Office of the Energy Regulatory Commission

Fact Sheet Power Development Fund

Office of the Energy Regulatory Commission

30 September 2016

Fact Sheet: Power Development Fund

Contents

POWER DEVELOPMENT FUND under the Energy Industry Act, B.E. 2550 (2007) ...... 1 1. Background of the Power Development Fund ...... 1 2. Structure and Management of Power Development Fund Money ...... 3 3. Progress of Power Development Fund Operations ...... 6 4. Power Development Fund Performance (as Working Capital) ...... 16 5. Guidelines for Presenting Fiscal Year 2017 Work Plans of Local Power Development Funds under Category A and Category B ...... 17 6. Highlights of the Operations of the Power Development Fund for Development or Rehabilitation of Localities Affected by Power Plant Operation (the Fund Operations under Section 97(3)) ...... 18 7. Public Relations Activities and Exhibitions of Community Project Performance “3-Year Learning and Stepping Forward to Sustainable Development” ...... 28 8. Power Development Fund Awards ...... 30 9. Contact/Coordination Pertaining to the Operation of Power Development Funds in Designated Areas ...... 32

i POWER DEVELOPMENT FUND under the Energy Industry Act, B.E. 2550 (2007)

1. Background of the Power Development Fund

The “Power Development Fund (the Fund)” has been set up under the Office of the Energy Regulatory Commission (OERC) pursuant to the Energy Industry Act, B.E. 2550 (2007), with the following objectives: (1) to be used as a capital to enhance extensive electrification to various localities, (2) to decentralize development to provincial areas, (3) to develop or rehabilitate localities affected by power plant operation, and (4) to promote the use of renewable energy and technologies for electricity industry operation that have minimal impact on the environment, with due consideration of balance of natural resources and fairness to power consumers.

“Operations pertaining to the Fund” will be regulated by the Energy Regulatory Commission (ERC) in compliance with the policy framework prescribed by the National Energy Policy Council (NEPC). The money and assets belonging to the Fund are not subject to remittance to the Ministry of Finance as state revenue under the law on treasury balance and the law on budgetary procedure. The Office of the Energy Regulatory Commission (OERC) is responsible for the receipt, disbursement, keeping and management of the money of the Fund in conformity with the regulations set forth by the ERC, by separating the Fund account from the OERC budget. The operations pertaining to the Fund will be subject to inspection by the Office of the Auditor General of .

“Sources of the Fund” comprise the following: (1) contributions from electricity industry licensees in accordance with the announcements issued by the ERC under the NEPC policy framework, (2) fines collected from electricity industry licensees who violate or fail to comply with ERC orders, (3) donated money or assets, and (4) interest or any benefit incurred from the money or assets of the Fund. In this regard, the ERC has set the criteria, procedures and conditions of sending contributions to the Fund, with distinct account separation according to the operations stipulated in Section 97(1) (2) (3) (4) and (5) pursuant to the regulations issued by the ERC under the NEPC policy framework, with due consideration of impact on power consumers who have to bear the burden of contribution sending to the Fund of electricity industry licensees.

“Deployment of the Fund” will be in compliance with the objectives specified under Section 97 of the Energy Industry Act (2007) and the regulations prescribed by the ERC under the policy framework of the NEPC. The accounts of the Fund spending will be clearly separated by activity, as follows:

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(1) Section 97(1) to compensate and subsidize for electricity industry licensees who have provided services for underprivileged power consumers or to enhance extensive electrification or to support decentralization of development to provincial areas, with the following two objectives: (1.1) To compensate revenue among the Power Utilities to enhance extensive electrification or to support the policy on development decentralization to provincial areas. The Electricity Generating Authority of Thailand (EGAT) (2011-2015) and the Metropolitan Electricity Authority (MEA) will charge power consumers according to the power tariff structure and send contributions to the Fund to be used as revenue compensation to the Provincial Electricity Authority (PEA) at the rate prescribed by the ERC. (1.2) To subsidize electricity industry licensees who have provided services for underprivileged power consumers to enhance and support state policy. Electricity supply licensees will charge power consumers under the following categories: medium general services, large general services, specific business services, non-profit organizations, temporary power customers, interruptible rate customers and reserve power customers, according to the power tariff structure, and send contributions to the Fund to compensate electricity supply licensees for having provided services for underprivileged power consumers pursuant to the state policy and at the rate specified by the ERC.

(2) Section 97(2) to compensate power consumers who have to pay the tariffs at a higher rate as the electricity system control licensee has ordered licensees who operate electricity industry to generate electricity in an unfair and discriminatory manner. In this regard, EGAT is the sole electricity system control licensee.

(3) Section 97(3) to develop or rehabilitate localities affected by power plant operation. Presently, the ERC has issued an announcement pursuant to the policy framework of the NEPC, requiring electricity generation licensees to send contributions to the Fund, which can be divided into two cases, i.e. (1) during the plant construction, at a rate of 50,000 Baht/MW/year and must be no less than 50,000 Baht/year; and (2) during the plant commission, at a rate classified by fuel type used for power generation, ranging from 1-2 satangs/kilowatt-hour (kWh) (or satangs/unit), effective since January 2011, as shown in the following.

Table 1: Contribution Rates to the Power Development Fund imposed on Electricity Generation Licensees during Commission Fuel Satang*/kWh Fuel Satang/kWh Coal, Lignite 2.00 Wind, Solar 1.00 Hydropower 2.00 Biogas, Biomass 1.00 Fuel oil, Diesel 1.50 Residues and wastes 1.00 Natural gas 1.00 Municipal Solid Waste 1.00 Other Renewable Energy 1.00 * 100 Satangs = 1 Thai Baht; approx. 35 Baht = 1 USD

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It is stipulated that the OERC allocate 95% of the obtained contributions for operations under Section 97(3) and 5% as the administrative cost of the Fund for operations under Section 97(6).

(4) Section 97(4) to promote the use of renewable energy and technologies that have minimal impact on the environment, with due consideration of balance of natural resources and fairness to power consumers. The contribution sent to the Fund to be spent on the implementation under Section 97(4) is set at a rate of 0.005 Baht per unit of electricity sale in the billing month, effective since 31 December 2014. Consequently, electricity supply licensees commenced reporting their sending of contributions as from electricity sale in the billing month of January 2015 and started sending contributions to the Fund as from March 2015 onwards.

(5) Section 97(5) to increase knowledge, awareness and participation of the public in power-related issues. The contribution sent to the Fund to be spent on the implementation under Section 97(5) is set at a rate of 0.002 Baht per unit of electricity sale in the billing month, effective since 31 December 2014. Consequently, electricity supply licensees commenced reporting their sending of contributions as from electricity sale in the billing month of January 2015 and started sending contributions to the Fund as from March 2015 onwards.

(6) Section 97(6) to be used as the Fund administration cost, as a reserve in case of emergency to remedy or alleviate, in the first instance, damage caused by power plant operation, and as subsidies for development or rehabilitation of localities which are affected by power plant operation but for which the allocated money from the Fund is insufficient for such development or rehabilitation.

2. Structure and Management of Power Development Fund Money

The Fund management is undertaken by the ERC with assistance of five relevant sub- committees, whose authority and duties can be summarized as follows.

(1) The Energy Regulatory Commission (ERC) being responsible for policy setting and regulation of the Fund operation and money spending, granting approval of the Fund allocation and profit-making, including the appointment of Community Development Committees in areas surrounding power plants (CDCs) to manage the allocated Fund money for operations under Section 97(3) in respective localities and the appointment of sub-committees to assist with the work execution, setting the framework for monitoring and evaluation of the Fund performance as well as any other operation so that the Fund objectives could be achieved.

(2) The Sub-committee on the Screening of Work Plans and Projects under Power Development Fund for Operations under Section 97(3), to deliberate and screen the strategic plan, annual work plan and budget allocation framework of each Power Development Fund in designated

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areas, as proposed for financial support from the Fund, and to recommend to the ERC policy and guidelines for regulating the Fund operations and for efficient Fund money spending. In addition, the Sub-committee has the powers to summon a concerned entity or person to participate in a meeting and to acquire, collect and send or clarify relevant documents and information, as appropriate, and to appoint a consultant or a working group to assist with the work execution of the Sub-committee, and periodically report the outcome of its duty execution to the ERC, as deemed appropriate.

(3) The Sub-committee on the Screening of Projects Promoting the Use of Renewable Energy and Technologies for Electricity Industry Operation, to screen work plans of Power Development Funds for operations under Section 97(4), to consider the screening criteria, to screen project proposals to ensure compliance with specified regulations and criteria, to consider revision of project details without creating any impact on the budget already approved by the ERC, to recommend policy guidelines and approach for management and regulation of the Fund spending under Section 97(4), to invite a concerned entity or person to participate in a meeting and to acquire, collect and send or clarify relevant documents and information as appropriate, to appoint a working group or a person to consider or to perform any task as assigned by the Sub-committee, and to report the outcome of its duty execution to the ERC, including performing other tasks as assigned by the ERC.

