“Caring” Embraces Commitment and Responsibility

“Caring” embraces Commitment and Responsibility.

EGAT makes it a top priority policy to run business and operations with full responsibility and accountability to all stakeholders, especially community, society and environment, throughout the processes in all of our operations. All of EGAT people are individually accountable for ethical conducts and strictly following all applicable laws and regulations with the ultimate aim of community and public satisfactions. “Caring” embraces Commitment. Because we CARE, EGAT is committed to strengthening Thailand’s power supply system by carefully planning and acquiring long-term dependable power sources and fuels, as well as generating and transmitting electricity to meet the country’s needs with efficiency and reliability at a reasonable price. Commitment to Strengthening Power Security “Caring” embraces Honesty. EGAT places an emphasis on social and environmental management to achieve sustainable development by strictly complying with all environmental regulations and laws throughout its development and operational processes - from the early stage of project planning and design as well as during the construction and operation of the projects. More importantly, public involvement processes are integrated into all phases of the projects in the form of community and public consultations, project monitoring, etc. to attend to and incorporate the public and community views, concerns and issues in the development processes with the aim of creating better understanding as well as community trust and acceptance. Commitment to Healthy Community and Environment “Caring” embraces Compliance. EGAT has continuously improved its operational and environmental management processes. All of our power plants and associated facilities have adopted quality management and environmental management systems certified by international standards to efficiently prevent, monitor and control environmental impacts caused by our operational processes to strictly comply with all applicable environmental regulatory standards in all aspects, such as air quality, water quality, noise level, community opinions, etc. Commitment to Environmentally-Sound Operation and Quality Control “Caring” embraces Concern. EGAT cares for the future. We have been strengthening research and development on advanced power technologies which are more efficient and friendly to the environment in order to achieve sustainable energy for future needs. Commitment to Continuous Technology Development “Caring” creates long-lasting Friendship. Not only do EGAT’s power plants provide the needed electricity for the whole country, but as a member of the communities, we are constantly committed to environmentally safe and clean operations and working together with the local people to develop the communities where we work, with an ultimate goal to bring happiness to all Thais. Commitment to Happy Thai Society 12

Vision

To be a world-class organization in electricity business Mission To generate, acquire, transmit and sell electric energy; conduct electricity related businesses and other businesses related to EGAT’s activities including production and sale of lignite and lignite byproducts. Core Culture

Loyalty

Excellence

Integrity Strategic Direction

• Strengthening core businesses

• Building growth in related businesses

• Being a caring organization with sound corporate governance and due care for society and environment

• Being a dynamic, high performance organization 13

Financial Overview

Unit : Million Baht

2011 2010

Operating Performance

Revenues from sales and services 418,445.19 405,445.06

Income from sales and services 35,732.56 38,648.62

Gains (losses) on foreign exchange (355.79) 910.36

Interest expenses 5,424.38 4,457.36

Net income - EGAT 31,818.73 36,955.67

Net income - minority interest 2,426.04 2,863.18

Financial Status

Total assets 495,534.27 469,680.82

Land, buildings and equipment - net 273,536.47 263,009.39

Total liabilities 193,204.49 185,006.40

Long-term debts 84,591.84 82,905.92

Equity and minority interest 302,329.77 284,674.41

Financial Ratios

Ratio of gross profit to net sales (%) 12.45 13.37

Ratio of net profit to net sales (%) 7.60 9.11

Rate of return on assets (%) 6.59 7.83

Debt to equity ratio (Times) 0.64 0.65

Time interest earned (Times) 7.65 10.22 14

Message from Chairman

As the country development grows, the way and quality of life of people are increasingly dependent on electricity. Today, electricity consumption accounts for approximately one-third of the global energy consumption and tends to grow higher. Energy security and sustainability has therefore been considered one among national key strategies of most countries.

Lessons learned from the past global energy crises as well as natural disasters and power plant accidents have stimulated greater awareness among various countries of new energy options to ensure energy security. Among major strategies adopted by many countries, especially countries in EU and North America is the interconnection of transmission grids for energy trade and exchange among countries within a region.

Likewise, ASEAN member countries have been preparing to move toward an ASEAN One Com- munity by the year 2015 as espoused in the ASEAN Vision 2020. The ASEAN Vision 2020 also features two main schemes, namely the ASEAN Power Grid and the Trans-ASEAN Gas Pipeline (TAGP).

The interconnection of electricity grids among member countries or the ASEAN Power Grid will enhance energy reliability and power quality region-wide and will provide the ASEAN population of over 560 million with more access to electricity resources, especially for millions of those who presently live in remote areas without electricity. The interconnection will enable each member country to share generation reserve margins and thus saving substantial capital investment for building their own generating facilities. This will also contribute to sustainable production and consumption of regional energy resources. However, due to the diverse socio-economy, power and transmission systems as well as geographical differences among ASEAN countries, the establishment of the ASEAN Power Grid may take more time to be realized than the power pool in EU. A concerted effort and close cooperation of all member countries will be required to address confronting problems in order to achieve the set common goal.

Strategically situated in the heart of the region, Thailand will significantly benefit from the ASEAN Power Grid. Yet interconnection arrangements have to be further implemented, such as the development of smart grid infrastructure to improve efficiency and communications and reduce system line loss. This will also contribute to greater opportunities and values from the grid interconnection and its readiness for the integrated ASEAN Economic Community with free flows of open trade and investment.

On the other hand, too heavy reliance on imported electricity or any single energy option might also pose higher risks on the country’s security of energy supply. The planning of the national energy future therefore has to be well-balanced and based on diverse energy resources. The 2011 Fukushima nuclear power accident has unavoidably affected public trust in nuclear power projects in Thailand and many other countries. EGAT had to consider an alternative power development plan by adding more power capacities from natural gas and coal fired power projects. It also has closely observed rapid changes of the global energy situations to be able to adapt its strategies appropriately.

Thailand’s electricity situations in 2011 had been affected by the global economy as well as natural disasters. Following the great earthquake and Tsunami disaster in Japan, the manufacturing sector in Thailand had been halted by the shortage of raw materials from Japan. In addition, the severe flood disasters in key economic areas including Bangkok and several provinces in the central region had interrupted the supply chain of major industries and thus caused severe damages to major industrial estates and factories. As a result, the country’s electricity demand in 2011 barely changed from the preceding year. The electricity growth is however estimated to rebound in 2012 as driven by the accelerating public consumption and investment as well as the growing demand in the industrial and service sectors resulting from recovery measures and processes after the flood disaster.

For EGAT’s operation in 2011, EGAT has successfully maintained its high quality power supply service. In 2011, the country’s total installed generating capacity increased only 1.70 percent from the previous year to 31,446.72 megawatts (MW), consisting of 14,998.13 MW or 47.69 percent from EGAT’s power plants and 16,448.59 MW or 52.31 percent from private power plants and power imported from neighboring 15

countries. Compared with the year 2010, the power capacity of EGAT’s own generation fleet remained the same whereas the private sector power capacity increased 3.31 percent. The country’s gross energy generation and purchase decreased 0.77 percent from the prior year to 158,963.30 million kilowatt- hours (kWh), comprising 70,467.26 million kWh or 44.33 percent from EGAT’s generating facilities and 88,496.04 million kWh or 55.67 percent purchased from private power producers and neighboring countries. The country’s energy mix for electricity generation included 67.03 percent from natural gas, 18.65 percent from coal, 5.00 percent from hydropower, 1.44 percent from renewable energy, 1.07 percent from oil, and 6.81 percent from imported electricity. EGAT’s electric energy sales declined accordingly by 0.84 percent to 154,817.58 million kWh.

The year 2011 marked an auspicious occasion of His Majesty King Bhumibol’s 84th Birthday Anniversary. EGAT has launched a host of social projects throughout the year to express our gratitude to our beloved King. Among its major projects is a Headwaters Reforestation Project in which public and private organizations, students, and general public were also invited to participate in EGAT’s tree planting activities at various headwaters forest areas near eight dams and one power plant - all of which were granted the official name places by His Majesty the King. Its Headwaters Reforestation project received overwhelming public interest, with various groups, i.e. public and private organizations, youth, and individual people volunteering and participating in the tree sapling planting activities. A total of 1,035,368 saplings were planted and will be nursed to grow into strong trees to help preserve watershed forests in the long run.

Flood relief operation was another primary mission of EGAT in 2011. The massive flood crisis hit- ting several provinces in late 2011 prompted EGAT and its employees to assist flood-hit communities near its offices and plants as well as other flood victims in other provinces in various ways, such as donations, supplying food, water, shelter, transports, and other necessary stuff. After flood waters receded, EGAT and its employee volunteers had also launched clean-up campaigns, working together with the communities to clean up such public places as temples and mosques to help restore communities. These volunteer activities by EGAT people demonstrate EGAT’s true commitment to give back to society.

Throughout its operations, EGAT has always been committed to running its business and operations with sound corporate governance and complete accountability to all stakeholders. Reflecting this is the State-Owned Enterprise (SOE) Awards for Outstanding Organization Management which EGAT has been awarded for the fifth consecutive year in 2011. EGAT also won the 2011 SOE Awards in the category of Outstanding Innovation for its Solar-Weighted Tracking System Development.

On behalf of EGAT, I would like to express our grateful thanks to the government, general public, all parties concerned both in public and private sectors for their continued support and cooperation which have significantly contributed to our successful operations. We are firmly committed to continuously powering the nation with quality electricity service at a reasonable price while taking good care of community, society and environment.

(Dr. Pornchai Rujiprapa) Chairman, Board of Directors Electricity Generating Authority of Thailand (EGAT) 16

Report of the Audit Committee

EGAT Audit Committee consists of three directors. During January - September 2011, members of the Committee included Mr. Lae Dilokvidhyarat as Chairman, Mr. Arkhom Termpittayapaisith and Mr. The- van Vichitakul as members of the Committee. In November 2011, a new Audit Committee was appointed, consisting of Mr. Lae Dilokvidhyarat as Chairman, Mr. Porametee Vimolsiri and Mr. Prawit Sarakitprija as members. EGAT Assistant Governor - Internal Audit Bureau served as secretary of the Committee.

The Audit Committee has performed its duties in accordance with the procedures set forth in the Audit Committee Charter to enhance good corporate governance. During 2011, the Committee convened totally 11 meetings to discuss relevant agenda with EGAT management and independent auditors (Office of the Auditor General of Thailand). The significant issues are summarized as follows:

• Review with Deputy Governor - Account and Finance and independent auditors on EGAT’s annual financial statements for the year ended December 31, 2010 and the quarterly financial statements for the periods ended March 31, 2011, June 30, 2011 and September 30, 2011 and comparative financial statements for the respective periods of the year 2010 to give an opinion on the reliability and accuracy of the financial statements in accordance with generally accepted accounting principles before submitting them to the Board of Directors

• Review EGAT’s risk management and internal control system and processes to consider the sufficiency and suitability to ensure the coverage of all significant issues

• Review quarterly internal audit reports of EGAT and annual audit reports of EGAT’s subsidiaries and continuously follow up correction and improvement in accordance with audit comments

• Review the evaluation reports of the Governor’s performance

• Discuss with the Governor and independent auditors in developing internal control systems

• Discuss with top management and management of each business unit to consider risk management, internal control systems and monitoring processes of key activities within their respective units to provide the best interests for EGAT’s operations

• Discuss with independent auditors on the scope and processes of their auditing practices to achieve good coordination and reduce duplication of efforts

• Review an annual audit plan for 2012 and a 5-year strategic audit plan (2012-2016) as well as sufficiency of the Internal Audit Bureau resources, and assessment of Internal Audit Bureau’s performance 17

• Review the appropriateness of the Audit Committee Charter, the Internal Audit Charter and the Internal Audit Work Manual

• Prepare and submit the Committee’s performance reports to EGAT Board of Directors, the Ministry of Energy, and the Ministry of Finance

• Set meeting schedules and agendas for the whole year of 2012 to cover all issues within the remit of the Audit Committee in order to ensure the effectiveness of the meetings

• Conduct an annual self assessment including both individual member and entire committee self assessments based on the guidelines set for state enterprises by the Ministry of Finance and report the evaluation results to the Board of Directors to enhance the effectiveness, transparency and reliability of the Committee’s performance.

The Committee believed that throughout the year 2011 EGAT had maintained the effective risk management, internal control systems and good corporate governance practices which enabled EGAT’s operations to meet the set objectives. EGAT’s financial statements were also prepared in accordance with generally accepted accounting principles and were presented with adequate information disclosure. EGAT also operated in complete compliance with laws, rules and regulations with no significant deficiency. In performing their duties, each member of the Committee had expressed their opinions independently and provided straight recommendations to management and concerned parties to ensure the best interests of all related parties.

(Mr. Lae Dilokvidhyarat) Chairman of the Audit Committee January 23, 2012 18

Economic and Electricity Overview

Thailand’s electricity situation fluctuated throughout the year 2011. However, overall demand and supply remained the similar levels close to those of the previous year due mainly to the economic slow- down and extreme weather events.

Economic and weather conditions which usually are the main drivers of electricity demand growth, had significant impacts upon electricity demand. The year 2011 saw several extreme weather events. Average temperatures in all parts of the country were relatively lower than the same period of the previous year. The normally hot month of March saw cooler weather in 2011 resulting from the cold weather spells during the first few months of the year and La Niña effects which made most parts of the country much rainier and cooler than normal, causing heavy rains and flooding in several parts of the country.

The electricity growth decline was attributable to the extreme weather events coupled with changes in the economic conditions affected by the global economic recovery stall, especially that of Japan resulting from the Earthquake and Tsunami disaster in March 2011 which had severely affected the production of several major industries in Thailand due to the shortage of raw materials from Japan. Electricity maximum demand which usually occurs during the first half of the year was slightly lower than the same period last year.

It was not until July 2011 that electricity demand began to pick up growth during July - September as major manufacturing industries resumed their production after 2 - 3 months of raw material shortage. Heavy rains and flooding which started in the second half of the year in the lower northern and upper central parts of the country during the 3rd quarter of the year did not affect the electricity growth since most flooded areas were farmland and residential areas. During the 3rd quarter of 2011, the country’s electricity demand and consumption resultantly grew 2.52 percent and 3.34 percent compared with the same period of the prior year.

However, electricity growth contracted again in the last quarter of 2011 as the country’s worst flood disaster which struck several central provinces and Bangkok since the end of the 3rd quarter through the 4th quarter of the year had severely affected production in many sectors, especially those in industrial estates which are the main production base and suppliers of raw materials for automobile, electronics, textile, food and beverages, etc. The flooding had interrupted the supply chain of major industries in other provinces and in other countries. The devastating flood damage of those major industrial estates in particular had significantly contributed to the contraction of the country’s electricity demand and consumption during the last quarter of 2011 which decreased 1.08 percent and 3.60 percent from the same period in 2010.

In all, the country’s system peak generation requirement in 2011 stood at 23,900.21 megawatts (MW), occurring on May 24, 2011 at 14.00 hours. This marked a 0.46 percent decline compared with the 2010 record high peak demand level. Total energy generation requirements throughout the year decreased slightly from the prior year by 0.77 percent to 158,963.30 million kilowatt-hours (kWh). The country’s power system had a total installed capacity of 31,446.72 MW, 1.70 percent higher than the previous year. 19

For the year 2012 outlook, according to the National Economic and Social Development Board (NESDB), the country’s economic growth will expand in the range of 4.5 - 5.5 percent, against the 1 percent GDP growth in 2011. Main driving factors for the projected economic growth include the higher public and private consumption and investment on the urgent need to restore infrastructure affected by the 2011 flooding. In addition, the restoration measures which include financial and tax subsidy schemes will significantly contribute to the recovery process of agricultural, manufacturing and service sectors. This will in turn increase domestic employment, which was in line with the government policy to uplift the income of the people. Likewise, Thailand’s electricity demand is projected to grow by 5 - 6 percent in line with the economic recovery. 20

Operations

Generation System

EGAT is the biggest power producer in Thailand owning and operating different types of power plants. It is also the country’s single buyer purchasing wholesale electric power from private power producers and from neighboring countries.

In 2011, the installed capacity of EGAT’s own generation fleet remained at 14,998.13 MW. New capacity added to the country’s power system was derived from the power import from Laos’ 596.60 MW Nam Ngum 2 hydropower plant which started selling power to Thailand since March 26, 2011. On the other hand, EGCO’s Khanom thermal power plant unit 1 of 69.90 MW was retired from the system on June 19, 2011. Hence, at the end of 2011, the country’s total installed generating capacity increased from the preceding year by 526.70 MW or 1.70 percent to 31,446.72 MW, comprising:

• EGAT’s power plants 14,998.13 MW (47.69 %) • Power purchase 16,448.59 MW (52.31 %)

The purchased power capacity included 12,081.69 MW (38.42 percent) from domestic independent power producers (IPPs), 2,182.30 MW (6.94 percent) from small power producers (SPPs), and 2,184.60 MW (6.95 percent) imported from neighboring countries.

Energy Generation and Purchase

In the year 2011, the country’s gross energy generation and purchase totaled 158,963.30 million kilowatt-hours (kWh), 0.77 percent less than the prior year. Of the total electricity, 70,467.26 million kWh (44.33 percent) was generated by EGAT’s own power plants and 88,496.04 million kWh (55.67 percent) was purchased from private power producers and neighboring countries. Energy mix for the country’s electricity generation in 2011 consisted of:

(million kWh)

• Natural gas 106,555.59 (67.03 %) • Coal 29,646.99 (18.65 %) • Electricity import 10,819.41 (6.81 %) • Hydro 7,944.81 (5.00 %) • Renewable energy 2,290.71 (1.44 %) • Oil 1,705.79 (1.07 %)

Total 158,963.30 21

Fuel Utilization

Natural gas remained a primary energy source for the country’s and EGAT’s electricity generation. Gas supplies for EGAT’s generation were derived from various gas fields, including the Gulf of Thailand, Nam Phong, Phu Hom, Sirikit and Myanmar. In 2011, natural gas consumption by EGAT’s power plants decreased 11.04 percent from the preceding year to 380,780 million cubic feet due mainly to the dropping electricity demand during the country’s severe flood crisis.

In addition to natural gas, lignite also is another principal domestic fuel source for EGAT’s electricity generation. The consumption of lignite increased 4.63 percent to 17.16 million tons supplied by EGAT’s Mae Moh lignite mine.

Despite its continuous effort to minimize the dependence on the high priced fuel oil for power generation, EGAT had to increase its heavy oil-based generation during June - August 2011 to substitute the shortfall of gas supplies caused by PTT’s natural gas leak incident in the Gulf of Thailand pipeline from June 25 to August 15, 2011. Consequently, EGAT’s fuel oil consumption more than doubled from the previous year to 314.35 million liters in 2011. Its utilization of diesel oil however continued to decrease by 10.86 percent to 11.08 million liters.

Energy Sales

EGAT sells virtually all of electric energy to two distributing authorities, namely the Metropolitan Electricity Authority (MEA) and the Provincial Electricity Authority (PEA). In 2011, its total electric energy sales decreased 0.84 percent from the prior year to 154,817.58 million kWh in line with the lower electricity consumption. Its electricity sales consisted of 106,034.06 million kWh of energy (68.49 percent) sold to PEA, 45,734.94 million kWh (29.54 percent) to MEA, 1,580.60 million kWh (1.02 percent) to a small number of direct customers, 1,335.22 million kWh (0.86 percent) to neighboring countries, and 132.76 million kWh (0.09 percent) to customers purchasing electricity for temporary and standby use.

New Electricity Tariff Structure

As an energy price regulator, the Energy Regulatory Commission (ERC) announced a new electricity tariff structure which became effective since July 2011 following the Cabinet resolution on May 3, 2011. The new tariff structure to replace the old one which has been in use since 2005 is composed of bulk supply or wholesale tariff rates which EGAT charges to MEA and PEA and its direct customers, and retail tariff rates applied to end users nationwide. Major features of the new electricity tariff rates are as follows:

Retail Tariff The new retail tariff is derived from the existing retail tariff which has been applied since October 2005 added by the recent 0.9581 Baht/kWh rate of Automatic Tariff Adjustment Mechanism (Ft) Charge applied during May - August 2011. The ERC has also allowed the costs incurred by the Gov- ernment’s social policy of fee exemption for the underprivileged residential consumers using less than 90 kWh/month to be transferred to all categories of electricity consumers except for residential, small general services and agricultural pumping.

Bulk Supply Tariff (BST) The new bulk supply tariff is formulated from the existing wholesale tariff used since 2005 added by the recent 0.9489 Baht/kWh rate of Ft charge applied during May - August 2011 and reduced by the Power Development Fund contributed by EGAT according to Section 97 (1) of the Energy Industry Act.

Automatic Tariff Adjustment Mechanism (Ft) The ERC has approved the new Ft rate by ad- justing the base fuel cost (BFC) in accordance with the former retail Ft in amount of 0.9581 Baht/kWh.

EGAT’s accrued Ft revenue in the year 2008 amounting to 19,566 million baht has been gradually collected from the Ft tariff from the year 2009 to February 2011. 22

Ft Tariff and Average Retail Tariff in 2011

Month Ft Tariff Average Retail Tariff* (Baht/kWh) (Baht/kWh)

January - April 0.8688 3.21

May - June 0.9581 3.20

July - August - 0.0600 3.14

September - December - 0.0600 3.14

* inclusive of Ft tariff

EGAT’s Generation Fleet

In 2011, EGAT’s generating facilities provided a combined installed capacity of 14,998.13 MW, accounting for 47.69 percent of the country’s system installed capacity. Its generation fleet is composed of various types of power plants - from large-sized thermal, combined cycle, gas turbine, hydropower, diesel, to such small-sized renewable energy power plants as wind turbines, solar cells, and geothermal power plants.

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

Combined cycle 6,866.00 21.83

Thermal 4,699.00 14.94

Hydro 3,424.18 10.89

Renewable 4.55 0.02

Diesel 4.40 0.01

Total 14,998.13 47.69 23

EGAT Power Plant Performance

2008 2009 2010 2011

Heat rate (kj/kWh) 9,411.23 8,871.69 8,835.93 8,694.21

Generating weighted equivalent availability factor - GWEAF (%) 91.35 91.32 90.72 92.75

Planned outage factor - POF (%) 5.40 4.23 5.48 3.39

Unplanned outage factor - UOF (%) 2.15 3.19 2.46 2.58

The overall performance of EGAT’s generating power plants fared better than the prior year both in terms of heat rate and availability factor. Emergency forced outages of major power plants remained at a low rate. However, the planned outage for power plant maintenance decreased due to the country’s severe flood crisis during October - November 2011. This caused the maintenance schedule of certain power plants to be postponed to the next year.

Transmission System

EGAT is also responsible for operating and controlling the dispatch of power generation of EGAT’s and private power plants and supplying bulk electricity to distributing authorities via its transmission network to efficiently and reliably satisfy the country’s demand in an environmentally responsible manner and at a reasonable price.

