Content 2 Vision and Mission Statement 68 Executives 4 About EGAT 78 Corporate Governance 5 Financial Overview 81 Official Information Act Compliance Report 8 Message from the Chairman 83 Power Development and Future Plan 10 Report of the Audit Committee 95 Organization and Human Resource 12 Economic and Electricity Overview Development 14 Operations 97 Corporate Social Responsibility 24 Nature of Business of EGAT and Affiliates 108 Events 30 Analysis of Operating Results and Financial 114 Key Statistical Data Position 120 Auditor’s Report 38 Enterprise Risk Management 123 Financial Statements 44 Organization Chart 208 Audit Fee 45 Structure of Organizational Management 58 Board of Directors 2

Vision

“Being a world-class organization in electricity business” EGAT aims to achieve excellence in all areas and to be comparatively among the global top quartile in electricity. Being a leading organization, EGAT targets to be an organization of:

orporat forman eration ationa inancia C e er c p a N l F l P e O l GOOD HIGH EXCELLENCE PRIDE VIABILITY G O O e r n l o c g io p a N l Fi l vernan anizat eration ationa nancia

1. Good corporate governance 4. National pride 2. High performance organization 5. Financial viability 3. Operational excellence

Mission

• To generate, acquire, supply or sell electricity • To conduct electricity-related businesses and other businesses related to EGAT’s activities including production and sale of lignite according to the EGAT Act B.E. 2511 (1968) (Amended in B.E. 2535) (1992) 3

Core Culture

Loyalty, Excellence, Integrity

Corporate Value

F : Fairness I : Integrity R : Responsibility & Accountability M : Mutual Respect C : Commitment to Continuous Improvement and Teamwork

Strategic Objectives

To achieve its vision, EGAT’s strategic objectives are as follows:

1. Strengthening the efficiency of the core business to be at the global top quartile level 2. Growing in electricity business 3. Being the national pride 4. Supporting the sustainable growth of the organization 4

About EGAT

The Electricity Generating Authority of Regulatory Commission, EGAT is the producer and Thailand (EGAT) was established by virtue of the supplier of electricity and controls over the electricity EGAT Act B.E. 2511 (1968) on May 1, 1969. Being production and distribution throughout the country to a state enterprise in the area of energy under the be efficient and adequate for the demand in parallel Ministry of Energy with the Ministry of Finance as with environmental management for the community major shareholder, EGAT is responsible for generating, and society. acquiring, and supplying electricity to the Metropolitan Electricity Authority (MEA), Provincial Electricity EGAT Headquarters is situated at No. 53, Authority (PEA), legal power users, and neighboring Moo 2, Charansanitwong Road, Bang Kruai District, countries such as Malaysia. EGAT is also responsible Nonthaburi Province 11130. The Transmission System for power related activities and service, producing and Operation has 5 offices. Two are in Nonthaburi Province, selling lignite and its by-products under the EGAT Act and the rest are in Phitsanulok, Khon Kaen, and Krabi B.E. 2511 (1968) and its amendment B.E. 2535 (1992). Provinces.

At present, the operation of EGAT is in accordance with the Electricity Supply Industry whereby, under the supervision of the Energy 5

Financial Overview

Unit : Million Baht

2016 2015 2014 (Adjusted) (Adjusted) Operating Performance

Revenues from sales and services 496,883.00 546,480.33 557,080.18 Income from sales and services 79,338.68 72,166.45 60,848.68 Gains (Losses) on foreign exchange 1,201.99 (11,996.27) 774.21 Finance costs 41,700.70 31,685.73 25,679.05 Net income - EGAT and its subsidiaries 43,866.68 31,270.42 39,162.18 Net income - Non-controlling interests 3,336.72 1,579.00 3,321.54

Financial Position

Total assets 956,547.31 876,492.83 734,965.04 Property, plant and equipment - net 276,496.24 273,251.44 259,020.27 Total liabilities 555,623.83 495,819.65 362,101.69 Long - term loans 75,906.32 75,816.28 81,874.41 Owners' equity and non-controlling interests 400,923.48 380,673.19 372,863.35

Financial Ratios

Gross profit to net sales (percentage) 19.28 16.29 13.99 Net profit to net sales (percentage) 9.50 5.99 7.63 Return on total assets (percentage) 5.15 4.07 5.89 Debt to equity ratio (time) 1.39 1.30 0.97 Time interest earned (time) 2.15 2.08 2.70

Remark * Financial ratios for the years 2016, 2015 and 2014 are calculated from the financial statements prepared in accordance with Financial Reporting Interpretations No. 4 and Accounting Standard No. 17.

The guiding light of the Thai people The contribution of His Majesty King Bhumibol Adulyadej to the Thai people has brought great prosperity to the country. The first project, Bhumibol Dam, was the multipurpose project which has largely benefited irrigation, agriculture, electricity, communication, and others. The dam has also originated the Electricity Generating Authority of Thailand (EGAT). 8

Message from the Chairman

Thailand in the year 2016 suffered a great loss from the passing of His Majesty King Bhumibol Adulyadej. All Thai people mourn the passing of our beloved monarch whom we give high reverence.

His Majesty King Bhumibol Adulyadej was the EGAT is grateful for the benevolence of His soul of nation. Throughout 70 years of his reign, His Majesty King Bhumibol Adulyadej, His Majesty King Majesty performed a lot of royal duties. Among these Maha Vajiralongkorn Bodindradebayavarangkun, and were his countless visits to various villages in remote the royal family graciously extended to EGAT in various areas all over the country. With great concern about the occasions including the inauguration of EGAT’s dams well-being of his subjects particularly the problem of and power plants and the names granted to EGAT’s insufficient water resource for farmers which were the dams. Such benevolence will be an encouragement majority of the people, His Majesty gave an initiative in for EGAT in performing its mission with utmost effort making use of the water resource and the by-product for the benefit of the people. in electricity generation. From this initiative, a large number of royal initiated projects on water resource In 2016, EGAT has implemented the project development and electricity generation have been in and conducted activities on the royal contributions to existence throughout the country. EGAT was honored the country of His Majesty King Bhumibol comprising to take part in the construction of dams and reservoirs 9 areas namely 1) Sustainable country development of several projects. 2) Invention and innovation 3) Forest and water conservation 4) Sufficiency and overcoming poverty 5) His Majesty also gave importance to forest Farmers care 6) Education 7) Saving 8) Dedication and resource by conserving the fertility of the upstream donation 9) Promoting good people. The activities have forest, forest restoration, and reforestation. Focus was been held with participation of all sectors in EGAT’s given to natural reforestation together with planned sites across the country and will last until 2017. reforestation. Responding to the royal initiative, EGAT has prepared and implemented several reforestation For EGAT’s operation in 2016, EGAT was projects since 1994. Presently, the total number of the successful in supplying sufficient electricity to meet planted trees which have survived and grown is more the power demand. The overall net peak demand of than 80 million covering an area of over 460,000 rai. EGAT power system was 29,618.80 MW representing an increase of 2,273.00 MW or 8.31 percent of the previous Based on His Majesty’s “Sufficiency Economy” year. The total net energy generation requirement of philosophy, EGAT has implemented a project on EGAT system in 2016 was 188,999.64 million kilowatt- “Biological Way of Life for Sustainable Development” hours (kWh) or an increase of 3.02 percent. The main with the objective of developing the quality of life of contributor to the increasing demand for power was the communities around EGAT’s power plants, dams, a continual growth of the household expense and the and transmission lines. From 1999 until today, there public investment, whereas the export of services and are 32 model communities countrywide which serve goods had a rebound growth. as learning centers and activities concerning the implementation of His Majesty’s philosophy for the In 2016, the country’s power system had a benefit of individual and entire community. total installed generating capacity of 41,556.25 MW, 7 percent higher than the prior year comprising Amidst the grief of the kingdom, it was a 16,385.13 MW from EGAT’s power plants contributing delight for the Thai people when Crown Prince Maha to 39.43 percent of the system and 25,171.12 MW Vajiralongkorn accepted the enthronement as the from independent power producers (IPPs), small tenth monarch of the Chakri dynasty. To the invitation power producers (SPPs), and import from neighboring of President of the National Legislative Assembly for countries accounting for 60.57 percent of the system. the enthronement, the Crown Prince affirmed that he would “fulfill the wish of His Majesty King Bhumibol and In power generation, electricity of 67,765.92 for the benefits of the Thai people” and would maintain million kWh was from EGAT’s power plants representing “the royal knowledge” of the King Father for the best 35.86 percent and electricity purchased from private interest of the Kingdom. power producers and abroad was 121,233.72 million kWh representing 64.14 percent. The country’s energy 9

mix for electricity generation included 66.00 percent the Office of the Vocational Education Commission. from natural gas, 23.16 percent from domestic coal Concerning the progress of the construction of 8 and from Hongsa Power Plant in Lao PDR, 10.09 learning centers all over the country, 4 centers have percent from domestic and foreign renewable energy been completed and are in operation. The learning (hydropower and others), 0.57 percent from bunker centers promote knowledge, understanding, and oil and diesel, 0.06 percent from electricity purchase constructive ideas in energy development and energy through the Thai – Malaysian transmission network conservation among the interested people and the system, and 0.12 percent from others. EGAT’s energy youth which will be an important basis for future sales totaled 185,046.51 million kWh, an increase of energy development. 3.07 percent from the previous year. For the Demand Side Management (DSM) In 2016, EGAT started to implement the which is another important mission, in 2016, EGAT has Ministry of Energy’s policy “Energy 4.0” which been successful in reducing electric energy of 204.9 supports the government policy “Thailand 4.0” in MW and carbon dioxide emission of 657.5 thousand driving its operation. The important principle for the tons. Since the implementation of DSM project, the implementation of “Energy 4.0” policy is to upgrade total electric energy reduction is 4,208 MW, and carbon the efficiency of the present energy system and to use dioxide emission reduction is 14,356 thousand tons. appropriate innovation in the development of future electricity operation. All systems will be developed to On behalf of EGAT Board of Directors and EGAT be in “smart form”. Among the examples, “smart grid” Executives, I would like to express my gratitude to all which will become a part of “smart city” is a system in stakeholders for their continued support. It is hopeful which the energy producers and users can interact that further support will be received for the prosperity through the information system. Other development of the electricity operation of the country. projects include the microgrid project which has already been started in Mae Hong Son Province, energy storage system, and preparation for the use of electric vehicles.

Moreover, EGAT has incorporated the concept of firm renewable energy management based on the “Energy 4.0” policy in its proposal to the Ministry of Energy to add the projects on renewable power to the target of Alternative Energy Development Plan during 2015-2036 (AEDP2015). The renewable power projects will include biomass, waste, wind power, and solar energy with a focus on modern innovation and will be implemented in the original site. Examples of these projects are floating solar cell project and projects on construction of biomass power plants using hybrid energy plants and firm power plants. The alternative energy development of EGAT will enhance the security of the electricity system and reduce the use of fossil fuel and carbon dioxide emission in power generation which is in line with the direction of the world energy development. The alternative energy development will also strengthen agricultural community on long term basis with the complete use of agricultural by-products and energy crops in power generation.

In the social and environmental development, EGAT has completed its reforestation project covering an area of 20,000 rai, increased the number of model (Mr. Areepong Bhoocha-Oom) communities under the Project on Biological Way of Life Chairman, Board of Directors for Sustainable Development to be 32, and expanded Electricity Generating Authority of Thailand (EGAT) cooperation in the project with 69 colleges under 10

Report of the Audit Committee

The Audit Committee, appointed by the EGAT Board of Directors, consists of three members selected from independent directors of the EGAT Board of Directors. One member, at least, shall be knowledgeable and have experience in finance and accounting. EGAT Assistant Governor - Internal Audit Bureau serves as secretary of the Audit Committee.

The Audit Committee has independently performed its duties in accordance with the procedures set forth in Audit Committee Charter to enhance good corporate governance.

In 2016, the Audit Committee held 10 meetings to discuss relevant agenda with EGAT Executives and the independent auditor (from the Office of the Auditor General of Thailand). The significant issues can be summarized as follows:

1. Review of Financial Statements • Discussing with the top executives and the management of each unit to consider risk • Reviewing with the Governor, Deputy management, internal control systems, and Governor - Account and Finance, and the process monitoring of key activities within independent auditor from the Office of the their respective units to provide the best Auditor General of Thailand, on the monthly, interests for EGAT’s operations. quarterly, and annual financial statements of EGAT and its subsidiaries to consider the appropriateness of the reports and to 4. Review of Good Corporate Governance give useful recommendations to ensure the accuracy and reliability of the reports • Reviewing the corporate governance with adequate disclosure of important process and the conflict of interest report to information, in accordance with generally comply with the good corporate governance accepted accounting principles. principles and the best practice.

• Discussing with the Governor and the independent auditor on the development of 5. Review of Compliance the internal control systems. • Reviewing the operations to ensure compliance with relevant regulations, orders, 2. Review of the Independent Audit’s Scope and and laws including the requirements of the Processes regulators relating to EGAT’s activities. • Reviewing and discussing with the independent auditor on the scope and 6. Review of the Evaluation Reports of the processes of the auditing practices and Governor’s Performance the performance of the auditor to enhance • Reviewing the evaluation reports of the good coordination and reduce duplication Governor’s Performance (Mr. Soonchai of efforts. Kumnoonsate) for the period of July 1 - December 31, 2015 and the period of January 3. Review of Risk Management and Internal 1 – June 12, 2016. Control • Reviewing EGAT’s risk management and internal control system to consider the sufficiency, appropriateness, and coverage of all significant issues. 11

7. Oversight of the Internal Audit Bureau 9. Conduct of the Audit Committee’s Self- • Approving the Annual Audit Plan of 2017 and Assessment and Submission of the Report of Three-year Strategic Audit Plan (2017-2019) the Audit Committee to EGAT Board of Directors including consideration of the sufficiency of • Conducting the self-assessment of the Audit the resources to perform the activities. Committee and an individual member of • Approving the performance assessment of the Audit Committee annually based on the the Internal Audit Bureau for the year 2016. guidelines for practice of the audit committee of the state enterprises set forth by Ministry • Reviewing the quarterly internal audit reports of Finance for submission to EGAT Board of EGAT and its subsidiaries and continuous of Directors to enhance the effectiveness, follow-up on the correction and improvement transparency, and reliability of the Audit in accordance with the audit comments. Committee.

• Providing the Report of the Audit Committee 8. Review of the Charter of the Audit Committee for submission to EGAT Board of Directors, and Internal Audit Ministry of Energy, and Ministry of Finance. • Reviewing the appropriateness of EGAT Audit Committee Charter, EGAT Internal Audit Charter, and the Internal Audit Manual to ensure the coverage of the roles and responsibilities of the Audit Committee and the Internal Audit function.

The Audit Committee believed that throughout the year 2016, EGAT had maintained effective risk management, internal control systems, and corporate governance practices which enabled EGAT’s operations to meet the set objectives. EGAT’s financial statements were also prepared in accordance with the generally accepted accounting principles and were presented with adequate information disclosure. EGAT also operated in complete compliance with laws, rules, and regulations with no significant deficiency. In performing their duties, members of the Audit Committee expressed their opinions independently and provided straightforward recommendations to the Management and concerned parties to ensure the maximum benefits for all concerned parties.

(Mr. Porametee Vimolsiri)

Chairman of the Audit Committee January 17, 2017 12

Economic and Electricity Overview

In 2016, the overall peak demand of EGAT power system was 29,618.80 MW occurring at 22.28 hours on Wednesday, May 11, 2016 representing an increase of 2,273.00 MW or 8.31 percent of the previous year. The total net energy generation requirement throughout 2016 rose to 188,999.64 million kWh from 183,466.84 million kWh of the previous year. This marked an increase of 5,532.80 million kWh or 3.02 percent.

Yearly Peak Generation Requirement

The net energy demand in 2016 grew at a For 2017, it has been predicted that the considerable rate due to a robust growth of exports overall peak demand of EGAT power system will be and public investment as well as the continual growth approximately 30,303 MW or an increase of 2.31 of household expense, while the expenditure of the percent from that of the previous year, whereas the government slowed down. In manufacturing sector, total net energy generation requirement will be hotel and restaurant business grew at a significant 191,697 million kWh or an increase of 1.51 percent rate, whereas transportation, construction, wholesale from 2016. and retail, and industry also expanded continuously. Moreover, the agricultural sector showed rebound growth for the first time in eight quarters. 13

The National Economic and Social sector continues to be satisfactory. It is expected that Development Board (NESDB) has predicted export value will grow by 2.4 percent, whereas private that Thailand economic growth in 2017 will be consumption and total investment will expand by approximately 3.0 - 4.0 percent. The supporting 2.7 and 5.0 percent respectively. Headline inflation is factors are the gradual increase of export which expected to be in the range between 1.0 - 2.0 percent, will help support the industrial manufacturing and and the current account balance will be in a surplus of private investment, the recovery and acceleration of 10.2 percent of Gross Domestic Product (GDP). agricultural production, and the high expansion of public investment, while the driving force from tourism 14

Operations

EGAT’s Total Contract Capacity In 2016, the total contract capacity in EGAT 3.02 percent. The average net energy per day in 2016 system was 41,556.25 MW comprising 16,385.13 MW was 517.81 million kWh, increasing by 15.16 million from EGAT power plants contributing to 39.43 percent kWh or 3.02 percent from the previous year (502.65 of the system, 14,948.50 MW from independent million kWh). power producers (IPPs) which was 35.97 percent of the system, 6,345.02 MW from small power producers In 2016, EGAT’s electricity generation still relied (SPPs) accounting for 15.27 percent of the system, and on natural gas as the main fuel which could generate 3,877.60 MW from power import contributing to 9.33 the net energy of 124,761.16 million kWh or 66.00 percent of the system. percent of the total generated and purchased power. Next to natural gas was coal which could generate the net energy of 35,098.82 million kWh or 18.57 percent. Power Generation and Purchase The net electric power of 8,004.71 million kWh or 4.24 percent was generated from renewable energy The overall peak demand of EGAT power (hydropower and other renewable energy), whereas system was 29,618.80 MW occurring at 22.28 hours 19,831.47 million kWh or 10.50 percent purchased on Wednesday, May 11, 2016 representing an increase from abroad. Electricity of 1,075.41 million kWh or 0.57 of 2,273.00 MW or 8.31 percent of the previous year percent was generated from bunker oil, palm oil, and (27,345.80 MW at 14.02 hours on Thursday, June 11, diesel, and 228.07 million kWh or 0.12 percent from 2015). others. The total net energy generation requirement throughout the year 2016 rose to 188,999.64 million kWh from 183,466.84 million kWh of the previous year. This marked an increase of 5,532.80 million kWh or 15

In 2016, the following new power plants were added to the power system. Contractual Commercial Capacity Operation Date (MW) (COD)

EGAT Power Plants 1. North Bangkok Power Plant (Block 2) 828 January 15, 2016 2. Bang Lang Dam (Upgraded) 4 July 11, 2016 3. Thap Sakae Solar Power Plant 5 September 15, 2016 Independent Power Producers (IPPs) 1. Khanom Electricity Generating Public Co., Ltd. (Block 2) 930 June 19, 2016 Foreign Power Producers 1. Hongsa Co. Ltd (Hongsa Power Plant), (Unit 3) 491 March 2, 2016 Firm Small Power Producers (SPPs Firm) 1. B Grimm BIP Power 2 Ltd. 90 January 1, 2016 2. PPTC Co., Ltd. 90 March 29, 2016 3. Top SPP Co., Ltd. (Project 1) 90 April 1, 2016 4. Ang Thong Power Co., Ltd. 90 May 4, 2016 5. Top SPP Co., Ltd. (Project 2) 90 June 1, 2016 6. Nawanakhon Electricity Co., Ltd. 90 June 1, 2016 7. Amata B. Grimm Power 5 Co., Ltd. 90 June 1, 2016 8. Bowin Clean Energy Co., Ltd. 90 November 1, 2016 9. SSUT Co., Ltd. (Project 1) 90 December 29, 2016 10. SSUT Co., Ltd. (Project 2) 90 December 3, 2016 Non-firm Small Power Producers (SPPs Non-firm) 1. EA Solar Phitsanulok Co., Ltd. 90 April 1, 2016 2. Thai Ekaluck Power Co., Ltd. 38 April 7, 2016 3. Khao Kor Wind Power Co., Ltd. 60 August 5, 2016 4. Chaiyaphum Wind Farm Co., Ltd. 80 December 16, 2016 5. Watabak Wind Co., Ltd. 60 December 24, 2016 6. Wind Energy Development Co., Ltd 50 December 29, 2016 16

Fuel Consumption In 2016, natural gas supply for EGAT’s electricity generation was derived from various gas fields in the Gulf of Thailand and on-land (Nam Phong, Sin Phu Hom, and Sirikit fields) and imported from Myanmar (Myanmar field and LNG). Natural gas utilization by EGAT’s power plants amounted to 343,985 billion BTU costing 76,029 million Baht. The amount of natural gas used by the IPPs’ power plants was 401,817 billion BTU costing 92,321 million Baht. Therefore, the total amount of natural gas used in electricity generation was 745,802 billion BTU. The average price of natural gas (including marketing and piping charges) was 225.73 Baht/million BTU. The total price was 168,350 million Baht.

Natural Gas Utilization in terms of Amount, Price, and Value (2014-2016)

Year Power Plant Gas Utilization Price1 Value2 Billion BTU (%) (Baht/Million BTU) (Million Baht)

2014 757,140 100 312.00 236,230

EGAT 388,530 51 119,955

IPPs 368,611 49 116,276

2015 788,442 100 280.63 221,262

EGAT 387,992 49 105,136

IPPs 400,450 51 116,125

2016 745,802 100 225.73 168,350

EGAT 343,985 46 76,029

IPPs 401,817 54 92,321

Remark 1. The price of natural gas is the average price of natural gas purchased by EGAT power plants including marketing and piping charges. 2. The value of natural gas includes marketing and piping charges but does not include the value-added tax (VAT). 17

From the table and the chart, it is obvious that Energy Industry Act, B.E. 2550 (2007). The criteria in the use of natural gas as fuel in power generation in allowing the third party to access or connect to the gas 2016 was lower than that in 2015 due to the reduction transmission system or LNG station (Third Party Access in electricity generation of several power plants of EGAT Regime: TPA Regime) has been established. particularly Wang Noi Power Plant and the former Bang Pakong Power Plant which have been in operation for The project of construction of floating storage several years and are about to be decommissioned. and regasification unit (FSRU) has been initiated by Moreover, with the existence of several new and more EGAT as a public utility to support the imported LNG. In efficient power plants since 2015, the power generation accordance with the resolution of the 5/2016 meeting th of old power plants had been reduced. (10 meeting) of the National Energy Policy Committee on December 8, 2016, EGAT has been assigned The average price of natural gas in 2016 to implement the project of floating storage and decreased by 20 percent as the global oil price became regasification unit of 5 million tons per year with the lower since the end of 2014 resulting in a continued objective of supplying natural gas to North Bangkok lower price of natural gas since 2015 until 2016. In Power Plant and South Bangkok Power Plant with the 2016, the value of natural gas purchased for electricity completion date of 2024. generation decreased by 52,912 million Baht or 24 percent of the year 2015. EGAT’s floating storage and regasification unit will be Thailand’s second storage of LNG which As the amount of natural gas reserve used in will enhance the security of the natural gas network Thailand has a tendency to be lower continuously both system. The import of LNG by EGAT is, moreover, the in the gas fields in the Gulf of Thailand and imported diversification of sources of imported LNG which will from Myanmar, whereas the natural gas demand support the security of energy system of Thailand. continues to increase particularly for electricity generation. It is therefore necessary to import more amount of liquefied natural gas (LNG) to meet the rising demand. At the same time the regulatory body has a policy in promoting competition in the price of natural gas in the market and transparency in maximizing the public utility in energy network system resulting in an efficient allocation of the resource under the 18

Energy Sales EGAT’s energy sales totaled 185,046.51 million downward 54 Baht/million BTU (the average price kWh. Its sales included 56,585.63 million kWh sold to decreased to 240 Baht/million BTU in 2016 from 294 the Metropolitan Electricity Authority (MEA), 125,798.07 Baht/million BTU in 2015) though the exchange rate million kWh to the Provincial Electricity Authority (PEA), weakened 1.02 Baht/USD (weakened from 34.44 Baht/ 1,591.85 million kWh to direct customers, 899.75 million USD in 2015 to 35.46 Baht/USD in 2016). Moreover, kWh to neighboring countries (Lao PDR, Malaysia, and the expense for promoting power purchase from Cambodia) and 171.21 million kWh to the customers renewable energy according to the government policy, purchasing electricity for temporary and standby use comprising Adder and FiT, increased approximately and other kinds of customers. 8,441 million Baht (increased 30,921 million Baht in 2016 from 22,480 million Baht in 2015) resulting in the lower cost of electricity generation. Furthermore, Energy Adjustment Charge (Ft tariff) as EGAT had managed the electricity operation for the In 2016, the cost of electricity generation was maximum effectiveness to control the cost in power lower than that of the previous year resulting from the generation, the Energy Regulatory Commission (ERC) decreased average price of crude oil sold in Dubai of approved the electricity tariff in 2016 with 3 revisions, 10.14 USD/BBL (the average price of crude oil in 2016 namely January - April (the Ft Tariff of -4.80 Satang per was 40.57 USD/BBL, lower than the average price of unit), May - August (the Ft Tariff of -33.29 Satang per 50.71 USD/BBL in 2015). Therefore, the price of natural unit), and September - December (the Ft Tariff of -33.29 gas, the main fuel for power generation, was adjusted Satang per unit).

Ft Tariff in 2016

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

1 January - April - 0.0480 3.71 2 May - August - 0.3329 3.42 3 September - December - 0.3329 3.42

EGAT Generation Fleet The installed capacity in power generation of EGAT according to types of power plants

Type of power plants Installed capacity Percentage (MW) of the system capacity

Hydropower 2,952.40 18.02 Thermal 3,647.00 22.26 Combined cycle 9,210.00 56.21 Diesel 30.40 0.19 Renewable energy 45.33 0.27 Other 500.00 3.05 Total 16,385.13 100.00 19

Performance of EGAT’s power plants

. No Performance 2013 2014 2015 2016

1. Heat rate (kJ/kWh) 8, 620.00 8,503.00 8,286.00 8,236.17 2. Generating Weighted Equivalent Availability Factor (GWEAF) (%) 92.10 92.80 92.93 93.78 3. Planned Outage Factor (POF) (%) 4.10 3.90 3.98 3.62 4. Unplanned Outage Factor (UOF) (%) 2.30 2.30 2.38 2.10 5. Unplanned Disruption Factor (UDF) (%) 1.50 1.00 0.71 0.50

The project of construction of floating storage and regasification unit (FSRU) has been initiated by EGAT as a public utility to support the imported LNG with the objective of supplying natural gas to North Bangkok Power Plant and South Bangkok Power Plant with the completion date of 2024.

In 2016, the overall performance of EGAT unplanned outage. The planned outage factor (POF) generating power plants has been improved and the unplanned outage factor (UOF) in 2015 was continuously with lower heat rate than that in the 0.36 percent and 0.28 percent respectively lower than previous year. The generating weighted equivalent that in 2015. The unplanned disruption factor (UDF) in availability factor (GWEAF) of EGAT power plants 2015 was 0.21 percent lower than that in 2015. EGAT amounted to 0.85 percent, higher than that of the has been able to control the rate of UOF to be less than preceding year due to the control measure of the 3 percent continuously since 2010. 20

Transmission System EGAT’s bulk power supply system performance in 2016 Presently, EGAT’s transmission system comprised transmission lines of 32,993.68 circuit- • System Average Interruption Frequency kilometers with 218 substations and a total transformer Index (SAIFI), (number of occurrence/ capacity of 94,361.44 MVA. delivery point) : 0.14394

In 2016, the planned outage occurred three • System Average Interruption Duration times, and the forced outages occurred 51 times, Index (SAIDI), (minutes/delivery point) : comprising of failure of the transmission lines (9 times) 1.97476 and failure of the substation equipment (42 times). The interruption was mainly caused by the malfunction • Service Availability (SA) (%) : 99.99962 of the substation equipment and the control and • Transmission Circuit Availability (%) : prevention equipment (18 times), by animals (18 99.99159 times), by human errors, either staff or outside people (7 times), by environment (4 times), by weather (1 time), • Transformer Availability (%) : 99.78216 and by unidentifiable reason (3 times). 21

The quality of the power supply service has power supply caused by human errors and equipment been well maintained with the frequency being malfunctions caused by animals were set up. EGAT has controlled within the band of 49.50 - 50.50 Hz, and the also implemented public communication programs system voltage has been steadily controlled within the to reduce power losses and damages to transmission range of 95-105 percent of the nominal voltage. facilities caused by the community activities as well as addressing the concern and complaints of all To ensure the availability and continuity stakeholders regarding power transmission. With this, of the supply service, EGAT has given priority to EGAT has successfully maintained its capability in the improvement and maintenance of existing supplying electricity of high quality in terms of voltage transmission facilities. Works carried out during and frequency with continuity, stability, and reliability. the year included insulator cleaning for the 500 kV transmission lines in the areas highly exposed to dirt, Moreover, EGAT has participated in the pollution, smoke, and waste from birds. benchmarking of the International Transmission Operation and Maintenance Study (ITOMS) to have Fire drills and exercises of black start available data for work improvement and to find more restoration have been practiced as well as the performance index appropriate to the transmission preparation of transmission network development work. plan. Preventive measures to minimize interruption of

The light of prosperity to the rural areas throughout the country His Majesty King Bhumibol Adulyadej conveyed his initiatives to EGAT concerning the development of water resources in remote areas for the maximum benefits. Dams and small hydropower plants could be established to provide the rural communities with electricity. Among these hydropower plants are Ban Yang Hydropower Plant, Ban Khun Klang Hydropower Plant, Ban Santi Hydropower Plant, Huai Kum Dam, Mae Ngat Somboon Chon Dam, etc. With the provision of water and electricity, all rural areas across the country have been happily lighted through the benevolence of His Majesty. 24

Nature of Business of EGAT and Affliates

EGAT’s Business Operation EGAT is a state-owned enterprise under the supervision of Ministry of Energy and Ministry of Finance. The principal mission of EGAT is electricity generation, electricity acquisition, and electricity sales to the Metropolitan Electricity Authority (MEA), the Provincial Electricity Authority (PEA), a number of direct customers by law, and neighboring countries. EGAT is also responsible for other related businesses as stipulated by EGAT Act.

1. Core Business in Electricity Generation 2. Other Businesses

1.1 Electricity Generation 2.1 EGAT Related Business Electricity is generated by 47 EGAT’s power In 2016, EGAT performed business transactions plants located in different parts of the country. With a conforming to the business growth strategy. Adhering total installed capacity of 16,385.13 MW, EGAT power to high quality services, EGAT has provided power plant plants consist of 3 thermal power plants, 6 combined operation and maintenance services to private sectors cycle power plants, 25 hydropower plants, 9 renewable including Independent Power Producers (IPPs), Small power plants, and 4 diesel power plants. Power Producers (SPPs), and industrial power plants as well as fly ash and gypsum products. In addition, EGAT 1.2 Electricity Purchase has expanded its business to ASEAN region. In addition to operating its own power Regarding EGAT related business in Thailand, plants, EGAT also purchases bulk electricity from 12 for the IPP customers, EGAT signed a contract with Independent Power Producers (IPPs) totaling 14,948.50 Mitsubishi Corporation (MC) concerning the gas turbine MW, from Small Power Producers (SPPs) totaling maintenance service of Khanom Combined Cycle Power 6,345.02 MW, and from neighboring countries, namely Plant (KNCC4) which has been commercially operated Lao PDR and Malaysia totaling 3,877.60 MW. on June 16, 2016. EGAT also provided maintenance service to the power plant of Gulf JP NS Co. Ltd. For 1.3 Electricity Transmission the SPP customers, EGAT has been providing operation and maintenance service to Navanakorn Electricity EGAT transmits electricity generated by its Generating Company Limited (NNEG), which has been own power plants and purchased from private power commercially operated on June 3, 2016. producers through its own grid network covering all parts of the country. EGAT’s transmission lines comprise different voltages ranging from 500 kV, 230 kV, 132 kV, 115 kV, and 69 kV. EGAT sells electricity to two distributing authorities, namely Metropolitan Electricity Authority (MEA) and Provincial Electricity Authority (PEA) which will deliver electricity to their retail customers countrywide. EGAT also sells electricity to the power utilities of neighboring countries, namely Lao PDR at 115 kV and at 22 kV lines and Malaysia at 300 kV HVDC lines. 25

Furthermore, EGAT has signed the 5th To enhance the leadership image in the Memorandum of Understanding (MOU) with EGCO electricity business and related business, in 2016, EGAT Engineering and Service Co., Ltd. (ESCO) on September actively organized and participated in several power 29, 2016 with the scope of exploring local and overseas and energy technological seminars including the 17th business opportunity and collaboration concerning the annual Asian Utility Week 2016 and the 21st Conference services in operation and maintenance, maintenance, of Electric Power Supply Industry (CEPSI 2016). chemicals, and spare parts, etc. Moreover, EGAT has cooperated with leading In expanding EGAT related business to ASEAN educational institutions in the country to continually countries, apart from gaining additional income, this conduct research and development of the by-products will also enhance security of the power system of the from power generation at Mae Moh Power Plant country as Thailand in turn purchases the electricity in Lampang Province to leverage the quality of fly from some ASEAN countries. Moreover, EGAT related ash, bottom ash, and synthetic gypsum products business has consequently strengthened foreign for developing the quality of cement, concrete, relations. In 2016, EGAT related business in overseas construction materials, and organic fertilizers for is as follows: soil improvement. As the fly ash obtained from the development is capable of reducing the temperature • The Operation and Maintenance Services and lowering the risk of crack formation, it has been was provided to Hongsa Power Plant, the first largest effectively applied in the construction of large projects thermal power plant in Lao PDR with the total installed such as the domestic MRT projects and Xayaburi capacity of 1,878 MW. In 2016, the 3 units started hydroelectric project in Lao PDR. commercial operation supplying electricity to EGAT under Power Purchase Agreement and to Electricité Regarding transmission business, EGAT has du Laos (EDL) mobilized its human resources with more than 40 years of knowledge and experiences in the operation • EGAT signed the Contract Agreement and maintenance of transmission system, both of for Rehabilitation and Automation of Thimphu Mini substations and transmission lines as well as the Hydropower Plant with Bhutan Power Corporation telecommunications service under the supervision Limited (BPC) on December 8, 2016 concerning of Office of the National Broadcasting Commission the service in improvement of the efficiency of (NBTC) from which EGAT has been authorized to Thimphu Mini Hydropower Plant which is the first mini conduct training. EGAT also sells substation equipment hydropower plant in Bhutan with the installed capacity and provides service concerning the equipment of 4x90 kW. 26

to domestic IPPs and SPPs as well as those of the At present, RATCH has the total capacity of neighboring countries. The service provision is a way 6,980.03 MW comprising 5,102.34 MW from domestic to enhance security and reliability of the electricity projects and 1,877.69 MW from overseas projects. system of Thailand. Furthermore, EGAT, in cooperation with its alliances in the private sector, has provided a Shareholding testing service for high-voltage equipment complying As of December 31, 2016, RATCH had a total with the international standards. The testing service registered capital of 1,450 million shares (equivalent has upgraded the country’s electricity industry and to 14,500 million Baht). Its ownership structure is helped save the testing cost to be undertaken abroad. composed of 45 percent stakes held by EGAT and 55 Last but not least, EGAT has expanded its percent stakes held by the general public. alliances which are Thai and foreign entrepreneurs in EGAT International Company Limited (EGATi) electricity business and telecommunications business through the Memorandum of Understanding in Nature of Business technical cooperation to exchange and share expertise and experience. This will help, not only to mutually EGATi was established by EGAT on December fulfill the limitations among the alliances, but also, on 18, 2007. EGATi aims to directly invest or set up the part of EGAT, to prepare the human resource to subsidiaries to invest in power development projects cope with new technologies in the future. in foreign countries in order to supply electricity back to Thailand. The company is interested in expanding 2.2 EGAT’s Affiliates investment in electricity business and other related businesses relevant to EGAT in order to create added- EGAT has invested in electricity generation value and to be beneficial to EGAT’s business and and energy - related businesses in the following five Thailand. companies: At present, EGATi has a project under Subsidiary Companies construction, i.e, Nam Ngiep 1 Power Co. Ltd. (NNP1PC) in Lao PDR and 2 projects in the process of Ratchaburi Electricity Generating Holding development, i.e. Upper Thanlwin hydropower (Mong Ton) development project in Myanmar and Quang Tri 1 Public Company Limited (RATCH) thermal power development project in Vietnam. EGATi also has acquired 11.53% stakes in PT Adaro Indonesia Nature of Business in 2016. RATCH was established as a holding company Shareholding on March 7, 2000. As a holding company, RATCH gets dividends from its invested companies as main As of December 31, 2016, EGATi had a total revenue. registered capital of 1,209.55 million shares (12,095.5 million Baht). EGAT presently holds 99.99 percent The company focuses mainly on investing stakes in EGATi. and developing electricity generating business which concentrates on diversity of resources, ranging from natural gas, oil, coal, hydro, and renewable energy, such as wind, solar power, etc. The company is also interested in expanding into related businesses such as operation and maintenance service for power plants, coal mining, as well as joint ventures in various projects, both in Thailand and other countries. 27

EGAT Diamond Service Co., Ltd. (EDS) The Gas Turbine Refurbishment Service Center which is located in Navanakorn Industrial Estate, Nature of Business Pathum Thani Province has started its operation since May 2011. EGAT Diamond Service Co., Ltd (EDS) is a joint venture business founded on December 15, Shareholding 2009 by EGAT, Mitsubishi Heavy Industries, Ltd. (MHI), Mitsubishi Corporation (MC), and Ratchaburi As of December 31, 2016, EDS had a total Electricity Generating Holding Public Company Limited registered capital of 6.23 million shares (623 million (RATCH). The objective of the company is to provide Baht). Its ownership structure is composed of EGAT, refurbishment work for the hot gas path parts of gas MHPS, MC, and RATCH with the portion of 45 percent, turbine in 18 countries namely Thailand, Malaysia, 30 percent, 15 percent, and 10 percent stakes Singapore, Lao PDR, Myanmar, Vietnam, Cambodia, respectively. Brunei, Australia, New Zealand, India, Pakistan, Bangladesh, Sri Lanka, Bhutan, Nepal, Afghanistan, Associated Company and Maldives. Electricity Generating Public Company Limited In May 2015, as a result of business restructuring of Mitsubishi Heavy Industries, Ltd. (MHI), (EGCO) all of its shares have been transferred to Mitsubishi Nature of Business Hitachi Power System Ltd (MHPS). In 2016, MHPS has been restructured and has founded Mitsubishi Hitachi EGCO was established as a holding company Power Systems Asia Pacific Pte. Ltd. (MHPS-AP) to by EGAT on May 12, 1992. Its revenues are mainly from be representative for MHPS’s business operation in dividends of subsidiaries and associated companies. Southeast Asia Region. At present, EDS is in the process of transferring MHPS’s shares in EDS to MHPS-AP. 28

EGCO focuses mainly on generating and Joint Venture selling electricity to EGAT and other domestic customers as well as customers in ASEAN countries District Cooling System and Power Plant Co., under the long-term Power Purchase Agreement (PPA). Ltd. (DCAP) The company also provides a variety of energy-related services. Business of EGCO can be categorized into 5 Nature of Business groups as follows; DCAP is a joint venture business founded on 1) Independent Power Producer (IPP) April 2, 2003 by EGAT, PTT Public Company Limited (PTT), and Metropolitan Electricity Authority (MEA). 2) Small Power Producer (SPP) The objective of the company is to generate and sell 3) Very Small Power Producer (VSPP) electricity and cooling water to the Suvarnabhumi International Airport. 4) Overseas Power Producer Presently, DCAP is conducting a feasibility 5) Other business groups which are study for its investment project of a new cogeneration operation and maintenance companies plant to support the Suvarnabhumi International (O&M), water supply companies, power Airport (Phase 2). plant management, and mines. Shareholding At present, EGCO has a total generating capacity of 5,191.69 MW consisting of 4,256.91 MW As of December 31, 2016, DCAP had a total from domestic projects and 934.78 MW from overseas registered capital of 167 million shares (1,670 million projects. Baht). Its ownership structure is composed of EGAT, PTT, and MEA with the portion of 35 percent, 35 Shareholding percent, and 30 percent stakes respectively. As of December 31, 2016, EGCO had the total registered capital amounting to 530 million shares (5,300 million Baht) of which 526.465 million shares (5,264.65 million Baht) were issued and paid-up. EGCO’s shareholders are EGAT (25.41 percent), TEPDIA Generating B.V. (23.94 percent), and the general public (50.65 percent).

EGAT has cooperated with leading educational institutions in the country to continually conduct research and development of the by-products from power generation at Mae Moh Power Plant in Lampang Province to leverage the quality of fly ash, bottom ash, and synthetic gypsum products for developing the quality of cement, concrete, construction materials, and organic fertilizers for soil improvement. As the fly ash obtained from the development is capable of reducing the temperature and lowering the risk of crack formation, it has been effectively applied in the construction of large projects such as the domestic MRT projects and Xayaburi hydroelectric project in Lao PDR. 29

EGAT’s Investment in Its Affiliates

Company Registered capital Ownership Status (million Baht) %

Ratchaburi Electricity Generating 14,500 45 Subsidiary Company Holding Public Company Limited (RATCH) 8/8 Moo 2, Bang Khane Sub-district, Mueang District, Nonthaburi Province 11000 Tel : +66 (0) 2794 9999 Fax : +66 (0) 2794 9998 Website : www.ratch.co.th

EGAT International Company Limited (EGATi) 12,095.5 99.99 Subsidiary Company 53 Moo 2 Charansanitwong Road, Bang Kruai District, Nonthaburi Province 11130 Tel : +66 (0) 2436 6900 Fax : +66 (0) 2436 6957 Website : www.egati.co.th

EGAT Diamond Service Co., Ltd. (EDS) 623 45 Subsidiary Company 56/25 Moo 20, Khlong Nueng Sub-district, Khlong Luang District, Pathum Thani Province 12120 Tel : +66 (0) 2529 0800 Fax : +66 (0) 2529 0900 Website : www.egatdiamond.co.th

Electricity Generating Public 5,300 25.41 Associated Company Company Limited (EGCO) EGCO Tower 222 Moo 5, Vibhavadi Rangsit Road, Thungsonghong Sub-district, Lak Si District, Bangkok Province 10210 Tel : +66 (0) 2998 5000 Fax : +66 (0) 2998 0956-9 Website : www.egco.com

District Cooling System and 1,670 35 Joint Venture Power Plant Co., Ltd (DCAP) 222 Moo 1 Nong Prue Sub-district, Bang Phli District, Samut Prakan Province 10540 Tel : +66 (0) 2327 4242 Fax : +66 (0) 2327 4244 Website : www.dcap.co.th

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Analysis of Operating Results and Financial Position

1.​ Analysis of Operating Results of EGAT and its Subsidiaries Operating results of EGAT and its subsidiaries for the years ended December 31, 2016 and 2015 are summarized as follows:

Operating Results 2016 2015 Increase / (Decrease) 2014 (Adjusted) 2016-2015 (Adjusted) Million Baht Million Baht Million Baht Percentage Million Baht

Revenue from sales and services 496,883.00 546,480.33 (49,597.33) (9.08) 557,080.18 Revenue from electric energy sales 489,536.08 531,713.22 (42,177.14) (7.93) 535,911.51 Revenue from sales of other goods 7,346.92 14,767.11 (7,420.19) (50.25) 21,168.67 and services Cost from sales and services 401,097.38 457,447.62 (56,350.24) (12.32) 479,145.20 Cost of electric energy sales 395,474.20 444,399.73 (48,925.53) (11.01) 459,664.47 Cost of sales of other goods and services 5,623.18 13,047.89 (7,424.71) (56.90) 19,480.73 Gross profit 95,785.62 89,032.71 6,752.91 7.58 77,934.98 Other revenue 5,014.38 3,417.40 1,596.98 46.73 6,572.58 Income before expenses 100,800.00 92,450.11 8,349.89 9.03 84,507.56 Selling expenses 205.43 190.53 14.90 7.82 148.58 Administrative expenses 16,241.51 16,675.73 (434.22) (2.60) 16,937.71 Other expenses 18.54 12,010.33 (11,991.79) (99.85) 455.63 Operating income 84,334.52 63,573.52 20,761.00 32.66 66,965.64 Share of profit from associated 5,456.53 2,369.35 3,087.18 130.30 2,466.51 company and joint ventures Income before finance cost and income tax 89,791.05 65,942.87 23,848.18 36.16 69,432.15 Finance costs 41,700.71 31,685.73 10,014.98 31.61 25,679.05 Income tax 886.94 1,407.72 (520.78) (36.99) 1,269.38 Net income for the year 47,203.40 32,849.42 14,353.98 43.70 42,483.72 Net income - Non-controlling interests 3,336.72 1,579.00 1,757.72 111.32 3,321.54 Net income - EGAT and its subsidiaries 43,866.68 31,270.42 12,596.26 40.28 39,162.18

Remark : * The financial statements for 2016, 2015, and 2014 have been prepared in accordance with Financial Reporting Interpretations No. 4 and Accounting Standard No. 17. 31

​For operating results for the year ended December 31, 2016, EGAT and its subsidiaries recorded a net income of Baht 43,866.68 million, increasing by Baht 12,596.26 million or 40.28% from the year 2015. The details are as follows:

1.1​ Analysis of revenue from electric energy sales F​ or the year ended December 31, 2016, revenue from electric energy sales, which is the primary source of revenue of EGAT and its subsidiaries, amounted to Baht 489,536.08 million, decreasing by Baht 42,177.14 million or 7.93% from Baht 531,713.22 million in 2015. The lower sales revenue was mainly attributable to decrease of Baht 0.316 per kWh from Baht 2.962 per kWh in 2015 to Baht 2.646 per kWh in 2016. However, the volume of electric energy sales of EGAT and its subsidiaries for the year ended December 31, 2016 increased by 5,509.12 million kWh or 3.07% to 185,046.51 million kWh, compared with 179,537.39 million kWh in 2015. The lower unit selling price affected to sales revenues decreased in 2016.

1.2​ Analysis of cost of electric energy sales ​For the year ended December 31, 2016, the cost of electric energy sales of EGAT and its subsidiaries decreased from prior year by Baht 48,925.53 million. The details are as follows:

2016 2015 Increase / (Decrease) (Adjusted) Cost of Electric Energy Sales Million Baht Million Baht Million Baht Percentage

Electricity purchased 120,242.67 116,628.31 3,614.36 3.10 Fuel 209,363.42 264,756.76 (55,393.34) (20.92) Generating expenses 54,640.38 52,191.35 2,449.03 4.69 Transmission expenses 11,227.73 10,823.31 404.42 3.74 Total 395,474.20 444,399.73 (48,925.53) (11.01)

1.2.1​ ​ Electricity purchased ​Electricity purchased as shown in the statements of income is a part of the purchase of electricity from power plants that does not qualify as a finance lease under Accounting Standard No.17: Leases. For the year ended December 31, 2016, the cost of purchased electricity increased by Baht 3,614.36 million or 3.10%. The increase was attributable to an increase of foreign countries and small power producers (SPP).