(4) The Sub-committee on the Screening of Projects on Public Relations and Increasing Public Participation in Power-related Issues, to set the action plan of the Fund in relation to the increase of knowledge, awareness and participation of the public in power-related issues, pursuant to Section 97(5), and set the criteria for project proposal screening, to screen project proposals according to the programs announced by the ERC to comply with stipulated regulations and criteria pursuant to Section 97(5), for presentation to the ERC for approval. In addition, the Sub- committee is tasked to consider the revision of project details, that are considered necessary without creating any impact on the budget received during the year, based on the work plan already approved by the ERC, and to recommend policy guidelines and approach for management and regulation of the Fund spending under Section 97(5), and to report the outcome of its duty execution to the ERC, including performing other tasks as assigned by the ERC.

(5) The Sub-committee on Evaluation of Power Development Fund Performance, to consider determining the criteria and approach for evaluating the Power Development Fund performance, to monitor and evaluate the Fund performance, to report the outcome of its duty execution and provide recommendations to the ERC. In addition, the Sub-committee has the powers to summon a concerned entity or person to participate in a meeting and to acquire, collect and send or clarify relevant documents and information, and to appoint a consultant or a working group to assist with its work execution, as deemed appropriate.

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(6) The Sub-committee on Power Development Fund Management (as Working Capital), to consider implementing the strategies, work plans and the Fund management guidelines in an efficient and effective manner; to manage the Fund in compliance with relevant rules, regulations and criteria; and to follow up and recommend guidelines on the Fund management to the ERC. The Sub-committee has the powers to appoint a consultant or a working group to assist with its work execution, as deemed appropriate.

In this connection, the Power Development Fund Management Department has been established under the OERC to regulate the Fund implementation, being tasked with the following core duties: to recommend the policy on the Fund regulation and the criteria for receipt and disbursement of the Fund money; to undertake matters relating to finance, accounting and management of the Fund money and prepare a Cash Book Report (report on the receipt and disbursement) of the Fund to the ERC; to determine the management structure and set procedures for the receipt and disbursement of the Fund money, project management as well as follow up and evaluate the outcome, including setting templates of various forms and the format of performance report. In addition, the Department will have to coordinate with consultant teams engaged by the OERC in order to draft regulations necessary for the Fund operation, follow up and evaluate the operation outcome, and develop the accounting system and the information technology system to accommodate the Fund operation in the future.

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3. Progress of Power Development Fund Operations

3.1 Issuance of Regulations, Announcements and Orders related to the Fund Operations

So far, the ERC has issued 52 regulations, announcements and orders related to the Fund operations, as follows:

3.1.1 Issuance of the Regulation of the ERC on Power Development Fund, B.E. 2553 (2010), stipulating an overview of practice concerning the receipt, disbursement, keeping and management of the Fund money. The regulation was published in the Government Gazette on 20 December 2010 and has taken effect since 21 December 2010.

3.1.2 Fund Operations under Section 97(1) – Altogether 16 announcements and orders have been issued by the ERC: Operation Details 1. Revenue 1. Order of the ERC on Sending Contributions to Power Development Fund for Revenue Compensation among Compensation among Power Utilities Power Utilities 2. Order of the ERC No. 76/2554 on Sending Contributions to and Disbursement of Money (9 Orders) from Power Development Fund under Section 97(1) for Revenue Compensation among Power Utilities in 2011 3. Order of the ERC No. 29/2555 on Sending Contributions to and Disbursement of Money from Power Development Fund under Section 97(1) for Revenue Compensation among Power Utilities in 2012 4. Order of the ERC No. 21/2556 on Sending Contributions to and Disbursement of Money from Power Development Fund under Section 97(1) for Revenue Compensation among Power Utilities in 2013 5. Order of the ERC No. 23/2557 on Sending Contributions to and Disbursement of Money from Power Development Fund under Section 97(1) for Revenue Compensation among Power Utilities in 2014 6. Order of the ERC No. 9/2558 on Sending Contributions to and Disbursement of Money from Power Development Fund under Section 97(1) for Revenue Compensation among Power Utilities in 2015 7. Order of the ERC No. 10/2558 on Sending Contributions to and Disbursement of Money from Power Development Fund under Section 97(1) for Revenue Compensation among Power Utilities in 2014 (Amendment) 8. Order of the ERC No. 107/2558 on Sending Contributions to and Disbursement of Money from Power Development Fund under Section 97(1) for Revenue Compensation among Power Utilities in 2015 9. Order of the ERC No. 119/2558 on Sending Contributions to and Disbursement of Money from Power Development Fund under Section 97(1) for Revenue Compensation among Power Utilities during 2016-2017 2. Subsidizing 1. Order of the ERC on Sending Contributions to and Disbursement of Money from Power Underprivileged Power Consumers Development Fund in respect of State Agencies for Subsidizing Underprivileged Power (6 Orders & Consumers 1 Announcement)

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Operation Details 2. Order of the ERC No. 69/2554 on Sending Contributions to and Disbursement of Money from Power Development Fund in respect of State Agencies for Subsidizing Underprivileged Power Consumers (1st Addition) 3. Order of the ERC No. 78/2554 on Sending Contributions to and Disbursement of Money from Power Development Fund in respect of Private Electricity Supply Licensees for Subsidizing Underprivileged Power Consumers 4. Order of the ERC No. 101/2555 on Sending Contributions to Power Development Fund by State-Agency Electricity Supply Licensees for Subsidizing Underprivileged Power Consumers 5. Order of the ERC No. 102/2555 on Sending Contributions to Power Development Fund by Private Electricity Supply Licensees for Subsidizing Underprivileged Power Consumers 6. Order of the ERC No. 177/2555 on Sending Contributions to Power Development Fund by State-Agency Electricity Supply Licensees for Subsidizing Underprivileged Power Consumers 7. Announcement of the ERC on Sending Contributions to and Disbursement of Money from Power Development Fund Imposed on Electricity Supply Licensees for Compensating and Subsidizing Electricity Supply Licensees Who Have Provided Services for Underprivileged Power Consumers, B.E. 2559 (2016) 3.1.3 Fund Operations under Section 97(3) – To ensure smooth operations of Power Development Funds in designated areas, the ERC have issued 24 regulations and announcements, prescribing the operational criteria, as shown in the following:

Operation Details 1. Sending of 1. Announcement of the ERC on Sending of Contributions to Power Development Fund Contributions to for Electricity Industry Licensees with Electricity Generation Licenses, B.E. 2553 the Fund (2010), published in the Government Gazette on 20 December 2010 and effective since 21 December 2010. As a result, the electricity generation licensees are required to send contributions to the Fund based on the amount of their energy generation as from January 2011 onwards 2. Operations of 1. Regulation of the ERC on Power Development Fund for Development or Rehabilitation of Local Power Localities Affected by Power Plant Operation, B.E. 2553 (2010), concerning the Development management of Power Development Fund Monies for a Designated Area, published in the Funds Government Gazette on 8 February 2011 and effective since 9 February 2011 3. CDC Recruitment 1. Announcement of the ERC on the Selection of the Community Development Committee and Appointment in the Area Surrounding a Power Plant, B.E. 2554 (2011), announced on 29 April 2011 (5 Announcements) and effective since 30 April 2011 2. Announcement of the ERC on the Selection of the (Sub-) Development Committee in the Area Surrounding a Power Plant, B.E. 2554 (2011), announced on 29 April 2011 and effective since 30 April 2011 3. Announcement of the ERC on the Steps and Procedures for the Selection of the Community Development Committee in the Area Surrounding a Power Plant and the Tambon Development Committee in the Area Surrounding a Power Plant, B.E. 2554 (2011), announced on 11 August 2011 and effective since 12 August 2011

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Operation Details 4. Announcement of the ERC on the Selection of the Community Development Committee in the Area Surrounding a Power Plant, B.E. 2555 (2012) in the Case where the Number of in the Designated Area Exceeds the Number of People’s Sector Representatives 5. Announcement of the OERC on Discharge from the Office at the Initial Term of the Community Development Committee on the Part of People’s Sector Representatives by Drawing Lots, B.E. 2557 (2014) 4. Criteria for 1. Announcement of the ERC on Criteria for Money Allocation to and Consideration of Allocation of Local Community Projects Financed by the Power Development Fund under Section 97(3), B.E. Power Development 2555 (2012), announced on 5 March 2012 and effective since 6 March 2012 Fund Money 2. Announcement of the ERC on Criteria for Money Allocation to and Consideration of (2 Announcements) Community Projects Financed by the Power Development Fund under Section 97(3), (No. 2), B.E. 2555 (2012), announced on 30 March 2012 with immediate effect 5. Spending of Local 1. Announcement of the ERC on Administrative Cost for the Operation of the Power Power Development Development Fund in a Designated Area, B.E. 2555 (2012), announced on 31 January Fund Money 2012 and effective since 1 February 2012 (4 Announcements) 2. Announcement of the ERC on Administrative Cost for the Operation of the Power Development Fund in a Designated Area (No. 2), B.E. 2555 (2012), announced on 30 March 2012 with immediate effect 3. Announcement of the ERC on Disbursement of Expenses for Training, Seminars and Study Visits Abroad for the Operations of the Power Development Fund for Development or Rehabilitation of Localities Affected by Power Plant Operation, B.E. 2557 (2014), announced on 28 January 2014 and effective since 29 January 2014 4. Announcement of the ERC on Disbursement of Expenses for Training, Seminars and Study Visits Abroad for the Operations of the Power Development Fund for Development or Rehabilitation of Localities Affected by Power Plant Operation (No. 2) B.E. 2557 (2014), announced on 17 June 2014 and effective since 18 June 2014 6. Procurement of 1. Regulation of the ERC on Procurement of the Power Development Fund for Power Development Development or Rehabilitation of Localities Affected by Power Plant Operation, B.E. Fund 2555 (2012), published in the Government Gazette on 19 March 2012 and effective since 20 March 2012 7. Receipt of Money 1. Regulation of the ERC on the Receipt of Money and Assets Donated to the Power and Donated Assets Development Fund for Development or Rehabilitation of Localities Affected by Power from former Plant Operation, B.E. 2555 (2012), announced on 16 July 2012 and effective since 17 Community July 2012 Development Fund 8. Decisions of ERC 1. Decision of ERC Chairman No. 2/2559 on Exemption from Presenting Results of the Chairman Study, Evaluation or Research on Impact of Power Plant Operation in Fiscal Year 2017 (9 Decisions) Work Plans of Power Development Funds, Category B, pursuant to Article 35(3) of the Regulation of the ERC on Power Development Fund for Development or Rehabilitation of Localities Affected by Power Plant Operation B.E. 2553 (2010)