In 2011, EGAT has continually implemented its transmission system expansion or upgrade projects to reinforce capability and reliability of the power supply system. Existing transmission lines and associated facilities have also been properly maintained to ensure efficiency and continuity of the power supply service. Major transmission system projects which came online during the year included the 500 kV Nong Chok - On Nut double circuit lines, the 230 kV Krabi - Phangnga 2 - Phuket 3 double circuit lines, two new substations – Phuket 3 Substation and Phangnga 2 Substation, as well as the installation of new transformers at certain existing and new substations, etc.

At the end of 2011, EGAT’s electric transmission network consisted of 30,517.82 circuit-kilometers of high voltage transmission lines with voltage levels ranging from 500, 300, 230, 132, 115 to 69 kV and 210 substations with 534 delivery points and a total transformer capacity of 83,430.19 megavolt-amperes (MVA).

In addition to the transmission expansion and upgrade, EGAT has continuously maintained and repaired existing transmission lines, substations and associated equipment to ensure their service availability and maintain a satisfactorily high level of reliability. Works carried out during the year included insulator cleaning for the 500 kV lines especially in the areas highly exposed to polluted environments, drills and exercises of emergency preparedness and black start restoration plans, analytical review of the power supply system to properly prepare transmission maintenance and development plans, and planning power dispatch in line with transmission constraints and system requirements, implementing preventive measures to minimize interruption of supply caused by equipment malfunctions, human errors, etc. It has also stepped up public communication programs to educate and provide information to local communities in effort to reduce losses and damages to transmission facilities caused by community activities and wire theft. In addition, EGAT has properly addressed concerns and complaints of all stakeholders with regard to power transmission. 24

EGAT had successfully maintained its high quality and reliability of electricity supply throughout the year 2011. Despite delays of certain transmission system construction projects and other transmission constraints, still EGAT has successfully addressed those problems and achieved its target in lessening power interruptions in the bulk supply system both in terms of severity and time duration. The quality of the power supply service has also been maintained, with frequency being controlled within the band of 49.775 - 50.225 Hz and system voltage being steadily controlled within the range of 95 -105 percent of nominal voltage.

Forced outages occurred in 2010 totaled 76 times including 22 times of transmission line failures and 54 times of substation equipment failures. The interruptions were mainly caused by malfunctions of substation equipment (22 times), by animals (24 times), human errors - either staff or other people (11 times), environmental conditions (8 times), supply system interruption (1 time) and unidentified reasons (10 times).

EGAT Bulk Power Supply System Performance in 2011

System interruption severity - System Minutes (MW-minutes/MW) 3.6186

System average interruption frequency index - SAIFI (no. of occurrences/delivery point) 0.3293

System average interruption duration index - SAIDI (minutes/delivery point) 14.4251

System availability - SA (%) 99.9973

Transmission circuit availability (%) 99.98675

Transformer availability (%) 99.32496

Transmission System Management during Flood Crisis

The heavy rains and severe flooding which afflicted many parts of the country during July – Decem- ber 2011 had seriously affected most sectors of the country including EGAT and its transmission system. Nine high voltage substations in central provinces as well as 6,129 transmission towers in several northern, northeastern and central provinces were badly damaged by floods. Large-sized electricity consumers in industrial estates which also included EGAT’s direct customers had also been seriously affected.

In response to the flood crisis, EGAT had promptly implemented preventive and emergency preparedness measures to prevent and minimize damages caused by flooding in order to maintain the quality and continuity of power supply service. In Bangkok and suburban areas, preventive measures had been intensified for its high voltage substations located in flood-prone areas. Preventive and countermeasures against flood included erection of flood walls and sand bags to protect transformers and substation equipment from flood damage, preparing emergency switching plans, close and continuous monitoring of flood conditions, etc. An emergency operation center was also set up to specially monitor the system’s power dispatch and transmission during flooding to maintain continued power supply and/or quickly address the problems to quickly restore the power supply service in flooded areas to normalcy. 25

Nature of Business of EGAT and Affiliates

EGAT’s Business Operation

EGAT is a state-owned enterprise under the Ministry of Energy and Ministry of Finance. Its main operations focus on electricity generation and transmission business as well as electricity sales to Metro- politan Electricity Authority (MEA), Provincial Electricity Authority (PEA), a number of direct customers by law and neighboring countries. It also offers a variety of energy-related services to external customers and invests in other companies whose businesses are related with EGAT’s existing core business. 1. Electricity Business 1.1. Generation

EGAT owns and operates various types of power plants located in 39 sites countrywide with a total installed capacity of 14,998.13 MW. Its generation fleet consists of 3 thermal power plants, 6 combined cycle power plants, 21 hydropower plants, 8 renewable energy power plants and a diesel power plant. 1.2. Power Purchase

In addition to operating its own power plants, EGAT also pur- chases wholesale electric power totaling 16,448.59 MW from private power producers under long-term power purchase agreements, comprising 10 independent power producers (IPPs) totaling 12,018.69 MW, small power producers (SPPs) totaling 2,182.30 MW and neighboring countries, namely Lao People’s Democratic Republic and Malaysia totaling 2,184.60 MW. 1.3. Transmission

EGAT sells and transmits bulk electricity both generated by its own power plants and purchased from private power producers, to two distributing authorities, namely Metropolitan Electricity Authority (MEA) and Provincial Electricity Authority (PEA). EGAT’s transmission network which reaches all parts of the country comprises transmission lines of different voltages ranging from 500 kV, 230 kV, 132 kV, 115 kV, 69 kV as well as the 300 kV high voltage direct circuit (HVDC) lines. MEA and PEA then deliver electricity to their retail customers nationwide. EGAT also directly sells electricity to a small number of large-sized industrial customers and to power utilities in neighboring countries, namely Laos at 115 kV and 22 kV voltage, Malaysia at 300 kV voltage (HVDC), and Cambodia at 115 kV voltage.

2. Other Businesses 2.1 Service Business

EGAT also engages in energy-related businesses providing a wide range of energy-related services to other companies and organizations. Its services include power plant operation and maintenance (O & M) service, chemicals, engineering and construction consulting, transmission and distribution system maintenance, and environment-related service, etc. 26

2.2 Investment

EGAT has invested in electricity generation and energy related business. At present, EGAT has been investing in five companies as follows:

Subsidiary Company

1. Ratchaburi Electricity Generating Holding Public Company Limited (RATCH)

Nature of Business

RATCH was established as a holding company on March 7, 2000. As a holding company, RATCH earns dividends from its invested companies as main revenue.

The company’s main business involves the investment and development of power generation business using various energy resources, i.e. natural gas, oil, coal, hydro and other alternative energies, such as wind power. The company is also expanding into other related businesses, including operation and maintenance service, coal mining, as well as joint venture in various projects at home and abroad.

At present, RATCH has a total generating capacity of 5,135.31 MW comprising 4,349.20 MW from its local power sources and 786.11 MW from its overseas power projects.

Shareholding

As at December 31, 2011, RATCH had a total issued and paid-up registered capital of 1,450 million shares (equivalent to 14,500 million baht). Its ownership structure is composed of 45% stake held by EGAT and 55% held by general public.

2. EGAT International Company Limited (EGATi)

Nature of Business

EGATi was established by EGAT on December 18, 2007. EGATi aims to directly invest or set up subsidiaries to invest in power development projects in neighboring countries in order to provide energy supplies to Thailand.

Shareholding

As at December 31, 2011, EGATi had a total issued and paid-up registered capital of 300 million baht wholly owned by EGAT. 27

Associated Company

1. Electricity Generating Public Company Limited (EGCO)

Nature of Business

EGCO, the first independent power producer (IPP) in Thailand, was established by EGAT on May 12, 1992. As a holding company, EGCO earns dividends from its affiliates which sell electricity to EGAT and other customers at home and in the ASEAN region under long term power purchase agreements.

EGCO investment is divided into 4 categories including: 1. Independent power producer (IPP) group, 2. Small power producer (SPP) group, 3. Overseas power producer group, and 4. Other business group including operation and maintenance service business and water business.

The company presently has a total installed capacity of 4,435.5 MW from its power plants both in Thailand (3,764.40 MW) and overseas (671.1 MW).

Shareholding

As at December 31, 2011, EGCO had the total registered capital amounting to 530 million shares (5,300 million baht), of which 526.47 million shares (5,264.65 million baht) were issued and paid-up. EGCO’s shareholders are EGAT (25.41%), TEP- DIA Generating B.V. (23.94%) and general public (50.65%).

Joint Venture

1. District Cooling System and Power Plant Co., Ltd. (DCAP)

Nature of Business

DCAP is a joint venture business founded on April 2, 2003 by EGAT, PTT Public Company Limited, and the Metropolitan Electricity Authority (MEA). The company’s objective is to generate and sell electricity and cooling water to the Suvarnabhumi International Airport.

DCAP has presently been implementing its power expansion project to increase its power and water production capacity to meet the growing needs of the airport. The project is due for completion in March 2012.

Shareholding

As at December 31, 2011, DCAP had a total registered capital of 1,670 million baht (167 million shares). Its ownership structure is composed of EGAT, PTT Public Company Limited, and the Metropolitan Electricity Authority (MEA) with the portion of 35%, 35% and 30% stakes respectively. 28

2. EGAT Diamond Service Company Limited (EDS)

Nature of Business

EDS is a joint venture business founded on December 15, 2009 by EGAT, Mitsubishi Heavy Industries (MHI), Mitsubishi Corporation, and Ratchaburi Electricity Generating Holding PCL. (RATCH). The company’s objective is to provide gas turbine hot gas path components refurbishment services in 18 countries, namely Thailand, Malaysia, Singapore, Lao People’s Democratic Republic, Myanmar, Cam- bodia, Vietnam, Brunei, Australia, New Zealand, India, Pakistan, Bangladesh, Sri Lanka, Bhutan, Nepal, Afghanistan and Maldives. EDS’s Maintenance Plant situated in Nava Nakorn Industrial Estate, Pathum Thani province was open in April 2011.

Shareholding

As at December 31, 2011, EDS had a total registered capital of 6.23 million shares at 100 baht per share (equivalent to 623 million baht), of which 81.31 baht per share was paid-up or equivalent to 506.56 million baht. The company’s ownership structure is composed of EGAT (45%), MHI (30%), Mitsubishi Corporation (15%) and RATCH (10%).

EGAT’s Investment in Its Affiliates

Registered Capital % Ownership Status Company (Million Baht)

Ratchaburi Electricity Generating Holding 14,500 45.00 Subsidiary Public Company Limited (RATCH)

555/1 Energy Complex, Building A, 7th Floor, Vibhavadi-Rangsit Road, Chatuchak, Bangkok 10900 Tel : +66 (0) 2794 9999 Fax : +66 (0) 2794 9550 Website: www.ratch.co.th

EGAT International Company Limited 300 99.99 Subsidiary (EGATi)

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

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

EGCO Tower, 222 Moo 5, Vibhavadi-Rangsit Road, Tungsonghong, Lak Si, Bangkok 10210 Tel : +66 (0) 2998 5000 Fax : +66 (0) 2998 0956-9 Website: www.egco.com

District Cooling System and Power Plant 1,670 35.00 Joint Venture Company Limited (DCAP)

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

EGAT Diamond Service Company Limited 623 45.00 Joint Venture (EDS)

56/25 Moo 20, Tambon Khlong Nueng, Khlong Luang, Pathum Thani 12120 Tel : +66 (0) 2529 0800, (0) 2529 0808 Fax : +66 (0) 259 0900 Website: www.egatdiamond.co.th 29

Analysis of Operating Results and Financial Status

1. Analysis of Operating Results of EGAT and Its Subsidiaries

Operating results of EGAT and its subsidiaries including associated company and joint venture for the year ended December 31, 2011 and 2010 are summarized as follows:

2011 2010 Increase / (Decrease) Operating Results Million Baht Million Baht Million Baht Percentage

Revenue from sales and services 418,445.19 405,445.06 13,000.13 3.21 Revenue from electric energy sales 399,377.40 383,458.98 15,918.42 4.15 Revenue from sales of other goods and services 19,067.79 21,986.08 (2,918.29) (13.27) Cost of electric energy sales 348,519.16 330,316.70 18,202.46 5.51 Cost of sales of other goods and services 17,833.44 20,936.96 (3,103.52) (14.82) Gross profit 52,092.59 54,191.40 (2,098.81) (3.87) Other revenue 3,879.87 3,660.82 219.05 5.98 Income before expenses 55,972.46 57,852.22 (1,879.76) (3.25) Selling expenses (152.54) (115.43) (37.11) 32.15 Administrative expenses (16,207.49) (15,427.35) (780.14) 5.06 Other expenses (654.49) (38.77) (615.72) 1,588.14 Operating income 38,957.94 42,270.67 (3,312.73) (7.84) Share of profit from associated company and share of profit from jointly controlled entity of subsidiaries under the equity method 2,533.42 3,272.09 (738.67) (22.57) Income before financial cost and income tax 41,491.36 45,542.76 (4,051.40) (8.90) Financial cost (5,424.38) (4,457.36) (967.02) 21.69 Income tax (Part of subsidiaries) (1,822.21) (1,266.55) (555.66) 43.87 Net income before minority interest 34,244.77 39,818.85 (5,574.08) (14.00) Net income - Minority interest (2,426.04) (2,863.18) 437.14 (15.27)

Net income - EGAT and its subsidiaries 31,818.73 36,955.67 (5,136.94) (13.90)

For operating results in 2011, EGAT and its subsidiaries recorded a net income of Baht 31,818.73 million, a decrease of Baht 5,136.94 million or 13.90% from the year 2010. The analysis is as follows:

1.1 Analysis of revenue from electric energy sales

For the year ended December 31, 2011, revenue from electric energy sales, which is the primary source of revenue of EGAT and its subsidiaries, amounted to Baht 399,377.40 million, increasing by Baht 15,918.42 million or 4.15% from Baht 383,458.98 million in 2010. The higher sales revenue was mainly attributable to an increase of Baht 0.127 in unit selling price from Baht 2.451 in 2010 to Baht 2.578 in 2011. However, compared with 2010, the growth of energy sales revenue decelerated in 2011 due to the lower electricity consumption caused by the severe flooding during the last quarter of the year. As a result, the volume of electric energy sales decreased 1,517.55 million kWh or 0.97% to 154,935.65 million kWh, compared with 156,453.20 million kWh in 2010. 30

Besides, its revenue from electric energy sales was partially reduced due to the resolution of the En- ergy Regulatory Commission (ERC) which stipulated EGAT to transfer the cross subsidies between power utilities amounting to Baht 3,384.45 million from EGAT’s electric energy sales and to return the electricity charge by differential from actual investment and planning between the periods of 2008-2010 amounted to Baht 2,889.31 million.

1.2 Analysis of cost of electric energy sales

In 2011, the cost of electric energy sales of EGAT and its subsidiaries increased from the year 2010 by Baht 18,202.46 million. Components of the cost of electric energy sales are detailed as follows:

2011 2010 Increase Cost of Electric Energy Sales Million Baht Million Baht Million Baht Percentage

Electricity purchased 174,182.03 163,364.77 10,817.26 6.62 Fuel 133,014.68 129,936.86 3,077.82 2.37 Generating expenses 31,944.79 27,735.22 4,209.57 15.18 Transmission expenses 9,377.66 9,279.85 97.81 1.05

Total 348,519.16 330,316.70 18,202.46 5.51

1.2.1 Electricity purchased

In 2011, the cost of purchased electricity increased by Baht 10,817.26 million or 6.62%. The increase was attributable to an increase of 2,710.17 million kWh or 3.76% in electricity purchase from private power producers amounting to 74,856.78 million kWh and the higher average power purchase price of Baht 2.327 per kWh, compared with Baht 2.264 per kWh in 2010. The significant details are as follows:

• Electricity purchased from Lao People’s Democratic Republic increased by 3,765.61 million kWh or Baht 4,968.71 million due to the higher generation dispatch from Nam Theun 2 hydroelectric plant to substitute natural gas-fired generation during the interruption of natural gas supply from the Gulf of Thailand in July 2011. In addition, EGAT also started purchasing electricity from Nam Ngum 2 hydropower plant in March 2011.

• Electricity purchased from Independent Power (Thailand) Co.,Ltd. (IPT) increased by 2,943.81 million kWh or Baht 6,202.36 million compared with the prior year when the power plant had undergone a major overhaul from April 28 to November 30, 2010.

• Electricity purchased from Electricity Generating Plc. (EGCO) decreased by 2,656.11 million kWh or Baht 4,781.44 million because its old power plants were less efficient than all other combined cycle power plants and were thus put on reserve shutdown following the lower electricity demand in 2011.

• Electricity purchased from Tri Energy Co.,Ltd. decreased by 1,386.29 million kWh or Baht 2,146.25 million due to its longer maintenance outages than the prior year.

1.2.2 Fuel cost

In 2011, the electricity produced by EGAT and its subsidiaries amounted to 84,224.60 million kWh, decreasing from the prior year by 4,069.09 million kWh. The details of fuel consumption are as follows: 31

2011 2010 Increase / (Decrease) Fuel Million Unit Million Unit Million Unit Percentage

Natural gas (MBtu) 458.14 533.39 (75.25) (14.11) Heavy oil (liter) 434.70 227.43 207.27 91.13 Diesel oil (liter) 11.65 18.12 (6.47) (35.68) Lignite (ton) 17.16 16.04 1.12 6.97

The fuel cost for the year ended December 31, 2011 amounted to Baht 133,014.68 million, increasing by Baht 3,077.82 million or 2.37%. The details of fuel cost are as follows:

2011 2010 Increase / (Decrease) Fuel Million Baht Million Baht Million Baht Percentage

Natural gas 114,052.60 116,868.69 (2,816.09) (2.41) Heavy oil 9,257.81 3,988.86 5,268.95 132.09 Diesel oil 274.44 392.85 (118.41) (30.14) Lignite 9,429.83 8,686.46 743.36 8.56

Total 133,014.68 129,936.86 3,077.82 2.37

1.2.3 Electricity Generating Expenses

For the year ended December 31, 2011, expenses for electricity generation increased by Baht 4,209.57 million. The increase was mainly attributable to an increase in depreciation of generation assets resulting from the increased assets under the power plant item. Also, major inspection expense and Pool Parts depreciation expense increased by Baht 860.00 million and Baht 501.00 million respectively. In addition, maintenance expense in electricity generation increased by Baht 1,015.47 million.

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 fuel supplies sold at cost to EGAT’s subsidiaries as well as such other services rendered to external companies as operation and maintenance services, engineering and construction consulting services, and telecommunication services.

In 2011, EGAT and its subsidiaries recorded the revenue from sales of other goods and services in the amount of Baht 19,067.79 million, decreasing from the year 2010 by Baht 2,918.29 million or 13.27% mainly due to a decrease of Baht 2,052.27 million in the revenue from sales of natural gas and heavy oil to its subsidiaries.

In 2011, the cost of sales of other goods and services totaled Baht 17,833.44 million, decreasing from the year 2010 by Baht 3,103.53 million or 14.82%.

1.4 Administrative expenses

Administrative expenses for the year ended December 31, 2011 amounted to Baht 16,207.49 million, increasing from the prior year by Baht 780.14 million or 5.06%. This was mainly because of an increase of Baht 208.55 million in EGAT’s salary expenses resulting from an annual pay raise. In addition, the consulting service expenses of Baht 235.98 million of Ratchaburi Electricity Generating Holding Plc in purchasing the securities of TSIF Fund also contributed to the higher administrative expenses in 2011. 32

1.5 Share of profit from associated company of EGAT and share of profit from jointly controlled entities of subsidiaries by using the equity method

For the year ended December 31, 2011, share of profit under the equity method totaled Baht 2,533.41 million, decreasing from the year 2010 by Baht 738.68 million or 22.58% due to the following reasons.

• Share of profit from EGAT’s associated company decreased by Baht 629.14 million, mainly resulting from a decrease of Baht 628.64 million in share of profit from Electricity Generation Plc.

• Share of profit from jointly controlled entities of subsidiaries decreased by Baht 109.54 million due to the impact of foreign exchange rate. Excluding the effect of foreign exchange rate, the overall operation of jointly controlled entities of subsidiaries increased from the prior year by Baht 273.83 million owing to the commercial operation of Nam Ngum 2 Power Plant which had started since March 26, 2011.

1.6 Financial cost

For the year ended December 31, 2011, financial cost amounted to Baht 5,424.38 million, an increase of Baht 967.02 million or 21.69%. The increase was mainly attributable to an increase of Baht 1,222.40 million in the financial cost of Ratchaburi Electricity Generating Holding Plc for Ratchaburi Elec- tricity Generating Co.,Ltd.’s issue and offer for sale of bond and bill of exchange for wholly repayment of the old loans, and the financial cost of Baht 1,021.52 million of RATCH-Australia, offset by a decrease of Baht 259.16 million in EGAT’s financial cost resulting from the repayment of long-term loans during the year.

1.7 Income tax

For the year ended December 31, 2011, the income tax of its subsidiary, namely Ratchaburi Elec- tricity Generating Holding Plc. amounted to Baht 1,822.21 million, increasing from the year 2010 by Baht 555.66 million or 43.87% as all three sets of combined cycle power plants of the company have been liable to income tax payment since April 18, 2010 following the expiration of corporate income tax exemption granted by the Board of Investment of Thailand (BOI).

2. Analysis of Financial Status of EGAT and Its subsidiaries

2011 2010 Increase Financial Status Million Baht Million Baht Million Baht Percentage

Total assets 495,534.27 469,680.82 25,853.45 5.50 Total liabilities 193,204.49 185,006.40 8,198.09 4.43 Equity of EGAT 275,128.53 258,709.50 16,419.03 6.35 Minority interest 27,201.25 25,964.91 1,236.34 4.76

As at December 31, 2011, the total assets of EGAT and its subsidiaries increased by Baht 25,853.45 million mainly due to the following reasons. 33

• An increase in cash and cash equivalents of Baht 3,469.21 million, mainly from an increase in EGAT’s current and saving accounts and fixed deposit receipt of subsidiaries of Baht 10,687.82 million and Baht 1,210.00 million respectively, offset by a decrease of Baht 5,108.26 million in EGAT’s government bonds not exceeding 3 months and a decrease of Baht 3,249.58 million in its subsidiaries’ bill of exchange

• A decrease in temporary investment of Baht 6,789.11 million, largely from a decrease of Baht 17,369.26 million in the government bonds over 3 months, offset by an increase of Baht 9,980.26 million in EGAT’s fixed deposit.

