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”. Finance and Financial Status In 2015, MEA had a total income of Baht 199,875.40 million, a total expense of Baht 188, 483.24 million and a net profit of Baht 11,392.16 million, an increase of Baht 139.77 million or 1.24 percent of 2014. The increase in profit had been resulted from the lower cost in the electricity purchase than the income received from electricity sale which had a decline whereas the other income which included the trade income and income from net contract work increased. In 2016, MEA intends to execute the work according to the plans and projects which are consistent with and respond to the policy of the government, Ministry of Interior and relevant regulatory organizations. MEA has a strong determination to become a leading organization in the electricity business at the international level.

(Mr. Grisada Boonrach) Chairman of MEA Board of Directors

Annual Report 2015 5 Report of the Audit Committee for Fiscal Year 2015 The Audit Committee, appointed by the Metropolitan Electricity Authority’s (MEA) Board of Direct- ors, consisted of three independent directors who are knowledgeable and experienced in accounting, finance, economics, political science, and business administration. The Committee performed its duties as follow: 1. General Teerachai Nakwanich Chairman of the Audit Committee Performed duties from 30th March to 31st December 2015 2. Mr. Somchai Sujjapongse Member of the Audit Committee Performed duties from 30th March to 12th October 2015 3. Mrs. Dayana Bunnag Member of the Audit Committee Performed duties from 30th March to 31st December 2015 The director of the Internal Audit Department was the secretary of the Committee. The Committee performed its duties and responsibilities with thorough knowledge, ability, due professional care, and independence for the stakeholders’ benefits in accordance with the Charter of the Audit Committee which was approved by the MEA’s Board of Directors. In 2015, the Committee held in total four meetings with the MEA’s top management. Furthermore, the Committee reported their operations to the Board of Directors on a quarterly basis, as summarized below: 1. Policy and Performance: The Committee held various meetings with the Office of the Auditor General of Thailand’s staff, and the top management on operation, distribution system service, social and sustainability, corporate,technology and material management, and information and communication technology resulting in significant recommendations on various issues as follow: 1.1 The review with the Office of the Auditor General of Thailand’s staff: recommendations were given on: bank current accounts which could not be reconciled with the payers, Better Care Service, retirement benefit, and accrued interest on customers’ guarantee deposits. 1.2 The reviews with the Deputy Governors: suggestions were given on the important issues as follow; 1) For the Operation Functional Line on the operation of the Replacement of Overhead Lines with Underground System Project and the procurement of sub-station’s land. 2) For the Distribution System Service Functional Line on the removal of electricity poles and communication lines in the areas that the Underground System has been implemented, control measures, and inspection of the unauthorized usage of electricity by illegal means. 3) For the Social and Sustainability Functional Line on CSR management. 4) For the Corporate Functional Line on the policy of succession plan, individual capacity building, rotation, management of personnel cost and welfare, and revision of the Metropolitan Electricity Authority (MEA) Act, B.E. 2501. 5) For the Technology and Material Management Functional Line on the safeguarding of public lighting and the testing and issuing of certificates for the training on wiring inside building course. 6) For the Information and Communication Technology Functional Line on the information service of the Geographic Information System (GIS), Communication System, Intrusion Alarm for Substation, and the Data Center. 6 Metropolitan Electricity Authority 2. Financial Statement Review: The Committee, together with the Management, the Office of the Auditor General of Thailand, and the Internal Audit Department reviewed the 2014 and the 1st and 2nd quarters of 2015 of MEA’s financial statements, the performance and financial position analysis and management of outstanding electrical bill receivable of government agencies and state enterprises to assure that the financial statements were accurate, complied with laws, regulations, and Thai financial reporting standards with adequate information disclosure in the financial statements for the benefits of stakeholders. 3. Good Corporate Governance Review: The Committee reviewed MEA’s operations to ensure consistent development of the good governance system. Close monitoring was also made on actions taken due to complaints or suggestions on the 1st quarter of 2015. The Committee also reviewed cases that MEA was sued for damages. 4. Risk Management Review: The Committee reviewed operation results in accordance with the 2015 enterprise risk management plan in order to assure that the risk management plan and process complied with international risk management standards, covered significant risk factors, and efficiently controlled or reduced risk impact towards objective achievements to an acceptable level. Reviews were also consistently made on the efficiency and appropriateness of risk management processes with recommendations given for further improvement. 5. Effectiveness of MEA’s Internal Control System Review: The internal control system was reviewed to ensure that the internal control system and self-assessment control of departments, assessment of management’s team, as well as the Internal Audit Department were adequate, effective, and complied with the internal control standards. 6. Internal Audit and Governance Development: The Committee reviewed the structure of the Internal Audit Department to encourage it to be independent and to perform its duties objectively. The Committee reviewed and approved the Charter of the Internal Audit Committee and Internal Audit handbook as the guidance for the Internal Audit Department’s operations, the 2015 audit report and the results of the follow up on significant issues recommended by the Internal Audit Department to enhance good governance and instill adequate internal control. The Committee also reviewed the implementations of strategic plan to improve the performance of internal audit, reviewed the engagement of adviser to develop and improve the internal audit operation including the Distribution Cooling System and Power Plant Co., Ltd. internal auditor team’s declaration of conflict of interest. 7. Maintaining the Quality of the Audit Committee: The Committee strictly followed its charter. The Committee’s charter was reviewed to be in line with the Ministry of Finance’s criteria. In summary, the Committee has the opinion that the MEA’s 2015 financial reports were accurate, reliable, properly disclosed, and complied with Thai financial reporting standards. Its operation was adequate, appropriate, and effective, in line with good corporate governance, risk management, internal control, and internal audit systems.

General (Teerachai Nakwanich) Chairman of the Audit Committee

Annual Report 2015 7 Report of the Sub-committee on Risk Management Plan Assessment The MEA Board of Directors realizes the importance of Enterprise Risk Management which helps manage the uncertainty affecting an organization’s objectives so as to reduce losses and increase value creation to the organization and stakeholders. Furthermore, Business Continuity Management is also emphasized to ensure the continuity of electric power supply and services to customers as well as to prepare for disasters and emergencies. The MEA Board of Directors appointed the Sub-committee on Risk Management Plan Assessment to provide assistance to the Board of Directors in respect of policies-making, frameworks and practices that were related to the efficient enterprise risk management in compliance with the best practices. Moreover, the sub-committee also scrutinized the corporate key risks as well as formulated risk management plans, standards and a procedure for setting business continuity plans in order to achieve the organization’s objectives together with conforming to rules, regulations and relevant laws. The Sub-committee on Risk Management Plan Assessment consists of 6 members who have knowledge, skills and experience in related fields as follows: 1. Mr. Wittaya Chaisuwan Chairman of Sub-committee 2. Police Lieutenant General Thangai Prasjaksattru Sub-committee 3. Mr. Krisda Boonrach Sub-committee 4. Assistant Professor Pissanu Stitsart Sub-committee 5. Mr. Chaiyong Puapongsakorn Sub-committee Deputy Governor (Information and Communication Technology) 6. Mrs. Rawadee Sutthinoon Sub-committee and secretary Deputy Governor (Social and Sustainability) The Sub-committee’s key performances for 2015 are as follows: 1. Reviewed Risk Management Policy and Business Continuity Management Policy in line with international standards and changing situation so as to be a guideline in managing risk and business continuity. 2. Approved risk management plans and quarterly tracked progressions to be responsive to the acceptable level of risks. 3. Monitored the performance of risk management plans and business continuity management system, while reported to the MEA Board of Directors and gave necessary advice; for instance, reduction of substation’s size to enhance land acquisition effectiveness, as well as integration of Asset Management System and Preventive Maintenance System to manage assets in a more efficient manner. 4. Gave advice to improve risk management and business continuity management practices in a more effective and efficient manner.

(Mr. Wittaya Chaisuwan) Chairman of the Sub-Committee on Risk Management Plan Assessment

8 Metropolitan Electricity Authority Report of the Sub-committee Report of the Good Corporate on Risk Management Plan Assessment Governance Sub-Committee The MEA Board of Directors realizes the importance of running business with transparency, efficiency and responsibility to stakeholders; therefore, the Good Corporate Governance practices in accordance with the principles and guidelines on Good Corporate Governance of state owned enterprise 2009 as well as the Statement of Direction (SOD) set by the State Enterprise Policy Office (SEPO) have been adopted. Moreover, MEA has continually committed itself to develop the operation in compliance with the international good corporate governance practices, the ASEAN Corporate Governance Scorecard in order to be the leading electric power supply organization in the ASEAN. Therefore, the MEA Board of Directors appointed the Good Corporate Governance Sub-Committee in order to provide assistance to the Board of Directors in respect of policies-making for enhancement and recommendations to adhere to the good corporate governance along with running the business in terms of social and environmental responsibilities. The Good Corporate Governance Sub-Committee consists of 5 members who have integrity and reliability; being independent and unprejudiced; together with having knowledge, skills and experience in related fields as follows: 1. Miss Sopawadee Lertmanaschai Chairman of Subcommittee 2. Mr. Wittaya Chaisuwan Sub-committee 3. Asst. Prof. Pissanu Stitsart Sub-committee 4. Mr. Somchai Roadrungwasinkul Sub-committee Governor 5. Mrs. Rawadee Sutthinoon Sub-committee and secretary Deputy Governor (Social and Sustainability) The Sub-committee’s key performances for 2015 are as follows: 1. Reviewed the policies as well as provided guidelines and advice on good corporate governance to ensure compliance with international standards and changing situations. 2. Approved good corporate governance plans as well as social and environmental responsibility plans, while quarterly tracked progressions and reported the performances to the MEA Board of Directors. 3. Monitored to ensure that the MEA Board of Directors conducted self-assessment of their performances and used these results for the improvement. 4. Provided guidelines and advice to improve good corporate governance in a more effective and efficient manner; for instance, applying ESG (Environmental, Social and Governance) concepts as well as adopting Technical Audit in procurement system according to the Super Board’s guidelines. Moreover, MEA proudly received the 4th NACC Integrity Awards from the Office of the National Anti-Corruption Commission and acquired the high level of Integrity Transparency Assessment (ITA) for the year 2014 which is an honor of morality, ethics, integrity and transparency in running business. Furthermore, in the year 2015, MEA won the Gold level of Green Office award, the Thailand Energy Awards and the Sustainability Report Award respectively.

(Miss Sopawadee Lertmanaschai) Chairman of Good Corporate Governance Sub-committee

Annual Report 2015 9 Background

The Metropolitan Electricity Authority (MEA), as a state-owned enterprise or SOE categorized in public facility type in the service sector of energy and affiliated to the Ministry of Interior, was established on August 1st, 1958 by the Metropolitan Authority Act B.E. 2501 (1958). The purposes of establishing the MEA were (1) to generate electric power, (2) to supply the electric power and (3) to operate electricity businesses as well as other electricity-related services or businesses that benefit the MEA. Later in 1961, the electricity generating plant was transferred to the Electricity Generating Authority of Thailand (EGAT).

Energy Regulatory Commission (ERC) by As the regulator of the implementation virtue of the Energy Act of B.E. 2550 regulated policy of the state enterprise, the State Enterprise that the operator to the energy business is Policy Office (SEPO) under the Ministry of required to obtain a license from the Energy Finance set up the Statement of Direction or Regulatory Commission, and to follow the SOD for Overall SOEs, Energy sector and for conditions attached to the license. The MEA the MEA to aim at improving the quality of has been licensed to operate two types of electric power distribution system, providing licensed electrical power distribution which are electric power to meet the demands of the the license of the electricity distribution system country, creating business partnership, and license, and the electricity distribution license. developing electricity-related business in order to add value to the assets, and to be responsible to the society and environment.

10 Metropolitan Electricity Authority Statement of Direction (SOD)

Overall SOEs : To be a mechanism which drives economic strategy and society of the nation based on effective operation in accordance with good governance principles.

Energy Sector : To build up the national energy demand stability, to promote and develop the clean alternative energy, to support the energy consumption with worthiness and manage the cost effectiveness. Including, take care of the society and environment.

MEA : To aim at improving the quality of the power distribution system and providing electric power to meet the demands of the country, to create the business partnership, to develop the related businesses for value added of assets and to be responsible to the society and environment.

Principles and SOD’s Initiatives Short-term Plans; 1. Assets utilization / Resources sharing 2. Cost management / Effective expenses control comply with regulations 3. Coordination with Provincial Electricity Authority (PEA) 4. Shaping landscape in the Metropolis Long-term Plans; 1. Expanding investment in related business 2. Providing the assets management plan 3. Developing the Smart Grid and Smart Meter system in service areas 4. Preparing for free trade in the electrical industry 5. Emphasizing customers while developing the customer centric organization

Source : State Enterprise Policy Office, the Ministry of Finance

Annual Report 2015 11 Vision, Mission, Values and Strategy

Vision Strategic Theme Moving towards a high-performance 1. Distribution System Leader in ASEAN organization and becoming a leader Strategic Objectives; in the power distribution business 1.1 Quality of electric power distribution with excellent services, while system is a leader in ASEAN enhancing the strength of related 2. Modernized Service business and being responsible for Strategic Objectives; society and environment. 2.1 To efficient the retail business for future retail competition 2.2 To have excellent service system Mission 2.3 To have innovation service 1. To conduct business with quality, 3. Value Growth reliable and safe power distribution Strategic Objectives; system. 3.1 To create a business growth 2. To serve with proactive service in 3.2 To be an operational excellence customer oriented. 3.3 To manage the capital expenditure 3. To develop and increase the for sustainability competitive competencies. 4. Human Resource Management 4. To develop an organizational Strategic Objectives; management for sustainability 4.1 To develop human resource and responsibility for society and management timely for changes. environment. 5. CSR / Social Trust Strategic Objectives; 5.1 To enhance social and environmental Values responsibilities To be fully responsible for society and environment. To develop excellent customer oriented service. To provide qualified, reliable and safe power distribution system.

Note: The MEA Strategic Plan 2012 - 2016 (The Fourth Revision)

12 การไฟฟ้านครหลวงMetropolitan Electricity Authority Solar Cell Types of Business Core business includes the supplying of electric power to the distribution areas for three provinces; Bangkok Metropolis, Nontha Buri, and Samut Prakarn with the coverage service area of 3,192 square kilometers. This is the main stated MEA’s mission and objective in establishing the MEA which represents 99.94 percent of the MEA’s total revenues. Related business includes Better Care Services and Power Quality to best serve particular customers of the service and power quality through design, procurement, complete implementation for delivery to customers, as well as, providing of electric power distribution systems and related businesses to customers overseas. The proportion of revenues from related businesses (including the value added of the existing assets, such as; Geographic Information Services, Network Provider and Data Security Center), representing 0.06 percent of total revenues.

ENERGY MANAGEMENT

14 Metropolitan Electricity Authority Financial Highlights

Increase (Decrease) Descriptions 2015 2014 2013 Amount % Information: Energy Sales (excluding public lighting) GWh 49,343.78 47,856.42 47,617.89 1,487.36 3.11 Energy Consumption (including public and the MEA’s offices lighting) GWh 49,782.51 48,266.23 47,984.12 1,516.28 3.14 Maximum power demand for the 30-minute average MW 8,755.98 8,668.98 8,589.96 87 1.00 Energy Loss Percent 3.49 3.51 3.31 (0.02) (0.57) Number of Customers at year end Customers 3,522,038 3,395,367 3,295,382 126,671 3.73 Number of Employees at year end Persons 8,405 8,338 8,093 67 0.80 Customer to Employee Ratio Times 419 407 407 12 2.95 Financial Position: Fixed Assets Million Baht 105,567.46 100,374.35 93,474.94 5,193.11 5.17 Total Assets Million Baht 189,679.56 177,540.86 165,126.57 12,138.70 6.84 Long-Term Liabilities Million Baht 33,970.52 30,316.12 27,768.00 3,654.40 12.05 Total Liabilities Million Baht 106,351.47 99,066.40 92,228.00 7,285.07 7.35 Equity Million Baht 83,328.09 78,474.46 72,898.57 4,853.63 6.18 Performance: Sales of Electricity Energy Million Baht 194,698.62 195,509.16 187,213.15 (810.54) (0.41) Total Revenues Million Baht 199,875.40 200,677.73 192,152.36 (802.33) (0.40) Total Expenses Million Baht 188,483.24 189,425.34 180,921.10 (942.10) (0.50) Operating Income Million Baht 11,326.52 11,177.43 11,158.39 149.09 1.33 Profit for the Year Million Baht 11,392.16 11,252.39 11,231.26 139.77 1.24 Financial Ratio: Operating Incomes Margin Percent 5.54 5.36 5.61 0.18 3.36 Return on Equity Ratio Percent 14.08 14.87 15.95 (0.79) (5.31) Return on Assets Ratio Percent 6.20 6.57 7.17 (0.37) (5.63) Debt/Equity Ratio Times 0.41 0.39 0.40 0.02 5.13 Debt Service Coverage Ratio Times 3.08 3.27 3.04 (0.19) (5.81) Current Ratio Times 1.27 1.21 1.23 0.06 4.96 Collection Period Days 32 30 31 2 6.67

Annual Report 2015 15 Energy Consumption Number of Customers (Including public and the MEA’s offices lightings)

GWh Customers 52,000 3,600,000 3,522,038 49,783 50,000 3,395,367 47,984 48,266 3,400,000 48,000 3,295,382 46,000 3,200,000 44,000 Year Year 42,000 3,000,000 2013 2014 2015 2013 2014 2015

Number of Employees Customer to Employee Ratio

Persons Time 8,700 440 8,405 419 8,500 8,338 420 407 407 8,300 8,093 400 8,100 7,900 380 Year Year 7,700 360 2013 2014 2015 2013 2014 2015

Total Assets Profit for the Year

Million Baht Million Baht 200,000 11,500 189,680 11,392 190,000 11,400 180,000 177,541 11,300 11,252 170,000 165,127 11,231 160,000 11,200 Year Year 150,000 11,100 2013 2014 2015 2013 2014 2015

16 Metropolitan Electricity Authority Main Factors Affecting MEA In 2015, MEA revised and prepared its the AEC, it is necessary to increase the competitiveness strategic plan (2012 - 2016) (Fourth revision) taking for the proactive business operation by increasing into account the factors which would have major the income from the related business and creation effects on the future operation of MEA and of value from the resource as well as a new necessitates a revision of the strategic plan. Among business. such factors is the government policy concerning 2. In operation The factors in this area the preparation to participate in the ASEAN include: the increasing demand and higher Economic Community (AEC) comprising the expectation level of the customers in terms of development of the electricity distribution system efficiency and cost-effectiveness of the service, to cope with the economic expansion together management of the project on replacement of with the improvement of the townscape of Bangkok overhead lines with the underground cables in metropolitan to deserve the name of an ASEAN supporting the status of Bangkok as an ASEAN metropolitan and a world-class tourism City. Another metropolitan and in responding to the government factor is the Statement of Direction (SOD) for the policy, readiness to cope with critical situation, state enterprises for the short-term and long- term maintaining the continuity of business and the plans which emphasizes the share of resources, integrated communication, promotion of smart the assets management for ultimate benefit, an grid to be in line with the national plan and expansion of investment to other related business, supporting the vision of the organization and the development of smart power system and the innovation development and the development of preparation for the free trade in electrical industry. information and communication technology Moreover, according to the second Energy system to meet the need and behavior of the Regulatory Strategic Plan (2013-2017) of the stakeholders. It is the intention of MEA to develop Energy Regulatory Commission, an important its power distribution system to be efficient, strategy in promoting the efficiency of energy sufficient, secured and reliable. operation and fair competition is through the use 3. In wide social responsibility The factor of power grid which will have an effect on the in this area is the response to the expectation in business pattern of MEA in the long run. organization management and contribution to the Regarding the factor concerning challenges community, society and environment will enable and the main strategic advantages in terms of MEA to address the challenges effectively. business, operation, wide social responsibility and 4. In human resources The factor in this human resources, the following factors have area includes the development of human resources strategic challenges which may give an impact to management as a system which is current with the future operation of MEA : the changes and supportive to the formation of 1. In business In the free trade to be AEC coupled with the experiences and the operated for electrical industry, there will be a expertise in electricity distribution system for the retail competition and new comers in power metropolitan. This factor is a significant strategic distribution business as well as new electricity advantage for MEA. production technology such as DG, renewable technology, etc. which will provide customers with more choices. Moreover, in participating in

Annual Report 2015 17 Economic Outlook and Trend of Energy Situation

World Economy The International Monetary Fund (IMF) summarized the world economy situation in 2015 that the growth rate was 3.1 percent, a slight decrease from the prior year. It was expected to expand gradually in 2016 and 2017 with a rate of 3.4 percent and 3.6 percent respectively in line with the economic recovery of the US and Euro zone countries (Germany, France, Italy and Spain) including economic growth of emerging market and developing economies such as Mexico, India and 5 ASEAN countries comprising Indonesia, Malaysia, Philippines, Thailand and Vietnam. The continued falling oil prices in the world market, the relaxation of the Euro zone monetary policy including the formation of ASEAN Economic Community (AEC) in 2015 has resulted in the creation of large economic market. For Japan, its economy expanded slightly which was caused by an increase in the value-added tax in the country. World Economic Growth Rate / 1/ Unit : Percentage GDP 2014 2015 2016 E/ 2017 E/ Global 3.4 3.1 3.4 3.6 US 2.4 2.5 2.6 2.6 EURO ZONE 0.9 1.5 1.7 1.7 Japan 0.0 0.6 1.0 0.3 Developing countries in Asia - China 7.3 6.9 6.3 6.0 - India 7.3 7.3 7.5 7.5 ASEAN-5 2/ 4.6 4.7 4.8 5.1 1/ The World Economic Outlook from IMF, January 2016 2/ Five countries in ASEAN comprise Indonesia, Malaysia, Philippines, Thailand and Vietnam E/ Estimate However, IMF reports its assessment of the world economic situation in 2016 that the growth rate tends to decline, lower than the estimation due to a slowdown in the world trade, the falling prices of raw materials for production, an increase in FED rates which may cause an impact on monetary sector and puts pressure on global economic system to a large extent. In addition, the Chinese economic slowdown caused by the new economic reform which emphasizes the expenses of local consumption and services instead of promoting investment and manufacturing for export may have an impact on lower expansion of global economy as well.

18 Metropolitan Electricity Authority Thai Economy Thailand economic situation in 2015 was strong at a satisfactory rate with an increase of 2.8 percent of a growth rate, higher than 0.8 percent in the previous year. The government’s financial position was also in a good rate. The current account rate per GDP was a surplus of 8.9 percent, public debt per GDP was 44.4 percent which was under 60 percent of the Fiscal Sustainability Model while the retail price of oil continued to decline resulting in the low rate of inflation at -0.9 percent. In addition, the peaceful political situation in the country has contributed to the government’s stability and investors’ confidence. For Thailand economic outlook in 2016, the National Economic and Social Development Board estimates that the economic growth rate will continue to grow gradually at 2.8 – 3.8 percent due to the concern about risk factors of a decline in export caused by a slow recovery of global economy including Chinese economic slowdown and a more slow recovery of important agricultural prices than estimated which is caused by the drought crisis. Therefore, in driving the economy in 2016, the government still gives importance mainly to the economy in the country which consists of the acceleration of large-scaled infrastructure investment projects under the action plan on transport (urgent phase) 2016, water management plan (urgent phase), road transportation system development plan, implementation of economic stimulation measures which have been already approved in orderto take care of the income base of agriculturists and low income people, domestic investment and consumption promotion, establishment of the base of border trading with CLMV countries (Cambodia, LAO PDR, Myanmar and Vietnam) and domestic tourism promotion. An estimation of Thai economy in 2016 Unit : Percentage Item 2014 2015 2016 E/ Economic growth rate (GDP) 0.8 2.8 2.8 - 3.8 Total investment (Public and private -2.4 4.7 4.9 sector) Trade Balance (Billion US Dollar) 24.6 34.6 34.8 Export value - 0.3 - 5.6 1.2 Current account balance to GDP 3.8 8.9 8.2 Inflation rate (CPI) 1.9 - 0.9 (- 0.1) - 0.9

Reference : Office of the National Economic and Social Development Board (NESDB) Bank of Thailand E/Estimate By NEDB At 15 February 2016

Annual Report 2015 19 Trend of Energy Situation

In 2015, the overall energy consumption percent of renewable energy use in the same in the country rose by 2.7 percent from the year which may affect the electricity sales and prior year amounting to over Baht 998,428 electricity revenue which may decline in the million in total with an increase of the oil use future. Moreover, the government has prepared of 4.3 percent due to the continued declining the plan to drive energy mission by promoting retail prices of oil. The electricity use totaled the use of electric vehicles (EV) in the country 183,288.53 million units or an increase of 3.5 with the timeframe of 3 phases : percent. It is estimated that the oil use in 2016 Phase 1 Preparation of electric vehicles compared with the year 2015 will remain stable for use 2016-2017 at 3.0 percent in line with the estimated lower Phase 2 Expansion to public transport rate of oil price. Electricity consumption is and preparation for personal electric car expected to rise by 3.5 percent in accordance 2018 - 2020 with the Power Development Plan (PDP) and Phase 3 Promoting the use of personal in the same direction of the continued electric car from 2021 onwards adjusted upward of Thai GDP. The meeting of the National Energy For MEA’s electricity sales of Districts Policy Council on March 11, 2016 agreed to Offices in 2015, electricity use totaled 49,343.76 implement Phase 1 under the plan of promoting million units or an increase of 3.11 percent of the use of electric vehicles with an aim of the previous year.The maximum demand in launching the use of electric public buses of 2015 was 8,756 megawatts, or an increase of the Bangkok Mass Transit Authority, preparing 1.00 percent of the prior year. The trend of for involved public utility, setting up the electricity demand in MEA’s Districts (Estimation temporary rate of service for electric vehicles from the prediction of electricity demand in the beginning, preparing the relevant measures classified by categories of customers in January and regulations to support the development 2016) during the years 2016 - 2020 is likely to of EV charging stations including the study and grow averagely 3.21 percent with a decline in preparing a plan for infrastructure - electricity expansion in accordance with a slow recovery development to the support electric vehicles. in economy. In addition, the government has This will provide an opportunity for MEA to the policy to promote energy conservation and search for other related business to operate in the use of renewable energy in order to terms of an advantage of operating areas and strengthen energy security in the country under lawful mission. At present, MEA has installed Energy Efficiency Plan : EEP 2015) and the EV charging stations for electric cars at MEA Alternative Energy Development Plan: AEDP Districts Offices. 2015) with a timeframe of implementation during 2015 - 2036. Its objectives is to reduce the concentration of energy use by 30 percent in 2036 and to increase the proportion of 30

20 Metropolitan Electricity Authority Board of Directors As at December 31, 2015

General Piroon Palponsong Chairman (Independent Director)

Air Chief Marshal General Teerachai Nakwanich Mrs. Dayana Bunnag Miss Sopawadee Lertmanaschai Anon Jarayapant Independent Director Independent Director Independent Director Independent Director

Mr. Ronnachit Rattanaramik Professor Boonserm Kijsirikul Assistant Professor Police Lieutenant General Independent Director Independent Director Sanan Visuthisakchai Thangai Prasjaksattru Independent Director Independent Director

Mr. Wittaya Chaisuwan Mr. Grisada Boonrach Associate Professor Assistant Professor Independent Director Independent Director Peerawut Suwanjun Pissanu Stitsart Independent Director Independent Director

Mr. Somchai Roadrungwasinkul Independent Director

Remark : Chairman of the Board of Directors Retired on 10 October 2015 as being 65 years of age.

