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Fact Sheet

Power Development Fund

Office of the Energy Regulatory Commission

30 September 2016

Office of the Energy Regulatory Commission

Fact Sheet: Power Development Fund

Contents

POWER DEVELOPMENT FUND under the Energy Industry Act, B.E. 2550 (2007) .............. 1

1. Background of the Power Development Fund ....................................................................... 1

2. Structure and Management of Power Development Fund Money ........................................ 3

3. Progress of Power Development Fund Operations ................................................................ 6

4. Power Development Fund Performance (as Working Capital) ............................................... 16

5. Guidelines for Presenting Fiscal Year 2017 Work Plans of Local Power Development Funds under Category A and Category B ............................................................................ 17

6. Highlights of the Operations of the Power Development Fund for Development or Rehabilitation of Localities Affected by Power Plant Operation (the Fund Operations under Section 97(3)) .............................................................................................................. 18

7. Public Relations Activities and Exhibitions of Community Project Performance “3-Year Learning and Stepping Forward to Sustainable Development” ............................. 28

8. Power Development Fund Awards ...................................................................................... 30

9. Contact/Coordination Pertaining to the Operation of Power Development Funds in Designated Areas ................................................................................................................. 32

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POWER DEVELOPMENT FUND

under the Energy Industry Act, B.E. 2550 (2007)

1. Background of the Power Development Fund

The “Power Development Fund (the Fund)” has been set up under the Office of the

Energy Regulatory Commission (OERC) pursuant to the Energy Industry Act, B.E. 2550 (2007), with

the following objectives: (1) to be used as a capital to enhance extensive electrification to various

localities, (2) to decentralize development to provincial areas, (3) to develop or rehabilitate localities

affected by power plant operation, and (4) to promote the use of renewable energy and technologies for

electricity industry operation that have minimal impact on the environment, with due consideration of

balance of natural resources and fairness to power consumers.

“Operations pertaining to the Fund” will be regulated by the Energy Regulatory

Commission (ERC) in compliance with the policy framework prescribed by the National Energy Policy

Council (NEPC). The money and assets belonging to the Fund are not subject to remittance to the

Ministry of Finance as state revenue under the law on treasury balance and the law on budgetary

procedure. The Office of the Energy Regulatory Commission (OERC) is responsible for the receipt,

disbursement, keeping and management of the money of the Fund in conformity with the regulations set

forth by the ERC, by separating the Fund account from the OERC budget. The operations pertaining to

the Fund will be subject to inspection by the Office of the Auditor General of Thailand.

“Sources of the Fund” comprise the following: (1) contributions from electricity industry

licensees in accordance with the announcements issued by the ERC under the NEPC policy framework,

(2) fines collected from electricity industry licensees who violate or fail to comply with ERC orders, (3)

donated money or assets, and (4) interest or any benefit incurred from the money or assets of the Fund.

In this regard, the ERC has set the criteria, procedures and conditions of sending contributions to the

Fund, with distinct account separation according to the operations stipulated in Section 97(1) (2) (3) (4)

and (5) pursuant to the regulations issued by the ERC under the NEPC policy framework, with due

consideration of impact on power consumers who have to bear the burden of contribution sending to the

Fund of electricity industry licensees.

“Deployment of the Fund” will be in compliance with the objectives specified under

Section 97 of the Energy Industry Act (2007) and the regulations prescribed by the ERC under the

policy framework of the NEPC. The accounts of the Fund spending will be clearly separated by

activity, as follows:

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(1) Section 97(1) to compensate and subsidize for electricity industry licensees who have

provided services for underprivileged power consumers or to enhance extensive electrification or to

support decentralization of development to provincial areas, with the following two objectives:

(1.1) To compensate revenue among the Power Utilities to enhance extensive

electrification or to support the policy on development decentralization to provincial areas. The

Electricity Generating Authority of Thailand (EGAT) (2011-2015) and the Metropolitan Electricity

Authority (MEA) will charge power consumers according to the power tariff structure and send

contributions to the Fund to be used as revenue compensation to the Provincial Electricity Authority

(PEA) at the rate prescribed by the ERC.