• An increase in investment in associated company and jointly controlled entities of subsidiaries by using equity method of Baht 3,737.14 million resulting from the operating results recognition and the increasing investment during the year as follows:

Unit: Million Baht

Increase / (Decrease)

Associated Companies Electricity Generating Plc. 734.80 First Korat Wind Co.,Ltd. 203.18 K.R. Two Co.,Ltd. 153.38

Jointly-Controlled Entities Tri Energy Co.,Ltd. 243.27 Ratchaburi Power Co.,Ltd. 40.07 Chubu Ratchaburi Electric Services Co.,Ltd. (4.01) SouthEast Asia Energy Ltd. 373.40 Hongsa Power Co.,Ltd. (38.49) Phufai Mining Co.,Ltd. (0.07) Nam Ngum 3 Hydro Electric Power Co.,Ltd. (0.07) Nava Nakorn Electricity Generation Co.,Ltd. 30.65 Ratchaburi World Cogeneration Co.,Ltd. 146.49 Solarta Co.,Ltd. 551.75 Solar Power (Korat 3) Co.,Ltd. 56.61 Solar Power (Korat 4) Co.,Ltd. 59.14 Solar Power (Korat 7) Co.,Ltd. 44.94 Songkha Biomass Co.,Ltd. 16.90 Perth Power Partnership (RATCH-Australia’s jointly controlled entity) 1,125.20

• Net property, plant and equipment increased by Baht 10,527.07 million as the assets of EGAT and its subsidiaries increased during the year, mainly from an increase of Baht 8,150.98 million in EGAT’s assets under the category of power plant and an increase of Baht 1,328.75 million in deferred charges for major plant inspection.

• An increase of Baht 2,478.54 million in intangible assets resulted mainly from the subsidiary’s project development right amounting to Baht 1,752.64 million. 34

As at December 31, 2011, the total liabilities of EGAT and its subsidiaries increased by Baht 8,198.09 million, detailed as follows:

• Account payables increased by Baht 7,508.80 million, mostly from an increase in account pay- able – cost of electricity purchase from independent power producers and small power producers amounting to Baht 4,729.96 million and 1,766.14 million respectively.

• The accrued remittance to the Ministry of Finance decreased by Baht 1,603.85 million due to EGAT’s lower net income compared with the prior year. Since 2010 EGAT has made provisions for the remittance at the rate of 45% of net income as stipulated by the Ministry of Finance, against the normal rate of 40%.

• Long-term loans and current portion of long-term loans increased by Baht 2,457.79 million, due to the issue of JPY 15,000 million (Baht 17,478.35 million) bonds of RH International (Singa- pore) Corporation Pte. Ltd. which is a subsidiary of Ratchaburi Electricity Generating Holding Plc, offset by the repayment of EGAT’s long term loans (EGAT’s bonds) amounting to Baht 16,014.10 million during the year 2011.

Equity of EGAT and its subsidiaries excluding minority interests totaled Baht 275,128.53 million, increasing by Baht 16,419.02 million, as shown in the following details.

• For the year ended December 31, 2011 the net income of EGAT and its subsidiaries were Baht 31,818.73 million.

• EGAT wrote off the depreciation of multi-purpose dams in the portion of their irrigation purposes, resulting in a decrease of Baht 62.33 million in the Contribution from the Government.

• Adjustment for increase in the share of equity in subsidiaries and associates by using the equity method in the amount of Baht 110.15 million.

• Accrued common shares from other joint ventures in EGAT’s jointly controlled entity, namely District Cooling System and Power Plant Co.,Ltd. amounted to Baht 23.62 million.

• Remittance to the Ministry of Finance for the amount of Baht 15,471.15 million

3. Analysis of Cash flow

As at December 31, 2011, cash and cash equivalents of EGAT and its subsidiaries amounted to Baht 51,338.83 million, increasing from December 31, 2010 by Baht 3,469.22 million. The details of cash flows from each activity are as follows:

Unit : Million Baht

Cash and cash equivalents as at December 31, 2010 47,869.61 Net cash inflows from operating activities 61,099.99 Net cash outflows from investing activities (16,638.23) Net cash inflows from financing activities (41,065.08) Effects from foreign exchange rate in cash and cash equivalents 72.54

Cash and cash equivalents as at December 31, 2011 51,338.83

In 2011, net cash inflows from operating activities totaled Baht 61,099.99 million which was derived from net income of Baht 31,818.73 million, adjusted by non-cash items in statements of income, such as depreciation and gains (losses) on foreign exchange etc. totaling Baht 65,021.06 million. Besides, changes in working capital resulted in a decrease in cash of Baht 2,623.61 million, cash receipts on interest of Baht 583.52 million and cash payment on income tax totaling Baht 1,880.98 million.

Net cash outflows from investing activities amounted to Baht 16,638.23 million, mainly consisting of investments for the construction of combined cycle power plant projects, transmission system, and construction projects and durable goods totaling Baht 19,423.35 million, the payment for acquisition of subsidiaries amounting to Baht 6,188.68 million, and the payment for additional share capital in associated company and the jointly controlled entities of subsidiaries totaling Baht 1,335.79 million. Meanwhile, EGAT and its subsidiaries received cash on temporary investments of Baht 6,841.98 million, interest of Baht 1,241.42 million and dividends of Baht 1,525.26 million.

Net cash outflows from financing activities totaled Baht 41,065.08 million, comprising of cash receipts from short- and long-term loans of Baht 32,905.64 million, accrued common shares of Baht 23.63 million, repayment of loans and interest of Baht 55,124.97 million, remittance to the Ministry of Finance of Baht 17,075.00 million and dividend payment to minority from subsidiaries of Baht 1,794.38 million. 36

4. Financial Ratio

Based on the operating results and financial status for the year ended December 31, 2011 and 2010, the financial ratios of EGAT and its subsidiaries are as follows:

2011 2010

Liquidity Ratio Current ratio (Time) 1.51 1.62 Quick ratio (Time) 1.36 1.47 Cash ratio (Time) 0.77 0.73

Profitability Ratio Ratio of gross profit to net sales (Percentage) 12.45 13.37 Ratio of net profit to net sales (Percentage) 7.60 9.11 EBITDA (Million Baht) 63,360.03 58,723.25

Efficiency Ratio Rate of return on assets (Percentage) 6.59 7.83 Rate of return on fixed assets (Percentage) 20.32 22.04 Total assets turnover (Time) 0.88 0.87

Financial Policy Ratio Debt to equity ratio (Time) 0.64 0.65 Times interest earned (Time) 7.65 10.22 Fixed charge coverage (cash basis) (Time) 0.90 1.38

Remark : EBITDA is calculated from gross profit after selling expenses, administrative expenses and management benefits expense, excluding depreciation and other amortization expenses.

Source: The data on energy generation and purchase is based on the Preliminary Yearly Operation Report 2011 of EGAT’s System Control and Operation Division issued in February 2012. 37

Enterprise Risk Management

EGAT has adopted the COSO-ERM principles as a main approach to managing its risks and has continuously improved its risk management capabilities as directed by the State Enterprise Policy Office (SEPO), the Ministry of Finance. A set of enterprise risk management system and process has been applied throughout the organization. It has also stepped up effort to raise employee awareness of the risk management. The implementation of its integrated enterprise risk management has provided reasonable assurance for EGAT’s operation and business continuity which has efficiently met the corporate strategic objectives with appropriate allocation of resources and risks being managed and controlled within its risk appetite throughout the year 2011.

EGAT’s risk management system is a participatory one which involved all levels of employees from all units. Risk factors have been identified with risk owners being assigned to be responsible for each risk factor. Committees and working groups are established to monitor risk management at each level and line of command. EGAT Board of Directors appoints an Enterprise Risk Management Committee (ERMC) to oversee EGAT’s overall risk management and report to the Board of Directors. Immediately under the ERMC there is a Management Committee on Corporate Strategy, Risk Management and Internal Control assigned by EGAT Governor to manage EGAT’s Risks and provide technical support to the Governor and ERMC. At each line of command or business unit with a Deputy Governor on the top, the Deputy Governor then sets up its Core Group Subcommittee to primarily determine the results of the managed risks before reporting to the higher management. In addition, the Audit Committee has been delegated by the Board of Directors to examine the sufficiency of EGAT’s risk management and internal control system, processes as well as plans and measures. EGAT has monitored and revised the sufficiency of risk management action plans and measures on a quarterly basis, with additional reviews being undertaken if urgent needs arise, to ensure that EGAT’s mission will always be fulfilled.

EGAT Risk Management Structure 38

Results of Risk Management in 2011 2. Financial Risk

In order to pursue and achieve its vision Under the government’s policy regarding towards being an international leader in the power electricity price regulation and electricity tariff re- industry, EGAT has deliberately considered risks in structure, EGAT has, in effort to maintain its finan- all aspects which could compromise its operation. cial status and stability, implemented measures Risk appetites and tolerance have been defined and plans to maintain a stable ratio of its return on to provide a framework for determining corporate invested capital (ROIC) to its weighted average strategies and integrating risk management process cost of capital (WACC). It has carefully analyzed with its strategic objectives. EGAT has set up an its present financial position and its future financial enterprise risk management plan and has quarterly position after the new electricity tariff structure reported the results of the risk management imple- became effective on July 1, 2011. Measures have mentation to the Enterprise Risk Management Com- also been implemented to control costs as well as mittee to ensure the success of EGAT’s strategies. accelerating the payment on investment budget to Key risk management results in 2011 are summa- achieve its financial plans. rized as follows:

3. Operational Risk 1. Strategic & Corporate Risk EGAT has managed risks inherent in all Giving priority to the security and reliabil- aspects of its operations, including electricity ity of the country’s power supply system, EGAT generation, transmission, employees, community, has managed risks by successfully maintaining its environment, as well as information technology. appropriate share of generating capacity as the In 2011, EGAT paid special attention country’s biggest power producer. In 2011, risks not only to the transmission risk management of heavy dependence on natural gas have been to further improve security of the power supply added to EGAT’s strategic risks. In coping with the system, but also to the risks concerning community fuel supply risks, EGAT has implemented plans and and the environment since a lack of community measures to continually reduce the dependence support for EGAT’s projects might affect the opera- on natural gas in its generation system. It has also tional schedules of projects in the national power supported the revision of the national power de- development plan, and hence its effort in reducing velopment plan which focused more on diversified natural gas portion in the electricity generation energy resources as well as energy-efficient and mix. To address the community and environmental environmental-friendly power technologies. risks, EGAT has stepped up its effort in providing correct information to create better public understanding and trust for EGAT’s projects. Moreover, EGAT has worked closely with several 39

government agencies as a member of the Public Participation Strategic Planning Steering Committee which is composed of representatives from the Ministry of Energy, the Energy Regulatory Commission, Ministry of Public Health, Ministry of Interior and Ministry of Natural Resources and Environment.

In 2011, although the flood crisis had severely affected a number of EGAT’s substations which led to the interruption of power supply in certain areas of northern and central provinces, EGAT had managed to maintain the stability of the country’s overall power supply system by implementing preventive and counter-measures. A business continuity plan has been implemented with an emergency center being set up to closely monitor and analyze flood situations on a daily basis which enabled EGAT to efficiently maintain stability of both generation and transmission systems and serve electricity needs in other areas of the country throughout the flooding crisis.

4. Compliance Risk

EGAT has been well aware of the significance of law and regulation compliance. It also has paid close attention to new relevant laws and regulations which will be enacted in due course and may have effects on EGAT’s operations, such as the secondary laws provided for the Energy Industry Act, B.E. 2550 and the Environmental Legislation. In addressing those risks, EGAT has continuously monitored and thoroughly studied the effects of the changing laws and regulations on EGAT’s operations and has kept all concerned units informed of the news update to prevent any damage caused by non-compliance. 40

Organization Chart

Board of Directors

Executive Committee Audit Committee Enterprise Risk Management Committee Corporate Governance Committee Human Resources Committee Committee for Deputy Governor Nomination Committee for Assistant Governor and Division Director Nomination Governor

Assistant Governor - Internal Audit Bureau Chief Financial Officer Office of the Governor Power Plant Development Generation Fuel

Deputy Governor Deputy Governor Deputy Governor Power Plant Development Generation Fuel Policy and Planning Account and Finance Administration Assistant Governors Assistant Governors Assistant Governors Deputy Governor Deputy Governor Deputy Governor • Power Plant Development • Generation 1 • Fuel Management Policy and Planning Account and Finance Administration and Planning • Generation 2 • Mae Moh Mine Project Community Assistant Governors Assistant Governors Assistant Governors • Generation 3 Relations and Environment • Policy Finance Human Resources Hydro Power Plant • • • • Power Plant Engineering • Planning Account Services • • • • Power Plant Construction • Information Technology • Legal Affairs Bureau

Transmission System Business Corporate Social Development Development Transmission System Responsibility Deputy Governor Deputy Governor Deputy Governor Deputy Governor Transmission System Business Development Transmission System Corporate Social Development Responsibility Assistant Governors Assistant Governors Assistant Governors Assistant Governor • Transmission System • Business Administration • Transmission System Operation • Corporate Social Responsibility Engineering • Operation and • Transmission System Maintenance Transmission System Maintenance Project • System Control Construction • • Operation and Maintenance Business 41

Board of Directors

Assistant Governor - Internal Audit Bureau Chief Financial Officer Office of the Governor Power Plant Development Generation Fuel

Structure of Organizational Management

EGAT organizational management consists of a Board of Directors who makes a decision concerning policies, determines corporate strategies, oversees EGAT’s overall operations, and appoints EGAT top management including Governor, Deputy Governors, Assistant Governors and Division Directors. EGAT management is responsible for managing overall operations in accordance with the given policies and strategies.

1. Board of Directors 1.1 Compositions, Qualifications, and Criteria for Appointment

• The Board of Directors shall be comprised of a Chairman and other Directors not exceeding 10 members including EGAT Governor who serves as an ex-officio Director.

• The Chairman and Directors shall be of Thai nationality and must be well qualified and expe- rienced in the fields of business administration, science, engineering, economics, finance, or law.

• The Chairman and Directors must not have any direct or indirect interest in the contract made with EGAT or in the activities acted for EGAT, except that they are merely shareholders who invest in good faith in a limited company or a public limited company. They must not hold any political post or possess prohibited attributes in accordance with the Act on Qualification Standards for Directors and Officials of State Enterprises B.E. 2518 (1975) and its amendment.

• The Chairman and Directors excluding the ex-officio Director are appointed by the Cabinet. 1.2 Authority and Responsibilities

EGAT Board of Directors has the authority and responsibilities as follows:

• Lay down rules and regulations

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

• Review and approve significant policies and strategies including objectives, financial objectives, corporate social responsibility (CSR) and EGAT’s initiatives as well as monitoring the performance of the management regularly

• Ensure the reliability of accounting system, financial statements, and auditing, as well as the effectiveness and efficiency of internal control, internal audit, risk management and financial information disclosure, and follow up observance

• Oversee and address conflicts of interest issues that may occur with an employee, management, or Director as well as monitor the misuse of EGAT’s property and investigate miscon- duct of illegal or unethical behavior

• Ensure that the structure and practices of EGAT Board of Directors comply with the principles of good corporate governance and high ethical standards

• Monitor the appropriateness of human resources management including position classifica- tion and manpower

• Evaluate the performance of the Governor and review EGAT’s planning regularly 43

1.3 Members of the Board of Directors

Name Position Period of Office in 2011 1st period 2nd period

1. Mr. Pornchai Rujiprapa Chairman Jan. 1 - Sept. 27 Oct. 4 - Dec. 31 2. Mr. Witoon Simachokedee Director Jan. 1 - Sept. 27 - 3. Mr. Arkhom Termpittayapaisith Director Jan. 1 - Sept. 27 - 4. Mr. Kasemsun Chinnavaso Director Jan. 1 - Sept. 28 - 5. Mr. Thevan Vichitakul Director Jan. 1 - Sept. 25 - 6. Mr. Lae Dilokvidhyarat Director Jan. 1 - Sept. 27 Oct. 4 - Dec. 31 7. Mr. Kurujit Nakornthap Director Jan. 1 - Sept. 27 Oct. 4 - Dec. 31 8. Mr. Vitavas Srivihok Director Jan. 1 - Sept. 27 - 9. Mr. Trakul Winitnaiyapak Director Jan. 1 - Sept. 27 Oct. 4 - Dec. 31 10. Gen. Viddhavat Rajatanun Director Apr. 20 - Sept. 29 - 11. Mr. Sukit Charoenrattanakul Director - Oct. 4 - Dec. 31 12. Mr. Porametee Vimolsiri Director - Oct. 4 - Dec. 31 13. Mr. Prawit Sarakitprija Director - Oct. 4 - Dec. 31 14. Mr. Kulit Sombatsiri Director - Oct. 4 - Dec. 31 15. Mr. Ariyawich Ek-Ularnpun Director - Oct. 4 - Dec. 31 16. Mr. Arun Eamsureya Director Nov. 22 - Dec. 31 17. Mr. Sutat Patmasiriwat Director (Ex-officio) & Jan. 1 - Dec. 31 (EGAT Governor) Secretary

Remarks: In 2011, changes to the Board of Directors were made as follows: 1. Appointment of a new Board member to the incumbent Board of Directors on April 20, 2011 2. Appointment of a new Board of Directors on October 4, 2011 3. Appointment of another new Board member on November 22, 2011

1.4 Board Members holding office in EGAT’s Affiliates

Name Position in Period of Office EGAT’s Affiliates in 2011 Electricity Generating Public Company Limited (EGCO)

1. Mr. Pornchai Rujiprapa Chairman Jan. 1 - Dec. 31 2. Mr. Kulit Sombatsiri Director Dec. 13 - Dec. 31 3. Mr. Kurujit Nakornthap Director Feb. 28 - Dec. 13

Ratchaburi Electricity Generating Holding Public Company Limited (RATCH)

1. Mr. Witoon Simachokedee Chairman Jan. 1 - Nov. 30 2. Mr. Kurujit Nakornthap Chairman Dec. 19 - Dec. 31 3. Mr. Ariyawich Ek-Ularnpun Director Dec. 19 - Dec. 31 4. Mr. Trakul Winitnaiyapak Director Mar. 29 - Dec. 31 5. Mr. Vitavas Srivihok Director Mar. 29 - Nov. 30 6. Mr. Lae Dilokvidhyarat Director Jan. 1 - Mar. 28 7. Mr. Sutat Patmasiriwat Director Mar. 30 - Dec. 31

EGAT International Company Limited (EGATi)

1. Mr. Sutat Patmasiriwat Chairman Feb. 28 - Dec. 31

EGAT Diamond Service Company Limited (EDS)

1. Mr. Sutat Patmasiriwat Chairman Jan. 1 - Feb. 24 44

2. Board Committees

The Board has appointed seven committees to handle particular critical issues requiring expert assistance. These committees included Executive Committee, Audit Committee, Enterprise Risk Man- agement Committee, Corporate Governance Committee, Human Resources Committee, Committee for Deputy Governor Nomination, and Committee for Assistant Governor and Division Director Nomination. 2.1 Executive Committee

Duties and Responsibilities

• Consider and approve Term of Reference (TOR) and procurement of supplies within the value limits not exceeding 300 million baht

• Consider and screen all issues concerning EGAT’s financial and investment policies and plans as well as annual budget plans and recommend the financial and investment strategies that will be beneficial to EGAT

• Determine information technology-related policies and monitor overall IT operation and performance to support EGAT’s operations

• Consider other issues proposed by the Management before submission to the Board of Directors

Members of the Executive Committee

Name Position Period of Office in 2011 1st period 2nd period

1. Mr. Pornchai Rujiprapa Chairman Jan. 1 - Sept. 27 - 2. Mr. Witoon Simachokedee Member Jan. 1 - Sept. 27 - 3. Mr. Kurujit Nakornthap Member Jan. 1 - Sept. 27 Oct. 4 - Dec. 31 4. Mr. Kasemsun Chinnavaso Member Jan. 1 - Sept. 28 - 5. Mr. Trakul Winitnaiyapak Member Jan. 1 - Sept. 27 Oct. 4 - Dec. 31 6. Mr. Ariyawich Ek-Ularnpun Chairman - Oct. 4 - Dec. 31 7. Mr. Kulit Sombatsiri Member - Oct. 4 - Dec. 31 8. EGAT Governor Member & Secretary Jan. 1 - Dec. 31

2.2 Audit Committee

Duties and Responsibilities

• Review the adequacy and effectiveness of EGAT’s internal control and risk management system

• Review the reliability of financial statements and financial reports

• Monitor observance of laws, rules and regulations, related policies and EGAT Code of Con- duct and Ethics

• Monitor the effectiveness and efficient use of information technology systems and resources that meet corporate objectives and create added values for EGAT

• Monitor the executive management’s response to recommendations made by independent auditors and the Internal Audit Bureau concerning internal controls and risk management 45

• Review the operation of the Internal Audit Bureau and consider, in consultation with EGAT Governor, the appointment, transfer, performance evaluation and salary raise of the Assis- tant Governor - Internal Audit Bureau

• Meet and discuss with independent auditors the results of the annual audit

• Review at least once a year the appropriateness and effectiveness of the Audit Committee Charter and the Internal Audit Charter

Members of the Audit Committee

Name Position Period of Office in 2011 1st period 2nd period

1. Mr. Lae Dilokvidhyarat Chairman Jan. 1 - Sept. 27 Nov. 4 - Dec. 31 2. Mr. Arkhom Termpittayapaisith Member Jan. 1 - Sept. 27 - 3. Mr. Thevan Vichitakul Member Jan. 1 - Sept. 25 - 4. Mr. Prawit Sarakitprija Member - Nov. 4 - Dec. 31 5. Mr. Porametee Vimolsiri Member - Nov. 4 - Dec. 31 6. Assistant Governor - Internal Audit Bureau Secretary Jan. 1 - Dec. 31

2.3 Enterprise Risk Management Committee

Duties and Responsibilities

• Ensure the adequacy and effectiveness of risk management framework, policies and operations which cover the whole breadth of EGAT’s operations

• Review policies and systems used in assessing and evaluating risk management and controls as well as auditing and reporting procedures

• Oversee and ensure the observance of risk management

• Review EGAT’s risk management reports and information to be submitted to regulatory bod- ies and the public

• Perform any other tasks within the purview of the Enterprise Risk Management Committee as assigned by the Board of Directors

Members of the Enterprise Risk Management Committee

Name Position Period of Office in 2011 1st period 2nd period

1. Mr. Kurujit Nakornthap Chairman Jan. 1 - Sept. 27 Nov. 4 - Dec. 31 2. Mr. Kasemsun Chinnavaso Member Jan. 1 - Sept. 28 - 3. Mr. Sombat Sarntijaree Member Jan. 1 - Nov. 3 - 4. Mr. Sukit Charoenrattanakul Member - Nov. 4 - Dec. 31 5. Mr. Sutat Patmasiriwat Member - Nov. 4 - Dec. 31 6. Deputy Govorner - Policy and Planning Member & Secretary Jan. 1 - Dec. 31 46

2.4 Corporate Governance Committee

Duties and Responsibilities

• Establish policy, strategies and practical guidelines for corporate governance and social responsibility

• Oversee and ensure the observance of the defined plans and practices

• Promote and encourage involvement of Directors, EGAT management, and employees in corporate governance and CSR activities

Members of Corporate Governance Committee

Name Position Period of Office in 2011 1st period 2nd period

1. Gen. Apichart Penkitti Chairman Jan. 1 - Nov. 3 - 2. Mr. Vitavas Srivihok Member Jan. 1 - Sept. 27 - 3. Mr. Trakul Winitnaiyapak Chairman - Nov. 4 - Dec. 31 4. Mr. Kulit Sombatsiri Member - Nov. 4 - Dec. 31 5. Deputy Governor - Administration Member Jan. 1 - Dec. 31 6. Deputy Governor - Corporate Social Responsibility Member Jan. 1 - Dec. 31 7. Deputy Governor, Office of the Governor (Mr. Vuthinanda Surapolchai) Member Jan. 1 - Nov. 3 - 8. Assistant Governor, Office of the Governor (Mr. Suebpong Buranasirin) Member - Nov. 4 - Dec. 31 9. Director of the Office of the Governor Member & Secretary Jan. 1 - Dec. 31

2.5 Human Resources Committee

Duties and Responsibilities

• Propose policy guidelines on human resources

• Consider EGAT’s Human Resources Master Plan before submission to the Board of Directors

• Perform any other tasks related to HR oversight as assigned by the Board of Directors

Members of the Human Resources Committee

Name Position Period of Office in 2011 1st period 2nd period

1. Mr. Phiraphol Tritasavit Chairman Jan. 1 - Nov. 3 - 2. Mr. Sukit Charoenrattanakul Chairman - Nov. 4 - Dec. 31 3. Mr. Lae Dilokvidhyarat Member Jan. 1 - Sept. 27 Nov. 4 - Dec. 31 4. Mr. Apichart Dilogsopon Member Jan. 1 - Nov. 3 - 5. EGAT Governor Member Jan. 1 - Nov. 3 - 6. Deputy Governor - Administration Member Jan. 1 - Dec. 31 7. Assistant Governor - Human Resources Member & Secretary Jan. 1 - Dec. 31

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

Name Position Period of Office in 2011 1st period 2nd period

1. Mr. Pornchai Rujiprapa Chairman Jan. 1 - Sept. 27 Nov. 4 - Dec. 31 2. Mr. Witoon Simachokedee Member Jan. 1 - Sept. 27 - 3. Mr. Kasemsun Chinnavaso Member Jan. 1 - Sept. 28 - 4. Mr. Lae Dilokvidhyarat Member Jan. 1 - Sept. 27 - 5. Mr. Vitaya Kotcharug Member Jan. 1 - Nov. 3 Nov. 4 - Dec. 31 6. Mr. Kurujit Nakornthap Member - Nov. 4 - Dec. 31 7. Mr. Trakul Winitnaiyapak Member - Nov. 4 - Dec. 31 8. Mr. Apichart Dilogsopon Member - Nov. 4 - Dec. 31 9. EGAT Governor Member & Secretary Jan. 1 - Dec. 31

2.7 Committee for Assistant Governor and Division Director Nomination

The Committee for Assistant Governor and Division Director Nomination is responsible for considering and recommending candidates for nomination or rotation of Assistant Governorship and Divisional Directorship.