Annual Report 2015 21 Board of Directors Age 65 Years Education • Armed Forces Academies Preporatory School Class 10 • Chulachomklao Royal Military Academy Class 21 • Command and General Staff College Class 63 Experiences • Commander of 5th Cavalry Regiment Royal Guard • Army Attache and Defence Attache at Vientiane • Staff Officer to the Minister of Defence • Deputy Commanding General of Armed Forces General Piroon Palponsong Security Center, Royal Thai Armed Forces Chairman (Independent Director) Headquarters • Chief of Staff, Royal Thai Army • Deputy Commander in Chief, Royal Thai Army Present Position • Member of the National Legislative Assembly Share Holding Proportion (Percent) • None Family Relation with Management • None Connected Transaction with State Enterprises • None Remark • Appointed as chairman of the MEA Board of Directors on 17 March 2015 by the Cabinet resolution • Retired on 10 October 2015 as being 65 years of age an accordance with article 5 (2) of the Standard Qualifications of State Enterprise Directors and Employees Act B.E. 2518 (1975)

22 Metropolitan Electricity Authority Air Chief Marshal Anon Jarayapant General Teerachai Nakwanich Independent Director Independent Director Age 60 Years Age 60 Years Education Education • Armed Forces Academies Preparatory School Class 15 • Armed Forces Academies Preporatory School Class 14 • Royal Thai Air Force Academy Class 22 • Chulachomklao Royal Military Academy Class 25 • Flying Training School, RTAF Class 65-22-1 • Command and General Staff College Class 65 • Air Command and Staff College, RTAF Class 35 Experiences • Air War College Class 38 • Deputy Commanding General of the 1st Army Area Experiences • Assistant Chief of Staff for Logistics, Royal Thai Army • Chief of Staff, Directorate of Air Operations Control • Deputy Chief of Staff, Royal Thai Army • Commander, Don Muang Air Police Office • Commanding General of the 1st Army Area • Deputy Chief of the Air Staff Royal Thai Air Force • Assistant Commander in Chief, Royal Thai Army Headquarters Present Position • Chief of Executive Staff Committee to the Commanders • Commander in Chief, Royal Thai Army Royal Thai Air Force • Deputy Commander-in-Chief Royal Thai Air Force Share Holding Proportion (Percent) Headquarters • None Present Position Family Relation with Management • Retired • None Share Holding Proportion (Percent) Connected Transaction with State Enterprises • None • None Family Relation with Management Remark • None • Appointed as member of the Board of Directors by the resolution of the Cabinet from 17 March 2015 to Connected Transaction with State Enterprises present • None Remark • Appointed as member of the Board of Directors by the resolution of the Cabinet from 17 March 2015 to present

Annual Report 2015 23 Mrs. Dayana Bunnag Miss Sopawadee Lertmanaschai Independent Director Independent Director Age 63 Years Age 62 Years Education Education • Bachelor of Science (Economics), (HONS.), Chulalongkorn • Bachelor of Science (Accounting), Thammasat University University • Bachelor of Law, Thammasat University • Master of Arts in Economics, University of Texus • Master of Science (Accounting), Thammasat University (Austin), USA Experiences Experiences • Secretary General, Government Pension Fund • Deputy Managing Director-Micronetics Company • Director, IRPC Public Company Limited Limited • Chairman, Royal Porcelain Public Company Limited • Managing Director-Kasikorn Asset Management • Director, Dhipaya Insurance Public Company Limited Company Limited • Director Sub Performance Assessment Committee, • Managing Director-Ocean Life Insurance Company State Enterprise Policy Officer Limited Present Position • Board Member, Capital Market Supervisory • Commissioner and Member, The Securities and Exchange Board-Securities and Exchange Commission Commission Present Position • Commissioner and Member of Accounting, National • Chair Person-Conduct of Personnels in the Capital Savings Fund Market Committee, the Securities and Exchange Share Holding Proportion (Percent) Commission • None • Director and Chair person of Audit Committee- Kiatnakin Bank PLC Family Relation with Management • None Share Holding Proportion (Percent) • None Connected Transaction with State Enterprises • None Family Relation with Management Remark • None • Appointed as member of the Board of Directors by Connected Transaction with State Enterprises the resolution of the Cabinet from 17 March 2015 to • None present Remark • Appointed as member of the Board of Directors by the resolution of the Cabinet from 17 March 2015 to present

24 Metropolitan Electricity Authority Mr. Ronnachit Rattanaramik Professor Boonserm Kijsirikul Independent Director Independent Director Age 64 Years Age 51 Years Education Education • Bachelor of Engineering (Electric Power), Khon Kaen • Bachelor of Engineering (Electric and Electrical), University Tokyo Institute of Technology, Japan Experiences • Master of Engineering (Computer), Tokyo Institute • Assistant Governor (Distribution System Service), of Technology, Japan Metropolitan Electricity Authority • Doctor of Engineering (Computer), Tokyo Institute • Deputy Governor (Distribution System Service), of Technology, Japan Metropolitan Electricity Authority Experiences Present Position • Professor, Department of Computer Engineering, - Faculty of Engineering, Chulalongkorn University • Faculty Board, Faculty of Engineering, Chulalongkorn Share Holding Proportion (Percent) University • Nonew • Department Board, Department of Computer Family Relation with Management Engineering, Faculty of Engineering, Chulalongkorn • None University Connected Transaction with State Enterprises • Project Consultant, Project Installation of the Center • None for the Intergrated Monitor and Situation Management Remark System Chiang Mai Municipality • Appointed as member of the Board of Directors by Present Position the resolution of the Cabinet from 17 March 2015 to • Professor present Share Holding Proportion (Percent) • None Family Relation with Management • None Connected Transaction with State Enterprises • None Remark • Appointed as member of the Board of Directors by the resolution of the Cabinet from 17 March 2015 to present

Annual Report 2015 25 Assistant Professor Police Lieutenant General Thangai Sanan Visuthisakchai Prasjaksattru Independent Director Independent Director Age 56 Years Age 63 Years Education Education • Doctor of Medicine (Second-Class Honors), Faculty • Armed Forces Academies Preporatory School Class 11 of Medicine Siriraj Hospital, Mahidol University • Bechelor of Police Science, Royal Police Academy • Higher Graduate Diploma Program in Clinical Science Class 27 in Medicine, Faculty of Medicine Siriraj Hospital, • Master of Development Science, National Institute Mahidol University of Development Administration • Diploma of The Thai Board of Internal Medicine, Experiences the Royal College of Physicians of Thailand • Deputy Comissioner of Provincial Police Region 8 • Diploma of The Thai Board of Hematology, the (Suratthani Province) Royal College of Physicians of Thailand • Deputy Comissioner of Provincial Police Region 6 Experiences (Phitsanulok Province) • Administrative Committee of University Hospital • Comissioner of Central Investigation Bureau Network Consortium of Thai Medical Schools • Comissioner of Provincial Police Region 2 • Permanent Representative of Consortium of (Chonburi Province) Thai Medical Schools in Financial Administration Present Position Sub-Committee of National Health Security Office • Retired (NHSO) Share Holding Proportion (Percent) • Deputy Dean of Facilities and Environment • None Management, Faculty of Medicine Siriraj Hospital, Family Relation with Management Mahidol University Present Position • None • Deputy Director, Faculty of Medicine Siriraj Hospital, Connected Transaction with State Enterprises Mahidol University • None Share Holding Proportion (Percent) Remark • None • Appointed as member of the Board of Directors by Family Relation with Management the resolution of the Cabinet from 17 March 2015 to • None present Connected Transaction with State Enterprises • None Remark • Appointed as member of the Board of Directors by the resolution of the Cabinet from 17 March 2015 to present 26 Metropolitan Electricity Authority Mr. Wittaya Chaisuwan Mr. Grisada Boonrach Independent Director Independent Director Age 62 Years Age 58 Years Education Education • Bachelor of Science (Agronomy), Kasetsart University • Bachelor of Arts (Political Science), Ramkhamhaeng • Master of Arts (Social Development), National Institute University of Development Administration • Bachelor of Laws, Chiang Mai University Experiences • Master of Political Science (Public Administration), • Inspector-General Ministry of Agricultural and Thammasat University Cooperative Experiences Present Position • Department of Province Administration Inspector • Member of the National Legislative Assembly (In Southern Boarder Provinces Area) • Vice Governor of Yala Province Share Holding Proportion (Percent) • Governor of Yala Province • None • Governor of Songkhla Province Family Relation with Management • Director General of Department of Provincial • None Administration, Ministry of Interior Connected Transaction with State Enterprises Present Position • None • Permanent Secretary Ministry of Interior Remark Share Holding Prop ortion (Percent) • Appointed as member of the Board of Directors by • None the resolution of the Cabinet from 17 March 2015 to Family Relation with Management present • None Connected Transaction with State Enterprises • None Remark • Appointed as member of the Board of Directors by the resolution of the Cabinet from 17 March 2015 to present

Annual Report 2015 27 Associate Professor Peerawut Suwanjun Assistant Professor Pissanu Stitsart Independent Director Independent Director Age 45 Years Age 63 Years Education Education • Bachelor of Science in Industrial Education • Master of Engineering in Electric Engineering, (Telecommunication Engineering) (Hons.), Chulalongkorn University King Mongkut’s Institute of Technology Ladkrabang Experiences • Master of Engineering (Electrical Engineering), • Director of Computer Centre, Faculty of Science, King Mongkut’s Institute of Technology Ladkrabang Chulalongkorn University • Doctor of Engineering (Electrical Engineering), • Deputy Dean (Information Technology Affairs), King Mongkut’s Institute of Technology Ladkrabang Faculty of Science, Chulalongkorn University Experiences • Assistant Professor, Department of Physics, Faculty • Assistant Professor, Faculty of Industrial Education of Science, Chulalongkorn University King Mongkut’s Institute of Technology Ladkrabang • Sub-Committee on Information and Communication • Assistant Dean, Faculty of Industrial Education King Technology, Office of the Judiciary Mongkut’s Institute of Technology Ladkrabang Present Position • Associate Dean, Faculty of Industrial Education King • Retired Mongkut’s Institute of Technology Ladkrabang Share Holding Proportion (Percent) • Dean, Faculty of Industrial Education King Mongkut’s • None Institute of Technology Ladkrabang Present Position Family Relation with Management • Associate Professor, Faculty of Industrial Education • None King Mongkut’s Institute of Technology Ladkrabang Connected Transaction with State Enterprises Share Holding Proportion (Percent) • None Remark • None • Appointed as member of the Board of Directors by Family Relation with Management the resolution of the Cabinet from 17 March 2015 to • None present Connected Transaction with State Enterprises • None Remark • Appointed as member of the Board of Directors by the resolution of the Cabinet from 17 March 2015 to present

28 Metropolitan Electricity Authority Mr. Somchai Roadrungwasinkul Director Age 59 Years Education Experiences • Bachelor of Engineering (Electrical), Chulalongkorn • Director of Designs and Supervision Department University • Assistant Governor (Distribution System Service) • Master of Engineering (Electric Power), Rensselaer • Deputy Governor (Corporate) Polytechnic Institute, Troy, USA • Member of Technical Committee in Setting of Thai • Certificate, Conventional Energy Training, Project, Industrial Standard for Electrical Equipment, Thai The United States for International Development Industrial Standard Institute, the Ministry of Industry and the Institute of International Education, USA • Technical Assessor for Laboratory Accreditation of • Certificate, Modern Marketing Management, ISO/IEC 17025: 1999, Thai Industrial Standard Chulalongkorn University Institute, the Ministry of Industry • Certificate, Thailand and ASEAN Economic Community Present Position (Class 2), King Prajadhipok’s Institute • Governor • Certificate, Director Certification Program (DCP), Share Holding Proportion (Percent) Thai Institute of Directors • Certificate, TLCA Executive Development Program • None (EDP), Thai Listed Companies Association (TLCA) Connected Transaction with State Enterprises • Top Executive Program, Capital Market Academy • None Class 17 Remark • Appointed as MEA Governor by the Board of Directors and being ex-officio member of the Board of Directors from 24 April 2014 to present

Annual Report 2015 29 Board of Directors during the year 2015

Mr. Somchai Sujjapongse Independent Director Age 54 Years Present Position Education • Permanent Secretary • Bachelor of Arts in Economics (Hons.), Chulalongkorn Share Holding Proportion (Percent) University • None • Master of Arts in Economics, the Ohio State University, Family Relation with Management USA • None • Doctor of Philisophy in Economics, the Ohio State Connected Transaction with State Enterprises University, USA • None Experiences Remark • Deputy Director - General, Fiscal Policy Office, • Appointed as member of the MEA Board of Ministry of Finance Directors by the Cabinet resolution from 17 March 2015 • Fiscal Policy Advisor, Fiscal Policy Office, Ministry • Resigned, effective on 12 October 2015 of Finance • Director - General Fiscal Policy Office, Ministry of Finance • Director - General State Enterprise Policy Office • Director - General, the Customs Department

30 Metropolitan Electricity Authority Executives The currently MEA’s executives consists of the Board of directors, Governor (under the executive employment contact), deputy governor and Assistant Governor in totally 23 person. There is 9 functional lines and 57 departments; departments, office & business unit.

Mr. Somchai Roadrungwasinkul Governor Deputy Governor

Mr. Chaiyong Puapongsakorn Mrs. Chulee Supavantanakul Mr. Chaiyan Protprommart Mrs. Marisa Wongtirawit Information and Communication Finance Operation Strategy and Organization Technology Development

Mr. Somsak Witnalakorn Mr. Pongsak Lamoonkit Mr. Wan Mahamekee Mr.Somsak Thriyanurux Mrs. Rawadee Sutthinoon Corporate Business Distribution System Service Technology and Material Social and Sustainability Management Assistance Governor

Mrs. Yostorn Chinrungruang Mr. Siripong Vichai Mr. Sompong Pongsakulrangsri Mr. Saranit Angsusingh Mr. Thanee Parichatintranee

Mr. Kirapat Jiamset Mr. Supakorn Noomhorm Mr. Suraphol Wiboonwipa Mr. Ruj Herabat Mr. Teerawat Thepamnouysuk

Mr. Nipon Chirataweewoot Mr. Weerapan Roongpan Mrs. Tiemjan Srikhom

Annual Report 2015 31 Executives

Mr. Somchai Roadrungwasinkul Mr. Chaiyong Puapongsakorn Governor Deputy Governor Education (Information and Communication • Bachelor of Engineering (Electrical), Chulalongkorn Technology) University Education • Master of Engineering (Electrical Power), Rensselaer • Bachelor of Electrical Power Engineering, Polytechnic Institute, Troy, USA King Mongkut’s Institute of Technology • Certificate, Conventional Energy Training Project, • Master of Computer Science, Chulalongkorn The United States for International Development University and the Institute of International Education, USA • The 11th Advanced Certificate Course in Public • Certificate, Modern Marketing Management, Administration and Law for Executive, Chulalongkorn University King Prajadhipok’s Institute • Certificate, Thailand and ASEAN Economic Community • The 5th Training Course Administrative Justice for (Class 2), King Prajadhipok’s Institute Executives Program, The Administration Justice • Certificate, Director Certification Program (DCP), Development Institute, the Office of the Thai Institute of Directors Administrative Court • Certificate, TLCA Executive Development Program • Senior Executive Program, Sasin Graduate Institute (EDP), Thai Listed Companies Association (TLCA) of Business • Top Executive Program, Capital Market Academy • Marketing Certificate Program, Thammasat University Class 17 • Mini MBA, Thammasat University Experiences • Power Systems Control, Sweden Scorelaship • Director of Designs and Supervision Department Experiences • Assistant Governor (Distribution System Service) • Assistant Director of Geographic Information System • Deputy Governor (Corporate) Department • Member of Technical Committee in Setting of Thai • Director of Geographic Information System Department Industrial Standard for Electrical Equipment, Thai • Assistant Governor (Information and Communication Industrial Standard Institute, the Ministry of Industry Technology) • Technical Assessor for Laboratory Accreditation of ISO/IEC 17025: 1999, Thai Industrial Standard Institute, the Ministry of Industry

32 Metropolitan Electricity Authority Mrs. Chulee Supavantanakul Mr. Chaiyan Protprommart Deputy Governor (Finance) Deputy Governor (Operation) Education Education • Bachelor of Science (Statistics) Faculty of Commerce • Bachelor of Engineering (Electrical Power Engineering), and Accountancy, Chulalongkorn University Chulalongkorn University • Master of Commerce (Business Administration) • Kaset Mini Financial Business Management Course, Faculty of Commerce and Accountancy, Thammasat Kasetsart University University • The Urban Development and Administrator Training • A Scholarship of Training Program “Management of Course for Executive Administrators, Urban Green Electric Power Utilities 2001”, Government of Development Institute, Bangkok Sweden • Thai and ASEAN Economic community, • Certificate, Executive Program in International King Prajadhipok’s Institute Management, N.U.S. Business School, Singapore • Leadership Succession Program (LSP), Institute of • The 3rd Executive Finance Management Program, Research and Development for Public Enterprises Economics and Finance Academy Experiences th • The 10 Executive Development Program 2014, • Assistant Director of Power System Maintenance Fiscal Policy Research Institute Foundation th Department • The 13 Certificate Course in Good Governance for • Director of Power System Maintenance Department Board and Executive, King Prajadhipok’s Institute • Assistant Governor (Operation) • The 4th Certificate Course in Law for Executive, Office of Council of State Experiences • Assistant Director of Policy, Planning and Budgeting Department • Director of Finance Department • Assistant Governor (Finance)

Annual Report 2015 33 Mrs. Marisa Wongtirawit Mr. Somsak Witnalakorn Deputy Governor Deputy Governor (Corporate) (Strategy and Organization Development) Education Education • Bachelor of Engineering (Electrical), Chulalongkorn • Bachelor of Science (Economics) Kasetsart University University • Master of Business Administration, Thammasat • Master of Business Administration, Thammasat University University • Certificate, the 25th Senior Executive Program, • Electric Power Engineering and Management Sasin Graduate Institute of Business Administration, Program, Swed Power Sweden Chulalongkorn University • Senior Executive Program, Sasin Graduate Institute • The 4th Executive Finance Management Program, of Business, Chulalongkorn University Economics and Finance Academy • The 1st Training Course Administrative Law for • The 12thAdvanced Certificate Course in Public Executives Program, The Administration Justice Economics Management for Executives Development Institute, The Office of the King Prajadhipok’s Institute Administrative Court • The 3th Certificate Leadership Succession Program • Certificate, Leadership Succession Program (LSP), (LSP) Institute of Research and Development for Institute of Research and Development for Public Public Enterprises Enterprises of Thailand (IRDP) • Certificate of Completion Director Certification • One on One Executive Coaching programme, Program (DCP) Class 206/2015 :Thai Institute of Orchid Slingshot Directors Experiences Experiences • Director of Purchases and Store Department • Assistant Director of Business Development Department • Assistant Governor (Technology and Material • Director of Power Economics Department Management) • Director of Policy, Planning and Budgeting Department • Assistant Governor (Strategy and Organization Development)

34 Metropolitan Electricity Authority Mr. Pongsak Lamoonkit Mr. Wan Mahamekee Deputy Governor (Business) Deputy Governor Education (Distribution System Service) • Bachelor of Engineering (Electrical), King Mongkut’s Education University of Technology North Bangkok • Faculty of Engineering Industrial Electrical • Certificate, Engineering Manager Program, Sasin Technology, King Mongkut’s University of Technology Graduate Institute of Business, Chulalongkorn North Bangkok University • Senior Governing Officer Training School Batch 59 • Certificate Power System Engineering Course, Prince Damrongrajanuphab Institute Research and GE Electrical Distribution & Control, New York, USA. Development • The 74th Mini MBA ,Thammasat University • Enhancing Leadership Presence Program, CONC • The 12th Advanced Certificate Course in Public Thammasat University Administration and Law for Executive, Experiences King Prajadhipok’s Institute • Assistant Director of Rat Burana District • The Executive Program Management in Urban • Director of Rat Burana District Development, Navamindradhiraj University • Assistant Governor (Distribution System Service) Experiences • Assistant Director of Khlong Toei District • Director of Khlong Toei District • Assistant Governor (Distribution System Service)

Annual Report 2015 35 Mr. Somsak Thriyanurux Mrs. Rawadee Sutthinoon Deputy Governor Deputy Governor (Technology and Material Management) (Social and Sustainability) Education Education • Bachelor of Engineering , King Mongkut’s Institute • Bachelor of Science (Statistics) Faculty of Commerce of Technology Chaokhunthaharn Ladkrabang and Accountancy, Chulalongkorn University Campus • Master of Commerce of Commerce and Accountancy, • Cetificate, Rational Transformation and Distribution Thammasat University of Energy, Germany • Business Process Analysis, Computer Society of • Cetificate, Promotion of Peaceful Society, Japan King Prajadipok’s Institue • Office Automatic System, USA Experiences • The 17th Chief Financial Officer Certificate Program • Inspector General (CFO), Federation of Accounting Professions (FAP) • Director of Power Economics Department • Project Investment and Feasibility Studies • Director of Procurement Department Experiences • Assistant Governor (Social and Sustainability) • Assistant Director of Policy, Planning and Budgeting • Assistant Governor (Technology and Material Department Management) • Inspector General (Finance) • Director of Finance Department • Assistant Governor (Finance)

36 Metropolitan Electricity Authority Mrs. Yostorn Chinrungruang Mr. Siripong Vichai Mr. Sompong Pongsakulrangsee Assistant Governor Assistant Governor Assistant Governor Corporate (Information and (Distribution System Service) Communication Technology)

Mr. Saranit Angsusingh Mr. Thanee Parichatintranee Mr. Kirapat Jiamset Assistant Governor Assistant Governor Assistant Governor (Social and Sustainability) (Business) (Technology and Material Management)

Mr. Supakorn Noomhorm Mr. Suraphol Wiboonwipa Mr. Ruj Herabat Mr. Teerawat Thepamnouysuk Assistant Governor Assistant Governor Assistant Governor Assistant Governor (Operation) (Distribution System Service) (Strategy and Organization (Distribution System Service) Development)

Mr. Nipon Chirataweewoot Mr. Weerapan Roongpan Mrs. Tiemjan Srikhom Assistant Governor Assistant Governor Assistant Governor (Technology and Material (Operation) (Finance) Management) Annual Report 2015 37 Executive (During the year 2015 (Retired on September 30, 2015)

Mr. Pichai Sanguanchaipaiwong Mr. Somsak Srithongwat Mr. Somchai Wiwatwattana Deputy Governor Deputy Governor Deputy Governor (Distribution System Service) (Business) (Social and Sustainability)

Mr. Ratanarojana Thavisin Mr. Kachorndechawut Muangtham Deputy Governor Assistant Governor (Technology and (Distribution System Service) Material Management)

38 Metropolitan Electricity Authority Department Director As at December 31, 2015 Under Supervision of the Governor 16. Mr. Ramin Chuayriang 1. Mrs. Somsri Lapthanapul Director of Bang Plee District Director of General Affairs Department 17. Mr. Sompong Sangkakulmala 2. Mrs. Pinvibha Laisin Director of Prawet District Director of Internal Audit Department 18. Mr. Chanvej Yuvajita 3. Mr. Chan Supavantanakul Director of Min Buri District Inspector General 19. Mr. Thawatchai Mounjai 4. Mr. Kittiwat Keeratichotigool Director of Lat Krabang District Inspector General 20. Mr. Decha Viriyajaroenkit Distribution System Service Director of Bang Kapi District 1. Mr. Somsak Bumroongwad 21. Mr. Chunant Tanhapran Director of District Affairs Department Inspector General 2. Mr. Jaturong Suriyasasin Technology and Material Management Director of Marketing and Customer 1. Mr. Yongyuth Jitpayak Relations Department Director of Research and Development 3. Sgt. Prasonk Kumpradit Department Director of Samsen District 2. Mr. Vasuthep Pramongudomrat 4. Plt.off. Samrerng Chaewchookul Director of Procurement Department Director of Wat Liab District 3. Mr. Werawat Buatong 5. Mrs. Jongkolnee Tantichattanont Director of Inventory Department Director of Bang Khen District 4. Mr. Somchai Homklinkaew 6. Mr. Pipat Chonumpai Director of Power System Planning Department Director of Klong Toei District 5. Mr. Krissada Tansirisernkul 7. Mr. Narong Ingrsivorakul Director of Distribution Equipment Director of Lat Phrao District Department 8. Mr. Wajee Pitakprajyakul 6. Mr. Apiyut Sirikul Director of Yan Nawa District Director of Environmental and Occupational 9. Mr. Somsak Pooun Health and Safety Department Director of Rat Burana District 7. Mr. Wicha Chakornpipat 10. Mr. Wanchai Jongviriyacharoenchai Inspector General Director of Bang Khunthian District Operation 11. Mr. Somboon Somdoonyakanok 1. Mr. Amnart Imoat Director of Thon Buri District Director of Power System Control Department 12. Mr. Pipob Limwiwatkul 2. Mr. Pasang Teparak Director of Bang Yai District Director of Power System Maintenance 13. Mr. Rongpech Khoarieng Department Director of Bang Buathong District 3. Mr. Amnat Venasakulchai 14. Mr. Watcharaphong Khantichoti Director of Asset Management and Security Director of Nonta Buri District Department 15. Mr. Kittipong Weerapoprasit Director of Samut Prakarn District Annual Report 2015 39 4. Mr. Praphan Weingtanchantra Finance Director of Electrical System Designs and 1. Mr. Piti Yensumran Civil Engineering Department Director of Accounting Department 5. Mr. Nipon Pongkachorn 2. Mrs. Suchaya Limphothong Director of Construction Department Director of Finance Department 6. Mr. Tepsak Titaraksa 3. Miss. Suwannee Bunjam Director of Project Management Department Director of Budget Department 7. Mr. Mana Tivakorn 4. Miss. Vanicha Bhanubhak Inspector General Inspector General Strategy and Organization Development Business 1. Mrs. Suppamas Boonpan 1. Mr. Santi Numsinvichietchai Director of Strategic Planning Department Director of Electrical System Service 2. Mrs. Sutida Sindhvananda Department Director of Corporate Development 2. Mr. Sombat Jankrajang Department Director of Better Care and Power Quality 3. Miss. Saraivong Sirivej department Director of Business Development Department 3. Mr. Surat Jantarasiri 4. Miss. Natenara Oonchai Director of Logistics and Product Department Director of Power Economics Department 4. Mr. Sangchai Chakuttraikul 5. Mrs. Siriratana Wongkaew Director of Fleet Management Department Inspector General 5. Mr. Kanit Luetrakul Corporate Inspector General 1. Mrs. Phenchan Thasanakulphant Information and Communication Director of Human Resource Department Tecnology 2. Mr. Pongsak Thamborvon 1. Mr. Pisanu Tantitavorn Director of Training Department Director of Technological Asset Planning and 3. Mr. Apinan Boonsiri Management Department Director of Legal Department 2. Mr. Chingchai Eiamsitthipan 4. Mrs. Suvanee Sangkarat Director of Information Technology Director of Medical Department Development Department 5. Mr. Seree Buranawithaya 3. Mr. Wanchai Chiarawattanavit Inspector General Director of Information Technology Social and Sustainability Infrastructure Department 1. Miss Pongpun Gallprawit 4. Mr. Tanom Panyatranont Director of Corporate Social Responsibility Director of Application System Development Department Department 2. Mr. Chan Pattamawipark 5. Mr. Ditchawat Chanei Director of Corporate Communication Director of Information Technology Standard Department and Security Office 3. Mrs. Saovakon Verakajorn 6. Miss Sunee Lertudommongkol Director of Risk Management Department Inspector General 4. Mr. Kriengsak Wattanarat Inspector General

40 Metropolitan Electricity Authority

Organization Chart Governor General Affairs Internal Audit Department Department

Deputy Governor Director of Affairs (Distribution System Marketing and Customer Department Service) Relations Department

Assistant Governor Assistant Governor Assistant Governor

Metropolitan Electricity Authority Metropolitan Electricity Authority Metropolitan Electricity Authority Samsen District Rat Burana District Samut Prakan District

Metropolitan Electricity Authority Metropolitan Electricity Authority Metropolitan Electricity Authority Wat Liab District Bang Khunthain District Bang Plee District

Metropolitan Electricity Authority Metropolitan Electricity Authority Metropolitan Electricity Authority Bang Khen District Thon Buri District Prawet District

Metropolitan Electricity Authority Metropolitan Electricity Authority Metropolitan Electricity Authority Klong Toei District Bang Yai District Min Buri District

Metropolitan Electricity Authority Metropolitan Electricity Authority Metropolitan Electricity Authority Lat Phrao District Bang Buathong District Lat Krabang District

Metropolitan Electricity Authority Metropolitan Electricity Authority Metropolitan Electricity Authority Yan Nawa District Nonta Buri District Bang Kapi District

Deputy Governor Deputy Governor (Strategy and Organization Deputy Governor (Social and Development) (Corporate) Sustainability)

Assistant Governor Assistant Governor Assistant Governor

Strategic Planning Human Resource Corporate Social Responsibility Department Department Department

Corporate Development Corporate Communication Training Department Department Department

Business Development Risk Management Legal Department Department Department

Power Economics Medical Department Department

42 Metropolitan Electricity Authority As at December 31, 2015

Deputy Governor Deputy Governor (Technology and (Operation) Materail Managemen)

Assistant Governor Assistant Governor Assistant Governor Assistant Governor

Research and Development Power System Planning Power System Control Electrical System Designs and Department Department Department Civil Engineering Department

Procurement Distribution Equipment Power System Maintenance Construction Department Department Department Department

Inventory Department Environmental and Occupational Asset Management and Project Management Health and Safety Department Security Department Department

Deputy Governor Deputy Governor Deputy Governor (Information and (Finance) (Business) Communication Technology)

Assistant Governor Assistant Governor Assistant Governor

Accounting Department Electrical System Technological Asset Planning and Service Department Management Department

Finance Department Better Care and Power Information Technology Quality Department Development Department

Information Technology Budget Department Logistics and Product Department Infrastructure Department

Fleet Management Application System Department Development Department 9-Deputy Governor 13-Assistant Governor Information Technology 57-Departments Standard and Security Office (56-Departments, 1-Office)

