Green Earth Energy Annual Report 2 0 1 5 Contents Organization Structure Board of Directors 21 Executives 31 Organization Chart 42 Workforce Structure 44 04-09 Capital Structure Equities 45 Performance Report of 2015 4 Loan Liabilities 45 Report of the Audit Committee Budget and Remittance to Year 2015 6 the Ministry of Finance (MOF) 45 Report of the Sub-Committee on Risk Management Plan Assessment 8 Report of the Good Corporate Governance Sub-Committee 9 10-18 46-49 General Information Key Present and Future Plans Background 10 and Projects Statement of Direction (SOD) 11 Vision, Mission, Values and Strategy 12 Important Investment Plans and Projects 46 Related Business and Assets Types of Business 14 Value ’s Creation 47 Financial Highlights 15 Investment in Controlled Entity 49 Main Factor Affecting MEA 17 ภาวะเศรษฐกิจและแนวโน้มสถานการณ์พลังงาน 18 Good Coperate Governance Good Corporate Governance 73 Structure and responsibility of the Board of Directors, Committees and Sub-committees 79 Meetings and Remunerations 86 Remuneration for the MEA Executives 90 Report On Compliance With The Official Information 51-63 Act B.E.2540 (1997) In 2015 91 Performance Results Performance Results 51 Financial Reports Performance Analysis 53 Report of the Responsibility Performance Highlights 58 of the Board of Directors Key Activities in 2015 63 for the Financial Report 93 Auditor’s Report 94 Financial Statements and Notes to the Financial Statements 96 129-131 Information and Statistics General Information 129 67-72 Power Distribution System 130 Customers and Energy Sales 131 Organizational Management Enterprise Risk Management 67 Business Continuity Management 70 Internal Control 71 MEA Locations Internal Audit 72 and Contact Channels 132 Performance Report of 2015 The Metropolitan Electricity Authority (MEA) wishes to report on the achievements of its operation in 2015 which have been based on the MEA Corporate Plan (2012 - 2016) (Fourth revision) covering plans and projects and MEA’s main mission. In 2015, MEA has been successful in driving its organizational strategies to upgrade the quality of the electricity distribution system and the services to cope with the demand for electricity and the changing lifestyle of customers as well as the preparation of Thailand to participate in the ASEAN Economic Community (AEC). The achievements of MEA in 2015 can be highlighted as follows: Response to the government policy MEA has given importance to the adoption of the government policy, the Cabinet resolutions and the Prime Minister’s order. In supporting the national events of “Bike for Mom” and “Bike for Dad”, MEA opened an operation center to monitor closely the status of the electricity system throughout the events. Furthermore, with the attempt to promote a reconciliation and unanimity of the nation through the elimination of inequality among the people in the society and to provide all people with opportunities to access the government services, the MEA mobile services have visited communities and met with their leaders in order to establish relationship and mutual understanding. Through the energy and environmental conservation activities, MEA has promoted the value of energy and environmental conservation among the youth and their families and has created a related network. Regarding the anti- corruption measures, MEA signed a Memorandum of Understanding on anti–corruption cooperation with the organizations under the Ministry of Interior, the Thai Chamber of Commerce and the Anti-corruption Organization of Thailand. MEA has also promoted the awareness of their employees in integrity, good conduct and fairness. To provide safety to the people and their property and for energy saving, MEA has installed street lighting in the risky area and supplied electricity to the CCTV, an activity which is additional to the implementation of the on-going project of LED Street Light for the tourist attraction areas and communities. Customers Attempt has been made by MEA to develop its service system to reach the target of beyond expectation level. In 2015, the number of customers was approximately 3,522,038, an increase of 126,671 customers or 3.73 percent of the preceding year. To cope with the changing lifestyle of the customers which needs to access all services conveniently and speedily anywhere and anytime, MEA has developed its service further from the previous year by using IT to create innovations in service. In the project to increase the efficiency of the billing system, for example, MEA has introduced an on-line payment through a number of MEA agents which has been increasing in 2015. With the further development of the “MEA Smart Life” system, it has been possible for customers to make payment for electricity fee by means of credit cards, by using QR code or Bar code at the counter services and at TESCO LOTUS Stores. It is also possible for the customers to trace back their use of electricity and to check the points of payment with the map and virtual images. In billing, MEA has improved the billing pattern to be on-site billing which allows the customers