Members of the Committee for Assistant Governor and Division Director Nomination

Name Position Period of Office in 2011 1st period 2nd period

1. EGAT Governor Chairman Jan. 1 - Dec. 31 2. Mr. Kurujit Nakornthap Member Jan. 1 - Sept. 27 Nov. 4 - Dec. 31 3. Mr. Lae Dilokvidhyarat Member Jan. 1 - Sept. 27 - 4. Deputy Governors Members Jan. 1 - Dec. 31 5. Deputy Govorner - Administration Member & Secretary Jan. 1 - Dec. 31

3. Meetings of the Board of Directors and Committees

The Board of Directors regularly meets at least once a month with additional meetings being convened as deemed necessary. The members can request additional information from the Management.

For the Board Committees, certain committees regularly meet on a monthly basis whereas others hold meetings only when needs arise. 48

Meeting Attendance in 2011

Enterprise Committee Committee Name Board Executive Audit Risk Corporate Human for Deputy for Assistant of Committee Commitee Management Governance Resources Governor Governor Directors Committee Committee Committee Nomination & Division Director Nomination

1. Mr. Pornchai Rujiprapa 12/12 10/10 1/1

2. Mr. Witoon Simachokedee 6/9 8/10 1/1

3. Mr. Arkhom Termpittayapaisith 7/9 4/9

4. Mr. Kasemsun Chinnavaso 9/9 8/10 3/3 1/1

5. Mr. Thevan Vichitakul 8/9 8/9

6. Mr. Lae Dilokvidhyarat 12/12 11/11 2/2 1/1 2/2

7. Mr. Kurujit Nakornthap 11/12 10/12 4/4 3/3

8. Mr. Vitavas Srivihok 8/9 5/5

9. Mr. Trakul Winitnaiyapak 12/12 12/12

10. Gen. Viddhavat Rajatanun 4/6

11. Mr. Sukit Charoenrattanakul 3/3 0/1 0/1

12. Mr. Porametee Vimolsiri 2/3 0/2

13. Mr. Prawit Sarakitprija 3/3 2/2

14. Mr. Kulit Sombatsiri 3/3 2/2

15. Mr. Ariyawich Ek-Ularnpun 2/3 2/2

16. Mr. Arun Eamsureya 2/2

17. Mr. Sutat Patmasiriwat 12/12 12/12 1/1 1/1 1/1 3/3

Unit: Times of attendance by each member against total number of meetings convened during his period of office

4. Board Self Assessment

Board self assessment is annually conducted to examine the performance and effectiveness of the Board of Directors as a whole and individual Board directors to help identify weak points that need improvements. The self assessment also provides an opportunity for all Board members to collectively and straightforwardly review their past performance and obstacles confronted, and to gauge their contribution to EGAT’s success in order to improve their performance in discharging their oversight duties and in determining EGAT’s strategic directions. In 2011, the self assessment of EGAT Board of Directors was conducted and comprises two types of assessment - individual self assessment and collective board self assessment. Results of the evaluation were notified to the entire board for broad discussions.

In addition, development programs have been arranged for all Board members. New Board members have been provided with an orientation program to give them an insight into EGAT’s policies, mission, rules and regulations as well as business operations and practices and work systems, etc. They have also been provided with a set of handbooks containing guidelines and other necessary information.

All board members have also been notified of training and development programs for directorship to enable each member to allocate time to attend those programs as appropriate. EGAT Board members 49

have also attended several training programs and seminars organized by various institutes as well as overseas study visits to refresh their knowledge and skills. In 2011, the development programs included eight training courses and two seminars organized by various institutes and three overseas study visit programs.

5. Remuneration for Directors

The remuneration for directors of EGAT is stated at the rates set by the Ministry of Finance. In addition, directors appointed to serve as members of various committees such as Audit Committee, Executive Committee, Corporate Governance Committee, and Enterprise Risk Management Committee, will receive more remuneration in accordance with their higher roles and responsibilities. The remuneration for EGAT Board directors for the year 2011 totaled Baht 6,487,532.98 detailed as follows: Unit: Baht

Name Resigned / Meeting Bonus Total Retired Allowance

1. Mr. Pornchai Rujiprapa 250,000.00 520,413.31 770,413.31

2. Gen. Viddhavat Rajatanun 40,000.00 - 40,000.00

3. Gen. Apichart Penkitti October 1, 2010 - 328,125.00 328,125.00 *

4. Mr. Phiraphol Tritasavit October 1, 2010 - 328,125.00 328,125.00 *

5. Mr. Surapit Kirtiputra October 1, 2010 - 221,102.16 221,102.16 *

6. Mr. Chulasingh Vasantasingh April 27, 2010 - 140,972.21 140,972.21 *

7. Mr. Wisudhi Srisuphan February 1, 2010 - 36,458.33 36,458.33 *

8. Mr. Witoon Simachokedee 130,000.00 416,330.63 546,330.63

9. Mr. Thevan Vichitakul 180,000.00 330,477.16 510,477.16

10. Mr. Arkhom Termpittayapaisith 170,000.00 416,330.63 586,330.63

11. Mr. Kasemsun Chinnavaso 170,000.00 416,330.63 586,330.63

12. Mr. Lae Dilokvidhyarat 397,500.00 416,330.63 813,830.63

13. Mr. Kurujit Nakornthap 220,000.00 88,205.64 308,205.64

14. Mr. Trakul Winitnaiyapak 220,000.00 84,677.43 304,677.43

15. Mr. Vitavas Srivihok 130,000.00 66,154.22 196,154.22

16. Mr. Sukit Charoenrattanakul 20,000.00 - 20,000.00

17. Mr. Porametee Vimolsiri 40,000.00 - 40,000.00

18. Mr. Prawit Sarakitprija 40,000.00 - 40,000.00

19. Mr. Kulit Sombatsiri 40,000.00 - 40,000.00

20. Mr. Ariyawich Ek-Ularnpun 35,000.00 - 35,000.00

21. Mr. Arun Eamsureya 20,000.00 - 20,000.00

22. Mr. Sutat Patmasiriwat 137,500.00 437,500.00 575,000.00

Total 2,240,000.00 4,247,532.98 6,487,532.98

Remark: Some members of the Board resigned or vacated their office during 2011. * Bonus for EGAT’s 2010 operational results paid in 2011 to the Directors holding office and retiring during 2010 50

Board of Directors Mr. Pornchai Rujiprapa Age 59 Chairman Education / Training • Ph.D. (Regional Economics), University of Pennsyl- vania, U.S.A. • M.Sc. (Regional Economics), University of Pennsyl- vania, U.S.A. • M.P.A. (Programming Planning Administration), National Institute of Development Administration (NIDA) • B.Sc. (Agro-Industry), Kasetsart University • National Defense Course (Class 41), National De- fense College of Thailand • Director Accreditation Program (DAP), Thai Institute of Directors Association (IOD) Work Experience 2010 - Present Permanent Secretary, Ministry of Science and Technology 2006 - 2010 Permanent Secretary, Ministry of Energy 2003 - 2006 Deputy Permanent Secretary, Ministry of Energy 1999 - 2003 Deputy Secretary General, National Economic and Social Development Board (NESDB) Directorship / Management Position in Other State Enterprise / Company • Board Chairman, Electricity Generating Public Company Limited (EGCO) • Board Chairman, National Science Museum Amount / Value of Shares in Other Companies * None Connected Transactions in 2011 None

* Refers only to shares of company 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. 51

Mr. Witoon Simachokedee Age 57 Director Education / Training • Ph.D. (Public Administration), Ramkhamhaeng Uni- versity • Honorary Doctorate Degree in Safety Technology and Occupational Health, Suan Sunandha Rajabhat University • Honorary Doctorate Degree (Safety Engineering), Kasetsart University • M.B.A. (Commerce), Thammasat University • B.A. (Laws), Thammasat University • B.Eng. (Electrical Engineering), Kasetsart University • National Defense Course for the Joint State-Private Sector (Class 16), National Defense College of Thai- land • Politics and Governance in Democratic Systems for Executive Course (Class 11), King Prajadhipok’s Institute • Corporate Governance Program for Directors and Executives of State Enterprises and Public Organizations, King Prajadhipok’s Institute • Training Programs held by the Thai Institute of Directors Association (IOD) - Financial Statements for Directors Program (FSD) - Director Certification Program (DCP) • Capital Market Academy Leadership Program (Class 7), Capital Market Academy, Stock Exchange of Thailand • Trade and Commerce Executive Training Program, University of the Thai Chamber of Commerce • Top Management Program (Class 33), Office of the Civil Service Commission Work Experience 2009 - Present Permanent Secretary, Ministry of Industry 2009 Director-General, Department of Industrial Works, Ministry of Industry 2008 - 2009 Director-General, Department of Primary Industries and Mines, Ministry of Industry 2006 - 2008 Deputy Permanent Secretary, Ministry of Industry 2003 - 2006 Inspector General, Ministry of Industry Directorship / Management Position in Other State Enterprise / Company • Chairman, Ratchaburi Electricity Generating Holding Public Company Limited (RATCH) • Director, PTT Exploration and Production Public Company Limited (PTTEP) Amount / Value of Shares in Other Companies * None Connected Transactions in 2011 None

* Refers only to shares of company 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. 52

Mr. Arkhom Termpittayapaisith Age 55 Director Education / Training • M.A. (Economics), Williams College, U.S.A. • B.A. (Economics), Thammasat University • National Defense Course (Class 46), National Defense College of Thailand • Training programs held by the Thai Institute of Direc- tors Association (IOD) - Director Accreditation Program (DAP) - Director Certification Program (DCP) - Audit Committee Program (ACP)

Work Experience 2010 - Present Secretary General, National Economic and Social Development Board (NESDB) 2004 - 2010 Deputy Secretary General, NESDB 2003 - 2004 Senior Advisor in Policy and Plan, Office of the National Economic and Social Develop- ment Board (NESDB) 2000 - 2003 Assistant Secretary General, NESDB Directorship / Management Position in Other State Enterprise / Company • Director, National Science and Technology Development Committee • Board member, the Bank of Thailand • Director, Airports of Thailand Public Company Limited (AOT) Amount / Value of Shares in Other Companies * None Connected Transactions in 2011 None

* Refers only to shares of company 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. 53

Mr. Kasemsun Chinnavaso Age 54 Director Education / Training • Ph.D. (Labor Economics), University of Notre Dame, Indiana, U.S.A. • M.Sc. (Rural Development Planning), Asian Institute of Technology (AIT) • M.A. (Economics), University of Notre Dame, Indiana, U.S.A. • B.A. (Development Economics), Ramkhamhaeng University • National Defense Course (Class 49), National De- fense College of Thailand • Executive Development Program, Kellogg School of Management, North Western University, Evanston, U.S.A. • Senior Executive Training Program (Class 39), Office of the Civil Service Commission Work Experience 2011 - Present Director-General, Department of Environmental Quality Promotion 2010 - 2011 Director-General, Department of Marine and Coastal Resources 2009 - 2010 Director-General, Department of Water Resources 2009 Director-General, Department of National Park, Wildlife, and Plant Conservation 2008 - 2009 Inspector General, Ministry of Natural Resources and Environment 2007 - 2008 Acting Executive Director, Thailand Greenhouse Gas Management Organization 2006 - 2008 Secretary General, Office of Natural Resources and Environmental Policy and Planning, Ministry of Natural Resources and Environment Directorship / Management Position in Other State Enterprise / Company • Director, Government Pension Fund • Director, Ratchaburi Electricity Generating Company Limited • Director, Zoological Park Organization Amount / Value of Shares in Other Companies * None Connected Transactions in 2011 None

* Refers only to shares of company 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. 54

Mr. Thevan Vichitakul Age 61 Director Education / Training • M.A. (Business Economics), Thammasat University • B.Eng. (Industrial Engineering), Chulalongkorn Uni- versity • National Defense Regular Course (Class 43), National Defense College of Thailand • Senior Executive Training Program (Class 27), Office of the Civil Service Commission • Senior Executive Program (SEP 18), Sasin Gradu- ate Institute of Business Administration of Chula- longkorn University Work Experience 2010 - 2011 Inspector General, Ministry of Finance 2008 - 2010 Director-General, Treasury Department, Ministry of Finance 2006 - 2008 Inspector General, Ministry of Finance 1996 - 2006 Deputy Director-General, Treasury Department, Ministry of Finance Directorship / Management Position in Other State Enterprise / Company • Director, Siam Commercial Bank Public Company Limited • Director, Dhipaya Insurance Public Company Limited • Director, Erawan Hotel Public Company Limited Amount / Value of Shares in Other Companies * None Connected Transactions in 2011 None

* Refers only to shares of company 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. 55

Mr. Lae Dilokvidhyarat Age 64 Director Education / Training • M.A. (Development Studies), Institute of Social Stud- ies, The Hague, The Netherlands • B.A. (Political Science - Public Finance), Chulalong- korn University • Training programs held by the Thai Institute of Direc- tors Association (IOD) - Finance for Non-Finance Director Program (FND) - Director Accreditation Program (DAP) - Director Certification Program (DCP) - Role of the Chairman Program (RCP) - Audit Committee Program (ACP) - DCP Refresher Course - Monitoring the Internal Audit Function Program (MIA) - Monitoring the Quality of Financial Reporting Program (MFR) Work Experience 2007 - Present Distinguished Scholar, Faculty of Economics, Chulalongkorn University 1972 - 2007 Associate Professor, Faculty of Economics, Chulalongkorn University Directorship / Management Position in Other State Enterprise / Company • Director, Ratchaburi Electricity Generating Holding Public Company Limited (RATCH) • Director, Ratchaburi Power Company Limited Amount / Value of Shares in Other Companies * None Connected Transactions in 2011 None

* Refers only to shares of company 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. 56

Mr. Kurujit Nakornthap Age 56 Director Education / Training • Ph.D., M.Sc. in Petroleum Engineering, University of Oklahoma, U.S.A. • B.Sc. (with Special Distinction) in Petroleum Engi- neering, University of Oklahoma, U.S.A. • Civil Service Executive Program for Senior Civil Ser- vants (Visionary Leadership: Class 46), Office of the Civil Service Commission • Senior Executive Program - SEP 60 (2006), London Business School, U.K. • Training programs held by the Thai Institute of Direc- tors Association (IOD) - Director Accreditation Program (DAP 64/2007) - Audit Committee Program (ACP 32/2010) - Role of Compensation Committee Program (RCC 12/2011) • National Defense Course (Class 51), National Defense College of Thailand • Top Executive Program in Commerce and Trade - TEPCoT (Class 3/2010) • Leadership for Change, (Class 2/2011), Right Livelihood Foundation, Matichon Group, Bangkok • Senior Executive Program on Administrative Justice (Class 2/2011), Institute of Administrative Justice Development Work Experience 2010 - Present Deputy Permanent Secretary, Ministry of Energy 2008 - 2010 Director-General, Department of Mineral Fuels, Ministry of Energy 2006 - 2008 Deputy Permanent Secretary, Ministry of Energy 2006 Deputy Director-General, Department of Mineral Fuels, Ministry of Energy Directorship / Management Position in Other State Enterprise / Company • Chairman, Ratchaburi Electricity Generating Holding Public Company Limited (RATCH) • Director, ESSO (Thailand) Public Company Limited Amount / Value of Shares in Other Companies * None Connected Transactions in 2011 None

* Refers only to shares of company 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. 57

Mr. Vitavas Srivihok Age 51 Director Education / Training • M.A. (Hons.) International Relations, University of Mississippi, U.S.A. • B.A. (2nd Class Honors) in International Relations, Faculty of Political Science, Chulalongkorn Univer- sity Work Experience 2010 - Present Ambassador, Royal Thai Embassy in Vientiane, Lao People’s Democratic Republic 2007 - 2010 Director-General, Department of ASEAN Affairs, Ministry of Foreign Affairs 2004 - 2007 Ambassador attached to the Ministry, Ministry of Foreign Affairs Directorship / Management Position in Other State Enterprise / Company None Amount / Value of Shares in Other Companies * None Connected Transactions in 2011 None

* Refers only to shares of company 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. 58

Mr. Trakul Winitnaiyapak Age 61 Director Education / Training • LL.M., School of Law, Tulane University, U.S.A. • Barrister at Law, Institute of Legal Education of Thai Bar Association • LL.B., Thammasat University • National Defense Course for the Joint State - Private Sector (Class 17), National Defense College of Thai- land • Politics and Governance in Democratic Systems for Executive Course (Class 11), King Prajadhipok’s Institute • Crime Prevention and Treatment of Offender, UNAFEI, Japan • Training in Child Abuse Prosecutors and Investigators, American Prosecutor Research Institute, U.S.A. • Children’s Rights, British Council International Seminar, Oxford University, U.K. • The 2000 Executive Leadership Program, Georgetown University, U.S.A. • Senior Criminal Justice Executive Program, International Law Enforcement Academy, Thailand • Senior Crisis Management Program, Maryland University, U.S.A. • Capital Market Academy Leadership Program (Class 13), Capital Market Academy, Stock Exchange of Thailand • Director Certification Program (DCP), Thai Institute of Directors Association (IOD) Work Experience 2011 - Present Deputy Attorney-General, Office of the Attorney General 2006 - 2011 Inspector General, Office of the Attorney General 2005 - 2006 Director-General, Advisory Department, Office of the Attorney General 2003 - 2005 Director-General, International Affairs Department, Office of the Attorney General Directorship / Management Position in Other State Enterprise / Company • Director, Ratchaburi Electricity Generating Holding Public Company Limited (RATCH) Amount / Value of Shares in Other Companies * None Connected Transactions in 2011 None

* Refers only to shares of company 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. 59

Gen. Viddhavat Rajatanun Age 59 Director Education / Training • M.A. (Political Science), Thammasat University • B.Sc., Chulachomklao Royal Military Academy • National Defense Course (2005), National Defense College of Thailand Work Experience 2010 - Present Deputy Permanent Secretary, Ministry of Defense 2008 - 2010 Director, Office of Policy and Planning, Ministry of Defense 2008 Director, Defense Information and Space Technology Department 2004 - 2008 Director, Defense Space Technology Center, Ministry of Defense Directorship / Management Position in Other State Enterprise / Company None Amount / Value of Shares in Other Companies * None Connected Transactions in 2011 None

* Refers only to shares of company 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. 60

Mr. Sukit Charoenrattanakul Age 59 Director Education / Training • M.A. (Political Science), Eastern New Mexico Uni- versity, U.S.A. • B.A. (Political Science), Chiang Mai University • Advanced Study Program, Northern Illinois Univer- sity, U.S.A. • Quantitative Research in Social Science, University of Essex, U.K. • Personnel Management Program, University of Essex, U.K. • Senior Executive Government (Class 31), Depart- ment of Provincial Administration, Ministry of Interior • National Defense Course (Class 43), National De- fense College of Thailand Work Experience 2011 - Present Director-General, Department of Provincial Administration 2009 - 2011 Inspector General, Ministry of Interior 2008 - 2009 Director-General, Department of Local Administration 2008 Deputy Permanent Secretary, Ministry of Interior Directorship / Management Position in Other State Enterprise / Company • Director, Provincial Waterworks Authority of Thailand Amount / Value of Shares in Other Companies * None Connected Transactions in 2011 None

* Refers only to shares of company 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. 61

Mr. Porametee Vimolsiri Age 51 Director Education / Training • Ph.D. (Economics), Carleton University, Canada • M.A. (International Affairs), Columbia University, U.S.A. • B.A. (Economics), Chulalongkorn University • Executive Creative Economy Training, Office of Knowledge Management and Development in collaboration with University of the Thai Chamber of Commerce • National Defense Course, National Defense College of Thailand • Director Certification Program (DCP), Thai Institute of Directors Association (IOD) Work Experience 2009 - Present Deputy Secretary General, Office of the National Economic and Social Development Board (NESDB) 2011 - Present Management Board, Thailand Creative Economy Agency 2010 - Present Director, National Innovation Board 2006 - Present Management Board, Neighboring Countries Economic Development Cooperation Agency Directorship / Management Position in Other State Enterprise / Company • Director, Mass Rapid Transit Authority of Thailand Amount / Value of Shares in Other Companies * None Connected Transactions in 2011 None

* Refers only to shares of company 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. 62