(1.2) To subsidize electricity industry licensees who have provided services for

underprivileged power consumers to enhance and support state policy. Electricity supply

licensees will charge power consumers under the following categories: medium general services, large

general services, specific business services, non-profit organizations, temporary power customers,

interruptible rate customers and reserve power customers, according to the power tariff structure, and

send contributions to the Fund to compensate electricity supply licensees for having provided services

for underprivileged power consumers pursuant to the state policy and at the rate specified by the ERC.

(2) Section 97(2) to compensate power consumers who have to pay the tariffs at a higher

rate as the electricity system control licensee has ordered licensees who operate electricity industry to

generate electricity in an unfair and discriminatory manner. In this regard, EGAT is the sole

electricity system control licensee.

(3) Section 97(3) to develop or rehabilitate localities affected by power plant operation.

Presently, the ERC has issued an announcement pursuant to the policy framework of the NEPC,

requiring electricity generation licensees to send contributions to the Fund, which can be divided into

two cases, i.e. (1) during the plant construction, at a rate of 50,000 Baht/MW/year and must be no less

than 50,000 Baht/year; and (2) during the plant commission, at a rate classified by fuel type used for power

generation, ranging from 1-2 satangs/kilowatt-hour (kWh) (or satangs/unit), effective since January

2011, as shown in the following.

Table 1: Contribution Rates to the Power Development Fund imposed on Electricity Generation Licensees during Commission

Fuel Satang*/kWh Fuel Satang/kWh Coal, Lignite 2.00 Wind, Solar 1.00 Hydropower 2.00 Biogas, Biomass 1.00 Fuel oil, Diesel 1.50 Residues and wastes 1.00 Natural gas 1.00 Municipal Solid Waste 1.00 Other Renewable Energy 1.00 * 100 Satangs = 1 Thai Baht; approx. 35 Baht = 1 USD

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It is stipulated that the OERC allocate 95% of the obtained contributions for operations

under Section 97(3) and 5% as the administrative cost of the Fund for operations under Section 97(6).

(4) Section 97(4) to promote the use of renewable energy and technologies that have

minimal impact on the environment, with due consideration of balance of natural resources and fairness

to power consumers. The contribution sent to the Fund to be spent on the implementation under Section

97(4) is set at a rate of 0.005 Baht per unit of electricity sale in the billing month, effective since 31

December 2014. Consequently, electricity supply licensees commenced reporting their sending of

contributions as from electricity sale in the billing month of January 2015 and started sending

contributions to the Fund as from March 2015 onwards.

(5) Section 97(5) to increase knowledge, awareness and participation of the public in

power-related issues. The contribution sent to the Fund to be spent on the implementation under

Section 97(5) is set at a rate of 0.002 Baht per unit of electricity sale in the billing month, effective since

31 December 2014. Consequently, electricity supply licensees commenced reporting their sending of

contributions as from electricity sale in the billing month of January 2015 and started sending

contributions to the Fund as from March 2015 onwards.

(6) Section 97(6) to be used as the Fund administration cost, as a reserve in case of

emergency to remedy or alleviate, in the first instance, damage caused by power plant operation, and as

subsidies for development or rehabilitation of localities which are affected by power plant operation but

for which the allocated money from the Fund is insufficient for such development or rehabilitation.

2. Structure and Management of Power Development Fund Money

The Fund management is undertaken by the ERC with assistance of five relevant sub-

committees, whose authority and duties can be summarized as follows.

(1) The Energy Regulatory Commission (ERC) being responsible for policy setting and

regulation of the Fund operation and money spending, granting approval of the Fund allocation and

profit-making, including the appointment of Community Development Committees in areas

surrounding power plants (CDCs) to manage the allocated Fund money for operations under Section

97(3) in respective localities and the appointment of sub-committees to assist with the work execution,

setting the framework for monitoring and evaluation of the Fund performance as well as any other

operation so that the Fund objectives could be achieved.