Annual Report 2015 43 Workforce Structure As of 31 December 2015, the total number of MEA employees was 9,463 comprising 8,405 regular employees and 1,058 temporary employees. The proportion of customers per employee was 419 customers per employee. The total expense for human resources accounted for Baht 9,355.39 million consisting of Baht 9,165.46 million for regular employees and Baht 189.93 million for temporary employees. Number of employees Position Regular Temporary employees Total employees 1. Governor 126 15 141 2. Deputy Governor (Distribution System Service) 4,157 549 4,706 3. Deputy Governor (Technology and Materail 644 145 789 Management) 4. Deputy Governor (Operation) 1,759 135 1,894 5. Deputy Governor (Strategy and Organization 120 12 132 Development) 6. Deputy Governor (Corporate) 319 80 399 7. Deputy Governor (Social and Sustainability) 96 10 106 8. Deputy Governor (Finance) 268 17 285 9. Deputy Governor (Business) 586 77 663 10. Deputy Governor (Information and 330 18 348 Communication Technology) Total 8,405 1,058 9,463 Remark : * Temporary employees are hired principally for 4 jobs, i.e. administration, procurement labor, messengers, cashiers for electricity fee and other service fee. Number of employees and ratio of customers per employee Persons 10,000 420 8,405 8,093 8,338 419 8,000 415 Regular employess 6,000 410 Temporary employees 4,000 407 407 Ratio of customers per 2,000 405 985 1,126 1,058 employee 0 400 2013 2014 2015 Year Expense for regular employees and temporary employees (2013 - 2015) Unit : Million Baht Employees 2015 2014 2013 Regular employees 9,165.46 8,498.67 8,273.14 Temporary employees 189.93 183.27 162.22 Total 9,355.39 8,681.94 8,435.36 Remark : * Expense for temporary employees comprises wages and overtime

44 Metropolitan Electricity Authority Capital Structure Equities Unit : Million Baht Descriptions 2015 2014 2013 Government contributions 358.32 358.32 358.32 Un-appropriated retained earning 82,969.77 78,116.14 72,540.25 Total Equities 83,328.09 78,474.46 72,898.57 Loan Liabilities The bonds and financial institutions loans as at December 31, 2015 are the domestic loans with non-guarantee of MOF consist of The MEA bonds amounted to Baht 33,900.00 million and financial institutions loans amounted to Baht 327.50 million. The domestic loans amounted to Baht 34,227.50 million as detail as follows: Unit : Million Baht Descriptions 2015 2014 2013 Domestic Loans, with non-guarantee of the MOF - Bonds (Currency; Baht) 33,900.00 29,900.00 28,200.00 - Financial Institutions (Currency; Baht) 327.50 788.92 1,311.59 Total Loan Liabilities 34,227.50 30,688.92 29,511.59 Budget For the year 2013-2015, the annual approved budgets consist of operating budget and capital budget. The following are the 3 previous years of the approved budgets: Unit: Million Baht Descriptions 2015 2014 2013 Operating Expenditure 13,649 11,910 10,687 Capital Expenditure 58,240 52,419 37,356 Total 71,889 64,329 48,043 Remittance to the Ministry of Finance (MOF) For the year 2013-2015, the MEA’s remittance has been required to remit its net profit to the MOF on the regulated rate as follows: Unit: Million Baht Descriptions 2015 2014 2013 Remittance to the MOF 6,240.50 4,998.60 4,901.10

Annual Report 2015 45 Important Investment Plans and Projects No. Plan/Project Amount Source of Progress of (Million investment the plans/projects Baht) capital (Percent) The top ten priorities 1 The 11th Electric Power Distribution System 55,167 MEA income/loan 59.6 Improvement and Expansion Plan (2012 - 2016) 2 The 10th Electric Power Distribution System 26,365 MEA income/loan 98.2 Improvement and Expansion Plan (2008 - 2011) (Revision) 3 Replacement of Overhead Lines by 8,900 MEA income/loan Under consideration of Underground Cables on Ratchadaphisek Road the hiring rate for consultants Plan in construction design 4 Information and Communication Technology 8,431 MEA income/loan 57.7 (ICT) Master Plan (2012 - 2016) 5 Replacement of Overhead Lines by 5,699 MEA income/loan 18.8 Underground Cables Plan (2008 - 2013) 6 Public Utilities Coordination Plan (2008 - 2011) 5,201 MEA income/loan 67.4 7 Joint - Project on MRT (2014 - 2019) 4,837 MEA income/loan 3.5 8 Construction of MEA Klongtoey Office Plan 3,585 MEA income/loan Under construction (2011 - 2016) (Revision) 9 Information and Communication Technology 3,287 MEA income 86.2 (ICT) Master Plan (2012 - 2016) (3rd Revision) 10 Public Utilities Coordination Plan (2014 - 2018) 2,167 MEA income/loan 47.5 Future plans and projects to be invested in 3 years 1 The 12th Electric Power Distribution System 84,804 MEA income/loan In the process of approval Improvement and Expansion Plan (2017 - 2021) 2 Replacement of Overhead Lines by 48,717 MEA income/loan คณะรัฐมนตรีเห็นชอบ Underground Cables to Support the role of 1 ก.ย.58 Bangkok as an ASEAN Metropolitan Plan 3 Joint - Project on MRT (2017 - 2020) 8,562 MEA income/loan In the approval process 4 Information and Communication Technology 8,205 MEA income/loan In the approval process (ICT) Master Plan 5 Joint - Project on Purple Line MRT (2016 - 2020) 3,296 MEA income/loan อยู่ระหว่างออกแบบ 6 Replacement of Aged Vehicles and Vehicles 1,889 MEA income In the approval process with Mechanical Equipment (2017 - 2021) 7 Public Utilities Coordination Plan (2016 - 2020) 1,267 MEA income/loan In the approval process

46 Metropolitan Electricity Authority Related Business and Assets Value’s Creation Related Business MEA Better Care & Power Quality The objectives of the business of MEA normal case and in emergency case around the Better Care and Power Quality is to provide clock. Advices concerning electricity system and services in electricity system, air-conditioning equipment are offered. system and the MEA Better Care Service membership • Management of energy, Energy Program which is a preventive and remedial management for the purpose of energy cost one–stop service in the maintenance of the saving is provided to industry and large buildings electricity system and equipment countrywide. as a full service. The service includes engineering The MEA Better Care and Power Quality Program design, installation, and improvement for energy covers the following services : conservation, training, inspection and assessment • Design and installation of electricity and consultancy. system, Design of installation of electrical wiring • Overseas service, Overseas service in the and electrical equipment of high, medium and electricity distribution system and related business low voltage. is provided to customers which are foreign • Design and installation of air-conditioner. electricity authorities, economic zones and Design, installation and maintenance of small and industrial estates and international cooperation large air-conditioning system as well as customized organizations. The services include : air-conditioning system for the room of which the - Design, construction and maintenance temperature and moisture control is necessary, of electricity distribution system, transmission lines, for instance computer room. electricity equipment of the delivery stations, • Design and installation of lighting, Design and switching stations and substations, Installation, installation of lighting for aesthetical decorative maintenance, inspection, testing and improving purpose of the landscape of the building or ancient relays, equipment in control and prevention ruins and decorative lighting for celebration for festivals. system and automatic systems as well as • Design, installation and maintenance of measuring meter in the substations using the the solar rooftop, To promote the use of clean electricity distribution system of the delivery energy in response to the government policy in stations and substations to function efficiently and strengthening the energy security of the country, safely MEA has developed the business in solar rooftop - Consultancy in electricity distribution design, installation and maintenance of the solar system rooftop for providing service to the entrepreneurs - Training and seminar in electricity and housing. distribution system • Maintenance of electricity system, The - Management of electricity distribution electricity system maintenance service consisting system which includes the control, analysis, of the maintenance of electricity system in general, planning for distribution of electricity with the guaranteed maintenance service provided to efficiency, security, with high reliability and les loss members of MEA Better Care Service Program in in the system. Annual Report 2015 47 Creation Of Values For Assets has started the construction project of 1. Geographic Information backbone fiber optic network between the Ploenchit Headquarters and the 18 MEA System (GIS) Districts and link the electricity system control MEA has developed the Geographic centers to be used for the internal electricity Information System for the application with system control and communication service. the working systems in the organization to In 2007, MEA has installed the all–dielectric improve the working procedures and increase self-supporting (ADSS) fiber optic cables of 12 the efficiency of the services. Moreover, MEA cores or 24 cores for single mode fiber optic has given importance to the survey technology according to the standard of ITU-T G 652.D and has applied consistently in the work such using the wavelength of 1280 - 1650 nanometer as GPS aerial photos and satellite photos, etc. to cope with the demand in high speed Presently, the mobile mapping system (MMS) information communication of different has been used in the field survey to obtain the networks in the MEA electricity distribution supportive information for the work in area. At present, the total length of the fiber construction planning and estimation. MEA has optic cables is more than 10,000 kilometer. a database of the digital land- base map with MEA has received a license to operate Type the ratio of 1 : 1000 covering 3 provinces namely Three telecommunications business from the Bangkok, Nonthaburi and Samutprakan which National Broadcasting and Telecommunication is a standard spatial map with details and high Commission (NBTC) which allow other accuracy capable to see each building in the organizations to rent, link or use the service of area. With a long experience in GIS system the MEA network remaining from the use of coupled with the availability of complete map, MEA taking into account the security, quality MEA is provided with the readiness to offer the and service. following system : 1.1 Digital Land Base Map for the large 3. Data Security Center organizations already equipped with the GIS The MEA Data Security Center offers system and need to use the land base map service in information protection by keeping 1.2 Digital Land Base Map and the information to be protected in a strong Application room designed and certified according to the 1.3 Information on Land Base Map and standard R60 D of European Certification Board Application on Internet Security System (ECB.S) which is completed 1.4 Printing of Ad Hoc Map for with security systems in accordance with ISO construction work 27001:2005 Standard on Information technology: Security techniques - Information 2. Network Provider security management systems Requirements. MEA has given importance to the MEA has been certified as complying with ISO continuous development of the communication 27001:2005 by TUV Nord, Germany in July 2008. and telecommunication system. In 1993, MEA

48 Metropolitan Electricity Authority Investment In Controlled Entity Distribution Cooling System and Achievement in 2015 Power Plant Co.,Ltd. At present, DCAP has registered 167 MEA has jointly invested in the Distribution million shares of common stock, 10 Baht par Cooling System and Power Plant Co., Ltd. value totaling Baht 1,670 million. MEA has held (DCAP) which has been established on 2 April 30 percent of the company’s common stock 2003. The investment was jointly by the for 50.10 million shares. In 2015, the annual Electricity Generating Authority of Thailand profit amounted to Baht 65.64 million, a (EGAT), PTT Public Co., Ltd. and MEA with the decrease of 12.43 percent of the year 2514. shareholding of 35 : 35 : 30 respectively. The DCAP’s annual profit in 2014 and 2013 initial registered capital of the company was accounted for Baht 74.96 million and Baht Baht 1,000 million and the project investment 72.87 million respectively. In addition, the of approximately Baht 3,200 million. The balance of the investment of MEA in the business of the company is to produce jointly controlled entity per the entity method electricity and sell to the Suvarnabhumi as at 31 December 2015 amounted to Baht International Airport and cooling system for 611.76 million. the air-conditioning system of the buildings in the area of Suvarnabhumi International Airport. The company has been recipient of 25-year - concession for electricity generation from the Ministry of Energy on 29 September 2003 and has a purchase contract of electricity and distribution cooling system with the Airports of Thailand Public Co., Ltd. (AOT). The commercial service has been operated since March 2006. In 2009, the Cabinet has given approval to the additional investment of Baht 1,816 million for the expansion of electricity generating capacity. The investment comprises loan of Baht 1,146 million and shareholding of Baht 670 million resulting in a total registered capital of the company of Baht 1,670 million (Baht 501 million belongs to MEA) and the increased capacity in power generation of 94.5 Megawatt.

Annual Report 2015 49 Reduce Reuse Recycle Performance Analysis

MEA has an intention to develop and In the area of anti-corruption, MEA has improve the power distribution system to attain implemented the plan in good corporate Reduce Reuse Recycle sufficiency, security and reliability together with governance and anti -corruption. As a result of the development of its service to the level its commitment to work with integrity and beyond expectation. In its operation, MEA has transparency, MEA was awarded “transparent taken into account the need and expectation organization” in “the fourth NACC Integrity of different groups of stakeholders with a focus Award 2013” of the Office of National Anti- on the happiness, safety in life and property of corruption Commission. To provide safety in life the people and the economic competitiveness and property to the people and to save electric of the country in the ASEAN Economic Community energy, MEA has consistently installed street (AEC) in 2015. lighting in the areas liable to risk and supplied In 2015, MEA has accomplished its mission electricity to the closed circuit television (CCTV). in line with the policy of the government, of This activity is additional to the on-going project the Ministry of Interior and the relevant on LED Street Lighting on the main streets in regulatory bodies. In the plan/project tourism areas and communities. implementation, MEA has been able to • Development of electricity achieve the targets of its plans and projects. distribution system MEA has implemented Achievements of MEA can be highlighted as the project in electric power distribution system follows: improvement and expansion and the project in • Responding to the government replacement of the overhead lines with the policy MEA has carried out its business in underground cables in several areas to meet adopting the government policy, Cabinet the maximum demand of 8,756 MW in 2015 resolutions and the orders of the Prime Minister and to increase the security and reliability of particularly in promoting a reconciliation and the electricity system as well as safety for the unanimity of the nation through the elimination customers and the public. As for the security of inequality among the people in the society index of the electricity system in 2015, the and the provision of opportunities to access the system average interruption frequency (SAIFI) government services. To achieve this objective, was 1.369 times/customer/year and the system the MEA mobile services have visited average interruption duration index (SAIDI) was communities and met with their leaders in order 35.700 minutes/customer/year. Moreover, MEA to establish relationship and mutual has been developing the working systems and understanding. Regarding the promotion of 12 improving the efficiency of the operation with core values, MEA has publicized the importance the help of modern information technology and of these core values internally as well as among communication system. The quality management the youth and their families through the system has been implemented in the technical activities in energy and environment work as well as in the service provision in conservation additional to a network building. general and in the service of which MEA has a รายงานประจำ�ปี 2558 51 guarantee with customers. Additionally, MEA preceding year. The ratio of customers has implemented the relevant international, per employees was 419 customers per employee. regional and national standards such as ISO • Society, environment and 9001 : 2008, ISO/IEC 17025 : 2005, ISO/IEC 27001 sustainability of the organization : 2005, ISO 26000, ISO 22301, CMMI, EN 1047-2 The mission of MEA in the area of society and Fire resisting data room, TIS 18001-1999, etc. environment is “to improve the organization to be • Increasing efficiency of the economically, socially and environmentally service system In response to the changing developed with sustainability”. To achieve its lifestyle of the customers which needs to mission, MEA has implemented various projects access all services conveniently and speedily and carried out activities in this area which anywhere and anytime, MEA has been trying includes waste management, MEA trees to develop its service system to reach the conservation, MEA mangrove forest conservation, targeted level of beyond expectation through Young MEA, strengthening relationship among the innovation created with the help of the MEA, communities and stakeholders, Energy information technology system. Examples of such Mind Award, Smart Energy Building, feasibility improvement are the on-line payment through study in the use of electric cars in MEA the MEA agents, further development of the activities, LED Street Light Project, 1 MW- clean “MEA Smart Life” system to facilitate payment energy-producing rooftop, promotion of by credit cards and the tracing backward of the improved efficiency in energy use in the electricity used; the improved pattern of building, installation of ground wires for the statement of electricity fee by means of the drinking water coolers in school, provision of “On-Site Billing” which allows the customers knowledge in electricity safety in the communities, to check the accuracy of the amount of etc. Moreover, MEA has developed its electricity used and the fee to be paid; organization based on the worldwide provision of additional channel for customers’ recognized guidelines of the Global Reporting voice; the newly developed “MEA service Initiative (GRI) and has implemented the tracking” system provided on the website sustainability plan in accordance with ISO www.mea.or.th to facilitate the applicants for 26000 and the GRI Guidelines for the electricity use in checking or inquiring about Sustainability Reports. MEA has raised the status of their application; the development awareness and promoted involvement of the of the field forces management system with executives and employees in the sustainable the introduction of the automatic system to development of the organization and society. increase the efficiency of the field work and As a result, MEA won the Excellence Award the service in electricity interruption. (G Gold) in the category of the organizations The above mentioned improvement has which have complied with the criteria of being resulted in an increased number of customers Green Office from the Department of in 2015. The total number of customers in 2015 Environmental Quality Promotion, Ministry of was 3,522,038 representing an increase of Natural Resources and Environment. 126,671 customers or 3.73 percent of the

52 Metropolitan Electricity Authority Financial Analysis Finance and financial status Performance in 2015 The total income of MEA was Baht 199,875.40 million. The majority of the income or 97 percent was derived from the sales of electricity. The total income had a decrease of Baht 802.33 million or 0.40 percent of the previous year. The total expense was Baht 188,483.24 million, a decrease of Baht 942.10 million or 0.50 percent of the year 2014. In 2015, profit for the year was Baht 11,392.16 million, which was an increase of Baht 139.77 million or 1.24 percent of the year 2014.

Income Expense Profit for the year

Million Baht Million Baht Million Baht 250,000 250,000 15,000 192,152 200,678 199,875 200,000 200,000 180,921 189,425 188,483 12,500 11,231 11,252 11,392 10,000 150,000 150,000 7,500 100,000 100,000 5,000 50,000 50,000 2,500 Year Year Year 0 0 0 2013 2014 2015 2013 2014 2015 2013 2014 2015 Unit : Million Baht Increase (decrease) Descriptions 2015 2014 2013 from the prior year Amount Percent Income Electricity sales 194,698.62 195,509.16 187,213.15 (810.54) (0.41) Others 5,176.78 5,168.57 4,939.21 8.21 0.16 Total 199,875.40 200,677.73 192,152.36 (802.33) (0.40) Expense Electricity purchase 168,921.23 170,295.34 162,058.35 (1,374.11) (0.81) Operating expense and others 18,264.03 17,868.29 17,529.94 395.74 2.21 Financial cost 1,297.98 1,261.71 1,332.81 36.27 2.87 Total 188,483.24 189,425.34 180,921.10 (942.10) (0.50) Profit for the year 11,392.16 11,252.39 11,231.26 139.77 1.24

Annual Report 2015 53 Financial status as at 31 December 2015 Assets In 2015, the total assets of MEA of Baht 189,679.56 million comprises current assets of Baht 70,360.10 million, fixed assets of Baht 105,567.46 million and other assets of Baht 13,752.00 million. The increase of the total assets from the years 2014 and 2013 was Baht 12,138.70 million and Baht 24,552.99 million or 6.84 percent and 14.87 percent respectively. Liabilities The total liabilities of MEA in 2015 were Baht 106,351.47 million. The increase from 2014 and 2013 was Baht 7,285.07 million and Baht 14,123.47 million or 7.35 percent and 15.31 percent respectively. In 2015, the liabilities structure comprised current liabilities of Baht 38,766.46 million or 36.45 percent of the total liabilities, long-term liabilities of Baht 33,970.52 million or 31.94 percent of the total liabilities and other liabilities of Baht 33,614.49 million or 31.61 percent of the total liabilities. Equity The total equity of MEA in 2015 was Baht 83,328.09 million which increased from 2014 and 2013 Baht 4,853.63 million and Baht 10,429.52 million or 6.18 percent and 14.31 percent respectively. In 2015, the equity comprised government contribution of Baht 358.32 million and unappropriated retained earnings of Baht 82,969.77 million

Assets, Liabilities and Equity Structure (2013 - 2015)

Million Baht 200,000 189,680 177,541 165,127 +7.52% +6.84% 150,000

106,351 99,066 100,000 92,228 83,328 72,899 78,474

50,000

Year 0 2013 2014 2015

Assets Liabilities Equity

54 Metropolitan Electricity Authority Unit : Million Baht Increase (decrease) Descriptions At 31 Dec 2015 At 31 Dec 2014 At 31 Dec 2013 from prior year Amount Percent Assets Current assets 70,360.10 65,526.41 60,838.70 4,833.69 7.38 Fixed assets 105,567.46 100,374.35 93,474.94 5,193.11 5.17 Other assets 13,752.00 11,640.10 10,812.93 2,111.90 18.14 Total assets 189,679.56 177,540.86 165,126.57 12,138.70 6.84 Liabilities and Equity Current liabilities 38,766.46 37,209.76 34,110.87 1,556.70 4.18 Long-term liabilities 33,970.52 30,316.12 27,768.00 3,654.40 12.05 Other liabilities 33,614.49 31,540.52 30,349.13 2,073.97 6.58 Equity 83,328.09 78,474.46 72,898.57 4,853.63 6.18 Total Liabilities and Equity 189,679.56 177,540.86 165,126.57 12,138.70 6.84 Changes in cash flow The cash and cash equivalent as of 31 December 2015 amounted to Baht 20,142.20 million, a decrease as at 31 December 2014 and 31 December 2013 of Baht 3,683.65 million and Baht 1,505.10 million or 15.46 or 6.95 percent respectively. The increase (decrease) of cash flow comprised net cash from the operating activities of Baht 22,158.79 million or which increased from 2014 of the amount of Baht 1,484.26 million or 7.18 percent and decreased from 2013 of the amount of Baht 7,926.46 million or 26.35 percent. The net cash used in the investing activities amounted to Baht 19,622.99 million mainly in the investment of fixed assets. The net cash used in financing activities amounted to Baht 6,219.45 million comprised mainly the remittance to the Ministry of Finance. Unit : Million Baht Increase (decrease) Cash and cash equivalent 2015 2014 2013 from prior year Amount Percent Net cash from the operating activities 22,158.79 20,674.53 30,085.25 1,484.26 7.18 Net cash used in investing activities (19,622.99) (12,434.19) (9,713.37) (7,188.80) 57.81 Net cash used in financing activities (6,219.45) (6,061.79) (7,364.24) (157.66) 2.60 The increase (decrease) of net cash and (3,683.65) 2,178.55 13,007.64 (5,862.20) (269.09) cash equivalent Cash and cash equivalent at the beginning 23,825.85 21,647.30 8,639.66 2,178.55 10.06 of the period Cash and cash equivalent at the end of 20,142.20 23,825.85 21,647.30 (3,683.65) (15.46) the period Annual Report 2015 55 Financial Ratio In 2015, the liquidity of MEA’s financial ratio had a current ratio of 1.27 times, its profitability ratios show the return on assets and the return on equity at 6.20 percent and 14.08 percent respectively. The capital structure had a debt to equity ratio of 0.41 times and a debt coverage ratio of 3.08 times. Current Ratio Operating Margin Per kWh

Time Stang Per kWh 1.4 1.23 1.21 1.27 22 20.94 20.58 1.2 20.11 1 20 0.8 0.6 0.4 18 0.2 Year Year 0 16 2013 2014 2015 2013 2014 2015

Return on Assets Ratio Return on Equity Ratio

Percent Percent 8 20 7.17 6.57 6.20 15.95 14.87 6 15 14.08

4 10 Year Year 2 5 2013 2014 2015 2013 2014 2015

Debt/Equity Ratio Debt Service Coverage Ratio

Time Time 0.8 4 3.04 3.27 3.08 3 0.6 2 0.40 0.39 0.41 0.4 1 Year Year 0.2 0 2013 2014 2015 2013 2014 2015

56 Metropolitan Electricity Authority

Performance Highlights (1) Electricity Distribution System Development of modern information and GIS both internally and externally in the future. communication technology : Supervisory Control and Development of Project Base Management. Data Acquisition/Energy Management System (SCADA/ The Project of “Development of Project Base EMS). The system uses fast, accurate and advanced Management” which won the honorable mention technology to effectively control, command and award in the Thailand ICT Excellence Awards 2015 is manage electrical power distribution with the the project which has been designed and developed Distribution Automation System/Distribution for use in managing and monitoring the ICT projects Management System (DAS/DMS).The system helps to in the ICT Master Plan. The remarkable feature of the reduce the power interruption time, to manage system is the ability to differentiate the status of every electricity distribution for important places and to project such as in the stage of TOR preparation, in the increase the efficiency in electricity sales management. tendering stage, in the stage of payment, etc. The Development of e-Meeting on Cloud System early warning is provided by the color symbols such to support the meetings of the executives responding as green, yellow and red indicating the progress of to the demand for information. The system has made each project. In 2015, further development has been it possible to access meeting document everywhere made on the application concerning the early warning and at all time, reducing the use of paper and being feature by the auto-email system with the development in line with the policy in Digital Economy of the of key-in system to upgrade the quality of information government and the requirements of Green Office of to be timely for the support of decision-making of the MEA. Moreover, the Solar Rooftop System (SRS) which executives in accordance with the ICT strategy of MEA is linked with the database of the Office of Energy in development of the information technology and Regulatory Commission of Thailand will facilitate the communication system for the efficiency in power producers who wish to participate in the project management. in monitoring the status of the purchase/sale contract (2) Service with MEA. To respond to the demand of the customers Geographic Information System (GIS). In 2015, to the level of beyond expectation, MEA has MEA has obtained a new computer system in developed its service further from the previous year replacement of the expired server. The new system as follows : is equipped with the Main Site and DR-site which can • Increasing the efficiency of the billing system work in the case where the Main Site cannot work. through the agents by means of an on-line payment. Moreover, additional features have been developed In 2015, more agents comprising Krung Thai Bank, Siam such as map information, monitoring system for the Commercial Bank, True Money Co. Ltd., Government MEA projects, improvement of electricity sales system Saving Bank, Thai Military Bank and Central Pay (Tops by using mobile device, information updating by and Family Mart) have been appointed as MEA agents. mobile device, monitoring system for the MEA • Improvement of the billing pattern by the maintenance and repair of public electricity, reporting On-site Billing. The billing pattern has been improved system, collection system for electricity metering, etc. as the on-site billing so that the customers can obtain Additionally, GIS system for the service in the form of the billing in a short time and can check the correctness Private Cloud has been acquired to increase the of the billing immediately. The statement in English efficiency and safety in providing the information on 58 Metropolitan Electricity Authority has been added. For the customers whose payment customers on matters concerning their service such is made through the bank account and credit cards, as monthly electricity fee, their payment status through the current statement will be attached with the the bank account. Interested customers can apply for receipt/vat payment for the billing of the preceding the service through the “MEA Pay and Fun Program”. month. The number of customers to receive the • Development of the information On-site Billing has increased to 2,689,481 or 80 percent management system relating payment of electricity of the total customers. fee. MEA has improved the information management • Installation of smart card readers. The smart system relating of electricity fee payment to be secure, card reader which is capable of reading and copying safe and reliable in compliance with the Royal Decree the identification number of the citizen on any concerning the security in electronics transactions, application form and certified as true copy by the B.E. 2553 (2010) and the Notification of the Electronics owner has been installed for the purpose of making Transactions Commission concerning the standard on the maximum use of the all-purpose identification security of information system in accordance with the cards of the people. safety system, B.E.2553 (2010). MEA has been certified • Development of the monitoring system for as conforming to ISO/IEC 27001 : 2013 the International the request for electricity. To be proactive and to Standard on Information Security Management System promote the good image of MEA, the tracking system (ISMS) by the British Standards Institution (BSI) on 21 for the application for electricity has been developed July 2015. known as “MEA Service Tracking” and made available • MEA Smart Service. The “MEA Smart Service” on the MEA website (www.mea.or.th) to facilitate the is the system which facilitates the electricity users in applicant for electricity in checking or inquiring about the application for electricity through the Internet the processing status of their application. without having to go to the MEA Office. • Development of the “MEA Smart Life” • Development of different services. MEA has system. The “MEA Smart Life” system has been made development in different services including the developed to cope with the demand for electricity following: Upgrading the quality of the touch points and the changing lifestyle of the urban people which service such as at the payment counters, room of needs to access all kinds of service from any place, on-duty staff for power interruption, one-stop service, any time and with any device. In 2015, the system has MEA Ambassador, MEA Call Center and MEA Agents; been developed further to receive payment through “Business Solution Center” which provides a one-stop credit cards and to check the amount of electricity service to the business group customers concerning use in the past. More development has been made application for electricity; Training for customers who in the field forces management by means of linking work in the industry, industrial estates, “MEA Better with the automatic system for use in the field work Care Service”, trade partners, cooperation parties; and in the power interruption service which requires Project on “Subsidiary in Industrial Estates” to take ease of use and agility. Through the “MEA Smart Life” special care of the electricity system in the industrial system, the electricity users can notify the problem estates which require assurance in the electricity with the smart phone and the system will forward the system of high quality; MEA e-Service for customers message to the device in the mobile unit to enable who wish to apply for electricity for additional power; them to solve the problem immediately. notification of electricity fee through SMS and e-mail; • Sending SMS to customers on the status of on-site billing which allows the customers to check payment. MEA can send SMS to inform/alert the the correctness of the power used immediately.