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Operation Details 8. Decisions of ERC 2. Decision of ERC Chairman No. 1/2559 on Granting Power of Attorney by Vice Chairman Chairman of Community Development Committee, pursuant to the Regulation of the (9 Decisions) ERC on Power Development Fund for Development or Rehabilitation of Localities (cont.) Affected by Power Plant Operation B.E. 2553 (2010) 3. Decision of ERC Chairman No. 2/2558 on Exemption from Presenting Results of the Study, Evaluation or Research on Impact of Power Plant Operation in Fiscal Year 2016 Work Plans of Power Development Funds, Category B, pursuant to Article 35(3) of the Regulation of the ERC on Power Development Fund for Development or Rehabilitation of Localities Affected by Power Plant Operation B.E. 2553 (2010) 4. Decision of ERC Chairman No. 1/2558 on Disbursement of Meal, Snack and Beverage Costs for Meetings, Seminars and Training, pursuant to the ERC Announcement on Administrative Costs for the Operation of the Power Development Fund in a Designated Area, B.E. 2555 (2012) 5. Decision of ERC Chairman No. 1/2557 on Exemption from Presenting Results of the Study, Evaluation or Research on Impact of Power Plant Operation in Fiscal Year 2015 Work Plans of Power Development Funds, Category B, pursuant to Article 35(3) of the Regulation of the ERC on Power Development Fund for Development or Rehabilitation of Localities Affected by Power Plant Operation B.E. 2553 (2010) 6. Decision of ERC Chairman No. 4/2555 on Exemption from Presenting Results of the Study, Evaluation or Research on Impact of Power Plant Operation, pursuant to Article 35 of the Regulation of the ERC on Power Development Fund for Development or Rehabilitation of Localities Affected by Power Plant Operation B.E. 2553 (2010), in the Submission of Annual Work Plans and Community Projects of Power Development Funds, Category B, in Fiscal Year 2013 7. Decision of ERC Chairman No. 3/2555 on the Addition of Details of Representatives of the Municipality or Tambon Administrative Organization, under Article 7, paragraph 3, of the Regulation of the ERC on Power Development Fund for Development or Rehabilitation of Localities Affected by Power Plant Operation B.E. 2553 (2010), to Include Representatives of and City 8. Decision of ERC Chairman No. 2/2555 on Granting Power of Attorney by Chairman of Community Development Committee, pursuant to the Regulation of the ERC on Power Development Fund for Development or Rehabilitation of Localities Affected by Power Plant Operation B.E. 2553 (2010) 9. Decision of ERC Chairman No. 1/2555 on Request for Exemption from Compliance with Article 35 of the Regulation of the ERC on Power Development Fund for Development or Rehabilitation of Localities Affected by Power Plant Operation B.E. 2553 (2010), in the Submission of Annual Work Plans and Community Projects in Fiscal Year 2012

3.1.4 In order that the operations of local Power Development Finds would proceed smoothly, the OERC has so far issued an announcement and prepared handbooks pertaining to the Fund operations under Section 97(3), as follows:

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Operation Details 1. Reporting of Project 1. Announcement of the OERC on Determination of the Format for Preparing a Implementation Progress Report on Community Project Implementation Financed by Power Progress Development Fund, B.E. 2555 (2012) 2. Development of 1. Handbook on Development of Strategic Plans and Submission of Annual Work Plans Strategic Plans and in Fiscal Years 2013 – 2015 Submission of Annual 2. Handbook for Screening Annual Work Plans of Power Development Funds under Work Plans Section 97(3) (2 Handbooks) 3. Procurement Operational Handbook on Procurement for Power Development Funds in Designated Areas 4. Finance and Operational Handbook on Finance and Accounting for Power Development Funds in Accounting Designated Areas 5. Category C Funds Handbook for Implementing Community Projects Financed by Power Development Funds, Category C

3.1.5 Fund Operations under Section 97(4) – In order to promote the use of renewable energy, and technology development and improvement, including the study, research, support and demonstration in relation to renewable energy in the electricity industry operation, the ERC has so far issued the following three (3) regulation and announcements to set forth the criteria for the operations:

Operation Details 1. Sending 1. Announcement of the ERC on Sending Contributions to Power Development Fund for Contributions to the Electricity Supply Licensees to Promote the Use of Renewable Energy and Technologies Fund for Electricity Industry Operation with Minimal Environmental Impact, B.E. 2557 (2014), published in the Government Gazette on 30 December 2014 and effective since 3 1 December 2014. As a result, the electricity supply licensees are required to send contributions to the Fund based on the amount of their electricity distribution as from January 2015 onwards. 2. Criteria and 1. Regulation of the ERC on the Criteria and Procedures for Allocating Power Procedures for Development Fund Money to Promote the Use of Renewable Energy and Technologies Allocating the Fund that Have Minimal Impact on the Environment, B.E. 2559 (2016), published in the Money Government Gazette on 30 March 2016, with effectiveness as from 31 March 2016 3. Solicitation for 1. Announcement of the OERC on Solicitation for Project Proposals for Funding from the Project Proposals Power Development Fund for Operations under Section 97(4) for Fiscal Year 2017, 1 st Round, dated 30 September 2016

3.1.6 Fund Operations under Section 97(5) – With a view to increasing power-related knowledge and awareness of the public as well as their participation in power-related issues, the development of information networks and cooperation with relevant agencies so as to bring about economic and efficient use of electricity, the ERC has so far issued the following regulation and announcement to set forth the criteria for the operations:

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Operation Detail 1. Sending 1. Announcement of the ERC on Sending Contributions to Power Development Fund for Contributions to the Electricity Supply Licensees to Increase the General Public Knowledge and Awareness of Fund Power-related Issues, B.E. 2557 (2014), published in the Government Gazette on 30 December 2014 and effective since 31 December 2014. As a result, the electricity supply licensees are required to send contributions to the Fund based on the amount of their electricity distribution as from January 2015 onwards. 2. Criteria and 1. Regulation of the ERC on the Criteria and Procedures for Allocating Power Procedures for Development Fund Money to Increase Knowledge, Awareness and Participation of the Allocating the Fund Public in Power-related Issues, B.E. 2559 (2016), published in the Government Gazette Money on 30 March 2016, with effectiveness as from 31 March 2016.

3.2 Fund Operations under Section 97(1)

The objective is to compensate and subsidize for electricity industry licensees who have provided services for underprivileged power consumers or to enhance extensive electrification or to support decentralization of development to provincial areas, with the following operations:

3.2.1 Revenue compensation among the Power Utilities: In order to compensate electricity industry licensees for having extensively provided power services to various localities, the ERC has issued orders concerning sending contributions to and disbursement of money from Power Development Fund under Section 97(1) to compensate revenue among the Power Utilities for having provided extensive electrification. In this regard, the OERC has collected contributions from the Electricity Generating Authority of Thailand (EGAT) (2011 – 2015) and the Metropolitan Electricity Authority (MEA) to be used as revenue compensation to the Provincial Electricity Authority (PEA) as from Fiscal Year 2011 onwards.

3.2.2 Subsidization for Underprivileged Power Consumers: In order to subsidize electricity industry licensees who have provided services for underprivileged power consumers, the ERC has issued orders concerning sending contributions to and disbursement of money from Power Development Fund under Section 97(1) of electricity supply licensees for subsidizing underprivileged power consumers. Accordingly, the OERC has collected contributions and subsidized underprivileged power consumers pursuant to state policy from four electricity industry operators that are state agencies, i.e. EGAT, MEA, PEA and Sattahip Electric Welfare (SEW), and currently about 139 private electricity supply licensees.

The compensation and subsidization for electricity industry licensees who have provided services for underprivileged power consumers or to enhance extensive electrification under Section 97(1) can be summarized in the following table.