(2) The Sub-committee on the Screening of Work Plans and Projects under Power

Development Fund for Operations under Section 97(3), to deliberate and screen the strategic plan,

annual work plan and budget allocation framework of each Power Development Fund in designated

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areas, as proposed for financial support from the Fund, and to recommend to the ERC policy and

guidelines for regulating the Fund operations and for efficient Fund money spending. In addition, the

Sub-committee has the powers to summon a concerned entity or person to participate in a meeting and

to acquire, collect and send or clarify relevant documents and information, as appropriate, and to

appoint a consultant or a working group to assist with the work execution of the Sub-committee, and

periodically report the outcome of its duty execution to the ERC, as deemed appropriate.

(3) The Sub-committee on the Screening of Projects Promoting the Use of Renewable

Energy and Technologies for Electricity Industry Operation, to screen work plans of Power

Development Funds for operations under Section 97(4), to consider the screening criteria, to screen

project proposals to ensure compliance with specified regulations and criteria, to consider revision of

project details without creating any impact on the budget already approved by the ERC, to recommend

policy guidelines and approach for management and regulation of the Fund spending under Section

97(4), to invite a concerned entity or person to participate in a meeting and to acquire, collect and send

or clarify relevant documents and information as appropriate, to appoint a working group or a person

to consider or to perform any task as assigned by the Sub-committee, and to report the outcome of its

duty execution to the ERC, including performing other tasks as assigned by the ERC.

(4) The Sub-committee on the Screening of Projects on Public Relations and

Increasing Public Participation in Power-related Issues, to set the action plan of the Fund in

relation to the increase of knowledge, awareness and participation of the public in power-related

issues, pursuant to Section 97(5), and set the criteria for project proposal screening, to screen project

proposals according to the programs announced by the ERC to comply with stipulated regulations and

criteria pursuant to Section 97(5), for presentation to the ERC for approval. In addition, the Sub-

committee is tasked to consider the revision of project details, that are considered necessary without

creating any impact on the budget received during the year, based on the work plan already approved

by the ERC, and to recommend policy guidelines and approach for management and regulation of the

Fund spending under Section 97(5), and to report the outcome of its duty execution to the ERC,

including performing other tasks as assigned by the ERC.

(5) The Sub-committee on Evaluation of Power Development Fund Performance, to

consider determining the criteria and approach for evaluating the Power Development Fund

performance, to monitor and evaluate the Fund performance, to report the outcome of its duty

execution and provide recommendations to the ERC. In addition, the Sub-committee has the powers

to summon a concerned entity or person to participate in a meeting and to acquire, collect and send or

clarify relevant documents and information, and to appoint a consultant or a working group to assist

with its work execution, as deemed appropriate.

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(6) The Sub-committee on Power Development Fund Management (as Working Capital),

to consider implementing the strategies, work plans and the Fund management guidelines in an efficient

and effective manner; to manage the Fund in compliance with relevant rules, regulations and criteria;

and to follow up and recommend guidelines on the Fund management to the ERC. The Sub-committee

has the powers to appoint a consultant or a working group to assist with its work execution, as deemed

appropriate.

In this connection, the Power Development Fund Management Department has been established

under the OERC to regulate the Fund implementation, being tasked with the following core duties: to

recommend the policy on the Fund regulation and the criteria for receipt and disbursement of the Fund

money; to undertake matters relating to finance, accounting and management of the Fund money and

prepare a Cash Book Report (report on the receipt and disbursement) of the Fund to the ERC; to

determine the management structure and set procedures for the receipt and disbursement of the Fund

money, project management as well as follow up and evaluate the outcome, including setting templates

of various forms and the format of performance report. In addition, the Department will have to

coordinate with consultant teams engaged by the OERC in order to draft regulations necessary for the

Fund operation, follow up and evaluate the operation outcome, and develop the accounting system and

the information technology system to accommodate the Fund operation in the future.