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1.2.2 ​ ​ Fuel cost ​ Fuel cost as shown in the statements of income for the year ended December 31, 2016 and 2015 included fuel cost of power plants under the power purchase agreements qualified as financial leases according to Accounting Standard No. 17: Leases. The details are as follows:

2016 2015 Increase / (Decrease) (Adjusted) Fuel Million Baht Million Baht Million Baht Percentage

(1) Fuel cost of EGAT and its subsidiaries 126,263.24 163,112.45 (36,849.21) (22.59) (2) Fuel cost under finance leases 83,100.18 101,644.31 (18,544.13) (18.24) Total 209,363.42 264,756.76 (55,393.34) (20.92)

​The volume of electricity produced by EGAT and its subsidiaries amounted to 87,994.54 million kWh, decreasing from the prior year by 1,152.12 million kWh from 89,109.66 million kWh in 2015. The details of fuel consumption in 2016 are as follows:

2016 2015 Increase / (Decrease) (Adjusted) Fuel Million Unit Million Unit Million Unit Percentage

Natural gas (MBTU) 493.38 520.88 (27.50) (5.28) Fuel oil (liter) 178.72 269.29 (90.57) (33.63) Diesel oil (liter) 42.27 41.06 1.21 2.95 Palm oil (kg) - 15.73 (15.73) (100.00) Lignite (ton) 16.41 14.48 1.93 13.33

​The fuel cost for the year ended December 31, 2016 amounted to Baht 126,263.24 million, decreasing from the prior year by Baht 36,849.21 million or 22.59%. The details of fuel cost are as follows:

2016 2015 Increase / (Decrease) Fuel (Adjusted) Million Baht Million Baht Million Baht Percentage

Natural gas 113,290.05 148,188.09 (34,898.04) (23.55) Fuel oil 1,975.87 4,225.20 (2,249.33) (53.24) Diesel oil 896.29 928.43 (32.14) (3.46) Palm oil - 376.56 (376.56) (100.00) Lignite 10,101.03 9,394.17 706.86 7.52

Total 126,263.24 163,112.45 (36,849.21) (22.59) 33

In 2016, the decrease of fuel cost was mainly attributable to the lower proportion of generating electricity of EGAT compared with the whole generating as 35.86% (38.07% for the year 2015), while EGAT purchased the higher proportion of electricity from the domestic and foreign power producers as 64.14% (61.93% for the year 2015).

1.3​ Revenue and cost of sales of other goods and services ​Revenue and cost of sales of other goods and services were mainly derived from revenue from fuel providing, operation and maintenance services, engineering and construction consulting services, and telecommunication services.

In 2016, EGAT and its subsidiaries recorded the revenue from sales of other goods and services in the amount of Baht 7,346.92 million, decreasing from the prior year by Baht 7,420.19 million or 50.25%, and the cost from sales of other goods and services in the amount of Baht 5,623.18 million, decreasing from the year 2015 by Baht 7,424.71 million or 56.90%. The main reason was the decrease in revenues from fuel providing that the thermal power plant (unit 2) and the combined-cycle power plant (block 1) of Khanom Electricity Generating Co., Ltd. had been discharged from the system due to the termination of the PPA, in which EGAT was the supplier of fuels in the year 2016.

1.4​ Other revenues ​Other revenues for the year ended December 31, 2016 totaled Baht 5,014.38 million, increasing from the year 2015 by Baht 1,596.98 million or 46.73% due to the following reasons.

• An increase in gain on foreign exchange under finance leases – power plants in the amount of Baht 856.74 million and gain on foreign exchange in the amount of Baht 345.25 million.

• An increase in other revenue in the amount of Baht 618.71 million, because of in 2015 there was the adjustment by discount on gas of Sirikit field at Lankrabue to deferred revenue for electricity compensation, which did not exist in 2016.

• An increase in dividend income in the amount of Baht 203.81 million because EGAT has dividend received on investments in North Bangkok Power Plant Block 1 Infrastructure Fund increased by Baht 211.16 million, while Ratchaburi Electricity Generating Holding Pcl. has dividend received on other investments decreased by Baht 7.35 million.

1.5 ​Other Expenses Other expenses for the year ended December 31, 2016 totaled Baht 18.54 million, decreasing from prior year by Baht11,991.79 million or 99.85%. The decrease was mainly attributable to decline in loss on foreign exchange under finance leases – power plants in the amount of Baht 10,408.85 million and loss on foreign exchange in the amount of Baht 1,587.42 million. 1.6 ​Share of profit from associated company of EGAT and share of profit from joint ventures of subsidiaries by using the equity method ​ For the year ended December 31, 2016, share of profit under the equity method totaled Baht 5,456.53 million, increasing from the prior year by Baht 3,087.18 million or 130.30% which consisted of an increase in share of profit from joint ventures of subsidiaries by Baht 1,797.82 million and an increase in share of profit from associated company by Baht 1,289.36 million. 34

1.7​ Income taxes ​For the year ended December 31, 2016, the income taxes of Ratchaburi Electricity Generating Holding Pcl. and EGAT International Co., Ltd. amounted to Baht 886.94 million, decreasing from the prior year by Baht 520.78 million or 36.99% 2) ​Analysis of Financial Position of EGAT and its Subsidiaries

(Adjusted) (Adjusted) Dec. 31, 2016* Dec. 31, 2015* Increase / (Decrease) Dec. 31, 2014* Financial Position Million Baht Million Baht Million Baht Percentage Million Baht

Total assets 956,547.31 876,492.83 80,054.48 9.13 734,965.04 Total liabilities 555,623.83 495,819.64 59,804.19 12.06 362,101.69 Owners’ equity of EGAT and 366,240.25 347,102.25 19,138.00 5.51 338,778.82 its subsidiaries Non-controlling interests 34,683.23 33,570.94 1,112.29 3.31 34,084.53

Remark : * The financial statements for 2016, 2015, and 2014 have been prepared in accordance with Financial Reporting Interpretations No. 4 and Accounting Standard No. 17.

As at December 31, 2016, the total assets of EGAT and its subsidiaries increased by Baht 80,054.48 million mainly due to the following reasons:

• An increase in finance lease assets – power plants of Baht 47,584.86 million, mainly due to Power Purchase Agreement in finance lease among EGAT, Hongsa Power Co., Ltd. (Unit 3) and Khanom Electricity Generating Co., Ltd. (Unit 4).

• An increase in work under construction of Baht 23,891.39 million mainly resulted from the increase in the Transmission System Expansion Project and Replacement Project of Mae Moh Power Plant Units 4-7 Replacement Project.

• An increase in investment in associates and joint ventures of EGAT and subsidiaries by using equity method of Baht 15,511.32 million. The details are as follows:

​ Unit : Million Baht​ Increase / (Decrease)

Associates of EGAT and subsidiaries​

Electricity Generating Pcl. 1,516.28 Nam Ngieb 1 Power Co.,Ltd. 462.42 PT Adaro Indonesia 5,570.26 First Korat Wind Co.,Ltd.​ 45.66 K.R. Two Co.,Ltd. 39.55 Perth Power Partnership (Kwinana) (34.75) 7,599.42 ​ 35

Increase / (Decrease)

Joint ventures of EGAT and subsidiaries

District Cooling System and Power Plant Co.,Ltd. 92.77 Chubu Ratchaburi Electric Services Co.,Ltd. (5.33) SouthEast Asia Energy Ltd. and its subsidiary (429.98) Xe Pien – Xe Nam Noy Co.,Ltd. 551.48 Ratchaburi Power Co.,Ltd. (241.13) Nava Nakorn Electricity Generation Co.,Ltd. 268.47 Ratchaburi World Cogeneration Co.,Ltd. (12.68) Solarta Co.,Ltd. 96.30 Solar Power (Korat 3) Co.,Ltd. 17.09 Solar Power (Korat 4) Co.,Ltd. 19.26 Solar Power (Korat 7) Co.,Ltd. 18.60 Songkhla Biomass Co.,Ltd. 47.94 Oversea Green Energy Co.,Ltd. 3.86 Berkprai Cogeneration Co.,Ltd. 106.10 Hongsa Power Co.,Ltd. 7,273.75 Phufai Mining Co.,Ltd. 108.46 RICI International Investment Co.,Ltd. (3.06) 7,911.90

Total 15,511.32

• Net property, plant, and equipment increased by Baht 3,244.80 million as the assets of EGAT and its subsidiaries increased by Baht 24,428.65 million, while depreciation for the year increased by Baht 21,183.85 million.

As at December 31, 2016, the total liabilities of EGAT and its subsidiaries increased by Baht 59,804.19 million, mainly detailed as follows:

• Finance lease liabilities – Power plant and current portion increased by Baht 48,312.60 million, due to Power Purchase Agreement in finance lease among EGAT, Hongsa Power Co., Ltd., and Khanom Electricity Generating Co., Ltd..

• Surplus revenue from electric energy sales according to automatic tariff adjustment (Ft) increased by Baht 7,502.79 million because actual fuel cost and actual electric energy purchased cost were lower than the cost in Ft formula.

• Long-term loans increased by Baht 3,798.31 million mainly due to an increase in long-term loans from financial institution of Ratchaburi Electricity Generating Holding Pcl. by Baht 2,589.16 million.

Owners’ equity of EGAT and its subsidiaries totaled Baht 366,240.25 million, increasing by Baht 19,138.00 million, as shown in the following details.

• For the year ended December 31, 2016, the net income of EGAT and its subsidiaries totaled Baht 43,866.68 million.

• A decrease in other comprehensive income in the amount of Baht 174.74 million.

• Estimated remittance to the Ministry of Finance totaled Baht 24,493.65 million. 36

3)​ Analysis of Cash flow ​As at December 31, 2016, cash and cash equivalents of EGAT and its subsidiaries amounted to Baht 66,485.71 million, decreasing from December 31, 2015 by Baht 6,161.84 million. The major reasons are as follows:

Unit : Million Baht

Cash and cash equivalents as at Dec. 31, 2015 (Restated) 72,647.55 Net cash inflows from operating activities 137,997.16 Net cash outflows from investing activities (61,956.31) Net cash outflows from financing activities (82,276.50) Other Effects from cash and cash equivalents 73.81 Cash and cash equivalents as at December 31, 2016 66,485.71

In 2016, net cash inflows from operating activities totaled Baht 137,997.16 million which was derived from profit before income taxes of Baht 48,090.34 million, adjusted by non-cash items in statements of income, such as depreciation and gain/(loss) on foreign exchange etc. totaling an increase of Baht 84,104.95 million. Besides, changes in working capital resulted in an increase in cash of Baht 5,888.03 million, cash receipts on interest of Baht 851.88 million, and cash payment on income taxes totaled Baht 938.04 million.

Net cash outflows from investing activities amounted to Baht 61,956.31 million, consisting of investments for the construction of power plant projects, transmission system, and construction projects and durable goods including interests for construction totaling Baht 50,009.93 million, an increase in investments in associates and joint ventures of subsidiaries in the amount of Baht 14,129.10 million, an increase in temporary investments in the amount of Baht 3,685.47 million, cash receipts on dividend in the amount of Baht 4,451.85 million, and cash receipts on interest in the amount of Baht 714.32 million.

Net cash outflows from financing activities totaled Baht 82,276.50 million, comprising of cash payment on interest under finance leases – power plants of Baht 37,504.80 million, remittance to the Ministry of Finance of Baht 22,607.24 million, repayment of loans of Baht 17,332.94 million, an decrease in finance lease liabilities – power plants in the amount of Baht 16,120.27 million, dividend payment to non-controlling interests of subsidiaries of Baht 3,290.93 million, and cash receipts from short and long-term loans of Baht 19,379.16 million. 4)​ Financial Ratios Based on the operating results and financial position for the years ended December 31, 2016 and 2015, the financial ratios of EGAT and its subsidiaries are as follows:

Liquidity Ratios 2016* 2015*

Current ratio (time) 1.46 1.66 Quick ratio (time) 1.36 1.55 Cash ratio (time) 1.16 0.74

Profitability Ratios​

Ratio of gross profit to net sales (percentage) 19.28 16.29 37

Ratio of net profit to net sales (percentage) 9.50 5.99 EBITDA **(Million Baht) 129,627.51 117,039.50

Efficiency Ratios

Rate of return on assets (percentage) 5.15 4.07 Rate of return on fixed assets (percentage) 33.16 26.22 Total assets turnover (time) 0.55 0.69

Financial Policy Ratios

Debt to equity ratio (time) 1.39 1.30 Times interest earned (time) 2.15 2.08 Fixed charge coverage (cash basis) (time) 1.68 1.30

Remark: * Financial ratio for the years 2016 and 2015 are calculated from the financial statements prepared in accordance with Financial Reporting Interpretations No. 4 and Accounting Standard No. 17.

** EBITDA is calculated from gross profit after selling expenses and administrative expenses, excluding depreciation and other amortization expenses. 38

Enterprise Risk Management

EGAT has committed to complying its enterprise risk management with the international standard of the Committee of Sponsoring Organizations of the Treadway Commission - Enterprise Risk Management System (COSO-ERM) and the guideline set forth by the State Enterprise Policy Office, Ministry of Finance. The same standard is applicable to all units of EGAT. Being a part of the corporate culture, risk management is the responsibility of all employees. EGAT has continuously improved its enterprise risk management processes since 2005 and has applied information technology system in risk management to assure that the enterprise risk management which could compromise its achievement of the objective and/or the opportunity in building competitiveness is appropriate and systematic.

EGAT enterprise risk management processes Additionally, EGAT Governor has appointed the are linked with corporate objectives. The key risk Committee on Corporate Strategy, Risk Management, indicators (KRI) have been defined to cover all important and Internal Control to be responsible for the risk factors and managed/controlled within the risk sufficiency and effectiveness of the risk management appetite which are not higher than the risk tolerance. plans/measures and the effectiveness of the EGAT’s The risk factors have been monitored with readiness risk management system. The above mentioned to take on risks inherent to all aspects of its operations committee has appointed two working groups with efficiency and effectiveness. The risk management consisting of the Working Group on Risk Management will be reported continuously and regularly to the and Internal Control to be responsible for introducing Enterprise Risk Management Committee (ERMC) risk management method and/or approach and the appointed by EGAT Board of Directors which is Working Group on Business Continuity Planning which responsible for EGAT’s risk management. is responsible for introducing business continuity management to the committee. 39

Risk Management in 2016 stability to ensure that EGAT will have adequate investment capital for the future power generation In risk management, EGAT has considered and transmission system projects and related business. internal and external factors which could compromise its vision and mission. Risk appetite and risk tolerance have been defined to provide a framework for 3. Operational Risk determining corporate strategies and integrating risk management process with its strategic objectives to In order to manage operational risks, EGAT ensure the success of EGAT’s strategies. In 2016, EGAT has prepared itself to take on risks inherent to carried out risk management in 4 aspects, namely all aspects of its operations, including electricity Strategic & Corporate Risk, Financial Risk, Operational generation and transmission, construction of power Risk, and Compliance Risk. The results of the operation plant and transmission system according to the Power can be summarized as follows: Development Plan (PDP), related business, and matters concerning employees, community, environment, and public communication regarding EGAT’s operations. 1. Strategic & Corporate Risk In 2016, EGAT prepared plans and measures Having an aim to become a global top quartile on risk management taking into account operational utility, EGAT has been focusing on increasing its risks concerning the attempt to increase the efficiency capability in power generation and transmission and in power generation and transmission and related promoting its growth through related business. In business. EGAT risk management plan and measures 2016, EGAT carried out risk management in association have resulted in a higher efficiency of EGAT’s with the promotion of the related business such as power plants and transmission system close to the upstream business and renewable enegy resulting in international level and EGAT’s capability in accessing sustainability for EGAT and Thailand. the upstream business and renewable power plant development. 2. Financial Risk Financial risk management has been undertaken by EGAT in an effort to maintain its financial 40

4. Compliance Risk 1. Audit environment EGAT has given attention to the compliance Internal audit process is organized by with all relevant laws and regulations. Plans and establishing the Audit Committee to check and measures have been prepared to prevent the impacts review the sufficiency and efficiency of the control, which may occur as a result of related law and to review monthly the financial and non-financial regulation violation. In risk management, EGAT has reports, and to check and review the assignment of plans and measures to prevent and reduce impact authority and responsibility in written statement based from non-compliance with regulations as well as plans on the corporate governance so that the operation and measures concerning anti-corruption which is can achieve the objectives of the organization with applicable strictly throughout the organization. efficiency, transparency, fairness, and accountability. To promote EGAT as the organization with strong corporate value and culture, EGAT has a project to Internal Audit promote the corporate value “FIRM-C” by urging and promoting the observance of the value in integrating Principle/Guidelines with other processes. EGAT’s internal audit system is in accordance 2. Risk assessment with the Standard Rule of State Audit, B.E. 2544 (2001) of the State Audit Commission (SAC). The same system Risk assessment based on the COSO-ERM is implemented throughout the organization to ensure principles is applied throughout the organization under that the internal audit is adequate and appropriate. the supervision of the Enterprise Risk Management The document attached to the internal audit has Committee (ERMC) which is responsible for setting been verified together with the operation lines for policy, risk appetite, and risk tolerance as well as correctness, transparency, and achievability of the analyzing the internal and external factors in relation following 3 objectives: with the corporate plan. Monitoring and assessment are carried out quarterly. • Efficiency and effectiveness of the operation 3. Audit activities • Reliability of the financial reports Policy and complete procedures for all work together with major work manuals have been • Compliance with laws, rules, and established and updated for every functional line. regulations Assignment of responsibility, approval authority, and responsibility for protection and maintenance The annual internal audit report is prepared of property are clearly identified with scope of and submitted to the Internal Audit Committee for responsibility in written statement. The Internal Audit consideration of the sufficiency and appropriateness Bureau is responsible for reviewing the financial and of the report before submission to the EGAT Board of non-financial reports before submission to the Internal Directors for endorsement and forwarding to the State Audit Committee and EGAT Board of Directors every Audit Commission within March every year. month. As EGAT has a vision or target to become a “Global top quartile utility”, a project “Capability for Performance (C4P)” has been prepared to create

The 2016 Internal Audit Report sustainable performance to achieve the vision. EGAT has evaluated the internal audit system in accordance with the Standard Rule of State Audit to ensure that the mission of EGAT is achieved with effectiveness and efficiency in terms of resource utilization, protection and maintenance of assets, prevention of error, damage, or misconduct, reliability of financial and non-financial reports, and compliance with laws, rules, and regulations. The results of the evaluation of the 5 components of internal audit are summarized as follows: 41

4. Information and communication with the risk assessment which is carried out quarterly. Independent Assessment (IA) is also conducted by the Financial and non-financial information Internal Audit Bureau and the Office of the General system and complete database management system Auditor of Thailand. State Enterprise Performance are available. The data to be used are up-to-date Appraisal (SEPA) has been conducted continuously on and easily accessible. The Information Technology a yearly basis to maintain the leadership in electricity Committee of EGAT is established to be responsible business and to be a model for other enterprises. for the information system management, preparation However, EGAT focuses on the assessment of practice of the master plan, and implementation of the and gives importance to continuous development. standard on information security. The information system is available to support the decision-making In conclusion, EGAT has carried out the of the executives. Various channels of information complete internal audit system covering 5 components systems and communication systems are available in accordance with the regulation of the State Audit and accessible in normal situation and in time of Commission throughout the organization with emergency. EGAT has information technology system effectiveness, sufficiency, and appropriateness to fulfill with security which can give continuous service despite the objectives of the internal audit. the time of threat or crisis with the result of surveillance audit by the certification body of EGAT computer center as complying with ISO/IEC 27001. Moreover, lecture has been organized to create awareness on the security of information usage.

5. Assessment Assessment is conducted continuously and regularly in the course of major operation. Assessment for each activity and control self-assessment (CSA) is conducted for every operational line in integration

EGAT prepared plans and measures on risk management taking into account operational risks concerning the attempt to increase the efficiency in power generation and transmission and related business. EGAT risk management plan and measures have resulted in a higher efficiency of EGAT’s power plants and transmission system close to the international level and EGAT’s capability in accessing the upstream business and renewable power plant development.

The sustainable light from His Majesty’s wisdom in alternative energy The benevolent vision and the concern of His Majesty King Bhumibol Adulyadej for his people was endless. Realizing the future energy shortage, His Majesty had studied the problem and tried to find alternative power. With his well- round and in-depth knowledge of the nature of solar and wind power, His Majesty initiated the trial use of solar energy for electricity generation in the community and to be connected to the commercial system. Moreover, His majesty had great interest in utilization of wind power in his royally initiated projects. Among these is the wind power for electricity generation in the Chang Hua Mun Royal Initiative Project. 44

Organization Chart 45

Structure of Organizational Management

EGAT undertakes its mission in accordance with the EGAT Act, B.E. 2511 (1968). The responsibility and the role of the Board of Directors and the EGAT executives are clearly distinguished. The main role of EGAT Board of Directors is to supervise the administration, to make decision, and to set policy and strategy of EGAT, whereas the responsibility of EGAT executives is to set policy and administer the work of EGAT. However, to provide a link between the supervision and the administration, EGAT Governor which is the top management of EGAT, is appointed by the Board of Directors to be an ex-officio member and secretary of the Board of Directors.

According to EGAT Act, B.E. 2511 (1968), composition, qualifications, and criteria for the appointment of the Board of Directors are as follows: 1. Board of Directors 1.1 Composition, Qualifications, and Criteria for Appointment • The Board of Directors comprises Chairman and not more than 10 other members including EGAT Governor who serves as an ex-officio member.

• Chairman and Directors must be of Thai nationality who have sufficient knowledge and experience in business administration, science, engineering, economics, finance, or law. All members must not have any direct or indirect interest in the contracts made with EGAT or in the activities acted for EGAT, except that they are merely shareholders who invest in good faith in limited company or public limited company. All members must not hold any political post or possess prohibited attributes as stipulated in the Act on Standards for Qualification of Board of Directors Members and Employees of State Enterprises, B.E. 2518 (1975) and its amendment, resolutions of the Cabinet, and other criteria relevant to Board of Directors appointment.

• The Chairman and Directors, except the ex-officio Director, are appointed by the Cabinet.

1.2 Authority and Responsibilities • Lay down rules and regulations

• Establish EGAT’s vision and policies and be accountable for the performance of EGAT Management

• Review and approve significant policies and strategies including financial objectives, corporate social responsibility, environmental conservation, and other EGAT’s plans. Monitor the performance of EGAT Management regularly

• Ensure the reliability of the accounting system, financial statements, and auditing. Oversee the process of the appropriateness assessment of internal control and internal audit for its effectiveness and efficiency. Ensure the effectiveness of the risk management, financial report, and monitoring

• Oversee and address conflicts of interest issues which may occur among the executives, members of Board of Directors, and employees as well as monitoring the misuse of EGAT’s property and investigating misconduct of the members of Board of Directors, executives, and employees

• Ensure that the existing structure and practices of EGAT Board of Directors comply with the principles of corporate governance and ethical standard

• Monitor the appropriateness of human resources management in terms of position classification and manpower

• Evaluate the performance of EGAT Governor and review EGAT’s plan regularly 46

1.3 Independence of Board of Directors The Principles and Guidelines for Corporate for Qualification of Board of Directors Members and Governance for State Enterprise of B.E. 2552 (2009) Employees of State Enterprises, B.E. 2518 (1975), Article issued by the State Enterprise Policy Office (SEPO), 12/1 specifies that other than the ex-officio member, Ministry of Finance specifies that at least one third of at least one third of members should be appointed the members of the Board of Directors should be the from the list of members of State Enterprises’ Boards of independent outsiders so as to have real freedom in Directors (Director’s Pool-DP) prepared by the Ministry decision-making, and the number of independent of Finance. members should be sufficient to ensure that their comments are heard by the meeting. The independent In 2016, EGAT Board of Directors comprises members should have specific knowledge which is 9 independent members from outside organizations beneficial for the state enterprise, and at least one of which have freedom in decision-making and in making them should be appointed from the list of members of comments. Out of the above mentioned 9 members, 7 State Enterprises’ Boards of Directors prepared by the members are from Director’s Pool. Ministry of Finance. Moreover, the Act on Standards

1.4 Members of the Board of Directors

. No Name Position Terms of office (2016) 1st Phase 2nd Phase

1 Mr. Areepong Bhoocha-Oom Chairman - Feb. 23 - Dec. 31 Permanent Secretary of Energy 2 Mr. Apichart Chinwanno Director - Feb. 23 - Dec. 31 Former Permanent Secretary of Foreign Affairs 3 Mr. Porametee Vimolsiri Director Jan. 1 - Feb. 11 Feb. 23 - Dec. 31 Secretary-General, National Economic and Social Development Board 4 Mr. Chuan Sirinuntporn Director Jan. 1 - Feb. 11 Feb. 23 - Dec. 31 Former Director General, Department of Provincial Administration 5 Gen. Kampanat Ruddit Director Jan. 1 - Feb. 11 Feb. 23 - Dec. 31 Former Assistant Commander in Chief, Royal Thai Army 6 Gen. Walit Rochanapakdee Director Jan. 1 - Feb. 11 Feb. 23 - Dec. 31 Former Deputy Commander in Chief, Royal Thai Army 7 Mr. Witoon Kulcharoenwirat Director Jan. 1 - Feb. 11 Feb. 23 - Dec. 31 Director General, Department of Energy Business 8 Mr. Khemchai Chutiwongse Director Jan. 1 - Feb. 11 - Deputy Attorney General 9 Mr. Sutat Patmasiriwat Director Jan. 1 - Feb. 11 Feb. 23 - Dec. 31 Former EGAT Governor 10 Mr. Sarun Charoensuwan Director Jan. 1 - Feb. 11 - Ambassador to the Republic of Korea 11 Mr. Distat Hotrakitya Director - Feb. 23 - Dec. 31 Secretary General, Office of the Council of State 47

. No Name Position Terms of office (2016) 1st Phase 2nd Phase

12 Mr. Chumpol Rimsakorn Director - Feb. 23 - Dec. 31 Representative of Ministry of Finance Deputy Permanent Secretary of Finance 13 Mr. Soonchai Kumnoonsate Director (Ex-officio) Jan. 1 - Jun. 12 - EGAT Governor 14 Mr. Kornrasit Pakchotanon Director (Ex-officio) - Jun. 15 - Dec. 31 EGAT Governor

Remarks: No. 3-10 Completion of the term as Board of Directors on February 11, 2016 No. 5 Resigned from member of Board of Directors on December 20, 2016 No. 13 Completion of hiring contract as EGAT Governor on June 12, 2016 No. 1 Appointed as Chairman of EGAT Board of Directors No. 2-7, 9,11, Appointed as EGAT Board of Directors by the Cabinet resolution of March 1, 2016, effective from February 23, 2016 and 12 No. 14 Appointed as EGAT Governor by EGAT Order Khor 52/2016 dated June 15, 2016

2. Board Committees The Board of Directors has appointed 12 Board Committees comprising principally 8 committees to scrutinize important issues and 4 ad hoc committees/subcommittees.

The 8 committees to scrutinize important issues are Executive Committee, Audit Committee, Enterprise Risk Management Committee, Corporate Governance Committee, Human Resources Committee, Committee for EGAT Deputy Governor Nomination, Committee for Assistant Governor and Division Director Nomination, and Committee for EGAT Labor Relations

The other 4 ad hoc committees/subcommittees consist of Committee for EGAT Governor Nomination, Subcommittee for Evaluation of EGAT Governor’s performance, Subcommittee for EGAT Governor’s Remuneration, Committee for Advisor and Expert Nomination 2.1 Executive Committee Duties and Responsibilities

• Consider and approve the Term of Reference • Consider and approve EGAT’s master plan (TOR) and procurement of supplies within the value for information technology and communication limits not exceeding 700 million Baht which is beyond the approval authority of EGAT Governor and consider • Consider and screen EGAT regulations and those over 700 million Baht before submission to the approve financial support to the people affected by Board of Directors the construction of transmission network system within the value limits exceeding 4 million Baht but • Propose guidelines and recommendations not exceeding 10 million Baht/time/person concerning procurement for the purpose of transparency and for the best interest of EGAT • Consider and screen the appeals concerning the seizure of the security in the procurement by an • Consider and screen all issues concerning e-auction bidding in which the value of the security EGAT’s financial and investment policies and plans does not exceed 50 million Baht as well as annual budget of EGAT and recommend the financial and investment strategies that will be • Consider other issues assigned by EGAT beneficial to EGAT Board of Directors 48

Members of the Executive Committee . No Name Position Term of office (2016)

1 Mr. Witoon Kulcharoenwirat Chairman Feb. 29 - Dec. 31 2 Mr. Chuan Sirinuntporn Member Feb. 29 - Dec. 31 3 Gen. Walit Rochanapakdee Member Feb. 29 - Dec. 31 4 Mr. Sutat Patmasiriwat Member Feb. 29 - Dec. 31 5 Mr. Soonchai Kumnoonsate Member (Ex-officio) & Secretary Feb. 29 - Jun. 12 6 Mr. Kornrasit Pakchotanon Member (Ex-officio) & Secretary Jun. 15 - Dec. 31

Remarks: No.5 Completion of hiring contract as EGAT Governor on June 12, 2016

2.2 Audit Committee Duties and Responsibilities

• Review the efficiency and effectiveness • Monitor EGAT Management’s response to of EGAT’s internal control procedure, corporate recommendations made by independent auditors and governance procedure, and risk management the Internal Audit Bureau concerning internal controls procedure and risk management

• Review the reliability of financial statements • Review the operation of the Internal Audit and financial eportsr Bureau and consider the appointment, transfer, and performance evaluation of the Assistant Governor - • Monitor the observance of laws, rules and Internal Audit Bureau regulations, orders, related policies, and EGAT Code of Conduct and Ethics and supervise the procedure of • Coordinate with the independent auditors complaint management of EGAT management team on the results of the annual audit

• Consider the linkage of items or items which • Review at least once a year the may have conflict of interests or possibility of dishonest appropriateness and effectiveness of the EGAT treatment Regulations concerning the Audit Committee and the Internal Audit • Monitor the effectiveness and efficient use of information technology system and resources that meet corporate objectives and create added values for EGAT

Members of the Audit Committee

. No Name Position Term of office (2016) 1st phase 2nd phase

1 Mr. Porametee Vimolsiri Chairman Jan. 1 - Feb. 11 Feb. 29 - Dec. 31 2 Gen. Kampanat Ruddit Member Jan. 1 - Feb. 11 Feb. 29 - Dec. 31 3 Mr. Chumpol Rimsakorn Member - Feb. 29 - Dec. 31 4 Mr. Apichart Chinwanno Member - Dec. 26 - Dec. 31 5 Assistant Governor - Internal Audit Secretary Jan. 1 - Feb. 11 Feb. 29 - Dec. 31

Remarks: No.2 Resigned from EGAT Board of Directors, effective on December 20, 2016 49

2.3 Enterprise Risk Management Committee Duties and Responsibilities

• Ensure the adequacy and effectiveness of • Review the disclosure of EGAT’s risk risk management framework and policies which cover information to the regulatory bodies and the public all EGAT’s operations • Perform any other tasks within the purview • Review the policies and systems used of the Enterprise Risk Management Committee as in assessing and evaluating risk management and assigned by the Board of Directors controls as well as auditing and reporting procedures

• Oversee and ensure the observance of risk management Members of the Enterprise Risk Management Committee . No Name Position Term of office (2016)

1 Mr. Sutat Patmasiriwat Chairman Feb. 29 - Dec. 31 2 Gen. Walit Rochanapakdee Member Feb. 29 - Dec. 31 3 EGAT Governor Member Feb. 29 - Dec. 31 4 Deputy Governor - Policy and Planning Member and Feb. 29 - Dec. 31 Secretary (Ex-officio) 2.4 Corporate Governance Committee Duties and Responsibilities

• Propose policy, strategies, and practical • Supervise the implementation of activities guidelines for corporate governance and social in corporate governance practices and in CSR action responsibility plans

• Consider and approve master plans for • Report to the Board of Directors every 6 good governance and for social and environmental months responsibility • Perform any other tasks related to corporate • Promote participation of EGAT Board of governance as assigned by the Board of Directors Directors, Executives, and employees in corporate governance and CSR activities

Members of the Corporate Governance Committee . No Name Position Term of office (2016)

1 Mr. Distat Hotrakitya Chairman Feb. 29 - Dec. 31 2 Mr. Chuan Sirinuntporn Member Feb. 29 - Dec. 31 3 EGAT Governor Member Feb. 29 - Dec. 31 4 Deputy Governor - Administration Member Feb. 29 - Dec. 31 5 Deputy Governor - Corporate Social Affairs Member Feb. 29 - Dec. 31 6 Assistant Governor - Legal Affairs Member Oct. 25 - Dec. 31 7 Assistant Governor - Human Resources Development Member Feb. 29 - Dec. 31 8 Ms. Naree Tantasathien Member Oct. 25 - Dec. 31 9 Mrs. Chuensumon Niwatawong Member Oct. 25 - Dec. 31 10 Director, Office of the Governor Secretary Feb. 29 - Dec. 31 (Ex-officio) 50

2.5 Human Resources Committee Duties and Responsibilities

• Propose policy guidelines on human • Perform any other tasks related to HR resources oversight as assigned by the Board of Directors

• Consider and approve EGAT’s human resources master plan and submit to the Board of Directors

Members of the Human Resources Committee . No Name Position Term of office (2016)

1 Mr. Apichart Chinwanno Chairman Feb. 29 - Dec. 31 2 Mr. Sutat Patmasiriwat Member Feb. 29 - Dec. 31 3 EGAT Governor (as a member of EGAT Board of Directors) Member Feb. 29 - Dec. 31 4 Deputy Governor - Administration Member Feb. 29 - Dec. 31 5 Advisor Level 14 Member Feb. 29 - Dec. 31 6 Assistant Governor - Human Resources Secretary Feb. 29 - Dec. 31 (Ex-officio)

2.6 Committee for Deputy Governor Nomination The Committee is responsible for considering and recommending candidates for nomination or rotation for the position of Deputy Governor.

Members of the Committee for Deputy Governor Nomination . No Name Position Term of office (2016)

1 Mr. Areepong Bhoocha-Oom Chairman (Ex-officio) Feb. 29 - Dec. 31 2 Mr. Apichart Chinwanno Member Feb. 29 - Dec. 31 3 Mr. Chuan Sirinuntporn Member Feb. 29 - Dec. 31 4 Mr. Piboon Buacham Member Feb. 29 - Dec. 31 5 Mr. Prapas Vichakul Member Feb. 29 - Dec. 31 6 EGAT Governor Member & Secretary Feb. 29 - Dec. 31 (Ex-officio)

2.7 Committee for Assistant Governor and Division Director Nomination The Committee is responsible for considering and recommending candidates for nomination or rotation for the position of Assistant Governor and Division Director. 51

Members of the Committee for Assistant Governor and Division Director Nomination . No Name Position Term of office (2016)

1 EGAT Governor Chairman Feb. 29 - Dec. 31 (Ex-officio) 2 Mr. Witoon Kulcharoenwirat Member Feb. 29 - Dec. 31 3 Deputy Governor Member Feb. 29 - Dec. 31 4 Deputy Governor - Administration Member & Secretary Feb. 29 - Dec. 31 (Ex-officio)

2.8 The Committee for EGAT Labor Relations Duties and Responsibilities • Give opinions and comments on the • Consult for finding solution to the improvement of the efficiency in the operation of the complaints received from the employees or the Labor state enterprise Union as well as complaints regarding disciplinary punishment • Promote and develop labor relations, seeking ways for a compromise and dispute settlement • Consult for improvement of the hiring condition • Consider the improvement of the rules and regulations regarding working which will be beneficial for employers, employees, and the organization

Members of the Committee for EGAT Labor Relations . No Name Position Terms of office (2016) 1 Mr. Chuan Sirinuntporn Chairman Feb. 29 - Dec. 31 2 Mr. Seubphong Buranasirin Member, representative of employer Apr. 18 - Dec. 31 3 Mr. Thaworn Ngamganokwan Member, representative of employer Apr. 18 - Dec. 31 4 Mr. Wiwat Chancherngpanich Member, representative of employer Apr. 18 - Dec. 31 5 Mr. Wanchai Hongcherdchai Member, representative of employer Apr. 18 - Dec. 31 6 Mr. Tatree Riewchareon Member, representative of employer Apr. 18 - Dec. 31 7 Mr. Boonyanit Wongrukmit Member, representative of employer Apr. 18 - Dec. 31 8 Mr. Wichai Simadhamnand Member, representative of employer Apr. 18 - Dec. 31 9 Mr. Tewan Tantanatewin Member, representative of employer Apr. 18 - Dec. 31 10 Mr. Suwin Ajjimangkul Member, representative of employer Apr. 18 - Dec. 31 11 Mr. Prakob Parimon Member, representative of employees Apr. 18 - Dec. 31 12 Mr. Narainrith Sa-Ardwong Member, representative of employees Apr. 18 - Dec. 31 13 Mr. Surasak Saehow Member, representative of employees Apr. 18 - Dec. 31 14 Mr. Thanatpong Srireungsombat Member, representative of employees Apr. 18 - Dec. 31 15 Mr. Phrae Chumlaor Member, representative of employees Apr. 18 - Dec. 31 16 Mr. Niwat Pongkaew Member, representative of employees Apr. 18 - Dec. 31 17 Mr. Chumpol Choomongkol Member, representative of employees Apr. 18 - Dec. 31 18 Mr. Surat Intharacha Member, representative of employees Apr. 18 - Dec. 31 19 Mrs. Nicharee Kittakoub Member, representative of employees Apr. 18 - Dec. 31 52

2.9 The Committee for EGAT Governor Nomination Duties and Responsibilities

• Consider and recommend knowledgeable, competent, and experienced person as candidates for the position of EGAT Governor. The candidates must have appropriate qualification and without any prohibited attributes as stipulated by the law. The work results of the Committee will be submitted to the Board of Directors for consideration.

Members of the Committee for EGAT Governor Nomination . No Name Position Term of office (2016)

1 Mr. Witoon Kulcharoenwirat Chairman (Ex-officio) Feb. 29 - Dec. 31 2 Mr. Chuan Sirinuntporn Member Feb. 29 - Dec. 31 3 Mr. Somnuk Bamrungsalee Member Feb. 29 - Dec. 31 4 Mr. Chanvit Amatamatucharti Member Feb. 29 - Dec. 31 5 Mrs. Siriporn Luangnual Member Feb. 29 - Dec. 31 6 Ms. Pranee Tangseree Secretary Feb. 29 - Dec. 31

2.10 Subcommittee for EGAT Governor’s Remuneration Duties and Responsibilities

• Consider the payment and other remuneration for EGAT Governor as well as criteria and method in work performance evaluation, and prepare hiring contract and negotiation on the rate of payment and other remuneration with the selected candidates for the position of EGAT Governor. The work results of the Subcommittee will be submitted to the Board of Directors for consideration. The Subcommittee may assign any task to any appropriate EGAT units or personnel for assistance.

Members of the Subcommittee for EGAT Governor’s Remuneration . No Name Position Term of office (2016) 1. Mr. Chumpol Rimsakorn Chairman Feb. 29 - Dec. 31 2. Gen. Walit Rochanapakdee Member Feb. 29 - Dec. 31 3. Mr. Sutat Patmasiriwat Member Feb. 29 - Dec. 31 4. Mr. Phumsak Aranyakasemsook Member Feb. 29 - Dec. 31 5. Ms. Pranee Tangseree Secretary Feb. 29 - Dec. 31

2.11 Subcommittee for EGAT Governor’s Performance Evaluation Duties and Responsibilities

• Consider the work plan and criteria for evaluation of the performance in accordance with the framework of the hiring contract

• Evaluate the performance in accordance with the framework of the hiring contract for submission to the Board of Directors

• Perform any other tasks as assigned by the Board of Directors 53

Members of the Subcommittee for EGAT Governor’s Performance Evaluation . No Name Position Term of office (2016)

1 Mr. Chumpol Rimsakorn Chairman May 31 - Dec. 31 2 Gen. Walit Rochanapakdee Vice Chairman May 31 - Dec. 31 3 Mr. Sutat Patmasiriwat Member May 31 - Dec. 31 4 Assistant Governor - Policy Secretary May 31 - Dec. 31 5 Director of Corporate Planning Division Assistant Secretary May 31 - Dec. 31 6 Director of Office of the Governor Assistant Secretary May 31 - Dec. 31

2.12 Subcommittee for EGAT Advisor and Expert Nomination Duties and Responsibilities

• Consider and recommend candidates for the position of Advisors and Experts.