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Table 2: Compensation and Subsidization for Electricity Industry Licensees Who Have Provided Services for Underprivileged Power Consumers or to Enhance Extensive Electrification during Fiscal Years 2011 - 2016 Unit: Million Baht Power Development Fund Fiscal Year Operations under Total 2011 2012 2013 2014 2015 2016 Section 97(1) Revenue compensation 9,706.96 13,291.18 14,191.86 14,404.31 12,455.64 21,045.25 85,095.20 among the PUs Subsidization for under- 2,810.42 8,630.63 3,211.78 3,631.09 3,578.42 2,428.06 24,290.40 privileged power consumers Total 12,517.38 21,921.81 17,403.64 18,035.40 16,034.06 23,473.31 109,385.60

Remarks: Data as at 30 September 2016 3.3 Fund Operations under Section 97(2)

The objective is to compensate power consumers in the case where they have to pay a higher electricity rate because the electricity system operator licensee of EGAT orders electricity generation licensees to generate electricity in an unfair and discriminatory manner. However, the ERC has, so far, not encountered such a case.

3.4 Fund Operations under Section 97(3)

The objective is to develop or rehabilitate localities affected by power plant operation. Regulations and relevant orders have been issued to support development of communities and localities surrounding power plants, by decentralizing the management powers to the community level so as to create a management system with good governance, transparency and accountability. The performance in this regard can be summarized as follows.

3.4.1 Determination of Designated Areas and Appointment of Community Development Committees

According to the Regulation of the ERC on Power Development Fund for Development or Rehabilitation of Localities Affected by Power Plant Operation, B.E. 2553 (2010), it is stipulated that the OERC, by and with ERC approval, will issue announcements on determination of designated areas which are beneficiaries of financial support from the Fund, covering Tambons (sub- ) within the diameter of 1 or 3 or 5 kilometers surrounding a power plant, depending on the amount of electricity generation in a year. So far, the OERC has announced the establishment of 318 local Power Development Funds, as shown below.

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Table 3: Summary of the Determination of Power Development Fund Designated Areas

Fiscal Year Fund Category 2011 2012 2013 2014 2015 2016 Category A 10 11 11 12 12 12 Category B 28 40 40 49 55 55 Category C 107 107 1041/ 1002/ 214 251 Total 145 158 155 161 281 318 Remarks: Data as at 30 September 2016 1/ Certain Category C Funds have been merged with Category B Funds due to overlapping designated areas. 2/ Certain Category C Funds have been reclassified as Category B Funds

Presently, the Power Development Fund designated areas covers areas of 67 provinces across the country, which can be divided, based on the Fund management categories, into the following: - Category A Funds cover community development areas in 10 provinces: Lampang, Saraburi, Phra Nakhon Si Ayutthaya, , Rayong, Chachoengsao, Ratchaburi, Nakhon Si Thammarat, , and Samut Prakan.

- Category B Funds cover community development areas in 33 provinces: Phichit, Tak, Uttaradit, Kamphaeng Phet, Nakhon Sawan, Lopburi, Phetchabun, Khon Kaen, Kalasin, Ubon Ratchathani, Roi-et, Chaiyaphum, Nakhon Ratchasima, Surin, Saraburi, Sa Kaeo, Prachinburi, Phra Nakhon Si Ayutthaya, Ang Thong, Pathum Thani, Chonburi, Rayong, Chachoengsao, Suphanburi, Kanchanaburi, Ratchaburi, Phetchaburi, Krabi, Surat Thani, Yala, Samut Prakan, Nonthaburi, and Bangkok.

- Category C Funds cover community development areas in 63 provinces: Chiang Rai, Chiang Mai, Mae Hong Son, Lampang, Lamphun, Kamphaeng Phet, Tak, Phichit, Phitsanulok, Phrae, Sukhothai, Chai Nat, Nakhon Sawan, Phetchabun, Lopburi, Sing Buri, Uthai Thani, Khon Kaen, Nakhon Phanom, Bueng Kan, Loei, Sakhon Nakhon, Nong Khai, Nong Bua Lam Phu, Udon Thani, Kalasin, Maha Sarakham, Mukdahan, Roi Et, Si Sa Ket, Ubon Ratchathani, Chaiyaphum, Nakhon Ratchasima, Buri Ram, Surin, Nakhon Nayok, Pathum Thani, Prachin Buri, Phra Nakhon Si Ayutthaya, Saraburi, Ang Thong, , Chachoengsao, Chonburi, Trad, Kanchanaburi, Nakhon Pathom, Samut Sakhon, Suphan Buri, Chumphon, Prachuap Khiri Khan, Phetchaburi, Ratchaburi Krabi, Trang, Nakhon Si Thammarat, Phang-nga, Phuket, Surat Thani, Pattani, Songkhla, Satun and Bangkok.

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In order that the CDC recruitment would proceed smoothly, the OERC has cooperated with the Ministry of Interior in carrying out the recruitment of the people’s sector representatives to be members of Power Development Fund committees in designated areas. The performance in this regard is shown in Table 4.

Table 4: Results of the Recruitment and Appointment of CDC (Category A and B Funds) and Municipality or Tambon Administrative Representatives Organization (Category C Funds) Fiscal Year Fund Category 2012 2013 2014 2015 2016 Category A 10 11 11 11 12 Category B 28 37 38 44 55 Category C - - 45 147 2083/ Total 38 48 94 202 267 Remarks: Data as at 30 September 2016 3/ For Category C Fund operations, the appointment of representatives of the municipality or Tambon Administrative Organizations in designated areas is underway for 43 Funds.

3.4.2 Budget Allocation for Local Power Development Funds

During Fiscal Years 2012 - 2017, the ERC has approved the annual budget for local Power Development Funds as follows:

Table 5: Summary of Annual Budget for Local Power Development Funds Unit: Million Baht The Fund Money for Fiscal Year 4/ Operations under Total 2012 2013 2014 2015 2016 20175/ Section 97(3) Category A & B Funds 1,856.16 2,538.70 2,055.40 3,188.42 3,542.38 2,366.54 15,547.60

Administration 144.31 193.00 248.77 202.10 284.33 272.98 1,345.49

Community Projects 1,711.85 2,345.70 1,806.63 2,986.32 3,258.05 2,093.56 14,202.11

Category C Funds - - - 57.63 118.97 56.29 232.89

Total 1,856.16 2,538.70 2,055.40 3,246.05 3,661.35 2,422.83 15,780.49 Remarks: 4/ Since Fiscal Year 2013, the approved budget included the residual budget from previous years. 5/ The ERC approved the Fund money allocation framework for operations under Section 97(3) in Fiscal Year 2017 at its Meeting No. 9/2016 (389th) on 24 February 2016.

3.4.3 Approval of Budget for Community Project Implementation

As from Fiscal Year 2012 onwards, the ERC has approved Annual Work Plans of Power Development Funds in designated areas for the management and community project implementation to bring about benefits to local residents surrounding the power plants, as shown in the following:

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Table 6: Summary of Approved Annual Work Plans of Category A and B Funds Unit: Million Baht Annual Work Plans Approved by the ERC Fiscal Year No. of No. of Community Administration Total Funds Projects Project 2012 37 4,524 141.45 1,539.55 1,681.00 2013 50 5,366 202.31 1,402.39 1,604.70 2014 52 6,398 248.77 1,806.63 2,055.40 2015 55 6,109 195.59 2,083.99 2,279.58 2016 67 6,491 235.23 2,670.74 2,905.97 2017 6/ 21 3,409 134.80 886.12 1,020.93 Total 32,297 1,158.15 10,389.42 11,547.58 Remarks: Data as at 30 September 2016 6/ Pending submission to the ERC for budget approval

Table 7: Summary of Approved Annual Work Plans of Category C Funds Unit: Million Baht Already Allocated to Local Funds No. of Approved Budget Fiscal Year No. of No. of Budget Funds (Million Baht) Funds Projects (Million Baht) 2015 95 57.43 75 232 42.95 2016 7/ 221 130.24 138 477 82.00 Total 187.67 138 709 124.95 Remarks: Data as at 30 September 2016 7/ Proposed budget was less than approved budget. Representatives of 72 Category C Funds have requested to include the remaining budget in the Fiscal Year 2017 budget because project submission could not be made in time and the residual budget totaled 2.28 million Baht. The OERC will further present the request to the ERC. 3.5 Fund Operations under Section 97(4)

The objective is to promote the use of renewable energy and technologies that have minimal impact on the environment. In this connection, the ERC has issued the Regulation of the ERC on the Criteria and Procedures for Allocating Power Development Fund Money to Promote the Use of Renewable Energy and Technologies that Have Minimal Impact on the Environment, B.E. 2559 (2016), which was published in the Government Gazette on 30 March 2016.