Annual Report 2015 59 Moreover, with the help of the ICT system, MEA has organization. The continuous development of the been able to create innovation relating service such performance management system by specifying the as the following: Online payment system through the working together of the superiors and the inferiors as MEA agents; “MEA Smart Life” with additional a target and used in the performance evaluation. The development in linking with the online payment promotion system has been improved to correspond system through the MEA agents to enable the more with the performance of the employees by customers to check the statement for electricity fee changing from the level system to the percentage and make payment simultaneously as well as to apply system. Monitoring of the key indicator in human for electricity and check their application status; On-site resource management (HR Dashboard) has been billing which can give statement of electricity fee at conducted regularly to reflect the result in the human the time when the amount of electricity used is resource management. recorded. The purpose of the development is to • Strengthening the corporate culture. MEA has upgrade the quality of electricity and the service of been strengthening the corporate culture by means MEA to cope with the demand in electricity and the of promoting among the employees the behavior of changing lifestyle of the urban people. working in response to the organizational strategy. To (3) Growth,Learning and Development this end, the procedure should start from the recruitment MEA has consistently developed its organization of the employee whose behavior is in line with the based on the SEPA and TQA Guidelines which focus core value and corporate culture. Moreover, the on quality, speed, cost effectiveness, green and establishment of “Quality Culture” in the organization governance. All MEA personnel have been promoted has been undertaken through the “Total Quality to give importance to the performance improvement Leader (TQL)” project. The project is implemented by and innovation creation based on the QSCG principles giving the role to the head of the unit as the one who which will contribute to the increased efficiency in promotes the change of the working procedure with organization management. The implementation of the aim of reducing the working time and cost by quality management system in the whole organization, which innovation may be created for customer in particular, will help to improve the performance of facilitation. Besides, MEA has also promoted the “Green the personnel to meet the standard leading to the Culture” with the aim of raising awareness of the efficient and effective result. The improved employees in care to the society and environment performance will, not only respond effectively to the through their routine job. Examples for such activities demand of the customers and stakeholders, but will are promotion of reliability in the hospital groups, also provide for a strong foundation for improvement installation of LED street lights of not more than 140 of the working procedure to be systematic in support w, organizing the “GCG Day 2015” under the theme of the organization to be a leading organization at the of “Virtue is in your DNA”, MEA Mangrove Conservation, international level. public relations through various information channels. Moreover, to provide the employees with the (4) Human Resource Development feedback of their behavior based on the corporate • Increasing the efficiency in recruitment to culture, a survey was made on awareness of the obtain the sufficient number of quality manpower. employees in their compliance with the corporate MEA has organized a road show on “Talent culture. The result of the survey will be used for the Management” to develop the MEA personnel to be improvement of the future promotion activity in to professional, to promote their loyalty to the reach all levels of employees.

60 Metropolitan Electricity Authority • Training and personnel development. The the use of coaching method and creation of the training and development has been organized in order coaching atmosphere through the contest project to upgrade the competency of the MEA personnel in “MEA Coach of the year 2015”. Furthermore, a plan the administration, technical and general area so that has been prepared to develop and expand the they can apply the obtained knowledge in their coaching system with the use of technology in the respective work. The personnel development focuses management. on the development of the core, managerial and (5) Social and Environmental functional competency. The individual development plan (IDP) has also been implemented. Moreover, MEA Responsibility has promoted the self-studying through the 27 With the mission in social and environmental e-Learning courses and a library service. This aim of development “To develop the organization to be this activity is to ensure that the MEA employees have economically, socially and environmentally adequate potential to achieve the objective of the developed with sustainability” MEA has performed strategic plan. its activity in social and environmental development • Creating learning atmosphere. In creating the as directed by the Social and Environmental Master learning atmosphere, various activities have been Plan (2012 - 2016) (Second revision). organized including the exchange of knowledge and Major achievements in social and experiences among personnel of different units and environmental development in 2015 are as follows : lines organized by the Training Unit in cooperation with • Management of waste. Training has been LO Agents and MEA Change Team; the implementation organized to promote the understanding and the of different projects such as the project of knowledge awareness of the MEA employees together with the transfer by the retired employees, the publication on community in waste management. Activity in tree experiences of the retired executives (during 2015 planting and taking care of trees has been undertaken. -2016), the transfer of knowledge on good practice in • Activity “MEA Mangrove Conservation”. “touch point” service; promotion of the understanding The activity has been conducted in the area of of the executives and employees in the 70:20:10 Chulchomklao Fort, Samutprakan Province. According Model for Learning and Development and the use of to the additional analysis on the benefit and impact the Model in the personnel development of MEA; to the environmental quality, it was found that the promotion of the learning together activity and mangrove of 200 rai has helped to absorb carbon knowledge management through the team dioxide of 60.16 ton per year. development activity. Moreover, contests have been • The activity “Young MEA”. organized to promote the learning atmosphere such • The activity to strengthen the relationship as a contest of inventions and working improvement with the community and stakeholders. which allowed involvement of the employees in • The activity “Energy Mind Award”. The creating innovations for MEA. objective of award presentation is to evaluate the • Using “Coaching method” in personnel schools participating in the project and to give awards development. Coaching is an essential mechanism in to the successful schools. From the evaluation, the the achievement of 70:20:10 Model for Learning and educational personnel and students have a positive Development and a change in personnel development change in their behavior concerning the energy use. culture which emphasizes the role of the superior on Moreover, an energy conservation club and network the development of the inferiors. MEA has promoted have been formed. MEA has organized a training course

Annual Report 2015 61 on volunteer lecturers to provide knowledge in theoretical training in safety of electricity were energy conservation to the participating educational organized for Panich Community, Soi Suan Ngeun institutions and employees. Community, Bang Talad Pattana 2 Community and • Project to promote the efficient energy use Keha Romklao Zones 2 & 2. in the building. Being an on-going project from 2012, (6) Sustainability of the Organization the implementation of the project in 2015 was in the • Project on ISO 26000. MEA has prepared a measurement of the quality in energy use and Project on Sustainability in accordance with ISO 26000: calculation of MEA Index of the university buildings Guidance on Social Responsibility and the guideline and department stores. of the Global Reporting Initiative (GRI).A roadmap and • Installation of solar cell system. The solar cell initiative to develop the sustainability of MEA has been system of 1 MW has been installed in the buildings of prepared based on the reference framework of the MEA District from which the energy use has been internationally recognized standards of ISO 26000, reduced as well as the carbon dioxide emission which Guidance on Social Responsibility and the Global has been reduced to 770 ton per year. Reporting Initiative (GRI). The roadmap and initiative • Study and analysis of LED street lights. From covers involvement of the stakeholders in the value the study on the replacement of incandescent lamps chain, the sustainability relationship with the used in the street lamps by the LED lamps, it has been organization, priority of the sustainability items which found that the LED lamps can reduce the use of energy need to be addressed in accordance with the standard and carbon dioxide emission to 158 kg/ lamp/year. G4 of GRI. In 2015, the plan to promote sustainability The LED lamp has longer lifetime and the problem in has been prepared. The achievements in the plan maintenance be lessened. The intensity of the light is implementation have been collected and used in the controllable in accordance with the road condition preparation of the sustainability report based on the and the time of the day. framework of ISO 26000, Guidance on Social • Introduction of electric car. MEA is the first Responsibility and the Global Reporting Initiative (GRI). organization to introduce the use of electric car in the The report has won the Excellence Award in the organization. MEA has available 10 charging stations “Sustainability Report Award 2015” organized by the and has 10 purchased cars and 5 rented cars. In 2015, Stock Exchange of Thailand. a study has been conducted on the technology and • MEA Green DNA. MEA Green DNA has been the efficiency of the electric bus for the development prepared in accordance with the International of electric vehicles and preparation for the future. Standard of ISO 26000 Guidance on Social Responsibility • Installation of ground wire for drinking water and has won excellence award (G Gold) in the coolers. MEA, in cooperation with the schools under category of the organization which have met the the Office of the Basic Education Commission and the requirements of being Green Office in 2015. The schools under the supervision of the Bangkok achievements in the improvement of the working Metropolitan Administration, has provided a free procedures of MEA have been nominated as candidate service in ground wire installation and maintenance in the “Thailand Kaizen Award 2015” organized by the for the drinking water coolers in schools. Up to present, Technology Promotion Association (Thailand-Japan) 1,020 schools have been included in the program. and have won the Silver Award in the category of • Training in safety of electricity. Training has Genba Kaizen and a certificate in the category of Kaizen been organized for representatives of industrial sectors Suggestion System. and Department of Labor Protection and Welfare. Four

62 Metropolitan Electricity Authority Key Activities in 2015 Mobile Unit to improve electricity system of 60 schools in commemoration of HRH Princess Maha Chakri Sirindhorn MEA Assistant Governor, Mr. Saranit Angsusingh, presided over the launching of the project for improvement of electricity system of 60 schools in the MEA power distribution districts in Bangkok Metro pol- itan, Nonthaburi and Samutprakarn Provinces on 21 May 2015 at Klong Kanya School, Samutprakarn Province. The project was implemented to commemorate the 60th Birthday Anniversary of Her Royal Highness Princess Maha Chakri Sirindhorn and to promote the efficient use and safety of electricity. MEA supplied electric energy to the trial program of the e-bus of the Bangkok Mass Transit Authority MEA Assistant Governor, Mr. Kirapat Jiamset, together with Acting Director of the Bangkok Mass Transit Authority, Mrs. Pranee Sukrasorn and Dr. Kamol Sukosol, Advisor of Office of Manager of Loxley PLC. jointly presided over the launching ceremony of the trial program of electric bus running in the route of the Bangkok Mass Transit Authority. The launching ceremony was held at the bus stop of Central World Shopping Complex on 2 June 2015. MEA supplied electric energy to the e-bus under the program in response to the government policy in promoting the bus using alternative energy. Opening of Damrongdhama Center and Information Center MEA Governor, Mr. Somchai Roadrungwasinkul, officiated the opening of MEA Damrongdhama Center and Information Center on 22 May 2015. The centers have been established for the purpose of receiving complaints from the MEA customers and the general public and providing information on MEA to the general public to increase customers’ satisfaction with the service and to serve as a channel for forwarding the feedback to the Ministry of Interior under the principle of “Information disclosure is our main duty with an exception of confidential information” and to comply with the good governance in response to the policy of the Ministry of Interior. The 19 MEA Damrongdhama Centers which have been established in accordance with the policy of the Ministry of Interior are located on the first floor of the MEA Headquarters and at the 18 MEA Districts. The Information Center is located on the first floor of the MEA Headquarters. Moreover, based on the project “MEA to relieve victims of disaster in Nepal”, a donation of 296,509.83 Baht received from the MEA staff and general people was delivered to Nepal through the Inspectors” Office.

Annual Report 2015 63 MEA signed MOU as model Information Center of Government Agencies Minister of the Prime Minister’s Office, Mr. Suwapan Tanyuwattana, presided over the signing ceremony of the Memorandum of Understanding in joining the network of information centers of the governmental bodies development, and attended the meeting of the fiscal year 2015. MEA Assistant Governor, Mrs. Yostorn Chinrungruang, also attended the signing ceremony. In the evaluation of the model organizations which have established official information centers conducted by the Committee on Official Information Centers of the Prime Minister’s Office, MEA ranked the top organization as having received full score. The signing ceremony which was held on 21 September 2015 at Grand Ballroom, Eastin Hotel, Bangkok was attended by the MEA Executives and employees and a number of representatives of different government agencies and public enterprises.

MEA won two Awards in the Thailand ICT Excellence Awards 2015 MEA Assistant Governor, Mr. Siripong Vichai, on behalf of MEA, received the Excellence Award for the Project of Field Forces Management: FFM which was a project of innovation development for the MEA service, and an Honorable Mention Award for Development of Project Base Management in the category of government agencies. The awards were presented by Mr. Visit Tantisunthorn, President of Thailand Management Association (TMA) in the “Thailand ICT Excellence Awards 2015” at Plaza Atthine Royal Meridien Bangkok on 18 June 2015.

Outstanding Awards for MEA in the Thailand Energy Awards 2015 Minister of Energy, General Anantaporn Kanchanarat presented a plaque of honor to MEA Governor, Mr. Somchai Roadrungwasinkul, on behalf of MEA, for having won the Outstanding Award in the category of organizations promoting energy conservation and alternative energy in the “Thailand Energy Awards 2015” organized by the Department of Alternative Energy Development and Efficiency, Ministry of Energy, to raise awareness in energy conservation and alternative energy and to promote more development in alternative energy. The award presentation was held on 24 November 2015 at the Grand Ballroom, Intercontinental Hotel, Bangkok.

64 Metropolitan Electricity Authority MEA announced the result of the competition in the Energy Mind Award 2014 MEA Governor, Mr. Somchai Roadrungwasinkul, presided over the award presentation in the “Energy Mind Award 2014”. The awards comprising “2014 Outstanding Standardized Schools in Energy” ranging from 1-5 stars, “Energy Master Award” and “Young Energy Master Award”, were given to educational institutions to promote their activities in energy conservation and to raise awareness in energy conservation for educational personnel and students. The awards were given to 62 educational institutions on 31 March 2015 at Aksra Theatre, King Power Downtown Complex.

MEA signed MOU for cooperation in prevention and anti-corruption MEA Governor, Mr. Somchai Roadrungwasinkul, attended the signing ceremony of the Memorandum of Understanding concerning the tripartite cooperation in prevention and anti-corruption comprising organizations under the Ministry of Interior, the Thai Chamber of Commerce and the Anti-corruption Organization of Thailand having Minister of Interior as witness. The intention of the MOU is to show the determination to fight against corruption in the public and private sectors, and to raise awareness of the staff in the importance of integrity, honesty, good conduct and fairness. The signing ceremony was held on 4 September 2015 at the Meeting Room 1 of the Ministry of Interior. Furthermore, on the Anti-corruption Day, an activity concerning anti-corruption was organized under the concept of “Active Citizen, Power of the People Against Corruption” as a campaign to urge people to fight, instead of being passive, against all kinds of corruption and to get rid of dishonest people out of the society so as to provide for the sustainable social and economic development of the country. The event included a talk by the Prime Minister, General Prayuth Chan-Ocha on “The progress of the government in the reform concerning anti-corruption” and a presentation of the vision by the representatives of public and private sectors on the subject of “Active Citizen”. The event took place on 6 September 2015 at Hotel Centara Grand and Bangkok Convention Center at Central World.

MEA won excellence award in the assessment of Green Office Prime Minister, General Prayuth Chan-Ocha presented the plaque of honor to MEA Governor, Mr. Somchai Roadrungwasinkul, on behalf of MEA, for having won Excellence Prize (G Gold) for the successful organizations assessed to be Green Office in 2015. The award presentation was organized by the Department of Environmental Quality Promotion on 4 December 2015 at Impact Forum, Impact Conventional Hall and Exhibitions, Muang Thong Thani.

Annual Report 2015 65 MEA won outstanding award in Sustainability Report Award 2015 MEA won the Outstanding Award in the “Sustainability Report Award 2015” organized by CSR Club, Thai Listed Companies Association, Securities and Exchange Commission, Thailand, and Thaipat Institute at the building of the Stock Exchange of Thailand. The award presentation was presided over by Dr. Chaiwat Wiboolsawat, Chairman of the Stock Exchange of on 15 December 2015. MEA is a state enterprise which has continuously given importance to the working process in sustainability of the organization as evidenced by the implementation of the worldwide recognized Guidelines for the Sustainability Reports prepared by the Global Reporting Initiative (GRI) and the implementation of ISO 26000 Social Responsibility. In the capacity of a state enterprise in electricity, MEA has a strong determination to develop the organization together with the Thai society under the principle of Quality, Speed, Cost Effectiveness, Green and Governance to become a world class organization.

MEA participated in the e-Government Forum 2015 to drive the policy in Digital Economy MEA Deputy Governor (Information and Communication Technology), Mr. Chaiyong Puapongsakorn, in the capacity of President of Information and Communication Technology State Enterprise Club of Thailand (ICTSEC), participated in the exhibition of modern innovation of MEA in the “e-Government Forum 2015” which was held under the concept of “The Transformation of Business and Society”. He also participated in the discussion and exchange of ideas with Dr.Wisanu Tantavirun, Advisor of the National Broadcasting and Telecommunications Commission (NBTC) and executives of the ICT business group on the topic of “Shift to an Enterprise-Wide Asset Management and Procurement Model” with the aim of exploring more effective links in procurement among different organizations. The event was organized at Centara Hotel, Government Complex, Chaeng Wattana Road.

66 Metropolitan Electricity Authority Enterprise Risk Management

MEA has implemented its risk management in continuity for the purpose of providing sustainable value addition to the organization and stakeholders. Recognizing the importance of the enterprise risk management to the achievement in business operation, an efficiently integrated risk management system has been developed to be implemented throughout the organization in line with the COSO Enterprise Risk Management Integrated Framework (COSO: ERM) and ISO 31000: Risk Management - Principles and Guidelines. Furthermore, for all types of risk, i.e. strategic risk, operational risk, financial risk and compliance risk, risk management measures, monitoring and evaluation of the risk management have been established to prevent and control the impact from risk to the acceptable level. Risk Management Structure The structure of risk management of MEA efficiency, completeness for each core activity comprises the Sub-committee for risk and continuous adoption of risk assessment as management plans, Committee for risk a corporate culture. The Internal Audit Unit is management of MEA and Committee for risk responsible for monitoring the work and reporting management for each unit to ensure the to the Inspection Committee on a regular basis.

Board of Directors

Sub-Committee on Risk Management Plan Audit Committee

Risk Management Risk Management International Audit Committee Committee

Line-Level Risk Management Committee Risk Management Policy in 2015 MEA has established the following risk the objectives of the organization to control management policy to ensure the both opportunity and risk to be at the acceptable appropriateness of the enterprise risk level so as to facilitate the continued operation. management throughout the organization and There will be an integrated supervision, risk that it is carried out in the same direction with management, compliance with rules and the strategy and mission of the organization : regulations and standards specified by the “MEA by the Board of Directors, executives government. Network and corporation will be and employees are involved in the management established with the external organizations. of the incident, threat and other factors which Corruption is not acceptable.” may have an impact on the achievement of Annual Report 2015 67 Risk Management in 2015 The risk management handbook has and other working procedures is available on been prepared by MEA with an annual review/ the website of the Risk Management Unit. revision to cope with the internal and external In addition, MEA has monitored and changes, to be used as guideline in the risk reviewed the 4 major organization risks to be management both at the organization level in line with the changing situation and the and the operational level. The handbook which factors which may affect the business gives the linkage between the risk management operation. Four major risks are as follows :

• Delay in the in The replacement of the overhead lines by the underground cables project Several major problems and constraints have been caused by external factors such as permission of the land owners for construction, problem in traffic circulation, etc. and have hampered the development of the electricity system and the management of the invested assets of MEA as well as the maximum benefits to be obtained for the country and the people. Therefore, MEA has prepared the plan for improvement of the replacement of overhead lines by underground cables as a national plan which will bring about the integration of the work of relevant organizations for achievement of the target according to the government policy and Strategic Risk by the timeframe. • Progress of renewable energy technology At present, the use of renewable energy has a tendency to be increasing. The progress in research and development in renewable energy coupled with the government policy to promote the energy saving and the use of renewable energy have provided the customers with more choices. MEA has prepared its readiness and opportunity to cope with the increasing use of renewable energy such as by conducting a study and analysis of the impact of the use of renewable energy on the selling unit of MEA and the impact of the micro electricity producers on the electricity distribution system of MEA; preparing a plan on energy conservation and making a research in renewable energy, etc.

• Readiness of the human resources To develop the performance of the human resources to be skillful, knowledgeable and competent for the job and fit for the business operation of the present time as well as in the future in accordance with the MEA strategic plan, MEA has prepared a plan in human resources development which is Operational compatible with the changes. The objectives of the plan is to provide Risk MEA with an adequate number of potential human resources to cope with the changeable strategy. Moreover, a plan to promote loyalty of the employees to the organization which will contribute to the performance of the employees and, ultimately, of the organization has also been prepared.

68 Metropolitan Electricity Authority • Blackout resulted from the electrical equipment With a strong determination to develop the quality of the electricity distribution system continuously, MEA has given importance to the maintenance of equipment and the change of equipment and technology to be Operational modernized and ready to use so as to control the operating cost at Risk an appropriate level. A plan for the maintenance of cables and replacement of aged equipment in the sub-stations and a plan for reinforcement and reduction of damages in the electricity distribution system have been prepared by MEA. • Disbursement of investment budget In the implementation of the plans/projects which requires expense disbursement from the investment budget, in certain cases, there are shortcomings in the initial stage or during the implantation stage of the projects. Therefore, it is ne cessary to have continuous risk management to facilitate the smooth operation and the disbursement of investment budget to comply with the schedule in the plan.MEA has prepared a plan to increase the efficiency of the execution of the investment plan with the objective of increasing the efficiency in the disbursement of Financial Risk investment budget in accordance with the target. • Exchange rate and interest rate The fluctuation of the exchange rate and the interest rate based on the economic condition of the country and the world may have an impact on the financial management particularly in the obligation of payment of the capital and the incurred interest. In the relevant unit, MEA has made as a routine job an internal management concerning the internal control system and self- assessment in the financial management procedure (the management of debt from loan) to prevent risk from the fluctuation of exchange rate and interest rate.

• Corruption Recognizing the importance of the performing its task based on the principle of transparency, anti-corruption and corporate governance both at the organization level and the operation level, MEA has implemented continuously risk management concerning Compliance corruption through the internal control and risk management Risk measures such as division of duty, report on conflict of interest, whistle blowing, disciplinary punishment, etc. The self-assessment to be conducted by the employees involved in the work procedures liable to risk has been revised to cover also risk assessment in corruption.

Annual Report 2015 69 Business Continuity Management MEA has given importance to the The Handbook in Business Continuity Manage- continuous operation and has implemented ment has been prepared by MEA to be used the business continuity management system as guideline in the implementation of MEA (BICM) according to ISO 22301 Societal Security continuity management and publicized to the - Business Continuity Management System. employees.

“MEA intends to implement Business Continuity Management System according to the International Standard on Societal Security - Business Continuity Management System (ISO 22301) and in line with the policy in enterprise risk management to enable the organization to proceed in normal business operation as soon as possible.”

MEA has established a structure in crisis 3. Supporting activities : Focus on the management consisting of a Committee on continuity of the supporting work such as the crisis management, a Working group on information technology system, internal- emergency management and a Working group external communication, etc. on incident management. The committee and Moreover, an annual rehearsal on the working groups are responsible for the implementation of the related plans has been operation, instruction and response in the conducted to increase confidence in the event of an incident which has an impact on ability to respond to the incident which has an the business operation of MEA at different impact on the business operation of MEA. The levels. The Business Continuity Management 2015 rehearsal in connection with the Plan (BCP) will be reviewed and revised to be Brestoration of the business continuity was consistent with the present situation and to an integrated attempt of the relevant be able to respond to the incident and create organizations on the relating plans to cope with continuity to the following 3 activities in the terrorism. core business of MEA: 1. Electricity distribution : Focus on remedying the situation to restore the power transmission as soon as possible. 2. Services : Focus on continuous ser- vice at the MEA Headquarters and MEA Districts as well as information service through the MEA Call Center.

70 Metropolitan Electricity Authority Internal Control MEA is a leading organization which gives of the assessment of the internal control system importance to the continuous development of and the management of the remaining risk of the the internal control with a focus on the units in the line and reporting to the MEA Governor. implementation of the internal control system The Internal Audit Unit is responsible for verifying and self assessment throughout the organization. the results of the evaluation of the self-assessment The internal control of MEA is based on the of the units and reporting to the MEA Inspection regulation of the State Audit Commission concerning Committee and the MEA Board of Directors the Standard for Internal Control, B.E. 2544 (2011, quarterly and annually and submitting the internal the Handbook on Risk Assessment and Internal control annual report to the State Audit Control, B.E. 2555 (2012) of the State Enterprise Commission. Policy Office, Ministry of Finance, and complies The MEA Inspection Committee has been with the Enterprise Risk Management Integrated entrusted by the MEA Board of Directors to Framework of the Committee of oversee the effectiveness of the internal control, Sponsoring Organizations of the Treadway checking the internal control of major working Commission (COSO 2013). The internal control procedures including the working procedures of system of MEA covers the working procedures of the information technology, monitoring the internal the main mission and the important supporting control system and self-assessment to comply mission. The objectives of the internal control is with the regulation in internal control of the State to ensure that the existing internal control system Audit Commission and 5 components of internal is adequate and effective for the operation which control of MEA comply with the Integrated includes the efficient use of resources and Framework of COSO 2013. As a result it was maintenance of assets, prevention and reduction necessary to improve the internal control system of errors, damages, loss and corruption, reliability to be consistent with the changing environment of the financial and non-financial reports as well and the occurring risk and to raise awareness of as compliance with the law and regulations of the all levels of employees in the significance of risk organization and other organizations which are assessment and internal control so that it will relevant to the operation. become a part of sustainable corporate culture. MEA has established an effective internal In 2015, it can be concluded that the internal control structure consisting of the following control system of MEA is sufficiently appropriate committees and sub-committee with the and effective for its operation. The 5 components monitoring and supervising role and responsibility. of the internal control which are control The Sub-committee on Good Corporate environment, risk assessment, control activities, Governance is responsible for establishing the information and communication and monitoring policy in overseeing the risk management of the are adequately in compliance with the internal internal control of MEA to comply with the control standard to achieve the internal control international standard. The Executive Committee objectives. The protection and care of the assets on Good Corporate Governance is responsible for and the use of resources have been carried out in considering the draft report of the internal control, an efficient manner, the financial and non-financial giving recommendation in improving the internal reports are accurate and reliable as well as the control of MEA to comply with the international compliance with law, rules and regulations related standard and the regulation of the State Audit to the MEA operation. No significant deficiency has Commission. The Risk Assessment Committee of been found in the internal control system. each line is responsible for considering the result Annual Report 2015 71 Internal Audit MEA has adopted the internal audit system and the targets for 2012 - 2016. In the preparation which is an essential mechanism in the Good of the annual internal audit plan, views and Corporate Governance. The internal audit is placed comments of the State Audit Commission, the under the responsibility of the Internal Audit Unit Inspection Committee, the executives, the which is an independent unit and has the mission stakeholders and the associated risks of the in building confidence and providing consultancy organization have been taken into consideration. with independence and impartiality in order to add The risk based audit will be conducted. The annual the value and support the business operation of strategic audit plan will be submitted to the MEA and the joint ventures to achieve their Inspection Committee for approval of the. Based objectives through the assessment of the on the approved strategic audit plan, the detailed effectiveness of the risk management procedure, audit plan will be prepared by considering the risk the internal control procedure and the good in the working procedure. The result of the internal corporate governance procedure as well as the audit will be reported to the units subjected to systemic compliance with the related rules and internal audit and the MEA executives for the regulations. internal control improvement. The Internal Audit The role and responsibility of the Internal Unit will monitor the improvement according to Audit Unit as written in the MEA Charter includes their recommendations on a monthly basis and the independence, status, mission and scope of report the result of the monitoring action to the work, duty and responsibility, relationship between Inspection Committee on a quarterly basis. the Internal Audit Unit and the State Audit To ensure the quality of the performance of Commission, etc. The above mentioned charter the internal audit, each step of the internal audit has been approved by the MEA Inspection will be verified. The assessment of the quality of Committee and the MEA Board of Directors. the internal audit performance is conducted among The Internal Audit Unit is responsible for the the auditing teams. Self-assessment is conducted report on the assessment of the sufficiency and by the employees and the executive of the Internal effectiveness of the internal control system, risk Audit Unit. Moreover, the performance of the management system and the good corporate internal audit is assessed by the audited units, the governance and giving advice and recommendations MEA executives and the Inspection Committee to for improvement and revision to the executives ensure that the performance of the internal audit and different units. The Inspection Committee is is efficient and effective with the availability of the responsible for supervising the administration of plan for development and improvement. the Internal Audit Unit and the performance of the In 2015, the Internal Audit Unit has organized auditors based on the professional standards. training in various related areas to increase skill and The internal audit of MEA has been performance of internal auditors such as strategic performed in accordance with the international internal audit, integrated internal audit, internal standard for the internal audit profession, the audit regarding corruption, new approach in internal handbook in performing the internal audit of the control: COSO 2013 and the training under the state enterprises, regulations of the State Audit project “Consultancy for internal audit Commission concerning the role of internal auditors development and improvement” conducted by a and code of ethics of professional internal auditors. consultant from the Faculty of Commerce and The strategic audit plan has been prepared in Accountancy, Chulalongkorn University, etc. compliance with the organizational strategic plan 72 การไฟฟ้านครหลวงMetropolitan Electricity Authority Good Corporate Governance

The MEA Board of Directors recognizes readiness of MEA to become a leading the importance of the performing business with organization in electricity system service of the transparency, efficiency and accountability to ASEAN Economic Community (AEC). all stakeholders based on the principle and MEA’s good corporate governance guidelines in good corporate governance of the structure Office of State Enterprise Policy Commission The structure of good corporate (SEPO) and the Statement of Direction (SOD) governance of MEA comprises 4 levels with the as well as the commitment of MEA to develop MEA Board of Directors at the top level followed its good corporate governance to the respectively by the Sub-committee on good international level by adopting the ASEAN corporate governance, the Good Corporate Corporate Governance Scorecard (ASEAN CG Governance Executive Committee and Scorecard) as a framework in the development. representatives of MEA employees of all groups It is hopeful that the implementation of good and all levels. corporate governance will contribute to the

Ministry of Finance Ministry of Interior Ministry of Energy

The MEA Board of Directors Sub-Committee On Good The MEA Audit Committee Corporate Governance Governor Deputy Governor (Social and Sustainability) Internal Audit Department The Good Corporate Risk Management Governance Executive Department Committee

Heads of Each Unit

Representative of Good Corporate Governance of Each Unit (GCG Agent)

Annual Report 2015 73 Responsibilities of the Board of the implementation of good corporate Directors governance to the Sub-committee on good 1. The Board of Directors is responsible corporate governance, checking the for establishing policy in good corporate appropriateness of the good corporate governance, monitoring and evaluating the governance plan and reporting the result of the result of the implementation of good corporate implementation of good corporate governance, governance based on the approved annual CSR and internal audit system to the Sub- implementation plan and action plan of good committee on Good Corporate Governance corporate governance. and the MEA Board of Directors on a quarterly 2. The Sub-committee on good corporate basis. governance is responsible for establishing 4. The Heads of each unit and policy and promotion measures, recommending representatives of good corporate governance the implementation of good corporate of each unit are responsible for communicating governance based on the policy framework with their staff on good corporate governance, given by the MEA Board of Directors, scrutinizing promoting correct understanding, publicizing and reviewing the annual implementation plan the activities and receiving comments and and action plan in good corporate governance, suggestion to promote the activity on good master plan in corporate social responsibility corporate governance of their respective units (CSR) and annual action plan on CSR, as well as well as participating in the preparation of as monitoring and evaluation. the annual action plan on good corporate 3. The Good Corporate Governance governance. Executive Committee is responsible for MEA has established the following establishing the operational framework in policy on good corporate governance in line accordance with the policy, considering the with its vision and mission to be used as a draft policy in promotion and recommending framework in the operation : MEA’s Policy in good corporate governance 1. The MEA good corporate governance 4. Attempt shall be made by MEA to structure shall be established and raise awareness of its employees in performing reviewed, as appropriate. their task based on integrity and ethics and to 2. The MEA Board of Directors, MEA promote involvement of employees of all Governor and the executives of all levels groups and levels. shall be model leaders in ethics and integrity. 5. Campaigns, and promotion of 3. MEA shall operate and manage correct understanding and public relations in its business based on the principle of integrity good corporate governance shall be conducted. with accountability for all stakeholders taking into account the society and environment.