Members of the Subcommittee for EGAT Advisor and Expert Nomination . No Name Position Term of office (2016) 1 Mr. Sutat Patmasiriwat Chairman Oct. 7 - Dec. 31 2 EGAT Governor Member Oct. 7 - Dec. 31 3 Deputy Governor - Administration Member and Secretary Oct. 7 - Dec. 31 4 Assistant Governor - Human Resources Assistant Secretary Oct. 7 - Dec. 31

3. Meetings of the Board of Directors and Its Committees Meetings of EGAT Board of Directors are held in transfer to the operational line for action correctly and accordance with EGAT Regulation concerning meetings timely. For the accurate consideration of legal matters, and work of EGAT Board of Directors. Members of the EGAT Advisor level 14 which is an expert in law and Board will be informed on the meeting schedule of regulations also attends the meeting in order to give the coming year in advance in December to enable advice on legal issues. the Board members to attend the meeting regularly. Moreover, to provide transparency in the In 2016, meetings were convened on the administration, two representatives from EGAT Labor fourth week of each month. For each meeting, the Union, i.e. Chairman and Vice-Chairman or members agenda approved by the Chairman was circulated delegated by the Chairman are invited to attend the together with supporting documents and the letter meeting as observers. of invitation 7 days in advance of the meeting date to give sufficient time for the Board members to study In 2016, EGAT Board of Directors held 14 the issues and to request additional document or meetings. For the Committees of EGAT Board of information so that the Board members had enough Directors, some committees met every month, whereas information for thorough consideration. the others met as necessary. The number of meetings is given in the following table. Each meeting of EGAT Board of Directors is also attended by EGAT Deputy Governors of every corporate unit to give additional information to the meeting and to receive policy as well as the views and recommendations of the Board of Directors and 54

Meeting Attendance of Board of Directors and Committee Members in 2016

No. Name Board of Executive Audit Enterprise Corporate Human Deputy Assistant Labor EGAT EGAT EGAT EGAT Advisor & Directors Committee Committee Risk Governance Resources Governor Governor & relations Governor Governor’s Governor’s Expert Management Committee Committee Nomination Division Committee Nomination Performance Remuneration Nomination Committee Committee Director Committee Evaluation Subcommittee Committee Nomination Subcommittee Committee 1 Mr. Areepong Bhoocha-Oom 12/12 2/2 2 Mr. Porametee Vimolsiri 9/14 10/10 3 Mr. Chuan Sirinuntporn 12/14 1010 4/5 2/2 6/6 4/4 4 Gen. Walit Rochanapakdee 13/14 9/10 3/4 4/4 2/2 5 Gen. Kampanat Ruddit 9/13 8/10 6 Mr. Witoon Kulchroenwirat 14/14 10/10 2/2 4/4 7 Mr. Khemchai Chutiwongse 1/2 8 Mr. Sarun Charoensuwan 0/2 9 Mr. Sutat Patmasiriwat 14/14 10/10 4/4 2/2 3/4 2/2 1/1 10 Mr. Distat Hotrakitya 9/12 5/5 11 Mr. Apichart Chinwanno 6/12 2/2 0/2 12 Mr. Chumpol Rimsakorn 11/12 9/10 4/4 2/2 13 Mr. Somnuk Bamrungsalee 4/4 14 Mr. Chanvit Amatamatucharti 4/4 15 Mrs. Siriporn Luengnual 4/4 16 Mr. Phumsak Aranyakasemsook 2/2 17 Mr. Phiboon Buacham 2/2 18 Mr. Prapas Vichakul 2/2 19 Mr. Soonchai Kumnoonsate 6/7 4/4 2/2 2/2 20 Mr. Kornrasit Pakchotanon 7/7 5/6 2/2 2/3 2/2 2/2 2/2 1/1

Total 14 10 10 4 5 2 2 2 6 4 4 2 1

4. Self-Assessment of EGAT Board of Directors The Board self-assessment is annually for Corporate Governance for State Enterprise of 2009 conducted to examine the performance and issued by the State Enterprise Policy Office (SEPO), effectiveness of the Board of Directors as a whole Ministry of Finance, the Board of Directors should and individual Board director to help identify weak conduct self-assessment regularly at least once a points that need improvements. The self-assessment year so that improvement for more efficiency and also provides an opportunity for all Board members effectiveness of work performance can be made to straightforwardly review their past performance, based on the results of self-assessment. EGAT Board obstacles confronted, and their contributions to the of Directors has conducted self-assessment yearly. success of EGAT in order to improve their performance In 2016, it was approved that both types of self- in determining EGAT’s strategic directions and assessment, i.e. collective Board self-assessment and supervise the administration of EGAT executives individual Board self-assessment would be conducted. efficiently. According to the Principles and Guidelines The results of both assessments were “excellent”. 55

5. Remuneration for EGAT Board of Directors The remuneration for members of EGAT Board will receive more remuneration at the rates also of Directors is within the rates approved by the Cabinet. approved by the Cabinet. In 2016, the remuneration Members of EGAT Board of Directors who are tasked for EGAT Board of Directors totaled 8,945,370.75 Baht with more responsibility such as being members of comprising monthly remuneration, meeting allowance, the Executive Committee, Corporate Governance and bonus as follows: Committee, or Enterprise Risk Management Committee

No. Name Remuneration Meeting allowance Bonus Total (Baht) (Baht) (Baht) (Baht)

1 Mr. Areepong Bhoocha-Oom 204,666.67 150,000.00 522,737.08 877,403.75 2 Mr. Apichart Shinwanno 102,333.33 85,000.00 313,642.25 500,975.58 3 Mr. Chuan Sirinuntporn 116,000.00 295,000.00 474,511.50 885,511.50 4 Mr. Porametee Vimolsiri 116,000.00 232,083.33 474,511.50 822,594.83 5 Gen. Walit Rochanapakdee 116,000.00 285,000.00 474,511.50 875,511.50 6 Gen. Kampanat Ruddit 112,333.33 200,000.00 458,705.05 771,038.38 7 Mr. Witoon Kulchroenwirat 116,000.00 295,000.00 474,511.50 885,511.50 8 Mr. Distat Hotrakitya 102,333.33 162,500.00 418,189.66 683,022.99 9 Mr. Sutat Patmasiriwat 116,000.00 312,500.00 474,511.50 903,011.50 10 Mr. Chumpol Rimsakorn 102,333.33 275,000.00 418,189.66 795,522.99 11 Mr. Khemchai Chutiwongse 13,666.67 10,000.00 42,241.38 65,908.05 12 Mr. Sarun Chareonsuwan 13,666.67 - 14,080.46 27,747.13 13 Mr. Soonchai Kumnoonsate 54,000.00 70,000.00 220,500.00 344,500.00 14 Mr. Kornrasit Pakchotanon 65,333.33 175,000.00 266,777.72 507,111.05

Total 1,350,666.66 2,547,083.33 5,047,620.76 8,945,370.75

The light from Sufficiency Economy, the King Father’s Philosophy The Sufficiency Economy Philosophy of His Majesty King Bhumibol Adulyadej is comparable to a light of wisdom which has guided the Thai people and the country through the economic crisis to a secured and sustainable way of life. 58

Board of Directors

Mr. Areepong Bhoocha-Oom Mr. Apichart Chinwanno Mr. Porametee Vimolsiri Mr. Chuan Sirinuntporn Chairman Director Director Director

Gen. Kampanat Ruddit Gen. Walit Rochanapakdee Mr. Witoon Kulcharoenwirat Mr. Khemchai Chutiwongse Director Director Director Director

Mr. Sutat Patmasiriwat Mr. Sarun Charoensuwan Mr. Distat Hotrakitya Mr. Chumpol Rimsakorn Director Director Director Director

Mr. Soonchai Kumnoonsate Mr. Kornrasit Pakchotanon Director Director 59

2013 - 2014 Secretary General, Office of the Public Mr. Areepong Bhoocha-Oom Age 59 Sector Development Commission, the Prime Minister’s Office Chairman (February 23 - December 31, 2016) 2010 - 2013 Permanent Secretary, Ministry of Finance 2009 - 2010 Director General, the Excise Education Department, Ministry of Finance • Ph.D. (Finance), University of Mississippi, USA Directorship/Management Position in Other State • M.A. (Finance), Marshall University, USA Enterprises/Companies • B.A. (International Management), Boston University, USA • Chairman, Thai Airways International Public Company Limited Training Amount/Value of Shares in Other Companies* • Director Certification Program 2000, the Thai Institute of Directors (IOD) None • Government Debt Monitoring System, World Bank Connected Transactions in 2016 • Global Trend and Public Enterprise Reform, Harvard University, USA None • Awareness, Vision, Imagination, Responsibility, * Refers only to the shares of the companies in the same Action (AVIRA), INSEAD Business School, France industry or business in which EGAT operates and the amount of • Senior Executive Program (Class 4), Capital Market the shares held is equal to or higher than 10 percent of the total Academy (CMA) voting rights • Senior Executive Course in Justice Administration (Class 14), the Court of Justice • National Defense Regular Course (Class 46), Age 60 Thailand National Defense College Mr. Apichart Chinwanno • Senior Executive Program in Urban Management Director (February 23 - December 31, 2016) (Class 1), organized by the Urban Green Development Institute Bangkok and King Prajadhipok’s Institute Education • Pillar of the Kingdom Program (V.I.P Class), • Ph.D. (International Relations), St. Antony’s College, organized by the Association of Prof. Dr. Boonrod University of Oxford, UK Bintson Institute and Chula Unisearch • M.Sc. (International Relations), London School • The Rule of Law and Democracy Course (Class 1), of Economics and Political Science, University of Office of the Constitutional Court London, UK • Judicial Executive Administration Course (Class 5), • B.Sc. (Economics and Politics) (Upper Second Class the Administrative Court of Thailand Honors), University of Southampton, UK

Work Experience Training 2015 - Present Permanent Secretary, Ministry of • Training organized by the Thai Institute of Directors Energy (IOD) 2015 Permanent Secretary, Ministry of - Director Certification Program (Class Tourism and Sports 227/2016) 2015 Secretary General, Office of the Public Sector Development Commission, - Financial Statements for Directors (Class the Prime Minister’s Office 31/2016) 2014 - 2015 Permanent Secretary, Ministry of • Columbia Senior Executive Program (CSEP) (Class Energy 123/2007), Columbia Business School, USA 60

• National Defense Regular Course (Class 52/2009- • Director Certification Program (Class 42/2013), the 2010), Thailand National Defense College Thai Institute of Directors (IOD) • Training Program for Senior Executive (Class • Top Executive Program in Commerce and Trade 33/2001), Office of the Civil Service Commission (TEPCoT) (Class 5/2012), University of the Thai Chamber of Commerce Work Experience • Chief Information Officer (CIO) Training (Class 2016 Retired 23/2010), Office of the Civil Service Commission 2015 - 2016 Permanent Secretary, Ministry of • National Defense Regular Course (Class 52/2009), Foreign Affairs Thailand National Defense College 2013 - 2015 Ambassador of Thailand to France Work Experience 2011 - 2013 Ambassador of Thailand to Belgium 2015 - present Secretary - General, Office of the 2009 - 2011 Deputy Permanent Secretary, Ministry National Economic and Social of Foreign Affairs Development Board, Office of the 2005 - 2009 Ambassador of Thailand to Sweden Prime Minister 2002 - 2005 Director - General, Department of 2009 - 2015 Deputy Secretary - General, Office East Asian Affairs, Ministry of Foreign of the National Economic and Social Affairs Development Board, Office of the Directorship/Management Position in Other State Prime Minister Enterprises/Companies 2005 - 2009 Senior Advisor in Policy and Plan, Office of the National Economic and None Social Development Board, Office of the Prime Minister Amount/Value of Shares in Other Companies* 1999 - 2005 Director, Macroeconomic Strategy None and Planning Bureau, Office of the National Economic and Social Connected Transactions in 2016 Development Board, Office of the None Prime Minister

* Refers only to the shares of the companies in the same Directorship/Management Position in Other State industry or business in which EGAT operates and the amount of Enterprises/Companies the shares held is equal to or higher than 10 percent of the total • Member of the Bank of Thailand Board voting rights • Board Member, Thailand Institute of Scientific and Technological Research

Amount/Value of Shares in Other Companies* Mr. Porametee Vimolsiri Age 56 None Director (January 1 - February 11, February 23 - December 31, 2016) Connected Transactions in 2016 None

* Refers only to the shares of the company in the same Education industry or business in which EGAT operates and the amount of the shares held is equal to or higher than 10 percent of the total • Ph.D. (Economics), Carleton University, Canada voting rights • M.A. (International Affairs), Columbia University, USA • B.A. (Economics), Chulalongkorn University

Training • Top Executive Program in Business, Industry and Investment Development (Class 2/2015), Institute of Business and Industrial Development 61

Connected Transactions in 2016 Mr. Chuan Sirinuntporn Age 63 None

Director (January 1 - February 11, February 23 - * Refers only to the shares of the company in the same December 31, 2016) industry or business in which EGAT operates and the amount of the shares held is equal to or higher than 10 percent of the total voting rights Education • M.A. (Development Administration) (Hons), National Institute of Development Administration Gen. Kampanat Ruddit Age 60 • B.A (Political Science), Chulalongkorn University Director (January 1 - February 11, February 23 - Training December 31, 2016) • Director Accreditation Program, the Thai Institute of Directors (IOD) • Thai Senior Executive Development Program, Education National Graduate Policy Studies (GRIP), Japan • M.A., Command and General Staff College • Leadership for Changes, Prince Damrong • B. Sc., Chulachomklao Royal Military Academy Rajanuphab Institute of Research and Development, Ministry of Interior Training • National Defense Regular Course, Thailand National • National Defense Joint Public-Private Sector Course, Defense College Class 22/2009, Thailand National Defense College • Certificate Course in Public Law, Thammasat • Regular Course (class 66/1987), Command and University General Staff College • Senior Governing Officers Training Program, Institute of Administration Development Work Experience • Honorary Ph.D, Ubon Ratchathani Rajabhat 2016 - Present Retired University 2015 - 2016 Assistant Commander in Chief, Royal • Honorary Ph.D, Ubon Ratchathani University Thai Army 2014 - 2015 Commander, the First Army Area Work Experience 2013 - 2014 Assistant Chief of Staff for Intelligence, 2013 - Present Retired Royal Thai Army 2012 - 2013 Director - General, Department of 2011 - 2013 Deputy Commander, the First Army Provincial Administration Area 2011 - 2012 Governor, Nakhon Ratchasima 2009 - 2011 Division Commanding General, the Province First Division, King’s Guard 2010 - 2011 Governor, Prae Province Directorship/Management Position in Other State 2007 - 2010 Governor, Ubon Ratchathani Province Enterprises/Companies Directorship/Management Position in Other State • Board Member, Airports of Thailand Public Company Enterprises/Companies Limited - • Chairman, Risk Management Committee, Airports of Thailand Public Company Limited Amount/Value of Shares in Other Companies* • Chairman, Information Technology Management None and Communication Committee, Airports of Thailand Public Company Limited 62

Amount/Value of Shares in Other Companies* Amount/Value of Shares in Other Companies* None None

Connected Transaction in 2016 Connected Transaction in 2016 None None

* Refers only to the shares of the companies in the same * Refers only to the shares of the companies in the same industry or business in which EGAT operates and the amount of industry or business in which EGAT operates and the amount of the shares held is equal to or higher than 10 percent of the total the shares held is equal to or higher than 10 percent of the total voting rights voting rights

Gen. Walit Rochanapakdee Age 60 Mr. Witoon Kulcharoenwirat Age 58 Director (January 1 - February 11, February 23 - Director (January 1 - February 11, February 23 - December 31, 2016) December 31, 2016)

Education Education • M.A. (Public Administration) (Public Policy), • M.Eng. (Safety Engineering), Kasetsart University Burapha University • M.Eng. (Transportation Engineering), • B.Sc, Chulachomklao Royal Military Academy Chulalongkorn University • B.Eng. (Civil Engineering), Chiang Mai University Training • National Defense Joint Public-Private Sector Course Training (Class 22), Thailand National Defense College • Executive Program in Energy Literacy for a Sustainable Future (Class 7/2016), Thailand Energy Work Experience Academy 2016 - Present Retired • National Defense Regular Course (Class 52/2009), 2015 - 2016 Deputy Commander in Chief, Royal Thailand National Defense College Thai Army Headquarters • Senior Executive Program 1 (Class 43/2005), Civil 2014 - 2015 Deputy Chief of Staff, Royal Thai Service Training Institute, Office of the Civil Service Armed Forces Headquarters Commission 2014 • Commander, the Fourth Army Area Work Experience • Director of Internal Security Operations Command, the Fourth 2014 - Present Director - General, Department of Army Area - Forward Energy Business, Ministry of Energy 2013 - 2014 First Corps Commander, the First Army 2013 - 2014 Deputy Director - General, Department Area, Royal Thai Army of Energy Business, Ministry of Energy 2012 - 2013 Deputy Chief of Staff for Logistics, 2009 - 2013 Director, Bureau of Natural Gas Royal Thai Army Headquarters Business Safety, Department of Energy Business, Ministry of Energy 2011- 2012 Deputy Commander, the First Army Area, Royal Thai Army 2007 - 2008 Director, Bureau of Liquefied Petroleum Gas Business Safety, Directorship/Management Position in Other State Department of Energy Business, Enterprises/Companies Ministry of Energy - 63

Directorship/Management Position in Other State 2007 - 2011 Director - General, Department of Enterprises/Companies Public Prosecutor Commission • Director, Ratchaburi Electricity Generating Holding 1994 - 1995 Attorney, Pathum Thani Province, Public Company Limited (RATCH) Office of the Attorney General

Amount/Value of Shares in Other Companies* Directorship/Management Position in Other State Enterprises/Companies None • Board Director, Sukhumvit Asset Management Co. Connected Transactions in 2016 Ltd None Amount/Value of Shares in Other Companies*

* Refers only to the shares of the companies in the same None industry or business in which EGAT operates and the amount of the shares held is equal to or higher than 10 percent of the total Connected transaction in 2016 voting rights None

* Refers only to the shares of the companies in the same Mr. Khemchai Chutiwongse Age 62 industry or business in which EGAT operates and the amount of the shares held is equal to or higher than 10 percent of the total Director (January 1 - February 11, 2016 ) voting rights

Education Age 63 • Master of Laws, Harvard University, USA Mr. Sutat Patmasiriwat • Barrister at Law (Honors), Institute of Legal Director (January 1 - February 11, February 23 - Education of Thai Bar Association December 31, 2016) • Bachelor of Law (1st Class Honors), Chulalongkorn University Education Training • B. Eng (Mechanical Engineering), Chulalongkorn • Training programs organized by Thai Institute of University Directors - Director Certification Program (Class Training 29/2003) • Training Programs organized by the Thai Institute - Director Accreditation Program (Class of Directors 18/2004) - Director Certification Program • Top Executive Program, Capital Market Academy - Chartered Director Class (Class 9/2015) • Politics and Governance in Democratic Systems for - Financial Statement for Directors (Class Executives, King Prajadhipok’s Institute 14/2011) • National Defense Regular Course, Thailand National - Role of the Chairman Program (Class Defense College 24/2010) Work Experience • Advanced Management Program, Harvard Business School, USA (2009) 2015 - Present Deputy Attorney General, Office of the Attorney General • Senior Executive Development Program, Foundation for International Human Resource 2014 - 2015 Inspector General, Office of the Development (2006) Attorney General • Masterful Coaching Workshop, Hay Group (2006) 2011 - 2013 Director - General, Department of Legal Counsel • Creating Value through Product Management and Customer Profitability, Sasin Graduate Institute 64

of Business Administration of Chulalongkorn Work Experience University (2004) 2016 - Present Ambassador of Thailand to Republic • ASEAN Executives Development Program, of Korea Thammasat Business School (2003) 2015 Director - General, Department of Work Experience East Asian Affairs, Ministry of Foreign Affairs 2013 - Present Retired 2012 - 2015 Director - General, Department of 2009 - 2013 EGAT Governor European Affairs, Ministry of Foreign 2008 - 2009 Deputy Governor - Generation, EGAT Affairs 2007 - 2008 Assistant Governor - Administration, 2008 - 2012 Minister, Royal Thai Embassy, Brussels Generation Area, EGAT Directorship/Management Position in Other State 2005 - 2007 Assistant Governor - Operation- Enterprises/Companies Maintenance Business, EGAT - Directorship/Management Position in Other State Enterprises/Companies Amount/Value of Shares in Other Companies* • President, Ratchaburi Electricity Generating Holding None Public Company Limited

Amount/Value of Shares in Other Companies* Connected Transaction in 2016 None None

*Refers only to the shares of the companies in the same Connected Transactions in 2016 industry or business in which EGAT operates and the amount of None the shares held is equal to or higher than 10 percent of the total voting rights * Refers only to the shares of the companies in the same industry or business in which EGAT operates and the amount of the shares held is equal to or higher than 10 percent of the total voting rights. Mr. Distat Hotrakitya Age 58 Director (February 23 - December 31, 2016)

Mr. Sarun Charoensuwan Age 51 Education Director (January 1 - February 11, 2016) • D.E.A. de Droits Public, Strasbourg III (Robert Schuman), France Education • Bachelor of laws (Honors), Chulalongkorn University • M.A. (Political Science) (Diplomatic), Georgetown Training University, USA • Certificate in Public Administration, École Nationale • B.A. (Political Science) (International Relations), d’ Administration (ENA), France Chulalongkorn University • Certificate in Comparative Law, Strasbourg III Training (Robert Schuman), France • Politics and Governance in Democratic System • Certificate in Public Administration, École Nationale for Executives (Class 17/2012), King Prajadhipok’s d’ Administration (ENA), France Institute • The Rule of Law and Democracy Course (Class • Executive Program: Executives with Vision and 3/2015), Office of the Constitutional Court Ethics (Class 56/2007), Civil Service Training Institute, Office of the Civil Service Commission 65

• Executive Program for Legal Officer (Class 1/2012), Office of the Council of State Mr. Chumpol Rimsakorn Age 56 • National Defense Regular Course (Class 53/2010), Director (February 23 - December 31, 2016) Thailand National Defense College • Good Governance for University Study Development, Knowledge Network Institute of Thailand (2010) Education • Director Certification Program (Class 94/2007), the • MPPM, National Institute of Development Thai Institute of Directors Administration • Executive Program: Executives with Vision (Class • LL.B., Ramkhamhaeng University 47/2006), Civil Service Training Institute, Office of Training the Civil Service Commission • Training programs held by the Thailand Institute of Work Experience Directors 2014 - Present Secretary - General, Office of the - Director Certification Program (DCP) (Class Council of State 221/2016) 2012 - 2014 Deputy Secretary - General, Office of - Financial Statements for Directors (FSD) the Council of State (Class 30/2016) 2006 - 2012 Permanent Law Councilor, Office of - Role of the Chairman Program (RCP) (Class the Council of State 39/2016) Directorship/Management Position in Other State - Advanced Audit Committee Program (AACP) Enterprises/Companies (Class 24/2016) • Inspector General Program, the Prime Minister’s • Board member, Krungthai Bank Office (2015) • Board member, MCOT Public Company Limited • Senior Executive Program (Class 60), Office of the Amount/Value of Shares in Other Companies* Civil Service Commission • National Defense Joint Public-Private Sector Course None (Class 53), Thailand National Defense College Connected Transactions in 2016 • Good Governance for Boards of Directors and Executives of State Enterprises and Publicly–owned None Establishment (Class 10), King Prajadhipok’s *Refers only to the shares of the companies in the same Institute industry or business in which EGAT operates and the amount of • Senior Executive Program (Class 19), Capital Market the shares held is equal to or higher than 10 percent of the total Academy (CMA) voting rights • Executive Program in Energy Literacy for a Sustainable Future (Class 7), Thailand Energy Academy

Work Experience 2015 - Present Deputy Permanent Secretary, Ministry of Finance 2014 - 2015 Inspector General, Ministry of Finance 2013 - 2014 Principal Advisor in Tax Development and Administration, the Excise Department, Ministry of Finance 2011 - 2013 Deputy Director - General, the Excise Department, Ministry of Finance 66

Directorship/Management Position in Other State Work Experience Enterprises/Companies 2016 - Present Retired • Member of the Board of Committee, Thailand 2013 - 2016 EGAT Governor Tobacco Monopoly, Ministry of Finance 2011 - 2013 Deputy Governor - Power Plant • Member of the Board of Director, Thailand Post Development, EGAT Company Limited 2010 - 2011 Assistant Governor - Fuel Amount/Value of Shares in Other Companies* Management, EGAT None Directorship/Management Position in Other State Enterprises/Companies Connected Transactions in 2016 • Chairman, EGAT International Company Limited None (January 1 – June 12, 2016)

*Refers only to the shares of the companies in the same Amount/Value of Shares in Other Companies* industry or business in which EGAT operates and the amount of None the shares held is equal to or higher than 10 percent of the total voting rights Connected Transactions in 2016 None

* Refers only to the shares of the companies in the same Age 60 Mr. Soonchai Kumnoonsate industry or business in which EGAT operates and the amount of EGAT Governor the shares held is equal to or higher than 10 percent of the total Director (Ex-Officio) (January 1 - June 12, 2016) voting rights

Education • B. Eng. ( Electrical Engineering), Chulalongkorn Mr. Kornrasit Pakchotanon Age 58 University EGAT Governor Training Director (Ex-Officio) (June 15 – December 31, 2016) • The Rule of Law and Democracy Course (Class 3), Office of the Constitutional Court Education • Senior Executive Program (Class 18/2014), Capital • B. Eng. (Mechanical Engineering), Chulalongkorn Market Academy (CMA) University • Director Accreditation Program (Class 100/2013), Thai Institute of Directors Association (IOD) Training • Executive Program in Energy Literacy for a • Training programs held by the Thailand Institute of Sustainable Future (Class 2/2012-2013), Thailand Directors (IOD) Energy Academy - Role of the Chairman Program (2015) • Advanced Management Program, Harvard Business - Financial Statements for Directors (2015) School, USA (2011) - Director Certification Program (2014) • Public Administration and Law for Executive (Class - Chartered Director Class (2014) 11/2011), King Prajadhipok’s Institute • Advanced Management Program, Harvard Business • Psychological Operations for Management (Class School, USA (2014) 101/2007), Applied Psychology Institute • Senior Executive Program, Sasin Graduate Institute of Business Administration of Chulalongkorn University (2013) • Public Economics Management for Executives, King Prajadhipok’s Institute (2012) 67

Work Experience 2016 - Present EGAT Governor 2015 - 2016 Deputy Governor - Generation, EGAT 2013 - 2015 Deputy Governor - Business Development, EGAT 2011 - 2013 Assistant Governor - Generation 3, EGAT

Directorship/Management Position in Other State Enterprises/Companies • Chairman, EGAT International Company Limited (July 29 – December 31, 2017) • Board Member, Electricity Generating Public Company Limited

Amount/Value of Shares in Other Companies* None

Connected Transactions in 2016 None

*Refers only to the shares of the companies in the same industry or business in which EGAT operates and the amount of the shares held is equal to or higher than 10 percent of the total voting rights

68

Executives

Mr. Kornrasit Pakchotanon Mr. Suthon Boonprasong Mrs. Juree Somprasong Mr. Seubphong Buranasirin Governor Deputy Governor - Transmission System Advisor Level 14 to the Governor Deputy Governor - Administration

Mr. Saharath Boonpotipukde Mr. Kijja Sripatthangkura Mr. Thaworn Ngamganokwan Mr. Wichai Simadhamnand Deputy Governor to Office of the Governor Deputy Governor - Policy and Planning Deputy Governor - Fuel Deputy Governor - Transmission System Serving as EGAT Spokesman Development

Mr. Wiwat Chancherngpanich Mr. Wanchai Hongcherdchai Mr. Nikul Silasuwan Mr. Jakgrich Pibulpairoj Deputy Governor - Power Plant Deputy Governor - Account and Finance Deputy Governor - Generation Deputy Governor - Business Development Serving as Chief Financial Officer (CFO) Development

Mr. Boonyanit Wongrukmit Mr. Rum Herabat Mr. Chanin Chaonirattisai Deputy Governor - Corporate Social Engineer Level 14 to the Governor Engineer Level 14 to the Governor Affairs Appointed as Chief Executive Officer, Appointed as President, Electricity Ratchaburi Electricity Generating Generating Public Company Limited Holding Public Company Limited

69

Mr. Kornrasit Pakchotanon Age 58 Mr. Suthon Boonprasong Age 59 Governor Deputy Governor - Transmission System

Education Education • Bachelor of Engineering (Mechanical Engineering), • Master of Business Administration, Chiang Mai Chulalongkorn University University • Bachelor of Economics, Sukhothai Thammathirat Training Open University • E-Government for Chief Executive Officer Program • Bachelor of Laws, Ramkhamhaeng University (e-GCEO), Electronic Government Agency (Public • Bachelor of Engineering (Electrical Engineering), Organization) Chulalongkorn University • Leader Program, Capital Market Academy • Training Programs organized by Thai Institute of Training Directors • Politics and Governance in Democratic System for - Financial Statements for Directors Executives, King Prajadhipok’s Institute - Role of the Chairman Program • Director Certification Program, Thai Institute of - Chartered Director Class Directors - Director Certification Program • Advanced Management Program, Harvard Business School, USA • Executive Program in Energy Literacy, Thailand Energy Academy • Public Economics Management for Executives, King Prajadhipok’s Institute • Advanced Management Program, Harvard Business School, USA • Advanced Police Command Course, Institute of Police Administration Development • Senior Executive Program, Sasin Graduate Institute of Business Administration of Chulalongkorn • Senior Executive Development Program-2, University Foundation for International Human Resource Development • Training Programs organized by King Prajadhipok’s Institute • Masterful Coaching Workshop, Hay Group - Public Economics Management for • Finance for Executive Decision, the Continuing Executives Education Center, Chulalongkorn University - Promotion of Peaceful Society Work Experience Work Experience October 1, 2013 Deputy Governor - Transmission System June 15, 2016 EGAT Governor October 1, 2010 Assistant Governor - Transmission October 1, 2015 Deputy Governor - Generation System Operation October 1, 2013 Deputy Governor - Business January 6, 2010 Assistant Governor - Corporate Development Social Affairs October 1, 2011 Assistant Governor - Generation 3 70

Mrs. Juree Somprasong Age 59 Mr. Seubphong Buranasirin Age 57 Advisor Level 14 to the Governor Deputy Governor - Administration

Education Education • Master of Laws, University of California, USA • Master of Public Administration, National Institute • Bachelor of Laws (2nd Class Honors), Chulalongkorn of Development Administration University • Bachelor of Economics (Development Economics), Ramkhamhaeng University Training • Bachelor of Laws, Thammasat University • Director Certification Program, Thai Institute of Directors Training • Executive Program in Legal Administration for the • Top Executive Program “Bhumipalung Phandin”, Public, Office of the Council of State Chulalongkorn University • Executive Development Program, Fiscal Policy • Anti-Corruption: The Practical Guide, Thai Institute Research Institute Foundation of Directors • Justice Administration for Executives, Office of the • Justice Administration for Executives, Office of the Attorney General Administrative Court • Masterful Coaching Workshop, Hay Group • National Defense Joint State-Private Sector Course, Thailand National Defense College Work Experience • Director Certification Program, Thai Institute of January 22, 2014 Advisor Level 14 to the Governor Directors March 15, 2010 Assistant Governor - Legal Affairs • Anti-Corruption Course for Executives, Office of the Bureau National Anti-Corruption Commission October 1, 2009 Assistant Governor - Legal Affairs Work Experience Bureau Serving as Assistant Secretary of EGAT Board of October 1, 2014 Deputy Governor - Administration Directors and Assistant Secretary of May 1, 2014 Assistant Governor - Human EGAT Board of Directors’ Executive Resources Committee October 1, 2012 Assistant Governor - Human January 1, 2009 Assistant Governor - Legal Affairs Resources Serving as Assistant Bureau Secretary of EGAT Board of Directors and Assistant Secretary of EGAT Board of Directors’ Executive Committee October 1, 2011 Assistant Governor - Office of the Governor Serving as Assistant Secretary of EGAT Board of Directors and Assistant Secretary of EGAT Board of Directors’ Executive Committee 71

Mr. Saharath Boonpotipukde Age 58 Mr. Kijja Sripatthangkura Age 56 Deputy Governor to Office of the Governor Deputy Governor - Policy and Planning Serving as EGAT Spokesman

Education Education • Bachelor of Engineering (Mechanical Engineering), • Bachelor of Engineering (Electrical Engineering), Prince of Songkhla University Chulalongkorn University Training Training • Public Economics Management for Executives, King • The Executive Program in Energy Literacy for a Prajadhipok’s Institute Sustainable Future, Thailand Energy Academy • Advanced Management Program, Harvard Business • ASEAN Government Leaders Program (AGLP), School, USA General Electric Management Research and • Senior Executive Program, Sasin Graduate Institute Development Institute, Crotonville, New York, USA of Business Administration of Chulalongkorn • Advanced Management Program, Harvard Business University School, USA • Thailand and the ASEAN Economic Community, • Senior Executive Program, Sasin Graduate Institute King Prajadhipok’s Institute of Business Administration of Chulalongkorn University Work Experience • Public Economics Management for Executives, King October 1, 2015 Deputy Governor - Policy and Prajadhipok’s Institute Planning • Director Certification Program, Thai Institute of October 1, 2013 Assistant Governor - Planning Directors • Basic Concept on Public-Policy Conflict Management through Peaceful Means, King Prajadhipok’s Institute Mr. Thaworn Ngamganokwan Age 58

Work Experience Deputy Governor - Fuel October 17, 2016 Deputy Governor to Office of the Governor Serving as EGAT Education Spokesman • Master of Public Administration, National Institute October 1, 2016 Deputy Governor to Office of the of Development Administration Governor • Bachelor of Engineering (Mining Engineering), October 1, 2014 Deputy Governor - Corporate Social Chulalongkorn University Affairs, Serving as EGAT Spokesman October 1, 2013 Engineer Level 13 to the Deputy Training Governor - Business Development • Director Certification Program, Thai Institute of Appointed as Executive Vice Directors President - Administration, EGAT International Company Limited • Promotion of Peaceful Society, King Prajadhipok’s Institute • Director Accreditation Program, Thai Institute of Directors • Royal Thai Army War College Course, Institute of Higher Army Studies 72

Work Experience January 1, 2016 Assistant Governor - Project October 1, 2015 Deputy Governor - Fuel Community Relations and Environment October 1, 2014 Assistant Governor - Mae Moh Mine October 1, 2013 Assistant Governor - Power Plant October 1, 2013 Assistant Governor - Fuel Construction Management

Mr. Wichai Simadhamnand Age 59 Deputy Governor - Transmission System Mr. Wanchai Hongcherdchai Age 58 Development Deputy Governor - Account and Finance Serving as Chief Financial Officer (CFO) Education • Bachelor of Engineering (Civil Engineering), Chulalongkorn University Education • Master of Business Administration, Chulalongkorn Training University • Director Accreditation Program, Thai Institute of • Bachelor of Accountancy (Cost Accounting), Directors Chulalongkorn University • Promotion of Peaceful Society, King Prajadhipok’s Institute Training • Strategic CFO in Capital Markets Program, the Stock Work Experience Exchange of Thailand October 1, 2016 Deputy Governor - Transmission • Anti-Corruption Course for Executives, Office of the System Development National Anti-Corruption Commission October 1, 2013 Assistant Governor - Transmission • Director Accreditation Program, Thai Institute of System Construction Directors • Leader Program, Capital Market Academy • Postgraduate Certificate in Finance, London School Mr. Wiwat Chancherngpanich Age 59 of Business and Finance, England • Finance Management Program, Economics and Deputy Governor - Power Plant Development Finance Academy (EFA) • Finance Professional Program, Economics and Education Finance Academy (EFA) • Bachelor of Engineering (Electrical Engineering), Work Experience Chulalongkorn University October 1, 2016 Deputy Governor - Account and Training Finance Serving as Chief Financial Officer (CFO) • Director Certification Program, Thai Institute of Directors October 1, 2013 Assistant Governor - Account • Environmental Governance for Executives, King Prajadhipok’s Institute

Work Experience October 1, 2016 Deputy Governor - Power Plant Development 73

October 1, 2015 Assistant Governor - Generation Mr. Nikul Silasuwan Age 57 and Maintenance Business Deputy Governor - Generation

Education • Bachelor of Engineering (Mechanical Engineering), Mr. Boonyanit Wongrukmit Age 53 Chiang Mai University Deputy Governor - Corporate Social Affairs Training • The Civil Service Executive Development Program, Education the Civil Service Training Institute • Master of Business Administration (Energy • Director Accreditation Program, Thai Institute of Management), University of Montreal, Canada Directors • Master of Business Administration (Business • Advanced Police Command Course, Institute of Administration), Chiang Mai University Police Administration Development • Bachelor of Engineering (Mechanical Engineering), Work Experience Chiang Mai University October 1, 2016 Deputy Governor - Generation Training October 1, 2014 Assistant Governor - Generation 2 • Advanced Management Program, Harvard Business School, USA • Leadership Succession Program, Institute of Research and Development for Public Enterprises (IRDP) Mr. Jakgrich Pibulpairoj Age 55 • Director Certification Program, Thai Institute of Directors Deputy Governor - Business Development Work Experience October 1, 2016 Deputy Governor - Corporate Social Education Affairs • Bachelor of Engineering (Mechanical Engineering), October 1, 2015 Assistant Governor - Business Chulalongkorn University Administration Training • Director Certification Program, Thai Institute of Directors • Leadership Succession Program, Institute of Research and Development for Public Enterprises (IRDP) • Foreign Affairs Executive Program, Devawongse Varopakarn Institute of Foreign Affairs • Director Accreditation Program, Thai Institute of Directors • Advanced Police Command Course, Institute of Police Administration Development

Work Experience October 1, 2016 Deputy Governor - Business Development 74

Mr. Rum Herabat Age 60 Mr. Chanin Chaonirattisai Age 60 Engineer Level 14 to the Governor Engineer Level 14 to the Governor Appointed as Chief Executive Officer, Appointed as President, Electricity Generating Ratchaburi Electricity Generating Holding Public Company Limited Public Company Limited Education Education • Master of Engineering (Electrical Engineering), • Bachelor of Engineering (Mechanical Engineering), University of Missouri-Rolla, USA Chulalongkorn University • Bachelor of Engineering (Electrical Engineering), Training University of Missouri-Rolla, USA • Executive Program in Energy Literacy, Thailand Training Energy Academy • Leader Program, Capital Market Academy • Director Certification Program, Thai Institute of • Financial Statements for Directors, Thai Institute of Directors Directors • Advanced Management Program, Harvard Business • Director Certification Program, Thai Institute of School, USA Directors • Royal Thai Army War College Course, Institute of • Politics and Governance in Democratic System for Advanced Military Studies Executives, King Prajadhipok’s Institute Work Experience • Basic Concepts on Public-Policy Conflict Management through Peaceful Means, King October 1, 2015 Engineer Level 14 to the Governor Prajadhipok’s Institute Appointed as Chief Executive Officer, Ratchaburi Electricity Work Experience Generating Holding Public October 1, 2015 Engineer Level 14 to the Governor Company Limited Appointed as President, Electricity October 1, 2014 Deputy Governor - Generation Generating Public Company October 1, 2013 Deputy Governor - Fuel Limited October 1, 2011 Assistant Governor - Operation and October 1, 2014 Deputy Governor - Policy and Maintenance Business Planning October 1, 2012 Assistant Governor - System Control 75

Executives Retired on October 1, 2016

Mr. Soonchai Kumnoonsate Mr. Chartchai Rojanaratanangkule EGAT Governor Deputy Governor - Account and Finance Serving as Chief Financial Officer (CFO) From July 31, 2013 to June 12, 2016 Retired on June 13, 2016 From October 1, 2014 to September 30, 2016 Retired on October 1, 2016 Mr. Ratanachai Namwong Deputy Governor - Power Plant Development Mr. Ataporn Vathanavisuth Deputy Governor - Business Development From October 1, 2013 to September 30, 2016 Retired on October 1, 2016 From October 1, 2015 to September 30, 2016 Retired on October 1, 2016 Mr. Boonmarg Smitthileela Deputy Governor - Transmission System Development

From October 1, 2013 to September 30, 2016 Retired on October 1, 2016

The light of graciousness King Rama X, His Majesty King Maha Vajiralongkorn Bodindradebayavarangkun, will further the late King’s dedication to the stability and prosperity of the country and the happiness of the Thai people. As reflected in the statement on the occasion of his enthronement “To fulfill the wish of His Majesty King Bhumibol and for the benefits of the Thai people”, His Majesty King Maha Vajiralongkorn Bodindradebayavarangkun will unwaveringly follow in his royal father’s footsteps. 78

Corporate Governance

EGAT has defined its vision to be “a world-class organization in electricity business” with “good corporate governance” among its 5 targets. Therefore, EGAT has given importance to corporate governance and management with transparency and traceability. The policy and guidelines of Ministry of Energy, Ministry of Finance, the State Enterprise Policy Office (SEPO), and stakeholders’ need have been used as the framework of business process in value delivery to regulators, customers, and stakeholders. The business process comprises of the following:

1. Corporate governance policy process 2. Core process 3. Supporting process

Corporate Governance Policy Process Moreover, the EGAT Charter concerning Corporate Governance Committee has been revised EGAT’s policy in management and in corporate with the addition of the consultation and comments governance was established by the top leaders of concerning legal affairs under the responsibility of EGAT consisting of Board of Directors, EGAT Governor, EGAT as duty and responsibility of the Committee. and Deputy Governors. In setting the policy, the Representatives of the Office of the Attorney General, government policy, the need and expectation Office of the Council of State, and EGAT Assistant of stakeholders, analysis of external factors, and Governor - Legal Affairs have been appointed as governance have been used as an input in setting members of the Corporate Governance Committee. vision, mission, values, strategy, resources planning, and work system planning. The policy was communicated As a result of the continuous implementation to all functional lines for the preparation of the plans of corporate governance, in 2016, EGAT was proudly and its implementation. The follow-up and evaluation awarded with the following: has been made as well. • Outstanding State-Owned Enterprise In 2016, EGAT’s corporate governance has been (SOE) Awards 2016 (in the category of reviewed by the Board of Directors to be consistent with Outstanding Management) from the the changing situation. From the review, the existing State Enterprise Policy Office policy has been confirmed. In summary, the 6 principles of corporate governance consisting of rule of law, • Outstanding State-Owned Enterprise morality, transparency, participation, accountability, with Development to Excellence and and effectiveness/efficiency will be implemented Model People from Office of the National concretely in the organization management as well as Anti-Corruption Commission in the ethical conduct of EGAT to be observed by the Board of Directors, executives, permanent employees, and temporary employees together with the rules and regulations of EGAT. The Board of Directors and the executives must be a good example in ethical conduct and morality. The executives and employees should work with dedication and responsibility. Disclosure of financial and non-financial information of EGAT should be carried out correctly, reliably, completely, adequately, regularly, and up-to-date. 79

• Sustainability Report Award 2016 in the Supporting Process category of outstanding sustainability report organized by Thai Listed The supporting process consists of good Companies Association, SEC: Securities governance, risk management and compliance and Exchange Commission, Thailand, (GRC), human resources development, research and and Thaipat Institute development, systems/standards development, information and communication technology (ICT), • The outstanding result of the Integrity accounting, finance, and investment. Under the and Transparency Assessment (ITA) of corporate governance, the supporting process has EGAT by the National Anti-Corruption given deliverables to the core process by means of Commission the working process with transparency, traceability, and effectiveness/efficiency. Moreover, the working Core Process process is based on teamwork and involvement The important core process of EGAT consists of the employees, taking into account the society, of fuel acquisition, power generation, and electricity community, and environment, and compliance with transmission processes. The deliverables to the the law. stakeholders are as follows: EGAT based the three processes on the 6 principles of corporate governance, namely rule of law, 1. System stability morality, transparency, participation, accountability, 2. Reliability and effectiveness/efficiency to respond to the need 3. Efficiency and expectation of customers and stakeholders of 4. Equity different groups with quality and equity in order to gain acceptance and trust in EGAT operation. This 5. Environmental friendliness will enable EGAT to expand its operation to meet the 6. Innovation increasing demand for electricity of customers and stakeholders, to support economic expansion for the country development. Apart from the management based on corporate governance to give deliverables to Besides the 3 processes in creating deliverables stakeholders widely and completely, EGAT has to the stakeholders, EGAT has other measures to declared its policy on sustainable development of promote corporate governance in the organization EGAT Group to promote the corporate governance such as conflict-of-interest management, anti- implementation of the affiliates by strictly abiding corruption, promotion of corporate governance, and to the law, emphasizing honesty and disclosure, dissemination of its activities. transparency, and anti-corruption, and promoting social responsibility in all processes in accordance with the international standard throughout the value chain taking into account the expectation of the stakeholders and equilibrium in economic, social, and environmental aspects. The knowledge and expertise will be used to create innovation for sustainable benefits of society and environment. Importance will be given to human rights and labor by equitable treatment. Professional efficiency and volunteering spirit for the society will be promoted in the employees. 80

Conflict of Interest Promotion and Dissemination of Activities EGAT has a measure of preventing the conflict Concerning Corporate Governance of interest both at the level of Board of Directors and EGAT’s Corporate Governance Master Plan at the Executives level. According to EGAT Regulations (2012-2016) which is linked with EGAT’s strategic on Corporate Governance, EGAT Board of Directors is plan is mobilized by EGAT Committee for Corporate responsible for supervising and solving the problem Governance, Code of Conduct, and Corporate Values regarding conflict of interest which may occur among and Culture with representatives of every corporate the executives, Board of Directors, and employees unit as members and report to the Board Executive and investigating the misuse of EGAT’s property while Committee and Corporate Governance Committee finding a preventive measure against the abusive quarterly. The report shall be made to the EGAT Board self-dealing of the Board members. Every Board of Director every six months. member has to report on other positions they are holding including committee member, management In 2016, EGAT held several activities concerning position in other state enterprises or companies, as corporate governance which were more proactive with well as connected transactions, amount/value of addition of training courses in corporate governance, shares in other companies in the same industry or code of conduct, and corporate values and culture business in which EGAT operates and the amount of to the employees who were appointed executives. the shares held is equal to or higher than 10 percent More communication channels were provided by of the total voting rights. Additionally, the qualification assigning each corporate unit to be responsible for of the Board members shall be verified to be in disseminating knowledge and understanding of compliance with the Constitution of Thailand, the Act corporate governance, code of conduct, and corporate on Qualification Standards for Directors and Employees values in the organization. Moreover, people with of State Enterprises, B.E. 2518 (1975), EGAT Act B.E. 2511 different opinions were invited to the opinion panel, (1968), and other related laws. and an exchange of views between the stakeholders and high level executives of EGAT were arranged. For EGAT executives, the executives from the level of Deputy Governor or the equivalent and above must disclose the conflict of interest between one’s personal interest and the organization’s interest on their appointment. Moreover, the members of the procurement committees must also disclose the conflict of interest between one’s personal interest and the organization’s interest. Anti-Corruption Policy EGAT focuses on promoting corporate governance in the administration and participation in the inspection as well as creating awareness and understanding of Anti-Corruption in the same direction. Based on the preventive policy in anti-corruption given in 2014, the employees are urged to give importance to anti-corruption. Information on anti-corruption has been circulated for information of EGAT employees. Preventive measures and guidelines on inspecting and whistleblowing are available to prevent misconduct in every working process. Any corruption found to have taken place, immediate investigation and severe punishment will be undertaken to prevent the same occurrence. 81

Official Information Act Compliance Report

In compliance with the Official Information Act, B.E. 2540 (1997), EGAT has appointed the Committee on EGAT Information Management to be responsible for determining policies, measures, or criteria regarding information management, permission to use information, and information services, with the approval of EGAT Deputy Governor - Corporate Social Affairs. EGAT Information Center is responsible for information service in accordance with EGAT information management policy with a commitment to provide news and information service in a fair, equitable, and transparent manner and in compliance with the Official Information Act B.E. 2540 (1997) and other relevant laws. EGAT has put in place its information disclosure system which defines clear rules, procedures, systems, and practices for the disclosure of EGAT information complying with the Official Information Act B.E. 2540 (1997). EGAT’s information service is available in various forms such as documents, internet-accessible information, audiotext, fax on demand, and assistance by EGAT staff. Moreover, interested persons can visit the EGAT Information Center at EGAT Headquarters, Bang Kruai District, Nonthaburi Province.

Detailed information or documents on important topics are available at the concerned divisions with the assistance of appointed EGAT staff in each division. Interested persons can visit the required division or by telephone. Internet-Accessible Information EGAT Call Center Information on various activities of EGAT is EGAT Call Center is available to provide available at EGAT website: www.egat.co.th which is enquiry service regarding technical and other related accessible on 24-hour basis. This information includes information and suggestions useful to the public corporate profile, power plant and transmission including emergency or situations related to the systems, power generation, energy sales, power high-voltage transmission system. EGAT Call Center development plan, and new power projects, etc. has provided a one-stop service for the people countrywide to contact EGAT speedily around the clock Social media (Facebook/EGAT 1416 and via EGAT Call Center 1416. Twitter/EGAT 1416) as well as Mobile Application EGAT 1416 in iOS and Android system have been provided as another communication channel to give information, inquiries and complaint, and announcement of emergency to the public. 82

Activities of EGAT Information Center in 2016 4. Report submission to the Office of Permanent Secretary for Energy which is the regulatory body 1. Enquiry service through telephone, EGAT’s website, and the assistance to visitors at the Information Center during office hours EGAT Information Management Committee 2. Information service through its Call Center The Committee on EGAT Information 1416: In 2016 (January - December), EGAT Information Management is responsible for setting policies and Center provided 9,362 times of information services measures on information management system, through its Call Center 1416. Types of information of providing information service as well as considering public interest included the following: complaints or objection according to the Official Information Act, B.E. 2540 (1997). The resolutions of • Information on EGAT’s operations the Committee will be responsible by relevant units regarding power generation and of EGAT. transmission • EGAT’s CSR activities • Job recruitment, internship training Public Complaint Process opportunities, and request for the visit In 2016, EGAT’s Voice of Stakeholders (VOS) of EGAT’s offices and power plants received 904 comments and complaints from different • Location and phone numbers of EGAT’s groups of stakeholders of which the majority is the offices, sites, and individual staff appeals for the land use along the transmission • Emergency situations and complaints line system under construction. The rest are on procurement, environment and quality of life, EGAT 3. Establishment of EGAT’s Electronic Official services, human resource, etc. Information Center (www.oic.go.th/infocenter6/623/) in accordance with the policy of the Office of the Official Information Commission

The Chart illustrating comments received in 2016 categorized by subjects 83

Power Development and Future Plan

Thailand Power Development Plan 2015-2036 (PDP2015) is a master plan of Thailand Integrated Energy Blueprint (TIEB) which consists of 5 integration master plans namely Thailand Power Development Plan (PDP), Energy Efficiency Plan (EEP), Alternative Energy Development Plan (AEDP), Natural Gas Supply Plan, and Petroleum Management Plan. The preparation of TIEB and PDP2015 is based on 3 criteria, which are energy security, economy, and ecology. PDP2015 was approved by the Energy Regulatory Commission (ERC) and the National Energy Policy Council (NEPC) before acknowledged by the Cabinet on June 30, 2015

According to PDP2015, the progress of the projects of EGAT, Independent Power Producers (IPPs), small power producers (SPPs), and power purchase from foreign country are as follows : EGAT’s Power Plant Projects

1. New Power Plant Construction

Replacement of Mae Moh Power Plant, Units 4-7 Replacement of Mae Moh Power Plant, Units Mine as fuel. The construction started in January 2015 4-7 which is located in the area of the existing Mae Moh with the scheduled commercial operation date in Power Plant, Mae Moh District, Lampang Province is November 2018. Currently, the new Environmental a baseload thermal power plant with the generating Health Impact Assessment Report (EHIA) is being capacity of 600 MW using lignite from Mae Moh Coal studied, and public hearing is organized. 84

2. Renewable Power Plant Development EGAT has continuously developed renewable power plant projects in response to the government’s policy in promoting electricity generation from renewable energy and to reduce fossil fuel consumption. The important projects in 2016 are as follows:

Project Location Type Commissioning Capacity (Province) Date (MW)

Thap Sakae Solar Power Plant Prachuap Khiri Khan Solar Mar. 2016 5 Lam Takhong Wind Power Project, Nakhon Ratchasima Wind Dec. 2017 24 Phase 2 Lamtakong Jolabha Vadhana Nakhon Ratchasima Hydro Feb. 2018 500 Hydropower Plant (Units 3-4) Kiew Kor Mah Hydropower Plant Lampang Hydro Dec. 2017 5.5 Klong Tron Hydropower Plant Uttaradit Hydro Sep. 2018 2.5 Chulabhorn Downstream Chaiyaphum Hydro Nov. 2019 1.25 Hydropower Project Srinagarind Renovation Kanchanaburi Hydro Jan. 2020 360 Hydropower Project Ban Chan De Hydropower Plant Kanchanaburi Hydro Sep. 2020 18

Total 916.25

3. Power Plant Projects in the Approval Process and Projects in the Initial Stage of Development

3.1 Replacement of Bang Pakong Power Plant, Units 1-2

The Replacement of Bang Pakong Power Plant, health impact assessment (EHIA) report of this project Units 1-2 with the generating capacity of 1,300 MW has been approved by the Board of Experts to consider is a combined cycle power plant using natural gas as the Environmental Impact Assessment Report. The main fuel and diesel as a standby. The power plant Project will receive comments from the independent will help stabilize the electricity system in the eastern entity and Energy Regulatory Commission (ERC) prior zone of the metropolitan areas. It is scheduled to start to submitting the comments for consideration of the commercial operation in April 2019. The environmental National Environment Board (NEB).