On 30 September 2016, the OERC issued an announcement inviting project proposals for funding from the Fund under Section 97(4), with a total funding allocation not exceeding 650 million Baht for operations under Section 97(4) in Fiscal Year 2017, 1st Round, divided into four programs, comprising: (1) Promotion and Demonstration of Renewable Energy Utilization in Electricity Industry Operation, with a budget not exceeding 195 million Baht; (2) Development and Improvement of Technologies for Electricity Industry Operation that Are Efficient and Create Minimal Impact on the Environment, with a budget not exceeding 195 million Baht; (3) Study and Research on Renewable Energy and Technologies for Electricity Industry Operation that Are Efficient and Create Minimal

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Impact on the Environment, with a budget not exceeding 162.50 million Baht; and (4) Administration – the costs for supporting the operation, with a budget not exceeding 97.50 million Baht. It is expected that the announcement on the Fund money allocation under Section 97(4) can be made as from September 2017 onwards.

3.6 Fund Operations under Section 97(5)

The objective is to increase knowledge, awareness and participation of the public in power- related issues. The ERC has issued the Regulation of the ERC on the Criteria and Procedures for Allocating Power Development Fund Money to Increase Knowledge, Awareness and Participation of the Public in Power-related Issues, B.E. 2559 (2016), which was published in the Government Gazette on 30 March 2016. It is expected that the announcements on solicitation for project proposals for funding and on the Fund money allocation under Section 97(5) can be made as from September 2017 onwards.

3.7 Fund Operations under Section 97(6) The objective is to be used for three aspects of the Fund administration, i.e. (1) as the Fund administration cost; (2) as a reserve in case of emergency to remedy or alleviate, in the first instance, damage caused by power plant operation; and (3) as subsidies for development or rehabilitation of localities which are affected by power plant operation but for which the allocated money from the Fund is insufficient for such development or rehabilitation under the annual budget approved by the ERC.

4. Power Development Fund Performance (as Working Capital)

The OERC has conducted the performance evaluation of the Power Development Fund (as working capital) since Fiscal Year 2014.

Table 8: Summary of Performance Evaluation of the Power Development Fund (as Working Capital)

Performance in Fiscal Year Dimension 2016 2014 2015 (Preliminary) 1. Finance 4.8100 3.9227 5.0000 2. Response to Benefits of Stakeholders 4.0800 3.5000 3.2775 3. Operations 3.6667 4.8943 4.5750 4. Working Capital Management & Improvement 4.7800 4.7917 4.9217 Total 4.3692 4.4389 4.4620

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5. Guidelines for Presenting Fiscal Year 2017 Work Plans of Local Power Development Funds under Category A and Category B

5.1 The ERC has approved the Guidelines for Presenting Fiscal Year 2017 Work Plans of Local Power Development Funds under Category A and Category B. According to the guidelines, the CDC is required to develop a 3-Year Strategic Plan (2017 – 2019) and the Annual Work Plan for Fiscal Year 2017 under the budget framework approved by the ERC, to be presented to the ERC for consideration. In this regard, a community project prepared for submission for a budget must be able to make the budget commitment within the fiscal year. However, any project with continual implementation for about 3-5 years, e.g. a project on engagement of teachers and a project on large-scale construction, can be proposed, and its budget disbursement shall be made on an annual basis. In this connection, for a project with a committed contract using the expense budget of a local Power Development Fund for more than one year, its total required budget must not exceed 20% of the expense budget of the following year.

5.2 In order to materialize projects that contribute to sustainable community development, which will eventually lead to a strong community, with the development direction that better corresponds with the Fund objectives, it is stipulated that the community project budget be divided for large-scale projects pursuant to the state policy, large-scale projects of the government sector, community projects with a budget over 300,000 Baht, and community projects with a budget lower than 300,000 Baht, at the following ratios:

Category B Funds Budget ≤5 million Budget Community Project Category A Budget Baht/year >5 - ≤20 Budget Ratio Funds >20 million and Local Power million Baht/year Development Baht/year Funds of Hydro- power Projects Large-scale Pursuant to the state 10% 10% Project policy Not specified 8/ Government sector No less than (large-scale project) No less than No less than 60% Community project 60% 60% (budget >300,000 Baht) Small-scale Community project No more than No more than No more than Project (budget ≤300,000 30% 30% 40% Baht) Remarks: 8/ No ratio is specified for Local Power Development Funds of hydropower projects.

5.3 The ERC has set the criteria for proposing community projects for Fiscal Year 2017, requiring local Power Development Funds to propose large-scale projects pursuant to the state policy, which has designated Fiscal Year 2017 as the “Year of Health and Education.” In addition, importance should

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primarily be given to community project implementation according to the following five programs in developing the Annual Work Plans for Fiscal Year 2017 (projects under other stipulated programs can still be proposed): (1) Program 1: Enhancement of quality of life, health and well-being; (2) Program 2: Career development; (3) Program 5: Quality of life improvement; (4) Program 6: Development of education, religion, local cultures and traditions; and (5) Program 8: Environmental conservation and rehabilitation, respectively.

6. Highlights of the Operations of the Power Development Fund for Development or Rehabilitation of Localities Affected by Power Plant Operation (the Fund Operations under Section 97(3))

6.1 Categories of Power Development Funds in Designated Areas According to the Regulation of the ERC on Power Development Fund for Development or Rehabilitation of Localities Affected by Power Plant Operation, B.E. 2553 (2010), effective since 9 February 2011, it is stipulated that a Power Development Fund committee in a designated area be established to manage the Fund monies in each area. The committee components will differ based on the category of the Fund management, as can be summarized below.

Fund Category Category A Category B Category C Allocated > 50 M Baht > 1 M Baht - ≤ 1 M Baht Money/Year ≤ 50 M Baht Fund CDC: 15-35 members CDC: 15-35 members Municipality/Tambon Management TDC: ≥ 7 members Administration Organization (TAO) representatives: ≤ 3 members Office Term - CDC: 4 years, CDC: 4 years, Not specified and not more than 2 and not more than 2 consecutive terms. consecutive terms. At the initial term, after At the initial term, two years’ time, half of the after two years’ time, committee members shall be half of the committee discharged by drawing lots. members shall be - TDC: 2 years, discharged by drawing and not more than 2 consecutive lots. terms.

CDC means a Community Development Committee in the areas surrounding a power plant, comprising: representatives of the people’s sector, the number of which must be no less than two thirds; representatives of the government sector and qualified persons, the number of which is not more than one third. A CDC will be appointed by the ERC. TDC means a Tambon (Sub-district) Development Committee in the areas surrounding a power plant, comprising: representatives of the people’s sector, the number of which must be no less than two thirds (one from each village or community); and representatives of other sectors, the number of which is not more than one third. A TDC will be appointed by the CDC.

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6.2 Management Categories of Power Development Funds in Designated Areas In managing Power Development Funds in designated areas, the components and the authority and duties of Power Development Fund committees will be based on the Fund categories, as briefed in the following:

Fund Committee Committee Components Community Development 1. CDC members representing the people’s sector: no less than two Committee (CDC) thirds. 2. CDC members representing the government sector, and qualified persons: no more than one third, whereby: 2.1 Government sector representatives, comprising a representative selected by the concerned Provincial Governor, representatives of the Ministry of Energy (max. 2 persons), and a representative of the OERC. 2.2 Qualified persons: max. 3 persons. In this regard, the ERC will consider appointing a Chairman, no more than two Vice-Chairpersons and other Committee Members. The OERC representative will be the Committee Member & Secretary, and a representative of the power plant in the designated area will be Assistant Secretary. Tambon Development 1. TDC members representing the people’s sector: the number will be Committee (TDC) equal to the number of villages in a given Tambon and will be no less than two thirds of the total TDC members. 2. Other TDC members, e.g. the sub-district headman; village headmen; representatives of academic institutions, community organizations, community networks, youth councils, religious places and mass media: the number will be no more than one third of the total TDC members. The TDC shall organize a meeting to elect its Chairman, Vice-Chairman and Secretary from the TDC members and present the TDC name list, as a whole, to the CDC Chairman for appointment.

Fund Committee Authority and Duties in Brief Community 1. Determine areas of eligible Fund beneficiaries. Development Committee (CDC) 2. Formulate and propose a strategic plan, an annual work plan and a money allocation plan. 3. Encourage and support a survey on the impact of power plant operation to help formulate proposals to improve the concerned designated area. 4. Encourage a survey on the needs of local residents and power plant operation impact to serve as input for the formulation of community projects. 5. Consider and approve community projects, including monitoring the execution of community project contracts/agreements, and disburse money for the project

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Fund Committee Authority and Duties in Brief implementation. 6. Supervise the account recording and report the financial status of the Power Development Fund in the concerned designated area to the OERC, quarterly and annually. 7. Follow up, examine and evaluate the community project performance and report to the OERC. 8. Engage and appoint an auditor, including engaging persons to assist with the work execution, as deemed appropriate. 9. Publicize and disseminate information about the Power Development Fund in the designated area and its achievements to the general public. 10. Promote and support participation of various sectors in the designated area in the Fund operation, including cooperation networking with CDCs in other designated areas. 11. Appoint a sub-committee to consider or carry out any task as assigned by the CDC. 12. Supervise and carry out the operation in line with the ERC’s directives. 13. Propose relevant additional regulations to the ERC for consideration, as necessary. 14. Perform any other task as assigned by the ERC or the OERC in order to achieve the objectives of the management of Fund monies for a designated area. Tambon 1. Survey the needs of local residents and the impact of power plant operation to Development serve as input for the formulation of community projects. Committee (TDC) 2. Formulate a master plan for community or Tambon development for sustainable development. 3. Promote and support the formulation of community projects, by organizing public forums at Tambon or village level. 4. Follow up and evaluate the community project performance and report to the CDC. 5. Encourage provision of knowledge about the Power Development Fund to local residents in the designated area, including publicizing and disseminating information and performance of the Power Development Fund in the designated area. 6. Receive petitions and address the problems in the first instance and report the matters to the CDC. 7. Perform any other task as assigned by the CDC in order to achieve the objectives of the management of Fund monies for a designated area.

