Thai Corporate Day Thai Corporate Day July July 29 29-30 30, , - - PowerPoint PPT Presentation

SLIDE 1

Thai Corporate Day Thai Corporate Day July July 29 29-30 30, , 2003 2003

SLIDE 2

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SLIDE 3

Agenda Agenda

• RATCH Overview

RATCH Overview

Agenda Agenda

• RATCH Overview

RATCH Overview

• Power Industry

Power Industry

• Power Industry

Power Industry

• Benefits of Interest Reduction

Benefits of Interest Reduction

• Operating Performance

Operating Performance

• Future Projects

Future Projects

• Future Projects

Future Projects

• Investment Consideration

Investment Consideration

• Investment Consideration

Investment Consideration

• Awards in

Awards in 2002 2002 & & 2003 2003 Awards in Awards in 2002 2002 & & 2003 2003

• Appendix

Appendix

SLIDE 4

RATCH Overview RATCH Overview RATCH Overview RATCH Overview

SLIDE 5

The Company The Company

Ownership Structure Ownership Structure

5

Ownership Structure Ownership Structure

• RATCH has been set up as a holding

company with the primary objective of

EGAT 45% Public 33.89%

company with the primary objective of seeking investments in attractive power generating assets in order to enhance shareholders’ value.

EGAT EGAT Provident Fund Government Savings Bank 45% Public 33.89% Banpu Group

shareholders’ value.

• Ratchaburi Electricity Generating

Company Limited (“RATCHGEN”) is a

14.99% Fund Savings Bank 3.50% 2.62%

Company Limited (“RATCHGEN”) is a project company which acquired Ratchaburi power plant from EGAT.

• RATCHGEN’s main objective is to

RATCH

• RATCHGEN’s main objective is to
• perate 3,645MW power plant to

maximize its full potential.

100%

RE

100%

RATCHGEN

• EGAT hold a significant stake in

RATCH.

• Ratchaburi Energy (“RE”) engage in
• Ratchaburi Energy (“RE”) engage in

small hydro power generating business with mandate capacity of around 30MW

• f which its potential for project
• f which its potential for project

expansion is very promising

SLIDE 6

The Company The Company

Top Ten Largest Shareholders Top Ten Largest Shareholders

6

Top Ten Largest Shareholders Top Ten Largest Shareholders

The Company’s top ten largest shareholders as of March 21,2003. The Company’s top ten largest shareholders as of March 21,2003.

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Related Information

• Foreign Shareholders

14.43 %

• Banpu Power International

7.35% Source: Thailand Securities Deposition Company Limited

SLIDE 7

RATCHGEN PROJECT RATCHGEN PROJECT

7

RATCHGEN PROJECT RATCHGEN PROJECT

Generating Capacity Comparison of RATCHGEN and Country’s Generating Capacity Comparison of RATCHGEN and Country’s Generating Capacity Comparison of RATCHGEN and Country’s Generating Capacity Comparison of RATCHGEN and Country’s

Capacity (MW)

• 12.38%

14.61 %

• 7.17 %

12.38%

Electricity Generating Electricity Generating Capacity Capacity 3,645 645 MW. MW.

Oct-00 Apr-02 Nov-02

• Transferring of TH & CC Power Plants

Transferring of TH & CC Power Plants

Electricity Generating Electricity Generating Capacity Capacity 3,645 645 MW. MW.

• Thermal Unit 1

735 MW.

• Thermal Unit 2

735 MW.

Transferring of TH & CC Power Plants Transferring of TH & CC Power Plants

Source: EGAT PDP 2001

• Thermal Unit 2

735 MW.

• CCGT Block 1

725 MW.

• CCGT Block 2

725 MW.

• CCGT Block 3

725 MW.

• CCGT Block 3

725 MW.

SLIDE 8

RATCH Overview: RATCH Overview:

Power Purchase Agreement Power Purchase Agreement

8

Power Purchase Agreement Power Purchase Agreement

• Thermal Units and Combined Cycle

Units have separate year PPAs.