3.2 Replacement of South Bangkok Power Plant, Phase 1 The Replacement of South Bangkok Power It is targeted to be in a commercial operation in June Plant, Phase 1 with the generating capacity of 1,300 2019. Currently, the report on environmental and MW is a combined cycle power plant using natural health impact assessment (EHIA) of this project has gas as main fuel and diesel as a standby. The power been approved by the National Environment Board plant will help stabilize the electricity system in the (NEB) and the Cabinet. eastern and western zones of the metropolitan areas. 85

3.3 Krabi Coal-Fired Power Plant Krabi Coal-Fired Power Plant is the project natural gas, and building equilibrium in the energy of which will help strengthen security and reliability of the country. Krabi Coal-Fired Power Plant is a baseload the power system in the southern region and increase thermal power plant with the generating capacity of the share of coal in power generation in accordance 800 MW, using imported sub-bituminous/bituminous with the government policy in energy security as as main fuel. The project is currently in the stage of stated in PDP2015 concerning diversification of fuel public hearing from locals. in electricity generation, reduction of dependence of

3.4 Thepha Coal-Fired Power Plant Thepha Coal-Fired Power Plant is the project imported sub-bituminous/bituminous as fuel. It is which will help strengthen security of the power scheduled to be in commercial operation in January system in Southern Thailand and increase the long- 2021 and January 2024 respectively. The EHIA report term energy security. As a whole, the project will also of the power plant was presented to the first meeting help reduce the overall production cost of electricity of the Board of Experts to consider the environmental generation as mentioned in PDP2015. Thepha Coal- impact assessment report on December 24, 2015. Fired Power Plant is a baseload thermal power plant Presently, the project has been circulated to the with the total generating capacity of 2,000 MW, which National Economic and Social Development Board consists of 2 generating units, each of 1,000 MW, using (NESDAB) for comments.

3.5 Nuclear Power Plant Project According to the guidelines for power which consists of 2 generating units, each of 1,000 allocation and proportion of fuel in PDP2015, in 2036, MW. The project is scheduled for commercial operation the share of nuclear power in electricity generation in January 2035 and January 2036 respectively. At will not exceed 5 percent of the total capacity. The present, the project is under the study on technical project on nuclear power plant which uses clean fuel, matters, safety, and plant location. Moreover, the needs a low cost of investment, and contributes to the learning process is organized regularly to promote reduction of global warming is contained at the end understanding of the public regarding nuclear power of the plan. Nuclear Power Plant Project is a thermal plant. plant having the generating capacity of 2,000 MW 86

Power Purchase Project

Power Purchase from Independent Power Producers (IPPs) During 2017 - 2024, a total of 5 projects of power purchase from independent power producers (IPPs) and projects under construction with the total capacity of 5,270 MW are as follows:

Project Capacity Scheduled Commercial (MW) Operation Date (SCOD)

National Power Supply Co., Ltd., 270 Mar. 2017 Units 3-4 Gulf SRC Co.,Ltd. 1,250 (2 x 625) Mar./Oct. 2021 Gulf SRC Co.,Ltd. 1,250 (2 x 625) Mar./Oct. 2022 Gulf PD Co.,Ltd. 1,250 (2 x 625) Mar./Oct. 2023 Gulf PD Co.,Ltd. 1,250 (2 x 625) Mar./Oct. 2024

Total 5,270

Power Purchase from Small Power Producers (SPPs) The projects of power purchase from small power producers with the scheduled commercial operation dates during 2017-2025 have the total capacity of 4,029 MW comprising 2,610 MW of cogeneration projects and 1,419 MW of renewable energy projects.

Power Purchase from Neighboring Countries At present, EGAT has purchased power from neighboring countries with a total capacity of 3,877.6 MW from 7 projects. During 2017-2019, EGAT will purchase 1,843 MW more from 3 projects.

Project Country Fuel Capacity Scheduled Commercial (MW) Operation Date (SCOD)

Xe-Pian Xe-Namnoy Lao PDR Hydro 354 Feb. 2019 Nam Ngiep 1 Lao PDR Hydro 269 Jul. 2019 Xayaburi Lao PDR Hydro 1,220 Oct. 2019

Total 1,843 87

Transmission System Development and Expansion Projects

Approved Projects • On-going Transmission System Projects

1. Bulk Power Supply for the Greater Bangkok Area Phase 2 Project (GBAS2) Being a successive project of the Bulk Power totaling 10,600 MVA, capacitor bank of 672 MVAr, Supply for the Greater Bangkok Area Phase 1 Project and 23 other miscellaneous works relating to the (BSB1), the Phase 2 Project costs 9,170 million Baht transmission system expansion. As of December 2016, and comprises the construction of new transmission the progress of the project was 88.62 percent. This lines of 89.025 circuit-kilometers and a new substation, project is scheduled to be completed in 2019. expansion of 6 substations, installation of transformers

2. Transmission System Development Project for Power Purchase from Nam Ngum 3 and Nam Theun 1 Hydropower Plants (NNG3-NTN1) The purpose of this transmission system expansion of 3 substations, installation of transformers development project is to accommodate the power of 4,000 MVA, capacitor bank of 770 MVAr, and 2 other purchase from Nam Ngum 3 and Nam Theun 1 miscellaneous works relating to the transmission Hydropower Plants and/or other potential projects in system expansion. As of December 2016, the progress Lao PDR. The project costs 16,337.600 million Baht and of the project was 85.03 percent. The project is consists of the construction of the transmission line scheduled to be completed in 2018. of 1,004.832 circuit-kilometers and a new substation,

3. Transmission System Development Project for Power Purchase from IPPs The purpose of this transmission system of 6 substations, installation of transformers of 1,000 development project is to accommodate the power MVA, and 4 other miscellaneous works relating to the purchase from IPP power plants under 4 sub-projects transmission system expansion. As of December 2016, of the installed capacity of approximately 4,400 MW. the progress of the project was 76.84 percent. The The project costs 7,985 million Baht * and consists of completion date of the project has been postponed, the construction of the transmission line of 169.400 awaiting the clarification of the Project for power circuit-kilometers and 2 new substations, expansion purchase from the National Power Supply Co., Ltd.

The progress of each transmission system sub-project is as follows:

• The construction of the transmission system for power purchase from Gheco-One Power Plant Project was completed in February 2013.

• Concerning the construction of the transmission system for power purchase from National Power Supply Co., Ltd, the power purchase agreement has not been signed awaiting the approval of the Cabinet on the dispute settlement and the new EHIA.

• The construction of the transmission system for power purchase from Gulf JP UT Co., Ltd. was completed in August 2014.

• The construction of the transmission system for power purchase from Gulf JP NS Co., Ltd. was completed in May 2015.

Remark * As there was a change in the construction cost of Siam Energy Co., Ltd. (the new name: Gulf JP UT Co., Ltd.) from 1.702 billion Baht to be 1.05 billion Baht, the total cost of the project has been changed from 7.985 billion Baht to be 7.025 billion Baht.

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4. Transmission System Expansion and Renovation 8. Transmission System Expansion and Renovation Project, Phase 1: Substation (RSP1) Project Phase 2 (RTS2) This project costs 3.815 billion Baht and The project is a successive scheme of the consists of renovation of 15 substations and installation Transmission System Renovation and Expansion of transformers of 2,825 MVA, capacitor bank of 124.35 Project, Phase 1. The objective of this project is to MVAr, and 1 other miscellaneous work relating to the reduce the loss from power outage occurring from transmission system expansion. As of December 2016, the damaged or the aged substation equipment or the progress of the project was 65.40 percent. This the transmission lines and to increase capacity of the project is scheduled to be completed in 2019. substation and the transmission line in supplying electricity consistently and efficiently. This project costs 5. Main Transmission System Expansion Project 21.9 billion Baht and consists of the renovation and for Power Purchase from Small Cogeneration expansion of transmission lines of 1,346.720 circuit- Power Plant, Based on Request for Proposal 2010 kilometers and 31 substations, as well as installation (SPPC) of transformers of 5,221.50 MVA, capacitor bank of 928.90 MVAr, static var compensator (SVC) inductive This project costs 10.61 billion Baht and 100 MVAr, and 63 miscellaneous works relating to consists of the construction and expansion of relevant the transmission system expansion. As of December transmission system of 524.476 circuit-kilometers, 2016, the progress of this project was 6.17 percent. It a new substation, expansion of 3 substations, is scheduled to be completed in 2022. installation of transformers of 2,900 MVA, and 89 other miscellaneous works relating to the transmission 9. Transmission System Development in the system expansion. As of December 2016, the progress Area of Ubon Ratchathani, Yasothon, and Amnat of the project was 67.71 percent. The project is Charoen Provinces for Power Purchase from Lao scheduled to be completed in 2019. PDR Project (UYAP) 6. Transmission System Expansion and Renovation This project is intended to accommodate the Project, Phase 1: Transmission Line (RLP1) power purchase from Xe-Pian Xe-Namnoy Hydropower Plant Project, which has the installed capacity of 3 x 130 The project costs 9.850 billion Baht and MW and to receive more power from other potential comprises the construction of 1,655.077 circuit- projects in the southern part of Lao PDR. The project kilometers, expansion of 13 substations, and 20 costs 7.3 billion Baht and consists of the construction miscellaneous works relating to the transmission of transmission lines of 517.010 circuit-kilometers, system expansion. As of December 2016, the progress construction of a new substation, expansion of 4 of this project was 54.64 percent. It is scheduled to be substations, and installation of transformers of 400 completed in 2023. MVA. As of December 2016, the progress of this project was 3.21 percent. It is scheduled to be completed in 7. Transmission System Development Project in 2018. the Area of Loei, Nong Bua Lam Phu, and Khon Kaen Provinces for Power Purchase from Lao 10. Transmission System Improvement Project in PDR (LNKP) Eastern Region for System Security Enhancement The purpose of this transmission system (TIPE) development project is to accommodate power The purpose of this transmission system purchase of 1,220 MW from Xayaburi Hydroelectric improvement project is to enhance the security of Plant in Lao PDR. The project costs 12.06 billion Baht the power system in the eastern part of Thailand to and consists of the construction of the transmission continuously and sufficiently cope with the rising lines of 469 circuit-kilometers, 2 substations, expansion demand for electricity, to receive electric power from of 5 substations, as well as installation of transformers new power plants, and to promote the expansion of of 1,000 MVA and capacitor bank of 660 MVAr. As of industry and tourism in the eastern part of Thailand. December 2016, the progress of this project was 15.58 The project costs 12 billion Baht and consists of percent. It is scheduled to be completed in 2018. the construction of transmission lines of 459.664 circuit-kilometers and 3 new substations, expansion of a substation and installation of transformers of 89

3,000 MVA, and 8 miscellaneous works relating to of Thailand. The project costs 63.2 billion Baht and the transmission system expansion. As of December consists of the construction of transmission lines 2016, the progress of this project was 4.63 percent. It of 2,192 circuit-kilometers and a new substations, is scheduled to be completed in 2020. expansion of 8 substations, installation of transformers of 4,000 MVA, capacitor bank of 2,120 MVAr, static 11. Bulk Power Supply for the Greater Bangkok var compensator (SVC) inductive 50 MVAr/capacitive Area Phase 3 (GBA3) 250 MVAr, and 10 miscellaneous works relating to the transmission system expansion. As of December The project is a successive project of the 2016, the progress of this project was 0.07 percent. It Project on Bulk Power Supply for the Greater Bangkok is scheduled to be completed in 2022. Area Phase 2 (GBA2). The objective of this project is to respond to the increasing demand for electricity 14. Transmission System Development for the in the area of Greater Bangkok which is the most Project of Replacement of Mae Moh Power Plant, important economic center of the country and to Units 4-7 (MMR1) enhance the security of the electricity system of Thailand. The project costs 12.1 billion Baht and The transmission system development comprises the construction and improvement of the involves the construction of transmission lines to transmission lines of 176.030 circuit-kilometers and 2 accommodate the new Mae Moh thermal power new substations, expansion of a substation, installation plant of the installed capacity of 600 MW to replace of transformers of 10,200 MVA and capacitor bank of the former power plant which has been in operation 96 MVAr, and 10 miscellaneous works relating to the for more than 25 years. The Replacement of Mae Moh expansion of the transmission system. As of December Power Plant will serve the rising demand for electricity, 2016, the progress of this project was 23.98 percent. It maintain security of the power system, and respond is scheduled to be completed in 2020. to the government policy on the maximum utilization of domestic fuel. This transmission line project has an 12. Transmission System Expansion Project No. investment cost of 360 million Baht and consists of 12 (TS12) the construction of 230 kV underground transmission lines of 3.400 circuit-kilometers from the switchyard Being a successive scheme of Transmission of Mae Moh Power Plant - Mae Moh 3 substation and System Expansion Project No. 11 (TS11), the project expansion of Mae Moh 3 substation. As of December costs 60 billion Baht and consists of the construction 2016, the progress of this project was 8.00 percent. It of transmission lines of 3,127.927 circuit-kilometers is scheduled to be completed in 2017. and 7 new substations, expansion of 75 substations, and installation of transformers of 25,700 MVA and capacitor bank of 1,770 MVAr, static var compensator • Transmission System Projects Which Have (SVC) inductive 50 MVAr/capacitive 100 MVAr, and Not Yet Been Implemented 167 miscellaneous works relating to the transmission system expansion. As of December 2016, the progress of this project was 3.92 percent. It is scheduled to be 1. Transmission System Development for Lam completed in 2021. Takhong Wind Turbine Project (Phase 2) (LKW2) Being a successive project of Transmission 13. Transmission System Improvement Project in System Development for Lam Takhong Wind Turbine Western and Southern Regions to Enhance System Project (Phase 1), the project has an investment cost Security (TIWS) of 265 million Baht consisting of the construction of a new substation and relevant works to transmission The project involves the construction of system. This project is scheduled to start in 2017 and the 500 kV transmission system lines and additional to be completed in 2018. improvement of the 230 kV transmission system to cope with the increasing demand for electricity in the southern part of Thailand in the long run, to increase 2. Transmission System Development Project for the capability of the transmission system from the Power Purchase from Mong Kok Thermal Power West/Center of Thailand to the South, to promote Plant (MKTP) the expansion of business, industry, and tourism, and The purpose of this transmission system to remedy the power outage problem in the South development project is to accommodate the 90

transmission of power purchase from Myanmar’s 5. New Connection System between EGAT’s Mong Kok Thermal Power Plant of which the capacity Su-Ngai Kolok Substation and Tenaga Nasional is 405 MW. The investment cost of the project is 2.74 Berhad Co.Ltd’s Rantau Panjang Substation billion Baht. The 369 MW power purchased at Thailand- Project (SUKP) Myanmar border will be transmitted through the 230 kV transmission lines from Mong Kok Thermal The purpose of this project is to enhance Power Plant across the border of Thailand/Myanmar security of the power system in Narathiwat Province by (in Chiang Rai Province) to Mae Chan Substation. The receiving more electricity from Malaysia and promote 230 kV of transmission lines of 220 circuit-kilometers the cooperation between Thailand and Malaysia. The will be constructed from the Mae Chan substation to investment cost of the project is 535 million Baht. The Chiang Rai substation together with the expansion of construction of the project will be able to start after the 2 substations and installation of transformers of 400 Interconnection Agreement between EGAT and Tenaga MVA. Presently, the power purchase agreement is still Nasional Berhad Co.Ltd. (TNB) is achieved. under consideration, and the PPA has not been signed. As the Tariff MOU expired on October 22, 2011, the Transmission System Projects under Approval construction has been suspended until the signing of Process the Tariff Mou agreement. 1. Transmission System Improvement Project 3. Transmission System Development Project in Lower Southern Region to Enhance System for the Northeast, Lower North, Central Part, Security and Bangkok Metropolitan for System Security Enhancement (TIEC) The purpose of this project is to enhance the security of the main power system from Surat Thani The project will improve the transmission Province to Songkla Province and the lower southern system, enhance security of the power system, and part of Thailand to prevent the risk of power outage in support the renewable and alternative power project the long run, to cope with the increasing demand for under the Renewable Power Development Plan of the electricity of household, business, industry and tourism government and the ASEAN Power Grid (APG) Project. in the South, and to support ASEAN power grid system The investment cost of the project is 94.04 billion Baht. (APG) and power purchase from neighboring countries. The project comprises the construction of transmission The project has an investment cost of 35.4 billion Baht lines of 2,645 circuit-kilometers, expansion of 14 and comprises the construction of transmission lines of substations, installation of transformers of 12,000 MVA, 1,421 circuit-kilometers and a substation, expansion of capacitor bank of 2,420 MVAr, static var compensator 10 substations, and installation of transformers of 4,000 (SVC) inductive 600 MVAr/capacitive 1,800 MVAr, and MVA and capacitor bank of 1,100 MVAr. 2 miscellaneous works relating to the transmission system expansion. The project is scheduled to start in 2. Transmission System Development Project for 2017 and to be completed in 2023. Thepha Coal-Fired Power Plant 4. Transmission System Development Project for The project has an investment cost of 7.48 the Upper Northern Region for System Security billion Baht and comprises the construction of Enhancement (TIPN) transmission lines of 150 circuit-kilometers and a substation, expansion of 4 substations, as well as The project has an investment cost of 12.24 installation of capacitor bank of 432 MVAr and static billion Baht and consists of the construction of var compensator (SVC) inductive 300 MVAr/capacitive transmission lines of 453.100 circuit-kilometers, 900 MVAr. expansion of 6 substations, installation of transformers of 2,600 MVA, capacitor bank of 220 MVAr, and a miscellaneous work relating to the transmission system expansion. The project is scheduled to start in 2017 and to be completed in 2021. 91

3. Transmission System Development Project for Development Project for EGAT Headquarters’ Bang Pakong Power Plant Area The project has an investment cost of 784.400 EGAT has an administration policy to have million Baht and comprises the construction of all offices at the headquarters located in the Office transmission lines of 230 kV underground cable of Zone to increase efficiency in coordination and make 1.600 circuit-kilometers from the switchyard of Bang the mazimum use of available space including the Pakong Power Plant Project Units 1-2 to the Bang provision of parking lot for the traffic safety, according Pakong substation. The construction period from to the Master Plan of Developing EGAT Headquarters’ the preparation to the completion will take about 34 Area. The Master Plan features the concept of Eco Forest months. Park which will enhance EGAT employees’ quality of life and support the Environmental Management Plan of 4. Transmission System Development Project North Bangkok Combined Cycle Power Plant Project for Replacement of South Bangkok Power Plant Block 2. (Phases 1 and 2) The construction of EGAT Headquarters and The objective of the Project on Replacement parking lot costs 2.08 billion Baht and is scheduled to of South Bangkok Power Plant (Phases 1 and 2) for be completed in 2018. South Bangkok Power Plant Units 1-5 is to enhance the stability of the electricity system of the eastern and western zones of the metropolitan area. The Replacement of South Bangkok Power Plant Project (Phase 1) has an investment cost of 33.59 billion Baht and can be started when the EHIA report has been approved by the National Environment Board (NEB). The Replacement of South Bangkok Power Plant Project (Phase 2) has an investment cost of 37.12 billion Baht. The alternative project plan is under consideration in case additional land for the project site can not be sought. 92

Research and Development EGAT has supported the study of this project with the objective of forecasting the speed of wind In 2016, EGAT funded 25 research projects to within 72 hours in advance. The study has been made in various educational institutions, research institutes, the Lam Takhong reservoir area by collceting the data and internal units of EGAT. Since 2006, a total of 256 on wind speed on an hourly basis from the monitoring projects amounting to more than 2.613 billion Baht has stations in Nakhon Ratchasima and Saraburi Provinces been funded. The following projects are among the 21 from 2006 to the present. The data obtained will be completed EGAT-funded projects in 2016. used in the development of a model for forecasting Development of a Short-term Wind Speed the wind speed and to check the forecasting results. Forecasting System: A Case Study of Lam Takhong An opensource software is applied in the development Reservoir Area of the Joint Graduate School of Energy of a program of forecasting the speed of the wind in and Environment, King Mongkut’s University of advance with the ability in forecasting at a good level Technology Thonburi and can forecast the amount of electricity generated. The program will be useful in the management of Wind power is renewable energy which has power network system and other sources of power been supported continuously by the government. generation with more flexibility and efficiency. The The installation of wind power in Thailand has been reserch will also be useful in increasing knowledge to increasing rapidly from 224.5 MW to be 3,002 MW by the staff. 2036.

a. On January 17, 2013 at 00.00 hour b. On January 17, 2013 at 12.00 hour

An example of the chart of wind speed at the height of 45 m, on the 4th domain covering the minimum area at the grid detail of 1 km using the Waf - Moss Model 93

Development of Bay Controller for Performance Enhancement of EGAT Automation High Voltage Electricity Station Using IEC Automatic Fault Analysis System Using Pattern 61850 of Department of Electrical Engineering and Recognition Technique and Considering the Effect Computer, Faculty of Engineering, King Mongkut’s of Mutual Inductance between Parallel Circuits of University of Technology North Bangkok Center of Excellence in Electrical Power Technology (CEPT), Faculty of Engineering, Chulalongkorn The control and prevention system of a University substation is essential for the management of power generation and transmission. The efficient equipment The purpose of the study is to increase the for communication system will help create the data efficiency of EGAT Automatic Fault Analysis System network and the efficient control of substation (AFA) by means of a system in screening fault data from under the guidelines on smart grid which will be Digital Fault Recorders (DFR). It will supply only the developed in the future. The guidelines for substation significant faults to the analysis of the AFA system for management is in accordance with IEC61850 which calculation of the location of the faults on the parallel has been designed for the possibility of laying circuit transmission lines by the two-terminal fault down the substation automation systems (SAS). The location algorithm, by considering the effect of mutual data concerning the structure of the substation’s inductance to obtain the precise result. equipment, communication system, and information exchange have been specified. Concerning the function of AFA, the analysis process to prodict the cause of faults occurring The research has been funded by EGAT with frequenly in the transmission system is prepared, using the main aim of providing knowledge of the standard the principle of signal analysis and fault signature IEC 61850 and the connection of the bay controllers technique. The prediction from the process is, in as a grid to serve as a model of automation control several cases, consistent with the report of on-site system for substation, demonstration, and the study officers. Improvement of data processing of AFA of the function of equipment as specified in IEC 61850. 3.0 and connection between AFA and the users to The model comprises the application program for the speed up data processing has been made. The system study of configuration setting, inspection, controlling, manager can set the name of a contact person who the working of the system, and the prototype of the can receive information by SMS and email with the bay controller. Moreover, the system will be installed telephone number and email address on the webpage and tested for actual use with the substation so as to conveniently and speedily. The system enhances obtain the appropriate equipment for the control of more efficient protection of security in electricity substations in Thailand which can subsequently reduce transmission system and more efficiency in recovery the imported equipment in the future. of the power system. 94

The Study of Suitable Integrated Renewable EGAT has funded the project to study the Energy Production and Consumption Model in the complete form of power generation and the use Hung Island of the Pilot Plant Development and of renewable energy appropriate for Hung Island, Training Institute, King Mongkut’s University of Krabi Province. The study should cover all activities in Technology Thonburi which power is required including power for public utilities, cooking, occupations, and communication/ Hung Village Island is among the communities transportation in Hung Island. The master plan for around Krabi Power Plant which does not have developing the Hung island to become a green electricity. With the area of approximately 9,647 rai, the community and a low carbon society is made. village has a population of 136 households. The total Moreover, there is installation of demonstration system electricity consumption is equivalent to 140.13 tons of of small and moveable integrated electricity (PHPS crude oil per year. Sixty-eight percent of the power use 5-2.5), 3 EGAT solar power dried ovens (SD 050), and is imported, which consists of diesel, benzene, and LPG, 4 demonstration systems of biogas from household wheras the local power source is solar power, wood, waste of 500 liters. This power system has provided the and charcoal. In terms of power balance, the overall community with power generation and the efficient cost in securing power for daily use represents that the use of renewable energy. village almost lacks power. The situation will become worse when the power demand for public utilities will be increasing 5 times in the future.

Installation of demonstration system of small and moveable integrated electricity (PHPS 5-2.5) at a mosque

Demonstration of the solar power dried oven Forum of Hung Island community 95

Organization and Human Resource Development

Human Resource Management EGAT has placed importance to human resources realizing that they are vital to the organization growth. Therefore, human resource management has been focused on cultivating their staff to be decent, qualified, happy, and loyal to the organization. EGAT’s value: FIRM-C which comprises Fairness, Integrity, Responsibility & Accountability, Mutual Respect, and Commitment to Continuous Improvement and Teamwork has been instilled into the staff for their working behavior to maintain EGAT’s corporate culture namely Loyalty, Working Excellence, and Integrity which will lead EGAT to be one of the organizations of national pride. In addition, EGAT has supported the recruitment and education by providing scholarships to potential students for bachelor’s degree education. When they work with EAGT, scholarships for furthering their study will be provided. Human Resource Development EGAT has continuously improved its EGAT has various programs for human resource human resource development recognizing that development, particularly focusing on development human resources are the most valuable asset of the from working and coaching for the preparation of organization’s sustainable success. EGAT staff have building EGAT new leaders so that EGAT businesses been developed to be professional and ethical while can be continued smoothly with sustainability. also having social responsibility. Moreover, they shall Meanwhile, main competency in doing business will be happy and loyal to the organization with good be developed intensively for technicians to pass the quality of life. competition for receiving certification for competency in power generation and maintenance. Scholarships In 2016, EGAT set up the system of human for business administration and technical profession resource development (HRD) to support EGAT’s vision are provided. Moreover, managerial system, basic to be the Global Top Quartile Utility. In planning and knowledge management, knowledge for retirees, and designing the human resource development, the need knowledge transfer have been used in the organization of personal development of all levels, all functional as well as the utilization of the best practice leading to lines, and individual units such as important policy, more innovations. EGAT values, organizational competency, master plan of corporate governance, master plan of ICT, and individual development plan (IDP) are taken into consideration as the important factors. The HRD plan will help drive EGAT’s strategies to achieve its target and vision. 96

Information Technology Management the IT procedure in compliance with international standards including: In 2016, EGAT has prepared the 10-year EGAT Digital Development Plan (2016 - 2026) which aims • ISO/IEC 29110 Standard Lifecycle Profile at using digital technology as a driving force for for Very Small Entities development in accordance with the government strategy plan. The EGAT Digital Development Plan • ISO 27001: 2013 Certification from TUV covers the upgrade of information technology Nord (Thailand) in compliance with the infrastructure, risk management, management of International standard on Information measures /regulations to meet international standard, Security Management covering IT and the management of technology to support EGAT services in EGAT Head Office and its mission. ICT management has been reviewed to adapt back up sites to the current situation and the changes of internal • ISO Certification from AJA Registra and external factors which include business, public (Thailand) in compliance with the policy, and technological factors. EGAT ICT strategies international standard on Information are as follows: Security Management covering IT services in EGAT’s 15 hydropower Strategy 1 : Strengthen EGAT main plants business groups and functional lines • Customer Center of Expertise (CCoE) Strategy 2 : Increase competency in in- Certification in compliance with the depth information analysis SAP Enterprise Support Standard Strategy 3 : Enhance human resources EGAT’s ICT application systems have been to have expertise to support used not only for supporting its own mission, but also EGAT to become a global top for the nearby communities such as the Telemetering quartile utility in the future and Water Management System and the Dam Safety Remote Monitoring System which help inform the Strategy 4: Develop ICT foundation and public of accurate data and the situation in real-time. ICT system management

EGAT has managed its IT in accordance with the guidelines of IT Governance and has implemented 97

Corporate Social Responsibility

EGAT has given importance to social and environmental development as well as the development of the sites for power generation and transmission. Corporate Social Responsibility (CSR) is considered to be an integral part of EGAT business which helps support its sustainable growth. The activities of CSR in-process and CSR after-process have been carried out in compliance with the international standards so as to gain acceptance of all sectors under the participatory process coupled with the sustainable development of community’s quality of life and the environment. Community Relations in the Power Development Areas EGAT has implemented the participatory • Development of the quality of life of process with all stakeholders based on the royal community initiatives of His Majesty King Bhumibol Adulyadej which include “to understand, to access, and to EGAT has continued to promote, support, and develop” in various activities as follows: participate in activities of communities around new power development areas in order to develop their • Raising awareness and building quality of life for sustainability. Activities have been understanding of power development held in various aspects such as education, sports, culture and local tradition, health, occupational The objective of this activity is to build promotion, and public facility including running water understanding among the people to be aware of the pipeline system and assistance to disasters victims and importance of the rising demand for electricity due the needy people. to the economic growth and social expansion which result in the need of more power plants. Participatory process in various activities has been carried out in the following projects: North Bangkok Power Plant Project (Block 1), Replacement Project for South Bangkok Power Plant (Phases 1-2), Replacement Project for Bang Pakong Power Plant (Units 1-2), Replacement Project for Mae Moh Power Plant (Units 4-7), Replacement Project for Mae Moh Power Plant (Units 8-9), Energy Efficiency Improvement of Krabi Power Plant Project, Thepha Coal Power Plant Project, Songkhla Province, areas for renewable power development projects in Sikhio District, Nakhon Ratchasima Province and in Thap Sakae District, Prachuap Khiri Khan Province, areas for public communication and feasibility study on electricity generation from industrial waste in Kaeng Expanding green spaces around Bang Pakong Power Plant Khoi Industrial Estate, Saraburi Province.

EGAT has also supported the job creation for communities around the areas of North Bangkok Power Plant by allowing them to sell their products which have been promoted at EGAT Headquarters every month as a marketing promotion and to earn more income.

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Environmental Protection In 2016, EGAT gave importance to environmental management for sustainable development with emphasis on becoming a caring organization for society, community, and environment. Environmental programs have been conducted under the framework of EGAT’s CSR Policy and EGAT’s Environmental Policy. Highlights of EGAT’s environmental implementation in 2016 include the following:

Environmental Impact Assessment (EIA) of new power projects For Environmental Impact Assessment (EIA) and Health Impact Assessment (HIA) for EGAT new power development projects in 2016, the report of EIA of the Replacement Project for South Bangkok Plant (Phase 1) has been approved by the Office of Natural Resources and Environmental Policy and Planning. There are five more projects which are under the process of compilation and consideration comprising: Capacity Expansion Project for Krabi Power Plant, Ban Khlong Rua Pier Project, Thepha Coal Power Plant Noise level monitoring Project, Replacement Project for Bang Pakong Power Plant (Units 1-2), and Replacement Project for Mae Moh Power Plant (Units 8-9). In addition, there are special projects initiated by EGAT namely the Construction Project of Floating Storage and Regasification Unit (FSRU), the Construction Project of FSRU Pier, and the Construction Project of Natural Gas Pipeline from the FSRU Station to South Bangkok Power Plant and North Bangkok Power Plant which have been approved by the Energy Regulatory Commission (ERC) and endorsed by the National Commission on Energy Policy (NECP).

Environmental quality monitoring Water quality monitoring EGAT is committed to preventing, controlling, and minimizing environmental impact caused by its Activities of environmental network power operation. Environmental quality monitoring has been regularly conducted with particular attention EGAT has organized environmental network to water quality, water ecology, general air quality, the activities in the areas around the power plants and quality of air emitted from power plant stacks, noise areas of power development projects such as Wang level, and electro-magnetic field as well as garbage Noi Power Plant in Ayutthaya Province, Chana Power and used materials. Environmental impact is strictly Plant in Songkhla Province, Lam Takhong Power Plant prevented and controlled within the environmental in Nakhon Ratchasima Province, Bang Pakong Power standard and law in every stage of EGAT’s operation Plant in Chachoengsao Province, North Bangkok Power including the improvement of overall environmental Plant in Nonthaburi Province, and Thap Sakae Solar quality. Plant in Prachuap Khiri Khan Province. Activities include the learning process in theory and in practice and an exchange of opinions between community and EGAT in order that the community will have knowledge and

realize the importance of environment. This enables the community to participate in environmental quality monitoring and cooperate to take good care of environment in their area. 99

Participation and stakeholder hearing Chana Power Plant, North Bangkok Power Plant, Nam Phong Power Plant, Krabi Power Plant, Mae Moh Mine, In 2016, community hearing was undertaken EGAT Center of Workshop and Spare Parts (Nong Chok in 7 areas of new power development projects namely Office), and EGAT Headquarters, according to the Capacity Expansion of Replacement Project for Mae assessment guidelines for CFO of Thailand Greenhouse Moh Power Plant (Units 4-7), 230 kV Tak 2 - Mae Sot Gas Management Organization (TGO) and ISO 14064- Transmission System Project (the part passing through 1. The results of the assessment have enabled EGAT the watershed area, class 1), Replacement Project for to assess and collect the quantity of greenhouse gas Bang Pakong Power Plant (Units 1-2), Replacement emission and removals caused by various activities Project for South Bangkok Power Plant (Phase 2), 500 which will lead to the preparation of guidelines for kV Thai Border (Ubon Ratchathani Province) - Ubon the greenhouse gas reduction management in the Ratchathani 3 Transmission System Project (the part organization more efficiently. passing through the forest reserve), 230 kV Ubon Ratchathani 3 - Ubon Ratchathani 1 Transmission EGAT has verified and made a report of EGAT’s System Project (the part passing through the forest implementation of lowering greenhouse gas according reserve), and Pha Juk Hydropower Plant Project, to NAMA, the measure of power generation from clean Uttaradit Province. Moreover, meetings were held technology, the measure of efficiency improvement for between related agencies and affected villagers of 500 power generation, the measure of power generation kV Bang Saphan 2 - Surat Thani 2 Transmission System from renewable energy (hydro, wind, and solar), and Project (the part passing through the forest reserve) the measure of standard criteria and the attachment and Smart Energy Development Project, Mae Hong of Label No.5 for energy efficiency. In summary, the Son Province. implementation of greenhouse gas reduction of EGAT

in 2015 totaled 3,382,997 tons of tCO2e. Furthermore, EGAT has implemented such projects at the national Greenhouse gas management and international levels. For the international level, EGAT has implemented the Clean Development EGAT has actively generated power coupled Mechanism (CDM) Projects from the Project of with the greenhouse gas management according to Efficiency Improvement for Power Generation and EGAT Master Plan on Greenhouse Gas Management the Project of Power Generation from Renewable under the Nationally Appropriate Mitigation Action: Energy which can reduce the CO of more than NAMA in order to build public acceptance, trust, and 2 580,000 CO e. For the national level, there are 3 EGAT confidence in the implementation of greenhouse 2 projects which have implemented the greenhouse gas gas reduction as well as EGAT’s good image in reduction according to Thailand Voluntary Emission participation in solving the problem of climate change Reduction Program: T-VER comprising the Downstream for sustainability. Hydropower Plant of Naresuan Dam, Lam Takhong In 2016, EGAT assessed the Carbon Footprint Wind Turbine Power Generation System, and Ban Klong for Organization, CFO of 11 EGAT’s units comprising Rua Community Hydropower Plant. In 2016, EGAT sold Mae Moh Power Plant, Bang Pakong Power Plant, carbon credit from the Downstream Hydropower Plant South Bangkok Power Plant, Wang Noi Power Plant, of Naresuan Dam to the Office of the Securities and

Exchange Commission totaling 2,403 tons of tCO2e for supporting the reduction of greenhouse gas in organizations and promoting the establishment of low-carbon society through mechanism of carbon credit market in the country.

Environmental management in accordance with ISO 14001 EGAT has implemented the environmental management standard ISO 14001 with all operating units concerning electricity generation to create confidence of community and society on the Approval of greenhouse gas emission and environmental management of EGAT. In 2016, a total removals for organization 100

of 27 EGAT units including power plants, dams, and the activity is to give knowledge and understanding lignite mine were successfully certified ISO 14001 by of electricity and environment to the youth in Thepha a Certification Body (CB), continuing from 2015. To District, Songkhla Province and to support the Thepha ensure the complete implementation of environmental Power Plant Project. management from the stage of power generation to the stage of transmission, ISO14001 has also been

applied at EGAT substations. Scholarship sponsoring program In 2016, the number of youth who were Environmental and social management of power granted scholarships from EGAT staff until they completed their study and received Bachelor’s Degree/ plant Master’s Degree and came back to work in their EGAT has given importance to the social hometown increased by 35. Since the launch of the and environmental management for sustainable program, the youth who finished their study at the development by strictly abiding to the public laws university level totaled 79. and environmental regulations. Environmental management in all stages of project development has been undertaken. Emphasis has been placed on Environmental Impact Assessment (EIA), Social Impact Assessment (SIA), Health Impact Assessment (HIA) as well as environmental standard 14001 and Thai Industrial Standard on Occupational Health and safety (18001) to ensure the safety in all stages of project implementation, starting from prior to the construction, the construction, until the power generation. Furthermore, activities of stakeholder participation and public hearing have been continuously carried out. Social Activities The 25th EGAT’s scholarship sponsoring program EGAT Envi camp EGAT organized the activities “EGAT Envi Camp: Our House, Nice to Live in” during August 17-18, EGAT reforestation project 2016 and “EGAT Envi Camp: To Follow the Teachings of In 2016, EGAT fulfilled the plan of reforestation H.M. King Bhumibol Aduladej” during November 17- project covering areas of 20,000 rai. The reforestation nd 19, 2016 at Songkhla Naval Base, the 2 Naval Area, project includes an area of 16,500 rai which comprises Mueang District, Songkhla Province. The purpose of the headwater forest in Doi Phu Kha National Park, Khun Nan National Park, areas of Nan river basin security development, and conservation areas No.13 in Nan Province. The areas of 3,000 rai are the mangrove forest located in Nakhon Si Thammarat and Chanthaburi Provinces, and community forest of 500 rai are in an area of Ban Na Kok, Ban Na Kuen, Ban Don Chai, Ban Huay Mee, and Ban Dong Pha Poon, Bo Kluea District, Nan Province.

EGAT Envi Camp 1/2016 101

Biological way of life for sustainable development Demand Side Management project Demand Side Management (DSM) is another The implementation of Biological Way of Life important mission of EGAT apart from the responsibility for Sustainable Development Project in 2016 continued of power generation and transmission (Supply Side). in various areas. Activities of the project included EGAT has implemented the demand side management lectures, demonstration, exhibitions, and technical under 3 strategies namely electrical appliances, workshops. The Community Models of EGAT Sufficiency buildings, and habit, with emphasis on cooperation Economy increased in 4 areas namely Ban Huay Sue with EGAT’s alliances comprising the public and private Ten Community in Khon Kaen Province, Ban Don sectors as well as customers of residential sector, Chee Community in Ubon Ratchathani Province, Ban business, and industrial sectors. Non Sam Ran Community in Sakon Nakhon Province, and Ban Beung Ka Sam in Pathum Thani Province. The total of community models of EGAT during 2013- Energy-saving electrical appliances 2016 were 32. Moreover, cooperation has been made In 2016, the implementation of using energy- between EGAT and Office of the Vocational Education efficient Label No.5 program achieved the target with Commission (OVEC) to implement the project. Financial a reduction of electric energy of MW 204.9 and 657.5 support of 2.5868 million Baht was given to OVEC thousand tons of CO emission by the attachment of for the project implementation, and meetings were 2 24.2 million energy-efficient Label No.5 on 28 types of held with 69 participating vocational colleges about electrical appliances. Since the launch of the project, EGAT’s guidelines for implementation. The award was accumulation of the attached Label No.5 totals 315.3 presented to the college which won the first prize of million labels, which results in the total reduction of the project in 2015. Project follow-up and evaluation electric energy of 4,208 MW and 14,356 thousand have been made continuously. tons of CO2. Participation in the Red Cross Fair in commemoration In addition, there were two more electrical th appliances comprising the hot and cold water of the 84 birthday anniversary of H.M. Queen Sirikit dispenser and the cooler which were attached In 2016, EGAT joined the Red Cross Fair in energy-efficient Label No.5. The Memorandum of honor of the 84th Birthday Anniversary of H.M. Queen Understanding signing ceremony between EGAT and Sirikit held during March 30 - April 7, 2016. EGAT’s entrepreneurs taking part in the program was held on booth, located in front of the 1st Army Area, Sanam Sue October 6, 2016. Pa, displayed an exhibition on the royal mission of H.M. the Queen and the implementation of Biological Way of Life for Sustainable development Project including the sale of EGAT Red Cross lotteries and raffles (Soi Dao). EGAT also participated in the contest of floral float procession of which EGAT’s float was specially decorated with the efficient-energy LED light bulbs label No.5.

Other social activities EGAT has supported activities in various aspects such as Wan Kaew Project (Eyeglasses for the Poor), Community Market (Talad Nud Khlong MOU signing ceremony of energy-efficient Label No.5 of the hot Phadung Krung Kasem), Buying Rice to Help Thai and cold water dispenser and the cooler Farmers Project, sponsoring scholarships to “the Foundation of Education of H.R.H the Crown Prince Maha Vajiralongkorn”, Move World Together Project, and financial support to the Sports Association covering various sports such as petanque, shooting, weight-lifting etc. 102

In order to promote innovation and technology Energy-saving habit of energy saving from LED (Light Emitting Diode), “LED Expo & Thailand Energy Saving Week 2016” was held to In 2016, EGAT promoted the upgrade of give knowledge about LED to the people and replace energy and environmental conservation standard in their electrical tubes with LED products. Being a model 414 green classrooms of schools. Activities of low- of practical energy saving, EGAT has cooperated with carbon schools have been developed through EGAT the Office of the Royal Development Projects Board Carbon Footprint Application to calculate the rate of using electricity and the emission of CO from electrical (RDPB) and 10 center branches to replace electrical 2 tubes in Royal Development Study Centers all over appliances. Furthermore, the Learning Center for the country with 21,000 LED products which can save Energy and Environmental Conservation was set up at electric power of 816,000 units/year and reduce the the Area Office of Primary Education, Krabi Province to be the model of Green Office. emission of CO2 of 400 tons/year. The implementation of the project and the energy saving will be evaluated and followed up later in 2017-2018.

Energy-saving buildings EGAT has studied, analyzed, and made criteria for high efficient housing which is possible under the present circumstance. The greenhouse gas reduction of Thailand program, Buildings Sector

The Learning Center for Energy and Environmental Conservation, the Area Office of Primary Education, Krabi Province

In addition, EGAT participated in the international exhibition and meeting on “Sustainable Energy & Technology Asia 2016” (SETA 2016) during March 23-25, 2016 at Bangkok International Trade and Exhibition Center (BITEC), Bang Na which was LED Expo & Thailand Energy Saving Week 2016 organized to disseminate information on sustainable energy and raising the public awareness about the problem of power shortage in the future. (NAMA Buildings : Appropriate Mitigation Actions), has been implemented with EGAT’s alliances such as the Office of Natural Resources and Environmental Policy and Planning, United Nations Environment Program (UNEP), Joint Graduate School of Energy and Environment (JGSEE), and the National Housing Authority (NHA) to lower energy use and greenhouse gas emission in the household group of low income to middle income owners.

Sustainable Energy & Technology Asia 2016 (SETA 2016) 103

Low emission support scheme (LESS) • Project for study and plan for the development of electrical infrastructure to serve Activities of reducing the use of electricity in electric vehicles in which the technology of electric schools have been developed by EGAT to be in the vehicles including the development of charging station Low Carbon Support Scheme (LESS) for receiving the has been studied as well as the study of related laws to Letter of Approval (LoA) from Thailand Greenhouse Gas support the use of electric vehicles in the country Management Organization (TGO) for combining with the reduction of CO2 emission of the country. Activities included the following: Promoting the use of electric automobiles in EGAT • Replacing with the fluorescent tube Label • Installation of AC normal charging station No.5 in green classroom project and DC-AC quick charging station to serve the use of modified prototype of electric vehicles at EGAT • Reducing electric power at low carbon Headquarters schools and students’ houses • Cooperation of the research work of modified • Participating in community’s activities by prototype of electric vehicles with the National Science setting up the first energy saving community using and Technology Development Agency (NSTDA) efficient-energy label No.5 which comprises 33 households at Ban Puang Sanuk, San Pa Tong District, Chiang Mai Province. The plan of energy saving in the community has been prepared to promote everyone to participate in developing their community to become the sustainable green and low carbon community in the future. The plan includes community learning base, energy-saving house, No.5 product shop, and energy- saving No.5 farm.

Receiving the prototype of electric vehicles, a cooperation between EGAT and NSTDA

Receiving the Letter of Approval (LoA) from Thailand Greenhouse Gas Management Organization

DSM implementation under the policy of the Ministry of Energy and cooperation between 3 public utilities namely EGAT, MEA, and PEA • Feasibility Study of Energy Efficiency Resources Standards (EERS), according to the Energy Receiving the prototype of electric vehicles, a cooperation Conservation Plan (2015-2036) between EGAT and NSTDA 104

Various activities have been organized Label No.5 and the public relations of the measure together with marketing promotion of high efficient “switch off, adjust, plug out, and change” in order to electrical appliances and buildings. Measures have reduce the unnecessary use of electricity. This measure been launched to change the people’s behavior to use will help avoid the risk on power system security of the energy-efficient electrical appliances attached with country in the future. EGAT Learning Center EGAT Learning Center has been established to be the learning center of energy for the benefit of the youth, students, and the interested people to understand about electricity, electricity generation, the need of having power plants, and EGAT’s mission. The Center serves as another channel to stimulate and create imagination and creativity of energy for the youth. The construction of the Center requires academic knowledge and techniques of building management and cooperation from various related parties. EGAT Learning Centers are as follows:

EGAT Learning Center Schedule Budget Project cost Status in 2016 (Million Baht) (Million Baht)

Mae Moh Mine Museum 2014 -2016 125.000 96.626 Completed EGAT Learning Center: Srinagarind Dam 2012 - 2013 40.000 39.698 Completed EGAT Learning Center: Chana* 2008 - 2013 700.000 124.502 Completed (extended to 2016) EGAT Learning Center: Headquarters* 447.048 Under Construction EGAT Learning Center: Thapsakae 2014 - 2015 137.000 86.877 Completed EGAT Learning Center: Lam Takong** 2016 - 2017 263.000 - Bidding EGAT Learning Center: Mae On** 2019 - 2020 Design EGAT Learning Center: Pha Bong 2017 - 2019 79.500 - Planning

Remark: *under the same budget of 700 million baht **under the same budget of 263 million baht

For the development of the new power projects such as Krabi and Thepha coal-fired power plants, EGAT has the policy to develop its learning center together with those new power plants in the future.