Municipality/ Develop community projects via organizing public forums at Tambon level and Tambon prepare the money disbursement plan of each project, in compliance with the Administration Organization (TAO) annual work plan framework, approved by the ERC. In this connection, Representatives beneficiaries of funding allocation must be government agencies.

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6.3 Recruitment of Power Development Fund Committees in Designated Areas

In order to recruit the Power Development Fund committee in a designated area, the OERC will undertake the following:

6.3.1 Issue an OERC announcement, by and with the ERC’s consent, determining a designated area (a list of villages surrounding a given power plant), the Fund management category and the number of CDC members.

6.3.2 Carry out public relations activities to provide local residents and the general public with information about the Power Development Fund and the recruitment of CDCs and TDCs, via appropriate channels, i.e. the OERC website (www.erc.or.th), announcement posting, leaflets, posters, banners, radio spots and local broadcasting towers in designated areas, printed matters, TV spots and the mass media in the central and provincial areas, as deemed appropriate.

6.3.3 Liaise with government agencies for their cooperation in carrying out the recruitment of Power Development Fund committee members in a designated area, as follows:

(1) For the recruitment of members of the Community Development Committee in the areas surrounding a power plant (CDC), the OERC has liaised, in writing, with relevant agencies to undertake the following:

(1.1) Recruitment of the people’s sector representatives – the District Headman, or an equivalent government officer, in the designated area is requested to encourage village councils to organize a public forum at village level to recruit one representative from each village, and then the District Headman, or an equivalent government officer, shall hold a meeting among the village representatives in that Tambon (sub-district) to select among themselves Tambon representatives, at the number prescribed by the ERC;

(1.2) Recruitment of the government sector representatives – the Provincial Governor, supervising the area where a concerned power plant is located, and the Permanent Secretary of Energy are requested to consider and select representatives to be CDC members representing the government sector, at the number prescribed by the ERC;

(1.3) Recruitment of qualified person/expert representatives – the OERC Regional Office responsible for the area where the power plant is located will coordinate and invite the selected CDC members representing the people’s and government sectors to a meeting in order to propose names of qualified persons/experts and make a selection thereof to be CDC members, at the number prescribed by the ERC.

When the recruitment of CDC members representing all concerned sectors in each area is completed, the OERC Regional Office responsible for the area where the power plant is located will present the outcome to the Secretary General of the OERC to further present the name list of

21 Fact Sheet: Power Development Fund recruited CDC members, as a whole, to the ERC for consideration and appointment of a Chairman, a Vice-Chairman and Members of the CDC.

(2) For the recruitment of members of the Tambon Development Committee in the area surrounding a power plant (TDC), at the initial term:

(2.1) Recruitment of the people’s sector representatives – the District Headman, or an equivalent government officer, in the designated area is requested to encourage village councils to hold a public forum at village level to select one representative from each village; this will be conducted on the same occasion as that of the recruitment of CDC members representing the people’s sector at the initial term;

(2.2) Recruitment of other TDC members – the District Headman, or an equivalent government officer, in the designated area is requested to encourage village councils to make an announcement inviting applications to be TDC members representing other sectors, in compliance with the method prescribed by the OERC, and present the name list of applicants together with qualification testimonials to the District Headman, or an equivalent government officer, who will organize a meeting of recruited village representatives of the people’s sector in order to select TDC members representing other sectors, at the number prescribed by the ERC. In the case where TDC members representing other sectors cannot be recruited, the recruited village representatives of the people’s sector can, instead, propose the names of TDC members representing other sectors.

When the name list of TDC members representing all concerned sectors is obtained, the District Headman, or an equivalent government officer, in the designated area will notify, in writing, the name list of recruited TDC members, together with qualification testimonials, to the OERC so that a meeting would be organized to elect a Chairman, a Vice-Chairman and a Secretary, and then the name list of recruited TDC members, as a whole, will be presented to the CDC for consideration and appointment of the TDC.

(3) With regard to the recruitment of municipality or Tambon Administration Organization (TAO) representatives to manage the money of local Power Development Funds, Category C, the OERC will liaise, in writing, with the Provincial Governor in a designated area to consider and appoint no more than three (3) municipality or TAO representatives in the designated area to manage the implementation under the Category C Funds.

In this connection, district headmen in designated areas will be invited by the OERC to participate in a seminar to get a detailed explanation on the objectives and procedures of the mentioned recruitment. Public relations campaigns at Tambon level will also be arranged to explain the implementation to village councils in order to create their understanding. After that, the village councils commenced disseminating the information at local level for a period of no less than 15 days prior to

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holding their respective village or community-level forums to recruit representatives of the people’s sector in their respective CDCs and TDCs.

6.4 Work Execution of the Committees of Local Power Development Funds

The Community Development Committees (CDC) will manage the operation of local Power Development Funds in compliance with the ERC regulations and announcements as well as the handbook prepared by the OERC in carrying out the following tasks:

6.4.1 Formulation of an Annual Work Plan. A CDC must formulate its annual work plan, in line with the instructions prescribed in the OERC handbook, for submission to the Provincial Governor supervising the area where a given power plant is located, for additional comments prior to submission to the ERC for further consideration. As for the operation in Fiscal Year 2012, which was the first year of the local Power Development Fund implementation, the ERC relaxed certain conditions concerning the annual work plan formulation, i.e. a work plan for Fiscal Year 2012 could comprise at least the following: (1) Money allocation framework under the local Power Development Fund management; (2) Outcome of the survey on the needs of people in the designated area; (3) Annual action plan; and (4) Estimated administrative cost.

As for the formulation of annual work plans for Fiscal Years 2013-2015, the ERC stipulated that a strategic plan be developed for Category A and B Funds, including the outcome of the study, evaluation or research on the impact of power plant operation for Category A Funds (with exemption for Category B Funds), so that the formulation of the annual work plans would be more comprehensive, as stipulated under Article 35 of the Regulation of the ERC on Power Development Fund for Development or Rehabilitation of Localities Affected by Power Plant Operation, B.E. 2553 (2010).

6.4.2 Local Power Development Fund Management. The ERC has set forth the budget framework for the spending of local Power Development Fund money, divided into two major portions:

(1) Annual Administrative Budget of the CDC – at a maximum rate of 15% of the allocated budget in each year, depending on the amount of allocated money, as shown in the following table.

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Rate of Administrative Max. Accumulated Administrative Allocated Budget Budget Budget of Each Step (%) (Million Baht)

≤ 5 M Baht 15.0 0.750 > 5 – 10 M Baht 12.5 1.375 > 10 – 50 M Baht 10.0 5.375

> 50 – 100 M Baht 7.5 9.125 > 100 – 150 M Baht 5.0 11.625

> 150 M Baht 2.5 > 11.625

In this regard, the administrative budget of the CDC will comply with the Announcement of the ERC on Administrative Cost for the Operation of the Power Development Fund in a Designated Area, B.E. 2555 (2012), and as amended.

(2) Community Project Implementation Budget – at a rate of no less than 85% of the allocated budget in each year. The concerned CDC or TDC (in the case of Category A Fund) must organize a civil society forum at village or Tambon level to survey the needs of the people and allow those who wish to propose a project to prepare the proposed community project document, pursuant to the format prescribed by the OERC. The application for funding from the local Power Development Fund will have to comply with the criteria framework set forth by the ERC, contributing to the following 11 aspects: (1) enhancement of quality of life, health and well-being; (2) career development; (3) agricultural development; (4) community economy development; (5) quality of life improvement; (6) development of education, religion, local cultures and traditions; (7) community development; (8) environmental conservation and rehabilitation; (9) spending on an emergency and a relief for those in trouble; (10) Capacity building of persons dealing with the Power Development Fund; (11) any other project and program that contributes to community development in designated areas, as approved by the ERC. When the presentation of community projects is completed, the TDC (in the case of Category A Fund) will screen the proposed projects for submission to the CDC for approval, in compliance with the criteria set forth by the ERC, by prioritizing the approved projects and incorporating them into the annual work plan. In addition, the CDC must notify, in writing, the outcome of community project consideration to those who presented the projects within 30 days as from

24 Fact Sheet: Power Development Fund the date of completion of community project consideration and must publicize the outcome to inform the general public in the designated area.

6.5 Public Participation in the Power Development Fund Operation

The OERC wishes to publicize the Power Development Fund operation and urges people residing in surrounding areas of power plants as well as interested persons to keep abreast of detailed information about ERC regulations and announcements, the determination of designated areas under individual local Power Development Funds and progress of the Fund performance via the OERC website. Local residents in designated areas can take part in managing the Fund operation via various channels as follows:

1. Participation in a public forum at village or community level to select a village representative to be a member of the Community Development Committee (CDC).