PPA Tariff Structure

Units have separate year PPAs.

• Tariff is designed to cover all operating

and financing costs and yield an equity

Fixed O&M Costs FX/ Inflation Adjustments

and financing costs and yield an equity IRR of "4

• Revenues are from Availability

Payments (“AP”) and Energy Payments

Availability Payment Availability Factor Debt Services Adjustments Interest Indexation Return on Equity

Payments (“AP”) and Energy Payments (“EP”).

• AP (Baht/MW/month) - includes fixed

Availability Factor Return on Equity

RATCHGEN EGAT

• AP (Baht/MW/month) - includes fixed
• peration and maintenance expenses,

debt servicing, and return on equity.

• AP ispayable irrespective of whether

Variable O&M Cost Fuel Cost Inflation Adjustments Efficiency Factor Energy Payment

• AP ispayable irrespective of whether

electricity is dispatched or not as long as plants are available

Source : RATCHGEN

Fuel Cost Efficiency Factor

• EP (Baht/MWh) - includes fuel costs

and variable operation and maintenance costs with inflation indexation and pass through mechanism.

Source : RATCHGEN

through mechanism.

SLIDE 9

RATCH Overview: RATCH Overview:

Debt Structure Debt Structure Debt Structure Debt Structure

• Largest ever Baht project financing

transaction in Thailand and one of the transaction in Thailand and one of the largest in Asia.

• Debt structure divided into:

Tranche A

Lead Arrangers

Tranche A Term loan of Baht ,million Tranche B Working capital facility of Baht ,

Tranche A Baht 42,500 MM. Tranche A1 - Baht 18,475 MM

Working capital facility of Baht , million.Currently the facility has been terminated.

• The tenor of Tranche A and Tranche B is

Tranche A2 – Baht 18,716 MMl Tranche A3 –Baht 5,309 MM

• The tenor of Tranche A and Tranche B is

approximately 3 years.

• The interest rate of Tranche A is the

Minimum Lending Rate (“MLR”) and for

Tranche B Baht 1,500 MM

Minimum Lending Rate (“MLR”) and for Tranche B is the Minimum Overdraft Rate (“MOR”).

• Foreign currency risk mitigated as all

21 August 9 Oct 2000 Loan 31 Oct 2000 1st 18 April 2002 2nd 1 Nov 2002 3rd

• Foreign currency risk mitigated as all

debt financing has been arranged in Baht.

• Interest rate risk mitigated as it is passed

through the tariff.

Source : RATCHGEN

21 August 2000 Term sheet signed Loan docu ment s sign ed 1st debt draw dow n 2nd debt draw dow n 3rd debt draw dow n

Source : RATCHGEN

ed

SLIDE 10

RATCH Overview: RATCH Overview:

Operation and Maintenance Operation and Maintenance

10

Operation and Maintenance Operation and Maintenance

• EGAT will operate and maintain

RATCHGEN under the Operation and Maintenance (OMA).

Maintenance Schedule

• The OMA will expire in year 2009,
• ne year from the completion of the

first major maintenance of the last Combined Cycle Block transferred.

Thermal Generating Units

• No. of days

Once every Warranty Inspection - normal 40

• Minor Inspection

40 2 years Major Overhaul 57 6 years

Combined Cycle Block transferred.

• Extended by mutual agreement

between RATCHGEN and EGAT.

Combined Cycle Generating Units

• No. of days

Once every Gas Turbines GT Warranty Inspection - normal 26

• GT Combustion Inspection

15 8,000 hours

between RATCHGEN and EGAT.

• Scope of work covers routine
• peration and maintenance, provision

GT Combustion Inspection 15 8,000 hours GT Minor Inspection 30 24,000 hours GT Major Overhaul 52 48,000 hours Steam Turbines ST Warranty Inspection - normal 26

• peration and maintenance, provision
• f major maintenance services and

additional repair services.