105

The light of the future In response to the determination and benevolence of His Majesty King Bhumibol Ayulyadej and His Majesty King Maha Vajiralongkorn Bodindradebayavarangkun in power development for the sustainable prosperity in energy of Thailand, EGAT is strongly committed to pursuing electricity development for the economic and social prosperity of the country. 108

Events

Her Royal Highness Princess Maha Chakri Sirindhorn planted the Yang Na tree (Dipterocapus alatus Roxb. ex G. Don) for EGAT Reforestation Project to commemorate the 60th Birthday Anniversary of Her Royal Highness Princess Maha Chakri Sirindhorn. The Princess also visited EGAT Exhibition at Phufah Pattana Center, Bo Kluea District, Nan Province on February 18, 2016. 109

Her Royal Highness Princess Soamsavalee performed an opening of the Buddhist event held on the occasion of 2016 Magha Puja Day and paid a visit to EGAT Exhibition on the relics of Lord Buddha, Individualized Buddha (Enlightenment - beings) and Arahants on February 16, 2016 at Phramane Ground (Sanam Luang).

EGAT Mae Moh Power Plant received the TQC Award in the event of “14th Quality Award 2016” organized by Thailand Productivity Institute which is an affiliate of the Ministry of Industry on March 16, 2016 at Vibhavadi Ballroom B, Centara Grand at Central Plaza Ladprao, Bangkok. 110

EGAT organized “the 2016 LED Expo & Thailand Energy Saving Week” which was attended by over 500 local and foreign manufacturers to display lighting innovation and energy saving technology all over the world on April 19, 2016 at Amber Rooms 2-3, IMPACT Exhibition and Convention Center, IMPACT Muang Thong Thani.

EGAT launched a pilot modified electric car which is a successful innovation of the Joint Research and Development Fund of EGAT and the National Science and Technology Development Agency (NSTDA) on May 3, 2016 at EGAT Headquarters, Bang Kruai, Nonthaburi.

The ceremony to officiate the opening of the 850 MW North Bangkok Power Plant Block 2 to generate electricity for strengthening security of the power system was held on June 1, 2016 at the North Bangkok Power Plant, Bang Kruai, Nonthaburi. 111

EGAT in cooperation with Thepha District, Songkhla Province organized “the 1st Thepha Festival on the occasion of Hari Raya Aidilfitri Day” or the celebration after the Ramadan month and to preserve the tradition and local products of Thepha District. The festival was held during July 13-14, 2016 at Thepha Beach Resort, Thepha District, Songkhla Province.

EGAT’s Bang Pakong Power Plant, as the power plant which has continuously conserved and restored the water quality at the excellent level, received the “2016 award for being the plant model” in the category of outstanding plants in river conservation and restoration. The award presentation was held by the Ministry of Industry on August 9, 2016 at Thailand Cultural Center in Bangkok.

EGAT welcomed the national weightlifting athletic team which won medals in the Olympic Games 2016 held in Brazil on August 22, 2016 at EGAT Headquarters, Bang Kruai, Nonthaburi. EGAT has been sponsoring the Thai Amateur Weightlifting Association since 2004. The success of the team has brought joy to the Thai people. 112

EGAT received two “Outstanding State Enterprise Awards 2016” for outstanding management and outstanding innovation of “Intelligent Generation Controller”. The award presentation was organized by State Enterprise Policy Office (SEPO) on September 14, 2016 at Centara Grand and Bangkok Convention Center at Central World.

EGAT and its affiliates organized a mourning ceremony for the passing of His Majesty King Bhumibol Adulyadej. The ceremony was held on October 17, 2016 at Kasame Jatikavanich confernce room at EGAT Headquarters, Bang Kruai, Nonthaburi.

EGAT and its affiliates, in cooperation with the Ministry of Energy, opened two service centers for people who attended the mourning ceremony of His Majesty King Bhumibol Adulyadej at Pramane Ground and the area in front of the Naval Civil Department, Rach Woradit Pier since October 18, 2016.

113

EGAT hosted the 21st Conference of Electric Power Supply Industry (CEPSI 2016) under the theme “Energy Sustainability and Security : Choices and Challenges for Power Supply Industry” during October 23-27, 2016 at Centara Grand and Bangkok Convention Center at Central World, Bangkok.

EGAT participated in the meeting and exhibition of the 22nd session of the Conference of the Parties (COP22) to the UN Framework Convention on Climate Change held during November 7-18, 2016 in Marrakech, Morocco.

EGAT received “Sustainability Report Award 2016” for three consecutive years. The award presentation was organized by the cooperation of the Securities Exchange Commission (SEC), CSR Club of the Thai Listed Companies Association, and Thaipat Institute on December 15, 2016 at the convention hall of the Stock Exchange of Thailand.

114

Key Statistical Data

System Installed Generating Capacity

2016 2015 Increase/ Type of Power Plant MW Percentage MW Percentage (Decrease) Percentage

EGAT’s Power Plants Thermal 3,647.00 8.78 3,647.00 9.39 - Combined cycle 9,210.00 22.16 8,382.00 21.58 9.88 Hydropower 2,952.40 7.11 2,948.40 7.59 0.14 Renewable energy 45.33 0.11 40.33 0.10 12.40 Diesel 30.40 0.07 30.40 0.08 - Other 500.00 1.20 500.00 1.29 - Subtotal 16,385.13 39.43 15,548.13 40.03 5.38

Purchase from Domestic Private Power Plants IPPs (including EGAT affiliates) 14,948.50 35.97 14,766.70 38.02 1.23 SPPs 6,345.02 15.27 5,137.02 13.23 23.52 Neighboring Countries Laos 3,577.60 8.61 3,086.60 7.95 15.91 EGAT-TNB Interconnection System 300.00 0.72 300.00 0.77 - Subtotal 25,171.12 60.57 23,290.32 59.97 8.08 Grand Total 41,556.25 100.00 38,838.45 100.00 7.00 115

Monthly Peak Generation Requirement

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

2016 2015 MW Percentage

January 25,312.30 23,713.40 1,598.90 6.74 February 25,103.51 24,629.50 474.01 1.92 March 27,242.00 26,072.10 1,169.90 4.49 April 29,403.70 27,139.00 2,264.70 8.34 May * 29,618.80 27,198.40 2,420.40 8.90 June 26,471.20 27,345.80 (874.60) (3.20) July 25,475.10 26,049.50 (574.40) (2.21) August 26,329.05 26,027.80 301.25 1.16 September 25,790.60 25,676.60 114.00 0.44 October 26,013.20 25,044.80 968.40 3.87 November 26,145.30 25,956.70 188.60 0.73 December 25,272.40 25,722.30 (449.90) (1.75) Yearly Peak Generation Requirement 29,618.80 27,345.80 2,273.00 8.31

* 2016 peak generation requirement occurred on Wednesday, May 11, 2016 at 22.28 hours * 2015 peak generation requirement occurred on Thursday, June 11, 2015 at 14.02 hours

Monthly Energy Generation Requirement

Month Monthly Energy Generation Increase/(Decrease) Requirement (Million kWh) 2016 2015 Million kWh Percentage

January 14,547.62 13,309.26 1,238.36 9.30 February 13,830.54 13,329.24 501.30 3.76 March 16,771.04 16,102.09 668.95 4.15 April 16,627.68 15,138.58 1,489.10 9.84 May 17,576.34 16,890.77 685.57 4.06 June 15,906.46 16,084.28 (177.82) (1.11) July 15,816.37 15,999.13 (182.76) (1.14) August 16,388.48 15,662.98 725.50 4.63 September 15,673.83 15,340.13 333.70 2.18 October 15,913.70 15,505.89 407.81 2.63 November 15,478.38 15,359.00 119.38 0.78 December 14,469.20 14,745.49 (276.29) (1.87)

Total 188,999.64 183,466.84 5,532.80 3.02 116

Gross Energy Generation and Purchase (by type of fuel)

Source 2016 2015 Increase/(Decrease) Million kWh Percentage Million kWh Percentage Percentage

EGAT’s Power Plants Natural gas 46,727.46 24.72 50,151.33 27.34 (6.83) Coal (lignite) 17,078.44 9.04 15,133.93 8.25 12.85 Renewable energy 3,300.48 1.75 3,551.85 1.94 (7.08) (hydropower and others) Fuel oil and palm oil 267.45 0.14 689.74 0.38 (61.22) Diesel oil 164.02 0.09 118.91 0.06 37.94 Other 228.07 0.12 193.76 0.10 17.71 EGAT’s Total Generation 67,765.92 35.86 69,839.52 38.07 (2.97)

Purchase from Domestic Private Power Plants IPPs (including EGAT affiliates) Natural gas 51,241.49 27.11 54,594.33 29.76 (6.14) Coal (bituminous) 16,138.07 8.54 15,771.94 8.60 2.32 Fuel oil 388.90 0.20 412.90 0.22 (5.81) Diesel oil 69.50 0.04 72.79 0.04 (4.52) Subtotal 67,837.96 35.89 70,851.96 38.62 (4.25) SPPs Natural gas 26,792.21 14.17 22,239.51 12.12 20.47 Coal 1,882.31 1.00 1,874.24 1.02 0.43 Hydropower 18.92 0.01 27.63 0.02 (31.52) Fuel oil 185.54 0.10 25.41 0.01 630.18 Biomass 3,398.24 1.80 3,086.30 1.68 10.11 Solar power and wind power 1,287.07 0.68 1,095.55 0.60 17.48 Subtotal 33,564.29 17.76 28,348.64 15.45 18.40 Neighboring Countries Laos 19,716.86 10.43 14,288.44 7.79 37.99 Malaysia 114.61 0.06 138.28 0.07 (17.12) Subtotal 19,831.47 10.49 14,426.72 7.86 37.46 Total Energy Purchase 121,233.72 64.14 113,627.32 61.93 6.69

Grand Total 188,999.64 100.00 183,466.84 100.00 3.02 117

Energy Sale

Customer 2016 2015 Increase/(Decrease) Million kWh Percentage Million kWh Percentage Percentage

Metropolitan Electricity Authority (MEA) 56,585.63 30.58 51,577.37 28.73 9.71 Provincial Electricity Authority (PEA) 125,798.07 67.98 124,376.08 69.28 1.14 Direct customers 1,591.85 0.86 1,621.66 0.90 (1.84) Standby power supply 162.65 0.09 184.67 0.10 (11.92) Electricité du Laos (EDL) 595.02 0.32 1,507.66 0.84 (60.53) Tenaga Nasional Berhad (TNB) - Malaysia 157.84 0.09 122.59 0.07 28.75 Electricité du Cambodge (EDC) 146.89 0.08 138.64 0.08 5.95 Other minor customers 8.56 0.00 8.72 0.00 (1.79) Total 185,046.51 100.00 179,537.39 100.00 3.07

Average Energy Sales Price

Customer 2016 2015 Increase/(Decrease) Baht/kWh Baht/kWh Percentage

Metropolitan Electricity Authority (MEA) 2.65 3.00 (11.79) Provincial Electricity Authority (PEA) 2.67 2.94 (9.22) Direct customers 2.88 3.15 (8.75) Standby power supply 6.04 5.19 16.36 Electricité du Laos (EDL) 1.64 1.59 3.41 Tenaga Nasional Berhad (TNB) - Malaysia 2.09 4.58 (54.27) Electricité du Cambodge (EDC) 3.47 3.69 (5.98) Overseas independent power producers 7.19 4.15 73.56 Other minor customers 4.34 4.65 (6.58) Overall Average Sales Price 2.67 2.96 (9.72)

Transmission System

Voltage Level 2016 2015 (kV) Line Length Number of Transformer Capacity Line Length Number of Transformer Capacity (Circuit-Kilometers) Substations (MVA) (Circuit-Kilometers) Substations (MVA)

500 5,025.34 13 24,199.99 4,987.72 13 23,199.99 230 14,793.65 78 56,960.04 14,142.75 76 56,060.04 132 8.70 - 133.40 8.70 - 133.40 115 13,497.32 127 14,524.99 13,812.64 126 14,579.99 69 18.80 - - 18.80 - - 300 (HVDC) 23.07 - 388.02 23.07 - 388.02

Total 33,366.88 218 96,206.44 32,993.68 215 94,361.44 118

Fuel Consumption

Type of Fuel Consumption Increase/(Decrease) 2016 2015 Percentage

Natural gas (million cubic feet) - EGAT 370,981.58 409,151.60 (9.33 ) - IPPs 428,353.71 458,084.22 (6.49 ) Total 799,335.29 867,235.82 (7.83 )

Fuel oil (million liters) - EGAT 73.73 177.61 (58.48 ) - IPPs 104.97 91.41 14.83 Total 178.70 269.02 (33.57 )

Coal (million tons) - EGAT 16.41 14.49 13.19 - IPPs 6.21 5.90 5.15 Total 22.62 20.39 10.86

Diesel oil (million liters) - EGAT 11.95 12.80 (6.63 ) - IPPs 13.90 12.66 9.80 Total 25.85 25.46 1.54

Greenhouse Gas Management

Greenhouse Gas Emission Reduction By EGAT’s Measures in 2015

Measure Greenhouse Gas Emission Reduction (tCO2e)

Electricity generation from clean technology 750,186 Efficiency improvement for electricity generation 152,535 Electricity generation from renewable energy 2,048,099 Standard criteria and the attachment of Label No.5 for energy efficiency 432,177

Total 3,382,997 119

Reservoir Operation

Operation 2016 2015 Increase/ (Decrease) Percentage

Total reservoir capacity (million cubic meters) * 62,427 62,427 - Total storage at year end (million cubic meters) * 43,692 36,174 20.80 Total water inflow (million cubic meters) * 30,067 21,180 42.00 Total water release (million cubic meters) * - Passed through generators 19,664 21,699 (9.40) - Extra release through spillways 60 159 (62.10) - Extra release for irrigation 336 372 (9.50) - Evaporation 2,701 2,935 (8.00) Total water release 22,761 25,164 (9.50)

Water pumped up into the upper reservoir (million cubic meters) ** 486 488 (0.30) Generated energy (million kWh) * 2,960 3,378 (12.40) Water used for energy generation (cubic meters/kWh) 6.64 6.42 0.76

* Excluding Pak Mun Dam, Lam Takhong Dam, and other mini hydropower plants ** Water pumped up into Bhumibol Dam, Srinagarind Dam, and Lam Takhong Dam

Workforce

Educational Level at December 2016 at December 2015 Increase/ (Decrease) Number of Persons Percentage Number of Persons Percentage Percentage

Bachelor’s Degree and Higher 8,455 37.74 8,380 36.79 0.89 Diploma/Higher Vocational Certificate 8,646 38.59 8,615 37.82 0.36 Vocational Certificate 2,425 10.82 2,678 11.76 (9.45 ) Others 2,877 12.84 3,103 13.62 (7.28 ) Total 22,403 100.00 22,776 100.00 (1.64 ) 120

Auditor's Report (Translation)

To The Board of Directors of Electricity Generating Authority of Thailand

Opinion

The Office of the Auditor General of Thailand has audited the accompanying consolidated financial statements of Electricity Generating Authority of Thailand and its subsidiaries (the Group), and separate financial statements of Electricity Generating Authority of Thailand (the Company), which comprise the consolidated and separate statements of financial position, as at December 31, 2016, the consolidated and separate statements of income, the consolidated and separate statements of comprehensive income, the consolidated and separate statements of changes in equity and the consolidated and separate statements of cash flows for the year then ended, and notes to the consolidated and separate financial statements, including a summary of significant accounting policies.

In the Office of the Auditor General of Thailand’s opinion, the above mentioned consolidated and separate financial statements present fairly, in all material respects, the consolidated financial position of Electricity Generating Authority of Thailand and its subsidiaries, and separate financial position of Electricity Generating Authority of Thailand, as at December 31, 2016, and their consolidated and separate financial performance and their consolidated and separate cash flows for the year then ended in accordance with Thai Financial Reporting Standards.

Basis for Opinion

The Office of the Auditor General of Thailand conducted the audit in accordance with Thai Standards on Auditing. The Office of the Auditor General of Thailand’s responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated and Separate Financial Statements section of the Office of the Auditor General of Thailand’s report. The Office of the Auditor General of Thailand is independent of the Group and the Company in accordance with the State Audit Standards issued by the State Audit Commission and the Code of Ethics for Professional Accountants determined by the Federation of Accounting Professions under the Royal Patronage of his Majesty the King that are relevant to the audit of the consolidated and separate financial statements, and the Office of the Auditor General of Thailand has fulfilled other ethical responsibilities in accordance with these standards and requirements. The Office of the Auditor General of Thailand believes that the audit evidence obtained is sufficient and appropriate to provide a basis for the Office of the Auditor General of Thailand’s opinion.

Other Information

Management is responsible for the other information. The other information comprises the information included in the annual report, but does not include the financial statements and the auditor’s report thereon. Management expect to provide the annual report to the Office of the Auditor General of Thailand after the date of this auditor’s report.

The Office of the Auditor General of Thailand’s opinion on the financial statements does not cover the other information and the Office of the Auditor General of Thailand will not express any form of assurance conclusion thereon.

Office of the Auditor General of Thailand 121

In connection with the audit of the financial statements, the Office of the Auditor General of Thailand’s responsibility is to read the other information identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the financial statements or the Office of the Auditor General of Thailand’s knowledge obtained in the audit, or otherwise appears to be materially misstated.

When the Office of the Auditor General of Thailand reads the annual report, if the Office of the Auditor General of Thailand concludes that there is a material misstatement therein, the Office of the Auditor General of Thailand is required to communicate the matter to those charged with governance.

Responsibilities of Management and Those Charged with Governance for the Consolidated and Separate Financial Statements

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

In preparing the consolidated and separate financial statements, management is responsible for assessing the Group’s and the Company’s ability to continue as a going concern, disclosing, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group and the Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Group’s and the Company’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Consolidated and Separate Financial Statements

The Office of the Auditor General of Thailand’s objectives are to obtain reasonable assurance about whether the consolidated and separate financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes the Office of the Auditor General of Thailand’s opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Thai Standards on Auditing will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated and separate financial statements.

As part of an audit in accordance with Thai Standards on Auditing, the Office of the Auditor General of Thailand exercises professional judgment and maintain professional skepticism throughout the audit. The Office of the Auditor General of Thailand also:

• Identifies and assesses the risks of material misstatement of the consolidated and separate financial statements, whether due to fraud or error, designs and performs audit procedures responsive to those risks, and obtains audit evidence that is sufficient and appropriate to provide a basis for the Office of the Auditor General of Thailand’s opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtains an understanding of internal control relevant to the audit 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 Group’s and the Company’s internal control.

Office of the Auditor General of Thailand 122

• Evaluates the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

• Concludes on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s and the Company’s ability to continue as a going concern. If the Office of the Auditor General of Thailand concludes that a material uncertainty exists, the Office of the Auditor General of Thailand is required to draw attention in the auditor’s report of the Office of the Auditor General of Thailand to the related disclosures in the consolidated and separate financial statements or, if such disclosures are inadequate, to modify the Office of the Auditor General of Thailand’s opinion. The Office of the Auditor General of Thailand’s conclusions are based on the audit evidence obtained up to the date of the auditor’s report of the Office of the Auditor General of Thailand. However, future events or conditions may cause the Group and the Company to cease to continue as a going concern.

• Evaluates the overall presentation, structure and content of the consolidated and separate financial statements, including the disclosures, and whether the consolidated and separate financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

• Obtains sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. The Office of the Auditor General of Thailand is responsible for the direction, supervision and performance of the Group audit. The Office of the Auditor General of Thailand remains solely responsible for the Office of the Auditor General of Thailand’s audit opinion.

The Office of the Auditor General of Thailand communicates with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that the Office of the Auditor General of Thailand identifies during the Office of the Auditor General of Thailand’s audit.

(Signed) Vanussanun Thongmeesee (Vanussanun Thongmeesee) Inspector General 1

(Signed) Prawit Tantrajin (Prawit Tantrajin) Director of Financial Audit Office No. 8

Office of the Auditor General of Thailand

March 15, 2017 123

Financial Statements (TRANSLATION) - 5 -

ELECTRICITY GENERATING AUTHORITY OF THAILAND AND ITS SUBSIDIARIES STATEMENTS OF FINANCIAL POSITION AS AT DECEMBER 31, 2016 หน่วยUnit : :บาท Baht Notes Consolidated financial statements Separate financial statements Dec 31, 16 Dec 31, 15 Dec 31, 16 Dec 31, 15 (Restated) (Restated)

ASSETS CURRENT ASSETS Cash and cash equivalents 6.1 66,485,706,823 72,647,548,544 56,897,490,871 64,932,129,035 Temporary investments 6.2 34,154,123,660 30,403,119,804 28,401,604,186 23,869,298,227 Trade accounts receivable-others 6.3 56,668,024,045 63,056,150,509 56,224,948,877 62,517,522,610 Trade accounts receivable-related parties 6.4.1 47,306,832 1,807,499,712 368,862,314 2,303,805,798 Other accounts receivable 6.6 8,565,329,814 10,190,145,618 7,937,907,887 9,419,911,207 Materials and supplies 6.7 11,987,362,289 12,092,490,602 9,886,860,869 10,141,786,762 Other current assets 6.8 1,263,109,679 1,789,129,656 43,563,216 - Total current assets 179,170,963,142 191,986,084,445 159,761,238,220 173,184,453,639 NON-CURRENT ASSETS Investments in subsidiaries 6.9.4 - - 18,900,850,000 12,913,350,000 Investments in associates 6.9.3, 6.9.4 28,530,293,373 20,930,866,940 1,587,550,233 1,587,550,233 Investments in joint ventures 6.9.3, 6.9.4 24,667,230,538 16,755,326,356 584,500,000 584,500,000 Other long-term investments 9,649,180,013 10,099,986,459 5,422,300,000 5,370,162,500 Long-term loans to related parties 6.4.2 46,947,120 47,294,940 - - Finance lease assets-power plants 6.10 332,656,988,553 285,072,130,443 332,656,988,553 285,072,130,443 Property, plant and equipment 6.11 276,496,240,370 273,251,440,038 263,436,065,638 259,366,264,470 Work under construction 6.12 59,565,516,325 35,674,128,851 58,444,785,824 35,671,208,851 Goodwill 6.13 297,329,455 299,469,555 - - Intangible assets 6.14 30,561,788,006 28,858,624,653 26,625,508,557 24,770,216,511 Land awaiting development 6.15 2,125,289,755 2,125,289,755 1,816,082,185 1,816,082,185 Project development cost for collection 493,987,722 473,754,681 - - Deferred tax assets 6.16.2 53,463,264 107,382,133 - - Deposit for deferred revenue for electricity compensation 7,991,250,720 7,383,135,509 7,991,250,720 7,383,135,509 Other non-current assets 6.17 4,240,840,027 3,427,918,257 3,479,879,791 2,418,864,547 Total non-current assets 777,376,345,241 684,506,748,570 720,945,761,501 636,953,465,249 TOTAL ASSETS 956,547,308,383 876,492,833,015 880,706,999,721 810,137,918,888

Notes to the financial statements are an integral part of these financial statements. 124

(TRANSLATION) - 6 -

ELECTRICITY GENERATING AUTHORITY OF THAILAND AND ITS SUBSIDIARIES STATEMENTS OF FINANCIAL POSITION AS AT DECEMBER 31, 2016 หน่วยUnit : : บาท Baht Notes Consolidated financial statements Separate financial statements Dec 31, 16 Dec 31, 15 Dec 31, 16 Dec 31, 15 (Restated) (Restated) LIABILITIES AND EQUITY CURRENT LIABILITIES Trade accounts payable-others 6.18 45,967,891,833 52,698,139,594 40,392,521,549 45,716,636,792 Trade accounts payable-related parties 6.4.3 11,749,855,545 8,285,578,968 18,958,934,334 16,559,695,125 Surplus revenue from electric energy sales according to automatic tariff adjustment (Ft) 6.5 14,525,610,887 7,022,818,454 14,525,610,887 7,022,818,454 Other accounts payable 11,153,151,713 10,717,727,170 10,057,725,363 9,666,654,151 Short-term loans 3,800,000,000 1,900,000,000 - - Accrued interest expenses 1,573,130,281 1,514,231,946 1,169,559,394 1,128,913,791 Accrued remittance to the Ministry of Finance 6.19 8,100,393,438 6,213,985,440 8,100,393,438 6,213,985,440 Accrued expenses 5,416,923,578 5,725,683,555 5,368,211,956 5,710,022,905 Current portion of long-term loans 6.20 3,148,789,930 6,814,543,369 3,118,844,470 5,584,598,046 Current portion of loan from infrastructure fund 12 570,298,669 414,476,205 570,298,669 414,476,205 Current portion of finance lease liabilities-power plants 6.21 16,661,288,469 14,561,186,988 20,431,336,416 17,756,736,405 Current portion of finance lease liabilities-others 91,588,983 10,608,887 90,156,647 9,831,130 Other current liabilities 31,167,876 42,419,509 - - Total current liabilities 122,790,091,202 115,921,400,085 122,783,593,123 115,784,368,444 NON-CURRENT LIABILITIES Long-term loans from related parties 6.4.4 1,029,085,384 1,071,599,090 - - Long-term loans 6.20 71,728,448,909 67,930,136,853 51,824,269,556 50,607,867,530 Loan from infrastructure fund 12 19,709,830,022 20,440,523,795 19,709,830,022 20,440,523,795 Deferred tax liabilities 6.16.2 1,804,033,782 1,958,311,454 - - Finance lease liabilities-power plants 6.21 296,587,701,713 250,375,201,926 317,812,899,309 275,370,447,469 Finance lease liabilities-others 327,768,057 42,765,175 324,437,342 41,430,378 Employee benefit obligations 6.22 15,593,217,581 15,396,261,912 15,428,834,122 15,269,984,842 Provision liabilities for mine reclamation 6.23 2,189,672,181 2,169,269,052 2,189,672,181 2,169,269,052 Deferred revenue for electricity compensation 6.5 7,991,250,720 7,552,733,132 7,991,250,720 7,552,733,132 Other non-current liabilities 6.24 15,872,731,253 12,961,444,366 15,940,901,163 12,918,151,932 Total non-current liabilities 432,833,739,602 379,898,246,755 431,222,094,415 384,370,408,130 TOTAL LIABILITIES 555,623,830,804 495,819,646,840 554,005,687,538 500,154,776,574

Notes to the financial statements are an integral part of these financial statements. 125

(TRANSLATION) - 7 -

ELECTRICITY GENERATING AUTHORITY OF THAILAND AND ITS SUBSIDIARIES STATEMENTS OF FINANCIAL POSITION AS AT DECEMBER 31, 2016 หน่วยUnit : : บาท Baht Notes Consolidated financial statements Separate financial statements Dec 31, 16 Dec 31, 15 Dec 31, 16 Dec 31, 15 (Restated) (Restated) LIABILITIES AND EQUITY EQUITY Contribution from the government 6.25 8,814,979,527 8,877,312,290 8,814,979,527 8,877,312,290 Surplus from royalty on state property service 201,210,965 207,548,321 201,210,965 207,548,321 Retained earnings Appropriated Capital expenditure appropriation 80,186,366,913 80,186,366,913 80,186,366,913 80,186,366,913 Unappropriated 275,911,926,541 256,530,520,956 239,032,876,951 222,445,202,213 Other components of equity 1,125,760,296 1,300,500,846 (1,534,122,173) (1,733,287,423) TOTAL EQUITY ATTRIBUTABLE TO EGAT 366,240,244,242 347,102,249,326 326,701,312,183 309,983,142,314 NON-CONTROLLING INTERESTS 34,683,233,337 33,570,936,849 - - TOTAL EQUITY 400,923,477,579 380,673,186,175 326,701,312,183 309,983,142,314 TOTAL LIABILITIES AND EQUITY 956,547,308,383 876,492,833,015 880,706,999,721 810,137,918,888

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

(signed)Kornrasit Pakchotanon (signed) Wanchai Hongcherdchai (Mr. Kornrasit Pakchotanon) (Mr. Wanchai Hongcherdchai) Director and Governor Deputy Governor-Account and Finance 126

(TRANSLATION) - 8 - ELECTRICITY GENERATING AUTHORITY OF THAILAND AND ITS SUBSIDIARIES STATEMENTS OF INCOME FOR THE YEAR ENDED DECEMBER 31, 2016 Unit : Baht Notes Consolidated financial statements Separate financial statements 2016 2015 2016 2015 (Restated) (Restated) REVENUES Revenue from electric energy sales 489,536,079,840 531,713,218,510 487,400,143,071 529,615,089,755 Revenue from sales of other goods and services 6.26 7,346,920,875 14,767,114,889 7,879,985,507 16,684,299,779 Total revenue from sales and services 496,883,000,715 546,480,333,399 495,280,128,578 546,299,389,534 COST OF SALES Cost of electric energy sales 6.27 395,474,196,243 444,399,730,315 394,953,305,082 443,981,542,377 Cost of sales of other goods and services 6.28 5,623,184,239 13,047,887,756 6,390,095,632 14,968,419,751 Total cost of sales and services 401,097,380,482 457,447,618,071 401,343,400,714 458,949,962,128 GROSS PROFIT 95,785,620,233 89,032,715,328 93,936,727,864 87,349,427,406 OTHER REVENUES 6.29 5,014,378,409 3,417,400,122 6,669,084,864 4,890,710,320 PROFIT BEFORE EXPENSES 100,799,998,642 92,450,115,450 100,605,812,728 92,240,137,726 SELLING EXPENSES 205,432,874 190,528,879 201,427,307 186,704,345 ADMINISTRATIVE EXPENSES 16,241,514,636 16,675,736,758 14,524,586,215 14,915,556,003 OTHER EXPENSES 6.30 18,540,308 12,010,327,520 17,525,724 10,993,376,633 TOTAL EXPENSES 16,465,487,818 28,876,593,157 14,743,539,246 26,095,636,981 FINANCE COSTS 6.31 41,700,704,874 31,685,727,384 44,789,325,603 35,323,412,369 PROFIT BEFORE SHARE OF PROFIT FROM INVESTMENTS 42,633,805,950 31,887,794,909 41,072,947,879 30,821,088,376 SHARE OF PROFIT FROM INVESTMENTS IN ASSOCIATES 6.32 2,749,778,949 1,460,422,004 - - SHARE OF PROFIT FROM INVESTMENTS IN JOINT VENTURES 2,706,753,477 908,930,197 - - PROFIT BEFORE INCOME TAXES 48,090,338,376 34,257,147,110 41,072,947,879 30,821,088,376 INCOME TAXES EXPENSES 6.16.1 886,935,508 1,407,724,577 - - PROFIT FOR THE YEAR 47,203,402,868 32,849,422,533 41,072,947,879 30,821,088,376 PROFIT (LOSS) ATTRIBUTABLE TO: OWNERS OF EGAT 43,866,678,726 31,270,421,457 41,072,947,879 30,821,088,376 NON-CONTROLLING INTERESTS 3,336,724,142 1,579,001,076 - - 47,203,402,868 32,849,422,533 41,072,947,879 30,821,088,376

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

(signed)Kornrasit Pakchotanon (signed) Wanchai Hongcherdchai (Mr. Kornrasit Pakchotanon) (Mr. Wanchai Hongcherdchai) Director and Governor Deputy Governor-Account and Finance 127

(TRANSLATION) - 9 - ELECTRICITY GENERATING AUTHORITY OF THAILAND AND ITS SUBSIDIARIES STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEAR ENDED DECEMBER 31, 2016 Unit : Baht Consolidated financial statements Separate financial statements 2016 2015 2016 2015 (Restated) (Restated) PROFIT FOR THE YEAR 47,203,402,868 32,849,422,533 41,072,947,879 30,821,088,376 OTHER COMPREHENSIVE INCOME (LOSS) ITEMS THAT MAY BE RECLASSIFIED TO PROFIT OR LOSS IN SUBSEQUENT PERIODS Exchange rate differences from currency translation (78,679,113) 25,357,509 - - Gain (loss) on available-for-sale investments valuation (439,106,260) (372,198,253) 199,165,250 156,412,500 Share of other comprehensive income (loss) of associates (41,224,505) 756,390,242 - - Share of other comprehensive income (loss) of joint ventures 357,511 (94,970) - - ITEMS THAT WILL NOT BE RECLASSIFIED TO PROFIT OR LOSS IN SUBSEQUENT PERIODS Actuarial loss (23,180,839) (450,316,233) - (451,893,675) Share of other comprehensive income (loss) of associates 1,215,623 (19,727,168) - - Share of other comprehensive income (loss) of joint ventures (8,225,621) 934,966 - - OTHER COMPREHENSIVE INCOME (LOSS) FOR THE YEAR-NET OF TAXES (588,843,204) (59,653,907) 199,165,250 (295,481,175) TOTAL COMPREHENSIVE INCOME FOR THE YEAR 46,614,559,664 32,789,768,626 41,272,113,129 30,525,607,201 PROFIT (LOSS) ATTRIBUTABLE TO: OWNERS OF EGAT 43,691,938,176 31,493,041,249 41,272,113,129 30,525,607,201 NON-CONTROLLING INTERESTS 2,922,621,488 1,296,727,377 - - 46,614,559,664 32,789,768,626 41,272,113,129 30,525,607,201

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

(signed)Kornrasit Pakchotanon (signed) Wanchai Hongcherdchai (Mr. Kornrasit Pakchotanon) (Mr. Wanchai Hongcherdchai) Director and Governor Deputy Governor-Account and Finance 128 - - - -

2,042,475

(62,332,764) (62,332,763) Unit : Baht Unit 108,757,624

(7,060,197,151) (9,833,094,355) (6,213,985,440) (1,810,325,000) (3,786,014,560) (8,100,393,438) (1,810,325,000) 32,789,768,626 46,614,559,664

Total equity (23,107,276,946) (12,607,244,974) (24,493,652,972) 372,863,352,259 372,863,352,259 380,673,186,175 380,564,428,551 380,673,186,175 400,923,477,579

------

interests

1,296,727,377 2,922,621,488 (1,810,325,000) (1,810,325,000)

34,084,534,472 34,084,534,472 33,570,936,849 33,570,936,849 33,570,936,849 34,683,233,337 Non-controlling

------2,042,475

(62,332,764) (62,332,763) 108,757,624

equity

(7,060,197,151) (9,833,094,355) (6,213,985,440) (3,786,014,560) (8,100,393,438) 31,493,041,249 43,691,938,176

(23,107,276,946) (12,607,244,974) (24,493,652,972) 338,778,817,787 338,778,817,787 347,102,249,326 346,993,491,702 347,102,249,326 366,240,244,242

Total EGAT’s

------

17,218,380

equity 222,619,792

(174,740,550)

1,077,881,054 1,077,881,054 1,300,500,846 1,283,282,466 1,300,500,846 1,125,760,296

Total other components of components

------

56,143 56,143

687,597 743,740 743,740 743,740

(3,472,552) (2,728,812)

joint ventures joint Share of other comprehensive income (loss) of of (loss) income ------

(35,038,440) (59,278,710) (40,008,882) 250,859,814 215,821,374 736,663,073 952,484,447 952,484,447 912,475,565

associates 1,011,763,157

Share of other comprehensive income (loss) of of (loss) income ------

2,886,909,938 2,886,909,938 2,886,909,938 2,886,909,938 2,886,909,938 2,886,909,938

Surplus on on Surplus equity method equity associates using associates

subsidiaries and subsidiaries ------

(10,431,377)

(451,183,826) Actuarial gain (loss) Other components of equity Otherof components (1,435,352,146) (1,435,352,146) (1,886,535,972) (1,886,535,972) (1,886,535,972) (1,896,967,349)

------

Other comprehensive income (loss) income Other comprehensive (81,462,339) (88,056,929)

609,946,580 609,946,580 528,484,241 528,484,241 528,484,241 440,427,312

valuation investments Gain (loss) on

available-for-sale - 10 - Equity attributable to EGAT to attributable Equity ------

(TRANSLATION)

7,604,168

105,465,824 215,630,305 Loss on Loss (105,465,824) (223,234,473)

Consolidated financial statements financial Consolidated cash flow hedges flow cash

STATEMENTS OF CHANGES IN EQUITY FOR THE YEAR ENDED DECEMBER 31, 2016 31, DECEMBER ENDED YEAR THE FOR ------

9,614,212

17,915,287 (70,427,384) (32,770,810)

(156,351,595)

differences translation (1,129,073,451) (1,199,500,835) (1,181,585,548) (1,034,848,165) (1,181,585,548) (1,214,356,358)

Exchange rate rate Exchange from currency currency from

ELECTRICITY GENERATING AUTHORITY OF THAILAND AND ITS SUBSIDIARIES AND ITS THAILAND OF AUTHORITY GENERATING ELECTRICITY ------

6,337,356 6,337,356 2,042,475

91,539,244

(7,060,197,151) (9,833,094,355) (6,213,985,440) (3,786,014,560) (8,100,393,438)

31,270,421,457 43,866,678,726

(23,107,276,946) (12,607,244,974) (24,493,652,972)

248,361,039,089 248,361,039,089 256,530,520,956 256,438,981,712 256,530,520,956 275,911,926,541

Unappropriated

------

Retained earnings Retained

80,186,366,913 80,186,366,913 80,186,366,913 80,186,366,913 80,186,366,913 80,186,366,913 Appropriated

------

(6,337,356) (6,337,356)

213,885,677 213,885,677 207,548,321 207,548,321 207,548,321 201,210,965

Surplus from royalty on state

property service property ------

(62,332,764) (62,332,763)

8,939,645,054 8,939,645,054 8,877,312,290 8,877,312,290 8,877,312,290 8,814,979,527

the government

Contribution from Contribution 5 5 5 6.25 6.25 Notes Increaseof theyear 2014 Theyear 2015 (Jan 1 - Jun 30, 2015) Theyear 2015 (Jul 1 - Dec 31, 2015) Dividends paid Amortization of surplus from royalty on stateproperty service year (loss) for the income comprehensive Total Increaseof theyear 2015 Theyear 2016 (Jan 1 - Jun 30, 2016) Theyear 2016 (Jul 1 - Dec 31, 2016) Dividends paid Amortization of surplus from royalty on stateproperty service Adjustment of bonus reservelast year year (loss) for the income comprehensive Total Balance as at January 1, 2015 (Before reclassified) (Before 2015 1, January at as Balance reclassification the of effect Cumulative (Reclassified) 2015 1, January at as Balance for irrigation assets of Depreciation Remittance the to Ministry of Finance Provision for remittance to theMinistry of Finance Changesin equity for theyear 2015 31, December at as Balance reclassified) and adjustment (Before 2016 1, January at as Balance adjustment of the effect Cumulative reclassification of the effect Cumulative (Adjusted) 2016 1, January at as Balance for irrigation assets of Depreciation Remittance the to Ministry of Finance Provision for remittance to theMinistry of Finance Changesin equity for theyear 2016 31, December at as Balance statements. these of part financial integral an statements are Notes theto financial 129

- - 2,042,475

40,841,296 Unit : Baht Unit (62,332,763) (62,332,764) (8,100,393,438) (6,213,985,440) (3,786,014,560) (9,833,094,355) (7,060,197,151) 41,272,113,129 30,525,607,201 (24,493,652,972) (23,107,276,946) (12,607,244,974) 309,983,142,314 302,627,144,823 309,942,301,018 309,983,142,314 326,701,312,183

Total equity Total

-

------199,165,250

(295,481,175)

(1,733,287,423) (1,437,806,248) (1,733,287,423) (1,733,287,423) (1,534,122,173) Total other Total components of equity of components

-

-

------

(451,893,675)

(1,889,699,923) (1,437,806,248) (1,889,699,923) (1,889,699,923) (1,889,699,923) Actuarial loss Actuarial

Other components of equity of components Other

-

------199,165,250 156,412,500 156,412,500 156,412,500 156,412,500 355,577,750

Other comprehensive income (loss) income comprehensive Other investments valuation investments Gain on available-for-sale Gain

- - 2,042,475 6,337,356 6,337,356

40,841,296 (8,100,393,438) (6,213,985,440) (3,786,014,560) (9,833,094,355) (7,060,197,151) 41,072,947,879 30,821,088,376 (24,493,652,972) (23,107,276,946) (12,607,244,974) 222,445,202,213 214,725,053,427 222,404,360,917 222,445,202,213 239,032,876,951

Unappropriated

-

-

------11 Retained earnings Retained (TRANSLATION) 80,186,366,913 80,186,366,913 80,186,366,913 80,186,366,913 80,186,366,913

Separate financial statements financial Separate Appropriated STATEMENTS OF CHANGES IN EQUITY CHANGES OF STATEMENTS

FOR THE YEAR ENDED DECEMBER 31, 2016 YEAR ENDED DECEMBER THE FOR

-

-

------

(6,337,356) (6,337,356) 207,548,321 213,885,677 207,548,321 207,548,321 201,210,965

ELECTRICITY GENERATING AUTHORITY OF THAILAND AND THAILAND ITS SUBSIDIARIES OF ELECTRICITY AUTHORITY GENERATING Surplus from royalty on state on royalty property service property

-

-

------(62,332,763) (62,332,764) 8,877,312,290 8,877,312,290 8,814,979,527 8,939,645,054 8,877,312,290

the government the Contribution from Contribution

5 6.25 6.25 Notes equity for the year the for equity Total comprehensive income for the year the for income comprehensive Total Adjustment of bonus reserve last year last reserve bonus of Adjustment Amortization of surplus from royalty on state property service service property state on royalty from of surplus Amortization The year 2016 (Jul 1 - Dec 31, 2016) 31, Dec 1 - (Jul 2016 year The The year 2015 (Jul 1 - Dec 31, 2015) 31, Dec 1 - (Jul 2015 year The The year 2016 (Jan 1 - Jun 30, 2016) Jun 30, 1 - (Jan 2016 year The Increase of the year 2015 year the of Increase The year 2015 (Jan 1 - Jun 30, 2015) Jun 30, 1 - (Jan 2015 year The Increase of the year 2014 year the of Increase Total comprehensive income (loss) for the year the for (loss) income comprehensive Total Amortization of surplus from royalty on state property service service property state on royalty from of surplus Amortization Changes in equity for the year the for equity in Changes Provision for remittance to the Ministry of Finance of Ministry the to remittance for Provision Provision for remittance to the Ministry of Finance of Ministry the to remittance for Provision Remittance to the Ministry of Finance of Ministry the to Remittance Remittance to the Ministry of Finance of Ministry the to Remittance Depreciation of assets for irrigation for of assets Depreciation Balance as at January 1, 2016 (Adjusted) (Adjusted) 2016 1, January at as Balance Depreciation of assets for irrigation for of assets Depreciation Cumulative effect of the adjustment the of effect Cumulative Balance as at January 1, 2015 1, January at as Balance in Changes 2015 31, December at as Balance adjustment) (Before 2016 1, January at as Balance 2016 31, December at as Balance statements. financial these of part an integral are statements financial the to Notes 130

(TRANSLATION) - 12 -

ELECTRICITY GENERATING AUTHORITY OF THAILAND AND ITS SUBSIDIARIES STATEMENTS OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2016 Unit : Baht Notes Consolidated financial statements Separate financial statements 2016 2015 2016 2015 (Restated) (Restated) CASH FLOWS FROM OPERATING ACTIVITIES Profit before income taxes 48,090,338,376 34,257,147,110 41,072,947,879 30,821,088,376 Adjustments to reconcile net income to net cash inflow (outflow) from operating activities Depreciation 26,252,997,792 25,261,125,822 25,222,334,976 24,212,338,221 Depreciation of finance lease assets-power plants 6.34 17,704,749,904 13,149,472,722 17,704,749,904 13,149,472,722 Donation assets a (155,090) (14,590) (155,090) (14,590) Loss on donated assets 997,239 851,923 997,239 851,923 Amortization of land rights and project development rights 293,224,541 265,979,681 874,894 896,061 Amortization of computer software rights 249,908,642 236,429,935 232,349,691 219,763,750 Amortization of royalty on state property service 6,337,356 6,337,356 6,337,356 6,337,356 Amortization of transmission system connection rights - 3,014,155 - - Allowance for diminution in value of inventories, materials and supplies 251,033,307 356,380,953 400,131,360 148,428,385 Amortization of deferred charges of the lignite mine 5,781,620,431 5,926,443,274 5,781,620,431 5,926,443,274 Doubtful debts 171,142 (591,836) 171,142 (591,836) Bad debts 657,984 605,512 657,984 605,512 Loss on revaluation of investments in trading securities 4,765,275 723,799 - - Profit on disposal of assets (210,626,067) (137,364,910) (210,765,917) (14,917,411) Revenue from deferred income 6.24 (421,600,612) (347,191,727) (421,600,612) (347,191,727) Employee benefit expense realized from estimates 1,150,476,167 1,137,037,387 1,124,782,738 1,117,306,186 Actuarial gain 6.22 - (1,892,276) - (1,892,276) Loss (Gain) on foreign exchange 6.29, 6.30 (345,248,161) 1,587,414,414 (209,065,513) 419,755,696 Loss (Gain) on foreign exchange under finance leases-power plants 6.29, 6.30 (856,738,680) 10,408,848,250 (872,673,649) 10,559,556,081 Gain on changes in the fair value of derivatives 6.29 (75,803,108) (140,626,844) (75,803,108) (140,626,844) Dividends received from associates 6.9.4 - - (869,528,803) (836,085,388) Dividends received from subsidiary 6.9.4 - - (1,481,175,000) (1,481,175,000) Dividends received from joint venture 6.9.4 - - (15,400,000) (15,360,660) Dividends received from other investments (473,227,542) (269,418,991) (268,508,125) (57,351,250) Share of profit from investments in associates 6.32 (2,749,778,949) (1,460,422,004) - - Share of profit from investments in joint ventures (2,706,753,477) (908,930,197) - - Interest income (1,477,475,544) (1,791,064,573) (1,260,494,000) (1,372,795,126) Finance costs 6.31 4,195,902,576 4,406,911,230 2,790,773,447 3,016,661,249 Interest expenses under finance leases-power plants 6.31 37,504,802,298 27,278,816,153 41,998,552,156 32,306,751,120 Reversal of provision liabilities and others 24,714,897 32,103,584 - - Net income from operating activities before changes in operating assets and liabilities 132,195,290,697 119,258,125,312 130,652,111,380 117,638,253,804

Notes to the financial statements are an integral part of these financial statements. 131