Mr. Prawit Sarakitprija Age 58 Director Education / Training • M.A. (Development Economics), Boston University, U.S.A. • B.A. (Business Administration), Boston University, U.S.A. • National Defense Course (Class 49), National De- fense College of Thailand • Chief Information Officer Program (Class 19) • Director Certification Program (DCP), Class 75, Thai Institute of Directors Association (IOD) • Civil Service Executive Development Program 1 (Class 39), Office of the Civil Service Commission Work Experience 2008 - 2011 Public Debt Advisor, Public Debt Management Office, Ministry of Finance 2006 - 2008 Deputy Director-General, Public Debt Management Office, Ministry of Finance 2003 - 2006 Director, Payment Administration and IT Bureau, Public Debt Management Office, Ministry of Finance Directorship / Management Position in Other State Enterprise / Company • Committee, Financial Institutions Development Fund (FIDF), Bank of Thailand • Director, Dhanarak Asset Development Company Limited Amount / Value of Shares in Other Companies * None Connected Transactions in 2011 None

* Refers only to shares of company 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. 63

Mr. Kulit Sombatsiri Age 48 Director Education / Training • M.B.A., University of Southern California, U.S.A. • M.P.A., San Diego State University, U.S.A. • B.A. (Political Science), Ramkhamhaeng University • Capital Market Academy Leadership Program (Class 10), Capital Market Academy, Stock Exchange of Thailand • Corporate Governance Program for Directors and Executives of State Enterprises and Public Organi- zations (Class 3), Public Director Institute (PDI) • Director Certification Program (DCP), Class 124, Thai Institute of Directors Association (IOD) • Executive Training Program 2 (Class 1), Office of the Civil Service Commission • Executive Training Program 1 (Class 40), Office of the Civil Service Commission Work Experience 2011 - Present Inspector General, Ministry of Finance 2010 - 2011 Advisor on State Enterprise Development, State Enterprise Policy Office, Ministry of Finance 2008 - 2010 Deputy Director, State Enterprise Policy Office, Ministry of Finance 2007 - 2008 Director, Bureau of Monetary Management, Treasury Department, Ministry of Finance 2006 - 2008 Deputy Secretary General, Office of National Telecommunications Commission Directorship / Management Position in Other State Enterprise / Company • Director, Electricity Generating Public Company Limited (EGCO) • Director, Krung Thai Asset Management Public Company Limited Amount / Value of Shares in Other Companies * None Connected Transactions in 2011 None

* Refers only to shares of company 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. 64

Mr. Ariyawich Ek-Ularnpun Age 61 Director Education / Training • Master of Business Administration, Chulalongkorn University • B.Sc. (Agricultural Economics), Kasetsart Univer- sity, • B.A. (Laws), Thammasat University Work Experience • Executive Vice President, Krung Thai Asset Man- agement Public Company Limited Directorship / Management Position in Other State Enterprise / Company • Independent Director, Classic Gold Futures Company Limited • Director, Ratchaburi Electricity Generating Holding Public Company Limited Amount / Value of Shares in Other Companies * None Connected Transactions in 2011 None

* Refers only to shares of company 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. 65

Mr. Arun Eamsureya Age 50 Director Education / Training • M.B.A. (Business Administration), New Hampshire College, U.S.A. • B.A. (Economics), Thammasat University • Capital Market Academy Leadership Program (Class 7), Capital Market Academy, Stock Exchange of Thailand • Real Estate Development Program, the Real Estate Executive Association of Chulalongkorn University • Director Certification Program (DCP), Thai Institute of Directors Association (IOD) Work Experience 2010 - Present Sub-Committee, Bureau of Community College Administration 2009 - Present Independent Director, M Pictures Entertainment Company Limited 2009 Executive Committee, Office of Small and Medium Enterprises Promotion 2002 - Present President, Shanghai Food Company Limited 1996 - Present President, AEH Company Limited Directorship / Management Position in Other State Enterprise / Company • President, Shanghai Food Company Limited • President, AEH Company Limited Amount / Value of Shares in Other Companies * None Connected Transactions in 2011 None

* Refers only to shares of company 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. 66

Mr. Sutat Patmasiriwat Age 58 Director (Ex-officio) and Secretary Education / Training • B.Eng. (Mechanical Engineering), Chulalongkorn University • Advanced Management Program, Harvard Business School, U.S.A. • Senior Executive Development Program, Founda- tion for International Human Resource Development • Creating Value through Product Management and Customer Profitability Program, Sasin Graduate In- stitute of Business Administration of Chulalongkorn University • Training programs held by the Thai Institute of Direc- tors Association (IOD) - Director Certification Program (DCP) - Role of the Chairman Program (RCP) Work Experience 2009 - Present EGAT Governor 2008 - 2009 Deputy Governor - Generation, EGAT 2007 - 2008 Assistant Governor - Administration, Generation Area, EGAT Directorship / Management Position in other State Enterprise / Company • Chairman, EGAT International Company Limited (EGATi) • Director, Ratchaburi Electricity Generating Holding Public Company Limited (RATCH) Amount / Value of Shares in Other Companies * None Connected Transactions in 2011 None

* Refers only to shares of company 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. 67

Executives

Mr. Sutat Patmasiriwat Age 58 Governor Education / Special Training • B. Eng. (Mechanical Engineering), Chulalongkorn University • Advanced Management Program, Harvard Business School, U.S.A. • Senior Executive Development Program 2, Foundation for International Human Resource Development • Creating Value through Product Management and Customer Profitability Program, Sasin Graduate Institute of Business Administration of Chula- longkorn University • ASEAN Executive Development Program, Thammasat Business School • Training programs held by the Thai Institute of Directors Association (IOD) - Director Certification Program (DCP) - Role of the Chairman Program (RCP) Work Experience December 29, 2009 Governor October 1, 2008 Deputy Governor - Generation December 21, 2007 Assistant Governor - Administration, Generation Area October 1, 2006 Assistant Governor - Operation and Maintenance Business

Mr. Wirash Kanchanapibul Age 59 Deputy Governor - Administration Education / Special Training • B. Eng. (Electrical Engineering), Chulalongkorn University • Management of Public Economy for Executive Program, King Praja- dhipok’s Institute • Senior Executive Development Program 1, GE Company, U.S.A. • Finance for Executive Decision Program, Continuing Education Center, Chulalongkorn University • Director Certification Program (DCP), Thai Institute of Directors Associa- tion (IOD) • Senior Executive Development Program 2, Foundation for International Human Resource Development • ASEAN Executive Development Program, Thammasat Business School • Positioning Utility Executives for Change Program, University of Idaho, U.S.A. Work Experience January 6, 2010 Deputy Governor - Administration October 1, 2008 Deputy Governor - Corporate Social Responsibility October 1, 2006 Assistant Governor - Transmission System Operation October 1, 2005 Executive Vice President - Demand Side Management 68

Mr. Thanakorn Poolthavee Age 58 Deputy Governor - Fuel Education / Special Training • B. Eng. (Mining Engineering), Chulalongkorn University • Executive Program for Senior Management, Fiscal Policy Research Insti- tute Foundation • Senior Executive Development Program 1, GE Company, U.S.A. • Finance for Executive Decision Program, Continuing Education Center, Chulalongkorn University • Director Certification Program (DCP), Thai Institute of Directors Associa- tion (IOD) • Senior Executive Development Program 2, Foundation for International Human Resource Development Work Experience January 6, 2010 Deputy Governor - Fuel October 1, 2009 Assistant Governor - Fuel Management October 1, 2005 Executive Vice President - Fuel Management

Mr. Surasak Supavititpatana Age 59 Deputy Governor - Generation Education / Special Training • B. Eng. (Electrical Engineering), Kasetsart University • Management of Public Economy for Executive Program, King Praja- dhipok’s Institute • Director Certification Program (DCP), Thai Institute of Directors Associa- tion (IOD) • Senior Executive Development Program 2, Foundation for International Human Resource Development • Masterful Coaching Workshop, Hay Group • Finance for Executive Decision Program, Continuing Education Center, Chulalongkorn University • Positioning Utility Executives for Change Program, University of Idaho, U.S.A. • Air War College, Institute of Higher Education Work Experience January 6, 2010 Deputy Governor - Generation October 1, 2006 Assistant Governor - Power Plant 2 69

Mr. Thawat Vadjanapornsithi Age 59 Deputy Governor - Corporate Social Responsibility Education / Special Training • B. Eng. (Electrical Engineering), Chulalongkorn University • Management of Public Economy for Executives Program, King Praja- dhipok’s Institute • Director Certification Program (DCP), Thai Institute of Directors Associa- tion (IOD) • Senior Executive Development Program 2, Foundation for International Human Resource Development • Masterful Coaching Workshop, Hay Group • Finance for Executive Decision Program, Continuing Education Center, Chulalongkorn University Work Experience November 15, 2010 Deputy Governor - Corporate Social Responsibility, also serving as EGAT Spokesman October 1, 2010 Deputy Governor - Corporate Social Responsibility January 6, 2010 Assistant Governor - Human Resources October 1, 2008 Assistant Governor - Corporate Social Responsibility December 21, 2007 Assistant Governor - Administration, Development Area October 1, 2006 Assistant Governor - Transmission System Engineering

Mr. Thana Putarungsi Age 56 Deputy Governor - Transmission System Education / Special Training • M. Eng. (Electrical Engineering), Kasetsart University • B. Eng. (Electrical Engineering), Kasetsart University • Politics and Governance in Democratic Systems for Executives Program, King Prajadhipok’s Institute • Director Certification Program (DCP), Thai Institute of Directors Associa- tion (IOD) • Senior Executive Development Program 2, Foundation for International Human Resource Development • Masterful Coaching Workshop, Hay Group • Finance for Executive Decision Program, Continuing Education Center, Chulalongkorn University Work Experience October 1, 2010 Deputy Governor - Transmission System October 1, 2008 Assistant Governor - Transmission System Operation 70

Mr. Pithsanu Tongveerakul Age 58 Deputy Governor - Business Development Education / Special Training • M. Eng., Lamar University, U.S.A. • B. Eng. (Mechanical Engineering), Chulalongkorn University • Director Certification Program (DCP), Thai Institute of Directors Associa- tion (IOD) • Senior Executive Development Program 2, Foundation for International Human Resource Development Work Experience October 1, 2011 Deputy Governor - Business Development December 21, 2007 Assistant Governor - Operation and Maintenance Business

Mr. Viwat Saeneemanomai Age 58 Deputy Governor - Transmission System Development Education / Special Training • B. Eng. (Electrical Engineering), Chulalongkorn University • Masterful Coaching Workshop, Hay Group • Finance for Executive Decision Program, Continuing Education Center, Chulalongkorn University • Senior Executive Development Program 2, Foundation for International Human Resource Development Work Experience October 1, 2011 Deputy Governor - Transmission System Development December 21, 2007 Assistant Governor - Transmission System Engineering 71

Mr. Mongkol Sakulkao Age 58 Deputy Governor - Policy and Planning Education / Special Training • M. Eng. (Water Resources Engineering), Asian Institute of Technology • B. Eng. (Mechanical Engineering), Kasetsart University • Thailand and ASEAN Economic Community (AEC) Program, King Praja- dhipok’s Institute • Senior Executive Program, Sasin Graduate Institute of Business Admin- istration of Chulalongkorn University • Senior Executive Development Program 2, Foundation for International Human Resource Development • Masterful Coaching Workshop, Hay Group • Finance for Executive Decision Program, Continuing Education Center, Chulalongkorn University • ASEAN Executive Development Program, Thammasat Business School Work Experience October 1, 2011 Deputy Governor - Policy and Planning October 1, 2008 Assistant Governor - Planning

Mrs. Sunanta Kietsirikul Age 60 Deputy Governor - Account and Finance, Serving as Chief Financial Officer (CFO) Education / Special Training • M.A. (Commerce and Accountancy), Thammasat University • B.A. (Commerce and Accountancy), 2nd Class Honors, Chulalongkorn University Work Experience October 1, 2011 Deputy Governor - Account and Finance, serving as Chief Financial Officer (CFO) January 6, 2010 Assistant Governor - Account 72

Mr. Soonchai Kumnoonsate Age 55 Deputy Governor - Power Plant Development Education / Special Training • B. Eng. (Electrical Engineering), Chulalongkorn University • Public Law and Management Program, King Prajadhipok’s Institute • Advanced Management Program, Harvard Business School, U.S.A. • Psychological Operations Staff Course, Applied Psychology Institute Work Experience October 1, 2011 Deputy Governor - Power Plant Development January 6, 2010 Assistant Governor - Fuel Management

Executives Posted to EGAT Affiliates Mr. Noppol Milinthanggoon Age 57 Engineer Level 14 to the Governor, appointed as President, Ratchaburi Electricity Generating Holding PCL (RATCH) Education / Special Training • M. Eng. (Nuclear Technology), Chulalongkorn University • B. Eng. (Electrical Engineering), 2nd Class Honors, Chulalongkorn Uni- versity • Management of Public Economy for Executive Program, King Praja- dhipok’s Institute • Finance for Executive Decision Program, Continuing Education Center, Chulalongkorn University • Director Certification Program (DCP), Thai Institute of Directors Associa- tion (IOD) • Senior Executive Development Program 1, GE Company, U.S.A. • Senior Executive Development Program 2, Foundation for International Human Resource Develop- ment • ASEAN Executive Development Program, Thammasat Business School • Senior Command Course, Institute of Police Administration Development Work Experience October 1, 2010 Engineer Level 14 appointed as President of Ratchaburi Electricity Generating Holding Public Company Limited (RATCH) October 1, 2008 Engineer Level 13 appointed as President of Ratchaburi Electricity Generating Holding Public Company Limited (RATCH) December 21, 2007 Assistant Governor - Thermal Power Plant Construction, EGAT October 1, 2005 Executive Vice President - Power Plant Engineering, EGAT 73

Mr. Somboon Arayaskul Age 58 Engineer Level 14 to the Governor, appointed as Senior Executive Vice President and Acting President of EGAT International Company Limited (EGATi) Education / Special Training • M. Eng. (Mechanical Engineering), Villanova University, U.S.A. • B. Eng. (Mechanical Engineering), Mapua Institute of Technology, Phil- ippines • Corporate Governance Program for Directors and Executives of State Enterprises and Public Organizations, Public Director Institute (PDI) • Civil Service Executive Development Program 1, Office of the Civil Ser- vice Commission • Senior Executive Development Program 1, GE Company, U.S.A. • Finance for Executive Decision Program, Continuing Education Center, Chulalongkorn University • Director Certification Program (DCP), Thai Institute of Directors Asso- ciation (IOD) • Senior Executive Development Program 2, Foundation for International Human Resource Development • General Manager Program, Harvard Business School, U.S.A. Work Experience October 1, 2011 Engineer Level 14 to the Governor appointed as Senior Executive Vice President and Acting President of EGAT International Company Limited (EGATi) December 6, 2007 Deputy Governor - Development, EGAT October 1, 2005 Executive Vice President - Thermal Power Plant Construction, EGAT 74

Mr. Sahust Pratuknukul Age 56 Engineer Level 14 to the Governor, appointed as President, Electricity Generating Public Company Limited (EGCO) Education / Special Training • B. Eng. (Electrical Engineering), Chulalongkorn University • Joint Public-Private Sector Regular Course, National Defense College of Thailand • Senior Executive Development Program 1, GE Company, U.S.A. • Director Certification Program (DCP), Thai Institute of Directors Associa- tion (IOD) • Finance for Executive Decision Program, Continuing Education Center, Chulalongkorn University Work Experience October 1, 2011 Engineer Level 14 to the Governor appointed as President of Electricity Generating Public Company Limited (EGCO) October 1, 2008 Deputy Governor - Policy and Planning, EGAT October 1, 2006 Assistant Governor - Policy, EGAT October 1, 2005 Assistant Chief Executive Officer - Planning, EGAT 75

Executives Retiring during 2011

Mr. Vinit Tangnoi Engineer Level 14, appointed as President, Electricity Generating Public Company Limited (EGCO) (October 1, 2008 - September 30, 2011) Reaching retirement age on October 1, 2011

Mr. Prutichai Chonglertvanichkul Engineer Level 14, appointed as Acting President, EGAT International Company Limited (EGATi) (September 1, 2010 - September 30, 2011) Reaching retirement age on October 1, 2011

Mrs. Sineenat Sittiratanarangsee Deputy Governor - Account and Finance (December 6, 2007 - September 30, 2011) Reaching retirement age on October 1, 2011

Mr. Vich Piputvat Deputy Governor to the Office of the Governor (October 1, 2010 - September 30, 2011) Reaching retirement age on October 1, 2011

Mr. Vuthinanda Surapolchai Deputy Governor to the Office of the Governor (October 1, 2010 - September 30, 2011) Reaching retirement age on October 1, 2011 76

Corporate Governance

EGAT is committed to continuously improving efficiency, integrity and transparency of its operations and business practices in order to create sustainable value, enhance corporate image and stakeholders’ confidence and trust. It has also improved its corporate governance systems and practices to meet international best practices. EGAT corporate governance is based on six pillars of good corporate governance, consisting of rules of law, moral integrity, transparency, participation, responsibility and accountability, and effectiveness and efficiency.

EGAT’s strong commitment to constantly improving its corporate governance practices has earned it several prizes which reflected its sound corporate governance and responsible operations, including the following:

• State-Owned Enterprise (SOE) Awards 2011 for Best Organizational Management for the fifth consecutive year

• SOE Awards 2011 for Outstanding Innovation for EGAT’s own patented Solar Weighted Tracking System development

• Thai Crown Standard Award from Thailand Greenhouse Gas Management Organization (TGO) for EGAT’s CDM Project, namely the Irrigation Valve Based Micro-hydropower Project for Kaeng Krachan and Mae Ngat Som

Boon Chon Dams which will contribute to CO2 emission reductions

• National Moral Marketplace and Assembly Awards for EGAT and its Governor as the public sector organization and role leader of integrity

• Workplace Safety Award from the Ministry of Labor for 28 Divisions and Units inside EGAT

• CSR-DPIM Certificate and Green Mining Awards from the Department of Primary Industries and Mines, Minis- try of Industry for EGAT’s Mae Moh Mine. This award is granted to workplaces with outstanding performance in 6 fields including accountability to society and environment, ability to reduce, prevent, and solve environmental effects, safety and health care for workers and surrounding communities, clean and green area providing, transparent operation, and efficient use of existing resources.

EGAT has continuously developed its governance systems and practices to serve the best interest of all stakeholders. In 2011, its governance practice still emphasized the independence as well checks and balances of its governance structure with diverse knowledge, skills and experiences to drive EGAT toward excellence. 77

1. Good Corporate Governance Policy

EGAT has set forth a Good Corporate Governance Policy to provide guidance for its management and employees in discharging their respective responsibilities. Additionally, EGAT Governor occasionally issues specific or urgent policies to enable EGAT to efficiently adapt to the rapidly changing environment.

2. Corporate Governance Structure 1. Independence and Balance

Independence is a key factor to enhance accountability of each Board member for the Board’s performance. Independent members shall be able to use their independent judgments and drive for change or inhibition of any execution when necessary. During 2011 the composition of EGAT Board of Directors included members from various agencies and institutions as follows:

Number of Persons Composition Cabinet’s resolutions on Cabinet’s resolutions on Oct. 19, 2010 and Apr. 20, 2011 Oct. 4, 2011 and Nov. 22, 2011

• Executive officer from the Ministry of Energy 1 1 • Executive officer(s) from the Ministry of Finance 1 2 • Independent Directors 8 7 • EGAT Governor 1 1

Total 11 11

Remarks: The number of independent members of EGAT Board of Directors is greater than general standard requirements and almost all of them are selected from the list of state enterprise director’s pool prepared by the Ministry of Finance.

2. Board Expertise

Members of EGAT Board of Directors are competent professionals who are well-versed in various specific areas beneficial for EGAT, including energy industry, business management and administration, engineering, HR management and labor relations, foreign affairs, political science, national security, natural resources and environment, economics, finance and treasury, communication and information technology. 3. Monitoring and Review of Key Systems

EGAT Board of Directors appointed seven committees to assist the Board in deliberating, approving, and reviewing action plans of EGAT’s five key systems as well as monitoring the operation and functioning of those systems which included risk management, internal control, internal audit, information technology management, and human resources management. Its Board committees include: 78

1. Executive Committee 2. Audit Committee 3. Corporate Governance Committee 4. Enterprise Risk Management Committee 5. Human Resources Committee 6. Committee for Deputy Governor Nomination 7. Committee for Assistant Governor and Division Director Nomination

In addition, financial and non-financial reports have been regularly prepared, either on a monthly or quarterly basis depending on their necessities.

EGAT Board of Directors has monitored the management and operations of EGAT mostly through the Board’s pre-scheduled meetings which are regularly held at least once a month. During the meetings, various observations and recommendations are provided and discussed. Other oversight ap- proaches include visiting EGAT’s offices and facilities, attending key events and activities held by EGAT, requesting information or inviting concerned parties to provide additional information.

During the year 2011, the Board of Directors reviewed EGAT’s critical risk factors and resolved to add two new risk factors to EGAT’s operation, including the risk concerning fuel diversification and its coal-fired and nuclear power project development since EGAT’s generation has depended largely on natural gas and thus exposing it to the high rising prices and short supplies of natural gas. In addition, issues concerning public understanding may pose critical risks to EGAT’s coal-fired and nuclear power development.

In respect of compliance, in addition its strict observation of all relevant laws and regulations as well as government’s policies, EGAT has also adopted the COSO’s enterprise risk management (ERM) system to further enhance its risk management effectiveness and enable EGAT to achieve its strategic goals and objectives. The integration of good corporate governance, enterprise risk management, and compliance practices has cultivated risk management as an integral part embedded in the corporate culture and thus, enhancing EGAT’s sustainable value.

In addition, EGAT has put in place an effective internal control system covering all key aspects, including finance, operation, and compliance as well as monitoring and evaluating to ensure that all operations run smoothly as planned.

For internal audit system, an Audit Committee was appointed by the Board of Directors to be responsible for overseeing the internal audit system of EGAT and its subsidiaries. The Committee has 79

quarterly reviewed their internal audit reports and follow-up actions in response to the Committee’s recommendations.

In respect of information technology system, the Board of Directors has appointed and delegated an Executive Committee to oversee EGAT’s IT system management and development, reviewing EGAT information technology and communication master plan before submission for the Board’s consideration. An EGAT Informa- tion Technology Sub-Committee (EITC) has been appointed and tasked with preparing reports on EGAT’s performance concerning information technology management and preparing EGAT Information and Communication Technology (ICT) Master Plan to be submitted to the Executive Committee and the Board of Directors for approval. The approved ICT master plan was later submitted to the Ministry of Energy and the Ministry of Information Technology and Communica- tion for acknowledgement.

With regard to human resources management, the Board of Directors appointed a Human Resources Committee to oversee and advise on EGAT’s human resources policies, plans and practices. The HR Committee has also reviewed EGAT Human Resources Master Plan prior to submission for the Board’s consideration. EGAT management has set up a Committee on Organization Policy and De- velopment (CPD) chaired by EGAT Deputy Governor-Administration to be responsible for preparing EGAT Human Resources Master Plan. In addition, the EGAT Act empow- ers the Board of Directors to guide and approve all policies in respect of human resource management, including the nomination and appointment of EGAT executive officers of Division Directors and higher positions and the issuance of EGAT’s regulations, etc. A wide range of HR related issues have been submitted for the Board consideration throughout the year.