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3. Progress of Power Development Fund Operations

3.1 Issuance of Regulations, Announcements and Orders related to the Fund

Operations

So far, the ERC has issued 52 regulations, announcements and orders related to the Fund

operations, as follows:

3.1.1 Issuance of the Regulation of the ERC on Power Development Fund, B.E. 2553

(2010), stipulating an overview of practice concerning the receipt, disbursement, keeping and

management of the Fund money. The regulation was published in the Government Gazette on 20

December 2010 and has taken effect since 21 December 2010.

3.1.2 Fund Operations under Section 97(1) – Altogether 16 announcements and orders

have been issued by the ERC:

Operation Details 1. Revenue Compensation among

1. Order of the ERC on Sending Contributions to Power Development Fund for Revenue Compensation among Power Utilities

Power Utilities (9 Orders)

2. Order of the ERC No. 76/2554 on Sending Contributions to and Disbursement of Money from Power Development Fund under Section 97(1) for Revenue Compensation among Power Utilities in 2011





7. Order of the ERC No. 10/2558 on Sending Contributions to and Disbursement of Money from Power Development Fund under Section 97(1) for Revenue Compensation among Power Utilities in 2014 (Amendment)


9. Order of the ERC No. 119/2558 on Sending Contributions to and Disbursement of Money from Power Development Fund under Section 97(1) for Revenue Compensation among Power Utilities during 2016-2017

2. Subsidizing Underprivileged Power Consumers (6 Orders & 1 Announcement)

1. Order of the ERC on Sending Contributions to and Disbursement of Money from Power Development Fund in respect of State Agencies for Subsidizing Underprivileged Power Consumers

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Operation Details

2. Order of the ERC No. 69/2554 on Sending Contributions to and Disbursement of Money from Power Development Fund in respect of State Agencies for Subsidizing Underprivileged Power Consumers (1st Addition)

3. Order of the ERC No. 78/2554 on Sending Contributions to and Disbursement of Money from Power Development Fund in respect of Private Electricity Supply Licensees for Subsidizing Underprivileged Power Consumers

4. Order of the ERC No. 101/2555 on Sending Contributions to Power Development Fund by State-Agency Electricity Supply Licensees for Subsidizing Underprivileged Power Consumers

5. Order of the ERC No. 102/2555 on Sending Contributions to Power Development Fund by Private Electricity Supply Licensees for Subsidizing Underprivileged Power Consumers

6. Order of the ERC No. 177/2555 on Sending Contributions to Power Development Fund by State-Agency Electricity Supply Licensees for Subsidizing Underprivileged Power Consumers

7. Announcement of the ERC on Sending Contributions to and Disbursement of Money from Power Development Fund Imposed on Electricity Supply Licensees for Compensating and Subsidizing Electricity Supply Licensees Who Have Provided Services for Underprivileged Power Consumers, B.E. 2559 (2016)

3.1.3 Fund Operations under Section 97(3) – To ensure smooth operations of Power

Development Funds in designated areas, the ERC have issued 24 regulations and announcements,

prescribing the operational criteria, as shown in the following:

Operation Details 1. Sending of

Contributions to the Fund

1. Announcement of the ERC on Sending of Contributions to Power Development Fund for Electricity Industry Licensees with Electricity Generation Licenses, B.E. 2 5 5 3 (2010), published in the Government Gazette on 20 December 2010 and effective since 21 December 2010. As a result, the electricity generation licensees are required to send contributions to the Fund based on the amount of their energy generation as from January 2011 onwards

2. Operations of Local Power Development Funds

1. Regulation of the ERC on Power Development Fund for Development or Rehabilitation of Localities Affected by Power Plant Operation, B.E. 2 5 5 3 ( 2 0 1 0 ) , concerning the management of Power Development Fund Monies for a Designated Area, published in the Government Gazette on 8 February 2011 and effective since 9 February 2011

3. CDC Recruitment and Appointment (5 Announcements)

1. Announcement of the ERC on the Selection of the Community Development Committee in the Area Surrounding a Power Plant, B.E. 2554 (2011), announced on 29 April 2011 and effective since 30 April 2011

2. Announcement of the ERC on the Selection of the Tambon (Sub-district) Development Committee in the Area Surrounding a Power Plant, B.E. 2554 (2011), announced on 29 April 2011 and effective since 30 April 2011