(TRANSLATION) - 13 -

ELECTRICITY GENERATING AUTHORITY OF THAILAND AND ITS SUBSIDIARIES STATEMENTS OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2016 Unit : Baht Notes Consolidated financial statements Separate financial statements 2016 2015 2016 2015 (Restated) (Restated) CASH FLOWS FROM OPERATING ACTIVITIES (CONTINUE) Changes in operating assets (Increase) Decrease Trade accounts receivable 8,146,467,020 836,841,874 8,228,448,032 809,836,272 Other accounts receivable 658,101,296 677,877,862 (1,397,212) 1,165,007,804 Materials and supplies (112,583,255) 1,028,514,949 (83,172,294) 500,574,241 Other current assets 502,621,067 179,967,438 (43,563,217) - Deposit for deferred revenue for electricity compensation (608,115,210) (4,095,131,924) (608,115,210) (4,095,131,924) Other non-current assets (884,064,619) (440,994,270) (1,134,326,155) (963,738,147) Deferred charges of the lignite mine (5,708,309,521) (5,857,883,614) (5,708,309,521) (5,857,883,614) Changes in operating liabilities Increase (Decrease) Trade accounts payable 4,301,146,271 1,032,079,267 4,708,095,719 771,167,576 Other accounts payable 923,988,137 (407,105,896) (551,284,162) 300,673,106 Long-term advance receive from related party - (7,903,089) - - Other current liabilities (11,251,633) (25,631,168) - - Accrued expenses (313,692,690) 517,188,500 (341,810,949) 522,961,131 Other non-current liabilities (453,769,415) 426,915,534 20,437,644 (833,670,500) Actual payment on employee benefit (1,022,266,776) (813,143,105) (1,011,579,359) (810,762,545) Deferred revenue for electricity compensation 438,517,587 4,165,902,592 438,517,587 4,165,902,592 Provision liabilities for mine reclamation 31,244,301 37,044,373 31,244,301 37,044,373 5,888,032,560 (2,745,460,677) 3,943,185,204 (4,288,019,635) Cash receipts from operating 138,083,323,257 116,512,664,635 134,595,296,584 113,350,234,169 Cash receipts on interest 851,881,433 807,600,816 843,996,417 795,543,140 Cash payment on income taxes (938,044,323) (1,747,939,563) - - Net cash from operating activities 137,997,160,367 115,572,325,888 135,439,293,001 114,145,777,309 CASH FLOWS FROM INVESTING ACTIVITIES Net cash receipts (payment) on temporary investments (3,685,467,254) (1,470,433,918) (4,425,469,859) 157,004,294 Net cash receipts (payment) on long-term investments 29,713,583 (6,336,898,491) 147,027,750 (5,213,750,000) Cash receipts on disposal of assets 384,072,430 465,235,726 383,484,483 436,506,247 Cash payment on property, plant, equipment, work under construction and intangible assets b (49,012,632,916) (34,365,304,265) (47,466,099,391) (34,194,421,946) Cash payment on finance costs for work under construction b (997,301,167) (429,095,119) (997,301,167) (429,095,119) Cash payment on project development cost for collection (47,528,970) (459,668,536) - - Cash receipts from short-term loans to related party 7,600,000 - - - Cash payment on short-term loans to related party - (7,600,000) - - Cash payment of refund to contribution 6.24 - (3,900,000) - (3,900,000) Cash receipts on deferred income 328,163,765 424,596,864 328,163,765 424,596,864 Cash payment on investments in subsidiaries - - (5,987,500,000) (1,746,000,000) Cash payment on investments in associated company (6,420,343,116) (40,604,840) - - Cash payment on investments in joint ventures (7,708,753,399) (6,132,612,794) - - Cash receipts from disposal of investments in joint ventures - 13,972,105 - - Cash receipts on interest 714,319,482 901,955,536 497,621,608 490,282,658 Dividends received from associates 6.9.3, 6.9.4 1,095,726,385 1,180,184,864 869,528,803 836,085,388 Dividends received from subsidiary 6.9.4 - - 1,481,175,000 1,481,175,000 Dividends received from joint ventures 6.9.3, 6.9.4 2,882,894,800 728,250,136 15,400,000 15,360,660 Dividends received from other entities 473,227,542 269,418,991 268,508,125 57,351,250 Net cash used in investing activities (61,956,308,835) (45,262,503,741) (54,885,460,883) (37,688,804,704)

Notes to the financial statements are an integral part of these financial statements. 132

(TRANSLATION) - 14 -

ELECTRICITY GENERATING AUTHORITY OF THAILAND AND ITS SUBSIDIARIES STATEMENTS OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2016 Unit : Baht Notes Consolidated financial statements Separate financial statements 2016 2015 2016 2015 (Restated) (Restated) CASH FLOWS FROM FINANCING ACTIVITIES Remittance to the Ministry of Finance (22,607,244,974) (25,273,999,326) (22,607,244,974) (25,273,999,326) Cash receipts from short-term loans from financial institutions 12,390,000,000 24,880,000,000 - - Cash payment of short-term loans from financial institutions (10,490,000,000) (25,280,000,000) - - Cash receipts from bill of exchange payables - 2,700,000,000 - - Cash payment of bill of exchange payables - (5,200,000,000) - - Cash receipts from long-term loans 6.20 6,989,162,213 2,126,309,581 4,400,000,000 - Cash receipts from long-term loan from infrastructure fund - 20,855,000,000 - 20,855,000,000 Cash payment on long-term loans from related party (26,177,235) - - - Decrease in finance lease liabilities-others (60,028,158) (5,729,032) (58,921,544) (4,201,198) Decrease in finance lease liabilities-power plants (16,120,268,065) (12,185,507,661) (19,299,882,512) (15,763,807,561) Cash payment of long-term loans (6,842,936,022) (9,462,854,794) (5,617,010,847) (8,065,858,653) Cash payment on long-term loans from infrastructure fund (574,871,309) - (574,871,309) - Cash payment on finance costs (4,138,399,809) (4,117,606,983) (2,750,238,752) (2,820,351,600) Cash payment on interest under finance leases-power plants 6.31 (37,504,802,298) (27,278,816,153) (41,998,552,156) (32,306,751,120) Dividends paid to non-controlling interests of subsidiary (3,290,934,621) (1,809,375,459) - - Net cash used in financing activities (82,276,500,278) (60,052,579,827) (88,506,722,094) (63,379,969,458) EFFECT FROM FOREIGN EXCHANGE RATE IN CASH AND CASH EQUIVALENTS 73,807,025 (255,763,034) (81,748,188) 23,037,529 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (6,161,841,721) 10,001,479,286 (8,034,638,164) 13,100,040,676 CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR 72,647,548,544 62,646,069,258 64,932,129,035 51,832,088,359 CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR 6.1 66,485,706,823 72,647,548,544 56,897,490,871 64,932,129,035

Notes to the financial statements are an integral part of these financial statements. 133 (TRANSLATION) - 15 -

ELECTRICITY GENERATING AUTHORITY OF THAILAND AND ITS SUBSIDIARIES STATEMENTS OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2016

Notes to the Statements of Cash Flows a. Donation Assets EGAT had non-monetary donation assets during the year 2016 and 2015 amounted to Baht 0.15 million and Baht 0.01 million respectively. b. Property, Plant and Equipment, Work under Construction and Intangible Assets Consolidated Financial Statements During the year 2016, EGAT and its subsidiaries purchased property, plant and equipment, work under construction, intangible assets and finance costs for work under construction which total costs were Baht 50,988.65 million. The purchase was paid in cash amounted to Baht 50,009.93 million, which includes the amount of net accounts payable during the year amounted to Baht 947.60 million (Beginning and Ending balance of accounts payable amounted to Baht 2,926.14 million and Baht 3,873.74 million respectively). The remaining amounted to Baht 31.12 million were net revenues from first synchronization of power plants which would deduct the cost of property, plant and equipment, work under construction and intangible assets. During the year 2015, EGAT and its subsidiaries purchased property, plant and equipment, work under construction, intangible assets and finance costs for work under construction which total costs were Baht 35,107.92 million. The purchase was paid in cash amounted to Baht 34,794.40 million, which includes the amount of net accounts payable during the year amounted to Baht 10.90 million (Beginning and Ending balance of accounts payable amounted to Baht 2,915.24 million and Baht 2,926.14 million respectively). The remaining amounted to Baht 302.62 million were net revenues from first synchronization of power plants which would deduct the cost of property, plant and equipment, work under construction and intangible assets. Separate Financial Statements During the year 2016, EGAT purchased property, plant and equipment, work under construction, intangible assets and finance costs for work under construction which total costs were Baht 49,442.12 million. The purchase was paid in cash amounted to Baht 48,463.40 million, which includes the amount of net accounts payable during the year amounted to Baht 947.60 million (Beginning and Ending balance of accounts payable amounted to Baht 2,926.14 million and Baht 3,873.74 million respectively). The remaining amounted to Baht 31.12 million were net revenues from first synchronization of power plants which would deduct the cost of property, plant and equipment, work under construction and intangible assets. 134 (TRANSLATION) - 16 -

During the year 2015, EGAT purchased property, plant and equipment, work under construction, intangible assets and finance costs for work under construction which total costs were Baht 34,937.04 million. The purchase was paid in cash amounted to Baht 34,623.52 million, which includes the amount of net accounts payable during the year amounted to Baht 10.90 million (Beginning and Ending balance of accounts payable amounted to Baht 2,915.24 million and Baht 2,926.14 million respectively). The remaining amounted to Baht 302.62 million were net revenues from first synchronization of power plants which would deduct the cost of property, plant and equipment, work under construction and intangible assets. c. Finance Lease Assets-Power Plants EGAT and its subsidiaries had the finance lease assets-power plants increased by Baht 65,289.61 million during the year 2016 which were equivalent to finance lease liabilities-power plants increased during the year.

Notes to the financial statements are an integral part of these financial statements. 135

(TRANSLATION) - 17 - ELECTRICITY GENERATING AUTHORITY OF THAILAND AND ITS SUBSIDIARIES NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016

1. General Information Electricity Generating Authority of Thailand (EGAT), which is a juristic person, was established by Electricity Generating Authority of Thailand Act, B.E. 2511 (1968) and subsequent amendments. EGAT’s main business objectives are generating, acquiring, transmission or distribution electric energy, the operation of electric energy business and energy sources deriving from natural resources, and undertaking business concerning electric energy and other businesses concerning or related to the activities of EGAT, or collaborate with other persons for the said activities. Besides, its businesses include production and selling lignite or any chemicals derived from lignite. The head office of EGAT is located at 53 Moo 2, Charansanitwong Road, Bang Kruai, Nonthaburi.

2. Basis of Financial Statements Presentations 2.1 Principles of Financial Statements Preparation The consolidated and the separate financial statements have been prepared in accordance with Thai Financial Reporting Standards under the Accounting Profession Act, B.E. 2547, including interpretations and guidelines promulgated by the Federation of Accounting Professions (FAP). EGAT has presented the financial statements in compliance with the notification of the Department of Business Development “Definition of the abbreviated components required in the financial statements, B.E. 2554”, dated September 28, B.E. 2554, under the third paragraph of section 11 of the Accounting Act, B.E. 2543. These accompanying consolidated and the separate financial statements are prepared based on the assumption that users of these financial statements have an understanding of generally accepted accounting principles and practices used in Thailand. In any case, these accounting principles may differ, in certain aspects, from generally accepted accounting principles used in other countries. The mentioned financial statements have been prepared under the historical cost convention, except explained otherwise as disclosed in Note 3, Significant Accounting Policies. In the Consolidated financial statements, the significant transactions arising between EGAT and subsidiaries are eliminated. Investments in subsidiaries, associates and joint ventures have been presented in the separate financial statements under the cost method. Non-controlling interests are separately disclosed in equity. When materiality, accounting policies of its subsidiaries, associates and joint ventures have been changed to ensure consistency with the accounting policies adopted by EGAT. 136

(TRANSLATION) - 18 - An English language version of the financial statements has been prepared from the statutory financial statements that were issued in Thai language. In case of conflict or difference in the interpretation between the two languages, the financial statements in Thai language shall prevail.

2.2 Use of Estimates The consolidated and the separate financial statements are prepared in conformity with Thai generally accepted accounting principles in Thailand, which require management to make estimates and assumptions that affect the book value of assets and liabilities in the consolidated and the separate financial statements. Actual results may differ from those estimates and assumptions.

3. Significant Accounting Policies 3.1 Cash and Cash Equivalents Cash and cash equivalents include cash, cash in current accounts, saving accounts and short term fixed deposits not more than 3 months including promissory notes or bills of exchange with maturity of 3 months or less which EGAT has fully accessed without commitment.

3.2 Temporary Investments Temporary investments of EGAT has followed to the regulations of the Ministry of Finance regarding accounting and finance of state owned enterprise B.E. 2548 section 2 of finance which defined state owned enterprise to deposit its money with commercial banks that also are state owned following to the budgeting law. If there is remaining liquidity or desire to manage remaining liquidity to gain higher reward than deposit with state owned banks following to the budgeting law of state owned enterprise, it is possible to invest in short term financial instruments issued by the Ministry of Finance or financial institutions of government.

3.3 Trade Accounts Receivable and Other Accounts Receivable

Accounts receivable are stated at net realizable value. The allowance for doubtful accounts is estimated by percentage of the overdue, which have been based on historical results of collection and the present events pertaining to accounts receivable at the statements of financial position date. According to the regulations of the Ministry of Finance regarding accounting and finance of state owned enterprise B.E. 2548, which amended the regulations of the Ministry of Finance regarding accounting and finance of state owned enterprise B.E. 2520, the allowance for doubtful accounts are stated as follows:

137 (TRANSLATION) - 19 - 3.3.1 Trade accounts receivable exclude of government agencies and state enterprises Overdue period Percentage of allowance for doubtful accounts Over 6 months - 1 year 50 Over 1 year 100 3.3.2 Other accounts receivable (exclude accrued revenues and prepaid expenses), which the overdue period is over 1 year, the percentage of allowance for doubtful accounts is 100.

3.4 Materials and Supplies 3.4.1 Fuel oil for each power plant is stated at the weighted average cost method. 3.4.2 Lignite is stated at the weighted average cost method. 3.4.3 Spare parts for each power plant and mine equipment are stated at the weighted average cost method less allowance for obsolescence of stocks designed to write off the parts on a straight-line method over the useful lives of the main equipment. Spare parts for each power plant under materials and supplies-net item are namely the spare parts and equipment which are used in power plants maintenance. The portion of main spare parts and equipment for power plants, which has useful life over 1 year, is stated in equipment for power plants under property, plant and equipment item. Spare parts for mine equipment are namely component, spare parts and supplies for mine equipment maintenance such as spare parts for 85 ton truck, excavator and engine belt system. However, useful lives over 1 year and reserved spare parts for mine equipment are stated under property, plant and equipment item. 3.4.4 General materials and supplies are stated at the weighted average cost method less allowance for obsolescence of stocks designed, which have not moved for 6 months and above. The allowance is calculated at the following rates:

No movement within Percentage of allowance for obsolescence of stocks 6 -18 months 10 Over 18 - 30 months 30 Over 30 - 48 months 50 Over 48 - 60 months 75 Over 60 months 100 138

(TRANSLATION) - 20 - General materials and supplies consist of fuel oil for vehicle and machine, general spare parts and office suppliers for operation.

3.5 Derivative Assets and Derivative Liabilities Derivatives have initially realized based on the fair value at the statements of financial position date. Gain or loss from the change of fair value are realized in statements of income of that period. At the statements of financial position date, the fair value of forward foreign exchange contracts, cross currency and interest rate swap contracts, currency swap contracts and interest rate swap contracts are calculated by financial institutions, which are the contractors of EGAT.

3.6 Investments in Subsidiaries, Associates and Joint Ventures 3.6.1 Investments in subsidiaries Investments in subsidiaries of EGAT have been presented in the separate financial statements under the cost method. Investments in subsidiaries of EGAT and its subsidiaries have been eliminated together with the equity interests in the consolidated financial statements preparation. A list of subsidiaries of EGAT and its subsidiaries is set out in Note 6.9.1 and 6.9.2 respectively. Although EGAT owned Ratchaburi Electricity Generating Holding Public Company Limited (RATCH) and EGAT Diamond Service Co., Ltd., only 45% of the total fully paid-up common share, EGAT has effective control over so that they are subsidiaries of EGAT according to Thai Financial Reporting Standards which must prepare the consolidated financial statements. 3.6.2 Investments in associates Investment in associate of EGAT has been presented in the separate financial statements under the cost method. Investments in associates of EGAT and its subsidiaries have been presented in the consolidated financial statements under the equity method. A list of associates of EGAT and its subsidiaries is set out in Note 6.9.1 and 6.9.2 respectively. 3.6.3 Investments in joint ventures Investment in joint ventures of EGAT has been presented in the separate financial statements under the cost method. Investments in joint ventures of EGAT and its subsidiaries have been presented in the consolidated financial statements under the equity method. A list of joint ventures of EGAT and its subsidiaries is set out in Note 6.9.1 and 6.9.2 respectively. 139 (TRANSLATION) - 21 - 3.7 Investments in Financial Securities Investments in financial securities of EGAT comprise of held-to-maturity investments and available-for-sale securities investments. 3.7.1 Held-to-maturity investments are investments with maturity period. The bearers intend and are able to hold to maturity date. It has been included in the current assets and disclosed in cash and cash equivalents and temporary investments in the case of the maturity date of investments is more than 3 months but not more than 1 year. Held-to-maturity investments are stated in the statements of financial position at amortized cost less impairment loss of investments. The difference between purchased prices and maturity value will be amortized using the effective rate of interest method over the maturity of the investments. 3.7.2 Available-for-sale securities investments are investments held with no identifiable time and may sell for enhancing liquidity or when interests rate change. Available-for-sale securities investments are stated at fair value. Unrealized gain (loss) from value changes is recognized separately in the equity. When there are sales of available-for-sale securities investments, accumulated changes in fair value are recognized in the statements of income and disclosed in gain (loss) from sale of investments. Investments in financial securities of EGAT is in compliance with the regulations of the Ministry of Finance about Accounting and Finance of state owned enterprise, B.E. 2548 section 2 which required the state owned enterprises who want to manage liquidity may elect to invest in short-term financial instruments issued by the Ministry of Finance or government financial institutions.

3.8 Property, Plant and Equipment Property, Plant and equipment are stated at cost on the date of acquisition or completion of construction less accumulated depreciation and allowance for impairment. Depreciation is calculated on the straight-line method in order to reduce the book value of each type of assets over the estimated useful lives with residual value of one Baht except the land which has infinite useful lives. The estimates of useful lives of EGAT’s assets are as follows:

Years Structures 3 years - 40 years Reservoirs and dams 6 years 8 months - 75 years 140 (TRANSLATION) - 22 - Years Power plants 5 years - 30 years

Equipment for power plants 3 years - 25 years

Control system 3 years - 25 years Transmission system 3 years - 40 years Communication system 5 years - 25 years Coal handling system 10 years - 25 years

Machinery 5 years - 10 years

Large-sized spare parts for mine equipment 8 years Vehicles 5 years - 12 years Others 3 years - 10 years

The estimate of useful lives for power plants of subsidiaries is stated according to the power purchase agreement. Depreciation of the Srinagarind, Bang Lang, Vajiralongkorn, Rajjaprabha and Pak Mun dams are included in the statements of income only to the extent that they relate to power generation. The remaining portion relating to irrigation is deducted from capital contribution for supporting construction of those dams. When the asset was disposed, EGAT recorded to write off the asset with accumulated depreciation and recognized gain (loss) on disposal of asset in the statements of income. The cost of major inspection was recognized as the part of property, plant and equipment and was amortized according to the estimated useful lives. The useful lives of major inspection fee are estimated under type of major inspection fee and power plants as follows:

Type of Major Inspection Fee Major Overhaul : MO Minor Inspection : MI Type of Power Plants Useful lives (Year) Useful lives (Year) - Hydro Power Plants 6 - 12 2 - 4 - Thermal Power Plants 4 - 6 2 - Combined Cycle Power Plants 2 - 6 2 - 3 - Gas Turbine Power Plants 4 - 8 1 - 4 - Lignite Power Plants 8 2 141

(TRANSLATION) - 23 - Besides, cost of power plants commissioning after deduction of revenue from electric energy during power plants commissioning are recorded as the part of property, plant and equipment in work under construction item.

3.9 Assets and Liabilities under Finance Lease Agreements Assets and liabilities under finance lease agreements are stated at the lower of fair values at inception or present values of the minimum lease payments less accumulated depreciation. A portion of lease payments is recognized as financial expenses and the remainder is deducted from the principle over the lease periods. Depreciations of those leased assets are calculated on the straight-line method over the estimated useful lives of each type of assets. In case the ownership of the assets is not transferred to the lessee at the end of the lease periods, depreciations are based on the shorter of the useful lives of the assets or the lease period. Determining whether an arrangement is, or contains, a lease is based on the substance of the arrangement and requires an assessment that the arrangement meets the following criteria before the classification of leases. 1. Fulfillment of the arrangement is dependent on the use of a specific asset and 2. The agreement conveys a right to use the asset.

Determining whether a lease is a finance lease depends on the substance of the transaction rather than the form of the contract. Lease will be classified as a finance lease, if the arrangement represents individually or in combination situations as follows: 1. The lease transfers ownership of the asset to the lessee by the end of the lease term; 2. The lessee has the option to purchase the asset at a price that is expected to be sufficiently lower than the fair value at the date the option becomes exercisable for it to be reasonably certain, at the inception of the lease, that the option will be exercised; 3. The lease term is for the major part of the economic life of the asset even if title is not transferred; 4. At the inception of the lease, the present value of the minimum lease payments amounts to at least substantially all of the fair value of the leased asset; and 5. The leased assets are of such a specialized nature that only the lessee can use them without major modifications.

142 (TRANSLATION) - 24 - 3.10 Intangible Assets 3.10.1 Land rights The land rights under transmission line have infinite useful lives because their future economic benefits are uncertain. Other land rights will be amortized according to the certain useful lives. 3.10.2 Computer software rights and software license Computer software rights of EGAT are amortized as expenses over the expected useful lives within 5-10 years. The software license is amortized over the useful life of the rights granted. 3.10.3 Royalty on state property service In 1990, with the approval of the Ministry of Finance, EGAT has been entitled to use land and building surrounding the Sirikit dam, which are state property without charge and EGAT recognized cost of dam in portion that use for generating electric power and surplus from Royalty on State Property Service as a Royalty on State Property Service account. It is recognized as expenses and written off from the Royalty on State Property Service. The balance has been amortized within 59 years which is the remainder estimated useful life of the Sirikit dam. 3.10.4 Transmission system connection rights Transmission system connection rights are amortized based on a straight-line method over the expected useful lives in 8 years. 3.10.5 Project development rights The incurred costs on development projects are recognized as intangible assets when there are obvious possibilities that the projects will be succeeded. The cost on development projects that has been capitalized is amortized from commencement of the commercial operation based on a straight-line method over the period of its expected benefit. 3.10.6 Research and development expenditure Research and development expenditure is divided into 2 phases according to phase of activities as below: 1. Expenditure on research phase includes the expenditure of experiment to acquire new knowledge and understanding on scientific or technical. Gain or loss will be recognized when it is occurred. 2. Expenditure on development phase is related to a new product and process work plan, design or improvement. It will be recognized as an asset when the development cost can be reliably measured or the product or process has the commercial and technological feasibility as well as generate economic benefits. However, EGAT must have the intention and adequate resource to apply the gained knowledge to achieve the development so that the asset can be utilized or sold. 143 (TRANSLATION) - 25 - The development expenditure which will be recognized as an asset consists of cost of materials, labor and others which directly attributed to the preparation of asset for its intended use and borrowing cost. The development expenditure, recognized as asset, is stated at cost less accumulated amortization. In case the prototype asset can be used for operation, EGAT will separate cost of tangible asset from intangible asset in order to classify tangible asset as property, plant and equipment according to type of asset.

3.11 Goodwill Goodwill represents the excess of the cost of acquisition of the group of subsidiaries over the fair value of the Group’s share of the identified net assets of the acquired subsidiary, joint venture or associate at the acquisition date. Goodwill is measured at cost less accumulated impairment losses. Goodwill has been tested for impairment where the carrying amount of the Group’s assets is reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, the assets recoverable amounts are estimated. For goodwill, the recoverable amount is estimated at each reporting date, when indicators of impairment are identified.

3.12 Project Development Cost for Collection Project development cost for collection of subsidiary will record as an asset when the Ministry of energy approved the principle of investment project. In any case, if Board of Directors consider and approve the termination of the project, the entity will write off the project development cost for collection which was recognized as an asset and recognize it immediately as an expense in that period.

3.13 Deferred Charges of the Lignite Mine 3.13.1 Overburden removal costs The costs of overburden removal expended in each year are calculated by multiply the quantity of lignite extracted from the mine in that period by 6.09 (the stripping ratio is 6.09:1, which is the ratio of the overburden bears to the total economically lignite) and multiply by the average cost per cubic metre of overburden removed. In case the actual stripping ratio in each period is more than 6.09, the excess is recorded as the deferred charges. However, the overburden removal costs must not exceed the actual expenses. 3.13.2 Minerals resource exploration and preliminary development costs Minerals resource exploration and preliminary development costs are recognized as expenses for the year in which they are incurred. However, any exploration done as a part of a power development plan or an area to expand the mine is recognized as deferred charges and amortization is calculated based on the ratio of deferred charges to the total volume of lignite that can be utilized and multiplied by the quantity of lignite extracted in that period. 144 (TRANSLATION) - 26 - 3.13.3 Resettlement costs Resettlement costs expended in each year are calculated based on the total actual resettlement costs divided by the total lignite mineable reserves over the useful lives of the power plants and multiplied by the quantity of lignite extracted during the year. The resettlement costs in areas which are not mined for lignite will be recognized as expenses in the period as incurred. 3.13.4 Mineral patent costs Mineral patent costs paid as an extra to the government are calculated by 0.1% of the total mineral value, each of them has value exceeding Baht 50 million. (Mineral fields which are less than or equivalent to value Baht 50 million are exempted from such patent costs.) Each patent is granted a period of 25 years. Mineral patent costs are recognized as deferred charges and amortized over the period of patent.

3.14 Foreign Currency Foreign currency transactions are translated into Thai Baht using the Bank of Thailand’s reference exchange rate prevailing at the transaction date. Assets and liabilities dominated in foreign currency are translated into Thai Baht using the Bank of Thailand’s reference exchange rate prevailing at the end of accounting period. Gain or loss on foreign exchange is recognized as either revenues or expenses for all amounts in that accounting period.

3.15 Employee Benefit Obligations Employee Benefit Obligations of EGAT and its subsidiaries are measured and recognized as follows: 1. Short-term employee benefits are recognized as expenses in statements of income when incurred. However, short-term employee benefits in case of leave with accumulated compensation are recognized when the services are rendered. 2. Post-employee benefits-defined contribution plans of EGAT and its subsidiaries have jointly established a provident fund which is legally separated from EGAT and its subsidiaries. The fund is monthly contributed by employees, EGAT and its subsidiaries. The contributions will not be recognized as provision liabilities but will be recognized as expenses in the statements of income when incurred. 3. Post-employee benefits-defined benefit plans are determined based on actuarial techniques, using the project unit credit method, in order to determine present value of the obligation, current service cost, past service cost, and net interest which are recognized as liabilities in the statements of financial position and expenses in the statements of income.

145 (TRANSLATION) - 27 - In case of EGAT has the differences between actual employee benefits payment and actuarial estimation, EGAT will not recognized the differences until the assumptions revision of actuarial estimation are reviewed every 3 years or whether there is any indication. Any actuarial gains and losses are recognized in other comprehensive income. 4. Other long-term employee benefits are determined based on actuarial techniques, using the project unit credit method, in order to determine present value of the obligation, current service cost, past service cost, and net interest. These are recognized as a liability in statements of financial position and expenses in the statements of income. In case of EGAT has the differences between actual employee benefits payment and actuarial estimation, EGAT will not recognized the differences until the assumptions revision of actuarial estimation are reviewed every 3 years or whether there is any indication. Any actuarial gains and losses are recognized in the statements of income immediately. Since employee benefits are expenses that will be allocated to cost of assets, liabilities, cost of electric energy sales, selling and administrative expenses and cost of sales of other goods and services according with employee’s duty, and likewise salary, wage and other benefits practices.

3.16 Provision Liabilities for Mine Reclamation EGAT recognizes provision liabilities for mine reclamation in accordance with the law after EGAT stopped lignite mining in Mae Moh District, Lampang, which will arise in the future. EGAT would estimate mine reclamation expenses based on estimation of total reclamation costs, divided by total expected quantity of extracted lignite over the mining life, multiplied by the quantity of extracted lignite for each period which the estimation of mine reclamation expenses is recognized as expenses in each reporting period.

3.17 Staff AID Fund and Provident Fund EGAT has established the Staff AID Fund to provide welfare for employees after leaving EGAT by contributing to the fund on a monthly basis at the rate of 10% of salaries of its employees being the fund’s members. Contributions are recognized as expense in EGAT’s statements of income in full amount and the accounting transactions of the fund have been consolidated in EGAT’s financial statements. On January 1, 1995, EGAT has set up the Provident Fund in accordance with the Provident Fund Act, B.E. 2530, which the Ministry of Finance prescribed the policy that the state owned enterprises contribute to the Provident Fund at the rate approved by the Ministry of Finance. The employees have the privilege to contribute to the Fund at the minimum rate of 3% of salaries but not more than the combined rate that EGAT contributes to the Fund. EGAT recognizes contributions paid to the provident fund as expenses in the reporting period. In addition, the provident fund is an entity that is legally separated from EGAT. 146 (TRANSLATION) - 28 - 3.18 Deferred Income 3.18.1 Contributions for construction In case cash contributions toward project construction are received from EGAT's parties such as independent power producers and EGAT's direct customers, these contributions will be recognized as assets and deferred contributions transferred to revenues over the period of the power purchase contracts or the useful lives of the related assets. 3.18.2 Income from donation Income from donation is assets and cash received from governments and foreign financial institutions in forms of discount of interest or grants to be used for project development of EGAT as identified by donors, is recorded as deferred income under liabilities. Deferred income is recognized as revenue over the useful lives of fixed assets. In case of cash from donation for normal operation is recognized as revenue according to actual expenditures incurred.

3.19 Revenue from Electric Energy Sales Revenue from electric energy sales is recognized according to metered delivery units at the selling point under the power purchase agreement. Revenue from automatic tariff adjustment (Ft) is recognized according to the occurred Ft revenue in that period which comprised of the actual collected Ft revenue in accordance with the approval of the Energy Regulatory Commission (ERC) and recognized the accrued or surplus Ft revenue, which came from the difference of the calculated Ft price under the formula Ft with the collected Ft price in that period. Deferred revenue for electricity compensation has been occurred from receiving fuel costs or electricity compensation from fuel suppliers or other power producers. However, such compensation has not been approved by the ERC to be included in the tariff structure. EGAT will recognized that compensation as electricity revenue in the period that the ERC has approved it.

3.20 Revenue from Sales of Other Goods and Services 3.20.1 Revenue from sales of other goods such as the revenue from fuel providing to affiliates of EGAT and revenue from sales of Hydrogen gas, distilled water, chemicals and by products from generating electricity. It is recognized as income upon the delivery of products and when the significant risks and rewards of ownership are transferred to the customers. 3.20.2 Revenue from services such as revenue from operation and maintenance services for power plants, communications system and telecommunication services are recognized as income by percentage of completion at the statements of financial position date.

147 (TRANSLATION) - 29 - 3.21 Interest Income Interest income is recognized based on proportion of time basis and effective rate of return on assets.

3.22 Finance Costs Finance costs include interest expenses, commitment charges and other expenses on long term loans. Interest expenses of long term loans for acquisition of non-current assets that are under construction are recognized as capitalized, while after the completion of construction period are recognized as expenses. Interest expenses on loans for working capital are recognized as expenses in the period they incurred.

3.23 Related Parties Related parties refer to individuals or enterprises, which directly or indirectly manage or control EGAT or are controlled by EGAT or are under common control, including subsidiaries and fellow subsidiaries. Besides, related parties refer to individuals or enterprises, including associate and shareholder which have directly or indirectly vote and significant influence to EGAT, directors, management or employees of the EGAT. In considering each possible related parties relationship, EGAT attends to the substance of the relationship and not merely the legal form.

3.24 Financial Instruments Financial assets presented in the financial statements include cash and cash equivalents, temporary investments, trade accounts receivable-others, and trade accounts receivable-related parties. Financial liabilities presented in the financial statements include trade accounts payable-others, trade accounts payable-related parties, other accounts payable and loans. The accounting policies applied to those particular items are separately disclosed in the individual policy statements associated with them. EGAT uses the financial instruments to reduce foreign currency risk and fluctuations in interest rate. The main derivative financial instruments consisted of forward foreign exchange contracts, cross currency and interest rate swap agreements and cash flow hedge. Forward foreign exchange contracts The forward foreign exchange contracts are financial instruments to protect against the risk of exchange rate fluctuations which are agreements enabling EGAT to buy a specific amount of foreign currency at a pre-agreed rate on a specified date. Accounts receivable and payable from the forward foreign exchange contracts are translated into functional currency at the exchange rate ruling on the statements of financial position date. Unrealized gain or loss on foreign currency translation will be recorded as gain or loss on changes in the fair value of derivatives in the statements of income and recognized differences that occurred in the statements of income when the forward foreign exchange contracts are due. 148

(TRANSLATION) - 30 - Cross currency and interest rate swap agreements The cross currency and interest rate swap agreements are financial instruments to protect against the risk of fluctuations in foreign exchange rate and interest rate associated with foreign currency borrowings. The swap agreements are not recognized in the financial statements at agreement date but recognized differences in the statements of income on any due date that specified in the contracts. Cash flow hedge Cash flow hedge is a hedging instrument of the exposure to variability in cash flows that is attributable to a particular risk associated with assets or liabilities. The effective gain or loss on the hedging instrument shall be recognized in other comprehensive income, and the ineffective gain or loss on the hedging instrument shall be recognized as other incomes or expenses in the statements of income.

3.25 Capital Risk Management The subsidiary’s objectives of capital management are to safeguard its ability to continue operating to provide returns for shareholders, to be beneficial for other stakeholders and to maintain proper capital structure to reduce the cost of capital.

3.26 Operating Segments Disclosure EGAT and its subsidiaries have adopted Thai Financial Reporting Standard No.8, Operating Segments. The Operating Segments Disclosure is reported on the basis of internal reports of EGAT and its subsidiaries that are received and regularly reviewed by Chief Operating Decision Maker (CODM) in order to allocate resources to the segment and assess its performance. In addition, CODM of EGAT is board of directors of EGAT. EGAT and its subsidiaries engage in the single operating segment which is generating, acquiring, transmission or distribution electric energy, including other business concerning or related to the main activities of EGAT or joint arrangements with other parties to operate such activities. Thus, overall revenues, income from operations and assets presented in the financial statements are considered as operating segment reporting.

149 (TRANSLATION) - 31 - 4. Thai Accounting Standards (TASs), Thai Financial Reporting Standards (TFRSs), Thai Standing Interpretations and Thai Financial Reporting Interpretations promulgated by the Federation of Accounting Professions (FAP) under the Royal Patronage of his Majesty the King. Effective for accounting periods beginning on or after January 1, 2017

-Thai Accounting Standard No. 1 (revised 2016) Presentation of Financial Statements

-Thai Accounting Standard No. 2 (revised 2016) Inventories

-Thai Accounting Standard No. 7 (revised 2016) Statement of Cash Flows

-Thai Accounting Standard No. 8 (revised 2016) Accounting Policies, Changes in Accounting Estimates and Errors

-Thai Accounting Standard No. 10 (revised 2016) Events after the Reporting Period

-Thai Accounting Standard No. 11 (revised 2016) Construction Contracts

-Thai Accounting Standard No. 12 (revised 2016) Income Taxes

-Thai Accounting Standard No. 16 (revised 2016) Property, Plant and Equipment

-Thai Accounting Standard No. 17 (revised 2016) Leases

-Thai Accounting Standard No. 18 (revised 2016) Revenue

-Thai Accounting Standard No. 19 (revised 2016) Employee Benefits

-Thai Accounting Standard No. 20 (revised 2016) Accounting for Government Grants and Disclosure of Government Assistance

-Thai Accounting Standard No. 21 (revised 2016) The Effects of Changes in Foreign Exchange Rates

-Thai Accounting Standard No. 23 (revised 2016) Borrowing Costs

-Thai Accounting Standard No. 24 (revised 2016) Related Party Disclosures

-Thai Accounting Standard No. 26 (revised 2016) Accounting and Reporting by Retirement Benefit Plans

-Thai Accounting Standard No. 27 (revised 2016) Separate Financial Statements

-Thai Accounting Standard No. 28 (revised 2016) Investments in Associates and Joint Ventures

-Thai Accounting Standard No. 29 (revised 2016) Financial Reporting in Hyperinflationary Economies

-Thai Accounting Standard No. 33 (revised 2016) Earnings per Share

-Thai Accounting Standard No. 34 (revised 2016) Interim Financial Reporting

-Thai Accounting Standard No. 36 (revised 2016) Impairment of Assets

-Thai Accounting Standard No. 37 (revised 2016) Provisions, Contingent Liabilities and Contingent Assets 150 (TRANSLATION) - 32 -

-Thai Accounting Standard No. 38 (revised 2016) Intangible Assets

-Thai Accounting Standard No. 40 (revised 2016) Investment Property

-Thai Accounting Standard No. 41 (revised 2016) Agriculture

-Thai Accounting Standard No. 104 (revised 2016) Accounting for Troubled Debt Restructuring

-Thai Accounting Standard No. 105 (revised 2016) Accounting for Investments in Debt and Equity Securities

-Thai Accounting Standard No. 107 (revised 2016) Financial Instruments: Disclosure and Presentation

-Thai Financial Reporting Standard No. 2 Share-based Payment (revised 2016)

-Thai Financial Reporting Standard No. 3 Business Combinations (revised 2016)

-Thai Financial Reporting Standard No. 4 Insurance contracts (revised 2016)

-Thai Financial Reporting Standard No. 5 Non-current Assets Held for Sale and (revised 2016) Discontinued Operations

-Thai Financial Reporting Standard No. 6 Exploration for and Evaluation of Mineral (revised 2016) Resources

-Thai Financial Reporting Standard No. 8 Operating Segments (revised 2016)

-Thai Financial Reporting Standard No. 10 Consolidated financial statements (revised 2016)

-Thai Financial Reporting Standard No. 11 Joint Arrangements (revised 2016)

-Thai Financial Reporting Standard No. 12 Disclosure of Interest in Other Entities (revised 2016)

-Thai Financial Reporting Standard No. 13 Fair Value Measurement (revised 2016)

-Thai Standing Interpretation No. 10 Government Assistance-No Specific Relation to (revised 2016) Operating Activities

-Thai Standing Interpretation No. 15 Operating Leases-Incentives (revised 2016)

-Thai Standing Interpretation No. 25 Income Taxes-Changes in the Tax Status of an (revised 2016) Entity or its Shareholders

-Thai Standing Interpretation No. 27 Evaluating the Substance of Transactions (revised 2016) Involving the Legal Form of a Lease

151 (TRANSLATION) - 33 -

-Thai Standing Interpretation No. 29 Service Concession Arrangements: Disclosures (revised 2016)

-Thai Standing Interpretation No. 31 Revenue-Barter Transactions Involving (revised 2016) Advertising Services

-Thai Standing Interpretation No. 32 Intangible Assets-Web Site Costs (revised 2016)

-Thai Financial Reporting Interpretation No. 1 Changes in Existing Decommissioning, (revised 2016) Restoration and Similar Liabilities

-Thai Financial Reporting Interpretation No. 4 Determining Whether an Arrangement (revised 2016) Contains a Lease

-Thai Financial Reporting Interpretation No. 5 Rights to Interests arising from (revised 2016) Decommissioning, Restoration and Environmental Rehabilitation Funds

-Thai Financial Reporting Interpretation No. 7 Applying the Restatement Approach under (revised 2016) TAS 29 (revised 2016) Financial Reporting in Hyperinflationary Economies

-Thai Financial Reporting Interpretation No. 10 Interim Financial Reporting and Impairment (revised 2016)

-Thai Financial Reporting Interpretation No. 12 Service Concession Arrangements (revised 2016)

-Thai Financial Reporting Interpretation No. 13 Customer Loyalty Programmes (revised 2016)

-Thai Financial Reporting Interpretation No. 14 TAS 19 (revised 2016)-The Limit on a Defined (revised 2016) Benefit Asset, Minimum Funding Requirements and their Interaction

-Thai Financial Reporting Interpretation No. 15 Agreements for the Construction of Real Estate (revised 2016)

-Thai Financial Reporting Interpretation No. 17 Distributions of Non-cash Assets to Owners (revised 2016)

-Thai Financial Reporting Interpretation No. 18 Transfers of Assets from Customers (revised 2016)

-Thai Financial Reporting Interpretation No. 20 Stripping Costs in the Production Phase of a (revised 2016) Surface Mine

-Thai Financial Reporting Interpretation No. 21 Levies

The management of EGAT has assessed and determined the potential impact of adopting Thai Accounting Standards (TASs), Thai Financial Reporting Standards (TFRSs), Thai Standing Interpretations and Thai Financial Reporting Interpretations and has concluded that there will have no material impact on the financial statements. 152 (TRANSLATION) - 34 - 5. The Effects of Adjustment on Financial Statements of EGAT, Subsidiaries, Associates and Joint Ventures Adjustment of financial statements and reclassification EGAT has adjusted the consolidated and separate financial statements by adjusting transactions involved in finance lease-power plants due to retrospective contract termination and retrospective error restatement in financial statements of subsidiaries’s associates. Likewise, subsidiaries had some reclassifications in accordance with items presented in financial statements for the year ended December, 2016. The Effects of consolidated and separate statements of financial position as at December 31, 2015, consolidated and separate statements of income for the year ended December 31, 2015, consolidated statements of comprehensive income for the year ended December 31, 2015 and balance brought forward of consolidated and separate statements of changes in equity for the year ended December 31, 2016 are summarized as follows: Unit : Million Baht Consolidated financial statements Before restated Restated As restated Statements of financial position as at December 31, 2015 Investments in associates 20,862.95 67.92 20,930.87 Finance lease assets-power plants 285,272.61 (200.48) 285,072.13 Current portion of finance lease liabilities -power plants 14,576.95 (15.76) 14,561.19 Finance lease liabilities-power plants 250,600.76 (225.56) 250,375.20 Retained earnings-unappropriated 256,438.98 91.54 256,530.52 Other components of equity 1,283.28 17.22 1,300.50

Statements of income for the year ended December 31, 2015 Revenues Other revenues 3,399.95 17.45 3,417.40 Share of profit from investments in associates 1,409.72 50.70 1,460.42 Expenses Cost of electric energy sales 444,390.68 9.05 444,399.73 Other expenses 12,030.60 (20.27) 12,010.33 Finance costs 31,697.89 (12.17) 31,685.72 Profit for the year Profit for the year 32,757.88 91.54 32,849.42

153 (TRANSLATION) - 35 - Unit : Million Baht Consolidated financial statements Before restated As restated and Restated Reclassified and reclassified reclassified Statements of comprehensive income for the year ended December 31, 2015 Exchange rate differences from currency translation 101.67 9.61 (85.92) 25.36 Loss on cash flow hedges (117.77) 7.61 110.16 - Share of other comprehensive income of associates that may be reclassified to profit or loss in subsequent periods 780.63 - (24.24) 756.39 Other comprehensive income (loss) for the year-net of taxes (76.87) 17.22 - (59.65)

Statements of changes in equity as at January 1, 2016 Retained earnings-unappropriated 256,438.98 91.54 - 256,530.52 Exchange rate differences from currency translation (1,034.84) 9.61 (156.35) (1,181.58) Loss on cash flow hedges (223.24) 7.61 215.63 - Share of other comprehensive income (loss) of associates 1,011.76 - (59.28) 952.48 Total equity 380,564.43 108.76 - 380,673.19

Statements of changes in equity as at January 1, 2015 Exchange rate differences from currency translation (1,129.07) - (70.43) (1,199.50) Loss on cash flow hedges (105.47) - 105.47 - Share of other comprehensive income (loss) of associates 250.86 - (35.04) 215.82

154

(TRANSLATION) - 36 - Unit : Million Baht Separate financial statements Before restated Restated As restated Statements of financial position as at December 31, 2015 Finance lease assets-power plants 285,272.61 (200.48) 285,072.13 Current portion of finance lease liabilities-power plants 17,772.50 (15.76) 17,756.74 Finance lease liabilities-power plants 275,596.01 (225.56) 275,370.45 Retained earnings-unappropriated 222,404.36 40.84 222,445.20

Statements of income for the year ended December 31, 2015 Revenues Other revenues 4,875.79 14.92 4,890.71 Expenses Cost of electric energy sales 443,972.49 9.05 443,981.54 Other expenses 11,016.18 (22.80) 10,993.38 Finance costs 35,335.58 (12.17) 35,323.41 Profit for the year Profit for the year 30,780.25 40.84 30,821.09

Statements of changes in equity as at January 1, 2016 Retained earnings-unappropriated 222,404.36 40.84 222,445.20 Total equity 309,942.30 40.84 309,983.14

155 (TRANSLATION) - 37 - 6. Supplementary Information 6.1 Cash and Cash Equivalents comprise Unit : Million Baht Consolidated financial statements Separate financial statements Dec 31, 16 Dec 31, 15 Dec 31, 16 Dec 31, 15 Cash on hand 8.15 7.92 7.69 7.21 Cash in banks current and saving accounts 37,891.67 35,984.14 31,889.80 33,795.94 Fixed deposits not more than 3 months 25,368.09 32,347.17 25,000.00 28,149.12 Treasury bills not more than 3 months - 2,979.86 - 2,979.86 Fixed deposit receipts 3,217.80 1,328.46 - - Total 66,485.71 72,647.555 56,897.49 64,932.13

6.2 Temporary Investments comprise Unit : Million Baht Consolidated financial statements Separate financial statements Dec 31, 16 Dec 31, 15 Dec 31, 16 Dec 31, 15 Fixed deposits more than 3 months but not more than 12 months 25,003.78 25,886.43 24,401.60 23,869.30 Fixed deposit receipts 8,644.87 4,038.39 4,000.00 - Debenture 23.00 60.00 - - Investments in trading securities 482.47 418.30 - - Total 34,154.12 30,403.12 28,401.60 23,869.30

156

(TRANSLATION) - 38 - 6.3 Trade Accounts Receivable-Others comprise Unit : Million Baht Consolidated financial statements Separate financial statements Dec 31, 16 Dec 31, 15 Dec 31, 16 Dec 31, 15 Receivable from electric energy sales Metropolitan Electricity Authority 23,133.11 25,992.83 23,133.11 25,992.83 Provincial Electricity Authority 27,206.71 31,115.25 27,206.71 31,115.25 Others 5,647.20 5,186.34 5,647.20 5,186.34 55,987.02 62,294.42 55,987.02 62,294.42 Services and others receivable 729.35 809.56 286.28 270.93 Total 56,716.37 63,103.98 56,273.30 62,565.35 Less : Allowance for doubtful accounts (48.35) (47.83) (48.35) (47.83) Balance 56,668.02 63,056.15 56,224.95 62,517.52