3. Amendment of EGAT Corporate Governance Charter

EGAT has regularly reviewed its corporate governance charter to ensure its sound corporate governance system that meets international best practices. In 2011, five new charters or regulations were issued, including the Charters of the Executive Committee, Enterprise Risk Management Committee, Cor- porate Governance Committee, Human Resources Committee, and the Charter of the Nomination Com- mittees applied to the Committee for Deputy Governor Nomination as well as the Committee for Assistant Governor and Division Director Nomination. The five newly revised charters outline purposes, compositions and qualifications, authority and responsibilities, term and vacation of office, meetings and reporting, assessments, and remuneration of the committee members and etc. 80

4. Equal Treatment to Stakeholders

In effort to enhance corporate governance practices in the best interest of all stakeholders, EGAT has provided various communication channels for information service and complaints. The Informa- tion Management Committee has been appointed to be responsible for EGAT’s information service covering information of all operational lines and units. It has also promptly addressed all complaints received via EGAT Call Center Phone 1416 and the Government’s 1111 hotline. EGAT Good Corporate Governance Master Plan (2012-2016) has been formulated to provide a framework for EGAT to be the organization with good corporate governance, and its implementation can create satisfaction and receive acceptance from all stakeholders. Strategies of the Master Plan are as follows:

Strategy 1 Raising employee compliance awareness

Strategy 2 Improving EGAT’s business conducts and practices conducive to good corporate governance organizationwide

Strategy 3 Increasing communications to enhance public and stakeholder understanding and recognition of EGAT’s good corporate governance practices

Strategy 4 Promoting participatory approach in all EGAT’s operations

Strategy 5 Strengthening commitment to corporate social responsibility

Strategy 6 Promoting an open and transparent work environment in EGAT

In addition, EGAT always gives priority attention to corporate social responsibility and has long been committed to its social responsibility as an integral part of its primary mission. Social responsibility strategy has been integrated into the present corporate strategy map, setting EGAT’s strategic direction toward being a truly caring organization with due care for community, society and environment, and clearly outlining strategic objectives and initiatives driven by its honest and ethical business operations. EGAT’s strategies have reflected the systemic integration of social accountability into EGAT’s overall operations.

In addition, EGAT has also launched a wide range of activities to foster an employee volunteering value which is fundamental to CSR commitment. A large number of EGAT employees were found to have continuously dedicated themselves, devoting their own resources and time to social services for years. Data of these volunteer groups and type of social activities have been compiled for future employee volunteering programs. 81

5. Corporate Governance Enhancement and Dissemination

In 2011, a wide range of activities were implemented to enhance the involvement of all people organizationwide in good corporate governance with a view to nurturing it into the corporate culture, such as:

• Communication campaigns to raise employee awareness of good corporate governance, i.e. adding a new webpage dedicated to Good Governance issues to EGAT intranet website to disseminate knowledge, news and articles about good corporate governance, etc.

• Dissemination of news and information related to EGAT’s good corporate governance practices on EGAT’s internet website (www.egat.co.th) for the public’s easy access

• Issuing a Good Corporate Governance Handbook to provide guidance for standard practices for the entire organization

• Organizing seminars and training on corporate governance for EGAT executives and employees of all levels as well as presentations for each business unit to provide guidance on the deployment of EGAT corporate governance master plan into their respective action plans

• Cooperating with 22 associate agencies in the 5th National Moral Marketplace and Assem- bly in order to promote moral and ethics value for tangible results in Thai society

6. Information Disclosure and Transparency

EGAT gives priority to disclosing financial and non-financial information in its annual report and communicating news and information with all stakeholders with equity, in accordance with the Official Information Act B.E. 2540 (1997) and related laws. EGAT also places importance on financial and management reports which serve as its oversight tool and ensures the report’s accuracy, credibility, actuality, and accountability to reduce any risks that might affect its operation. EGAT’s emphasis on the transparency of its operation has been based on the principle that employees at all levels perform their duties to maximize EGAT’s benefits without personal interest involvement.

7. Ethics and Code of Conduct

EGAT issued Code of Conduct and Ethics to provide guidance for the Board of Directors, Executives, and employees in interacting with all stakeholders. They are also required to discharge their respective duties in compliance with the Notification of the National Anti-Corruption Commission B.E. 2543 (2000), concerning the provisions for the acceptance of property or any other benefit on ethical basis by state officials, B.E. 2543 (2000), which was also included in EGAT Good Corporate Governance Handbook. EGAT has promoted ethical conducts and accountability among various units which have subsequently 82

communicated with staff in their respective units about EGAT’s expectations of required ethical behaviors, particularly centered around learning, honesty, transparency, and social accountability. Required Behav- iors Enhancement Handbook was issued to strengthen the perception and understanding of employees at all levels. Executive ethical role models have been publicized in EGAT in-house news, posters, and other channels to provide good examples for employees. Besides, EGAT’s participation in the National Moral Marketplace and Assembly as a model organization of high ethical standards had contributed to better ethical understanding and motivation. During the year, EGAT also conducted behavioral surveys to observe opinions of its employees regarding required behaviors.

8. Conflicts of Interest

Processes for the disclosure of conflicts between personal and public interest have been developed and stated in EGAT’s Good Corporate Governance Handbook. All executives of Deputy Governor level and higher must fully disclose their assets and liabilities upon taking office, at each year end, as well as when the conflict of interest arises, and when conflict issues are founded and reported by the procurement committee while performing the duty. 83

Official Information Act Compliance Report

A Committee on EGAT Information Management has been appointed to oversee and ensure that EGAT’s information disclosure and management fully comply with the Official Information Act B.E. 2540 (1997). The Committee chaired by Assistant Governor - Corporate Social Responsibility is responsible for determining policies, rules or criteria and procedures regarding information management, categorizing, request, permission and services, with the endorsement of EGAT Deputy Governor - Corporate Social Re- sponsibility. EGAT Information Center located at EGAT Head Office has also been established since 2000 to provide information service in accordance with EGAT information management policy with a commitment to provide news and information service to interested persons and the general public in a fair, equitable, and transparent manner and in complete compliance with the Official Information Act B.E. 2540 (1997) and other relevant laws.

Public Information and Disclosure

EGAT has put in place its information disclosure system which defines clear rules, procedures, systems and practices for the disclosure of information about EGAT’s operations and activities. Much of EGAT’s information is available at the EGAT Information Center in various forms, such as documents, electronic filings, audiotext, fax on demand, and assistance by EGAT staff. Interested persons can visit the Center to search and peruse information, documents and publications at the center by themselves or seek help from EGAT staff. In addition to the information provided at the Center, detailed information on specific issues can also be reached from depository libraries of concerned divisions.

Internet-Accessible Information

EGAT website: www.egat.co.th provides another easy public access to a wide range of EGAT’s information, operations and activities, such as corporate profile, its operations, information and data on generation and transmission systems, energy sales, power development projects, etc. Contents and data on the website are regularly updated. Interested people can also send their inquiry or complaints to EGAT via its website channel.

EGAT Call Center

EGAT Information Center has been equipped with an automatic call center service with the call center phone number +66 (0) 2436 0000 to provide information via interactive voice response, audiotext, fax on demand, or line transfer to concerned divisions, etc. In a continuing effort to further improve its service, EGAT has introduced a new Call Center Phone Number 1416 as a more convenient and quicker channel to contact EGAT around the clock. Since March 23, 2010, EGAT has been licensed to use the new four-digit phone number 1416 to serve as its hotline phone number to facilitate the public reporting of emergency situations related to the power supply system, such as power supply interruptions, transmission line and equipment theft, as well as public inquiry. In December 2011, EGAT started the testing of the new Call Center Phone 1416 system which will replace the old 0 2436 0000 Call Center phone number in 2012. 84

Activities of EGAT Information Center

In 2011 EGAT Information Center provided information services through its Call Center system. Types of information of public interest in 2011 ranged from information about EGAT’s operations and business, EGAT’s CSR activities, job recruitment, internship training opportunities, requests for visits to EGAT’s offices and power plants, transmission line right-of-way, to locations and phone numbers of EGAT’s offices, sites and individual staff.

The Information Center also provided information service upon request by walk-in interested visitors and requests via EGAT website.

EGAT Information Management Committee

In addition to its role regarding setting policies and guide rules on public information disclosure, the Committee on EGAT Information Management also considers and reviews legal requests for or objec- tions to official information disclosure. In 2011, major considerations by the committee included the following.

• Approval for a request by the Law Enforcement Investiga- tion Organization (Northern Region), a non-government organization to observe EGAT’s auctioning of insulated scrap copper wire and telephone cable at Mae Moh Mine in Lampang province and to have a copy of bidding results after bid closing

• Considering a request by the Coordinating Center for Public Sector Network of 8 Mekong Ripar- ian Northeastern Provinces for a copy of the Power Purchase Agreement and annexes EGAT entered with Xayaburi Hydroelectric Project of Laos

• Considering a request by the Environmental Protection Network for Nan Community for a copy of the Power Purchase Agreement and annexes EGAT entered with Hong Sa Lignite-fired Power Project of Laos.

Public Complaint Process

The 2007 Thai Constitution (Section 59) contains provisions affirming people’s right to lodge complaints and to be informed of the results of the complaint considerations without delay. In this regard, the Office of the Permanent Secretary under the Prime Minister’s Office which has served as the central entity in charge of the government’s Public Service Center has continuously developed administrative systems, procedures and systems to improve the efficiency and quality of the delivery of public service in addressing public complaints relating to public services and operations of all state agencies including EGAT. 85

The Public Service Center’s four different channels to receive public complaints are:

• Government telephone hotline: 1111

• Government’s central website: www.1111.go.th

• Government postal mailbox: P.O. Box 1111

• 1111 Public Service Counter located at the Government House

Complaints, appeals and enquiries received from the above-mentioned channels will be recorded and directed through the ICT network to responsible agencies for immediate actions. During 2011, EGAT received totally seven public complaints and opinions through the government’s central public complaint channels. EGAT had promptly addressed all of the complaints and issues and reported results to all concerned parties.

In addition, another working committee has been set up to specially handle concerns, questions, or anonymous reporting raised either by EGAT employees or the general public. In 2011, the committee has conducted impartial investigations and properly acted on 45 issues of concerns. 86

Power Development and Future Plan

Thailand Power Development Plan 2010 - 2030 (PDP 2010) was approved by the National Energy Policy Council (NEPC) and the Cabinet in March 2010. Based on the policy framework of the Ministry of Energy, the PDP 2010 was designated as a green PDP which highlighted not only on energy security and power demand fulfillment, but also on greenhouse gas emission reduction and promotions of electricity production through cogeneration system, energy efficiency improvement and renewable resources in accordance with the Ministry’s 15-year Renewable Energy Development Plan (2008 - 2022).

However, the significant increase of electricity demand coupled with the delay of Independent Power Producer (IPP) projects resulted in the risk of insecure level of reserve margin. Therefore, to solve this problem, the government decided to launch PDP 2010: Revision 1 which expedited the scheduled commercial operation dates (SCODs) of three combined cycle power projects implemented by EGAT and urged to increase the amount of power purchase from SPP’s cogeneration system to 3,500 MW in total by the year 2019. The amendment of the power development plan was endorsed by NEPC and the Cabinet in November 2010.

The Fukushima Daiichi nuclear power plant incident triggered by the March 11, 2011 Great East Japan Earthquake and Tsunami has caused impacts on nuclear power development world-wide. In Thailand, the Ministry of Energy proposed to postpone the country’s first nuclear power project in the current power development plan by 3 more years in order to review nuclear safety standards and prepare legislative and regulatory frameworks. The revised power development plan or PDP 2010: Revision 2 which was executed as a short-term adjustment was approved by NEPC and the Cabinet on April 27 and May 3, 2011 sequentially. Under the newly-revised plan, the scheduled operation date of the first nuclear power project would be postponed from 2020 to 2023, and a gas-fired power project was selected as a replacement.

At the end of 2011, preparation was underway for the adjustment of the long-term power development plan. In the meantime, severe floods occurred during October - December 2011 in several provinces in the northern, central and metropolitan areas including Bangkok, causing widespread and severe impacts on all economic sectors during the last quarter of 2011. The National Economic and Social Development Board (NESDB) revised its estimate of gross domestic product (GDP) growth rate for the year 2011 from 3.5 – 4.5 to only 1.5 percent. The Thailand Load Forecast Subcommittee thus had to revise the existing load forecast to correspond with the revised GDP and take into account the impact of the flood crisis on the country’s power supply system.

Owing to the flood crisis, the Energy Ministry requested to ex- ecute a new revision of the national power development plan which is expected to be completed in 2012. Meanwhile, certain power projects in the short run have been rescheduled in accordance with the government policies in order to meet power demand and maintain reserve margin at an appropriate level throughout the planning period. Major projects in the short-term period of 2012 - 2019 are listed as follows: 87

EGAT’s Power Projects

The contractual capacity of EGAT’s new power projects during 2012 - 2019 totals 3,932.80 MW consisting of:

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

1. Wang Noi combined cycle block 4 Ayutthaya natural gas 800 Apr. 2014

2. Chana combined cycle block 2 Songkhla natural gas 800 Apr. 2014

3. North Bangkok combined cycle block 2 Nonthaburi natural gas 800 Apr. 2015

4. Krabi clean coal thermal power project Krabi coal 800 Jun. 2019

5. Renewable energy power projects Several wind, solar, 732.8 2012 - 2019 sites hydro, waste

Total 3,932.8

Power Purchase Independent Power Producer (IPP) Projects

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

1. GHECO-One Co.,Ltd. Unit 1 Rayong coal 660 Feb. 2012

2. Gulf JP NS Co.,Ltd. Blocks 1 - 2 Saraburi natural gas 1,600 Jun. - Dec. 2014

3. Gulf JP UT Co.,Ltd. Blocks 1 - 2 Ayutthaya natural gas 1,600 Jun. - Dec. 2015

4. National Power Supply Co.,Ltd. Chachoengsao coal 270 Nov. 2016 Units 1 - 2

5. National Power Supply Co.,Ltd. Chachoengsao coal 270 Mar. 2017 Units 3 - 4

Total 4,400

In the period of 2012 - 2019, a total of four IPP developers were selected to provide 4,400 MW. On June 28, 2010, Gulf JP UT Company (GUT), or formerly Siam Energy Company, was approved by NEPC to relocate its project site from Chachoengsao province to a new site in Rojana Industrial Park in Ayutthaya province. In addition, following the amendment of the power purchase agreement (PPA) on May 30, 2011, the commercial operation of GUT’s combined cycle blocks 1 and 2 were rescheduled for June and Decem- ber 2015 respectively. 88

During 2011, GHECO-One’s power project could not start operation as previously scheduled for November 2011 since its Environmental Health Impact Assessment (EHIA) report, which was submitted to the Office of Natural Resources and Environmental Policy and Planning in February 2011 and approved by its Specialist Panel, has presently been under consideration by the Independent Commission on Environ- ment and Health for opinion, and relevant authorities for granting of applicable operating licenses. The company’s power project was rescheduled for operation in February 2012. Small Power Producer (SPP) Projects

The present PDP 2010: Revision 2 also includes 6,430.50 MW of power capacity to be purchased from small power producers (SPPs) during 2012 - 2019, consisting of 5,024 MW of power from firm energy contract SPPs using cogeneration system, 90 MW from SPPs using renewable energy, and 1,316.50 MW from SPPs with non-firm energy contracts. Power Import from Neighboring Countries

As of December 31, 2010, EGAT purchased a total of 1,891 MW from 4 power projects in Laos. In 2011, a power purchase agreement (PPA) was reached for the purchase of power from of Xayaburi hydroelectric project in Laos. This added the signed power purchase from foreign power projects currently under construction to 2,913 MW.

Nevertheless, the PPAs of 3 foreign power projects were signed later than the dates specified in the Tariff Memorandum of Understanding (Tariff MOU). Hence, their schedules of operation were slightly delayed from previous schedules. In addition, negotiations have been underway for additional power purchase from other foreign power projects. During 2011, an MOU was signed with Nam Ngiep project, making a total of three power projects with signed MOUs totaling 1,099 MW. PPAs for these power projects will be later executed. For Mai-Khot coal-fired power project, on account of Tariff MOU expiration, the project has been temporarily excluded from PDP until a new negotiation is addressed.

In all, the total capacity of foreign power purchase to be added to the power system between 2012 and 2019 will be 4,012 MW from 6 projects as follows:

PPA-signed Projects currently under construction

Project Energy Source Contractual SCOD Capacity (MW)

1. Theun Hinboun expansion phase hydro 220 Jul. 2012

2. Hongsa thermal units 1 - 3 lignite 1,473 Jun. - Nov. 2015 & Mar. 2016

3. Xayaburi hydroelectric project hydro 1,220 Oct. 2019

Total 2,913

MOU-signed Projects

1. Nam Ngum 3 hydro 440 Jan. 2017

2. Xe Pien hydro 390 Jan. 2018

3. Nam Ngiep hydro 269 Jan. 2018

Total 1,099

Grand Total 4,012 89

Transmission System Development Projects

In the year 2011, EGAT has continuously planned and developed new transmission system projects to maintain the system reliability and increase the power transfer capability of the transmission system to serve the growing electricity demand of the country. Several transmission system projects have also been developed to accommodate power purchase from both domestic large-scale IPP projects and IPP projects in neighboring countries. These transmission system interconnection projects will further enhance system reliability and reduce system outages, and thus, minimizing the country’s economic loss caused by outages. Major transmission system development projects are as follows: On-going Transmission System Projects

1. Bulk Power Supply for the Greater Bangkok Area Phase 2 Project

This project consists of the construction of new transmission lines and the upgrade of existing lines totaling 88 circuit-kilometers long, installation of transformers totaling 4,600 MVA and voltage control equipment totaling 1,334.4 MVAr. At the end of 2011, the project engineering work progressed to 95.71 percent completion. This 9,170 million baht project is scheduled for operation in 2015.

2. 500 kV Transmission Line Project for Power Purchase from IPP Projects in Eastern Area

This transmission system project involves the construction of main transmission grid system to receive electric power from IPP projects located on the Eastern Seaboard of the Gulf of Thailand. The project consists of the construction of 500 kV double-circuit lines (3rd and 4th circuits) over a distance of approximately 159 kilometers from Pluak Daeng Substation to Nong Chok - Wang Noi Junction. The project will enhance the system reliability and will accommodate future grid connection of new IPP projects. The project engineering work was completed in October 2011. This 4,985 million baht project will come online in 2012.

3. Transmission System Expansion Project No. 11

Transmission System Expansion Project No.11 (TS.11), a successive scheme of the TS.10 project, covers a pack- age of transmission system expansion and reinforcement projects in all provincial areas countrywide, except the Greater Bangkok area, to strengthen the system reliability and support the expansion of PEA’s distribution systems. The TS.11 scheme consists of the construction of transmission lines of approximately 1,778.8 circuit- kilometers, 6 new substations and the installation of transformers of 4,500 MVA and voltage control equipment of 1,560 MVAr. At the end of 2011, the engineering work of the overall project achieved 88.89 percent progress. This 23,000 million baht project will be completed in 2014.

4. Transmission System Development for Power Purchase from IPP Projects

This transmission system project is to accommodate electric power purchase of 4,400 MW from four awarded IPP projects including GHECO-One Unit 1, National Power Supply Units 1 - 4, Gulf JP UT Blocks 1 - 2, and Gulf JP NS Blocks 1 - 2. The investment cost of the project is 7,985 million Baht. At the end of 2011, the transmission system project to accommodate power purchase from the Gheco-One power project reached 89.69 percent progress and will be due for service in 2012 whereas the construction of transmission systems for Gulf JP NS project and Gulf JP UT project progressed to 54.66 percent and 24.16 percent completion. The latter two projects will be completed in 2013 and 2014 respectively. During the year, the transmission system project for National Power Supply power project had been delayed pending the power project rescheduling.

5. Transmission System Development for Power Purchase from Theun Hinboun Expansion Project

This transmission system project is to receive electric power from Laos’ Theun Hinboun Expan- sion project which will add a new generating unit of 220 MW to the existing 220 MW hydroelectric plant site. The project consists of the construction of a new 230 kV Nakhon Phanom 2 Substation and transmission lines of 108 circuit-kilometer length. At the end of 2011, the project construction reached 95.41 percent completion. The 665 million baht transmission system project will start commissioning in 2012. 91

6. Transmission System Development for Power Purchase from Hongsa Power Project

This transmission system project is to accommodate electric power import from Hongsa lignite- fired power project in Laos, which will supply 1,473 MW of power to Thailand. The transmission system project consists of new 500 kV transmission lines linking the delivery point on the Thai-Lao border in Nan province with Mae Moh 3 Substation and an upgrade of existing transmission lines with a total distance of approximately 1,192 circuit-kilometer length, a new substation, and additional transformers of 1,150 MVA. At the year end, the project engineering work progressed to 42.08 percent. The 21,160 million baht transmission project is scheduled for completion in 2014.

7. Transmission System Development for Power Purchase from Nam Ngum 3 and Nam Theun 1 Power Projects

This is a transmission project to receive 963 MW of power import from two hydropower projects in Laos, namely Nam Ngum 3 and Nam Theun 1 power projects. The project features the construction of 728 circuit-kilometers transmission lines including the 500 kV Nam Phong 2 - Chaiyaphum 2 - Tha Tako transmission lines and the 500/230 kV interconnection system linking Nabong substation in Laos with EGAT’s Udon Thani 3 and Nam Phong 2 Substations, and the 230 kV lines linking Chaiyaphum 2 and Chaiyaphum Substations. The project also includes the construction of a new substation and additional transformers of 4,000 MVA. At the year end, the project engineering work progressed to 21.04 percent. The 17,550 million baht transmission project is scheduled for completion in 2015.

8. Transmission System for Chana Combined Cycle Block 2 Project

This project to link EGAT’s new 800 MW Chana combined cycle block 2 to the grid system involves the construction of 230 kV transmission lines of 90 circuit-kilometers linking Chana power plant with Chana Junction and Khlong Ngae substation and the expansion of two substations. At the end of 2011, engineering work of the project achieved 48.60 percent completion. The 1,290.50 million baht project will become operational in 2014.

9. Transmission System for Wang Noi Combined Cycle Block 4 Project

This project is to link EGAT’s new 800 MW Wang Noi combined- cycle block 4 with the grid system. The project consists of 500 kV transmission lines of 1.2 circuit-kilometers and the expansion of 500 kV Wang Noi substation. At the year end, the project’s engineering work achieved 37.85 percent progress. The 68 million baht transmission project will be completed in 2013.

10. Transmission System Expansion and Renovation Project, Phase 1: Substation

The project involves the improvement and/or replacement of aged substation equipment and control systems of 15 old substations and other miscellaneous transmission system expansion. The project is aimed at increasing the availability, reliability and security of those transmission equipment. The project was approved for construction in January 2011 with a total investment cost of 3,815 million baht. At the year end, the project progressed to 0.89 percent and will be due for service in 2015. 92

11. Transmission System for Power Purchase from Mai-Khot Power Project

This project is to accommodate power purchase from the 405 MW Mai-Khot coal-fired power project in Myanmar which will sell 369 MW of power to Thailand. The project includes the construction of 230 kV lines of 220 circuit-kilometers, one linking Mai-Khot power plant to the Thai-Myanmar border in Chiang Rai province and Mae Chan substation and another linking Mae Chan substation and Chiang Rai substation. The project also includes the expansion of two existing substations and installation of additional transformers of 400 MVA. At the year end, the project engineering work progressed to 5.59 percent. The 2,740 million baht project will be completed in 2015.