74 Metropolitan Electricity Authority The MEA handbook on good corporate regulations or notifications of the organization governance has been prepared and publicized as well as the whistle blowing as an essential on the internet and intranet for use of the tool in preventing wrong behavior and important executives and employees as a guideline in mechanism in reducing the problem of the implementation. The handbook has been misconduct and bribery. Such complaint improved to allow relevant persons to check channel is easily accessible and safe as the and review annually for its appropriateness, name of whistle blowers will be kept being up-to date and in line with the current confidential. To the accused, the investigation situation. procedure is conducted with justice with clear Anti-corruption policy and identifiable evidence as well as the written In showing its determination to prevent records of investigation. and fight against corruption, MEA has prepared Equity and MEA‘s role to the the anti-corruption policy and a guideline in stakeholders adopting the anti-corruption policy. It is the Recognizing the importance of the responsibility of the executives and employees stakeholders, MEA intends to strengthen the to cooperate in following strictly the anti– cooperation between MEA and the stakeholders corruption policy as well as the policy in to achieve the stability in its business. To this whistle blowing, disclosure of information and end, MEA has prepared the code of conduct provision of communication channels, in the operation to ensure the stakeholders promotion of understanding, awareness and that MEA will treat the stakeholders with value of anti–corruption. different right and expectation with equity and Whistle blowing policy fairness. MEA has established the whistle blowing policy to show its intention to carry out the mission with transparency, honesty, fairness, with social responsibility and commitment to the good corporate governance. The MEA Board of Directors, Committees and Sub-committees as well as the executives and employees are committed to perform their job based on ethics and code of conduct with emphasis on anti-corruption either direct or indirect which may take place inside and outside the organization. Any violation of the ethical conduct in business operation will not be compromised. MEA has provided a channel for all stakeholders to make complaint and inform MEA of illegal behavior or violation of the

Annual Report 2015 75 Code of conduct for the customers and the Code of conduct for the trade partners and/ general public or creditors Providing electricity distribution system Operating the business based on the which is reliable, safe, with the quality rules of fair and honest competition; conduct- complying with the international standards in ing procurement on the basis of transparency sufficient amount for the demand of the and fairness; complying strictly with the trade customers and the general public; providing conditions of the trade partners and creditors related service at the reasonable price with with fairness. In the event that the conditions the service quality in accordance with the cannot be fulfilled, the trade partners/creditors will be notified in advance so as to consider standard, fulfilling strictly all service conditions, jointly solution to the problem. maintaining consistently the quality of service Code of conduct for the society and the according to the standard; disclosure of environment complete, accurate and timely information Promoting the efficient use of energy relating service, electricity fee and other service and energy conservation; supporting and fees; providing a channel for complaints and promoting regularly the activity which will comments concerning electricity or service to contribute to the society and the environment; facilitate the customers and the general public providing knowledge concerning safety life and in using the service; giving importance to the property in the use of electricity; raising confidential measure for the customers’ awareness in social and environmental information without exploiting the customers’ responsibility in the all levels of employees; information for the benefit of the organization complying strictly with the law and regulations or any relevant persons. and overseeing the compliance with the law Code of conduct for the MEA employees and regulations of the employees; supporting Providing appropriate and fair and promoting the employees to uphold the compensation and fringe benefit to the em- democratic system under the monarchy. ployees, Evaluating the performance of the Code of conduct for the state owner employees on the basis of their knowledge, (government) competence and appropriateness; punishment MEA has a policy to operate its business is made on the basis of transparency and jus- for the benefit of the people and responds to tice; taking care of the occupational health and the government policy. MEA operates its safety of the employees to ensure their safety business with honesty, transparency and effi- at work; giving importance to the competency ciency and supports the activity which contributes to the economic and social development of the employees. development, in avoidance of the activity which may create conflict of interest.

76 Metropolitan Electricity Authority Information disclosure and transparency Conflict of interest To provide all groups of stakeholders Conflict of interest refers to the conflict with the opportunity to be informed of the between the personal interest and the interest business operation of MEA, information of MEA, either directly or indirectly. The guideline channels are available through the Thai and in reporting the conflict of interest is as follows : English annual report and MEA website as The following action or occurrence follows : is considered a conflict of interest : 1. Disclosure of the financial and non- • The person, member of the family or financial information with sufficient, relative of the person is a manager, partner or reliable, current and transparent content of shareholder of exceeding 5 percent of the important issues. Those who need information total share in the business which is a contracting should be able to obtain information or to party of MEA access the source of information conveniently • To receive a gift from other person and in the time of need. which is not a relative or member of the 2. The report on the responsibility of family which is not a normal practice or the the MEA Board of Directors for the financial gift has the price or value higher than the rate report has been prepared and attached to the prescribed in the notification of the National report of the auditor in the annual report. Anti-corruption Commission (NACC) 3. Disclosure of the performance of the • To allow or connive a member of the MEA Board of Directors, Committees and family to receive a gift of the price or of the Sub-committees under the Board of Directors value higher than the rate prescribed in the and meeting attendance of the individual notification of the National Anti-corruption member. Commission(NACC) from the inferior or anyone 4. Disclosure of remuneration of each who is involved in his own duty for the member of the MEA Board of Directors, advantage of the giver Committees and Sub-committees under the • To offer a gift of the price or of the Board of Directors. value higher than the rate prescribed in the 5. Disclosure of the policy regarding notiwfication of the National Anti-corruption payment of compensation to the MEA Board Commission (NACC) to the superior or his of Directors, MEA Governor and Deputy family member Governors, including the type and form of Promotion of good corporate governance payment. MEA has prepared the implementation 6. Disclosure of the policy concerning plan for the good corporate governance to the social and environmental responsibility and promote the importance in adopting the good the result of the policy adoption. corporate governance among the employees. 7. Report on the policy in good In 2015, achievements in the implementation corporate governance and result of the policy of the good corporate governance are as adoption. follows:

Annual Report 2015 77 1. Development of the good corporate • Training in good corporate governance governance and anti-corruption system and anti-corruption system as a regular course • Conducting the risk management to the target groups of 776 employees of concerning anti-corruption based on the result different positions as follows: of risk assessment in 2014 - Administraor: 78 • Reviewing and revising rules, - Middle Administrator: 27 regulations, orders, policy and procedures - Executives: 53 concerning good corporate governance and - CG agents: 57 anti-corruption system to comply with the - Group of mechanics: 227 international standards - Group of employees promoted • Reviewing and revising the internal to a higher level or position: 103 control system and the internal audit of MEA - Group of employees involving • Establishing the Anti-corruption Center anti-corruption: 75 • Preparing the whistle blowing system - New employees: 156 2. Organizing internal and external • Learning code of conduct through campaigns, communication and public video presentation: 268 employees relations • Attending e-learning on code of • Revising the handbook in good conduct: 4,178 employees corporate governance and collation of code of 4. Evaluation of the result of the conduct for MEA employees of 2015 implementation of good corporate • Carrying out campaigns, communication governance and anti-corruption system and public relations through various channels through the following projects to promote involvement of the internal and • Project on development of the external stakeholders system and building confidence in transparency • Organizing the “GCG Day 2015” on of the governmental agencies the theme “Virtue is in your DNA” • Project on integrity and transparency • Participating in the “National Anti- assessment of the Office of the National corruption Day 2015” under the concept “Active Anti-corruption Commission citizen, power of the people to fight against • Project on the National Anti-corruption corruption” Commission (NACC) of the Office of the National • Participating in the walk rally against Anti-corruption Commission corruption on the “World Anti- corruption Day 2015” 5. Preparation of reports • From the evaluation of the awareness • Preparation of report on the of the employees in good corporate governance implementation of the plan in the good and anti-corruption, 81.4 percent of the corporate governance and transparency in the employees are aware of good corporate operation of MEA in 2015 governance and anti-corruption. • Preparation of the framework of the 3. Organizing training and dissemination master plan in sustainability promotion of MEA of knowledge on good corporate governance (2016-2021) and anti-corruption 78 Metropolitan Electricity Authority Structure and responsibility of the Board of Directors, Committees and Sub-committees

The Ministry of Interior

Board of Director General Piroon Palponsong Chairman

Governor Mr. Somchai Roadrungwasinkul

The MEA Audit Relation Affairs Good Corporate Governance Corporate Plan Sub-Committee on Risk Sub-Committee on Human Committee Committee Sub-Committee Sub-Committee Management Plan Assessment Resource Management Assistant Professor General Teerachai Nakwanich Air Chief Marshal Anon Jarayapant Miss Sopawadee Lertmanaschai Sanan Visuthisakchai Mr. Wittaya Chaisuwan Mr. Ronnachit Rattan Chairman Chairman Chairman Chairman Chairman Chairman

Annual Report2015 Sub-Committee on Information Sub-Committee on Governor’s Sub-Committee on Procurement and Contracting Sub-Committene on Technology and Plan and Performance Consideration of Appeals Sub-Committee MEA’s Law and Regulatio Communication System Assessment Police Lieutenant General Air Chief Marshal Associate Professor Professor Boonserm Kijsirikul Mr. Grisada Boonrach Thangai Prasjaksattru Anon Jarayapant Peerawut Suwanjun Chairman Chairman Chairman Chairman Chairman

Remark : Chairman of the Board of Directors retired on 10 October 2015 as being 65 years of age As of 31 December 2015 79 Composition of the Board of Directors and its independence Governance, there is a clear borderline MEA Board of Directors comprises not between the responsibility of the MEA Board more than 15 members including the chairman. of Directors and the MEA executives. The Board The MEA Governor is an ex-officio member. of Directors is responsible for setting policy of In 2015, the MEA Board of Directors MEA, overseeing the MEA operation, supervising chaired by General Piroon Palponsong over the administration of the MEA executives consisted of 15 members. Among these members, according to the given policy and the legal 14 members or 93.33 percent of the total provisions, monitoring the operation of the members were independent directors. principal work consistently both in terms of All members of the MEA Board of the achievements of the organization and the Directors have disclosed their information work performance of the MEA Governor, concerning conflict of interest in all occasion monitoring the operation pertaining the such as on an annual basis, in the event of accounting system, financial report, internal new appointment and in the event of having control system, internal audit, risk management, conflict of interest occurred during the year. good corporate governance and social This is to ensure the stakeholders of the responsibility, etc. through the monthly report, independence of the MEA Board of Directors quarterly report and annual report. in performing their duty. The MEA Board of Directors has appointed the following 11 committees and Responsibility sub-committees to be responsible for According to the Metropolitan Electricity supervising and scrutinizing important work or Authority Act, B.E. 2501 (1958) and its the work which requires expertise in specific area. amendments together with the Good Corporate

1. MEA Audit Committee consists of : 1. General Teerachai Nakwanich Chairman 2. Mrs. Dayana Bunnag Director 3. Mr. Somchai Sujjapongse Director 4. Director of Internal Audit Department Secretary Responsibility Supervising the internal audit, giving recommendations to the Internal Audit Unit on the administration and performance according to the professional standards, Verifying the implementation of good corporate governance, risk management and compliance with the rules and regulations, orders, resolutions of the Cabinet and policy of MEA, Verifying the reliability of the financial and non-financial reports of MEA, Verifying the sufficiency and reliability of the internal control system and the internal control system of the information technology system, Reporting on the items which may involve the issue of conflict of interest, Preparing the report on the supervision of the MEA Audit Committee, Performing other matters as assigned by the Board of Directors.

80 Metropolitan Electricity Authority 2. Committee on MEA Corporate Relations consists of : 1. Air Chief Marshal Anon Jarayapant Chairman 2. Deputy Governor (Information and Director Communication Technology) 3. Deputy Governor (Finance) Director 4. Deputy Governor (Operations) Director 5. Deputy Governor (Strategy and Director Organization Development) 6. Deputy Governor (Corporate) Director 7. Deputy Governor (Business) Director 8. Deputy Governor (Distribution System Service) Director 9. Deputy Governor (Technology and Director Material Management) 10. Deputy Governor (Social and Sustainability) Director 11. Mr. Pian Yongnu Director 12. Mr. Yuthapong Sa-Adbua Director 13. Mr. Sanit Saiparsert Director 14. PO1 Pipat Wongrit Director 15. Mr. Prasong Bucha Director 16. Mr. Wattana Sopsamai Director 17. Mr. Thawatchai Intratat Director 18. Mr. Prapong Tongtawee Director 19. นายจรัญ แทนเจ็ดริ้ว Director 20. Director of Human Resources Department Secretary Responsibility Giving views and comments on the improvement of the efficiency in the operation of MEA, Promoting and developing the labor relations, improving rules and regulations concerning the working and hiring conditions. 3. Sub-committee on Good Corporate Governance Consists of : 1. Miss Sopavadee Lertmanuschai Chairman 2. Mr. Wittaya Chaisuwan Sub-committee 3. Assistant Professor Pissanu Stitsart Sub-committee 4. Mr. Somchai Roadrungwasinkul Sub-committee Governor 5. Deputy Governor (Social and Sustainability) Sub-committee and Secretary

Annual Report 2015 81 6. Director of Risk Management Department Assistant Secretary Responsibility Setting policy and guideline in promoting Good Corporate Governance and recommending the implementation of Good Corporate Governance, Scrutinizing and verifying the plan on Good Corporate Governance, master plan and action plan on social responsibility, Monitoring and evaluating the result of the implementation of good corporate governance and social and environmental responsibility.

4. Sub-committee on MEA Corporate Plan consists of : 1. Assistant Professor Sanan Visuthisakchai Chairman 2. Miss Sopavadee Lertmanuschai Sub-committee 3. Mr. Wittaya Chaisuwan Sub-committee 4. Associate Professor Peerawut Suwanjun Sub-committee 5. Mr. Somchai Roadrungwasinkul Sub-committee Governor 6. Deputy Governor (Finance) Sub-committee 7. Deputy Governor (Strategy and Organization Development) Sub-committee and Secretary 8. Director of Strategic Planning Department Assistant Secretary Responsibility Considering and scrutinizing the details of the policy and corporate plan, investment plan, plans/projects, action plans, procurement plan and annual budget, Reviewing and improving the plans to be current with the time, Monitoring the result of the implementation of the plans and the expense from the budget according to the investment plan, plans/projects and annual budget.

5. Sub-committee on Risk Management Plan consists of : 1. Mr. Wittaya Chaisuwan Chairman 2. Police Lieutenant General Thangai Prasjaksattru Sub-committee 3. Mr. Grisada Boonrach Sub-committee 4. Assistant Professor Pissanu Stitsart Sub-committee 5. Deputy Governor (Information and Sub-committee Communication Technology) 6. Deputy Governor (Social and Sustainability) Sub-committee and Secretary 7. Director of Risk Management Department Assistant Secretary Responsibility Setting policy, Considering and scrutinizing the detail of the organizational strategy in risk and preparation of the plan in risk management, Monitoring the result of the implementation of the risk management plan and reporting to the Board of Directors. 82 Metropolitan Electricity Authority 6. Sub-committee on Human Resource Management consists of : 1. Mr. Ronnachit Rattanaramik Chairman 2. Professor Boonserm Kijsirikul Sub-committee 3. Assistant Professor Sanan Visuthisakchai Sub-committee 4. Mr. Somchai Roadrungwasinkul Sub-committee Governor 5. Deputy Governor (Business) Sub-committee 6. Mrs. Yostorn Chinrungruang Secretary Assistant Governor 7. Director of Human Resources Department Assistant Secretary Responsibility Considering the work in human resources management, Scrutinizing and verifying the master plan in human resources management and reporting to the Board of Directors.

7. Sub-committee on Appeal consists of : 1. Police Lieutenant General Thangai Prasjaksattru Chairman 2. Mr. Ronnachit Rattanaramik Sub-committee 3. Mr. Grisada Boonrach Sub-committee 4. Deputy Governor (Operation) Sub-committee

5. Deputy Governor (Distribution System Service) Sub-committee and Secretary 6. Director of Legal Department Assistant Secretary Responsibility Considering appeals of the disciplinary punishment of the MEA employees for approval of the Board of Directors.

8. Sub-committee on Procurement consists of : 1. Air Chief Marshal Anon Jarayapant Chairman 2. Assistant Professor Sanan Visuthisakchai Sub-committee 3. Associate Professor Peerawut Suwanjun Sub-committee 4. Mr. Somchai Roadrungwasinkul Sub-committee Governor 5. Deputy Governor (Corporate) Sub-committee 6. Deputy Governor Sub-committee and Secretary (Technology and Material Management) 7. Mr. Kirapat Jiamset Assistant Secretary Assistant Governor Annual Report 2015 83 Responsibility Overseeing the procurement to comply with the rules and regulations of MEA based on the policy and plan in procurement approved by the Board of Directors.

9. Sub-committee on Information and Communication Technology Management consists of : 1. Associate Professor Peerawut Suwanjun Chairman 2. Professor Boonserm Kijsirikul Sub-committee 3. Assistant Professor Pissanu Stitsart Sub-committee 4. Deputy Governor (Distribution System Service) Sub-committee 5. Deputy Governor (Information and Sub-committee and Secretary Communication Technology) 6. Director of Technological Assets Planning Assistant Secretary and Management Department Responsibility Recommending the introduction of Information and Communication Technology in the work of MEA for the maximum benefit, Considering and verifying the master plan to be current with the situation, Reporting the result of the work to the MEA Board of Directors for approval, Monitoring the work in the area of information technology and its use.

10. Sub-committee on Planning and Assessment of Performance of MEA Governor consists of : 1 Professor Boonserm Kijsirikul Chairman 2. Air Chief Marshal Anon Jarayapant Sub-committee 3. Mr.Ronnachit Rattanaramik Sub-committee 4. Mrs. Marisa Wongtirawat Secretary Deputy Governor (Strategy and Organization Development) 5. Mr. Kirapat Jiamset Assistant Secretary Assistant Governor Responsibility Considering the planning of the Governor based on the hiring contract, Recommending the appropriate key performance index in accordance with the principles and specifying the evaluation criteria, discussing with the MEA Governor for mutual understanding on the evaluation method prior to the actual evaluation, Monitoring the working performance of the MEA Governor based on the specified criteria, Evaluating the working performance of the MEA Governor and

84 Metropolitan Electricity Authority reporting to the Board of Directors of the result of the evaluation of the working performance including problems and obstacles and solution to the problem concerning the evaluation, Calculating the constant and variable compensation of the MEA Governor and reporting to the Board of Directors for endorsement.

11. Sub-committee on Law, rules and regulations of MEA consists of : 1. Mr. Grisada Boonrach Chairman 2. Police Lieutenant General Thangai Prasjaksattru Sub-committee 3. Deputy Governor (Corporate) Sub-committee and Secretary 4. Director of Legal Department Assistant Secretary Responsibility Considering and scrutinizing the problem concerning legal provisions, amendment and revision of the rules and regulations relating the business operation of MEA, Reporting to the Board of Directors for endorsement and approval, Performing other matters as assigned by MEA Board of Directors. The Committees and Sub-committees under the Board of Directors have performed their task with efficiency in compliance with the charter of The Committees and Sub-committees which is an essential mechanism in the Good Corporate Governance. Promotion of knowledge for the Board of Directors, Committees and Sub-committees MEA has been promoting the development of knowledge and competency of the MEA Board of Directors, Committees and Sub-committees. The plan for knowledge and competency development has been prepared and requested for approval of the Board of Directors in advance. In 2015, the following local training, visit and study visit in the area of energy and electricity distribution system has been organized for the MEA committees. Moreover, promotion of knowledge concerning the role and responsibility of the regulatory body of MEA has been organized for the Board of Directors. 1. Local training course “Director Certification Program” organized by Thai Institute of Directors Association. 2. Oversea study visit, i.e., study visit in energy and electricity distribution system in Japan. Report of the Committee on nomination of MEA Board of Directors The Ministry of Interior has the authority to nominate candidates for appointment as members of the MEA Board of Directors. The names of the nominees will be submitted by the Minister of Interior to the cabinet for approval and appointment.

Annual Report 2015 85 Meetings and Remunerations Meetings of Board of Directors, in the capacity of the member of the Audit Committees and Sub-Committees Committee in the same amount of the monthly The MEA Board of Directors is scheduled meeting allowance (10,000 Baht per month). to meet monthly, normally once a month on • Meeting allowance Wednesday of the week before the last week of - Member of the MEA Board of the month. Additional special meeting may be Directors who attends the meeting not more than held as necessary. In 2015, the MEA Board of once a month receives a meeting allowance of Directors had 13 meetings. The Committees and 10,000 Baht for each meeting. Sub-Committees under the Board of Directors had - Members of MEA Board of Directors regular meetings as mentioned in the Annual who have been appointed members of the Report. Members participated in the meetings Committees/Sub-committees/Working Groups consistently and regularly. under the Board of Directors, receive the meeting allowance of 10,000 Baht for each meeting (only Remunerations of the Board of for those who attended the meeting). Each Directors, Committees and member shall receive per month the meeting Sub-Committees allowance of not more than 2 committees, each The MEA Board of Directors, Committees of which has one meeting per month. and Sub-Committees received remuneration and - Member of the Committee on meeting allowance according to the Cabinet Corporate Relations who attends the meeting, resolution dated 2 July 2013 except for the Audit receives the meeting allowance of 3,000 Baht for Committee of which the remuneration is based each meeting. on the rate contained in the regulation of the - Chairman of the committee Ministry of Finance regarding the Audit Committee receives the meeting allowance of the rate 25 and the Internal Audit Committee of State percent higher than other members (12,500 Baht). Enterprises, B.E. 2555 (2012). The Vice-chairman receives the meeting allowance of the rate 12.5 percent higher than other 1. Remuneration and meeting members (11,250 Baht). All members will be re- allowance sponsible for their income tax. • Remuneration - Member of the Board of Directors 2. Bonus receives remuneration of 10,000 Baht per month. The bonus is paid by MEA to members of For the member who has not been in service in the Board of Directors, Committees and Sub- full duration of the month, the monthly Committees in accordance with the letter of State remuneration will be calculated based on the Enterprise Policy Office, Ministry of Finance, service duration. The remuneration of the reference MF 0804.3/C139 dated 5 September chairman is double of the other members (20,000 2013 concerning the motive in financial Baht per month). compensation based on the performance - Member of the Audit Committee evaluation system of state enterprises. The bonus receives, in addition to the remuneration of the to be paid to the members of Board of Directors, member of the Board of Directors, remuneration Committees and Sub-Committees based on the performance evaluation as follows : 86 Metropolitan Electricity Authority Result of the performance Amount of bonus allocated evaluation (Score) (Baht/person/year) 5.00 (Excellent) Base + 100% of the base 4.50 Base + 75% of the base 4.00 (Very good) Base + 50% of the base 3.50 Base + 25% of the base 3.00 (Good) Base 2.50 Base - 25% of the base 2.00 (Fair) Base - 50% of the base 1.50 None 1.00 (To be improved) None The base rate in bonus allocation is considered from the profit allocated for the bonus as follows: Profit for bonus Amount of bonus allocated (Million Baht) (Baht/person/year) Not exceeding 100 3%of the profit for bonus but not more than 60,000 100 - 300 65,000 More than 300 - 500 70,000 More than 500 -700 75,000 More than 700 - 1,000 80,000 More than 1,000 - 2,000 90,000 More than 2,000 - 5,000 100,000 More than 5,000 - 8,000 110,000 More than 8,000 - 11,000 120,000 More than 11,000 - 13,000 130,000 The profit increases every range of 2,000 10,000 extra The chairman and vice-chairman receive the bonus of 25 percent and 12.5 percent respectively more than other members. In any fiscal year of the state enterprise which the committee members are absent from the meetings more than 3 months, the bonus will be paid in accordance with the following principles : 1) More than 3 months but not exceeding 6 months, the bonus will be reduced 25 percent 2) More than 6 months but not exceeding 9 months, the bonus will be reduced 50 percent 3) More than 9 months, the bonus will be reduced 75 percent The committee members will be responsible for their income tax.