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

Unit: Million Baht Consolidated financial statements Electric Service and Total Outstanding period energy sales others Dec 31, 16 Dec 31, 15 Undue portion 51,679.05 674.94 52,353.99 60,291.46 Overdue not more than 6 months 264.14 2.20 266.34 1,781.25 Overdue more than 6 months to 1 year 1,295.94 0.32 1,296.26 0.54 Overdue more than 1 year 2,747.89 51.89 2,799.78 1,030.73 Total 55,987.02 729.35 56,716.37 63,103.98 Less : Allowance for doubtful accounts - (48.35) (48.35) (47.83) Balance 55,987.02 681.00 56,668.02 63,056.15

157

(TRANSLATION) - 39 - Unit: Million Baht Separate financial statements Electric Service and Total Outstanding period energy sales others Dec 31, 16 Dec 31, 15 Undue portion 51,679.05 233.76 51,912.81 59,760.40 Overdue not more than 6 months 264.14 1.26 265.40 1,773.68 Overdue more than 6 months to 1 year 1,295.94 0.32 1,296.26 0.54 Overdue more than 1 year 2,747.89 50.94 2,798.83 1,030.73 Total 55,987.02 286.28 56,273.30 62,565.35 Less : Allowance for doubtful accounts - (48.35) (48.35) (47.83) Balance 55,987.02 237.93 56,224.95 62,517.52

6.4 Related Parties Transactions Related parties of EGAT as at December 31, 2016 are as follows:

Company Country of Relationship Incorporation/ Nationality EGAT International Co., Ltd. Thailand Subsidiary, EGAT has 100% shareholding EGAT Diamond Service Co., Ltd. Thailand Subsidiary, EGAT has 45% shareholding Ratchaburi Electricity Generating Holding Pcl. Thailand Subsidiary, EGAT has 45% shareholding District Cooling System and Power Plant Thailand Joint venture of EGAT, EGAT has 35% shareholding Co., Ltd. Electricity Generating Pcl. Thailand Associate, EGAT has 25.41% shareholding Ratchaburi Electricity Generating Co., Ltd. Thailand Subsidiary of Ratchaburi Electricity Generating Holding Pcl. Ratchaburi Energy Co., Ltd. Thailand Subsidiary of Ratchaburi Electricity Generating Holding Pcl. RATCH-Lao Services Co., Ltd. Lao PDR Subsidiary of Ratchaburi Electricity Generating Holding Pcl. RH International Corporation Ltd. Thailand Subsidiary of Ratchaburi Electricity Generating Holding Pcl. RATCH O&M Co., Ltd. Thailand Subsidiary of Ratchaburi Electricity Generating Holding Pcl. Tri Energy Co., Ltd. Thailand Subsidiary of Ratchaburi Electricity Generating Holding Pcl. (In process of liquidation) Ratchaburi Alliances Co.,Ltd. Thailand Subsidiary of Ratchaburi Electricity Generating Holding Pcl. Khanom Electricity Generating Co., Ltd. Thailand Related party of EGAT EGCO Engineering and Services Co., Ltd. Thailand Related party of EGAT Gulf Electric Pcl. Thailand Related party of EGAT BLCP Power Co., Ltd. Thailand Related party of EGAT 158

(TRANSLATION) - 40 - Company Country of Relationship Incorporation/ Nationality Hongsa Power Co., Ltd. Lao PDR Related party of EGAT Phu Fai Mining Co., Ltd. Lao PDR Related party of EGAT Ratchaburi Power Co., Ltd. Thailand Related party of EGAT Nava Nakorn Electricity Generating Co., Ltd. Thailand Related party of EGAT RH International (Mauritius) Corporation Ltd. Mauritius Related party of EGAT RH International (Singapore) Corporation Ltd. Singapore Related party of EGAT RATCH China Power Co., Ltd. Hong Kong Related party of EGAT RATCH-Australia Corporation Ltd. Australia Related party of EGAT Mount Emerald Wind Farm Pty Ltd. Australia Related party of EGAT Nam Ngiep1 Power Co., Ltd. Lao PDR Related party of EGAT PT Adaro Indonesia Indonesia Related party of EGAT

Related Parties Transactions the details are as follows:

6.4.1 Trade accounts receivable-related parties comprise Unit : Million Baht Consolidated financial statements Separate financial statements Dec 31, 16 Dec 31, 15 Dec 31, 16 Dec 31, 15 Subsidiaries - - 321.55 496.30 Joint venture 15.68 7.05 15.68 7.05 Other related parties 31.63 1,800.45 31.63 1,800.45 Total trade accounts receivable-related parties 47.31 1,807.50 368.86 2,303.80

Trade accounts receivable-related parties can be analyzed by categories and aging schedule as follows: Unit : Million Baht Consolidated financial statements Separate financial statements Outstanding period Dec 31, 16 Dec 31, 15 Dec 31, 16 Dec 31, 15 Undue portion 47.31 1,807.44 368.86 2,291.84 Overdue not more than 6 months - 0.06 - 11.96 Total trade accounts receivable-related parties 47.31 1,807.50 368.86 2,303.80

159

(TRANSLATION) - 41 - 6.4.2 Long-term loans to related parties Long-term loans to related parties in consolidated financial statements are the transactions of the group of EGAT’s subsidiaries comprise of: Unit : Million Baht Consolidated financial statements Dec 31, 16 Dec 31, 15 Long-term loans to related parties 46.95 47.29 Total 46.95 47.29

6.4.3 Trade accounts payable-related parties comprise Unit : Million Baht Consolidated financial statements Separate financial statements Dec 31, 16 Dec 31, 15 Dec 31, 16 Dec 31, 15 Subsidiaries - - 7,209.08 8,274.11 Joint venture 123.29 134.66 123.29 134.66 Other related parties 11,626.56 8,150.92 11,626.56 8,150.92 Total trade accounts payable -related parties 11,749.85 8,285.58 18,958.93 16,559.69

6.4.4 Long-term loans from related parties Long-term loans from related parties in consolidated financial statements are the transactions of the group of EGAT’s subsidiaries comprise of:

Unit : Million Baht Consolidated financial statements Dec 31, 16 Dec 31, 15 Long-term loans from related parties 1,029.09 1,071.60 Total 1,029.09 1,071.60

160 (TRANSLATION) - 42 - 6.4.5 Revenues and expenses-related parties comprise Unit : Million Baht Consolidated financial statements Separate financial statements 2016 2015 2016 2015 Revenues Revenue from electric energy sales Subsidiary - - 193.34 203.39 Associate - 0.05 - 0.05 Other related parties 209.97 377.45 209.97 377.45 Revenue from sales of other goods and services Subsidiaries - - 1,284.93 2,594.24 Associate 2.39 0.28 2.39 0.28 Joint venture 90.44 96.84 90.44 96.84 Other related parties 5,091.81 12,768.41 5,091.81 12,768.41 Expenses Cost of electric energy sales Subsidiary - - 2.02 18.56 Joint venture 825.02 1,101.43 825.02 1,011.43 Other related party 17.06 388.83 17.06 388.83

Cost of sales of other goods and services Subsidiaries - - 901.80 2,050.38 Associate 0.23 0.12 0.23 0.12 Joint venture 87.59 101.51 87.59 101.51 Other related parties 4,579.27 12,238.44 4,579.27 12,238.44

6.4.6 Executives’ remunerations For the year ended December 31, 2016, Executives’ remunerations are as follows: Unit : Million Baht Consolidated financial statements Separate financial statements 2016 2015 2016 2015 Directors’ remunerations Meeting remuneration and bonuses 46.20 42.58 10.31 8.78 46.20 42.58 10.31 8.78

161 (TRANSLATION) - 43 - Unit : Million Baht Consolidated financial statements Separate financial statements 2016 2015 2016 2015 Management’s remunerations Salaries, bonuses and other short-term

employee benefits 290.38 286.33 134.24 135.22 Post-employee benefit and other long-term

employee benefits 19.82 20.04 3.83 4.40 310.20 306.37 138.07 139.62 Total 356.40 348.95 148.38 148.40

6.5 Accrued / Surplus Revenue from Electric Energy Sales according to Automatic Tariff Adjustment (Ft) and Deferred Revenue for Electricity Compensation As at January 1, 2016, EGAT has the surplus revenue from electric energy sales according to automatic tariff adjustment (Ft) in the amount of Baht 7,022.82 million. As at January 13, 2016, Energy Regulatory Commission (ERC) has approved the Ft of wholesale for January - April 2016, which was equivalent to -4.78 satang per unit for MEA and -6.15 satang per unit for PEA. As at May 11, 2016, ERC has approved the Ft of wholesale for May - August 2016, which was equivalent to -32.39 satang per unit for MEA and -30.71 satang per unit for PEA. As at September 7, 2016, ERC has approved the Ft of wholesale for September - December 2016, which was equivalent to -32.25 satang per unit for MEA and -38.85 satang per unit for PEA. However, the actual cost of purchasing fuel and electricity in such period are lower than the estimated Ft calculating formula, so that as of December 31, 2016, EGAT had surplus Ft revenue in the amount of Baht 14,525.61 million.

As at January 1, 2016 and December 31, 2016, EGAT recorded deferred revenue for electricity compensation in the amount of Baht 7,552.73 million and Baht 7,991.25 million respectively. Deferred revenue for electricity compensation increased by Baht 438.52 million due to the fact that EGAT received more compensation for the fuel or electricity from fuel suppliers or other electricity producers. Since 2015, the Energy Regulatory Commission (ERC) has made the approval in the meeting 67/2558 (No.377) that deferred revenue for electricity compensation will be presented in non-current liabilities which the deposit for Ft management will be separately presented from cash and cash equivalents. This deposit account is placed restriction that EGAT is not allowed to use for other purposes.

162

(TRANSLATION) - 44 - 6.6 Other Accounts Receivable comprise Unit : Million Baht Consolidated financial statements Separate financial statements Dec 31, 16 Dec 31, 15 Dec 31, 16 Dec 31, 15 Employee accounts receivable 328.94 121.40 323.40 114.83 Other accounts receivable 197.83 726.33 168.98 312.43 Less : Allowance for doubtful accounts (11.38) (11.73) (11.38) (11.73) Total 515.39 836.00 481.00 415.53 Advances and Prepaid 3,920.82 5,121.33 3,766.95 4,993.32 Accrued revenues 553.98 418.11 114.82 196.35 Input tax 3,575.14 3,814.71 3,575.14 3,814.71 Balance 8,565.33 10,190.15 7,937.91 9,419.91 6.7 Materials and Supplies comprise Unit : Million Baht Consolidated financial statements Separate financial statements Dec 31, 16 Dec 31, 15 Dec 31, 16 Dec 31, 15 Fuel oil for power plant 5,093.58 4,838.48 3,946.48 3,761.77 Lignite stock 1,645.41 1,946.72 1,645.41 1,946.72 Spare parts, other materials and supplies 12,084.01 11,893.96 10,136.23 9,874.42 Less : Allowance for obsolescence (6,835.64) (6,586.67) (5,841.26) (5,441.12) Balance 11,987.36 12,092.49 9,886.86 10,141.79

6.8 Other Current Assets comprise Unit : Million Baht Consolidated financial statements Separate financial statements Dec 31, 16 Dec 31, 15 Dec 31, 16 Dec 31, 15 Pledged bank deposits 1,128.21 1,731.62 - - Others 134.90 57.51 43.56 - Balance 1,263.11 1,789.13 43.56 - EGAT’s subsidiary had pledged bank deposits amount to USD 31.64 million or approximately amount to Baht 1,128.21 million to pledge outstanding investment for Nam Ngiep 1 Power Co., Ltd.

163

(TRANSLATION) - 45 - 6.9 Investment in Subsidiaries, Associates and Joint Ventures 6.9.1 Details of subsidiaries, associate and joint venture of EGAT Company Country of Business Shareholding (%) incorporation/ Dec 31, 16 Dec 31, 15 Nationality Subsidiaries EGAT International Co., Ltd. Thailand Investing in electricity generation and 100 100 related businesses in foreign countries EGAT Diamond Service Co., Ltd. Thailand Gas turbine maintenance including 45 45 components and spare parts Ratchaburi Electricity Generating Holding Pcl. Thailand Investing in companies with the purpose 45 45 of electricity generation and supply

Associate Electricity Generating Pcl. Thailand Generation and supply of electricity 25.41 25.41

Joint venture District Cooling System and Power Plant Thailand Generation and supply of electricity and 35 35 Co., Ltd. chilled water

6.9.2 Details of subsidiaries, associates and joint ventures of subsidiaries Company Country of Business Shareholding (%) incorporation/ Dec 31, 16 Dec 31, 15 Nationality Direct subsidiaries of subsidiary : Ratchaburi Electricity Generating Holding Pcl. Ratchaburi Electricity Generating Co., Ltd. Thailand Generation and supply of electricity 100 100 and investment in electricity business Ratchaburi Energy Co., Ltd. Thailand Power plant development and operation 100 100 and investment in electricity business RATCH-Lao Services Co., Ltd. Lao PDR Operation and maintenance services 100 100 RH International Corporation Ltd. Thailand Investment in electricity business 100 100 RATCH O&M Co., Ltd. Thailand Operation and maintenance services 100 100 Tri Energy Co., Ltd. Thailand Generation and supply of electricity 100 100 (In process of liquidation) Ratchaburi Alliances Co., Ltd. Thailand Investment in electricity business 100 100 164

(TRANSLATION) - 46 - Company Country of Business Shareholding (%) incorporation/ Dec 31, 16 Dec 31, 15 Nationality Indirect subsidiaries of subsidiary : Ratchaburi Electricity Generating Holding Pcl. RH International (Mauritius) Mauritius Investment in electricity business 100 100 Corporation Ltd. in foreign country RH International (Singapore) Singapore Investment in electricity business 100 100 Corporation Ltd. in foreign country RATCH-Australia Corporation Ltd. Australia Power plant development and operation 80 80 and its subsidiaries and investment in electricity business RATCH China Power Co., Ltd. Hong Kong Investment in electricity business 100 100 in foreign country RE Solar 1 Co., Ltd. Thailand Generation and supply of electricity 100 100 CN Biomass Co., Ltd. Thailand Generation and supply of electricity 100 - PB Biomass Co., Ltd. Thailand Generation and supply of electricity 100 - LP Biomass Co., Ltd. Thailand Generation and supply of electricity 100 -

Associated company of subsidiary: EGAT International Co., Ltd. Nam Ngiep1 Power Co., Ltd. Lao PDR Generation and supply of electricity 30 30 PT Adaro Indonesia Indonesia Generation and supply of coal 11.53 -

Associates of subsidiary: Ratchaburi Electricity Generating Holding Pcl. First Korat Wind Co., Ltd. Thailand Generation and supply of electricity 20 20 K.R. Two Co., Ltd. Thailand Generation and supply of electricity 20 20 Perth Power Partnership (Kwinana) Australia Generation and supply of electricity 24 24

165

(TRANSLATION) - 47 - Company Country of Business Shareholding (%) incorporation/ Dec 31, 16 Dec 31, 15 Nationality Joint ventures of subsidiary: Ratchaburi Electricity Generating Holding Pcl. Chubu Ratchaburi Electric Services Co., Ltd. Thailand Operation and maintenance services 50 50 South East Asia Energy Ltd. and subsidiary Thailand Investment in electricity business 33.33 33.33 Nam Ngum 3 Power Co., Ltd. Lao PDR Generation and supply of electricity 25 25 Xe-Pian Xe-Namnoy Power Co., Ltd. Lao PDR Generation and supply of electricity 25 25 KK Power Co., Ltd. Cambodia Generation and supply of electricity 50 50 Ratchaburi Power Co., Ltd. Thailand Generation and supply of electricity 25 25 Nava Nakorn Electricity Generating Co., Ltd. Thailand Generation and supply of electricity and steam 40 40 Ratchaburi World Cogeneration Co., Ltd. Thailand Generation and supply of electricity and steam 40 40 Solarta Co., Ltd. Thailand Generation and supply of electricity 49 49 Solar Power (Korat 3) Co., Ltd. Thailand Generation and supply of electricity 40 40 Solar Power (Korat 4) Co., Ltd. Thailand Generation and supply of electricity 40 40 Solar Power (Korat 7) Co., Ltd. Thailand Generation and supply of electricity 40 40 Songkhla Biomass Co., Ltd. Thailand Generation and supply of electricity 40 40 Songkhla Biofuel Co., Ltd. Thailand Supply the biomass fuel 40 40 Oversea Green Energy Co., Ltd. Thailand Power plant management services 60 60 Berkprai Cogeneration Co., Ltd. Thailand Generation and supply of electricity and steam 35 35 Hongsa Power Co., Ltd. Lao PDR Generation and supply of electricity 40 40 Phu Fai Mining Co., Ltd. Lao PDR Generation and supply of coal 37.50 37.50 RICI International Investment Pte. Ltd. Singapore Investment in electricity business 60 60 in foreign country

166

(TRANSLATION) - 48 - 6.9.3 Investments in associates and joint ventures in the consolidated financial statements Unit : Million Baht Shareholding (%) Cost Method Equity Method Dividend Company Dec 31, 16 Dec 31, 15 Dec 31, 16 Dec 31, 15 Dec 31, 16 Dec 31, 15 Dec 31, 16 Dec 31, 15 Associates Electricity Generating Pcl. 25.41 25.41 1,587.55 1,587.55 20,186.31 18,670.03 869.53 836.08 Nam Ngiep 1 Power Co., Ltd. 30 30 1,557.25 966.76 1,212.15 749.73 - - PT Adaro Indonesia 11.53 - 5,829.86 - 5,570.26 - 403.13 - First Korat Wind Co., Ltd. 20 20 399.20 399.20 563.97 518.31 80.00 122.00 K.R. Two Co., Ltd. 20 20 365.40 365.40 458.38 418.83 63.00 104.00 Perth Power Partnership 24 24 618.53 618.53 539.22 573.97 124.20 118.10 (Kwinana) Total Associates 10,357.79 3,937.44 28,530.29 20,930.87 1,539.86 1,180.18 Joint ventures District Cooling System and Power Plant Co., Ltd. 35 35 584.50 584.50 799.50 706.73 15.40 15.36 Chubu Ratchaburi Electric � Services Co., Ltd. 50 50 10.00 10.00 83.21 88.54 48.00 - South East Asia Energy Ltd. and its subsidiary 33.33 33.33 2,202.25 2,202.25 2,627.14 3,057.12 603.41 79.28 Nam Ngum 3 Power Co., Ltd. 25 25 0.45 0.45 - - - - Xe-Pian Xe-Namnoy � Power Co., Ltd. 25 25 1,415.99 934.22 1,653.05 1,101.57 - - KK Power Co., Ltd. 50 50 15.44 15.44 - - - - Ratchaburi Power Co., Ltd. 25 25 1,831.25 1,831.25 3,827.00 4,068.13 700.00 480.00 Nava Nakorn Electricity� Generating Co., Ltd. 40 40 610.00 400.80 622.31 353.84 - - Ratchaburi World � Cogeneration Co., Ltd. 40 40 1,000.00 1,000.00 1,149.33 1,162.01 244.00 - Solarta Co., Ltd. 49 49 545.96 545.96 1,025.65 929.35 81.40 51.74 Solar Power (Korat 3) Co., Ltd. 40 40 75.50 75.50 116.71 99.62 10.27 33.83 Solar Power (Korat 4) Co., Ltd. 40 40 79.70 79.70 117.16 97.90 6.29 33.55 Solar Power (Korat 7) Co., Ltd. 40 40 75.50 75.50 112.25 93.65 8.91 34.49 Songkhla Biomass Co., Ltd. 40 40 98.40 98.40 124.18 76.24 - - Songkhla Biofuel Co., Ltd. 40 40 0.40 0.40 0.37 0.37 - - Oversea Green Energy Co., Ltd. 60 60 9.60 9.60 12.23 8.37 - - Berkprai Cogeneration Co., Ltd. 35 35 116.46 8.75 114.65 8.55 - - Hongsa Power Co., Ltd. 40 40 12,929.89 6,019.82 11,835.32 4,561.57 1,165.21 - Phu Fai Mining Co., Ltd. 37.50 37.50 0.63 0.63 134.90 26.44 - - RICI International Investment Pte. Ltd. 60 60 306.57 306.57 312.27 315.33 - - Total Joint Ventures 21,908.49 14,199.74 24,667.23 16,755.33 2,882.89 728.25 Grand Total 32,266.28 18,137.18 53,197.52 37,686.20 4,422.75 1,908.43

167

(TRANSLATION) - 49 - During the year 2016, subsidiaries of EGAT has paid up the increased share capital of Nam Ngiep 1 Power Co., Ltd., Hongsa Power Co., Ltd., Nava Nakorn Electricity Generating Co., Ltd. Xe-Pian Xe-Namnoy Power Co., Ltd. and Berkprai Cogeneration Co., Ltd. and has invested in PT Adaro Indonesia which is an associate of subsidiary of EGAT.

6.9.4 Investments in subsidiaries, associate and joint venture in the separate financial statements

Unit : Million Baht Shareholding (%) Cost Method Dividend Company Dec 31, 16 Dec 31, 15 Dec 31, 16 Dec 31, 15 Dec 31, 16 Dec 31, 15 Subsidiaries EGAT International Co., Ltd. 100 100 12,095.50 6,108.00 - - EGAT Diamond Service Co., Ltd. 45 45 280.35 280.35 - - Ratchaburi Electricity Generating Holding Pcl. 45 45 6,525.00 6,525.00 1,481.18 1,481.18 Total Subsidiaries 18,900.85 12,913.35 1,481.18 1,481.18

Associate Electricity Generating Pcl. 25.41 25.41 1,587.55 1,587.55 869.52 836.08 Total Associate 1,587.55 1,587.55 869.52 836.08

Joint venture District Cooling System and Power Plant Co., Ltd. 35 35 584.50 584.50 15.40 15.36 Total Joint Venture 584.50 584.50 15.40 15.36 Grand Total 21,072.90 15,085.40 2,366.10 2,332.62

168

(TRANSLATION) - 50 - 6.9.5 Movements in investments in the consolidated financial statements and the separate financial statements 6.9.5.1 Movements in investments in associates and joint ventures accounted under the equity method in the consolidated financial statements Unit : Million Baht Dec 31, 16 Dec 31, 15 Balance at the beginning 37,686.20 30,440.24 Share of profit from investments-equity method 5,452.15 2,364.98 Retained earnings-legal reserve 4.37 4.37 Additional payment of share capital in joint ventures 7,708.75 6,132.61 Additional payment of share capital in associates 6,420.34 40.60 Sale of investments in joint ventures - (13.97) Available-for-sale investments 13.48 51.37 Currency translation differences of the company settled in foreign country (101.26) 859.16 Gain (Loss) from cash flow hedge 46.69 (98.67) Actuarial loss (6.78) (18.78) Capital surplus of associates accounted under the equity method - (55.57) Dividend received (4,422.75) (1,908.43) Exchange rate adjustment 396.33 92.45 Others - (204.16) Balance at the end 53,197.52 37,686.20

6.9.5.2 Movements in investments in subsidiaries, associate and joint venture accounted for under the cost method in the separate financial statements

Unit : Million Baht Dec 31, 16 Dec 31, 15 Balance at the beginning 15,085.40 13,339.40 Additional investments 5,987.50 1,746.00 Balance at the end 21,072.90 15,085.40

169

(TRANSLATION) - 51 - 6.9.6 Financial information of subsidiaries that have material non-controlling interests, associate and joint venture 6.9.6.1 Financial information of subsidiaries that have material non-controlling interests are as follow: Country of Non-controlling interests Company incorporation/ Shareholding (%) Nationality 2016 2015 EGAT Diamond Service Co., Ltd. (EDS) Thailand 55 55 Ratchaburi Electricity Generating Holding Pcl. (RATCH) Thailand 55 55

Financial information of subsidiaries that have material non-controlling interests after accounting policy adjustment, before eliminations:

Summary of financial position as at December 31, 2016 and 2015 Unit : Million Baht 2016 2015 EDS RATCH EDS RATCH Current assets 190.63 26,303.02 112.63 25,983.50 Non-current assets 375.65 70,088.07 409.23 66,621.56 Current liabilities (53.51) (10,945.81) (50.34) (11,658.07) Non-current liabilities (12.54) (22,992.51) (41.74) (20,527.15) Net assets 500.23 62,452.77 429.78 60,419.84 Owners of EGAT 225.10 28,103.75 193.40 27,188.93 Non-controlling interests 275.13 34,349.02 236.38 33,230.91

170 (TRANSLATION) - 52 - Summary of comprehensive income or loss for the years ended December 31, 2016 and 2015 Unit : Million Baht 2016 2015 EDS RATCH EDS RATCH Revenues 247.33 51,437.54 172.69 59,326.28 Expenses (176.88) (44,501.75) (175.20) (54,903.64) Profit (loss) before income taxes 70.45 6,935.79 (2.51) 4,422.64 Income taxes - (863.24) - (1,407.72) Net profit (loss) 70.45 6,072.55 (2.51) 3,014.92 Other comprehensive income (loss) - (748.12) 1.58 (502.98) Total comprehensive income (loss) 70.45 5,324.43 (0.93) 2,511.94 Owners of EGAT 31.70 2,395.99 (0.42) 1,130.37 Non-controlling interests 38.75 2,928.44 (0.51) 1,381.57 Dividend paid to Non- controlling interests - 1,810.33 - 1,810.33

Summary of cash flows for the years ended December 31, 2016 and 2015 Unit : Million Baht 2016 2015 EDS RATCH EDS RATCH Operating activities 92.61 8,706.42 42.55 9,256.17 Investing activities (2.60) (4,978.96) (6.91) (6,248.03) Financing activities (32.64) (1,417.27) (34.17) (6,740.69) Others - (355.50) - 574.02 Net increase (decrease) in cash and cash equivalents 57.37 1,954.69 1.47 (3,158.53)

6.9.6.2 Financial information of the associate of EGAT, after accounting policy adjustment is as follows: Summary of financial position as at December 31, 2016 and 2015 - Electricity Generating Pcl. Unit : Million Baht 2016 2015 Current assets 19,998.04 19,403.18 Non-current assets 176,881.41 159,806.09 Current liabilities (13,393.39) (15,918.94) Non-current liabilities (103,418.14) (88,217.35) Net assets 80,067.92 75,072.98 171

(TRANSLATION) - 53 - Summary of profit or loss for the years ended December 31, 2016 and 2015 - Electricity Generating Pcl. Unit : Million Baht 2016 2015 Revenues* 31,050.47 25,992.25 Expenses (21,581.47) (19,791.94) Profit (loss) before income taxes 9,469.00 6,200.31 Income taxes (1,040.21) (750.40) Net profit (loss) 8,428.79 5,449.91 * Including gain (loss) on foreign exchange rate

6.9.6.3 Financial information of the joint venture of EGAT, after accounting policy adjustment is as follows: Summary of financial position as at December 31, 2016 and 2015 - District Cooling System and Power Plant Co., Ltd. Unit : Million Baht 2016 2015 Current assets 1,089.52 1,010.73 Non-current assets 2,639.35 2,924.31 Current liabilities (606.28) (699.94) Non-current liabilities (822.32) (1,195.88) Net assets 2,300.27 2,039.22

Summary of profit or loss for the years ended December 31, 2016 and 2015 - District Cooling System and Power Plant Co., Ltd. Unit : Million Baht 2016 2015 Revenues* 2,625.71 2,918.15 Expenses (2,247.06) (2,639.05) Profit (loss) before income taxes 378.65 279.10 Income taxes (73.95) (60.30) Net profit (loss) 304.70 218.80 * Including gain (loss) on foreign exchange rate

172

(TRANSLATION) - 54 - 6.10 Finance Leases Assets-Power Plants Unit : Million Baht Consolidated financial statements Separate financial statements Cost as at Jan 1, 16 396,667.67 396,667.67 Increase during the year 65,289.61 65,289.61 Decrease during the year (15,882.28) (15,882.28) Cost as at Dec 31, 16 446,075.00 446,075.00

Accumulated depreciation as at Jan 1, 16 (111,595.54) (111,595.54) Depreciation for the year (17,704.75) (17,704.75) Decrease during the year 15,882.28 15,882.28 Accumulated depreciation as at Dec 31, 16 (113,418.01) (113,418.01)

Net book value As at Dec 31, 15 285,072.13 285,072.13 As at Dec 31, 16 332,656.99 332,656.99

173

0.83

(7.53)

175.78

(344.04)

7,359.89 6,089.09

(6,266.02) (1,035.20) (1,035.20) Total 22,651.15

(26,414.35) 644,161.60 667,555.05 273,251.44 276,496.24

(369,874.96) (390,023.61)

Unit : Million Baht ------

6,734.84 1,865.04 6,593.24 2,006.64 3,769.15 3,806.37

(2,006.64) (2,965.69) (1,827.82) (2,786.87)

Deferred

inspection fee charges of major - -

0.55 0.04 0.83

(0.08) (7.53)

713.20 553.79

(561.93) (799.53) 3,232.30 3,131.64

(8,062.11) (8,306.98) Others 11,294.41 11,438.62

- - - - -

0.29

(0.26)

545.44 147.86 543.20 859.55 (150.18) (226.80)

3,014.07 3,409.62 (2,470.87) (2,550.07)

Vehicles

------

42.85 42.85 (42.85) (42.85)

for mine

equipment spare parts Large-sized

- - - - - 0.26

(0.29) 382.39 387.24

(387.29) (307.26)

6,823.11 6,817.92 1,424.59 1,499.64

(5,398.52) (5,318.28)

Machinery ------

1.25 (6.72)

841.09

(143.63)

Coal 6,484.01 7,318.38 1,681.14 2,373.13

system (4,802.87) (4,945.25)

handling

------

10.05

248.37 119.51 997.50 999.31

(123.59) (252.53)

7,006.05 7,140.88

(6,008.55) (6,141.57) system

Communication

------

Consolidated financial statements Consolidated financial 55 173.73 549.58

(659.84)

- (6,091.85)

system 11,189.93 85,182.29 90,343.84

(86,767.03) (92,309.30)

171,949.32 182,653.14

Transmission (TRANSLATION) ------

7.78 7.10 (7.91)

84.47 (31.38)

856.43 856.30 108.88 (747.55) (771.83)

system Control

------

32.21 357.61

(357.61)

1,047.86 9,780.64

(3,343.03) plants

36,722.49 37,444.95 12,043.60

(24,678.89) (27,664.31)

for power Equipment

12.00

(11.56)

217.36 174.94

(339.10)

6,171.87 1,776.33

(1,805.85) (1,034.02) (1,034.02)

(11,691.85) 322,906.56 327,162.84 124,831.07 119,335.21

(197,041.47) (206,793.61) Power plants

------

174.87 (472.97)

29,367.14 29,542.01 18,345.18 18,047.08 (11,021.96) (11,494.93)

and dams Reservoirs

0.80

(1.53) (1.18) (1.18) 60.51 11.56

(12.00) 182.18 (198.46)

comprise

2,119.44 (1,225.70)

31,182.33 33,150.29 11,314.55 12,251.35 (19,866.60) (20,897.76)

Structures

------

(3.33)

Land 9,777.99 4,209.35 9,777.99

13,984.01 13,984.01

construction currency translation as at Jan 16 1, currency translation at Decas 31, 16 As at Jan 16 1, at DecAs 31, 16 at DecAs 31, 15 at DecAs 31, 16 11 Property, Plant and Equipment Cost as at Jan 16 1, Increase during the year under work from Transferred Exchange rate differencesfrom Reclassification Disposal / write-off at Decas Cost 31, 16 Accumulated depreciation/ Amortization Depreciation/Amortization the for year Exchange rate differencesfrom Reclassification Disposal / write-off Accumulated depreciation/ Amortization Accumulated impairment Net book value 6. 174 0.83

(7.53)

(15.33) (15.33)

7,125.25 6,070.45

(6,246.66) 22,511.14

Total

(25,383.67) 618,006.82 641,389.02 259,366.26 263,436.07

(358,625.23) (377,937.62)

Unit : Million Baht - - - - -

not be be not

6,734.84 1,865.04 6,593.24 2,006.64 3,769.15 3,806.37 (2,006.64) (2,965.69) (1,827.82) (2,786.87)

Deferred

inspection fee charges of major - - -

0.83 (7.53)

699.36 541.28

(548.80) (713.84)

3,019.54 2,990.84

Others (7,651.82) (7,823.55)

10,671.36 10,814.39

- - -

0.29 (0.26)

545.44 144.52 542.08 858.96

(146.74) (226.37)

2,989.79 3,388.78

(2,447.71) (2,529.82)

Vehicles

------

42.85 42.85

(42.85) (42.85)

for mine

equipment spare parts Large-sized - - -

0.26

(0.29)

382.39 387.24

(387.29) (287.67)

6,628.09 6,622.90 1,280.65 1,375.29

(5,347.44) (5,247.61)

Machinery

respectively. - - - - -

Baht 467.36 million and Baht 52.99 million, accumulated 1.25

(6.72)

841.09

(143.63)

6,484.01 7,318.38 1,681.14 2,373.13

Coal (4,802.87) (4,945.25)

system handling

- - - -

10.05

248.37 119.51 997.50 999.31

(123.59) (252.53)

7,006.05 7,140.88

(6,008.55) (6,141.57)

(other than power plants), which the ownership of such assets will will assets such of ownership the which plants), power than (other system Communication

Separate statements financial - - - -

173.73 549.58

(659.84) - (6,091.85) 11,189.93 85,182.29 90,343.84

system

(86,767.03) (92,309.30) 171,949.32 182,653.14

56

- Transmission e cost value of these assets was assets these of value e cost - - - - -

(TRANSLATION) 7.78 7.10

(7.91) 84.47

(31.38) 856.43 856.30 108.88

(747.55) (771.83)

system Control

Baht 396.54 million and Baht 50.45 million

as - - - -

32.21

357.61

(357.61)

1,047.86 9,780.64

(3,343.03)

plants 36,722.49 37,444.95 12,043.60

(24,678.89) (27,664.31) for power Equipment

-

12.00

(11.56) (15.33) (15.33)

6,033.40 1,773.54

(1,803.06)

(10,802.85)

299,703.90 303,946.24 113,247.29 108,448.76

(186,441.28) (195,482.15)

Power plants

, and net book value w ------

174.87

(472.97)

29,367.14 29,542.01 18,345.18 18,047.08

(11,021.96) (11,494.93)

and dams Reservoirs

- - 57.07 11.56

(12.00) 182.18

(198.46)

2,118.45

(1,189.73) 30,476.98 32,442.04 10,775.39 11,744.46

(19,701.59) (20,697.58)

Structures

------

Land 8,373.57 4,209.35 8,373.57

12,582.92 12,582.92

Baht70.82Baht millionand 2.54 million EGAT’s property, plant and equipment has included other asset financial lease agreements agreements lease financial asset other included has equipment and plant property, EGAT’s

construction as at Jan 16 1, at Decas 31, 16 As at Jan 16 1, at DecAs 31, 16 at DecAs 31, 15 at DecAs 31, 16 Cost as at Jan 16 1, Increase during the year under work from Transferred Reclassification Disposal / write-off at Decas Cost 31, 16 Accumulated depreciation/ Amortization Depreciation/Amortization the for year Reclassification Disposal / write-off Accumulated depreciation/ Amortization Accumulated impairment Net book value

transferred to EGAT at the end of the lease periods. As at Dec 31, 2016 andperiods. Dec 31, 2015 th lease the of end the at EGAT to transferred depreciation was

175

(TRANSLATION) - 57 - As at December 31, 2016 and 2015, EGAT had buildings and equipment fully accumulated depreciation, while being in use. The cost value of these assets before deduction of accumulated depreciation was Baht 144,436.96 million and Baht 120,925.48 million respectively, which comprise Unit : Million Baht Separate financial statements Dec 31, 16 Dec 31, 15 Structures 10,664.18 10,009.78 Reservoirs and dams 17.50 15.50 Power Plants 78,505.40 63,830.53 Equipment for power plants 15,549.15 10,743.48 Control system 460.46 459.85 Transmission system 19,958.67 17,357.33 Communication system 4,815.37 4,778.90 Coal handling system 3,794.71 3,260.52 Machinery 3,665.18 3,685.42 Large-sized spare parts for mine equipment 42.85 42.85 Vehicles 1,812.36 1,886.62 Others 5,151.13 4,854.70 Total 144,436.96 120,925.48

On February 29, 2016, Board of directors of EGAT approved to sell Nong Jok power plant - unit 2 and 3 with some equipments of Lankrabue power plant - unit 11 which were sent to Japan for alleviating the electricity shortage during the summer of 2011 due to a natural disaster Tsunami. The cost value of the power plants and the equipments was Baht 1,924.34 million and Baht 61.06 million respectively. They had fully accumulated depreciation, so the remaining net book value was Baht 47 and Baht 2, respectively and EGAT have already written-off these assets from the account. 176

(16.96)

(1,909.24) (1,909.24) Total Total

35,674.13 68,127.54 59,565.52 35,671.21 66,852.76 58,444.79

(22,668.74) (19,641.21) (22,528.73) (19,641.21)

103,801.67 102,523.97

Unit : Million Unit : Million Baht Unit : Million Baht

- - - 3,596.60 5,397.48 3,596.60 5,397.48

(1,909.24) (1,909.24) 20,679.36 24,275.96 20,679.36 24,275.96

(16,969.24) (16,969.24)

Materials in Materials in transportation transportation - - -

(9.80) (9.80)

capitalized to cost of assets, assets, of cost to capitalized 1,911.17 4,515.24 6,426.41 3,744.64 1,911.17 4,515.24 6,426.41 3,744.64

(2,671.97) (2,671.97)

work under work under

Materials for Materials for construction of construction of were transmission system transmission system transmission ------

3.22 3.22

18.67 21.89 21.89 18.67 21.89 21.89

and and Research Research

development development - - - - -

15.90 24.20 40.10 22.51 15.90 24.20 40.10 22.51

(17.59) (17.59)

Software Software Computer Computer

- - - - -

452.96 420.76 452.96 420.76

fee fee 1,832.84 2,285.80 1,832.84 2,285.80

(1,865.04) (1,865.04) Major Major Major

inspection inspection

------

2.92 1.83 4.75 4.20 0.93 0.93 0.93

(0.55)

Others Others

- - - - -

32.52 32.52

740.18 133.43 873.61 740.18 133.43 873.61

(841.09) (841.09)

system system

Coal handling Coal handling

- - - - -

Separate statements financial Consolidated financial statements Consolidated financial 438.90 195.78 634.68 386.31 438.90 195.78 634.68 386.31

(248.37) (248.37)

- system system

58

-

Communication Communication - - - - -

(TRANSLATION) 19,289.03 14,105.57 33,394.60 22,213.07 19,289.03 14,105.57 33,394.60 22,213.07

(11,181.53) (11,181.53)

exploration exploration system and system and system

Transmission Transmission - - - - -

from loansconstruction for power of plantsand transmission expansion, which (6.38) (6.38)

27.73 11.43 39.16 32.78 27.73 11.43 39.16 32.78

system system Control Control

------

(0.27)

40.01 40.01 17.34 22.40 22.40

(22.40) (22.40)

million were plants plants for power for power Equipment Equipment

- - - -

(16.59)

6,373.39 6,373.39

(6,181.68) (6,043.21)

23,772.86 30,146.25 23,947.98 22,524.19 28,897.58 22,854.37

Power plants Power plants - - - - -

3.53 3.53

283.19 286.72 111.85 283.19 286.72 111.85

(174.87) (174.87)

and dams and dams Reservoirs Reservoirs

comprise - - - -

(0.10)

in the amount of Baht 997.30 2,538.94 2,792.79 5,331.73 3,212.19 2,538.94 2,785.19 5,324.13 3,205.68

(2,119.44) (2,118.45)

Structures Structures

Borrowing costs costs Borrowing ed in the increasing during the year and presented in investing activities of the statements of cash flows. cash of statements the of activities investing in presented and year the during increasing the ed in Balance as at Jan 1, 16 Jan 1, Balanceat as Increase during the year Transferred to property, plant, equipment and others constructionwork under to Transferred power of andsystem plants transmission work under materialsfor to Transferred system construction transmission of Exchange rate differences from currency translation Balance at Decas 31, 16 16 Jan 1, Balanceat as Increase during the year Transferred to property, plant, equipment and others constructionwork under to Transferred power of andsystem plants transmission work under materialsfor to Transferred system construction transmission of Balance at Decas 31, 16 includ 6.12 Work under Construction 177

(TRANSLATION) - 59 - EGAT had work under construction project as follows: Unit : Million Baht Consolidated financial statements Separate financial statements Project Dec 31, 16 Dec 31, 15 Dec 31, 16 Dec 31, 15 Expand Transmission System Project 26,338.62 21,284.20 26,338.62 21,284.20 Chana Combined Cycle Power Plant Project - Block 2 0.55 112.09 0.55 112.09 North Bangkok Combined Cycle Power Plant Project - Block 2 85.26 56.98 85.26 56.98 Wang Noi Combined Cycle Power Plant Project - Block 4 - 211.96 - 211.96 Mae Moh Thermal Power Plant Project (Replacement) - Units 4-7 22,562.76 1,567.95 22,562.76 1,567.95 Others 10,578.33 12,440.95 9,457.60 12,438.03 Total 59,565.52 35,674.13 58,444.79 35,671.21

As at December 31, 2016, Mae Moh Thermal Power Plant Project (Replacement) - Units 4-7 had 76.40 percentages of completion and Lam Ta Khong Wind Power Project - Phase 2 had 70.30 percentages of completion. Three power plants were completed and transferred to asset comprise the Tub Sakae Renewable Energy Project on September 15, 2016, North Bangkok Combined Cycle Power Plant Project - Block 2 on December 1, 2015, Chana Combined Cycle Power Plant Project - Block 2 on April 8, 2014 (Train 1) and May 9, 2014 (Train 2). However, the three projects have incomplete construction in the remaining part of the additional surrounding development in the power plants (Facilities) that will be transferred to asset after completion.

6.13 Goodwill comprise Unit : Million Baht Consolidated financial statements Dec 31, 16 Dec 31, 15 Balance at the beginning 674.84 648.90 Differences from exchange rate adjustment (2.14) 25.94 672.70 674.84 Less: Allowance for impairment (375.37) (375.37) Balance at the end 297.33 299.47 178

(TRANSLATION) - 60 - 6.14 Intangible Assets comprise Unit : Million Baht Consolidated financial statements Land Computer Royalty on Project Total rights software rights state property development and software service rights license Cost as at Jan 1, 16 28,022.39 1,827.88 474.77 6,186.39 36,511.43 Increase during the year 1,981.60 98.93 - 212.81 2,293.34 Transferred from work under construction - 17.59 - - 17.59 Exchange rate differences from currency translation - (0.82) - (95.60) (96.42) Reclassification - 7.53 - - 7.53 Disposal / write-off - (53.47) - - (53.47) Cost as at Dec 31, 16 30,003.99 1,897.64 474.77 6,303.60 38,680.00

Accumulated amortization as at Jan 1, 16 (3,840.71) (1,387.68) (267.22) (2,157.20) (7,652.81) Amortization for the year (0.87) (255.24) (6.34) (292.35) (554.80) Exchange rate differences from currency translation - 0.71 - 36.30 37.01 Reclassification - (0.83) - - (0.83) Disposal / write-off - 53.22 - - 53.22 Accumulated amortization as at Dec 31, 16 (3,841.58) (1,589.82) (273.56) (2,413.25) (8,118.21)

Net book value As at MarDec 31, 31, 15 13 24,181.68 440.20 207.55 4,029.19 28,858.62 As at Dec 31, 16 26,162.41 307.82 201.21 3,890.35 30,561.79

(TRANSLATION) 179 - 61 -

Unit : Million Baht Separate financial statements Land Computer Royalty on Total rights software rights state property and software license service Cost as at Jan 1, 16 28,022.39 1,700.03 474.77 30,197.19 Increase during the year 1,981.60 94.55 - 2,076.15 Transferred from work under construction - 17.59 - 17.59 Reclassification - 7.53 - 7.53 Disposal / write-off - (53.47) - (53.47) Cost as at Dec 31, 16 30,003.99 1,766.23 474.77 32,244.99 Accumulated amortization as at Jan 1, 16 (3,840.71) (1,319.05) (267.22) (5,426.98) Amortization for the year (0.87) (237.68) (6.34) (244.89) Reclassification - (0.83) - (0.83) Disposal / write-off - 53.22 - 53.22 Accumulated amortization as at Dec 31, 16 (3,841.58) (1,504.34) (273.56) (5,619.48) Net book value As at Dec 31, 15 24,181.68 380.98 207.55 24,770.21 As at Dec 31, 16 26,162.41 261.89 201.21 26,625.51

6.15 Land Awaiting Development comprise Unit : Million Baht Consolidated financial statements Separate financial statements Dec 31, 16 Dec 31, 15 Dec 31, 16 Dec 31, 15 Balance at the beginning 2,548.72 2,557.59 2,239.51 2,239.51 Increase (Decrease) during the year - (8.87) - - 2,548.72 2,548.72 2,239.51 2,239.51 Less: Allowance for impairment (423.43) (423.43) (423.43) (423.43) Balance at the end 2,125.29 2,125.29 1,816.08 1,816.08

180 (TRANSLATION) - 62 -

As at December 31, 2016, EGAT has had the land awaiting development of Baht 1,816.08 million appropriated for construction of new power plants to support the additional demand of electric energy. Due to the change in power development planning, the construction of new power plants has been postponed. Details of the land awaiting development were comprised of: - Land at Ao-Phai, Chonburi Province of 122 Rai is valued at Baht 9.05 million. - Land at Tap Sakae, Prachuap Khiri Khan Province of 4,029 Rai is valued at Baht 2,223.43 million with accumulated impairment in the amount of Baht 423.43 million. As a result, the net book value of land was Baht 1,800 million. - Land surrounding Carrier Gas Station on Phet Kasem Road at Ratchaburi Province of 37 Rai is valued at Baht 3.75 million. - Land surrounding Bannasan substation at Nampu, Bannasan, Suratthani Province is valued at Baht 3.28 million.