Source : RATCHGEN

ST Warranty Inspection - normal 26

• ST Minor Inspection

26 2 years ST Major Overhaul 49 6 years

• EGAT personnel experienced in

commissioning and operating Combined Cycle and Thermal Power Plants.

Source : RATCHGEN

Plants.

SLIDE 11

RATCH Overview: RATCH Overview:

Operation and Maintenance Schedule for Operation and Maintenance Schedule for 2003 2003

11

• Operation and Maintenance Schedule for

Operation and Maintenance Schedule for 2003 2003

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SLIDE 12

The Power Plant : The Power Plant :

Facilities Description Facilities Description

12

Facilities Description Facilities Description

• Located on 0**.*acres of land in
• Located on 0**.*acres of land in

Ratchaburi Province, 0KM from Bangkok, *KM from Ampur Muang * Ratchaburi, and KM from Mae Klong river.

• RATCHGEN’s total generating capacity

is #,)MW. With combined capacity of 1,470 MWfor two thermal units and 1,470 MWfor two thermal units and three Combined Cycle Units of 2,175 MW, RATCHGEN is Thailand's largest and most advance private power producer in Thailand

• The existing facility can support future
• The existing facility can support future

expansion of upto MW.

SLIDE 13

RATCH Overview: RATCH Overview:

Transmission System Transmission System

13

Transmission System Transmission System

EXISTING UNDER FUTURE CONSTRUCTION PROJECT 500 KV TRANSMISSION LINE 500 KV TRANSMISSION LINE 230 KV TRANSMISSION LINE 115 KV TRANSMISSION LINE 500 KV SUBSTATION 230 KV SUBSTATION 115 KV SUBSTATION

SLIDE 14

Power Plant & Facilities Power Plant & Facilities

Thermal Power Plant Thermal Power Plant

14

Thermal Power Plant Thermal Power Plant

Generator Transmission Line Generator Steam Turbine Transformer Stack Heat Exchanger Stack Fan Condenser Flue Gas

FGD

Fan Cooling Tower Dearator Flue Gas Desulferization Fan Boiler Economizer

Reservoir

Water Treatment Plant

SLIDE 15

Power Plant & Facilities Power Plant & Facilities

Combined Cycle Power Plant Combined Cycle Power Plant

15

Combined Cycle Power Plant Combined Cycle Power Plant

Heat Recovery Steam Transmission Line Steam Generator Heat Recovery Steam Generator (HRSG) Dearator Natural Gas Inlet Value Generator Gas Turbine Dearator Condenser Transmission Line Transformer Generator Transformer Stack Natural Gas Inlet Value Cooling Tower Gas Turbine Stack Water Pump Water Treatment Plant Transmission Line Transformer Generator

Reservoir

Plant Transformer

Reservoir

Heat Recovery Steam Generator (HRSG)

SLIDE 16

RATCH Overview: RATCH Overview:

Gas Sales Agreement (“GSA”) Gas Sales Agreement (“GSA”)

16

Gas Sales Agreement (“GSA”) Gas Sales Agreement (“GSA”)

• Natural gas supplied by PTT will be

sourced from gas fields in Myanmar.

Gas Pipeline System

sourced from gas fields in Myanmar.

• Aggregate proven reserves of *trillion

cubic feet exceeds gas consumption over

• YADANA
• THAILAND

TALUANG KANGKOI NAMPONG BAAN-E-TONG

cubic feet exceeds gas consumption over PPA term.

• Terms of the GSA will be requirement-

YADANA

• YETAGUN

BANGPAKONG TALUANG KANGKOI WANGNOI RAYONG SBK RATCHABURI RATCHABURI

'( )*'

• Terms of the GSA will be requirement-

based with PTT subject to reasonable endeavors obligation.

• YETAGUN

TANTAWAN 1st 2nd THAP SAKAE RAYONG 3rd

• EGAT will be responsible for minimum

take-or-pay obligation with PTT under Ratchaburi Master Gas Sales Agreement (“RMGSA”).