3. Announcement of the ERC on the Steps and Procedures for the Selection of the Community Development Committee in the Area Surrounding a Power Plant and the Tambon Development Committee in the Area Surrounding a Power Plant, B.E. 2554 (2011), announced on 11 August 2011 and effective since 12 August 2011

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Operation Details

4. Announcement of the ERC on the Selection of the Community Development Committee in the Area Surrounding a Power Plant, B.E. 2555 (2012) in the Case where the Number of Tambons in the Designated Area Exceeds the Number of People’s Sector Representatives

5. Announcement of the OERC on Discharge from the Office at the Initial Term of the Community Development Committee on the Part of People’s Sector Representatives by Drawing Lots, B.E. 2557 (2014)

4. Criteria for Allocation of Local Power Development

1. Announcement of the ERC on Criteria for Money Allocation to and Consideration of Community Projects Financed by the Power Development Fund under Section 97(3), B.E. 2555 (2012), announced on 5 March 2012 and effective since 6 March 2012

Fund Money (2 Announcements)

2. Announcement of the ERC on Criteria for Money Allocation to and Consideration of Community Projects Financed by the Power Development Fund under Section 97(3), (No. 2), B.E. 2555 (2012), announced on 30 March 2012 with immediate effect

5. Spending of Local Power Development Fund Money

1. Announcement of the ERC on Administrative Cost for the Operation of the Power Development Fund in a Designated Area, B.E. 2555 (2012), announced on 31 January 2012 and effective since 1 February 2012

(4 Announcements) 2. Announcement of the ERC on Administrative Cost for the Operation of the Power Development Fund in a Designated Area (No. 2), B.E. 2555 (2012), announced on 30 March 2012 with immediate effect

3. Announcement of the ERC on Disbursement of Expenses for Training, Seminars and Study Visits Abroad for the Operations of the Power Development Fund for Development or Rehabilitation of Localities Affected by Power Plant Operation, B.E. 2557 (2014), announced on 28 January 2014 and effective since 29 January 2014

4. Announcement of the ERC on Disbursement of Expenses for Training, Seminars and Study Visits Abroad for the Operations of the Power Development Fund for Development or Rehabilitation of Localities Affected by Power Plant Operation (No. 2) B.E. 2557 (2014), announced on 17 June 2014 and effective since 18 June 2014

6. Procurement of Power Development Fund

1. Regulation of the ERC on Procurement of the Power Development Fund for Development or Rehabilitation of Localities Affected by Power Plant Operation, B.E. 2555 (2012), published in the Government Gazette on 19 March 2012 and effective since 20 March 2012

7. Receipt of Money and Donated Assets from former Community Development Fund

1. Regulation of the ERC on the Receipt of Money and Assets Donated to the Power Development Fund for Development or Rehabilitation of Localities Affected by Power Plant Operation, B.E. 2555 (2012), announced on 16 July 2012 and effective since 17 July 2012

8. Decisions of ERC Chairman (9 Decisions)

1. Decision of ERC Chairman No. 2/2559 on Exemption from Presenting Results of the Study, Evaluation or Research on Impact of Power Plant Operation in Fiscal Year 2017 Work Plans of Power Development Funds, Category B, pursuant to Article 35(3) of the Regulation of the ERC on Power Development Fund for Development or Rehabilitation of Localities Affected by Power Plant Operation B.E. 2553 (2010)

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Operation Details

8. Decisions of ERC Chairman (9 Decisions) (cont.)

2. Decision of ERC Chairman No. 1/2559 on Granting Power of Attorney by Vice Chairman of Community Development Committee, pursuant to the Regulation of the ERC on Power Development Fund for Development or Rehabilitation of Localities Affected by Power Plant Operation B.E. 2553 (2010)


4. Decision of ERC Chairman No. 1/2558 on Disbursement of Meal, Snack and Beverage Costs for Meetings, Seminars and Training, pursuant to the ERC Announcement on Administrative Costs for the Operation of the Power Development Fund in a Designated Area, B.E. 2555 (2012)