to check the correctness of the record on the amount of electricity used immediately. An additional channel to listen to the customers’ voice has also been provided. For the application for use of electricity, the “MEA Service Tracking” has been developed and provided on the MEA website www.mea.or.th to facilitate the applicants for use of electricity in checking or inquiring about the status of their application. Regarding the field work, the field forces management system has been developed to increase the efficiency of the field work and the service in solving the problem of power interruption. An automatic system has been introduced to allow the customers to inform MEA of the problem by means of smart phone through the “MEA Smart Life” system. As a result of the development of the Customer Service, MEA has been able to send SMS to the customers concerning status/ warning of payment such as the monthly statement of the electricity fee, the receipt of payment through bank account/direct payment. The customers can apply for the service through the project “MEA Pay & Fun Club”. 4 Metropolitan Electricity Authority Internal process MEA has continuously developed the quality of the electricity distribution system to cope with the increasing demand for electricity and the participation of Thailand in the AEC.Tough the implementation of the projects in electricity distribution system improvement and expansion and the project regarding the replacement of the overhead lines by the underground cables in several areas, MEA has been able to meet the maximum demand of 8,756 MW in 2015 and to increase the reliability and security of the electricity system to ensure the safety of the customers and the general public. As for the security index of the electricity system in 2015, the system average interruption frequency (SAIFI) was 1.369 times/customer/year and the system average interruption duration index (SAIDI) was 35.700 minutes/customer/year. Moreover, modern information and communication technology system has been introduced in the development of the working systems and in efficiency improvement of MEA. MEA has implemented the quality management system in their technical work as well as in their service, both the general service and the service of which MEA has a guarantee with the customers. MEA has also implemented the relevant international, regional and national standards such as ISO 9001 : 2008, ISO/IEC 17025 : 2005, ISO/IEC 27001 : 2005, ISO 26000, ISO 22301, CMMI, EN 1047-2 Fire resisting data room, TIS 18001-1999, etc. Learning and development With the aim of providing service of the beyond expectation level meet the customers’ demand, MEA has continuously developed the organization in accordance with the SEPA and TQA guidelines. In 2015, MEA has focused its attention on quality, speed, cost-effectiveness, Green and Governance (QSCG). These factors have contributed to the achievement of MEA by means of promoting the concept of performance improvement and innovation creation for the MEA employees. As a result, several projects for the work performance improvement and efficiency improvement have been initiated through the QSCG principle. Society and environment In accordance with the mission of MEA in social and environmental responsibility “To develop the organization to be economically, socially and environmentally sustainable”, MEA has implemented and conducted several related projects and activities including waste management, MEA trees conservation, MEA mangrove forest conservation, Young MEA, strengthening relationship among MEA and communities and stakeholders, Energy Mind Award, Smart Energy Building, feasibility study in the use of electric cars in MEA activities, LED Street Light Project, 1 MW- clean energy-producing rooftop, promotion of improved efficiency of the energy use in the building, installation of ground wires for the drinking water coolers in school, provision of knowledge in electricity safety to the communities and society by means of training in electrical system with the aim of creating alliances and communication network and repairing units of the people to solve the basic problem concerning electrical system. Organization sustainability MEA has developed its organization based on the worldwide recognized guidelines of the Global Reporting Initiative (GRI). MEA’s sustainability plan has been implemented in accordance with ISO 26000 and the GRI Guidelines for the Sustainability Reports. To this end, MEA has raised awareness and promoted involvement of the executives and volunteers in the sustainable development of the organization and society. As a result, MEA won the Excellence Award (G Gold) in the category of the organizations which have complied with the criteria of being a Green Office from the Department of Environmental Quality Promotion, Ministry of Natural Resources and Environment. Moreover, MEA received the Top Award for the organization which promotes energy conservation and renewable energy in the “Thailand Energy Award 2015” and Top Sustainability Award in the “Sustainability Report Award 2015”.