Annual Report 2015 87 Remuneration for Board of Directors, Committees and Sub-Committees Remuneration in 2015 Remuneration for the MEA Board of Directors, Committees and Sub-Committees in the Fiscal year of 2015 of the total amount of 6,748,352.43 Baht consists of meeting allowances, remuneration and bonus which is the financial benefits paid to the committee members in accordance with the regulation of the Ministry of Finance. In 2015, the total meeting allowances of 2,928,000.00 Baht was paid by MEA. Regarding bonus, based on the performance in 2014 (additional) and 2015, the bonus of the total amount of 2,082,239.51 Baht will be paid to the Board of Directors holding office during 2014 and 2015 including remuneration of the total amount of 1,738,112.92 Baht detailed as follows : Remuneration for the MEA Board of Directors, Committees and Sub-committees in 2015 Unit : Baht Meeting allowance Members of Board of Directors, Bonus in 2014 No. Position Remuneration Bonus in 2015 Total Committees, Committee Sub-Committee (additional) Sub - Committees 1 General Piroon Palponsong Chairman 100,000.00 - 135,483.87 92,170.70 - 327,654.57 (Independent Director) 2 Air Chief Marshal Anon Jarayapant Independent Director 97,500.00 225,000.00 94,838.71 102,741.94 23,227.60 543,308.25 3 General Teerachai Nakwanich Independent Director 30,000.00 - 208,145.16 25,685.49 11,613.80 275,444.45 4 Mrs. Dayana Bunnag Independent Director 90,000.00 - 185,483.87 102,741.94 23,227.60 401,453.41 5 Miss Sopawadee Lertmanaschai Independent Director 90,000.00 92,500.00 94,838.71 102,741.94 23,227.60 403,308.25 6 Mr. Ronnachit Rattanaramik Independent Director 100,000.00 165,000.00 94,838.71 102,741.94 23,227.60 485,808.25 7 Professor Boonserm Kijsirikul Independent Director 90,000.00 202,500.00 94,838.71 102,741.94 23,227.60 513,308.25 8 Assistant Professor Sanan Visuthisakchai Independent Director 90,000.00 197,500.00 94,838.71 102,741.94 - 485,080.65 9 Police Lieutenant General Thangai Prasjaksattru Independent Director 90,000.00 62,500.00 94,838.71 102,741.94 - 350,080.65 10 Mr. Wittaya Chaisuwan Independent Director 90,000.00 132,500.00 94,838.71 102,741.94 - 420,080.65 11 Mr. Grisada Boonrach Independent Director 50,000.00 22,500.00 94,838.71 51,370.97 - 218,709.68 12 Associate Professor Peerawut Suwanjun Independent Director 100,000.00 202,500.00 94,838.71 102,741.94 - 500,080.65 13 Assistant Professor Pissanu Stitsart Independent Director 100,000.00 160,000.00 94,838.71 102,741.94 - 457,580.65 14 Mr. Somchai Sujjapongse Independent Director 40,000.00 - 132,580.66 37,217.74 - 209,798.40 15 Mr. Somchai Roadrungwasinkul Independent Director 100,000.00 160,000.00 130,000.00 102,741.94 38,819.44 531,561.38 16 - 30,000.00 - - - 30,000.00 17 - 18,000.00 - - - 18,000.00 18 - - (419.35) - 59,222.22 58,802.87 19 - - (419.35) - 33,548.38 33,129.03 20 - - (419.35) - - (419.35) 21 - - (419.35) - - (419.35) 22 - - (290.34) - - (290.34) 23 - - - - 74,027.77 74,027.77 24 - - - - 47,602.60 47,602.60 25 - - - - 59,222.22 59,222.22 26 - - - - 33,723.12 33,723.12 27 - - - - 25,554.43 25,554.43 28 - - - - 33,548.39 33,548.39 29 - - - - 33,548.39 33,548.39 30 - - - - 33,548.39 33,548.39 31 - - - - 33,548.39 33,548.39 32 - - - - 33,548.39 33,548.39 33 - - - - 4,717.73 4,717.73 34 - - - - 23,227.60 23,227.60 35 - - - - 23,227.60 23,227.60 36 - - - - 23,227.60 23,227.60 37 - - - - 4,018.81 4,018.81 Total 1,257,500.00 1,670,500.00 1,738,112.92 1,336,606.24 745,633.27 6,748,352.43 Remark : - No. 1 Appointed as chairman of the MEA Board of Directors by the resolution of the Cabinet from 17 March 2015 and retired on 10 October 2015 as having reached 65 years of age. - Nos. 2 - 15 Appointed as members of the MEA Board of Directors by the resolution of the Cabinet from 17 March 2015 up to present - Nos.16 - 17 Appointed as advisors of the Sub-committees on 30 March 2015 and resigned on 28 October 2015 - Nos. 18, 23 - 25 Having completed the terms of office on 28 November 2014 - Nos. 19, 28 - 33 Resigned, effective on 7 July 2014 - Nos. 20 - 21 Resigned, effective on 19 August 2013 - No. 22 Resigned, effective on 23 August 2013 - No. 26 Resigned, effective on 8 July 2014 - No. 27 Resigned, effective on 10 July 2013 - Nos. 34 - 36 Having completed the terms of office on 28 November 2014 - No. 37 Having completed the terms of office as MEA Governor on 24 January 2014 88 Metropolitan Electricity Authority Meeting attendance of the members of MEA Committees and Sub-committees in 2015

Name The MEA Audit Committee The Committee on MEA Corporate Relations The Sub-committee on Good Corporate Governance The Sub-committee on MEA Corporate Plan The Sub-committee on Risk Management Plan The Sub-committee on Human Resource Development The Sub-committee on Appeal The Sub-committee on Procurement and Communication System The Sub-committee on Information Technology The Sub-committee on Planning and Performance assessment of MEA Governor The Sub-committee on MEA Law and Regulations

1. Air Chief Marshal Anon Jarayapant - 9/9 - - - - - 9/9 - 7/9 - 2. General Teerachai Nakwanich 2/4 ------3. Mrs. Dayana Bunnag 4/4 ------4. Miss Sopavadee Lertmanuschai - - 5/5 3/7 ------5. Mr. Ronnachit Rattanaramik - - - - - 6/6 1/1 - - 9/9 - 6. Professor Boonserm Kijsirikul - - - - - 5/6 - - 8/9 9/9 - 7. Assistant Professor Sanan Visuthisakchai - - - 7/7 - 5/6 - 9/9 - - - 8. Police Lieutenant General Thangai Prasjaksattru - - - - 4/5 - 1/1 - - - 1/1 9. Mr. Wittaya Chaisuwan - - 4/5 6/7 5/5 ------10. Mr. Grisada Boonrach - - - - 0/5 - 1/1 - - - 1/1 11. Associate Professor Peerawut Suwanjun - - - 7/7 - - - 8/9 9/9 - - 12. Assistant Professor Pissanu Stitsart - - 5/5 - 5/5 - - - 9/9 - - 13. Mr. Somchai Sujjapongse 2/4 ------14. Mr. Somchai Roadrungwasinkul - - 5/5 5/7 - 6/6 - 7/9 - - -

Remark : - No. 1 - 12 Appointed as members of the Board of Directors by the resolution of the Cabinet from 17 March 2015 to present - No. 13 Resigned, effective on 12 October 2015 - No. 14 Appointed as MEA Governor by the Board of Directors and has become ex-officio member of Board of Directors from 24 April 2014 to present

Annual Report 2015 89 Meeting attendance of the members of MEA Board of Directors in 2015 Year 2015 No. No. No. No. No. No. No. No. No. No. No. No. No. No. No. Name 648 649 650 651 652 653 654 655 656 657 658 659 660 Total 30 22 15 20 17 8 22 19 23 7 28 25 23 Jan Feb Mar Apr May May Jun Jul Jul Aug Sep Oct Oct Nov Dec 1. General Piroon Palponsong ✓ ✓ X ✓ ✓ ✓ ✓ ✓ ✓ ✓ - - - 9/10 2. Air Chief Marshal Anon Jarayapant X ✓ X ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ 11/13 3. General Teerachai Nakwanich X ✓ X X ✓ ✓ X X X X X X X 3/13 4. Mrs. Dayana Bunnag ✓ ✓ ✓ X ✓ ✓ ✓ ✓ ✓ ✓ ✓ X ✓ 11/13 5. Miss Sopavadee Lertmanuschai ✓ ✓ ✓ ✓ ✓ ✓ ✓ X ✓ ✓ ✓ ✓ ✓ 12/13 6. Mr. Ronnachit Rattanaramik ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ 13/13 7. Professor Boonserm Kijsirikul ✓ X ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ 12/13 8. Assistant Professor Sanan Visuthisakchai ✓ ✓ ✓ ✓ X ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ 12/13 9. Police Lieutenant General X ✓ ✓ ✓ ✓ X ✓ ✓ ✓ ✓ ✓ ✓ ✓ 11/13 Thangai Prasjaksattru 10. Mr. Wittaya Chaisuwan ✓ ✓ X ✓ ✓ ✓ ✓ ✓ ✓ X X ✓ ✓ 10/13 11. Mr. Grisada Boonrach X ✓ ✓ X X ✓ X ✓ X ✓ X X X 5/13 12. Associate Professor Peerawut Suwanjun ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ 13/13 13. Assistant Professor Pissanu Stitsart ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ 13/13 14. Mr. Somchai Sujjapongse ✓ ✓ X X X X ✓ ✓ X X - - - 4/9 15. Mr. Somchai Roadrungwasinkul ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ 13/13

Remark : In 2015 (12 months), the MEA Board of Directors held 13 meetings - No. 1 Appointed as Chairman of the MEA Board of Directors by the resolution of the Cabinet from 17 March 2015 and retired on 10 October 2015 as being 65 years of age - No. 2 - 13 Appointed as members of the MEA Board of Directors by the resolution of the Cabinet from 17 March 2015 to present - No. 14 Resigned, effective on 12 October 2015 - No. 15 Appointed as MEA Governor by the MEA Board of Directors and has become an ex-officio member of the Board of Directors from 24 April 2014 to present Remuneration for the MEA Executives Increase( decrease ) from the Remuneration 2015 2014 2013 preceding year Million Baht Percent Remuneration 32.94 27.59 32.20 5.35 19.39 Benefits 0.59 0.55 0.90 0.04 7.27

Remark : Financial and non-financial compensation for the MEA Governor, Deputy-Governors and Assistant Governors

90 Metropolitan Electricity Authority Report On Compliance With The Official Information Act B.E.2540 (1997) In 2015

Information Disclosure and • The website of MEA Information Center Transparency to provide information to the public as required • The Committee on MEA Information by the law is designed as a minisite of www.mea. Management has been appointed to be responsible or.th. Being an additional channel in accessing for ensuring that the information disclosure of information more conveniently, the minisite has MEA is based on the principle of transparency and started its service on 30 April 2014. As of 30 responds to the need of all stakeholders with September 2015, the number of visitors was equity. The committee holds meeting every three 41,312. months or more frequently in urgent case to • The monthly information on notifications monitor the operation and consider matters which concerning tenders for purchase and hiring and need consultation. the results of the tendering together with the • The MEA Regulation on information was details of method of purchasing/hiring, applicants issued in 2013. participating in the tender and the proposed • The MEA Order concerning the MEA price, the successful candidates and the handbook on information service of MEA. justification for the selection has been made • The MEA Information Center was available in www.mea.or.th. In 2015, (during established to be responsible for information 1 October 2014 - 30 September 2015), 1,105 management in accordance with the Official items were included in the procurement. Information Act B.E. 2540 (1997) and giving advice • MEA provided service in information to different units of MEA to comply with the Act. The Information Center was opened officially by disclosure to 4,798 persons who requested for the MEA Governor, Mr. Somchai Roadrungwasinkul, MEA information in accordance with articles on 22 May 2015 at the first floor of Pleonchit 7, 9 and 11 of the Official Information Act, Headquarters. B.E. 2540 (1997) (during 1 October 2014 - 30 • In accordance with the Cabinet September 2015). resolution which requests the government • Regarding the response to organizations to conduct training concerning the complaints and consideration of appeals Official Information Act B.E. 2540 (1997) at least concerning information disclosure, in 2015, once a year, a training was organized for MEA there was no appeal concerning information personnel on 13 March 2015 at the meeting room disclosure of MEA. on the 18th floor of the Pleonchit Headquarters. • Regarding the provision of the copies • MEA signed a Memorandum of of the MEA rules, regulations, orders and Understanding for being a network in development notifications which have general effect on the of information centers of the government private sector for publishing in the Royal agencies. The signing ceremony presided by Gazette, in 2015, there was no MEA rules, Minister of the Prime Minister’s Office, Mr. Suwapan regulations, orders and notifications to be Tanyuwattana was held on 21 September 2015 published in the Royal Gazette. at the Grand Ballroom, Eastin Hotel, Bangkok. Annual Report 2015 91 Electric Vehicle (EV) Report of the Responsibility of the Board of Directors for the Financial Report

The Board of Directors of the Metropolitan Electricity Authority is responsible for the financial report. Being under the supervision of the Board of Directors, the financial statements have been prepared, in accordance with the financial reporting standards using the appropriate accounting policy and practice consistently, based on the principle of carefulness, correctness, completeness, truth and reasonableness. Important information is adequately disclosed in the Notes to the Financial Statements. The financial statements have been endorsed by the Office of the Auditor General of Thailand.

The Board of Directors has appointed an Audit Committee comprising independent Directors to be responsible for supervising and verifying the reliability and correctness of the financial report as well as the adequacy and the appropriateness of the risk management system, internal control system, internal audit and good corporate governance.

The Board of Directors is of the opinion that the financial statements of the Metropolitan Electricity Authority for the year ended 31 December 2015 present the financial position, financial performance, changes in equity and cash flows in accordance with the generally accepted accounting principles.

(Signed) Mr. Grisada Boonrach (Mr. Grisada Boonrach) Chairman of MEA Board of Directors

Annual Report 2015 93 (TRANSLATION) AUDITOR’S REPORT

To the Board of Directors of the Metropolitan Electricity Authority The Office of the Auditor General of Thailand has audited the equity method financial statements of the Metropolitan Electricity Authority and separate financial statements of the Metropolitan Electricity Authority, which comprise the equity method and separate statements of financial position, as at December 31, 2015, and the equity method and separate statements of comprehensive income, the equity method and separate statements of changes in equity and the equity method and separate statements of cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information. Management’s Responsibility for the Equity Method and Separate Financial Statements Management is responsible for the preparation and fair presentation of these equity method 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 equity method and separate financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility The Office of the Auditor General of Thailand’s responsibility is to express an opinion on these equity method and separate financial statements based on the audit. The Office of the Auditor General of Thailand conducted the audit in accordance with Thai Standards on Auditing. Those standards require that the Office of the Auditor General of Thailand comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the equity method 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 equity method and separate financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the equity method and separate financial statements, whether due to fraud or

94 Metropolitan Electricity Authority error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the equity method and separate 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 MEA’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 equity method and separate financial statements. The Office of the Auditor General of Thailand believes 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 above mentioned equity method and separate financial statements present fairly, in all material respects, the equity method and separate financial position of the Metropolitan Electricity Authority, as at December 31, 2015, and their equity method and separate financial performance and cash flows for the year then ended in accordance with Thai Financial Reporting Standards.

(Signed) Yupin Chalanonniwat (Mrs. Yupin Chalanonniwat) Inspector General 1 Acting Auditor General

(Signed) Patchara Larpluechai (Ms. Patchara Larpluechai) Division Director Acting Director of Financial Audit Office No. 13

Office of the Auditor General of Thailand April 12, 2016

Annual Report 2015 95 The Metropolitan Electricity Authority Statements of Financial Position As at December 31, 2015

Unit : Baht Equity Method Financial Separate Financial Statements Statements Notes 2015 2014 2015 2014 Assets Current Assets Cash and cash equivalents 3.1 5.1 20,142,203,770 23,825,854,764 20,142,203,770 23,825,854,764 Short-term investments 3.2 5.2 22,111,895,491 14,508,020,265 22,111,895,491 14,508,020,265 Trade accounts receivable 3.3 5.3 16,710,719,839 16,522,842,787 16,710,719,839 16,522,842,787 Materials and supplies 3.4 5.4 7,242,850,882 7,325,703,702 7,242,850,882 7,325,703,702 Construction contracts in progress 27,690,133 29,428,304 27,690,133 29,428,304 Bank deposits of sinking funds for 3.5 38,656,222 39,779,801 38,656,222 39,779,801 self-insurance Other current assets 5.5 4,086,078,808 3,274,780,595 4,086,078,808 3,274,780,595 Total Current Assets 70,360,095,145 65,526,410,218 70,360,095,145 65,526,410,218 Non-Current Assets Investment in joint venture 3.6 5.6 611,764,573 544,892,031 501,000,000 501,000,000 Bank deposits for collateral 5.7 6,400,000 11,500,000 6,400,000 11,500,000 Property, plant and equipment 3.7 5.8 80,650,344,137 78,303,161,023 80,650,344,137 78,303,161,023 Intangible assets 3.8 5.9 400,540,008 537,248,743 400,540,008 537,248,743 Construction in progress 5.10 24,917,115,478 22,071,185,091 24,917,115,478 22,071,185,091 Sinking fund for repayment of 3.9 5.11 12,709,637,699 10,507,816,083 12,709,637,699 10,507,816,083 liabilities Other non-current assets 23,662,233 38,649,701 23,662,233 38,649,701 Total Non-Current Assets 119,319,464,128 112,014,452,672 119,208,699,555 111,970,560,641 Total Assets 189,679,559,273 177,540,862,890 189,568,794,700 177,496,970,859

The accompanying notes are an integral part of these financial statements.

96 Metropolitan Electricity Authority The Metropolitan Electricity Authority Statements of Financial Position As at December 31, 2015

Unit : Baht Equity Method Financial Separate Financial Statements Statements Notes 2015 2014 2015 2014 Liabilities and Equity Current Liabilities Accounts payable - electricity 5.12 26,013,368,432 27,252,098,150 26,013,368,432 27,252,098,150 Other payables 4,230,597,541 2,259,869,191 4,230,597,541 2,259,869,191 Current portion of long-term 3.11 5.15 383,305,037 515,423,623 383,305,037 515,423,623 liabilities Accrued remittance to the 5.13 2,704,663,000 2,917,500,000 2,704,663,000 2,917,500,000 Ministry of Finance Advances received from 2,817,047,521 1,930,118,162 2,817,047,521 1,930,118,162 customers Accrued expenses 1,501,068,318 1,352,469,960 1,501,068,318 1,352,469,960 Other current liabilities 5.14 1,116,413,694 982,284,226 1,116,413,694 982,284,226 Total Current Liabilities 38,766,463,543 37,209,763,312 38,766,463,543 37,209,763,312 Non-Current Liabilities Long-term liabilities 3.11 5.15 33,970,520,553 30,316,124,360 33,970,520,553 30,316,124,360 Employee benefit obligation 3.12 5.16 6,471,463,058 5,854,659,028 6,471,463,058 5,854,659,028 Provisions for long-term 3.13 - 2,711,952 - 2,711,952 liabilities Customers' guarantee deposits 5.17 14,055,177,911 13,420,083,148 14,055,177,911 13,420,083,148 Deferred revenues 3.14 5.18 12,320,036,208 11,551,688,455 12,320,036,208 11,551,688,455 Other non-current liabilities 5.17 48,998,897 - 48,998,897 - Employees' gratuity fund 5.19 718,808,255 711,364,989 718,808,255 711,364,989 Total Non-Current Liabilities 67,585,004,882 61,856,631,932 67,585,004,882 61,856,631,932 Total Liabilities 106,351,468,425 99,066,395,244 106,351,468,425 99,066,395,244 Equity Government contributions 358,323,532 358,323,532 358,323,532 358,323,532 Unappropriated retained earnings 82,969,767,316 78,116,144,114 82,859,002,743 78,072,252,083 Total Equity 83,328,090,848 78,474,467,646 83,217,326,275 78,430,575,615 Total Liabilities and Equity 189,679,559,273 177,540,862,890 189,568,794,700 177,496,970,859

The accompanying notes are an integral part of these financial statements.

(Signed) Simchai Roadungwasinkul (Signed) Chulee Supavattanakul (Ms. Simchai Roadungwasinkul) (Mrs. Chulee Supavattanakul) Director and Governor Deputy Governor-Finance

Annual Report 2015 97 The Metropolitan Electricity Authority Statements of Comprehensive Income For the year ended December 31, 2015

Unit : Baht Equity Method Financial Separate Financial Statements Statements Notes 2015 2014 2015 2014

Revenues Operating revenues Sales of electricity energy 3.16 194,698,616,258 195,509,156,766 194,698,616,258 195,509,156,766 Revenues from sales and 3.16 1,531,324,459 1,515,613,335 1,531,324,459 1,515,613,335 construction contracts Other operating revenues 3.14.1 3.16 1,893,270,507 1,866,243,677 1,893,270,507 1,866,243,677 5.18 5.20 Total operating revenues 198,123,211,224 198,891,013,778 198,123,211,224 198,891,013,778 Other income 3.10 3.16 1,686,548,767 1,711,755,293 1,699,715,048 1,711,755,293 5.21 Total Revenues 199,809,759,991 200,602,769,071 199,822,926,272 200,602,769,071 Expenses Operating expenses Purchases of electricity energy 168,921,226,374 170,295,337,898 168,921,226,374 170,295,337,898 Costs from sales and 1,015,815,755 1,045,523,044 1,015,815,755 1,045,523,044 construction contracts Employee expenses 9,165,456,968 8,498,674,646 9,165,456,968 8,498,674,646 Depreciation and amortization 6,845,376,141 6,658,551,219 6,845,376,141 6,658,551,219 expenses Other operating expenses 5.23 5.24 766,997,320 1,348,205,809 766,997,320 1,348,205,809 Total operating expenses 186,714,872,558 187,846,292,616 186,714,872,558 187,846,292,616 Other expenses 470,381,340 317,343,312 470,381,340 317,343,312 Finance costs 3.17 1,297,983,503 1,261,705,199 1,297,983,503 1,261,705,199 Total Expenses 188,483,237,401 189,425,341,127 188,483,237,401 189,425,341,127 Profit from operating 11,326,522,590 11,177,427,944 11,339,688,871 11,177,427,944 Share of net profit of investment in 3.6 5.6 65,638,784 74,962,860 - - joint venture Profit for the year 5.26 11,392,161,374 11,252,390,804 11,339,688,871 11,177,427,944 Other comprehensive income (524,792,720) - (525,275,211) - (loss) Total comprehensive income for 10,867,368,654 11,252,390,804 10,814,413,660 11,177,427,944 the year

The accompanying notes are an integral part of these financial statements.

98 Metropolitan Electricity Authority The Metropolitan Electricity Authority Statements of Changes in Equity For the year ended December 31, 2015

Unit : Baht

Equity Method Financial Statements Government Unappropriated Contributions Retained Earnings Total Balance as at January 1, 2014 358,323,532 72,540,253,310 72,898,576,842 Reserve for remittance to the Ministry of Finance - (320,500,000) (320,500,000) for 2013 (Additional) Reserve for remittance to the Ministry of Finance - (5,356,000,000) (5,356,000,000) for 2014 Profit for the year - 11,252,390,804 11,252,390,804 Balance as at December 31, 2014 358,323,532 78,116,144,114 78,474,467,646

Balance as at January 1, 2015 358,323,532 78,116,144,114 78,474,467,646 Retained earnings (Additional) - 13,917,548 13,917,548 Reserve for remittance to the Ministry of Finance - (6,027,663,000) (6,027,663,000) for 2015 Profit for the year - 11,392,161,374 11,392,161,374 Other comprehensive loss - (524,792,720) (524,792,720) Balance as at December 31, 2015 358,323,532 82,969,767,316 83,328,090,848

The accompanying notes are an integral part of these financial statements.

Annual Report 2015 99 The Metropolitan Electricity Authority Statements of Changes in Equity For the year ended December 31, 2015

Unit : Baht

Separate Financial Statements Government Unappropriated Contributions Retained Earnings Total Balance as at January 1, 2014 358,323,532 72,571,324,139 72,929,647,671 Reserve for remittance to the Ministry of Finance - (320,500,000) (320,500,000) for 2013 (Additional) Reserve for remittance to the Ministry of Finance - (5,356,000,000) (5,356,000,000) for 2014 Profit for the year - 11,177,427,944 11,177,427,944 Balance as at December 31, 2014 358,323,532 78,072,252,083 78,430,575,615

Balance as at January 1, 2015 358,323,532 78,072,252,083 78,430,575,615 Reserve for remittance to the Ministry of Finance - (6,027,663,000) (6,027,663,000) for 2015 Profit for the year - 11,339,688,871 11,339,688,871 Other comprehensive loss - (525,275,211) (525,275,211) Balance as at December 31, 2015 358,323,532 82,859,002,743 83,217,326,275

The accompanying notes are an integral part of these financial statements.

100 Metropolitan Electricity Authority The Metropolitan Electricity Authority Statements of Cash Flows For the year ended December 31, 2015

Unit : Baht Equity Method Financial Separate Financial Statements Statements 2015 2014 2015 2014 Cash flows from operating activities : Profit for the year 11,392,161,374 11,252,390,804 11,339,688,871 11,177,427,944 Adjustments to reconcile profit for the year to net cash provided by (paid from) operating activities: Depreciation and amortization 6,845,376,141 6,658,551,219 6,845,376,141 6,658,551,219 Loss on disposal of assets 412,650,299 307,440,992 412,650,299 307,440,992 Loss (Gain) on foreign exchange 4,054,898 (18,264,808) 4,054,898 (18,264,808) Actuarial Gains (90,836,815) - (90,836,815) - Allowance for obsolete materials and supplies 17,799,273 3,015,131 17,799,273 3,015,131 Allowance for doubtful accounts 15,953,944 (11,348,898) 15,953,944 (11,348,898) Amortization revenue (1,178,500,276) (1,155,633,555) (1,178,500,276) (1,155,633,555) Employee benefits 606,365,490 534,432,233 606,365,490 534,432,233 Provisions (347,438) 1,983,102 (347,438) 1,983,102 Share of net profit of investment in joint venture (65,638,784) (74,962,860) - - Interest income (1,057,804,953) (1,129,842,720) (1,057,804,953) (1,129,842,720) Interest expense 1,296,459,839 1,260,761,282 1,296,459,839 1,260,761,282 Other non-cash expenses 98,648,128 4,493,327 85,481,847 4,493,327 Operating profit before changes 18,296,341,120 17,633,015,249 18,296,341,120 17,633,015,249 in operating assets and liabilities (Increase) decrease in operating assets Trade accounts receivable (249,925,232) (1,334,316,377) (249,925,232) (1,334,316,377) Materials and supplies (78,370,320) (58,854,997) (78,370,320) (58,854,997) Construction contracts in progress 1,738,170 (8,913,709) 1,738,170 (8,913,709) Bank deposits of sinking funds for self-insurance 1,123,579 38,983 1,123,579 38,983 Other current assets 242,330,718 (435,531,356) 242,330,718 (435,531,356) Other non-current assets 17,186,712 45,678,797 17,186,712 45,678,797 Increase (decrease) in operating liabilities Accounts payable - electricity (1,238,729,718) 2,976,744,760 (1,238,729,718) 2,976,744,760 Other payables 2,150,061,999 2,974,871 2,150,061,999 2,974,871 Advances received from customers 928,736,176 161,092,577 928,736,176 161,092,577 Accrued expenses 105,360,310 19,090,175 105,360,310 19,090,175 Other current liabilities 13,483,205 10,412,222 13,483,205 10,412,222 Employee benefit obligation (423,999,857) (330,769,834) (423,999,857) (330,769,834) Customers' guarantee deposits 635,094,763 664,215,331 635,094,763 664,215,331 Deferred revenues on contributions for construction of distribution systems 1,616,844,426 1,306,201,328 1,616,844,426 1,306,201,328 Deferred Government grants 134,070,000 - 134,070,000 - Employees' gratuity fund 7,443,266 23,451,744 7,443,266 23,451,744 Net cash from operating activities 22,158,789,317 20,674,529,764 22,158,789,317 20,674,529,764

The accompanying notes are an integral part of these financial statements.

Annual Report 2015 101 The Metropolitan Electricity Authority Statements of Cash Flows For the year emded December 31, 2015

Unit : Baht Equity Method Financial Separate Financial Statements Statements 2015 2014 2015 2014

Cash flows from investing activities : Investing in short-term investments (7,598,775,226) (602,792,372) (7,598,775,226) (602,792,372) Investing in property, plant and equipment (12,866,869,200) (12,880,424,625) (12,866,869,200) (12,880,424,625) Cash received from interests 1,016,916,936 1,191,257,484 1,016,916,936 1,191,257,484 Cash paid for interests (187,428,481) (142,232,839) (187,428,481) (142,232,839) Dividend 13,166,280 - 13,166,280 - Net cash used in investing activities (19,622,989,691) (12,434,192,352) (19,622,989,691) (12,434,192,352) Cash flows from financing activities : Increase in sinking fund for repayment of liabilities (2,201,821,616) (917,229,898) (2,201,821,616) (917,229,898) Proceeds from issuance of the MEA bonds 4,000,000,000 3,000,000,000 4,000,000,000 3,000,000,000 Repayments of long-term loans (461,420,000) (522,661,500) (461,420,000) (522,661,500) Repayments of redemption of the MEA bonds - (1,300,000,000) - (1,300,000,000) Repayments of finance lease liabilities (51,611,030) (45,150,870) (51,611,030) (45,150,870) Cash paid for interests (1,264,097,974) (1,278,146,347) (1,264,097,974) (1,278,146,347) Remittance to the Ministry of Finance (6,240,500,000) (4,998,600,000) (6,240,500,000) (4,998,600,000) Net cash used in financing activities (6,219,450,620) (6,061,788,615) (6,219,450,620) (6,061,788,615) Net increase in cash and cash equivalents (3,683,650,994) 2,178,548,797 (3,683,650,994) 2,178,548,797 Cash and cash equivalents at the beginning of period 23,825,854,764 21,647,305,967 23,825,854,764 21,647,305,967 Cash and cash equivalents at the end of period 20,142,203,770 23,825,854,764 20,142,203,770 23,825,854,764

The accompanying notes are an integral part of these financial statements.