PLATONG BENJAMAS TANTAWAN BONGKOT ARTHIT ECP ERP2 KHANOM ERP PAILIN

(“RMGSA”).

• EGAT is obligated to make Availability

Payments to RATCHGEN regardless of

EXISTING PIPELINE PIPELINE MASTER PLAN 3 JDA BONGKOT SONGKHLA

Payments to RATCHGEN regardless of availability of fuel

NATURAL GAS FIELDS POWER PLANT TTM PIPELINE

SLIDE 17

Power Industry Power Industry Power Industry Power Industry

SLIDE 18

Power Industry: Power Industry:

Forecast of Peak Generating in Thailand Forecast of Peak Generating in Thailand

18

Forecast of Peak Generating in Thailand Forecast of Peak Generating in Thailand

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Source: Thailand Load Forecasting Sub-committee, Energy Planning and Policy Office (EPPO)

SLIDE 19

Power Development Plan (PDP Power Development Plan (PDP 2003 2003)

19

Power Development Plan (PDP Power Development Plan (PDP 2003 2003)

Source: EGAT

SLIDE 20

Current Power Industry: Current Power Industry:

Monthly Peak Generation Monthly Peak Generation

20

Monthly Peak Generation Monthly Peak Generation

Peak Generation

18,500

MW

18,500

11.2%

• Record of peak generation has

16,500 17,000 17,500 18,000 16,500 17,000 17,500 18,000

9.8% 3.4% 7.3% 7.7% 6.5% 5.4% 10.1% 7.6% 8.3% 9.5% 4.4% 6.8% 11.2% 7.5%

• Record of peak generation has

been broken since Feb 2003

• Peak generation, so far, was

14,500 15,000 15,500 16,000 14,500 15,000 15,500 16,000

5.1% 3.3% 4.1% 2.4% 4.5% 6.5% 5.4% 3.7% 7.6% 8.3% 8.4% 3.5% 2.3% 8.1% 3.4% 5.1% 6.4% 4.7% 6.5%

• Peak generation, so far, was
• n May 7th with 18,121MW.,

8.63% increase from 2002

13,000 13,500 14,000 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep

Month

13,000 13,500 14,000

3.3% 5.5% 12.9% 4.4% 3.5%

highest demand

Source :EGAT Source :EGAT

Month

2003 2002 2001

As of May 7, 2003 (2:00 p.m) As of May 7, 2003 (2:00 p.m)

Part of Thailand (MW.) Degree Celsius Bangkok Metropolitan Central 7,632.6 5,936.1 38.6 40.5 Central North East South 5,936.1 1,576.7 1,232.6 40.5 41.8 36.8 North 1,743.4 42.6 Total Maximum Generation 18,121.4

SLIDE 21

Current Power Industry: Current Power Industry:

Monthly Energy Generation Monthly Energy Generation

21

Monthly Energy Generation Monthly Energy Generation

Energy Generation

GWh

Energy Generation

10,500 11,000 GWh 5.4% 6.2% 9.2% 6.0% 9,000 9,500 10,000 4.1% 8.5% 4.5% 6.2% 6.6% 8.2% 6.0% 5.7% 8.2% 13.7% 13.0% 8.6% 7.7% 5.4% 6.2% 6.0% 8,000 8,500 9,000 7.1% 1.8% 15.1% 5.4% 7.0% 3.7% 12.1% 3.9% 5.6% 6.7% 7.8% 6.1% 4.1% 3.2% 1.5% 1.7% 3.5% 7.7% 7,500 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Month

2001 2002 2003

1.8% 15.1% 7.0%

Source :EGAT Source :EGAT

• Average monthly energy generation growth in 2002 year* was 4.59 %
• Average monthly energy generation growth in 2002 year* was 4.59 %
• At present, average monthly energy generation growth in 2003 is 8.64% (Oct 2002 – June 2003)

* Thailand Government Fiscal year beginning from October to September

SLIDE 22

Current Power Industry: Current Power Industry:

Energy Consumption Energy Consumption

22

Energy Consumption Energy Consumption

Energy Consumption for Energy Consumption for 2002 2002 compare with compare with 2003 2003

• The Large, Medium and Small

General Service comprising over 70%

'1! 5 5,4- 5 5,4- ,4- 6! */ "0 */"0

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Energy Consumption for Energy Consumption for 2002 2002 compare with compare with 2003 2003

General Service comprising over 70%

• f total electricity consumption.
• The average growth for all customer

6! */ "0 */"0

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• The average growth for all customer

category in 2003 is 5.51% and residential is the most potential in demand growth.

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demand growth.

• The Large Medium and Small General

service growth are 5.8% , 4.48% and

'%! /" #" /*"# #0 '!!!'%! /) # /)*) " )* % 1!!

5.57% respectively, indicate the growth for Thailand's industrial sector in year 2003

% 1!! 3.789 /) # /0# #* #" ' )

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• in year 2003
• #/#*
• #*/#"
• Source: PEA 2002

SLIDE 23

Current Power Industry: Current Power Industry:

Tariff Structure Tariff Structure

23

Tariff Structure Tariff Structure

• The existing average retail tariff is about

4.05% higher than the marginal cost based

• 4.05% higher than the marginal cost based

retail tariff.

• There is significant subsidization for the
• 6!

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• There is significant subsidization for the

agricultural pumping customers.

• The overall residential tariff reflects the

marginal costs; however, the application of 6! # # ' '%! * ** 70# 2 '%! " # 7) marginal costs; however, the application of the progressive block rates has resulted in cross-subsidization within the category

• itself. Large residential customers have to

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• itself. Large residential customers have to

subsidize small residential customers.

• Moreover, customers under the small

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• Moreover, customers under the small

/medium general services and specific business services will pay for electricity in excess of the marginal costs. ' 0#

• 7

excess of the marginal costs.

Source: EPPO, February 2001

SLIDE 24

Current Power Industry: Current Power Industry:

Comparison of neighboring tariffs Comparison of neighboring tariffs

24

Comparison of neighboring tariffs Comparison of neighboring tariffs +01*23,0!1 ,044543,% 63, "+13,0+5 +01*23,0!1 ,044543,% 63, "+13,0+5

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• Thai tariffs are the lowest among the neighboring countries in almost all categories. Exceptional

Source : EGAT Source : EGAT

• Thai tariffs are the lowest among the neighboring countries in almost all categories. Exceptional

is in industrial classification.

• Average tariff is 2.45 Baht per unit for combined categories

Note: 1)2001 figure (Oct 2000 – Sept 2001) 1)2001 figure (Oct 2000 – Sept 2001) 2) Tariffs excluded VAT 3) Average Baht 44.33/ US$

SLIDE 25

Benefits of Interest Benefits of Interest Benefits of Interest Benefits of Interest Reduction Reduction Reduction Reduction

SLIDE 26

Benefit of Interest Reduction: Benefit of Interest Reduction:

Interest Saving Interest Saving

26

Interest Saving Interest Saving

The 1st amendment on loan agreements (June 2002)

Interest Saving

Interest rate reduction are as follows: -

• 1. MLR* - 1.50% for period of the first three

years (from July 1, 2002 to June 30, 2005.)

1,000 1,200 Million Baht

801 942

• 2. MLR - 1.125% for period of the next three

years (from July 1, 2005 to June 30, 2008.)

• 3. MLR flat for the remaining period (starting
• 600

800

801 631

• 3. MLR flat for the remaining period (starting

from July 1, 2008.) The total saving is around Baht 2,734 million

$

• $

$

• #
• 200

400

In conjunction, the prepayment fee will be 3%,2%and 1% pertinent to such periods

$ #

• 2002

2003 2004 2005 2006 2007 2008 Year

The First Interest Saving The Second Interest Saving

* Average MLR of KTB, SCB, BBL and BAY

The 2nd amendment on loan agreements (July 2003)

* Average MLR of KTB, SCB, BBL and BAY

In addition, the 2nd interest rate reduction consists of following details :-

• 1. Another reduction of 1.00% for period of the two years (from July 1,2003 to June 30,2005)

Thus,the effective interest for such period is MLR –2.50%. The total saving is around Baht 750 million.