12. New Interconnection System Project between Su-Ngai Kolok Substation (EGAT) and Rantau Panjang Substation (TNB)

This project is to construct a new transmission interconnection system between EGAT’s Su- Ngai Kolok Substation in Narathiwat province and TNB’s Rantau Panjang substation in Kelantan, Malaysia to receive more power import from Malaysia to particularly strengthen security and reliability of power supply in the southernmost Narathiwat province. The project features a new 132 kV transmission line connect- ing Su-Ngai Kolok substation with the delivery point at the Thai-Malaysian border in Narathiwat province, the upgrade of two substations and the installation of two tie transformers of 200 MVA. In 2011 the project achieved 27.91 percent progress. The 535 million baht project is planned for service in 2014.

13. Transmission System Expansion Project for Lam Takhong Wind Turbine Project, Phase 2

The project is to connect the power from the 2nd phase of Lam Takhong wind turbine project to the grid system. The transmission project includes the construction of a new substation and associated transmission lines. In 2011, engineering work of the project progressed to 19.48 percent completion. This 265 million baht transmission project will come online in 2013.

14. Main Transmission System Expansion Project for Power Purchase from SPPs’ Cogen- eration System

The project involves the expansion of major transmission lines and systems to accommodate the increasing power purchase from SPPs’ cogeneration power projects in response to the Government’s policy on the promotion of renewable energy development and efficient energy use of cogeneration system. The project costing totally 10,610 million baht involves the construction and upgrade of associated transmission lines of 482 circuit-kilometer length, a new substation, and the installation of additional transformers of 2,650 MVA. The project was approved by the Cabinet in October 2011 and is scheduled for service in 2015. Transmission System Projects under Approval Process

1. Transmission System Expansion and Renovation Project, Phase 1: Transmission Line

This project involves the replacement and upgrade of aged transmission lines and related equipment of 15 line routes and other miscellaneous transmission system expansion with the aim of maintaining the continuity and efficiency of power transfer. The 9,850 million baht project is planned for service in 2016. 93

2. Northeastern Area Transmission System Development for Power Purchase from Lao PDR Project

This transmission system project is to receive electric power from the Xayaburi hydroelectric power plant project in Lao PDR, which will supply 1,220 MW of power to Thailand. The project involves the construction of 500 kV double-circuit transmission lines from Thai/Lao Border in Loei province to a new Loei 2 Substation and a new Khon Kaen 4 Substation and associated transmission lines totaling 650 circuit-kilometers, 2 new substations, and the installation of transformers of 1,000 MVA. The12,060 million baht project is planned for completion in 2017.

3. Transmission System for North Bangkok Block 2 Project

This transmission system for EGAT’s 800 MW North Bangkok combined cycle block 2 project involves the construction of 230 kV underground transmission lines of 500 meter length linking North Bangkok power plant block 2 with the adjacent power plant block 1 and the expansion of the existing North Bangkok substation. The 179.10 million baht transmission project is planned for operation in 2014.

4. Transmission System Expansion and Renovation Project, Phase 2

This project is a successive scheme of the Transmission System Expansion and Renovation Project, Phase 1, and covers the replacement and upgrade of both aged substations and transmission lines. The project consists of the expansion and renovation of 19 substations and 11 transmission line routes and other miscellaneous transmission system expansion. The 21,900 million baht project is planned for service in 2017. 94

Research and Development

EGAT has continuously supported and encouraged research and development projects undertaken by EGAT people as well as outside institutions with an emphasis on six main purposes as follows:

• To replace import of electrical power technologies, materials, and equipment

• To contribute to peak cuts or improved energy efficiency

• To develop new energy alternatives for electricity generation

• To improve efficiency and/or lower production cost

• To prevent and mitigate environmental and social impacts caused by power operations and associated activities

• To support social research for the development of quality of life of communities around EGAT’s power plants

In 2011 EGAT has funded a total of 22 new research and development projects. Meanwhile, a total of 27 R & D projects were completed during the year, including the following.

Solar Weighted Tracking System

This R & D project is to design and build a solar tracking system which uses local materials with lower cost and more energy saving. The new system can help improve the performance of the PV system by as much as 28 percent in the month of June compared with the fixed PV system. This single axis solar tracking system using weight of water works during 9 a.m to 3 p.m. The system is also equipped with a shock absorber to prevent flicker caused by wind or storm.

The project results showed that the solar weighted tracking system can be produced at cheaper cost with low maintenance and low electricity consumption. Compared with the conventional fixed PV system, EGAT’s solar weighted tracking system can improve the annual efficiency of the PV system by 15 percent for crystalline silicon solar cells and 12.74 percent for amorphous silicon solar cells. In 2011 EGAT’s solar weighted tracking system project was awarded the State Owned Enterprise (SOE) Award in the category of Outstanding Innovation.

Tool-Path Planning and Command-Code Generation for Robot Thermal-Spray Coating System

This R & D project is aimed to enhance the capability of the robot- guided spray coating system currently used by EGAT. The research focuses on developing the software tool using open source software to generate collision-free robot motions required for the inner-surface thermal barrier coating (TBC) of different internal parts such as transition ducts and turbine vanes. The software also simulates the robot motions prior to the actual coating process and utilizes a spray deposition model in the tool- path generation. The outcomes of this research project include: 95

- Creating new pieces with different characteristics, such as transition pieces, combustion basket and complex items such as turbine vane, turbine blade, and shroud, etc.

- Designing tool-paths of the robotic arm for spray coating of the internal and external surfaces of transition ducts and other work pieces with complex nature.

The software programs developed by this R & D project have worked well and will contribute significantly to greater efficiency of EGAT’s maintenance work.

Development of Ternary Binder System Containing Cement, Limestone Powder and Mae Moh Fly Ash

This project was aimed at studying the effects of fly ash from Mae Moh power plant (with various free lime contents) on the properties of concrete incorporating cement, fly ash, and limestone powder as binders. The project also studied the basic properties of paste and mortars as well as the mechanical properties and durability properties of composite cement containing cement, fly ash and limestone powder. Industrialized limestone powder with no or minor contaminant and Mae Moh fly ash were used in this research. Free lime was added to the originally collected fly ash in order to vary free lime content of fly ash.

Test results revealed that ternary blended concrete yielded higher performance than binary blended concrete; either cement and fly ash or cement and limestone powder. Moreover, the added free lime had only little effects on fly ash-cement mixtures, i.e. faster setting, higher compressive strength especially at early age and higher autoclave expansion. However, the high autoclave expansion problem could be less- ened by the use of ternary blended system. In terms of durability, fly ash with high free lime led to higher expansion due to alkali-aggregate reaction and poorer sulfate resistance in sodium sulfate and magnesium sulfate solutions. Carbonation depth, shrinkage and chloride resistance were only slightly affected by the added free lime. 96

Development of Repair Potential for Gas Turbine Spare Parts

The objective of this research was to develop parts manufacturing and repairing technology. It aims to reduce maintenance cost and enhance knowledge and experiences of EGAT staff. The research focused on fuel nozzle manufacturing and sheet metal parts repair. For fuel nozzle manufacturing, Reverse Engineering (RE) was firstly carried out to identify material types using Spectrometer and 3D CAD models through Coordinate Measuring Machines (CMM). With the cooperation of the Asian Institute of Technology (AIT), the tool paths of CNC milling machine generated from the CAD models were used for parts manufacturing. All parts were assembled and flow tested. The flow test results of the nozzles were acceptable according to the OEM standards. For sheet metal parts repair, the researchers, in cooperation with the research teams from the National Metal and Materials Technology Center (MTEC) and King Mongkut’s University of Technology Thonburi (KMUTT), studied the effects of thermal spray coating parameters on the quality of thermal and wear resistance coating. Mold and Die fabrication technology was developed for transition piece models using computer simulation. Moreover, the proper repaired conditions for combus- tor baskets were examined in terms of cleanness of the repaired surface, brazing temperature, and holding time. The outcomes of this research will enable EGAT to manufacture and repair gas turbine parts and other parts of its power plants with premium quality, at a competitive price and within short delivery time in the near future. 97

Organization and Human Resource Development

Human Resource Management EGAT values its employees as the most important resources vital for the organization’s sustainable growth. Its HR management has emphasized continual development of both EGAT people and HR systems to efficiently drive EGAT’s mission and goal. In 2011, EGAT had continuously revised its 5-year manpower plan to better adapt to changing conditions. Strategic directions and action plans under the revised manpower plan remained focused on developing and preparing, on a continual basis, young blood employees to readily succeed retiring employees in the near future. This is to ensure that EGAT will be adequately equipped with a fine balance of competent and qualified manpower for all key functions to drive business continuity in the long run.

During the year 2011, the corporate HR policy has been revised to provide more articulated policy and guidelines for efficient and consistent HR practice by all units organization-wide. Its key HRM tools including its performance- and competency-based management system program (PMSP) have also been improved. In 2011, EGAT has implemented an Assessment Center System, starting with the assessment of a number of high level executives. The system is a key component of EGAT’s succession planning program to select appropriate candidates for executive promotion. The evaluations are aligned to EGAT’s key business drivers and goals. Results of the evaluations will also be used in planning individual training and development programs for the executives. In 2012, the competencies for employees of various levels used in the performance-based management system will be further assessed to ensure consistent performance appraisal criteria across the organization.

Human Resource Development EGAT highly values the continuous development of its employees, from the very first day they join EGAT to their retirement. Its human resource development (HRD) programs are tailored to all functions and cover many areas, including technical training, managerial development, health, safety and quality of life improvement and morale enhancement. EGAT HRD Policy is aimed to build professionally competent, good and happy employees with high morale and quality of work life. This is based on the belief that employees with such qualities will lead the organization towards its goal of “Becoming National Pride”.

EGAT also gives high priority to the self-development of each employee as well as the role of supervisors in coaching and mentoring to improve the employees skills and capability and inculcate the corporate core values and culture into the employees, particularly new recruits. In 2011, EGAT’s Development Roadmap encompassed four major dimensions provided for different groups of employees as follows:

1. Management Program This program is designed to develop employees in managerial positions from intermediate supervisors to those in executive levels. The program consists of various development courses and calibration exercises where management will be assessed in 4 dimensions of Success Profile and will then be developed accordingly. EGAT Management of level 11 and higher will be assessed through the Assessment Center system. Then, an individual development plan (IDP) will be designed to provide necessary competency development needed by each executive, including both overseas training and technical visits. 98

2. Preparatory Programs for non- management groups This includes programs designed to prepare the employees who will be promoted to managerial positions as well as an Orientation Pro- gram for new recruits. EGAT has placed special importance to the development and the socialization of new employees. New employees will learn about the organization, mission and responsibilities of each line function. Also, core values, organizational culture and a sense of social responsibility and accountability are instilled through action learning activities of the orientation program.

3. Technical Training Programs have been specifically designed to serve specific needs of each individual divisions/ units.

4. General Development Programs involves training and development courses on various areas, such as safety, quality and productivity improvement, computer and IT-related training, ethics and morale enhancement, as well as health care and quality of life development tailored to different age groups of employees, including those who are retiring. In addition, in-country and overseas training and development programs are provided to create business alliance network and broaden experiences of EGAT personnel.

Information and Communication Technology Management EGAT has continuously developed its information and communication technology management as one of the key objectives to achieve EGAT’s strategic direction toward being a dynamic high performance organization. A five-year information and communication technology (ICT) master plan has been formulated to provide a framework for EGAT’s ICT development. In 2011, the plan was revised and updated to better adapt to changing conditions. The new ICT master plan (2012 – 2016) outlines key ICT strategies, including:

Strategy 1: Develop EGAT’s ICT professionals both in terms of quality and quantity to create, produce and use ICT in an efficient, effective, ethical and discreet manner

Strategy 2: Strengthen EGAT’s ICT governance

Strategy 3: Develop EGAT’s ICT infrastructure

Strategy 4: Use ICT to enhance good governance in EGAT’s administration and services

Strategy 5: Use ICT to increase EGAT’s sustainable competitiveness.

Initiatives and action plans have been developed with targets and performance measuring indica- tors being clearly defined. The framework provided by the revised ICT master plan will ensure that the deployment of those initiatives and plans by all business units and divisions is aligned with EGAT’s strategies and objectives, thus maximizing benefits for EGAT’s operation and boosting trust and confidence of all stakeholders and the general public. 99

Information Technology (IT) Security

In 2011 the Electronic Transactions Commission of Thailand approved and certified EGAT’s IT security policy, IT security standards and IT security manuals. In addition, an annual review of the ISO/ IEC 27001:2005 certification has successfully been made by TUV NORD (Thailand) Company to ensure the verification of EGAT’s Internet services which include E-mail, internet, intranet, extranet, modem/ VPN (virtual private network), and infrastructure supporting services.

Since its first operation in late 2009, EGAT Enterprise Resource Planning (ERP) system, which became its key IT backbone, has continuously been maintained and improved for its higher efficiency in accordance with business procedures. Besides, in effort to strengthen security of the system, an ERP disaster recovery test has been regularly conducted. In 2011 test results indicated a better system performance than the set targets. Despite the widespread damages to various sectors caused by the country’s severe flood crisis in late 2011, owing to EGAT’s preventive measures prior to flooding, its major IT systems and infrastructures had been well protected physically and technically and had operated normally throughout the flooding period. 100

Corporate Social Responsibility

Throughout its operations and activities in providing quality electricity service at reasonable price to support economic and social development and the wellbeing of the Thai society, EGAT always stays committed to its accountability to society and environment both in and after processes. It always operates responsibly in full compliance with all applicable regulations and laws and enhances public and community participation in its operations and activities. Environmental compliance is one of the fundamental principles of EGAT’s good governance practices. In addition, a wide range of social and environmental development projects have also been carried out throughout the year in effort to build capacity of local communities and improve quality of life and the environment.

Environmental Responsibility

EGAT has always been committed to conducting its business and operations in a socially and environmentally responsible manner, ensuring its complete compliance with all applicable environmental laws and regulations, industry codes and safety standards as well as the international environmental management system practices. EGAT’s advanced environmental management and pollution control technologies have resulted in its better standards than regulatory compliance. It has also enhanced public and community involvement in all stages of its project development to achieve sustainable development. In addition, various initiatives and innovative efforts have also been undertaken to pursue the green power development and further reduce greenhouse gas emissions from its operations. Major environmental efforts in 2011 are summarized as follows.

Environmental Impact Assessment

EGAT has conducted environmental impact assessments (EIA) for its power development projects and associated facilities projects, giving special attention to health impact assessment (HIA) and social impact assessment (SIA). Following the approval for an EIA report of Chana combined cycle block 2 by the National Environmental Board, the Cabinet gave approval for the project construction in February 2011. Its EIA report for North Bangkok combined cycle block 2 project was also completed during the year and was submitted for further approval.

Environmental Impact Mitigation and Monitoring

EGAT has rigorously undertaken environmental impact mitigation and monitoring for its power projects under construction as well as its in-service power plants and associated facilities to prevent, control and minimize detrimental impacts on the environment and local communities. Environmental quality monitoring has been conducted regularly for air quality, water quality, noise levels, as well as surveys of community and public opinions and concerns. The monitoring results of all EGAT’s power facilities throughout the year 2011 were well within the national environmental quality standards.

Environmental and Social Research and Development

EGAT has constantly supported research and development (R & D) both conducted by EGAT teams and external institutions. New R & D projects funded by EGAT in 2011 also included 12 R & D proj- 101

ects which particularly focus on environmental impact prevention and mitigation, community development for local people in the power plant neighborhood, and development of green energy for power generation. In addition, EGAT has also teamed up with academic institutions in an R & D project to develop Thailand’s wind database as part of a climate change database development project.

Stakeholder Participation

EGAT has emphasized public and community involvement in all phases of its project development to listen to, consult and respond to opinions, suggestions and concerns of the local communities, other stakeholder groups and the public. In 2011, a total of nine programs of public meetings and consultations were organized for EGAT’s four new development projects.

Clean Development Mechanism (CDM) Projects

EGAT has promoted the development of clean development mechanism (CDM) projects with a view to reducing greenhouse gas emissions from its operations. To date, eight CDM projects developed by EGAT have received the Letter of Approval (LoA) from the Thailand Greenhouse Gas Management Organization (TGO) including:

• 5 small-sized hydropower projects located downstream of the in-service diversion dams of the Royal Irrigation Department (namely Chao Phraya, Mae Klong, Pasak Jolasid, Khun Dan Pra- kan Chon, and Khwae Noi irrigation dams)

• 1 MW Sirindhorn solar cell power project

• A steam turbine efficiency improvement project for Mae Moh lignite power plant units 10 – 11

• An irrigation valve based micro hydropower project for Kaeng Krachan and Mae Ngat Somboon Chon dams

The irrigation valve based micro hydropower project received the LoA from TGO in February 2011 and has also been designated a Crown Standard CDM project which meets all criteria of sustainable development.

Environmental and Social Management of Power Project Construction

Social and environmental management is integral to the development of EGAT’s power projects to achieve sustainable development. All activities associated with the construction of its power projects have been undertaken in strict compliance with all related environmental regulations and legislation. Impact prevention and mitigation measures as well as social and environmental action plans specified by each project’s EIA report have been implemented with particular emphasis on a health impact assessment (HIA) and a social impact assessment (SIA) and covered all environmental and social aspects, i.e. quality of physical and biological environments, land use, and quality of life. Applicable environmental control technologies 102

and appropriate management system have been adopted such as ISO 14001 Environmental Management System, OHSAS/TIS 18001 Occupational Health and Safety Management Systems. Public and community participation programs and activities have been implemented all along to listen and tend to opinions of local communities and all stakeholder groups to provide knowledge, news and information about the project while help building community capacity with a view to creating public understanding and acceptance.

Demand Side Management (DSM) Program

For nearly two decades, EGAT has constantly implemented a Demand-Side Management (DSM) program since 1993 to promote energy efficiency and conservation. Its continuous DSM efforts and campaigns have successfully contributed to the cumulative savings of over 2,379 MW peak demand and 14,122 million kWh of electricity as well as a reduction of 8.7 million tons of carbon dioxide. Major projects and campaigns implemented during 2011 included the following.

Following its successful Green Learning Room program which has been established in 426 schools across the country, EGAT has taken a further step to upgrade a number of selected Green Learning Rooms into Green Learn- ing Schools to serve as the model schools for energy and environmental conservation with a view to building an energy conservation network and inculcating perpetual attitudes on energy and environmental conservation. In 2011, a total of 24 schools achieved EGAT’s Green Learning School standards. Meanwhile, it has also supported the existing 426 schools in improving their green learning rooms to serve as energy learning centers sharing facilities and activities with other 329 schools in their neighborhood.

In addition, EGAT has continuously promoted the use of high efficiency appliances through its Energy-Efficient Label No. 5 campaigns. After its successful campaigns of promoting the use of energy- efficient compact fluorescent light (CFL) bulbs to phase out inefficient incandescent light bulbs, it has also promoted the use of the high efficiency T5 fluorescent tubes, using key business leaders as presenters in its advertising campaigns. In addition, in December 2011, EGAT and the Ministry of Energy reached an MOU with major electrical appliance manufacturers to add three more appliances including electric show- ers, irons, and spiral CFL bulbs to the energy efficient labeling program. EGAT’s energy-efficient labeling program including the 1-watt standby power label has to date covered totally 15 types of electrical appliances in the market.

Social Responsibility

Community Involvement and Development

Knowledge-Based Community Micro-Hydropower Enterprise

EGAT in collaboration with Thammasat University has implemented a Southern Energy Knowledge Management Project with an aim to provide technical knowledge about energy and encourage community involvement in the consideration and decision-making of community development projects and activities based on their indigenous knowledge and resources. 103

The project has successfully led to the establishment of an Experiential Learning Center on Community-based Micro-hydropower Enterprise at Ban Khlong Rua Village in Phato district in southern Chumphon province. EGAT has worked closely with Ban Khlong Rua community to establish a community-based micro-hydropower enterprise by providing both financial and technical support including a micro- hydro generator and associated equipment and engineering teams. Apart from the off-grid electricity supplies for the small isolated community, the development of the Ban Khlong Rua micro-hydropower project has also raised community awareness of the importance and valuable contribution of forest conservation to public benefits. Ban Khlong Rua has now become a self-reliant learning community that provides other communities with a useful model and inspiration for alternative energy development and community em- powerment by integrating local wisdom with proper technology to enable the community to improve their own livelihoods while preserving natural resources in their vicinity on a sustainable basis.

Community Quality of Life Development

A wide variety of community development projects and activities have been implemented in an earnest effort to improve the quality of life of communities in various aspects, i.e. education, cultural and religious promotion, health care, vocational training, community environmental quality development. In addition, EGAT has rendered support and aid to the local people in time of troubles caused by natural disasters, i.e. the severe flood crises afflicting several parts of the country, etc. It has been committed to standing side by side with the local communities in good and bad time.

Environmental Conservation Promotion

Throughout the year 2011, EGAT had collaborated with local communities and local administration in many social projects to contribute to the conservation of natural resources and environment. Major projects include the following.

1. Headwaters Reforestation Project in Commemoration of HM the King’s 84th Birthday An- niversary

The project is one among myriads of social projects EGAT has implemented as a tribute to our beloved King on the special occasion of His Majesty’s 84th (or 7th Cycle) Birthday Anniversary. The project features the planting of 984,000 tree seedlings in the headwaters forest areas in the vicinity of EGAT’s nine sites of dams and power plant. The official names of these dams and power plant were graciously granted by His Majesty King Bhumibol. At the project launch on June 9, 2011 which also marked His Maj- esty’s Coronation Anniversary, EGAT was granted the royal permission to bring nine seedlings of Yang Na (Dipterocarpus alatus Roxb.ex G. Don) trees from Dusit Palace to be planted at each of EGAT’s dams and power plant, namely Bhumibol, Sirikit, Srinagarind, Ubol Ratana, Vajiralongkorn, Sirindhorn, Chulab- horn, Rajjaprabha dams and Lam Takong Jolabha Vadhana power plant. Apart from EGAT employee volunteers, interested parties from both public and private organizations as well as individual public had voluntarily participated in the tree planting activities at various sites across the country. 104

2. Reforestation Project in Commemoration of HM the Queen’s 78th Birthday Anniversary

Since 2010, the Thai Government in collaboration with all min- istries including the Ministry of Energy has implemented a Reforesta- tion Program in various areas countrywide in commemoration of Her Majesty Queen Sirikit’s 78th Birthday Anniversary which fell on August 12, 2010. To pay tribute to Her Majesty, EGAT has implemented a reforestation project in the vicinity of Sirikit Dam to restore degraded forest areas in the Nan River National Park in northern Uttaradit province. Its project features tree plantation and maintenance covering 780 rai (about 308 acres) of degraded forest areas on the right bank of the Nan River in the Nan River National Park and building 780 check dams in the areas surrounding Sirikit reservoir. The project is aimed at increasing forest areas as well as water sources to conserve natural resources and restore the ecological system.