6. Decision of ERC Chairman No. 4/2555 on Exemption from Presenting Results of the Study, Evaluation or Research on Impact of Power Plant Operation, pursuant to Article 35 of the Regulation of the ERC on Power Development Fund for Development or Rehabilitation of Localities Affected by Power Plant Operation B.E. 2553 (2010), in the Submission of Annual Work Plans and Community Projects of Power Development Funds, Category B, in Fiscal Year 2013

7. Decision of ERC Chairman No. 3/2555 on the Addition of Details of Representatives of the Municipality or Tambon Administrative Organization, under Article 7, paragraph 3, of the Regulation of the ERC on Power Development Fund for Development or Rehabilitation of Localities Affected by Power Plant Operation B.E. 2553 (2010), to Include Representatives of Bangkok and Pattaya City

8. Decision of ERC Chairman No. 2/2555 on Granting Power of Attorney by Chairman of Community Development Committee, pursuant to the Regulation of the ERC on Power Development Fund for Development or Rehabilitation of Localities Affected by Power Plant Operation B.E. 2553 (2010)

9. Decision of ERC Chairman No. 1/2555 on Request for Exemption from Compliance with Article 35 of the Regulation of the ERC on Power Development Fund for Development or Rehabilitation of Localities Affected by Power Plant Operation B.E. 2553 (2010), in the Submission of Annual Work Plans and Community Projects in Fiscal Year 2012

3.1.4 In order that the operations of local Power Development Finds would proceed

smoothly, the OERC has so far issued an announcement and prepared handbooks pertaining to the Fund

operations under Section 97(3), as follows:

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Operation Details

1. Reporting of Project Implementation Progress

1. Announcement of the OERC on Determination of the Format for Preparing a Progress Report on Community Project Implementation Financed by Power Development Fund, B.E. 2555 (2012)

2. Development of Strategic Plans and Submission of Annual Work Plans (2 Handbooks)

1. Handbook on Development of Strategic Plans and Submission of Annual Work Plans in Fiscal Years 2013 – 2015

2. Handbook for Screening Annual Work Plans of Power Development Funds under Section 97(3)

3. Procurement Operational Handbook on Procurement for Power Development Funds in Designated Areas

4. Finance and Accounting

Operational Handbook on Finance and Accounting for Power Development Funds in Designated Areas

5. Category C Funds Handbook for Implementing Community Projects Financed by Power Development Funds, Category C

3.1.5 Fund Operations under Section 97(4) – In order to promote the use of renewable

energy, and technology development and improvement, including the study, research, support and

demonstration in relation to renewable energy in the electricity industry operation, the ERC has so far

issued the following three (3) regulation and announcements to set forth the criteria for the operations:

Operation Details 1. Sending


1. Announcement of the ERC on Sending Contributions to Power Development Fund for Electricity Supply Licensees to Promote the Use of Renewable Energy and Technologies for Electricity Industry Operation with Minimal Environmental Impact, B.E. 2557 (2014), published in the Government Gazette on 3 0 December 2 0 1 4 and effective since 3 1 December 2 0 1 4 . As a result, the electricity supply licensees are required to send contributions to the Fund based on the amount of their electricity distribution as from January 2015 onwards.

2. Criteria and Procedures for Allocating the Fund Money

1. Regulation of the ERC on the Criteria and Procedures for Allocating Power Development Fund Money to Promote the Use of Renewable Energy and Technologies that Have Minimal Impact on the Environment, B.E. 2559 (2016), published in the Government Gazette on 30 March 2016, with effectiveness as from 31 March 2016

3. Solicitation for Project Proposals

1. Announcement of the OERC on Solicitation for Project Proposals for Funding from the Power Development Fund for Operations under Section 97(4) for Fiscal Year 2017, 1 st Round, dated 30 September 2016

3.1.6 Fund Operations under Section 97(5) – With a view to increasing power-related

knowledge and awareness of the public as well as their participation in power-related issues, the

development of information networks and cooperation with relevant agencies so as to bring about

economic and efficient use of electricity, the ERC has so far issued the following regulation and

announcement to set forth the criteria for the operations:

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Operation Detail 1. Sending


1. Announcement of the ERC on Sending Contributions to Power Development Fund for Electricity Supply Licensees to Increase the General Public Knowledge and Awareness of Power-related Issues, B.E. 2557 (2014), published in the Government Gazette on 30 December 2014 and effective since 31 December 2014. As a result, the electricity supply licensees are required to send contributions to the Fund based on the amount of their electricity distribution as from January 2015 onwards.

