Ratchaburi Electricity Generating Holding PCL.
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Managing its finance to best support the
Company’s plan and goal and ensuring that
the Company has competitive financial goal
and sufficient liquidity
Managing risks related to corporate image to
maintain trust from community and society
Operating business in compliance with
related laws and regulations
The Company has so far achieved its business
goal and been entrusted by concerned parties
thanks to its appropriate risk management, efficient
internal control and ability to respond quickly to
risks through risk management and preparedness.
A working team was set up to closely and
regularly monitor and audit the operations. Clear
responsibility of each unit, efficient assessment
of the situation before and after risk measures
are implemented, good internal control system
that meets with the Securities and Exchange
Commission (SEC)’s standard are among factors
contributing to effective risk management. The
Company also has quarterly assessment, enabling
it to keep up with changes in the external factor
and environment that may affect the Company’s
operation. Given these measures, the Company has
efficiently managed risks according to business plan
and identify current and future risks. By regularly
review and improve risk management every quarter
and having identified clear objective for each
area of risk management that directly address the
Company’s goal and business plan, the Company
can timely and quickly identify risk factors. Key
Performance Indicator (KPI) was appropriately set
in order to efficiently assess the effectiveness of
risk management process. Possible risk and its
impact are considered in assessing level of risks
and setting measures to be introduced before and
after risk management measures. Assessment has
been conducted on quarterly basis.
The Company’s risk management principle
consist of the following factors:
1. Competition Risks
The Company has a policy to invest in power
generation and related businesses in Thailand
and overseas and makes investment decision by
considering the following competition risk factors:
1.1 Impact from the Government
and Regulator Policies
According to the government’s economic
stimulation policy and increasing power purchase
in both large-scale power plants and renewable
energy power plants under the Power Development
Plan 2010-2033 (Revision3) (PDP2010 Revision3),
private companies have expressed interest in
investing in power generation business. To prepare
for such situation, the Company appointed a
working team, comprising a group of experts with
knowledge and related experience, to study
related factors, prepare, monitor, study and assess
the Company’s competitiveness.
The Government’s renewable and
alternative energy promotion policy and efforts
to reduce impact on the Global Warming have
encouraged the Company to adjust its goal to
increase power production from renewable energy
from currently 200 MW to 500 MW by 2016. At the
same time, the Company is seeking opportunities
to invest in projects to produce electricity from
alternative energy, such as solar power, wind
power and biomass, in Thailand and overseas. It
has conducted a thorough study to support new
project development and has partnered with
various companies which already operate such
businesses. This also prevents risks from project
operation while enabling the Company to clearly
set deadline for project completion.