• 2. Reduction in DSRA provision from 6 months to 3 months; thus, Ratch’s liquidity improved by
• 2. Reduction in DSRA provision from 6 months to 3 months; thus, Ratch’s liquidity improved by

Baht 1,169 million.

SLIDE 27

Operating Performance Operating Performance Operating Performance Operating Performance

SLIDE 28

Operating Performance Operating Performance 2002 2002 & & 2003 2003 (1st

st Half)

Half)

28

Operating Performance Operating Performance 2002 2002 & & 2003 2003 (1st

st Half)

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SLIDE 29

Operating Performance Operating Performance 2002 2002 & & 2003 2003 (1st

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SLIDE 30

Future Projects Future Projects Future Projects Future Projects

SLIDE 31

Future Projects Future Projects

Projects in Progress Projects in Progress

31

Projects in Progress Projects in Progress

Mini Hydropower Installed Capacity (MW) Status Mini Hydropower Installed Capacity (MW) Status

Pasak Jolasid 6.7 EPC selection completed (EPC contract will be signed soon) Chao Phraya Khlong Tha Dan 12 10 soon) EPC bidding process Under detailed design process Khlong Tha Dan 10 Under detailed design process

IPP Acquisitions Installed Capacity (MW) Status

TECO

Pricing was concluded pending issues

• Official consent from TECO’s other

(37.5% acquisition target) BLCP 700

• Official consent from TECO’s other

shareholders

• Call EGM

Deal closing expected to be around the end of September 2003

BLCP (35% acquisition target) Union 1,347

end of September 2003

Under discussion on pricing Union (25% acquisition target) 1,400 pricing

SLIDE 32

Investment Consideration Investment Consideration Investment Consideration Investment Consideration

SLIDE 33

Why RATCH ? Why RATCH ?

33

Why RATCH ? Why RATCH ?

Dominant Player

• RATCH is the largest private power producer in Thailand. Its forefront

position and financial strength will serve as a solid platform for further

Dominant Player

position and financial strength will serve as a solid platform for further business expansions.

• Strong expansion economics with:

– Average EBITDA of approximately 9 billion Baht per annum during the next ten years. – Excess cash after dividend at RATCH (payout ratio of 40% and net

• f debt reserve accounts) retention will be served for business

expansion – Competitive advantage for future expansion potential with minimal investment cost estimated at around US$ 500,000/ MW. investment cost estimated at around US$ 500,000/ MW.

SLIDE 34

Why RATCH ? Why RATCH ?

34

Why RATCH ? Why RATCH ?

Solid Industry Growth

• Electricity consumption still grow at a solid pace; country need new capacity in the near
• Electricity consumption still grow at a solid pace; country need new capacity in the near

future

Strong Earnings Growth

• Strong earnings growth from the 25 years well structured PPAs.

SLIDE 35

Why RATCH ? Why RATCH ?

35

Why RATCH ? Why RATCH ?

– Minimal earning swings from change in foreign exchange rate as Low Risk – Minimal earning swings from change in foreign exchange rate as total financing will be in Thai Baht. – No Minimum-Take-Or-Pay risk on natural gas purchases from – No Minimum-Take-Or-Pay risk on natural gas purchases from PTT. – Availability Payments will be received irrespective of whether – Availability Payments will be received irrespective of whether electricity is dispatched or any fuel supply disruptions. – Protected from impact of change in law and Grid Code via the – Protected from impact of change in law and Grid Code via the ability to pass through cost increases above certain thresholds. – DSCR over the life of debt (1.7x) is higher than the minimum – DSCR over the life of debt (1.7x) is higher than the minimum DSCR required by the banks (1.2x)