2. Criteria and Procedures for Allocating the Fund Money

1. Regulation of the ERC on the Criteria and Procedures for Allocating Power Development Fund Money to Increase Knowledge, Awareness and Participation of the Public in Power-related Issues, B.E. 2559 (2016), published in the Government Gazette on 30 March 2016, with effectiveness as from 31 March 2016.

3.2 Fund Operations under Section 97(1)

The objective is to compensate and subsidize for electricity industry licensees who have

provided services for underprivileged power consumers or to enhance extensive electrification or to

support decentralization of development to provincial areas, with the following operations:

3.2.1 Revenue compensation among the Power Utilities: In order to compensate

electricity industry licensees for having extensively provided power services to various localities, the

ERC has issued orders concerning sending contributions to and disbursement of money from Power

Development Fund under Section 97(1) to compensate revenue among the Power Utilities for having

provided extensive electrification. In this regard, the OERC has collected contributions from the

Electricity Generating Authority of Thailand (EGAT) (2011 – 2015) and the Metropolitan Electricity

Authority (MEA) to be used as revenue compensation to the Provincial Electricity Authority (PEA) as

from Fiscal Year 2011 onwards.

3.2.2 Subsidization for Underprivileged Power Consumers: In order to subsidize

electricity industry licensees who have provided services for underprivileged power consumers, the

ERC has issued orders concerning sending contributions to and disbursement of money from Power

Development Fund under Section 97(1) of electricity supply licensees for subsidizing underprivileged

power consumers. Accordingly, the OERC has collected contributions and subsidized underprivileged

power consumers pursuant to state policy from four electricity industry operators that are state agencies,

i.e. EGAT, MEA, PEA and Sattahip Electric Welfare (SEW), and currently about 139 private electricity

supply licensees.

The compensation and subsidization for electricity industry licensees who have provided

services for underprivileged power consumers or to enhance extensive electrification under Section

97(1) can be summarized in the following table.

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Table 2: Compensation and Subsidization for Electricity Industry Licensees Who Have Provided

Services for Underprivileged Power Consumers or to Enhance Extensive Electrification during Fiscal Years 2011 - 2016

Unit: Million Baht Power Development Fund

Operations under Section 97(1)

Fiscal Year Total

2011 2012 2013 2014 2015 2016

Revenue compensation among the PUs

9,706.96 13,291.18 14,191.86 14,404.31 12,455.64 21,045.25 85,095.20

Subsidization for under-privileged power consumers

2,810.42 8,630.63 3,211.78 3,631.09 3,578.42 2,428.06 24,290.40

Total 12,517.38 21,921.81 17,403.64 18,035.40 16,034.06 23,473.31 109,385.60

Remarks: Data as at 30 September 2016


The objective is to compensate power consumers in the case where they have to pay a higher

electricity rate because the electricity system operator licensee of EGAT orders electricity generation

licensees to generate electricity in an unfair and discriminatory manner. However, the ERC has, so far,

not encountered such a case.


The objective is to develop or rehabilitate localities affected by power plant operation.

Regulations and relevant orders have been issued to support development of communities and localities

surrounding power plants, by decentralizing the management powers to the community level so as to

create a management system with good governance, transparency and accountability. The performance in

this regard can be summarized as follows.

