160
Annual Report
2013
Ratchaburi Electricity Generating Holding Public Company Limited and its subsidiaries
Notes to the financial statements
39
Power Purchase Agreement
On 9 October 2000, Ratchaburi Electricity Generating Company Limited, a subsidiary, entered into
the Power Purchase Agreement with EGAT for the period of 25 years, whereby the subsidiary will
deliver the Net Electrical Generation from the Thermal Generating Units 1 and 2 and the Combined
Cycle Generating Blocks 1, 2 and 3 to EGAT as defined in the agreements. Under the Power Purchase
Agreement, the subsidiary will receive revenue from EGAT comprising of an Availability Payment
(AP) and an Energy Payment (EP). The Availability Payment (AP) covers repayment of principal and
interest of loan, equity return for shareholders, fixed expenses in operation and maintenance, and
administrative expenses. Such expenses will be adjusted to cover the change of interest rate,
Consumer Price Index and exchange rate. The Energy Payment (EP) covers production costs
comprising of fuel costs, variable costs in operation and maintenance, which will be adjusted in
accordance with the fuel price, efficiency ratio and Consumer Price Index.
On 3 December 2008, Ratchaburi Energy Company Limited, a subsidiary, entered into the
2 Megawatts Power Purchase Agreement with EGAT for the period of 5 years. The contract can be
extended for a period of 5 years subject to the provision of written notice to the counterparty within 30
days before the contract expiry date.
Operation and Maintenance Agreement and Other Service Agreements
On 7 January 2009, Ratchaburi Electricity Generating Company Limited, a subsidiary, entered into
the Operation and Maintenance Agreement with EGAT whereby EGAT will operate and provide
general maintenance services including major overhaul for the subsidiary. The total operation and
general maintenance charge including services charges for major maintenance are approximately Baht
16,608.16 million, adjusted by the annual Consumer Price Index. The contract is valid from 1 January
2009 until the termination dates of the Power Purchase Agreements for Thermal Generating Units and
Combined Cycle Generating Units.
Fuel Management Service Agreements
On 1 July 2012, Ratchaburi Electricity Generating Company Limited, a subsidiary entered into the
Fuel Management Service Agreements with EGAT whereby EGAT will coordinate the supply and
delivery of fuel (Heavy Oil), according to subsidiary and in line with EGAT's power dispatching plan.
The contract is effective from 1 July 2012 until 30 June 2013, and the contract will be extended every
year. The management service fee as stipulated in the agreement.
Land Lease Agreement and Common Facility Agreement
On 7 June 2004 and 21 October 2005, Ratchaburi Electricity Generating Company Limited, a
subsidiary, entered into the Land Lease Agreement with Ratchaburi Power Company Limited to lease
an area of 145 rais in the Ratchaburi Power Plant area for a power plant project to Ratchaburi Power
Company Limited for the period of 25 years and 3 months commencing from Ratchaburi Power’s
commercial operation date.
On 25 November 2005, Ratchaburi Electricity Generating Company Limited, a subsidiary, entered into
the Common Facility Agreement with Ratchaburi Power Company Limited whereby the subsidiary
will provide certain facilities, utilities, services, right to use and access rights relating to the
construction and operation of the facility to Ratchaburi Power Company Limited as defined in the
agreement. This agreement is effective from the signing date in the agreement and will be expired on
the expiry date of the Land Lease Agreement dated 7 June 2004.
Notes to the financial statements
Ratchaburi Electricity Generating Holding Public Company Limited and its subsidiaries