6.16 Income Taxes and Deferred Taxes 6.16.1 Income taxes Unit : Million Baht Consolidated financial statements 2016 2015 Income taxes : Current income taxes 994.93 1,223.18 Income taxes of previous year which is under (over) recorded (38.26) 7.90 Total 956.67 1,231.08 Deferred taxes : Change in temporary differences (69.73) 176.64 Total (69.73) 176.64 Grand total 886.94 1,407.72

181 (TRANSLATION) - 63 -

6.16.2 Deferred tax assets and deferred tax liabilities Unit : Million Baht Consolidated financial statements Assets Liabilities Dec 31, 16 Dec 31, 15 Dec 31, 16 Dec 31, 15 Deferred tax assets (liabilities) 5,509.16 6,321.73 (7,259.73) (8,172.66) Set-off of taxes (5,455.70) (6,214.35) 5,455.70 6,214.35 Net deferred tax assets (liabilities) 53.46 107.38 (1,804.03) (1,958.31)

6.16.3 Movements in deferred tax assets and deferred tax liabilities Unit : Million Baht Consolidated financial statements As at Gain or Other Exchange As at Jan 1, 16 Loss Comprehensive rate Dec 31, 16 Income differences Deferred tax assets : Allowance for obsolescence of spare parts and supplies and allowance for declining in value of spare parts and supplies 264.12 (28.77) - (0.04) 235.31 Property, plant and equipment 5,424.44 (663.67) - - 4,760.77 Provision for employee benefits 25.42 1.82 4.63 - 31.87 Finance leases liabilities 0.09 0.03 - - 0.12 Loss carry forward 607.66 (121.33) - (5.24) 481.09 Total 6,321.73 (811.92) 4.63 (5.28) 5,509.16 Deferred tax liabilities : Depreciation and amortization (2,387.45) 150.78 - 35.12 (2,201.55) Finance leases receivable-related parties (5,638.16) 639.11 - - (4,999.05) Others (147.05) 87.12 - 0.80 (59.13) Total (8,172.66) 877.01 - 35.92 (7,259.73)

182

(TRANSLATION) - 64 -

Unit : Million Baht Consolidated financial statements As at Gain or Other Exchange As at Jan 1, 15 Loss Comprehensive rate Dec 31, 15 Income differences Deferred tax assets : Allowance for obsolescence of spare parts and supplies and allowance for declining in value of spare parts and supplies 222.76 41.36 - - 264.12 Property, plant and equipment 6,129.64 (705.20) - - 5,424.44 Provision for employee benefits 22.02 3.40 - - 25.42 Finance leases liabilities 0.07 0.02 - - 0.09 Loss carry forward 1,081.50 (449.25) - (24.59) 607.66 Total 7,455.99 (1,109.67) - (24.59) 6,321.73 Deferred tax liabilities : Depreciation and amortization (2,609.37) 162.82 - 59.10 (2,387.45) Finance leases receivable-related parties (6,323.68) 685.52 - - (5,638.16) Others (236.65) 84.69 - 4.91 (147.05) Total (9,169.70) 933.03 - 64.01 (8,172.66)

183 (TRANSLATION) - 65 -

6.17 Other Non-Current Assets comprise Unit : Million Baht Consolidated financial statements Overburden Minerals Resettlement Mineral Total removal resource costs Patent costs costs exploration and preliminary development costs - Deferred Charges of the Lignite Mine Deferred charges as at Jan 1, 16 106,592.33 645.67 1,988.44 281.14 109,507.58 Increase during the year 5,708.31 - - - 5,708.31 Deferred charges as at Dec 31, 16 112,300.64 645.67 1,988.44 281.14 115,215.89 Accumulated amortization as at Jan 1, 16 (106,592.33) (334.53) (1,788.69) (80.23) (108,795.78) Increase during the year (5,708.31) (10.18) (51.89) (11.24) (5,781.62) Accumulated amortization as at Dec 31, 16 (112,300.64) (344.71) (1,840.58) (91.47) (114,577.40) Net book value As at Dec 31, 15 - 311.14 199.75 200.91 711.80 As at Dec 31, 16 - 300.96 147.86 189.67 638.49 - Others As at Dec 31, 15 2,716.12 As at Dec 31, 16 3,602.35 Total other non-current assets As at Dec 31, 15 3,427.92 As at Dec 31, 16 4,240.84

184 (TRANSLATION) - 66 -

Unit : Million Baht Separate financial statements Overburden Minerals Resettlement Mineral Total removal resource costs Patent costs costs exploration and preliminary development costs - Deferred Charges of the Lignite Mine Deferred charges as at Jan 1, 16 106,592.33 645.67 1,988.44 281.14 109,507.58 Increase during the year 5,708.31 - - - 5,708.31 Deferred charges as at Dec 31, 16 112,300.64 645.67 1,988.44 281.14 115,215.89 Accumulated amortization as at Jan 1, 16 (106,592.33) (334.53) (1,788.69) (80.23) (108,795.78) Increase during the year (5,708.31) (10.18) (51.89) (11.24) (5,781.62) Acuumulated amortization as at Dec 31, 16 (112,300.64) (344.71) (1,840.58) (91.47) (114,577.40) Net book value As at Dec 31, 15 - 311.14 199.75 200.91 711.80 As at Dec 31, 16 - 300.96 147.86 189.67 638.49 - Others As at Dec 31, 15 1,707.06 As at Dec 31, 16 2,841.39 Total other non-current assets As at Dec 31, 15 2,418.86 As at Dec 31, 16 3,479.88

6.18 Trade Accounts Payable-Others are as follows : Unit : Million Baht Consolidated financial statements Separate financial statements Dec 31, 16 Dec 31, 15 Dec 31, 16 Dec 31, 15 Trade payable-electric energy purchased 31,826.13 33,904.05 31,826.13 33,904.05 Trade payable-fuel for electricity generating 6,641.75 8,674.84 6,641.75 8,674.84 Trade payable-fuel for providing - 896.90 - 896.90 Others 7,500.01 9,222.35 1,924.64 2,240.85 Total 45,967.89 52,698.14 40,392.52 45,716.64

185 (TRANSLATION) - 67 -

6.19 Accrued Remittance to the Ministry of Finance In the year 2016, the Ministry of Finance prescribed that EGAT has to calculate the accrued remittance to the Ministry of Finance in 45% of profit before provision of bonus expense. However, the amount of remittance may vary depending on the revision from the Ministry of Finance. As at January 1, 2016, EGAT has accrued remittance to the Ministry of Finance in the amount of Baht 6,213.99 million which increased in the amount of Baht 3,786.01 million. On April 27, 2016, EGAT remitted to the Ministry of Finance in accordance with the notice of EGAT no. 921101/33346 in the amount of Baht 10,000.00 million. As at December 31, 2016, EGAT recorded the provision for the remittance to the Ministry of Finance for the year 2016 in the amount of Baht 20,707.64 million. However, in October 2016, EGAT remitted for the six months ended June 30, 2016 in the amount of Baht 12,607.25 million. Therefore, EGAT has accrued remittance to the Ministry of Finance in the amount of Baht 8,100.39 million as at December 31, 2016. 6.20 Long-Term Loans comprise Unit : Million Baht Consolidated financial statements Separate financial statements Dec 31, 16 Dec 31, 15 Dec 31, 16 Dec 31, 15 Balance at the beginning 74,744.68 80,778.94 56,192.47 64,280.62 Increase during the year 6,989.16 2,126.31 4,400.00 - Repayments (6,856.45) (9,464.21) (5,617.01) (8,065.86) Gain on exchange rate from repayments (5.35) (10.21) (5.35) (10.21) Gain on derivatives from repayments (1.91) (0.64) (1.91) (0.64) (Gain) loss on exchange rate adjustment / Exchange rate differences from currency translation 29.61 1,291.99 (25.09) (11.44) Reclassification deferred financing fee to other non-current liabilities (22.50) 22.50 - - 74,877.24 74,744.68 54,943.11 56,192.47 Less :Current portion of long-term loans (3,148.79) (6,814.54) (3,118.84) (5,584.60) Balance at the end 71,728.45 67,930.14 51,824.27 50,607.87

186 (TRANSLATION) - 68 -

Long-Term Loans comprise Consolidated financial statements Dec 31, 16 Dec 31, 15 Foreign Million Foreign Million currencies Baht currencies Baht Unit : million Unit : million Local sources secured by the Ministry of Finance: EGAT bonds Fixed rate due within 2016 - 2020 - 1,000.00 - 2,000.00 1,000.00 2,000.00 Local sources unsecured by the Ministry of Finance: Ministry of Finance loans Fixed rate due within 2016 - 2027 - 68.05 - 73.35 EGAT bonds Fixed rate due within 2016 - 2033 - 53,300.00 - 53,300.00 Debenture Fixed rate due within 2016 - 2022 - 1,998.38 - 1,998.06 Other financial institutions Floating rate due within 2016 - 2018 - 39.92 - 69.86 Fixed rate due in 2016 - - - 1,200.00 55,406.35 56,641.27 Foreign sources secured by the Ministry of Finance: Loans Euro: Fixed rate due within 2016 - 2037 15.08 575.06 20.58 819.12 575.06 819.12 Foreign sources unsecured by the Ministry of Finance: Loans AUD Dollars: Floating rate due in 2018 100.00 2,567.01 - - Debenture Japanese Yen: Fixed rate due in 2026 15,000.00 4,596.05 15,000.00 4,481.78 Dollars: Fixed rate due in 2019 300.00 10,732.77 300.00 10,802.51 17,895.83 15,284.29 Total 74,877.24 74,744.68 Less: Current portion of long-term loans (3,148.79) (6,814.54) Balance 71,728.45 67,930.14

187

(TRANSLATION) - 69 -

Separate financial statements Dec 31, 16 Dec 31, 15 Foreign Million Foreign Million currencies Baht currencies Baht Unit : million Unit : million Local sources secured by the Ministry of Finance: EGAT bonds Fixed rate due within 2016 - 2020 - 1,000.00 - 2,000.00 1,000.00 2,000.00 Local sources unsecured by the Ministry of Finance: Ministry of Finance loans Fixed rate due within 2016 - 2027 - 68.05 - 73.35 EGAT bonds Fixed rate due within 2016 - 2033 - 53,300.00 - 53,300.00 53,368.05 53,373.35 Foreign sources secured by the Ministry of Finance: Loans Euro: Fixed rate due within 2016 - 2037 15.08 575.06 20.58 819.12 575.06 819.12 Total 54,943.11 56,192.47 Less: Current portion of long-term loans (3,118.84) (5,584.60) Balance 51,824.27 50,607.87

As at December 31, 2016 and 2015, long-term loans can be classified by interest rate as follows: Unit : Million Baht Consolidated financial statements Separate financial statements Dec 31, 16 Dec 31, 15 Dec 31, 16 Dec 31, 15 Floating rate 2,606.93 69.86 - - Fixed rate 72,270.31 74,674.82 54,943.11 56,192.47 Total 74,877.24 74,744.68 54,943.11 56,192.47

188 (TRANSLATION) - 70 -

Interest rate of long-term loans as at December 31, 2016 are as follows:

Consolidated financial statements Separate financial statements EGAT bonds - local sources - Guaranteed by the Ministry of Finance 7.380% 7.380% - The Ministry of Finance does not guarantee. 1.940% to 6.235% 1.940% to 6.235% Loans - local sources - The Ministry of Finance does not guarantee. 3.000% to 4.350% 3.000% Loans - foreign sources - Guaranteed by the Ministry of Finance 0.750% to 8.000% 0.750% to 8.000% Debenture - The Ministry of Finance does not guarantee. 2.720% to 3.500%

6.21 Finance Leases Liabilities-Power Plants Unit : Million Baht Consolidated financial statements Separate financial statements Dec 31, 16 Dec 31, 15 Dec 31, 16 Dec 31, 15 Related Parties Finance leases liabilities 394,114.49 265,200.35 437,644.16 316,430.05 Less : Deferred interest expenses (215,022.68) (141,554.84) (233,557.10) (164,593.75) Total 179,091.81 123,645.51 204,087.06 151,836.30 Less : Current portion (10,009.36) (7,917.09) (13,779.41) (11,112.63) Finance leases liabilities-net of current portion 169,082.45 115,728.42 190,307.65 140,723.67 Others Finance leases liabilities 338,883.68 365,980.67 338,883.68 365,980.67 Less : Deferred interest expenses (204,726.50) (224,689.79) (204,726.50) (224,689.79) Total 134,157.18 141,290.88 134,157.18 141,290.88 Less : Current portion (6,651.93) (6,644.10) (6,651.93) (6,644.10) Finance leases liabilities-net of current portion 127,505.25 134,646.78 127,505.25 134,646.78 Total Current portion of finance leases liabilities 16,661.29 14,561.19 20,431.34 17,756.73 Finance leases liabilities-net of current portion 296,587.70 250,375.20 317,812.90 275,370.45

189

(TRANSLATION) - 71 -

Unit : Million Baht Consolidated financial statements Finance leases liabilities Deferred interest expenses Net Dec 31, 16 Dec 31, 15 Dec 31, 16 Dec 31, 15 Dec 31, 16 Dec 31, 15 Within 1 year 54,466.10 48,060.13 (37,804.81) (33,498.94) 16,661.29 14,561.19 1 - 5 years 190,046.60 167,153.73 (128,407.20) (112,390.75) 61,639.40 54,762.98 Over 5 years 488,485.47 415,967.16 (253,537.17) (220,354.94) 234,948.30 195,612.22 Total 732,998.17 631,181.02 (419,749.18) (366,244.63) 313,248.99 264,936.39

Unit : Million Baht Separate financial statements Finance leases liabilities Deferred interest expenses Net Dec 31, 16 Dec 31, 15 Dec 31, 16 Dec 31, 15 Dec 31, 16 Dec 31, 15 Within 1 year 62,138.00 55,756.48 (41,706.66) (37,999.75) 20,431.34 17,756.73 1 - 5 years 211,099.81 191,400.26 (138,798.93) (124,781.37) 72,300.88 66,618.89 Over 5 years 503,290.03 435,253.98 (257,778.01) (226,502.42) 245,512.02 208,751.56 Total 776,527.84 682,410.72 (438,283.60) (389,283.54) 338,244.24 293,127.18

6.22 Employee Benefit Obligations EGAT’s employees will receive retirement benefits under Thai labour law when employees have completed their terms in accordance with agreements between employees and EGAT. Employee benefits liability is a defined benefits obligation calculated by using the projected unit credit method on an actuarial basis. This basis determines the present value of future payments by discounting the future cash flows using government bond yield with a currency and term similar to the estimated term of the benefit obligations. Any expenses related to benefits are recognized in the statements of income in order to attribute benefits to periods of service.

190 (TRANSLATION) - 72 -

Movement in the present value of the defined benefit obligations is as follows: Unit : Million Baht Consolidated financial statements Separate financial statements Dec 31, 16 Dec 31, 15 Dec 31, 16 Dec 31, 15 Balance at the beginning 15,396.26 14,579.79 15,269.98 14,469.21 Current service costs 776.69 603.53 755.98 588.17 Interest on obligations 499.87 545.54 494.89 541.17 Past service costs - 115.23 - 115.23 Actuarial loss from post-employment employee benefit obligation 23.18 450.32 - 451.89 Actuarial gain from other long-term employee benefits obligation - (1.89) - (1.89) Actual payment (1,102.70) (896.19) (1,092.02) (893.80) Foreign exchange adjustment (0.08) (0.07) - - Balance at the end 15,593.22 15,396.26 15,428.83 15,269.98

Expenses recognized in the statements of income and as parts of cost of assets/liabilities were shown in the statements of financial position for the year ended December 31, 2016 are as follows: Unit : Million Baht Consolidated financial statements Separate financial statements Dec 31, 16 Dec 31, 15 Dec 31, 16 Dec 31, 15 Expenses realized in the statements of income Cost of sales 713.52 699.44 713.52 699.44 Selling expenses 8.43 7.77 8.43 7.77 Administrative expenses 428.53 427.93 402.84 408.20 Total 1,150.48 1,135.14 1,124.79 1,115.41 Cost of assets / liabilities realized in the statements of financial position Materials and supplies 43.62 42.63 43.62 42.63 Work under construction 80.44 83.04 80.44 83.04 Provision liabilities for mine reclamation 2.02 1.60 2.02 1.60 Total 126.08 127.27 126.08 127.27 Grand Total 1,276.56 1,262.41 1,250.87 1,242.68

191 (TRANSLATION) - 73 -

Actuarial loss from post-employment benefit obligation recognized in the statements of comprehensive income are as follows: Unit : Million Baht Consolidated financial statements Separate financial statements Dec 31, 16 Dec 31, 15 Dec 31, 16 Dec 31, 15 Loss (Gain) from experience adjustments 12.06 (522.95) - (523.46) Loss from changes in financial assumptions 6.03 976.76 - 978.51 Loss (Gain) from changes in demographic assumptions 5.09 (3.49) - (3.16) Total 23.18 450.32 - 451.89

Principal actuarial assumptions of EGAT are as follows: Annual percentage (%) Discount rate 3.3 Inflation rate Consumer price index 3.0 Post-employment medical care 10 Resignation rate 0.0 - 0.7 Salary increasing rate 6 - 11 Mortality rate, by table TMO08 (Thai mortality tables 2008)

Sensitivity analysis of principal actuarial assumptions used in determining the present value of benefit obligations of EGAT as at December 31, 2016 are as follows: Unit : Million Baht Increase (decrease) in present value of the obligation Increase 1% Decrease 1% Discount rate (1,614.14) 2,030.43 Salary increasing rate 888.83 787.89 Medical Inflation rate 947.85 (722.42)

Weighted average duration of the benefit obligations of EGAT’s group is 18 years. Due to the differences in operational environment of EGAT’s group, including limitations on the estimation of assumptions and sensitivity analysis based on actuarial principles, the principal assumptions and their sensitivity analysis could not be reasonably applied. Thus only EGAT has been presented. 192 (TRANSLATION) - 74 -

6.23 Provision Liabilities for Mine Reclamation are as follows : Unit : Million Baht Consolidated financial statements Separate financial statements Dec 31, 16 Dec 31, 15 Dec 31, 16 Dec 31, 15 Balance at the beginning 2,169.27 2,141.00 2,169.27 2,141.00 Increase during the year 123.00 113.58 123.00 113.58 2,292.27 2,254.58 2,292.27 2,254.58 Less : Mine reclamation expenses (93.78) (78.13) (93.78) (78.13) Depreciation (8.82) (7.18) (8.82) (7.18) Balance at the end 2,189.67 2,169.27 2,189.67 2,169.27

6.24 Other Non-Current Liabilities comprise Unit : Million Baht Consolidated financial statements Separate financial statements Dec 31, 16 Dec 31, 15 Dec 31, 16 Dec 31, 15 Deferred Income Balance at the beginning 6,823.44 6,576.82 6,823.44 6,576.82 Add : Contribution received 360.16 424.60 360.16 424.60 Asset transferred 260.00 174.45 260.00 174.45 7,443.60 7,175.87 7,443.60 7,175.87 Less : Recognized to other revenue (421.60) (347.19) (421.60) (347.19) Contribution refunded - (3.90) - (3.90) Decrease in depreciation (1.34) (1.34) (1.34) (1.34) Balance at the end 7,020.66 6,823.44 7,020.66 6,823.44 Retention 7,802.84 5,035.94 7,802.84 5,035.94 Others 1,049.23 1,102.06 1,117.40 1,058.77 Total 15,872.73 12,961.44 15,940.90 12,918.15

193 (TRANSLATION) - 75 -

6.25 Equity Contribution from The Government comprise Unit : Million Baht Consolidated financial statements Separate financial statements Dec 31, 16 Dec 31, 15 Dec 31, 16 Dec 31, 15 Contribution for supporting capital 6,507.64 6,507.64 6,507.64 6,507.64 Contribution for supporting construction of the Srinagarind, Bang Lang, Vajiralongkorn, Rajjaprabha and Pak Mun Dam 4,364.75 4,364.75 4,364.75 4,364.75 Less : Accumulated depreciation (1,995.08) (1,932.75) (1,995.08) (1,932.75) Depreciation for the period (62.33) (62.33) (62.33) (62.33) 2,307.34 2,369.67 2,307.34 2,369.67 Balance 8,814.98 8,877.31 8,814.98 8,877.31

6.26 Revenue from Sales of Other Goods and Services comprise Unit : Million Baht Consolidated financial statements Separate financial statements 2016 2015 2016 2015 Revenue from telecommunication services 231.94 340.03 231.94 340.03 Revenue from fuel providing 4,122.84 11,871.98 4,251.54 12,864.67 Revenue from operation and maintenance services 1,907.52 1,404.32 3,050.13 2,982.64 Others 1,084.62 1,150.78 346.37 496.96 Total 7,346.92 14,767.11 7,879.98 16,684.30

EGAT has the revenue from telecommunication business, which has been approved to operate telecommunication business by The National Telecommunications Commission on March 15, 2007.

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6.27 Cost of Electric Energy Sales comprise Unit : Million Baht Consolidated financial statements Separate financial statements 2016 2015 2016 2015 Electric energy purchased 307,692.78 320,327.55 307,694.81 320,346.11 Fuel 126,263.24 163,112.45 89,816.23 118,481.20 Generating expenses 34,416.17 34,496.68 29,808.22 29,252.01 Transmission expenses 11,227.73 10,823.31 11,227.73 10,823.31 479,599.92 528,759.99 438,546.99 478,902.63 Finance Leases-Power plants Electric energy purchased (187,450.11) (203,699.24) (187,450.11) (203,699.24) Fuel 83,100.18 101,644.31 120,441.07 147,015.42 Generating expenses 20,224.21 17,694.67 23,415.36 21,762.73 (84,125.72) (84,125.72) (84,360.26) (43,593.68) (34,921.09) Total 395,474.20 444,399.73 394,953.31 443,981.54

6.28 Cost of Sales of Other Goods and Services comprise Unit : Million Baht Consolidated financial statements Separate financial statements 2016 2015 2016 2015 Cost of telecommunication services 17.05 19.31 17.05 19.31 Cost of fuel providing 4,122.84 11,871.98 4,251.54 12,864.67 Cost of operation and maintenance services 1,169.08 769.28 1,933.76 1,808.65 Others 314.21 387.32 187.74 275.79 Total 5,623.18 13,047.89 6,390.09 14,968.42

EGAT recorded cost of telecommunication services together with revenue from telecommunication services since March 15, 2007 that EGAT has received the approval to operate telecommunication business by The National Telecommunications Commission. However, cost of telecommunication services excludes selling expenses, administrative expenses and finance costs, which each of expenses is shown in each of categories of expenses in the statements of income.

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6.29 Other Revenues comprise Unit : Million Baht Consolidated financial statements Separate financial statements 2016 2015 2016 2015 Interest income 1,481.33 1,810.72 1,264.35 1,392.46 Dividend income 473.23 269.42 2,634.61 2,389.97 Profit on disposal of assets 211.28 137.37 210.77 14.92 Gain on foreign exchange 345.25 - 209.07 - Gain on foreign exchange under finance leases 856.74 - 872.67 - Gain on changes in the fair value of derivatives 75.80 140.63 75.80 140.63 Contribution income 421.60 347.19 421.60 347.19 Gain on sale of investment - 1.73 - - Fine income 312.53 383.76 312.50 383.76 Income on disposal of fly ash and scrap 383.00 383.59 383.00 383.59 Miscellaneous income 97.50 (521.21) 97.50 (521.21) Others 356.12 464.20 187.21 359.40 Total 5,014.38 3,417.40 6,669.08 4,890.71

6.30 Other Expenses comprise Unit : Million Baht Consolidated financial statements Separate financial statements 2016 2015 2016 2015 Loss on foreign exchange - 1,587.42 - 419.76 Loss on foreign exchange under finance leases - 10,408.85 - 10,559.56 Others 18.54 14.06 17.53 14.06 Total 18.54 12,010.33 17.53 10,993.38

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6.31 Finance Costs comprise Unit : Million Baht Consolidated financial statements Interest Expenses relating Total expenses to the loans 2016 2015 Capitalized to work under construction 997.30 - 997.30 376.45 Finance costs in the statements of income 4,151.58 44.32 4,195.90 4,406.91 Finance costs-Finance leases 37,504.80 - 37,504.80 27,278.82 41,656.38 44.32 41,700.70 31,685.73 Total 42,653.68 44.32 42,698.00 32,062.18

Unit : Million Baht Separate financial statements Interest Expenses relating Total expenses to the loans 2016 2015 Capitalized to work under construction 997.30 - 997.30 376.45 Finance costs in the statements of income 2,789.05 1.72 2,790.77 3,016.66 Finance costs-Finance leases 41,998.55 - 41,998.55 32,306.75 44,787.60 1.72 44,789.32 35,323.41 Total 45,784.90 1.72 45,786.62 35,699.86

6.32 Share of Profit (Loss) from Investments in Associates comprise

Unit : Million Baht Consolidated financial statements 2016 2015 Electricity Generating Pcl. 2,403.30 1,085.85 First Korat Wind Co., Ltd. 125.66 109.62 K.R. Two Co., Ltd. 102.55 95.14 Perth Power Partnership (Kwinana) 80.28 80.37 Nam Ngiep 1 Power Co., Ltd. (73.02) 89.44 PT Adaro Indonesia 111.01 - Total 2,749.78 1,460.42

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6.33 Performance of EGAT The performance of EGAT in net income of 2016 was Baht 41,072.95 million. EGAT recorded the provision of expenses and liabilities of bonus for employees and directors in the amount of Baht 4,832.17 million in the 2016 financial statements. In April 2016, the Ministry of Finance approved EGAT to allocate the 2015 net income for bonus payment to the employees and directors in the amount of Baht 5,071.93 million. EGAT recorded the provision of bonus in 2015 Baht 4,960.08 million which is Bath 111.85 million lower than the approval amount. This difference brought about increasing expense in the year 2016. 6.34 Expenses by Nature comprise Unit : Million Baht Consolidated financial statements Separate financial statements 2016 2015 2016 2015 Electric energy purchased 120,242.67 116,628.31 120,244.70 116,646.87 Work performed by the entity and capitalized (41,658.05) (30,508.00) (41,658.05) (30,508.00) Raw materials and consumables used 133,356.99 169,463.14 96,699.87 125,151.63 Fuel-Finance leases 83,100.18 101,644.31 120,441.07 147,015.42 Management's remunerations 356.40 347.51 148.38 148.40 Employee benefit expenses 28,908.65 29,174.69 28,318.97 28,622.21 Depreciation of property, plant and equipment 26,323.11 25,311.72 25,292.44 24,262.93 Depreciation of finance leases assets 17,704.75 13,149.47 17,704.75 13,149.47 Amortization of intangible assets 554.58 516.67 244.68 231.91 Hire and maintenance expenses 10,100.13 10,543.91 8,577.09 9,168.77 Other expenses 38,573.45 50,052.48 40,073.04 51,155.99 Total 417,562.86 486,324.21 416,086.94 485,045.60

7. Power Development Fund The legislation of Energy Industry Act B.E. 2550, which enforced on December 11, 2007, determined to set up the power development fund to support extensive electricity service provision to various localities and to develop the local communities affected by the operation of a power plant. Anyhow, Energy Regulatory Commission (ERC) has power and duty to manage the fund, ERC declared about delivery the money to the power development fund for electricity industry licensees in type of electricity generation license B.E. 2553 which determines electricity industry licensees shall deliver the money to the fund in 2 periods as follows: 198 (TRANSLATION) - 80 -

1. During the power plant construction, starting from the date of conducting the construction in accordance with the contract for services and comply with the electricity industry licenses until the commercial operation date (COD) and have to deliver annually by calculating the money from estimate of installed capacity of power plant at the rate of Baht 50,000 per megawatt per year. In case of the construction is less than 1 year, EGAT has to deliver the money in accordance with percentage of month which construction had been conducted but it must not be less than Baht 50,000 per year. 2. During electricity generating, starting from the date of commercial operation date, EGAT has to deliver monthly by calculating the money based on electric energy produced for sales and internal use which exclude electric energy using in production process in station service. It was separated by the types of fuels using in generating power such as natural gas, fuel oil, diesel, coal, lignite etc. In 2014 ERC declared about the remittance to the power development fund for electricity selling licensees, as follows: 1. The announcement on the remittance to the power development fund for electricity selling licensees to support the use of renewable energy and the technology used in the operation of electricity industry with less environmental impact B.E. 2557, which requires licensees to remit to the power development fund based on the electricity charged to consumers at the rate of Baht 0.005 per net unit sold in the billing month; 2. The announcement on the remittance to the power development fund for electricity selling licensees to support society and people to have knowledge, awareness and participation in the electricity B.E. 2557, which requires the licensees to remit to the power development fund based on the electricity charged to consumers at the rate of Baht 0.002 per net unit sold in the billing month. EGAT had contribution provision for the power development fund which can be categorized as follows: 1. The power plant of EGAT including both under construction and declared commercial operation power plants for the years ended December 31, 2016 and 2015 in the amount of Baht 945.62 million and Baht 927.61 million respectively. 2. The supporting of using renewable energy and the technology used in the operation of electricity industry with less environmental impact for the year ended December 31, 2016 and 2015 in the amount of Baht 9.75 million and Baht 10.43 million respectively. 3. The supporting society and people with knowledge, awareness and participation in the electricity for the year ended December 31, 2016 and 2015 in the amount of Baht 3.90 million and Baht 4.17 million respectively. (TRANSLATION) 199 - 81 -

8. Contingent Asset Power Purchase Agreement of Power Plant Project, Nam Theun 2 and Nam Ngum 2 From the year 2010, EGAT entered into the Power Purchase Agreement with Lao People’s Democratic Republic (Lao PDR) of Nam Theun 2 power plant project and Nam Ngum 2 power plant project. The power purchase guarantee in accordance with annual supply target specified that in case of the power plants have supply excess, they don’t charge EGAT for the excess. However, the excess will be accumulated to set off in the following year when the power plants have lower supply than annual supply target (supply shortfall). On the other hand, if EGAT has dispatch shortfall, the power plants will charge in the amount of the buying guarantee of EGAT whereas EGAT has to pay in advance and be able to receive amount of energy at a later month to make up the dispatch. In case of EGAT accepts the supply excess, EGAT is able to apply the amount accumulated to set off. During the agreement period, if it has no supply shortfall, EGAT will pay for accrued electricity expense for supply excess with the excess electricity rate which is less than normal electricity rate (Baht 0.57 for Nam Theun 2 power plant project and Baht 1.145 for Nam Ngum 2 power plant project) at the end of the period. Period of Nam Theun 2 power plant ends at 13th anniversary from March 8, 2010 and period of Nam Ngum 2 power plant ends 10th anniversary from running the machinery. However, both of the projects have to include period of time extended because of unpredictable events. Besides, EGAT will get the refund 25% of accrued electricity expense which paid at the end of the period. It calculates by accumulated supply excess plus excess energy or excess revenue less accumulated dispatch shortfall. At this time, EGAT is not able to estimate because there is no certainty about amount of contingent assets. As at December 31, 2016, contingent asset excluded from the separate financial statements are the calling for outsiders to pay compensation to EGAT, which the Civil Court judged that outsiders was liable for the payment of 4 lawsuits in case of infringement with the amount of Baht 41.94 million.

9. Contingent Liabilities As at December 31, 2016, contingent liabilities excluded from the separate financial statements, are the calling for EGAT to pay additional compensation, which the Civil Court judged that EGAT was liable for the additional payment of 53 lawsuits with the amount of Baht 86.63 million in case of calling for compensation of land rights, infringement, breach of contract and relating to employment.

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10. Commitments 10.1 Long-Term Power Purchase Agreements As a result of the government’s policy on decreasing the government’s investment burden and encouraging private sector to be involved in the power generation industry, the Government approved an investment program for the power generation in new project by private sector (Independent Power Producers known as IPPs) who will sell power to EGAT. As at December 31, 2016, EGAT has entered into 83 Power Purchase Agreements which can be divided by 2 categories as follows: (1) Long-term power purchase agreements with hydro power plants - capability to generate electricity of the power plants shall depend on water level in the dam and production plan of each power plant. Therefore, the obligation of the electricity generated by hydro power plants cannot be estimated reliably. Nowadays, EGAT has 7 electric power purchase agreements with hydro power plants which consist of Theun Hinboun power plant, Houay Ho power plant, Nam Theun 2 power plant, Nam Ngum 2 power plant, Xaiyaburi power plant, Xe-Pian Xe-Namnoy power plant and Nam Ngiep 1 power plant. (2) Long-term power purchase agreements from thermal power plants and combined-cycle power plants. At present, EGAT has 76 power purchase agreements from thermal power plants and combined-cycle power plants that total commitments to the end of all contracts amounting to approximately Baht 4,360,487 million and total production capacity of 12,118 megawatts.

Remaining life Amount Availability Energy Company Capacity of contract payment (AP) payment (EP) Power producers (megawatt) (years) (Million Baht) (Million Baht) (Million Baht) Independent Power Producers (IPPs) Gulf SRC Company Limited (GSRC) 1 2,500 27 (2021-2047) 878,660 217,008 661,652 Gulf PD Company Limited (GPD) 1 2,500 27 (2023-2049) 880,676 218,261 662,415 Small Power Producers (SPPs) 74 7,118 1-26 Years 2,601,151 618,119 1,983,032 Total 76 12,118 4,360,487 1,053,388 3,307,099

10.2 Fuel Purchase Agreements EGAT has entered into 4 natural gas purchase agreements for power plant with PTT Public Company Limited. The agreement remaining amount is Baht 266,615 million, which the details are as follows:

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1. The main natural gas purchase agreement for power plants of EGAT was ended on December 31, 2015. Currently, the detail of new agreement is under consideration, so it has to be temporary extended this agreement. Thus, this agreement will be ended on December 31, 2017 with expanded amount of Baht 63,656 million. The remaining amount on December 31, 2016 was 63,656 million. 2. The main natural gas purchase agreement for Lankrabue was ended on October 4, 2016. This agreement has been extended to December 31, 2019 with expanded amount of Baht 535 million. The remaining amount on December 31, 2016 was 482 million. 3. Natural gas purchase agreements for Nam Phong and Chana power plants are made separately into 2 agreements with the remaining years of agreements between 4 years 8.5 months and 15 years 8 months. The total remaining amount of these agreements was Baht 202,477 million.

10.3 Hire-Purchase Agreements EGAT has entered into the local and foreign hire-purchase agreements, which the details are as follows: 10.3.1 There are 368 agreements of local hire-purchase agreements excluding the operating lease agreements and their amount as agreements are Baht 72,402.27 million with the remaining years of agreements between 0.5 month and 9 years 3.5 months. The total remaining amount of these agreements was approximately Baht 38,911.94 million. 10.3.2 There are 206 agreements of foreign hire-purchase agreements and their amount as agreements are Baht 111,509.09 million. Some agreements have the remaining years between 0.5 month and 9 years 11 months while some agreements are not indicated the agreements period. The total remaining amount of these agreements from the conversion of foreign currency by using the average buying and selling exchanged rate on December 31, 2016, which announced by the Bank of Thailand was approximately Baht 50,993.17 million.

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10.4 Operating Lease Agreements The minimum lease payments under non-cancellable operating leases in the future are as follows: Unit : Million Baht Separate financial statements 2016 2015 Within 1 year 199.10 210.86 Over 1 year but not over 5 years 115.69 240.53 Total 314.79 451.39

10.5 Letter of Credit On December 31, 2016, EGAT has unused letter of credit, which are not expired amounting to approximately Baht 9,932.61 million. 10.6 Share Pledge Contract Share Pledge of Nam Ngiep 1 Power Company Limited Nam Ngiep 1 Power Company Limited obtained facilities from certain financial institutions to finance its hydropower project in the Lao PDR in 2014 and entered into a Common Terms Agreement dated August 15, 2014 and other related finance documents (collectively, the Financial Documents) with the financial institutions named therein in connection with the financing of the project. As a condition to the financing, the shareholders of Nam Ngiep 1 Power Company Limited are required under the Finance Documents to pledge all of their shares in Nam Ngiep 1 Power Company Limited and grant security over all related dividends and other rights, interests and benefits arising from such shares in favor of Nam Ngiep 1 Power Company Limited’s lenders and other secured parties. EGAT International Company Limited, therefore, entered into an EGAT International Company Limited Pledge of Shares dated August 15, 2014 with Bangkok Bank Public Company Limited (as the Lao PDR law security agent on behalf of the secured parties) pursuant to which EGAT International Company Limited pledged all of its shares in Nam Ngiep 1 Power Company Limited to the Lao PDR law security agent (on behalf of the secured parties) under the Lao PDR law. Under the terms of the Financial Documents,(TRANSLATION) the share pledges will be released only upon the full - 85 - discharge of all secured indebtedness owing to the secured parties. 10.7 Promissory Notes

EGAT International Company Limited has Promissory Notes for payment the remaining shares from acquisition PT Adaro Indonesia amount to USD 161.50 million in the year 2022 - 2027 when PT Adaro Indonesia has met the conditions in Subscription Agreement.

11. Disclosure of Financial Instruments EGAT used the financial instruments to decrease uncertainty from uncontrollable outside factors. The main derivative financial instrument was forward foreign exchange contracts.

11.1 Forward Foreign Exchange Contracts EGAT has conducted a forward foreign exchange contracts to mitigate the risk of fluctuations in foreign exchange rate associated with foreign loan repayment, the electric energy purchased from foreign countries, goods and services which are contracts to buy foreign currency at a pre-agreed exchange rate on a specified future time. Forward foreign exchange contracts are translated into functional currency at the exchange rate prevailing at the statements of financial position date and are recognized the differences that occur in statements of income on maturity date. As at December 31, 2016, EGAT has no remaining forward foreign exchange contract.

(TRANSLATION) - 85 -

10.7 Promissory Notes

EGAT International Company Limited has Promissory Notes for payment the remaining shares from acquisition PT Adaro Indonesia amount to USD 161.50 million in the year 2022 - 2027 when PT Adaro 203 Indonesia has met the conditions in Subscription Agreement.

11. Disclosure of Financial Instruments EGAT used the financial instruments to decrease uncertainty from uncontrollable outside factors. The main derivative financial instrument was forward foreign exchange contracts.

11.1 Forward Foreign Exchange Contracts EGAT has conducted a forward foreign exchange contracts to mitigate the risk of fluctuations in foreign exchange rate associated with foreign loan repayment, the electric energy purchased from foreign countries, goods and services which are contracts to buy foreign currency at a pre-agreed exchange rate on a specified future time. Forward foreign exchange contracts are translated into functional currency at the exchange rate prevailing at the statements of financial position date and are recognized the differences that occur in statements of income on maturity date.(TRANS LATION) - 86 - As at December 31, 2016, EGAT has no remaining forward foreign exchange contract. 11.2 Fair Value of Financial Assets and Liabilities As at December 31, 2016 and 2015, fair value and book value of financial assets and liabilities are as follows:

Unit : Million Baht Consolidated financial statements Book Value Fair Value Level 1 Level 2 Level 3 Total As at December 31, 2016 Current Held for trading securities 482.47 482.47 - - 482.47 Current portion of long-term local loans (3,035.41) - (3,071.84) - (3,071.84) Current portion of long-term local loans (EGATIF) (570.30) (570.30) - - (570.30) Current portion of long-term foreign loans (113.38) - (127.66) - (127.66)

Non-Current Infrastructure fund (EGATIF) 5,422.30 5,422.30 - - 5,422.30 Equity securities available for sale 3,730.28 3,730.28 - - 3,730.28

Long-term local loans (51,372.56) - (55,437.57) - (55,437.57) Long-term local loans (EGATIF) (19,709.83) (19,709.83) - - (19,709.83) Long-term foreign loans (3,028.69) - (2,991.52) - (2,991.52) Debentures (17,327.20) - (18,127.18) - (18,127.18) Contracts Interest rate swap and cross currency swap contracts - - (3,454.70) - (3,454.70)

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Unit : Million Baht Consolidated financial statements Book Value Fair Value Level 1 Level 2 Level 3 Total As at December 31, 2015 Current Held for trading securities 418.30 418.30 - - 418.30 Current portion of long-term local loans (6,635.24) - (6,762.06) - (6,762.06) Current portion of long-term local loans (EGATIF) (414.48) (414.48) - - (414.48) Current portion of long-term foreign loans (179.30) - (242.23) - (242.23) Non-Current Infrastructure fund (EGATIF) 5,370.16 5,370.16 - - 5,370.16 Equity securities available for sale 4,270.19 4,270.19 - - 4,270.19 Long-term local loans (50,007.97) - (55,065.51) - (55,065.51) Long-term local loans (EGATIF) (20,440.52) (20,440.52) - - (20,440.52) Long-term foreign loans (639.82) - (570.23) - (570.23) Debentures (17,282.35) - (17,978.78) - (17,978.78) Contracts Forward contracts - - 1.08 - 1.08 Interest rate swap and cross currency swap contracts - - (3,927.01) - (3,927.01)

205

(TRANSLATION) - 88 -

Unit : Million Baht Separate financial statements Book Value Fair Value Level 1 Level 2 Level 3 Total As at December 31, 2016 Current Current portion of long-term local loans (3,005.46) - (3,041.89) - (3,041.89) Current portion of long-term local loans (EGATIF) (570.30) (570.30) - - (570.30) Current portion of long-term foreign loans (113.38) - (127.66) - (127.66) Non-Current Infrastructure fund (EGATIF) 5,422.30 5,422.30 - - 5,422.30 Long-term local loans (51,362.59) - (55,427.60) - (55,427.60) Long-term local loans (EGATIF) (19,709.83) (19,709.83) - - (19,709.83) Long-term foreign loans (461.68) - (424.51) - (424.51)

Unit : Million Baht Separate financial statements Book Value Fair Value Level 1 Level 2 Level 3 Total As at December 31, 2015 Current Current portion of long-term local loans (5,405.30) - (5,507.00) - (5,507.00) Current portion of long-term local loans (EGATIF) (414.48) (414.48) - - (414.48) Current portion of long-term foreign loans (179.30) - (242.23) - (242.23) Non-Current Infrastructure fund (EGATIF) 5,370.16 5,370.16 - - 5,370.16 Long-term local loans (49,968.05) - (55,025.59) - (55,025.59) Long-term local loans (EGATIF) (20,440.52) (20,440.52) - - (20,440.52) Long-term foreign loans (639.82) - (570.23) - (570.23)

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Financial instruments carried at fair value Fair value hierarchy The table above analyses recurring fair value measurements for financial assets and liabilities. These fair value measurements are categorised into different levels in the fair value hierarchy based on the inputs to valuation techniques used. The different levels are defined as follows. Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities that the group can access at the measurement date. Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3: unobservable inputs for the asset or liability. EGAT determines Level 2 fair values for short-term and long-term loans, derivatives financial instruments and also fixed interest rate bonds by calculating the present value of the estimated cash flow, which based on the nearby term discount rate. Forward foreign exchange contracts, interest rate swap and cross currency swap contracts are calculated by financial institutions, which are contractor of EGAT.

12. Infrastructure Fund On November 27, 2014, the Board of EGAT approved model of infrastructure fund structure for North Bangkok Combined Cycle Power Plant - Block 1 which required EGAT to quarterly remit net revenue (availability of payments (AP1) net insurance premium) of North Bangkok Combined Cycle Power Plant - Block 1 throughout the contractual period, according to the contract between EGAT and such fund. The amount of fund is not less than Baht 19,000 million, and the estimated contractual period is 20 years. EGAT will record receipt from sale of investment units in amount of Baht 20,855 million (amount of investment units 2,085.50 million at par value of Baht 10 per unit) as liabilities. The remitted net revenue will be paid in respect of the return and repayment of investment until the maturity date of the contract. For the purpose that EGAT appointed the following representatives. 1. Krung Thai Asset Management Public Company Limited (KTAM) as the fund manager 2. Siam Commercial Bank as the financial advisor and underwriter EGAT hold the investment in amount of Baht 5,213.75 million (amount of investment units 521.38 million), representing 25% of the units sold and has been prohibited to sell investment units for 5 years. In 2016 and 2015, EGAT received dividend income in the amount of Bath 268.51 million and Bath 57.35 million respectively.

(TRANSLATION) 207 - 90 -

As at December 31, 2016 and 2015 EGAT has outstanding current portion of long-term loans from infrastructure fund in the amount of Bath 570.30 million and Bath 414.48 million, long-term loans from infrastructure fund in the amount of Bath 19,709.83 million and Bath 20,440.52 million and accrued interest expense in the amount of Bath 459.35 million and Bath 353.77 million.

13. Subsequent Events Krabi coal-fired power plant According to the Thailand Power Development Plan 2012 - 2030 (PDP 2010) Revision 3, there is a policy to develop Krabi coal-fired power plant with 870 MW of installed electricity generation capacity and Commercial Operation Date (COD) in December 2019 in order to support economic growth in Southern region of Thailand at average annual growth 5 - 6%. At present, the main power plants to generate electricity in Southern region of Thailand are insufficient so it needs to rely on electricity from Central region of Thailand via transmission line. Thus, developing more power plants in the southern part will strengthen its power system security and improve nation’s fuel diversification. On February 17, 2017, The National Energy Policy Council (NEPC) approved to construct Clean Coal Technology power plant in Krabi province as PDP 2010 under the condition of strictly complying with the law in implementing the power development project since NEPC found that this project is safe and worth to invest. On February 27, 2017, Office of Natural Resources and Environmental Policy and Planning (ONEP) sent an official letter to EGAT Governor with the subject of doing analysis report about environmental impact for project or business that may cause a severe effect to community in environmental quality, natural resources and health in EGAT’s Krabi Thermal Power Plant (Extension No.1). The main purpose of this letter is to inform EGAT to review the Environmental Impact Assessment (EIA) and Environmental Health Impact Assessment (EHIA) by emphasizing on public participation in making a decision on Krabi Coal-Fired Power Plant. As EGAT has to follow these processes, the project construction may be delayed and may affect to the stability of power system in Southern Thailand. Nevertheless, EGAT does not have any obligation with outsiders about financing and hire contract to construct the project.

Dividend received On February 23, 2017, infrastructure fund for North Bangkok Combined Cycle Power Plant - Block 1, Electricity Generating Authority of Thailand, declared dividend payment and shareholders book closing which became effective on February 28, 2017 in amount of Baht 0.12 per investment unit. EGAT has invested in amount of 521.38 million units so dividend income received is Baht 62.57 million. 208 (TRANSLATION) - 91 -

On March 1, 2017, Ratchaburi Electricity Generating Holding Public Company Limited, declared dividend payment and shareholders book closing which became effective on March 6, 2017 in amount of Baht 1.25 per share. EGAT has invested in amount of 652.50 million shares so dividend income received is Baht 815.63 million. On March 2, 2017, Electricity Generating Public Company Limited, declared dividend payment and shareholders book closing which became effective on March 7, 2017 in amount of Baht 3.25 per share. EGAT has invested in amount of 133.77 million shares so dividend income received is Baht 434.76 million. 14. Reclassification Transactions EGAT reclassified some transactions in the financial statements for the year ended December 31, 2015 for conformity with the presentation of the financial statements for the year ended December 31, 2016. 15. Issuance Dated of Financial Statements Governor of EGAT approved these financial statements for issuance on March 15, 2017.

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Audit Fee

EGAT's financial statements are audited by the Office of the Auditor General of Thailand. For Fiscal year 2016, audit fees and expenses total Baht 4,420,000 comprising Baht 2,600,000 fee for the annual audit, Baht 1,500,000 fees for the reviews of quarterly financial statements totaling three quarters or Baht 500,000 for each quarter and Baht 320,000 fees for the audits of account unbundling.