102 Metropolitan Electricity Authority The Metropolitan Electricity Authority Notes to the Financial Statements For the year ended December 31, 2015 1. General Information The Metropolitan Electricity Authority (MEA) is a Thai state enterprise from the government contributions under the Metropolitan Electricity Authority Act, B.E. 2501 (1958) and its amendment. The MEA has to follow rules and regulations concerning state enterprises. The MEA headquarters is located at 30 Soi Chidlom, Ploenchit Road, Lumpini Sub-district, Pathumwan District, Bangkok 10330. The objectives of the MEA are: 1.1 To acquire and sell electricity in Bangkok, Nonthaburi and Samutprakan. 1.2 To carry out electric power and other related business which are beneficial to the MEA. 2. Basis for presentation of financial statements 2.1 Basis for preparation of financial statements These financial statements have been prepared to comply with the Notification of the Department of Business Development, regarding “The Brief Particulars in the Financial Statements B.E. 2554 (2011)” dated September 28, 2011, issued under the third paragraph of section 11 of the Accounting Acts B.E. 2543 (2000). The financial statements as at December 31, 2015 include transactions concerning the Metropolitan Electricity Authority employees’ gratuity fund. Equity method financial statements and separate financial statements are prepared under the assumption that financial statements’ users understand accounting procedures and Generally Accepted Accounting Principles (GAAP) in Thailand. Those principles may differ from GAAP in other countries. As a result, equity method financial statements and separate financial statements are not prepared on the purpose to present the financial positions, operational results, and cash flows complying with GAAP in other countries. The financial statements in English version are prepared based on the Thai version. In case of any conflicts in contents or interpretations, the financial statements in Thai prevail. 2.2 Thai Accounting Standards, Thai Financial Reporting Standards, Thai Accounting Standard Interpretations and Thai Financial Reporting Interpretations are promulgated by the Federation of Accounting Professions. Effective for accounting periods beginning on or after January 1, 2016 - Conceptual Framework for Financial Reporting (Revised 2015) - Thai Accounting Standard No. 1 (Revised 2015) Presentation of Financial Statements

Annual Report 2015 103 - Thai Accounting Standard No. 2 (Revised 2015) Inventories - Thai Accounting Standard No. 7 (Revised 2015) Statement of Cash Flows - Thai Accounting Standard No. 8 (Revised 2015) Accounting Policies, Changes in Accounting Estimates and Errors - Thai Accounting Standard No. 10 (Revised 2015) Events after the Reporting Period - Thai Accounting Standard No. 11 (Revised 2015) Construction Contracts - Thai Accounting Standard No. 12 (Revised 2015) Income Taxes - Thai Accounting Standard No. 16 (Revised 2015) Property, Plant and Equipment - Thai Accounting Standard No. 17 (Revised 2015) Leases - Thai Accounting Standard No. 18 (Revised 2015) Revenue - Thai Accounting Standard No. 19 (Revised 2015) Employee Benefits - Thai Accounting Standard No. 20 (Revised 2015) Accounting for Government Grants and Disclosure of Government Assistance - Thai Accounting Standard No. 21 (Revised 2015) The Effects of Changes in Foreign Exchange Rates - Thai Accounting Standard No. 23 (Revised 2015) Borrowing Costs - Thai Accounting Standard No. 24 (Revised 2015) Related Party Disclosures - Thai Accounting Standard No. 26 (Revised 2015) Accounting and Reporting by Retirement Benefit Plans - Thai Accounting Standard No. 27 (Revised 2015) Separate Financial Statements - Thai Accounting Standard No. 28 (Revised 2015) Investments in Associates and Joint Venture - Thai Accounting Standard No. 29 (Revised 2015) Financial Reporting in Hyperinflationary Economies - Thai Accounting Standard No. 33 (Revised 2015) Earnings per Share - Thai Accounting Standard No. 34 (Revised 2015) Interim Financial Reporting - Thai Accounting Standard No. 36 (Revised 2015) Impairment of Assets

104 Metropolitan Electricity Authority Effective for accounting periods beginning on or after January 1, 2016 (Continued) - Thai Accounting Standard No. 37 (Revised 2015) Provisions, Contingent Liabilities and Contingent Assets - Thai Accounting Standard No. 38 (Revised 2015) Intangible Assets - Thai Accounting Standard No. 40 (Revised 2015) Investment Property - Thai Accounting Standard No. 41 Agriculture - Thai Financial Reporting Standard No. 2 (Revised 2015) Share-based Payments - Thai Financial Reporting Standard No. 3 (Revised 2015) Business Combinations - Thai Financial Reporting Standard No. 4 (Revised 2015) Insurance Contracts - Thai Financial Reporting Standard No. 5 (Revised 2015) Non-current Assets Held for Sale and Discontinued Operations - Thai Financial Reporting Standard No. 6 (Revised 2015) Exploration for and Evaluation of Mineral Resources - Thai Financial Reporting Standard No. 8 (Revised 2015) Operating Segments - Thai Financial Reporting Standard No. 10 (Revised 2015) Consolidated Financial Statements - Thai Financial Reporting Standard No. 11 (Revised 2015) Joint Arrangements - Thai Financial Reporting Standard No. 12 (Revised 2015) Disclosure of Interests in Other Entities - Thai Financial Reporting Standard No. 13 (Revised 2015) Fair Value Measurement - Thai Accounting Standard Interpretation No. 10 Government Assistance (Revised 2015) - No Specific Relation to Operating Activities - Thai Accounting Standard Interpretation No. 15 Operating Leases - Incentives (Revised 2015) - Thai Accounting Standard Interpretation No. 25 Income Taxes - Changes in (Revised 2015) the Tax Status of an Entity or its Shareholders - Thai Accounting Standard Interpretation No. 27 Evaluating the Substance of (Revised 2015) Transactions Involving the Legal Form of a Lease - Thai Accounting Standard Interpretation No. 29 Service Concession (Revised 2015) Arrangements : Disclosures - Thai Accounting Standard Interpretation No. 31 Revenue - Barter Transactions (Revised 2015) Involving Advertising Services

Annual Report 2015 105 Effective for accounting periods beginning on or after January 1, 2016 (Continued) - Thai Accounting Standard Interpretation No. 32 Intangible Assets - Web Site Costs (Revised 2015) - Thai Financial Reporting Interpretation No. 1 Changes in Existing (Revised 2015) Decommissioning, Restoration and Similar Liabilities - Thai Financial Reporting Interpretation No. 4 Determining whether an (Revised 2015) Arrangement contains a Lease - Thai Financial Reporting Interpretation No. 5 Rights to Interests arising (Revised 2015) from Decommissioning, Restoration and Environmental Rehabilitation Funds - Thai Financial Reporting Interpretation No. 7 Applying the Restatement (Revised 2015) Approach under TAS 29 (Revised 2015) Financial Reporting in Hyperinflationary Economies - Thai Financial Reporting Interpretation No. 10 Interim Financial Reporting and (Revised 2015) Impairment - Thai Financial Reporting Interpretation No. 12 Service Concession Arrangements (Revised 2015) - Thai Financial Reporting Interpretation No. 13 Customer Loyalty Programmes (Revised 2015) - Thai Financial Reporting Interpretation No. 14 TAS 19 (Revised 2015) - The Limit (Revised 2015) on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction - Thai Financial Reporting Interpretation No. 15 Agreements for the Construction (Revised 2015) of Real Estate - Thai Financial Reporting Interpretation No. 17 Distributions of Non-cash Assets to (Revised 2015) Owners - Thai Financial Reporting Interpretation No. 18 Transfers of Assets from Customers (Revised 2015) - Thai Financial Reporting Interpretation No. 20 Stripping Costs in the Production (Revised 2015) Phase of a Surface Mine - Thai Financial Reporting Interpretation No. 21 Levies

106 Metropolitan Electricity Authority The MEA has assessed and believed that the aforementioned accounting standards and financial reporting standards effective for the accounting period beginning on or after January 1, 2016 onwards, have no significant effects on the MEA financial statements. 3. Summary of significant accounting policies 3.1 Cash and cash equivalents Cash and cash equivalents consist of cash on hand, saving deposits and unconditioned fixed deposits (not over 3 months). 3.2 Investments The MEA has a policy to set aside its funds for repayment of liabilities, customer deposits, and employees’ gratuity funds. Investment in short-term financial instruments issued by the Ministry of Finance, government financial institutions, and state enterprises are classified as temporary investments. The investments are stated at amortized costs. Interest income is recognized on a time proportional basis. 3.3 Allowance for doubtful accounts Allowance for doubtful accounts is estimated from contingent loss from uncollectible accounts. The estimation as at statements of financial position date is based on historical collection experience combined with the current status of debtors, excluding government agencies or state enterprises, after deducting cash guarantee deposits. The estimation has been based on the Ministry of Finance regulation regarding the accounting and finance of state enterprises, B.E. 2548 (2005) and the Metropolitan Electricity Authority board resolution No. 529, dated February 20, 2006. The allowance for doubtful accounts has been specified as follows:

Outstanding period Percentage of Allowance for Doubtful Accounts 6 months up to 1 year 50 More than 1 year 100

An increase or decrease in the allowance for doubtful accounts is treated as an expense or income in corresponding periods. 3.4 Materials and supplies Materials and supplies are valued at the average cost. The allowance for obsolescence is made at a full amount for materials and supplies, including unusable sub-station supplies with no movement for five years or more. For usable sub-station supplies with no movement for five years or more, there will be no allowance for obsolescence. 3.5 Bank deposits of sinking fund for self-insurance The MEA has set up a sinking fund for self-insurance for possible damages related to buildings and assets with moderate risk, by appropriation cash to a saving deposit account, which

Annual Report 2015 107 is separated from the bank accounts used in normal operations. The MEA will contribute Baht 10.00 million annually to the fund up to Baht 40.00 million, according to the guideline of the MEA’s Governor. Interest income from the deposit is recognized as the MEA’s income. The amount of the annual contribution to the sinking fund would approximate the insurance premium that would be paid to an insurance company if the MEA entered into a contract. When damages arising from accidents occurred, the MEA will use the sinking fund as compensation in accordance with the terms and conditions that are generally used by an insurance company for payments of compensation, and must be agreed by the Governor. 3.6 Investment in joint venture On March 28, 2003, the MEA, the Electricity Generating Authority of Thailand (“EGAT”) and the PTT Public Company Limited agreed to form a joint venture, namely District Cooling System and Power Plant Company Limited (DCAP). On April 2, 2003, DCAP was registered under Thai law as a limited company with the objective of generating and supplying electricity power and cooling systems for Suvarnabhumi Airport. The proportions in DCAP’s common stocks are 30%, 35% and 35%, respectively. The investment in joint venture presented in the separate financial statements of the MEA was initially recorded at cost. 3.7 Property, plant and equipment Property, plant and equipment are stated at cost at the date of acquisition or the completion of constructions, deducted by accumulated depreciation. Depreciation is calculated on the straight-line method over the estimated useful lives of the assets after deducting residual value, regardless of decommissioning costs. Depreciation expense is shown in operating expenses and partially capitalized as cost of construction using an indirect expense rate. Depreciation rates of the assets range from 3.33% to 33.33% per annum. The MEA has recorded assets by separating buildings from their components, except for fully depreciated buildings. 3.8 Intangible assets Intangible assets represent the expenditure for the right to use of software, which could be separated from related equipment. The expenditure has been amortized over its useful life of approximately 3-10 years. 3.9 Sinking fund for repayment of liabilities The MEA has set aside a sinking fund for repayments of long-term liabilities, according to a specific plan, by transferring cash to a fixed deposit account, which is separated from the bank accounts used in normal operations. Other portions of the sinking fund are invested in state enterprise bonds guaranteed by the Ministry of Finance. Interest income from the deposits and investments are recognized as the MEA’s income.

108 Metropolitan Electricity Authority 3.10 Foreign currency transactions Transactions denominated in foreign currencies incurred during the year are translated into Thai Baht using the exchange rates prevailing at the transaction date. Monetary assets and liabilities denominated in foreign currencies outstanding at the end of the year are translated into Thai Baht at the exchange rate promulgated by the Bank of Thailand as the reference rate at that date. Gain or loss on foreign exchange rate incurred in the year is entirely recognized in the statements of comprehensive income. 3.11 Long-term leases – the MEA as a lessee Leases for assets, which substantially transfer all the risks and rewards of ownership to a lessee, are classified as finance leases. Finance leases are capitalized as an asset and a liability at the inception of the lease at the lower of the fair value of the leased property or the present value of the minimum lease payments. Each lease payment is separated into finance charges and the principal. Finance charges are allocated based on contract years. The obligations under the finance leases as shown in the statements of financial position are presented net of deferred finance charges. The assets acquired under the finance leases are depreciated using the straight-line method over the shorter of the estimated useful life of the assets or the lease term. Leases not transferring significant portion of the risks and rewards of ownership to the lessee are classified as operating leases. Payments for each period are charged to the statements of comprehensive income on the straight-line method over the period of the lease. 3.12 Employee benefit obligation Employee benefit obligation represents a defined benefit obligation. The calculation is performed by a qualified independent actuary using the Projected Unit Credit Method, which is estimated based on present value of cash flows expected to be paid in the future. The discount rate is the yield at the reporting date on government bonds that have maturity dates approximating the terms of the liability. Expenses relating to employee benefits are recognized in the statements of comprehensive income throughout the employment periods. 3.13 Provisions Provisions are recognized in the statements of financial position when the MEA has an obligation as a result of litigations or estimations from past events, and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, which the amount of the obligation can be reasonably estimated. This may cause the differences between actual and estimation. Provisions for liabilities expected to due within next accounting period are classified as provisions for short-term liabilities under other current liabilities, while provisions for liabilities expected to due more than 1 year are classified as provisions for long-term liabilities.

Annual Report 2015 109 3.14 Deferred revenues 3.14.1 Deferred contributions for construction of distribution systems represent cash contributions from customers to reduce the MEA’s burden on construction of assets and distribution system equipment. The ownership and obligation for repair and maintenance rest with the MEA. These cash contributions are accounted for as deferred revenue and recognized as revenue at the rate of 5% per annum in accordance with the depreciation rate of the distribution systems contributed by customers. These distribution systems have a useful life of 20 years on average. 3.14.2 Donated assets, which are used in operations to generate revenues, are recorded as assets with corresponding deferred revenues from donations. The deferred revenues from donations are recognized as revenue over the period in accordance with the useful lives of the related donated assets. On the other hand, donated assets with no revenue generating ability are recorded as revenues as incurred. 3.14.3 Government grant is cash which the MEA received from Government for compensating the losses of assets from political unrest. Government grant is recognized as deferred revenue and recognized as revenue over the period in accordance with the useful lives of the assets when the assets are complete and ready for intended use. 3.15 Financial instruments The MEA’s financial assets at the statements of financial position date include cash and cash equivalents, investments, and trade accounts receivable, while financial liabilities represent the MEA’s commitments consisting of accounts payable, other liabilities, finance leases, other current liabilities, short-term loans and long-term loans. The particular recognition methods are disclosed in the individual accounting policy statements associated with each item. 3.16 Revenue recognition Revenue from sales of electricity energy Revenue from sales of electricity is recognized on a monthly basis, based on the cycle time of recording electricity usage of customers from electricity meters. Revenue from construction contracts Revenue from construction contracts is recognized based on an actual cost ratio. Revenue from telecommunication business Revenue from telecommunication business is recognized based on an accrual basis. Interest income Interest income is recognized on a time proportional basis with respect to the effective rate of return on assets.

110 Metropolitan Electricity Authority 3.17 Financial costs Financial costs represent expenses incurred from financing activities for use in operations including interest expense and expenses relating to long-term loans. Interest expense from long-term loans with the purpose of the acquisition of property, plant and equipment, and still in-progress is capitalized as assets under construction and recognized as expenses after the completion of the assets. Expenses related to long-term loans are fully recognized as expenses for the period. 4. Changes in accounting estimates During the year 2015, the MEA revises the estimation of employee expenses and employee benefit obligation due to increasing of employees and mutual separation plan (MEA Ruam Jai Jak program) in the year 2015, by hiring actuarial consultant to revise assumptions and obligation. Based on new actuarial techniques, some assumptions are changed such as discount rate and salary increase rate. The MEA records the differences between the old and new provisions as actuarial loss in the statements of other comprehensive income. The differences of other long- term employee benefits are recognized immediately in the statements of comprehensive income. The effects of changes in accounting estimate, as at December 31, 2015, employee benefit obligation increased by Baht 493.37 million and for the year ended December 31, 2015, expenses and actuarial gains recognized in the statements of comprehensive income increased by Baht 58.93 million and 90.84 million, respectively, and actuarial losses recognized in other comprehensive income increased by Baht 525.28 million.

5. Supplementary information 5.1 Cash and cash equivalents Unit : Million Baht Equity method financial statements and Separate financial statements

2015 2014 Cash on hand 136.53 134.79 Cash at banks : Current deposits (2,086.45) (2,287.34) Saving deposits 5,772.12 8,608.40 Fixed deposits 16,320.00 17,370.00 Total 20,142.20 23,825.85

Annual Report 2015 111 5.2 Short-term investments

Unit : Million Baht Equity method financial statements and Separate financial statements

2015 2014 Fixed deposits, not over 12 months 14,665.88 13,908.25 Treasury bills 2,299.36 - Government bonds 5,146.66 599.77 Total 22,111.90 14,508.02 Fixed deposits, not over 12 months, consist of : Unit : Million Baht 2015 2014 Customers’ guarantee deposits (Note 5.17) 13,923.43 13,223.43 Employees’ gratuity funds 686.45 684.82 The Metropolitan Electricity Authority 56.00 - Total 14,665.88 13,908.25

Customers’ guarantee deposits have a restriction on use as a working capital, as stated in the notes to the financial statements No. 5.17

112 Metropolitan Electricity Authority 5.3 Trade accounts receivable Trade accounts receivable are classified by their type and outstanding balances as follows: Unit : Million Baht Equity method financial statements and Separate financial statements Government and State Enterprises Private sectors Total Outstanding Balance Electricity Goods & Electricity Goods & 2015 services services 1-6 months 2,352.81 327.34 14,657.12 39.85 17,377.12 Over 6 months – 1 year 14.91 51.68 14.65 4.55 85.79 Over 1 year 67.73 350.18 270.93 9.04 697.88 Total 2,435.45 729.20 14,942.70 53.44 18,160.79 Less Undue output VAT 158.66 47.43 974.91 3.97 1,184.97 2,276.79 681.77 13,967.79 49.47 16,975.82 Less Allowance for doubtful accounts - - 254.42 10.68 265.10 Trade accounts receivable - net 2,276.79 681.77 13,713.37 38.79 16,710.72

Unit : Million Baht Government and State Enterprises Private sectors Total Outstanding Balance Electricity Goods & Electricity Goods & 2014 services services 1-6 months 2,624.33 316.90 14,219.86 47.51 17,208.60 Over 6 months – 1 year 60.55 25.82 17.93 2.18 106.48 Over 1 year 67.07 303.45 263.43 11.09 645.04 Total 2,751.95 646.17 14,501.22 60.78 17,960.12 Less Undue output VAT 176.74 41.98 945.65 8.98 1,173.35 2,575.21 604.19 13,555.57 51.80 16,786.77 Less Allowance for doubtful accounts - - 252.41 11.52 263.93 Trade accounts receivable - net 2,575.21 604.19 13,303.16 40.28 16,522.84

Annual Report 2015 113 As at December 31, 2015, major electricity receivables representing government agencies and state enterprises are the Royal Thai Army, Baht 105.68 million, the Bureau of the Royal Household, Baht 82.42 million, Chulalongkorn University, Baht 78.70 million, the Royal Thai Police, Baht 61.89 million, and the Office of the Higher Education Commission, Baht 48.63 million. 5.4 Materials and supplies

Unit : Million Baht Equity method financial statements and Separate financial statements

2015 2014 Materials and supplies 5,526.22 5,920.44 Materials and supplies in-transits 1,785.98 1,461.31 7,312.20 7,381.75 Less Allowance for obsolete materials and supplies 69.35 56.05 Materials and supplies – net 7,242.85 7,325.70 As at December 31, 2015, and 2014, materials and supplies-net amounting to Baht 7,242.85 million and Baht 7,325.70 million consist of materials and supplies for investment Baht 6,381.71 million and Baht 6,537.33 million and materials and supplies for operations Baht 861.14 million and Baht 788.37 million, respectively. 5.5 Other current assets

Unit : Million Baht Equity method financial statements and Separate financial statements

2015 2014 Input value added tax pending for transfer 1,849.87 1,900.33 Advance payments 1,845.46 831.51 Accrued revenues 307.37 403.61 Other receivables 50.03 132.80 Others 33.35 6.53 Total 4,086.08 3,274.78 114 Metropolitan Electricity Authority 5.6 Investment in joint venture The MEA has jointly invested in District Cooling System and Power Plant Company Limited, which has registered and fully paid-up 167 million shares, Baht 10 par value, totaling Baht 1,670.00 million. The MEA has held 30% of the company’s common stock for 50.10 million shares, totaling Baht 501.00 million. The resolution of the 2015 Annual General Shareholders’ Meeting held on March 26, 2015 approved a dividend payment from the retained earnings for the year 2014 of Baht 0.2628 per share, totaling Baht 43.89 million.The MEA has received dividends Baht 13.17 million. The investments in joint venture are recorded using the equity method, consists of: Unit : Million Baht 2015 2014

Investment 501.00 501.00 Recognition of income (loss) from joint venture Income (loss) carry forwards 43.89 (31.07) Adjusted retained earnings 13.87 - Income for the year 65.64 74.96 Dividends (13.17) - Adjusted other comprehensive gain 0.05 - Other comprehensive gain for the year 0.48 - Total 110.76 43.89 Balance of investment 611.76 544.89 5.7 Bank deposits for collateral Bank deposits amounting to Baht 6.40 million consist of fixed deposits for collaterals on employees’ bonding at Krung Thai Bank Public Company Limited and for employees’ loans at the Government Housing Bank for Baht 1.40 million and Baht 5.00 million, respectively.

Annual Report 2015 115 5.8 Property, plant and equipment The equity method financial statements and separate financial statements are as follows:

Unit : Million Baht

Property, Costs Accumulated depreciation plant and Transfer Dec 31, Transfer Dec 31, equipment Jan 1, 2015 Additions out Disposals 2015 Jan 1, 2015 Additions out Disposals 2015 - net Land and land rights 3,211.39 112.07 - 0.03 3,323.43 - - - - - 3,323.43 Transmission system 54,163.85 1,713.71 6.44 22.32 55,848.80 26,073.59 2,087.88 6.44 15.22 28,139.81 27,708.99 assets Distribution system 88,527.26 6,323.96 - 914.41 93,936.81 45,231.53 4,392.41 - 772.50 48,851.44 45,085.37 assets General assets 13,640.46 1,905.50 940.07 626.11 13,979.78 9,934.68 823.43 685.56 625.32 9,447.23 4,532.55

Total 159,542.96 10,055.24 946.51 1,562.87 167,088.82 81,239.80 7,303.72 692.00 1,413.04 86,438.48 80,650.34

Unit : Million Baht

Property, Costs Accumulated depreciation plant and Transfer Dec 31, Transfer Dec 31, equipment Jan 1, 2014 Additions out Disposals 2014 Jan 1, 2014 Additions out Disposals 2014 - net Land and land rights 2,811.13 400.26 - - 3,211.39 - - - - - 3,211.39 Transmission system 53,704.75 499.68 - 40.58 54,163.85 24,034.38 2,067.83 - 28.62 26,073.59 28,090.26 assets Distribution system 84,686.56 4,507.10 - 666.40 88,527.26 42,282.85 3,508.33 - 559.65 45,231.53 43,295.73 assets General assets 13,250.04 703.53 - 313.11 13,640.46 9,372.24 867.80 - 305.36 9,934.68 3,705.78

Total 154,452.48 6,110.57 - 1,020.09 159,542.96 75,689.47 6,443.96 - 893.63 81,239.80 78,303.16

Assets under finance lease agreements included in general assets are motor vehicles as follows:

Unit : Million Baht 2015 2014 Cost 321.36 286.05 Less Accumulated depreciation 202.34 151.57 Book value 119.02 134.48 116 Metropolitan Electricity Authority 5.9 Intangible assets The equity method financial statements and separate financial statements are entirely computer software as follows: Unit : Million Baht Unit : Million Baht Property, Costs Accumulated depreciation plant and Costs Accumulated amortization Intangible equipment assets-net Jan 1, 2015 Additions Transfer Disposals Dec 31, Jan 1, 2015 Additions Transfer Disposals Dec 31, - net Transfer Dec 31, Transfer Dec 31, out 2015 out 2015 Jan 1, 2015 Additions out Disposals 2015 Jan 1, 2015 Additions out Disposals 2015 Land and 3,211.39 112.07 - 0.03 3,323.43 - - - - - 3,323.43 Computer 1,934.98 96.96 - 49.48 1,982.46 1,397.73 233.66 - 49.47 1,581.92 400.54 land rights software Transmission system 54,163.85 1,713.71 6.44 22.32 55,848.80 26,073.59 2,087.88 6.44 15.22 28,139.81 27,708.99 Total 1,934.98 96.96 - 49.48 1,982.46 1,397.73 233.66 - 49.47 1,581.92 400.54 assets Distribution system 88,527.26 6,323.96 - 914.41 93,936.81 45,231.53 4,392.41 - 772.50 48,851.44 45,085.37 Unit : Million Baht assets General assets 13,640.46 1,905.50 940.07 626.11 13,979.78 9,934.68 823.43 685.56 625.32 9,447.23 4,532.55 Costs Accumulated amortization Intangible Transfer Dec 31, Transfer Dec 31, assets-net Total 159,542.96 10,055.24 946.51 1,562.87 167,088.82 81,239.80 7,303.72 692.00 1,413.04 86,438.48 80,650.34 Jan 1, 2014 Additions out Disposals 2014 Jan 1, 2014 Additions out Disposals 2014 Computer 1,828.13 119.07 8.41 3.81 1,934.98 1,189.26 216.91 2.32 6.12 1,397.73 537.25 software Unit : Million Baht Total 1,828.13 119.07 8.41 3.81 1,934.98 1,189.26 216.91 2.32 6.12 1,397.73 537.25 Property, Costs Accumulated depreciation plant and 5.10 Construction in progress Transfer Dec 31, Transfer Dec 31, equipment Jan 1, 2014 Additions out Disposals 2014 Jan 1, 2014 Additions out Disposals 2014 - net The equity method financial statements and separate financial statements are as follows: Land and Unit : Million Baht land rights 2,811.13 400.26 - - 3,211.39 - - - - - 3,211.39 Transmission system 53,704.75 499.68 - 40.58 54,163.85 24,034.38 2,067.83 - 28.62 26,073.59 28,090.26 Costs Costs assets Distribution Jan 1, 2015 Increase Decrease Dec 31, 2015 Jan 1, 2014 Increase Decrease Dec 31, 2014 system 84,686.56 4,507.10 - 666.40 88,527.26 42,282.85 3,508.33 - 559.65 45,231.53 43,295.73 assets Terminal stations and 6,211.65 2,143.59 1,109.76 7,245.48 3,710.57 2,833.39 332.31 6,211.65 General sub-stations assets 13,250.04 703.53 - 313.11 13,640.46 9,372.24 867.80 - 305.36 9,934.68 3,705.78 Transmission systems 5,343.79 1,420.36 661.46 6,102.69 4,362.16 1,260.74 279.11 5,343.79 Total 154,452.48 6,110.57 - 1,020.09 159,542.96 75,689.47 6,443.96 - 893.63 81,239.80 78,303.16 Distribution systems 6,187.73 7,632.92 4,966.64 8,854.01 4,614.54 5,663.44 4,090.25 6,187.73

Mechanical equipment & vehicles 216.27 230.57 316.00 130.84 245.31 140.16 169.20 216.27

Others 4,111.75 1,226.34 2,753.99 2,584.10 1,779.35 3,134.79 802.39 4,111.75

Total 22,071.19 12,653.78 9,807.85 24,917.12 14,711.93 13,032.52 5,673.26 22,071.19

For the year 2015, the MEA has capitalized interest expense as costs of constructions in progress amounting to Baht 198.07 million. Annual Report 2015 117 5.11 Sinking fund for repayment of liabilities As at December 31, 2015, sinking fund for repayment of liabilities is entirely for the MEA bonds redemptions, of which Baht 400.00 million is used as a collateral on bank overdraft at Krung Thai Bank Public Company Limited. Sinking fund for repayment of liabilities of equity method financial statements and separate financial statements are as follows:

Unit : Million Baht 2015 2014 Balance as at January 1 10,507.82 9,590.59 Add Increase in the sinking fund 1,928.06 1,840.83 Interest income 273.76 376.40 12,709.64 11,807.82 Less Repayment of liabilities - 1,300.00 Balance as at December 31 12,709.64 10,507.82

5.12 Accounts payable - electricity For the years 2015 and 2014, electricity payables amounting to Baht 26,013.37 million and Baht 27,252.10 million, including VAT, represent the purchase of electricity from EGAT which dues within 30 days from an invoice date, and from very small power producers.

5.13 Accrued remittance to the Ministry of Finance According to the memorandum issued by the Ministry of Finance No. MOF 0805/V.60 dated August 3, 2006, the MEA has been required to remit its net profit for the year to the Royal Thai Government twice a year since 2006. The first remittance is calculated from its interim net profit for six-month period financial statements reviewed by the Office of the Auditor General of Thailand, within October. The second remittance is calculated from the annual financial statements audited by the Office of the Auditor General of Thailand. According to the memorandum issued by the State Enterprise Policy and Planning Bureau of State Enterprise Policy Office No. MOF 0805.1/V.27 dated May 21, 2014, the MEA has been required to remit its net profit for the year to the Royal Thai Government by calculated from its net profit of separate financial statements before executives’ remunerations and employees’ bonus. If the remittance is lower than the amount in The Annual Appropriations Act, the MEA has to remit as the amount in The Annual Appropriations Act.