2. Participation in a public forum at village level that will be organized by the CDC or TDC in each designated area in order to propose community projects to be financed by the local Power Development Fund to ensure that the projects reflect actual needs of local residents and contribute to the development of your community.

3. Participation in the follow-up, inspection and evaluation of the performance of the local Fund committees as well as the spending of money from the local Funds to ensure that the implementation is in compliance with the regulations set forth by the ERC so as to create transparency, fairness and accountability.

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6.6 Progress of the Establishment of Local Power Development Funds, Category A and B To date, the OERC has presented the name lists of CDC committees to the ERC for consideration, and appointment has been completed for 67 Funds, divided into 12 Category A Funds, and 55 Category B Funds, as detailed in the following.

OERC Province of Category A Fund Category B Fund Regional Power Plant Location 12 Funds 55 Funds Office 1 1. Lampang 1. PDF: Mae Moh, Lampang (Chiang Mai) Province

2 2. Phichit 1. PDF: A.T. Bio-Power Co., Ltd. (Phitsanulok) 3. Tak 2. PDF: 1 4. Uttaradit 3. PDF: Sirikit Dam Power Plant, 5. Kamphaeng Phet 4. PDF: Lan Krabue Power Plant,

3 6. Nakhon Sawan 5. PDF: 1 (Nakhon Sawan) 7. Lopburi 6. PDF: 1 8. Phetchabun 7. PDF: 3 4 9. Khon Kaen 8. PDF: Nam Phong District, Khon Kaen (Khon Kaen) 9. PDF: 1 10. PDF: Khon Kaen Province 2 11. PDF: Khon Kaen Province 4 5 10. Kalasin 12. PDF: Mitr Kalasin Sugar Co., Ltd. (Ubon 11. Ubon Ratchathani 13. PDF: Dam Power Plant, Ratchathani) Ubon Ratchathani Province 14. PDF: Pak Mun Dam Power Plant, Ubon Ratchathani Province 12. Roi-et 15. PDF: Roi-et Province 1

6 13. Chaiyaphum 16. PDF: Mitr Phol Bio-Power Co., Ltd. (Nakhon 17. PDF: Chulabhorn Dam Power Plant, Ratchasima) 14. Nakhon Ratchasima 18. PDF: Lam Takhong Dam Power Plant, Nakhon Ratchasima Province 15. Surin 19. PDF: Nakhon Ratchasima Province 4 20. PDF: 1 21. PDF: Surin Province 2

7 16. Saraburi 2. PDF: 1 22. PDF: TPI Polene Power Co., Ltd. (Saraburi) 3. PDF: Gulf JP NS Co., Ltd. 23. PDF: Saraburi Province 2 17. Sa Kaeo 24. PDF: 1 25. PDF: Sa Kaeo Province 2 18. Prachinburi 26. PDF: 1 27. PDF: Prachinburi Province 2 19. Phra Nakorn Si 4. PDF: Wang Noi Power 28. PDF: Phra Nakorn Si Ayutthaya Ayutthaya Plant, Phra Nakorn Si Province 2 Ayutthaya Province 29. PDF: Panjapol Pulp Industry Co., Ltd. 5. PDF: Gulf JP UT Co., Ltd. 30. PDF: Phra Nakorn Si Ayutthaya Province 4 20. Ang Thong 31. PDF: Thai Carbon Black Co., Ltd. 21. Pathum Thani 32. PDF: 1

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OERC Province of Category A Fund Category B Fund Regional Power Plant Location 12 Funds 55 Funds Office

8 22. Chonburi 6. PDF: Chonburi Province 1 33. PDF: Chonburi Province 2 (Chonburi) 34. PDF: Chonburi Province 3 23. Rayong 7. PDF: Map Ta Phut Industrial 35. PDF: 1 Estate, Rayong Province 36. PDF: Rayong Province 2 8. PDF: Bangpakong, 37. PDF: IRPC Plc. 24. Chachoengsao 38. PDF: Gulf JP NNK Co., Ltd. 39. PDF: Chachoengsao Province 1 9 25. Suphanburi 40. PDF: Suphanburi Province 2 (Kanchanaburi) 26. Kanchanaburi 41. PDF: 2 42. PDF: Kanchanaburi Province 5 43. PDF: Kanchanaburi Province 8 10 27. Ratchaburi 9. PDF: 1 44. PDF: Tri Energy Co., Ltd. (Ratchaburi) 45. PDF: Ratchaburi Province 2 28. Phetchaburi 46. PDF: Kang Krajan Dam Power Plant, 11 29. Nakorn Si Thammarat 10. PDF: Khanom (Surat Thani) 30. Krabi 31. Surat Thani 47. PDF: Krabi Power Plant 48. PDF: Rajjaprabha Dam Power Plant,

12 32. Songkhla 11. PDF: Chana Power Plant, (Songkhla) 33. Yala 49. PDF: Gulf Yala Green Co., Ltd. 50. PDF: Bang Lang Dam Power Plant and Ban Sunti Dam Power Plant,

13 34. Samut Prakan 12. PDF: Samut Prakan 51. PDF: Samut Prakan 1 (Bangkok) Province 3 52. PDF: Samut Prakan 2 53. PDF: Eastern Power & Electric Co., Ltd. 35. Nonthaburi 54. PDF: North Bangkok Combined Cycle Power Plant 36. Bangkok 55. PDF: Bangchak Oil Refinery, Bangkok

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7. Public Relations Activities and Exhibitions of Community Project Performance “3-Year Learning and Stepping Forward to Sustainable Development”

A showcase for the performance of community projects financed by the Power Development Fund was organized by the OERC, illustrating the achievements of community project implementation that have brought about sustainable benefits. The objectives were to disseminate information about the Fund performance, to create knowledge and understanding, to exchange knowledge and experiences and to create positive attitude towards the Fund. The general public was invited to join the event and buy products derived from community projects in areas surrounding power plants of various occupational groups, which was a channel to increase income of the local community. At this event, community representatives from local Power Development Funds were given the opportunity to display their project achievements and products. In addition, an exhibition providing knowledge about the Fund entitled “Power Development Fund: 3-Year Learning and Stepping Forward to Sustainable Development” was displayed during 13-15 August 2014 at Chamchuri Square Building in Bangkok. The event consisted of three main activities: Activity 1: Exhibition, entitled “Welcome to the Power Development Fund,” to provide information about the background, role and duty of the Power Development Fund as well as way of life of the community in areas surrounding a power plant.

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Activity 2: Stage Performance, “Provide Happiness to the Community Surrounding Power Plants,” comprising folk music and dance, local culture of the community surrounding power plants, including a panel discussion on the topic, “Does the Power Development Fund genuinely bring happiness to the local community?” and interviews with community representatives.

Activity 3: Demonstration and Sale of Products of Local Occupational Groups as well as booth exhibitions of local people in areas surrounding power plants under the theme, “Cherish Local Wisdom by Buying Products of Local Community Surrounding Power Plants,” by displaying and selling such products as local artwork, handicrafts and basketry which are famous local products of each community.

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8. Power Development Fund Awards

In Fiscal Year 2016, the 5th year of the management of Power Development Funds in designated areas, the OERC has launched a public relations campaign, “Power Development Fund Awards,” to disseminate the performance of Power Development Funds in designated areas so that all stakeholders could be informed and could properly participate in the operations of local Power Development Funds. Importantly, this activity will help develop and improve the operation and management of local Power Development Funds to be more efficient, having a good managerial system with good governance, transparency, accountability as well as sustainability.

With regard to the outstanding community project competition, the consideration criteria framework comprises five aspects, namely: 1) effectiveness, 2) efficiency, 3) impact, 4) response to the needs, and 5) sustainability. In addition, two projects that obtain the top total scores in each region will receive the Winner Prize and the First Runner-up, respectively. The awards are divided by region as follows: (1) Outstanding Community Projects in the Northern Region, (2) Outstanding Community Projects in the Central Region, (3) Outstanding Community Projects in the Eastern and Northeastern Regions, (4) Outstanding Community Projects in the Southern and Western Regions.

8.1 10 Outstanding Power Development Fund Awards, comprising 5 Outstanding Category A Fund Awards, and 5 Outstanding Category B Fund Awards, as follows:

Prize Outstanding Category A Fund Outstanding Category B Fund Winner PDF: Chana Power Plant, Songkhla PDF: IRPC Plc. (1 prize) Province 1st Runner-up PDF: Mae Moh, PDF: Ratchaburi Electricity Generating (1 prize) Co., Ltd. 2nd Runner-up PDF: Ratchaburi Province 1 PDF: North Bangkok Combined Cycle (1 prize) Power Plant Complimentary Awards PDF: Wang Noi Power Plant, Phra PDF: Chonburi Province 2 (2 prizes) Nakorn Si Ayutthaya Province PDF: Chonburi Province 1 PDF: Eastern Power & Electric Co., Ltd.