SLIDE 36

Awards in Awards in 2002 2002 & & 2003 2003 Awards in Awards in 2002 2002 & & 2003 2003

SLIDE 37

Awards in Awards in 2002 2002 :

Good Corporate Governance Good Corporate Governance

37

Good Corporate Governance Good Corporate Governance

• RATCH ranked the 3rd in

Asiamoney corporate governance poll for utilities sector in Asia poll for utilities sector in Asia

Source : Asiamoney October Source : Asiamoney October 2002 2002

SLIDE 38

Awards in Awards in 2002 2002 :

Good Corporate Governance Good Corporate Governance

38

Good Corporate Governance Good Corporate Governance

Award Title : Disclosure Award Award details : Disclosure of Form 56-1 (Particular on Risk Factors and Nature of Business) Organizer : The Office of the Securities Organizer : The Office of the Securities and Exchange Commission Commission Date : 5th November 2002

SLIDE 39

Awards in Awards in 2002 2002 :

Environmental and Social Responsibilities Environmental and Social Responsibilities

39

Environmental and Social Responsibilities Environmental and Social Responsibilities

Award Title : Excellent quality Award on Nationwide basis Nationwide basis Award details : Excellent maintenance of Navaratchaburirom Park Navaratchaburirom Park (a recreational center located in front of the power plant built and maintained by Ratchburi and maintained by Ratchburi Generating Co.) Organizer : Ministry of Public Health Date Organizer : Ministry of Public Health Date 31st October 2002

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Awards in Awards in 2003 2003 :

Best Corporate Governance Report Awards Best Corporate Governance Report Awards

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Best Corporate Governance Report Awards Best Corporate Governance Report Awards

Award Title : Best Corporate Governance Report Awards Award details : Disclosure of Form 56-1, Annual Report, Invitation Letter and Minutes of the Shareholder and Minutes of the Shareholder Annual Meeting (Particular on Corporate Governance Principle) Corporate Governance Principle) Organizer : The Stock Exchange of Thailand Date : 21st July 2003 Date : 21st July 2003

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Appendix Appendix Appendix Appendix

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Appendix: Appendix:

Thai Electricity Market Structure Thai Electricity Market Structure - Current Structure Current Structure

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Thai Electricity Market Structure Thai Electricity Market Structure - Current Structure Current Structure

Key Features of current structure

SPPs EGAT IPPs RATCH EGCO

• Currently, the private sector has only a limited

role ( generation only).

• EGAT has a market monopoly at the wholesale

SPPs EGAT IPPs EGCO

• Power Purchase
• EGAT has a market monopoly at the wholesale

level, supplying electricity to PEA, MEA and some direct customers.

• There are few incentives for private power

Government EGAT

• Power Purchase
• System Operation
• Transmission
• Bulk Power Supply
• There are few incentives for private power

producers to improve efficiency due to lack of market competition (aside from when bidding for the PPA with EGAT).

PEA MEA Direct Customers

the PPA with EGAT).

• As EGAT is responsible for long-term electricity

planning, new generating capacity must be

Customers Customers

planned and approved through/by EGAT.

• PEA

and MEA are responsible for distribution/retail supply to most end users at the

EGAT: Electricity Generating Authority of Thailand Source: Electricity Supply Industry Reform and Thailand Power Pool, November 2000, modified by RATCH consultant

distribution/retail supply to most end users at the prices regulated by EPPO.

• In some limited cases (mostly industrial users),

some end users are able to purchase electricity

EGAT: Electricity Generating Authority of Thailand PEA: Provincial Electricity Authority MEA: Metropolitan Electricity Authority SPP: Small Power Producer

some end users are able to purchase electricity either directly from EGAT or SPPs.

SPP: Small Power Producer IPP: Independent Power Producer EPPO: Energy Policy and Planning Office

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Powering the Future Powering the Future Powering the Future Powering the Future