118 Metropolitan Electricity Authority The equity method financial statements and separate financial statements are as follows: Unit : Million Baht 2015 2014 Balance as at January 1 2,917.50 2,239.60 Add Additional reserve according to SEPO’s memorandum - 320.50 Remittance calculated from net profit 6,027.66 5,356.00 8,945.16 7,916.10 Less Remittance according to SEPO’s memorandum 2,917.50 2,560.10 Remittance of interim net profit 3,323.00 2,438.50 Balance as at December 31 2,704.66 2,917.50

For the years 2015, the MEA estimated accrued remittance as the said amount in The Annual Appropriations Act, 2016, amounting to Baht 6,027.66 million and for the year 2014, the MEA estimated accrued remittance by calculating 45% of net profit for the year before executives’ remunerations and employees’ bonus of Baht 11,901.36 million amounting to Baht 5,356.00 million and for the year 2015, the MEA remitted its interim net profit amounting to Baht 3,323.00 million, resulting in the remaining balance of accrued remittance to the Ministry of Finance of Baht 2,704.66 million. 5.14 Other current liabilities

Unit : Million Baht Equity method financial statements and Separate financial statements 2015 2014 Retentions 673.39 586.81 Contract guarantees 141.29 106.87 Provision for short-term liabilities 5.38 5.73 Others 296.35 282.87 Total 1,116.41 982.28

Other current liabilities amounting to Baht 296.35 million, of which Baht 5.70 million represents suspended account awaiting to be transferred which is being audited.

Annual Report 2015 119 5.15 Long-term liabilities consist of:

Unit : Million Baht Equity method financial statements and Separate financial statements Current portion Long-term Balance of long-term liabilities 2015 liabilities Long-term loans 34,227.50 327.50 33,900.00 Finance lease liabilities 126.33 55.81 70.52 Total 34,353.83 383.31 33,970.52

Unit : Million Baht Current portion Long-term Balance of long-term liabilities 2014 liabilities Long-term loans 30,688.92 461.42 30,227.50 Finance lease liabilities 142.62 54.00 88.62 Total 30,831.54 515.42 30,316.12

Details of long-term loans are as follows: Unit : Million Baht Types of loans Interest rate (%) for an 2015 2014 accounting period 2015 Domestic loans The Metropolitan Electricity Authority bonds 3.25 - 6.38* 33,900.00 29,900.00 Financial institutions for investment 1.970 - 2.27625** 327.50 788.92 Total domestic loans 34,227.50 30,688.92 Less Current portion of long-term loans 327.50 461.42 Ending balance 33,900.00 30,227.50 * Fixed interest rates ** Floating interest rates During the year 2015, the MEA issued the MEA Bonds B.E. 2558 (2015) No. 1, which has each credit facility amounting to Baht 4,000.00 million: an interest rate of 3.470% per annum with 15 years to maturity. 120 Metropolitan Electricity Authority Details of finance lease liabilities are as follows: Unit : Million Baht Equity method financial statements and Separate financial statements 2015 2014 Finance lease liabilities - Current portion (not over 1 year) 68.88 62.86 - Non-current portion (over 1 year but not over 5 years) 83.88 109.36 Future finance charges (26.43) (29.60) Present value of finance lease liabilities 126.33 142.62 Unit : Million Baht 2015 2014 Present value of finance lease liabilities - Current portion (not over 1 year) 55.81 54.00 - Non-current portion (over 1 year but not over 5 years) 70.52 88.62 Total 126.33 142.62 5.16 Employee benefit obligation The reconciliation of present value of employee benefit obligation and recognized liability amount shown in equity method financial statements and separate financial statements as at December 31, 2015 and 2014 are as follows : Unit : Million Baht 2015 2014 Present value of the employee benefit obligation as at January 1 6,566.02 6,338.91 Current service costs 339.20 276.07 Interest cost 267.16 258.36 Actuarial Loss 434.44 - Benefit paid for compensation (72.84) (51.99) Benefit paid for other benefits (343.71) (255.33) Present value of the employee benefit obligation as at December 31 7,190.27 6,566.02 The MEA’s employees’ gratuity fund (see notes 5.19) 718.81 711.36 Liabilities – net as at December 31 6,471.46 5,854.66

Annual Report 2015 121 The expenses recognized in the statements of comprehensive income for the year ended December 31, 2015 and 2014 are as follows: Unit : Million Baht 2015 2014 Current service costs 339.20 276.07 Interest cost 267.16 258.36 Expenses recognized in profit or loss 606.36 534.43

Principal actuarial assumptions of the MEA are as follows:

Dec 31, 2015 Dec 31, 2014 Rate per annum Rate per annum Discount rate 3.60 4.20 Inflation Rate - Consumer Price Index 3.00 3.50 - Medical expense increase rate 8.00 8.00 Salary increase rate 5.00 - 11.00 5.00 - 9.00 Turnover rate 0.00 - 1.00 0.00 - 1.00 Mortality rate announced by the Office of Insurance Year 2008 Year 2008 Commissions (OIC) Sensitivity Analysis of Principal Actuarial Assumptions Employee benefit obligations of MEA are sensitive to changes in assumptions used for calculation. The actuarial assumptions may change based on change in market conditions, change in inflation condition and salary increase rate. The following table shows the effect of changes in each key assumption. The change in each assumption occurs separately.

122 Metropolitan Electricity Authority Unit : Million Baht Increase (Decrease) in Provisions Equity method financial statements and Separate financial statements Dec 31, 2015 Average discount rate 1 percent Increase (918.37) 1 percent decrease 1,175.90 Average salary increase rate 1 percent Increase 1,061.24 1 percent decrease (854.47) 5.17 Customers’ guarantee deposits Under the MEA regulations with reference to the administration of customers’ guarantee deposits B.E. 2544 (2001), No.2 B.E. 2548 (2005) and No.3 B.E. 2556 (2013), effective on December 18, 2001, May 26, 2005, and July 3, 2013, respectively and the board of Directors of the MEA’s resolution No.590, dated July 15, 2010, the Governor has the authority to approve the use of the deposits for the MEA’s business not exceeding Baht 2,500 million. If it is necessary for the MEA to use amounts in excess of Baht 2,500 million, the approval from the Board of Directors of the MEA must be requested. The interest rate for the deposits used is the same rate as received from investment in customers’ guarantee deposits. Any benefits arising from the use of the deposits have to be spent in the activities that will benefit directly to customers and/or publics. Such activities are determined by the Governor with an agreement of the Board of Directors of the MEA. Any benefits from customers’ guarantee deposits are paid back to residential and small general every 5 years and for the year 2015, MEA records any benefits from customers’ guarantee deposits as other non-current liabilities amounting to Baht 48.99 million which MEA will firstly pay back on monthly electricity bill for February, 2020 and paid back annually to medium and large general service and specific business service customers who deposited guarantees based on average annual saving interest rate of Krung Thai Bank with an agreement of Energy Regulatory Commission. In addition, cash received from customers as guarantee deposit has to be invested in short-term financial instruments followed regulation of the Ministry of Finance. Interests from customers’ guarantee deposits are recognized as income of the MEA.

Annual Report 2015 123 Customers’ guarantee deposits, excluding benefits, consist of: Unit : Million Baht Equity method financial statements and Separate financial statements 2015 2014 Saving deposits 131.75 196.65 Fixed deposits (Note 5.2) 13,923.43 13,223.43 Total 14,055.18 13,420.08 Benefits from customers’ guarantee deposits, excluding accrued interest, consist of: Unit : Million Baht 2015 2014 Beginning balance 588.70 533.93 Add Benefits from bank deposits 401.67 465.44 990.37 999.37 Less Payment for public benefits 420.72 402.96 Interests from customers’ guarantee 7.42 7.71 deposits paid back to customers Ending balance 562.23 588.70 5.18 Deferred revenues consist of: Unit : Million Baht Equity method financial statements and Separate financial statements 2015 2014 Deferred revenues on contributions for construction of 11,753.66 11,235.64 distribution systems Deferred revenues from donations 432.31 316.05 Deferred government grants 134.07 - Total 12,320.04 11,551.69 Details of deferred revenues on contributions for construction of distribution systems are as follows: Unit : Million Baht 2015 2014 Beginning balance 11,235.64 11,024.40 Add Received during the year 1,616.85 1,306.20 Total 12,852.49 12,330.60 Less Recognized as revenues 1,098.83 1,094.96 Ending balance 11,753.66 11,235.64 124 Metropolitan Electricity Authority 5.19 The MEA employees’ gratuity fund The MEA established the MEA employees’ gratuity fund in 1973 for the purpose of providing its employees with retirement benefits. The MEA contributes to the fund on a monthly basis at the rate of 10% of its employees’ monthly salary and also contributes an additional amount to provide an adequate reserve at the rate of 100% of the obligation due to mature at the end of period. The interest earned from this fund is entirely recognized as MEA’s income. For the year 2015, employees’ gratuity fund has the following movements:

Unit : Million Baht Equity method financial statements and Separate financial statements 2015 2014 Beginning balance 711.36 687.91 Add Contribution from the MEA 80.29 75.44 791.65 763.35 Less Payment to employees 72.84 51.99 Ending balance 718.81 711.36 5.20 Other Operating revenues

Unit : Million Baht Equity method financial statements and Separate financial statements 2015 2014 Revenues on contributions for construction of 1,098.83 1,094.96 distribution systems Other electricity revenues 794.44 771.28 Total 1,893.27 1,866.24

The MEA was approved to operate “Type III Telecommunication” (Fiber Optic) business from the Office of the National Broadcasting and Telecommunications Commission on December 28, 2006. For the year 2015 and 2014, the MEA recognized revenue from telecommunication business amounting to Baht 65.26 million and Baht 70.13 million, respectively, which is recorded as “other electricity revenues.”

Annual Report 2015 125 5.21 Other income Unit : Million Baht Equity method Separate financial statements financial statements 2015 2014 2015 2014 Interest income 1,057.80 1,129.84 1,057.80 1,129.84 Miscellaneous income 537.91 566.40 537.91 566.40 Dividend - - 13.17 - Actuarial Gains 90.84 - 90.84 - Gains on foreign exchange - 15.51 - 15.51 Total 1,686.55 1,711.75 1,699.72 1,711.75

Interest income consists of: Unit : Million Baht 2015 2014 The Metropolitan Electricity Authority 639.16 665.00 Customers’ guarantee deposits 397.93 441.62 Employees’ gratuity fund 20.71 23.22 Total 1,057.80 1,129.84 5.22 Audit fees The Office of Auditor General of Thailand is the auditor of the Metropolitan Electricity Authority. For the year 2015, the MEA paid audit fees amounting to Baht 2.15 million.

5.23 Other operating expenses Unit : Million Baht Equity method financial statements and Separate financial statements 2015 2014 License fee for energy industry operation 56.00 55.76 Public, social and environment expenses 115.33 157.78 Other expenses 595.67 1,134.67 Total 767.00 1,348.21

126 Metropolitan Electricity Authority 5.24 Executives’ remunerations Executives’ remunerations represent salaries and privileges for managers who have authority to make decision, meeting allowance, and bonus for the MEA directors. Executives’ remunerations shown both in equity method financial statements and separate financial statements for the years ended 31 December 2015 and 2014 consist of: Unit : Million Baht Equity method financial statements and Separate financial statements 2015 2014 Directors’ remuneration 6.75 6.85 Managements’ remuneration 32.94 27.59 Managements’ benefits 0.59 0.55 Total 40.28 34.99 5.25 Provident fund On November 1, 1995, the MEA, its employees, and Employee State Enterprise Association of the MEA established “Registered Provident Fund of the MEA” in accordance with the Provident Fund Act, B.E. 2530 (1987). There were 6,573 members as at December 31, 2015. The MEA contributes to the fund for members whose length of employment is less than 10 years, 10 - 20 years and more than 20 years of employment at 9%, 10% and 11% of basic salary, respectively. For the year 2015, the MEA contributed Baht 435.12 million to the fund. 5.26 Operational results Operational results shown in the MEA’s separate financial statements for the years ended December 31, 2015 and 2014 are analyzed as follows: Unit : Million Baht Separate financialfififi statements 2015 2014 Increase Percentage (Decrease) Revenues 199,822.93 200,602.77 (779.84) (0.39) Less Expenses 188,483.24 189,425.34 (942.10) (0.50) Profit for the year 11,339.69 11,177.43 162.26 1.45

For the year 2015, profit for year increased by Baht 162.26 million (1.45%) due mainly to the decrease in sales of electricity energy which is less than the decrease in purchases of electricity energy for Baht 563.57 million, operating expenses increased by Baht 237.51 million, depreciation expense increased by Baht 186.82 million, other electricity revenues increased by Baht 23.15 million and net revenues from sales and construction contracts increased for Baht 45.42 million.

Annual Report 2015 127 6. Commitments and contingent liabilities 6.1 The MEA has significant unrecognized commitments as follows: Unit : Million Baht 2015 2014 Outstanding letter of credits 1,106.30 362.46 Other commitments 0.50 0.50 Total 1,106.80 362.96

Commitments denominated in foreign currencies are translated into Thai Baht based on the exchange rate determined by the Bank of Thailand as a reference rate at the end of the year. 6.2 For the year ended December 31, 2015, the MEA was sued 6 cases with total capital funds Baht 1,019.86 million which the MEA believes that the decisions of the Courts will not result in any loss and not to recognize them as liabilities as follows: 6.2.1 The claimant claims any damages in case the MEA delivers working site late. The Court of First Instance dismissed the case. Currently the case is in the process of petition to the Appeals Court. 6.2.2 The claimant claims any damages and requests the MEA to revoke the control for land allocation. The Court of First Instance dismissed the case. The Appeals Court affirmed the judgment of The Court of First Instance. Currently, the case is in the process of petition to the Supreme Court. 6.2.3 The claimant claims any damages in case the contractor of MEA causing damages to the property of the plaintiff for 3 cases. The Court of First Instance dismissed the case. Currently, the 3 cases are in the process of petition to the Appeals Court. 6.2.4 The claimant claims any damages in case third person negligently drives car and causing an electricity post to damage the property of the plaintiff. Currently, this criminal case has been terminated and is in the process of civil case petition to the Court of First Instance.

7. Approval of the financial statements The governor of the MEA approved the financial statements on April 12, 2016.

128 Metropolitan Electricity Authority General Information Year 2011 - 2015 Year Descriptions 2011 2012 2013 2014 2015 Number of population of the whole country Persons 64,076,033 64,456,695 64,785,909 65,124,716 65,729,098 Percentage Change % 0.30 0.59 0.51 0.52 0.93 Number of population in Persons 8,000,693 8,038,535 8,084,133 8,127,684 8,169,430 MEA’s distribution area* Percentage Change % 0.15 0.47 0.57 0.54 0.51 Number of households in MEA’s distribution area Households 3,530,814 3,633,356 3,742,515 3,868,216 3,991,417 Percentage Change % 2.64 2.90 3.00 3.36 3.18 Persons per household in MEA’s distribution area Persons 2 2 2 2 2 Consumer price index of Thailand % 100.00 103.02 105.27 107.26 106.30 (2011 base year) Consumer price index of Bangkok Metropolis % 100.00 103.15 105.22 106.75 106.23 (2011 base year) Electricity tariff index % 100.00 109.33 118.37 123.00 118.80 (2007 base year) Number of customers at year end * Customers 3,115,695 3,194,167 3,295,382 3,395,367 3,522,038 Percentage Change % 2.65 2.52 3.17 3.03 3.73 Customers in percentage of total households* % 88.24 87.91 88.05 87.78 88.24 Sales of electricity* GWh 43,847.75 47,885.17 47,617.89 47,856.42 49,343.78 Percentage Change % (1.94) 9.21 (0.56) 0.50 3.11 Electricity consumptions including GWh 44,166.71 48,210.71 47,950.77 48,266.23 49,782.51 public lighting Percentage Change % (1.91) 9.16 (0.54) 0.66 3.14 Purchases of electricity including public lighting GWh 45,774.22 49,997.46 49,626.57 50,060.23 51,620.94 Percentage Change % (1.86) 9.23 (0.74) 0.87 3.12 Maximum power demand for the 30 minute MW 7,857.75 8,382.83 8,589.96 8,668.98 8,755.98 average Percentage Change % (2.71) 6.68 2.47 0.92 1.00 Energy loss % 3.44 3.51 3.31 3.51 3.49 Notes : Bangkok Metropolis, Samut Prakan and Nonthaburi * Excluding public lighting

Annual Report 2015 129 Power Distribution System Year 2011 - 2015 Year Descriptions 2011 2012 2013 2014 2015 Terminal station systems: Number of terminal stations Stations 17 17 17 17 17 Percentage change % - - - - - Number of switching stations Stations 1 1 1 1 1 Percentage change % - - - - - Transformers installed capacity MVA 17,655.88 18,305.88 18,305.88 18,305.88 18,605.88 Percentage change % 4.13 3.68 - - 1.64 Substation systems: Number of substations Stations 131 131 131 132 133 Percentage change % 0.77 - - 0.76 0.76 Transformers installed capacity MVA 17,365 17,580 17,690 17,905 18,285 Percentage change % 0.12 1.24 0.63 1.22 2.12 Substation distribution capacity MVA 16,585 16,820 17,005 17,760 17,985 Percentage change % 0.85 1.42 1.10 4.44 1.27 Transmission line systems: Length of 230 kV transmission lines cct.km 49.54 49.54 49.54 49.54 49.54 Percentage change % - - - - - Length of 115 kV transmission lines cct.km 721.43 726.07 746.14 782.19 814.86 Percentage change % 3.77 0.64 2.76 4.83 4.18 Length of 69 kV transmission lines cct.km 886.75 899.00 900.93 910.40 901.14 Percentage change % 1.06 1.38 0.21 1.05 -1.02 Distribution systems: Length of 24 and 12 kV feeders cct.km 16,874.32 17,133.39 17,478.15 17,737.49 18,433.27 Percentage change % 1.90 1.54 2.01 1.48 3.92 Length of 220/380 V secondary lines cct.km 26,837.12 27,387.41 27,656.33 28,306.69 28,697.54 Percentage change % 1.89 2.05 0.98 2.35 1.38

130 Metropolitan Electricity Authority Customers and Energy Sales Year 2011 - 2015 Year Descriptions 2011 2012 2013 2014 2015 Number of customers at year end (excluding public lighting): Customers Residential 2,585,233 2,659,423 2,755,418 2,848,802 2,961,051 Small general service 486,478 487,247 490,029 495,811 509,086 Medium general service 19,084 20,931 21,511 21,929 22,167 Large general service 1,968 2,075 2,130 2,165 2,215 Specific business 2,528 2,641 2,775 2,875 2,959 Government institutions and 11,322 358 316 323 324 non-profit Organizations Temporary 9,082 21,492 23,203 23,462 24,236 Total 3,115,695 3,194,167 3,295,382 3,395,367 3,522,038 Energy sales: GWh Residential 10,124.80 11,398.92 11,420.39 11,694.75 12,369.40 Small general service 6,644.43 7,210.42 7,386.65 7,428.80 7,733.33 Medium general service 7,494.56 8,132.84 8,638.93 8,668.96 8,926.39 Large general service 16,468.94 17,807.83 17,679.74 17,538.93 17,664.26 Specific business 1,779.70 1,984.38 2,001.67 2,014.66 2,127.91 Government institutions and 1,293.24 1,049.10 94.75 96.13 108.59 non-profit Organizations Temporary 42.08 301.68 395.77 414.20 413.90 Public and the MEA’s offices lighting 349.58 358.83 366.23 445.08 475.02 Total 44,197.33 48,244.00 47,984.12 48,301.51 49,818.80 Revenues from Sales of Electricity: Million Baht Residential 35,402.48 43,280.36 46,557.00 49,443.81 50,656.92 Small general service 24,645.16 28,866.65 31,585.55 32,863.94 33,032.46 Medium general service 25,571.41 30,114.98 34,791.15 36,201.35 35,978.75 Large general service 50,286.60 59,545.36 64,076.16 66,215.83 64,201.97 Specific business 5,395.14 6,554.51 7,170.71 7,535.89 7,628.38 Government institutions and 4,074.46 3,547.94 347.59 367.02 390.24 non-profit Organizations Temporary 257.12 1,970.50 2,684.99 2,881.32 2,809.90 Total 145,632.37 173,880.30 187,213.15 195,509.16 194,698.62 Note : The new tariff for 2011-2015 has been set up by the Energy Regulatory Commission since July, 2011. Temporary customer is an additional category in the tariff.

Annual Report 2015 131 MEA Locations and Contact Channels

MEA Locations Telephone The Metropolitan Electricity 30 Soi Chidlom, Ploenchit Road, 0 2254 9550 Authority (MEA Headquarters) Lumpini Sub-District, Pathumwan Fax: 0 2253 1424 District, Bangkok Metropolis 10330 Website : www.mea.or.th Better Care and Power Quality MEA Thon Buri District 0 2878 5395 Department 132/18 Soi Charan Sanitwong 20, Fax: 0 2878 5396 Charan Sanitwong Road, Ban Chang Lo Sub-District, Bangkok Noi District , Bangkok Metropolis 10700 District Cooling System and Power 222 Moo 1, Nong Prue Sub-District, 0 2327 4242 Plant Co., Ltd. (DCAP) Bang Plee District, Samut Prakarn Province Fax: 0 2327 4244 10540 e-mail: [email protected] MEA Public Information Center MEA Headquarters, 1th Floor 0 2256 3358 e-mail: [email protected] Fax: 0 2256 3339 MEA Call Center MEA Rat Burana District Hotline: 1130 21 Rat Burana Road, Rat Burana (24-hour service) Sub-District, Rat Burana District, Bangkok Metropolis 10140 e-mail: [email protected] Additional Communication Channel

132 Metropolitan Electricity Authority MEA Locations and Contact Channels MEA Districts and Branch Offices Map

Map that shows areas that MEA District Offices and its sub branches are responsible for electricity distribution

Annual Report 2015 133 MEA Districts Service Payment Outage Hotline MEA District Call Center 07.30 - 15.00 hrs. 07.30 - 15.00 hrs. 24 hr. 1. Wat Liab 0 2220 5000 0 2220 5226 0 2220 5280 0 2220 5211 121 Chakkraphet Rd., Wang Burapha Phirom Sub-District, Phra Nakhon District, Bangkok Metropolis 10200 2. Klong Toei 0 2348 5000 0 2348 5226 0 2348 5280 0 2348 5211 1192 Rama IV Rd., Klong Toei Sub-District, Klong Toei District, Bangkok Metropolis 10110 3. Yan Nawa 0 2611 5200 0 2611 5226 0 2611 5280 0 2611 5211 3027 Charoen Krung Rd., Bang Kho Laem Sub-District, Bang Kho Laem District, Bangkok Metropolis 10120 4. Samsen 0 2242 5000 0 2242 5226 0 2242 5280 0 2242 5211 809 Samsen Rd., Nakhon Chai Si Sub-District, Dusit District, Bangkok Metropolis 10300 5. Bang Khen 0 2792 5200 0 2792 5226 0 2792 5280 0 2792 5211 6 Phahon Yothin Rd., Anusawaree Sub-District, Bang Khen District, Bangkok Metropolis 10220 6. Lat Phrao 0 2716 3200 0 2716 3226 0 2716 3280 0 2716 3211 88 Ramkhamhaeng Rd., Suan Luang Sub-District, Suan Luang District, Bangkok Metropolis 10250 7. Thon Buri 0 2878 5200 0 2878 5226 0 2878 5280 0 2878 5211 132/18 Soi Charan Sanit Wong 20, Ban Chang Lo Sub-District, Bangkok Noi District, Bangkok Metropolis 10700 8. Rat Burana 0 2877 5200 0 2877 5226 0 2877 5280 0 2877 5211 21 Rat Burana Rd., Rat Burana Sub-District, Rat Burana District, Bangkok Metropolis 10140 9. Bang Khunthian 0 2841 5200 0 2841 5226 0 2841 5280 0 2841 5211 39 Rama II Rd., Soi 60, Samae Dam Sub-District, Bang Khun Thian District, Bangkok Metropolis 10150

134 Metropolitan Electricity Authority Service Payment Outage Hotline MEA District Call Center 07.30 - 15.00 hrs. 07.30 - 15.00 hrs. 24 hr. 10. Nonthaburi 0 2902 5200 0 2902 5226 0 2902 5280 0 2902 5211 200 Tiwanon Rd., Bang Krasor Sub-District, Muang District, Nonthaburi Province 11000 11. Bang Yai 0 2832 5200 0 2832 5226 0 2832 5280 0 2832 5211 38/2 Moo 10, Bang Kruai-Sai Noi Rd., Bang Len Sub-District, Bang Yai District, Nonthaburi Province 11140 12. Bang Buathong 0 2834 3200 0 2834 3226 0 2834 3280 0 2834 3211 38/2 Moo 10, Bang Kruai-Sai Noi Rd., Bang Len Sub-District, Bang Yai District, Nonthaburi Province 11140 13. Bang Kapi 0 2725 5200 0 2725 5226 0 2725 5280 0 2725 5211 88 Ramkhamhaeng Rd., Suan Luang Sub-District, Suan Luang District, Bangkok Metropolis 10250 14. Samut Prakarn 0 2791 5200 0 2791 5226 0 2791 5280 0 2791 5211 386/1 Sukhumvit Rd., Pak Nam Sub-District, Muang District, Samut Prakan Province 10270 15. Bang Plee 0 2769 5200 0 2769 5227 0 2769 5280 0 2769 5211 70/1 Moo 1, King Kaew Rd., Raja Dewa Sub-District, Bang Plee District, Samut Prakan Province 10540 16. Min Buri 0 2907 5200 0 2907 5226 0 2907 5280 0 2907 5211 24 Moo 13, Suwinthawong Rd., Saen Saep Sub-District, Min Buri District, Bangkok Metropolis 10510 17. Lat Krabang 0 2792 3200 0 2792 3226 0 2792 3280 0 2792 3211 24 Moo 13, Suwinthawong Rd., Saen Saep Sub-District, Min Buri District, Bangkok Metropolis 10510 18. Prawet 0 2769 3200 0 2769 3226 0 2769 3280 0 2769 3211 70/1 Moo 1, King Kaew Rd., Raja Dewa Sub-District, Bang Plee District, Samut Prakan Province 10540

Annual Report 2015 135 Branch Offices Branch Offices Telephone Ta Ling Chan 0 2448 6030 40/1 Moo 2, Mahatthai 1 Village, Phuttha Monthon Sai 1 Rd., Bang Ramat Sub-District, Ta Ling Chan District, Bangkok Metropolis 10170 Dao Kanong 0 2476 9488 1297/7 Somdet Phra Chao Tak Sin Rd., Thon Buri District, Bangkok Metropolis 10600 Phra Pradaeng 0 2463 3368 101 Moo 2, Suk Sawad Rd., Phra Pradaeng District, Samut Prakan Province 10130 Nong Khaem 0 2421 0060 240 Moo 7, Porn Thawiwat Village, Soi Phet Kasem 73/2, Phet Kasem Rd., Nong Khaem District, Bangkok Metropolis 10160 Ploenchit 0 2256 3247 30 Soi Chidlom, Ploenchit Rd., Lumpini Sub-District, Patumwan District, Bangkok Metropolis 10330 Huai Khwang 0 2276 9359 1998/36 Near Huai Khwang Market, Pracha Song Kor Rd., Din Daeng Sub-District, Din Daeng District, Bangkok Metropolis 10400 Nak Niwat 0 2530 6698 49/67-68 Krittikorn Village, Soi Nak Niwat 25, Lat Phrao 71 Rd., Lat Phrao District, Bangkok Metropolis 10230 Bang Bo 0 2338 1472 352 Moo 1, Ratthanarat Rd., Bang Bo Sub-District, Bang Bo District, Samut Prakan Province 10560 Ram Indra 0 2907 5389 135 Soi Ram Indra 52/1, Ram Indra Sub-District, Kannayao District, Bangkok Metropolis 10230 Don Muang 0 2565 3842 157/157-158 Chang Akat Uthit Rd., Thung Song Hong Sub-District, Don Muang District, Bangkok Metropolis 10210 Bang Rak Yai 0 2920 6371 13/14 Moo 4, Ta Ling Chan-Suphanburi Rd., Bang Rak Phatthana Sub-District, Bang Buathong District, Nonthaburi Province 11110 Chatu Chak 0 2272 4480 520 Kamphaeng Phet 2 Rd., Lat Yao Sub-District, Chatu Chak District, Bangkok Metropolis 10900

Low Voltage Customer Service Telephone e-mail Bang Khen 0 2521 7999 [email protected] Bang Yai 0 2920 4534 [email protected] Bang Plee 0 2316 4848 [email protected] Dao Kanong 0 2476 5667 [email protected] 136 Metropolitan Electricity Authority Green Earth Energy

30 Soi Chidlom, Pleonchit Road, Lumpini, Patumwan, Bangkok 10330 Tel. 0 2254 9550, 0 2251 9586 Fax : 0 2253 1424

Website : www.mea.or.th