,386 212,169 Gulf JP UT Company Limited (GUT)As formerly, Siam Energy Company Limited (SEC) 1 1,600 25 2015-2039 765,954 119,149 646,805 Gulf JP NS Company Limited (GNS)As formerly, Power Generation Supply Company

Limited (PGS) 1 1,600 26 2014-2039 764,771 107,007 657,764 Small Power Producers (SPP) 75 6,722 6-26 Years 3,598,731 660,901 2,937,830

Total 96 27,526 9,650,895 1,717,080 7,933,815

Remaining life of contract

(years)



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.

209


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:

Unit : Million BahtTerms of cross currency and interest rate swap agreements Dec 31, 13 Dec 31, 12

Yen 6,712 million / Baht 2,456 million - 153.54 - 153.54

The maturity of agreements can be analyzed as follows :Unit : Million Baht

Dec 31, 13 Dec 31, 12More than 5 years - 153.54

- 153.54

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.



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 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:


Contract price Fair value Contract price Fair valueLong - term loans - local sources 69,333.49 71,093.64 60,870.24 64,210.01 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

211


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.

_________________________________


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.

A Leader of Clean Energy Technology · plant model. EGAT intends to become a leader in using clean...

Documents

Transcript of A Leader of Clean Energy Technology · plant model. EGAT intends to become a leader in using clean...