3. Greening Project for Chana Power Plant Neighborhood

The project is aimed to enhance learning capacity of the local communities in the vicinity of Chana power plant and to raise their awareness and participation in the conservation of forests and environment. Training and practical advice have been provided for 51 local participants on planting fast-growing trees in totally 170 rai (67 acres) of areas to add green space and optimize the use of aban- doned land while creating economic value for the villagers.

4. Forest and Environmental Conservation Project

EGAT has also supported the local administration, state agencies and local communities in mangrove reforestation projects to strengthen community awareness and capacity and promote environmental conservation. These social projects include mangrove reforestation and maintenance in the forest areas of Chumphon National Park in Chumphon province and along Na Tab Canal near Chana power plant in southern Songkhla province, etc.

5. Community Environmental Quality Development

With a view to building community capacity, EGAT has provided knowledge and training on various applications and production of the environmentally-friendly effective microorganisms (EM) for various benefits from biological farming to compost and wastewater treatment, all of which contributing to better quality of life and environment.

EGAT’s CSR efforts not only have created sustainable benefits to the Thai society and local people, but also have extended to global community. In 2011 EGAT had lent, on approval of the Cabinet, its two 122 MW gas turbine generators to Japan to help ease power supply shortage in Japan following the Great East Japan Earthquake and Tsunami in March 2011 and the subsequent serious accidents at the nuclear power reactors in Fukushima. It is a pride and honor to EGAT to represent the Thai Nation, not only in delivering Thai power to Japan, but also sending our best wishes and wholehearted support to the people of Japan in time of need.

Details of EGAT’s environmental and social works in 2011 are published in EGAT’s CSR Report 2011. 105

Events

Her Royal Highness Princess Maha Chakri Sirindhorn presented a Pin of Honor to EGAT Governor Mr. Sutat Patmasiriwat at an Exhibition held on the occasion of the 2011 Thai Heritage Day at Issara Win- itchai Throne Hall, Bangkok National Museum on August 17, 2011. 106

HRH Princess Maha Chakri Sirindhorn graciously presided over the opening ceremony of the World Conference on Paleontology and Stratigraphy 2011 and Fossil Festival at Sima Thani Hotel, Nakhon Ratchasima province on November 28, 2011. The event was held in honor of His Majesty the King’s 84th Birthday Anniversary. In the picture, the Princess presented a plaque of honor to EGAT Assistant Gover- nor - Fuel Management, Mr. Prapas Vichakul for EGAT’s contribution to the Conference.

HRH Princess Maha Chakri Sirindhorn graciously visited Ban Yang Hydropower Plant in Chiang Mai province on January 25, 2011. The Princess was welcomed by EGAT executive officers and staff led by EGAT Assistant Director of Bhumibol Dam Mr. Surasak Attaset who reported the Princess on the construction design and plan of Ban Yang Power Plant Museum. 107

On December 29, 2011, Privy Councilor Air Chief Marshal Kamthon Sindhvananda planted a Yang Na (Dipterocarpus alatus Roxb.ex G. Don) tree at Bhumibol Dam, Tak province to mark the completion of EGAT’s Headwaters Reforestation Project in Commemoration of His Majesty the King’s 84th Birthday An- niversary. At the project launch on June 9, 2011 which also marked His Majesty’s Coronation Anniversary, EGAT was granted the royal permission to bring nine Yang Na seedlings from Dusit Palace to be planted at each of nine selected sites for the project.

EGAT Governor Mr. Sutat Patmasiriwat presented a donation of 6 million baht to the Prime Minister Ms. Yingluck Shinawatra to contribute to the Government’s fund-raising campaign to assist flood victims, at the Government House on September 14, 2011. Also present at the event were the Energy Deputy Per- manent Secretary cum EGAT Board Director Dr. Kurujit Nakornthap (4th from left) and EGAT executives. 108

On March 29, 2011, EGAT by Governor Mr. Sutat Patmasiriwat offered “Power for Japan” in the aftermath of the earthquake and tsunami disaster in Japan by presenting two sets of power generators totaling 244 MW from its Nong Chok Power Plant to Japan represented by the Japanese Ambassador Mr. Seiji Kojima (2nd from right) at Kasame Chatikavanich Convention Hall, EGAT Headquarters. The ceremony was witnessed by the then Minister of Energy Dr. Wannarat Channukul (middle), Deputy Perma- nent Secretary of the Energy Ministry Dr. Kurujit Nakornthap (1st from left), and executives from Mitsubishi Corporation.

The then Minister of Energy Mr. Pichai Naripthapan opened the 9th Mae Moh Festival 2011 at the Botanical Garden in the compound of Mae Moh Mine, Lampang province on December 17, 2011. The two- day event was held by EGAT to help promote tourism of this Northern province. 109

The Minister of Finance Mr. Thirachai Phuvanatnaranubala presented the State-Owned Enterprise (SOE) Awards 2011 to EGAT Governor Mr. Sutat Patmasiriwat at IMPACT Muang Thong Thani on August 31, 2011. In 2011 EGAT was awarded two SOE Awards including the Best Organizational Management Award which EGAT has won for the fifth consecutive year and the Best Innovation Award for EGAT’s own patented Solar Weighted Tracking System of its photovoltaics power plant at Sirindhorn Dam.

Thailand Greenhouse Gas Management Organization (TGO) by its Executive Director Mr. Sirithan Pairoj-boriboon (left) presented EGAT Governor Mr. Sutat Patmasiriwat with the Letter of Approval and the Crown Standard Certificate for EGAT’s CDM project, namely Kaeng Krachan irrigation valve-based micro hydropower project, at EGAT Headquarters on July 20, 2011. 110

EGAT awarded an agreement to a Consortium of Siemens AG, Siemens Limited Thailand and Marubeni Corporation for the procurement and construction of Chana Combined Cycle Power Plant Block 2 and Wang Noi Combined Cycle Power Plant Block 4. The agreement signing ceremony held on August 17, 2011 at Plaza Athenee Royal Meridien Hotel, Bangkok, was witnessed by the Energy Permanent Sec- retary Dr. Norkun Sitthiphong (middle), German Ambassador to Thailand Dr. Heinrich Schumacher (2nd from right) and Japanese Ambassador Mr. Seiji Kojima (1st from right).

The Energy Permanent Secretary Dr. Norkun Sitthiphong (left sided picture - middle) presided over the launch of EGAT’s “New Rule of Investment” advertising campaign to promote the use of the energy- efficient fluorescent tube at Sofitel Centara Grand Hotel, Bangkok on May 9, 2011. The new TV advertising features top executives of leading organizations as its presenters, including President of Bang Chak Petroleum Public Company Limited Dr. Anusorn Sangnimnuan (right sided picture - 2nd from left), CEO and President of KASIKORNBANK Public Company Limited Mr. Banthoon Lamsam (right sided picture - 2nd from right) and EGAT Governor Mr. Sutat Patmasiriwat. 111

EGAT Governor Mr. Sutat Patmasiriwat and Director and Senior Executive Vice President of Mitsubishi Heavy Industries (MHI) Mr. Ichiro Fukue (1st from right) co-hosted an Open House ceremony of EGAT Diamond Service Company (EDS) at EDS Maintenance Plant and Head Office in Nava Nakorn Industrial Estate on May 26, 2011. EDS was jointly established by EGAT, MHI and Mitsubishi Corporation (MC) in 2009 to provide repair services for gas turbine components for industrial customers throughout the Asian region. The event was attended by many local parties concerned as well as Mr. Sombat Sarntijaree (2nd from right), former EGAT Governor.

EGAT opened its exhibition booth in the 2011 Red Cross Fair during March 30 - April 7, 2011 to raise fund for the Thai Red Cross Society and to commemorate the Thai nation’s auspicious occasion of our beloved King’s 84th Birthday Anniversary. 112

EGAT has rendered assistance to communities and various sectors affected by devastating floods which have caused havocs in several provinces of the country. Emergency relief, i.e. fresh food, drinking water, medicine, relief kits, boats, EM for water treatment, and etc. were distributed to various communities during floods. It also provided emergency relief, transportation service and shelter for flood victims in EGAT’s neighborhood. After floods, EGAT also joined hands with communities in cleaning and rebuilding public places such as schools, temples and community halls. EGAT also supported flood-hit industrial estates including Rojana and Saha Rattana Nakorn Industrial Estates in Ayutthaya province in rapidly restoring power supply for the industrial estates to help them resume their operation.

EGAT Mae Moh Mine received the Green Mining Award and the Corporate Social Responsibility for Mining Industry Award from the Ministry of Industry on August 5, 2011. Picture shows the Deputy Per- manent Secretary of the Minister of Industry Mr. Yongyuth Thongsuk (right) presenting the award to EGAT Assistant Governor - Mae Moh Mine Mr. Prapas Vichakul (left). 113

Key Statistical Data

System Installed Generating Capacity

Type of Power Plant 2011 2010 Increase / (Decrease) MW Percentage MW Percentage Percentage EGAT’s Power Plants

Thermal 4,699.00 14.94 4,699.00 15.20 -

Combined Cycle 6,866.00 21.83 6,866.00 22.21 -

Hydropower 3,424.18 10.89 3,424.18 11.07 -

Diesel Oil 4.40 0.01 4.40 0.01 -

Renewable energy 4.55 0.02 4.55 0.01 -

Subtotal 14,998.13 47.69 14,998.13 48.50 - Purchase from

Domestic Private Power Plants

IPPs 12,081.69 38.42 12,151.59 39.30 (0.58)

SPPs 2,182.30 6.94 2,182.30 7.06 -

Neighboring Countries

Laos 1,884.60 5.99 1,288.00 4.17 46.32

EGAT-TNB Interconnection System 300.00 0.96 300.00 0.97 -

Subtotal 16,448.59 52.31 15,921.89 51.50 3.31

Grand Total 31,446.72 100.00 30,920.02 100.00 1.70 114

Monthly Peak Generation Requirement

Month Monthly Peak Generation Requirement (MW) Increase / (Decrease) 2011 2010 MW Percentage

January 21,288.30 20,969.50 318.80 1.52

February 22,206.90 21,872.29 334.61 1.53

March 23,156.33 23,304.05 (147.72) (0.63)

April 23,322.12 23,897.72 (575.60) (2.41)

May * 23,900.21 24,009.90 (109.69) (0.46)

June 23,029.24 23,237.30 (208.06) (0.90)

July 23,351.35 22,865.50 485.85 2.12

August 23,442.50 21,893.42 1,549.08 7.08

September 22,808.58 22,214.97 593.61 2.67

October 22,062.10 21,774.48 287.62 1.32

November 20,954.60 22,294.75 (1,340.15) (6.01)

December 21,104.90 22,302.20 (1,197.30) (5.37)

Yearly Peak Generation Requirement 23,900.21 24,009.90 (109.69) (0.46)

* 2011 peak generation requirement occurred on May 24, 2011 at 14.00 hours. 2010 peak generation requirement occurred on May 10, 2010 at 14.00 hours.

Monthly Energy Generation Requirement

Month Monthly Energy Generation Requirement (Million kWh) Increase / (Decrease) 2011 2010 Million kWh Percentage

January 12,310.03 12,290.20 19.83 0.16

February 12,286.64 12,351.39 (64.75) (0.52)

March 13,574.12 14,181.52 (607.40) (4.28)

April 13,060.57 13,606.65 (546.08) (4.01)

May 14,337.77 14,546.94 (209.17) (1.44)

June 13,936.46 13,933.53 2.93 0.02

July 14,110.89 13,916.72 194.17 1.40

August 14,169.29 13,441.03 728.26 5.42

September 13,807.13 13,370.17 436.96 3.27

October 13,125.08 13,348.35 (223.27) (1.67)

November 12,188.67 12,629.34 (440.67) (3.49)

December 12,056.65 12,573.69 (517.04) (4.11)

Total 158,963.30 160,189.53 (1,226.23) (0.77) 115

Gross Energy Generation and Purchase (by type of fuel)

Source 2011 2010 Increase / (Decrease) Million kWh Percentage Million kWh Percentage Percentage EGAT’s Power Plants

Natural gas 44,539.52 28.02 49,301.74 30.78 (9.66)

Lignite 16,801.71 10.57 16,055.20 10.02 4.65

Hydropower 7,912.97 4.98 5,325.20 3.33 48.59

Fuel oil 1,176.75 0.74 514.93 0.32 128.53

Diesel oil 28.47 0.02 34.72 0.02 (18.00)

Renewable energy 7.84 - 7.10 - 10.42

EGAT’s Total Generation 70,467.26 44.33 71,238.89 44.47 (1.08) Purchase from

Domestic Private Power Plants

• IPPs

Natural gas 51,440.84 32.36 57,338.72 35.79 (10.29)

Coal 10,804.52 6.80 10,035.79 6.27 7.66

Fuel Oil 479.88 0.30 401.47 0.25 19.53

Subtotal 62,725.24 39.46 67,775.98 42.31 (7.45)

• SPPs

Natural gas 10,575.23 6.65 9,894.23 6.18 6.88

Coal 2,040.76 1.28 1,740.64 1.09 17.24

Hydropower 31.84 0.02 23.64 0.01 34.69

Fuel Oil 20.69 0.01 22.53 0.01 (8.17)

Biomass 2,282.87 1.44 2,216.23 1.38 3.01

Subtotal 14,951.39 9.40 13,897.27 8.68 7.59

Neighboring Countries

• Laos 10,704.05 6.74 7,007.69 4.37 52.75

• Malaysia 115.36 0.07 269.70 0.17 (57.23)

Subtotal 10,819.41 6.81 7,277.39 4.54 48.67

Total Energy Purchase 88,496.04 55.67 88,950.64 55.53 (0.51)

Grand Total 158,963.30 100.00 160,189.53 100.00 (0.77) 116

Energy Sales

Customer 2011 2010 Increase / (Decrease) Million kWh Percentage Million kWh Percentage Percentage

Metropolitan Electricity Authority (MEA) 45,734.94 29.54 46,635.38 29.87 (1.93)

Provincial Electricity Authority (PEA) 106,034.06 68.49 106,413.58 68.15 (0.36)

Direct customers 1,580.60 1.02 1,595.07 1.02 (0.91)

Standby power supply 128.04 0.08 170.60 0.11 (24.95)

Electricité du Laos (EDL) 696.56 0.45 1,042.18 0.67 (33.16)

Tenaga Nasional Berhad (TNB) - Malaysia 322.91 0.21 0.83 - -

Electricité du Cambodge (EDC) 315.75 0.21 272.13 0.18 16.03

Other minor customers 4.72 - 6.11 - (22.75)

Total 154,817.58 100.00 156,135.88 100.00 (0.84)

Average Energy Sales Price

Customer 2011 2010 Increase / (Decrease) Baht/kWh Baht/kWh Percentage

Metropolitan Electricity Authority (MEA) 2.55 2.55 -

Provincial Electricity Authority (PEA) 2.56 2.59 (1.16)

Direct customers 2.71 2.69 0.74

Standby power supply 5.28 4.16 26.92

Other minor customers 1.91 1.95 (2.05)

Overall Average Sales Price 2.57 2.57 -

Transmission System

2011 2010 Voltage Level Line Length Number of Transformer Capacity Line Length Number of Transformer Capacity (kV) (Circuit-Kilometers) Substations (MVA) (Circuit-Kilometers) Substations (MVA)

500 3,469.54 11 20,849.99 3,721.95 10 15,849.99

230 13,950.12 69 47,460.04 13,541.46 68 44,560.04

132 8.70 - 133.40 8.70 - 133.40

115 13,047.67 130 14,598.74 13,325.84 130 14,573.74

69 18.80 - - 18.80 - -

300 (HVDC) 22.99 - 388.02 22.99 - 388.02

Total 30,517.82 210 83,430.19 30,639.74 208 75,505.19 117

Fuel Consumption

Type of Fuel 2011 2010 Increase / (Decrease) Percentage

Natural gas (million cubic feet) * 380,780.06 428,018.16 (11.04)

Fuel oil (million liters) * 314.35 140.08 124.41

Lignite (million tons) 17.16 16.40 4.63

Diesel oil (million liters) * 11.08 12.43 (10.86)

* Excluding gas and oil supplies provided for Rayong, Khanom, and Ratchaburi Power Plants

Reservoir Operation

Operation 2011 2010 Increase / (Decrease) Percentage

Total reservoir capacity (million cubic meters) a/ 62,290 62,290 -

Total storage at year end (million cubic meters) a/ 54,406 44,002 23.64

Total water inflow (million cubic meters) a/ 58,646 32,963 77.92

Total water release (million cubic meters) a/

- Passed through generators 42,801 30,958 38.26

- Extra release through spillways 2,297 2,137 7.49

- Extra release for irrigation b/ 523 689 (24.16)

- Evaporation 2,851 2,996 (4.84)

Total water release 48,470 36,780 31.79

Water pumped up into the upper reservoir (million m3) b/ 413 603 (31.57)

Generated energy (million kWh) c/ 7,913 5,325 48.61

Water used for energy generation (cubic meters/kWh) 5.62 6.11 (8.02)

a/ Excluding Pak Mun Dam, Lamtakhong Dam and other mini hydropower plants b/ Water pumped up into Bhumibol Dam, Srinagarind Dam and Lamtakong Dam c/ All of EGAT’s hydropower plants

Workforce

Educational Level at December 2011 at December 2010 Increase / (Decrease) Number of Persons Percentage Number of Persons Percentage Percentage

Bachelor’s Degree and higher 7,286 31.70 7,177 31.77 1.52

Higher Vocational Certificate 7,677 33.41 7,051 31.21 8.88

Vocational Certificate 3,476 15.13 3,694 16.35 (5.90)

Others 4,542 19.76 4,669 20.67 (2.72)

Total 22,981 100.00 22,591 100.00 1.73 118

AUDITOR’S REPORT

(TRANSLATION)

TO: THE BOARD OF DIRECTORS OF THE ELECTRICITY GENERATING AUTHORITY OF THAILAND

The Office of the Auditor General of Thailand has audited the consolidated and separate statements of financial position as at December 31, 2011 and 2010 (restated), and the related consolidated and separate statements of income, comprehensive income, changes in equity, and cash flows for the years then ended of Electricity Generating Authority of Thailand and subsidiaries and of Electricity Generating Authority of Thailand, respectively. These financial statements are the responsibility of Electricity Generat- ing Authority of Thailand’s management as to their correctness and completeness of the presentation. The responsibility of the Office of the Auditor General of Thailand is to express an opinion on these financial statements based on the audits. The Office of the Auditor General of Thailand did not audit the financial statements of Ratchaburi Electricity Generating Holding Public Company Limited and EGAT Diamond Service Company Limited, which are the subsidiaries and included in the consolidated financial statements which represented total assets, liabilities, revenues and expenses for the year 2011 constitute 19.41%, 24.48%, 10.75% and 10.55% respectively and for the year 2010 (restated) constitute 14.93%, 12.39%, 10.72% and 10.48% respectively. The financial statements of those subsidiaries were audited by other auditors whose reports have been furnished to the Office of the Auditor General of Thailand, and the opinion of the Office of the Auditor General of Thailand expressed herein insofar as it relates to the amounts included in the consolidated and separate financial statements, is based solely on the report of the other auditors. 119

The Office of the Auditor General of Thailand conducted the audits in accordance with generally accepted auditing standards. Those standards require that the Office of the Auditor General of Thailand plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. The Office of the Auditor General of Thailand believes that the audits and the reports of the other auditors, referred to above, provide a reasonable basis for the opinion of the Office of the Auditor General of Thailand.

In the opinion of the Office of the Auditor General of Thailand, based on the audits and other auditors’ reports, the consolidated and separate financial statements referred to above present fairly, in all material respects, the financial position of Electricity Generating Authority of Thailand and subsidiaries and of Electricity Generating Authority of Thailand respectively, as at December 31, 2011 and 2010 (restated), and the results of operations and cash flows for the years then ended in accordance with generally accepted accounting principles.

(Signed) Pisit Leelavachiropas

(Pisit Leelavachiropas)

Deputy Auditor General

Acting Auditor General

(Signed) Doungporn Muennuch

(Doungporn Muennuch )

Director of Audit Office

Office of the Auditor General

March 23, 2012 120

FINANCIAL STATEMENTS

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                                                                                                                                                                    

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                                                                                                                                                                                              

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                                                                                                                                                  

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      123

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                                                                         



      124                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 125                                                                                                                                                                                                                                                                                                                                                                                                   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                                                                                                                                                                                                                                               

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      

                                                                                              129

                                                      130

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                                 

                     

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 

                                                                

                     

                          

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                                                              133

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                                            

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                                                  

                                135

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                                              

      

                                136

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                                             

                                                    137

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                  

                                                                                                                                                

                    138

 

          

                         

               

          139

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                                                                  140

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                       

                                                       141

 

  

     

                                             142  

   

           

                  143

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       

                                           

          144

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                    

   

     

                                       145

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                                   

                              

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 

                                  

                            147  

                                    

                           

                 148  

                 

                                                                                 

                  

 149  

                    

                                           150

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                                             

 

                                           

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                                                                 

                                                                  

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152                                                                                                                                               153                                                                                                                                               154

 

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    

                                                                                      155  

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                                                                                                                      156  

                                                                                                                                                                    



                        157  

                            

                  

                                                                                              158

 

                 

                                                                                                                                                159  

                                                                                                                                                              160  

                                                                        

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                                           

                                 

                              

                             162                                           

                                                                                                                                                                  163

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                                                                                                                                                                                                                          

                                                                              164  

    

                                           

  

            165                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          166                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           167  

                    

                                                                                                     

168                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       169  

                                                                      

    

   

   



 170  

                    

        

                                               

171                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    172  

                                    

                    

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                   

                          174                                                                                                                                                                                                                                                                                                                                                                                                         175                                                                                        

                                                                             176

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                                          

                                                                 

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                                                                                                                                         178  

                                                                                              179

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                      

             

                                                                       

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                                                                                                                          

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 

               

                                      

                                                                                       182

 

                                          

                                    

 

                                  183

 

                                  

   

                                                                

                         

                                             184                    

                        

   

                        

                       

            

              185          

            

                                                                                   

                                                                



                                                     186                              

                                         

                                                   187

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 

                                

 

                        189

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                                                190

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                        

                 

191 

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              

                                                                                                                                                                                                                           192  

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

  

    

       

               

               

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                   

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 

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               

   

  

194  

                                          

                

                  195  

         



                       

                

                                        

                   196

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                                                        

      197  

                                                 

                                          198

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                                          199

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                                            200

Audit Fee

EGAT’s financial statements are audited by the Office of the Auditior General of Thailand. For Fiscal year 2011, audit fees and expenses total Baht 2,300,000 comprising Baht 1,200,000 fee for the annual audit, Baht 900,000 fees for the reviews of quarterly financial statements totaling three quarters or Baht 300,000 for each quarter and Baht 200,000 fees for the audits of account unbundling.