8.2 3 Outstanding Performance Awards:

Prize Power Development Fund Outstanding Performance Award: Effectiveness PDF: Ratchaburi Electricity Generating Co., Ltd. Outstanding Performance Award: Stakeholders PDF: Chonburi Province 3 Outstanding Performance Award: Management PDF: Chonburi Province 3 Outstanding Performance Award: Learning and Development No awardee

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8.3 8 Outstanding Community Project Awards: (1) Northern Region: 2 awards Budget Prize Project Power Development Fund (Baht) Winner Capacity Building Project: Development of 89,700 PDF: Mae Moh, Lampang Good-minded Youth in Folk Music, Ban Province Wiang Sawan, Moo 9 1st Runner-up Construction Project: Water Pump Station with 100,000 PDF: Sirikit Dam Power Plant, an Elevated Platform Uttaradit Province

(2) Central Region: 2 awards Budget Prize Project Power Development Fund (Baht) Winner Library Project, Phraeksa School 745,000 PDF: 1

1st Runner-up Training Project: Mushroom Cultivation and 277,550 PDF: Wang Noi Power Plant, Support for Infected Mushroom Loaf Production, Phra Nakorn Si Ayutthaya Province Moo 3, Wang Chula sub-district, Wang Noi District, Phra Nakorn Si Ayutthaya Province (3) Eastern and Northeastern Regions: 2 awards

Fiscal Budget Prize Project Power Development Fund Year (Baht) Winner Project of Mud Mee Silk Weaving Group, 2015 92,820 PDF: Nam Phong District, (1 prize) Moo 3, Muang Wan Sub-district, Nam Khon Kaen Province Phong District, Khon Kaen Province 1st Runner-up Construction Project: Thai Traditional 2015 1,000,000 PDF: Chonburi Province 3 (1 prize) Medicine Building, Map Pong Tambon Health Promoting Hospital

(4) Southern and Western Regions: 2 awards Budget Prize Project Power Development Fund (Baht) Winner Construction Project: Village Organic 310,000 PDF: Kanchanaburi Province 8 (1 prize) Fertilizer Plant, Moo 1, Lin Thin Sub-district 1st Runner-up Construction Project: Khlong Por Semi- 102,000 PDF: Rajjaprabha Dam Power (1 prize) permanent Check Dam Plant, Surat Thani Province

The competition results announcement and awards conferring ceremony has been scheduled by the OERC on 9 December 2016, which is during the month of the OERC inauguration. On this occasion, the general public is invited to participate in this activity by voting for their favorite community project, with a chance to win the prizes which are tickets for an educational trip, totaling 10 prizes (2 tickets each). For more details, please visit the website: www.powerdevelopmentfund.com or http://www.facebook.com/pdfaward/.

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9. Contact/Coordination Pertaining to the Operation of Power Development Funds in Designated Areas

The OERC has established 13 OERC Regional Offices to enhance its extensive work execution, particularly in providing services to energy consumers, electricity industry operators and interested general public, and to support the undertakings of the Ministry of Interior and the Bangkok Metropolitan Administration concerning the recruitment of members of the Community Development Committees and Tambon Development Committees, including following up the performance of Power Development Funds in designated areas. Details of the location and contact of each OERC Regional Office are given below.

OERC Regional Office Provinces under Responsibility Contact Region 1: Chiang Rai, Phayao, Lampang, Mr. Phromphong Wongmaneenil 2nd Fl., Airport Business Park Bld., Lampoon, Chiang Mai and (Director, RO 1) 90 Mahidol Rd., Hai-ya Sub-district, Mae Hong Son Tel: 0 5320 3433-4 Mueang Chiang Mai District, 0 5327 1718 Chiang Mai 50100 Fax: 0 5327 1719 Region 2: Nan, Phrae, Uttaradit, Sukhothai, Mr. Ruangchai Songsambhao Thai Siwarat Bld., 1st Fl., Tak, Kamphaeng Phet, Phitsanulok (Director, RO 2) 59/15 Borom Tri Lokanart 2 Rd., and Pichit Tel: 0 5525 2924 Nai Mueang Sub-district, Fax: 0 5525 2725 Mueang District, Phitsanulok 65000

Region 3: Nakhon Sawan province Phetchabun, Nakhon Sawan, Uthai Mr. Boon Sawadchai 1045/2, 3rd Fl., Moo 10, Nakhon Thani, Chai Nat, Sing Buri and (Director, RO 3) Sawan-Phitsanulok Rd., Lopburi Tel: 0 5622 1991-2 Nakhon Sawan Tok Sub-district, Fax: 0 5622 1991 ext. 105 Mueang Nakhon Sawan District, Nakhon Sawan 60000

Region 4: Khon Kaen province Nongkhai, Nakhon Phanom, Sakon Mr. Vinij Sriubon Kaen Nakorn Office Park Bld., 3rd Fl., Nakhon, Udon Thani, Nong Bua (Director, RO 4) 11 Srithad Prachasanti Rd., Lam Phu, Loei, Tel: 0 4322 8338-9 Khon Kaen and Bueng Kan Nai Mueang Sub-district, Fax: 0 4322 8338 Mueang District, Khon Kaen 40000

Region 5: Ubon Ratchathani province Mukdahan, Kalasin, Mr. Patipan Kaewrinkwa 130 Klang Aa-wut Rd., Maha Sarakham, Roi-et, Yasothorn, (Director, RO 5) Mueang District, Amnatcharoen, Tel: 0 4531 2280 - 1 Ubon Ratchathani and Si Sa Ket Ubon Ratchathani 34000 Fax: 0 4531 2281

Region 6: Nakhon Ratchasima Chaiyaphum, Nakhon Ratchasima, __(Vacant)___ province Burirum and Surin (Director, RO 6) 1318/1 Suranarai Rd., Nai Mueang Tel: 0 4425 7888-9 Sub-district, Mueang District, Fax: 0 4425 7892 Nakhon Ratchasima 30000

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OERC Regional Office Provinces under Responsibility Contact Region 7: Saraburi province Ang Thong, Phra Nakorn Si Mr. Meca Chaimanagarn 12/1 Mittraphab Rd., Ayutthaya, Saraburi, (Director, RO 7) Pak Priew Sub-district, Pathum Thani, Nakorn Nayok, Tel: 0 3622 3048-9 Prachinburi and Sa Kaeo Mueang District, Saraburi 18000 Fax: 0 3622 3019

Region 8: Chonburi province Chachoengsao, Chonburi, Rayong, Mr. Kritalux 139 Moo 1, Phraya Sajja Rd., Chanthaburi and Trad (Director, RO 8) Samet Sub-district, Mueang Chonburi Tel: 0 3811 3487-9 District, Chonburi 20000 Fax: 0 3811 3486 Region 9: Kanchanaburi province Kanchanaburi, Suphanburi, Nakorn Mr. Nopporn Subhensawang 284/87 Saengchuto Rd., Pathom and (Director, RO 9) Ban Neua Sub-district, Samut Sakhon Tel: 0 3451 7505 Mueang Kanchanaburi District, Fax: 0 3451 7506 Kanchanaburi 71000

Region 10: Ratchaburi province Ratchaburi, Samut Songkhram, Mr. Komsorn Pornsopon 49/4 Phetkasem Rd. (old route), Phetchaburi, Prachuap Khiri Khan, (Director, RO 10) 9/ Na Mueang Sub-district, Chumphon and Ranong Tel: 0 3232 8503-4 Mueang District, Ratchaburi 70000 Fax: 0 3232 8505

Region 11: Surat Thani province Surat Thani, Phang-nga, Phuket, Mr. Meesak Dacharatanawichai P.C. Tower, 2nd Fl., Krabi, Nakorn Si Thammarat and (Director, RO 11) 91/1 Moo 1, Kanchanawithee Rd., Trang Tel/Fax: 0 7728 5312-3 Bang Kung Sub-district, Mueang District, Surat Thani 84000

Region 12: Songkhla province Phatthalung, Satun, Songkhla, Mr. Werasak Werathammo General Prem Tinsulanonda Historical Pattani, Yala and Narathiwat (Director, RO 12) Park Foundation Bld., Tel: 0 7433 0309 - 10 888, Moo 2, Phawong Sub-district, Fax: 0 7433 0309 -10 ext. 18 Mueang Songkhla District, Songkhla 90100

Region 13: Bangkok Bangkok, Nonthaburi and Mr. Pairaj Suwanaratana 18/23 Wish House Bld., 1st Fl., Samut Prakan (Director, RO 13) Moo 10, Nakhon-in Rd., Tel: 0 2525 2544 Talat Khwan Sub-district, Fax: 0 2525 2504 Mueang District, Nonthaburi 11000

Remarks: 9/Mr. Komsorn Pornsopon was appointed Director of RO 10 on 28 November 2016.

For more information, please contact: Office of the Energy Regulatory Commission Power Development Fund Management Department 319 Chamchuri Square Building, 20th Floor Phaya Thai Road, Pathumwan Sub-district Pathumwan District, Bangkok 10330 Tel: 02 207 3599 Fax: 02 207 3572 E-mail: [email protected] http:\\www.erc.or.th Facebook.com/powerfundpage

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