3.4.1 Determination of Designated Areas and Appointment of Community

Development Committees

According to the Regulation of the ERC on Power Development Fund for

Development or Rehabilitation of Localities Affected by Power Plant Operation, B.E. 2553 (2010), it is

stipulated that the OERC, by and with ERC approval, will issue announcements on determination of

designated areas which are beneficiaries of financial support from the Fund, covering Tambons (sub-

districts) within the diameter of 1 or 3 or 5 kilometers surrounding a power plant, depending on the

amount of electricity generation in a year. So far, the OERC has announced the establishment of 318 local

Power Development Funds, as shown below.

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Table 3: Summary of the Determination of Power Development Fund Designated Areas

Fund Category Fiscal Year

2011 2012 2013 2014 2015 2016

Category A 10 11 11 12 12 12

Category B 28 40 40 49 55 55

Category C 107 107 1041/ 1002/ 214 251

Total 145 158 155 161 281 318

Remarks: Data as at 30 September 2016 1/ Certain Category C Funds have been merged with Category B Funds due to overlapping designated areas. 2/ Certain Category C Funds have been reclassified as Category B Funds

Presently, the Power Development Fund designated areas covers areas of 67

provinces across the country, which can be divided, based on the Fund management categories, into the

following:

- Category A Funds cover community development areas in 10 provinces:

Lampang, Saraburi, Phra Nakhon Si Ayutthaya, Chonburi, Rayong, Chachoengsao, Ratchaburi, Nakhon Si Thammarat, Songkhla, and Samut Prakan.

- Category B Funds cover community development areas in 33 provinces:

Phichit, Tak, Uttaradit, Kamphaeng Phet, Nakhon Sawan, Lopburi, Phetchabun, Khon Kaen, Kalasin, Ubon Ratchathani, Roi-et, Chaiyaphum, Nakhon Ratchasima, Surin, Saraburi, Sa Kaeo, Prachinburi, Phra Nakhon Si Ayutthaya, Ang Thong, Pathum Thani, Chonburi, Rayong, Chachoengsao, Suphanburi, Kanchanaburi, Ratchaburi, Phetchaburi, Krabi, Surat Thani, Yala, Samut Prakan, Nonthaburi, and Bangkok.

- Category C Funds cover community development areas in 63 provinces: Chiang Rai, Chiang Mai, Mae Hong Son, Lampang, Lamphun, Kamphaeng Phet, Tak, Phichit, Phitsanulok, Phrae, Sukhothai, Chai Nat, Nakhon Sawan, Phetchabun, Lopburi, Sing Buri, Uthai Thani, Khon Kaen, Nakhon Phanom, Bueng Kan, Loei, Sakhon Nakhon, Nong Khai, Nong Bua Lam Phu, Udon Thani, Kalasin, Maha Sarakham, Mukdahan, Roi Et, Si Sa Ket, Ubon Ratchathani, Chaiyaphum, Nakhon Ratchasima, Buri Ram, Surin, Nakhon Nayok, Pathum Thani, Prachin Buri, Phra Nakhon Si Ayutthaya, Saraburi, Ang Thong, Chanthaburi, Chachoengsao, Chonburi, Trad, Kanchanaburi, Nakhon Pathom, Samut Sakhon, Suphan Buri, Chumphon, Prachuap Khiri Khan, Phetchaburi, Ratchaburi Krabi, Trang, Nakhon Si Thammarat, Phang-nga, Phuket, Surat Thani, Pattani, Songkhla, Satun and Bangkok.

13


In order that the CDC recruitment would proceed smoothly, the OERC has

cooperated with the Ministry of Interior in carrying out the recruitment of the people’s sector

representatives to be members of Power Development Fund committees in designated areas. The

performance in this regard is shown in Table 4.

Table 4: Results of the Recruitment and Appointment of CDC (Category A and B Funds) and Municipality or Tambon Administrative Representatives Organization (Category C Funds)

Fund Category Fiscal Year

2012 2013 2014 2015 2016 Category A 10 11 11 11 12

Category B 28 37 38 44 55

Category C - - 45 147 2083/ Total 38 48 94 202 267

Remarks: Data as at 30 September 2016 3/ For Category C Fund operations, the appointment of representatives of the municipality or Tambon

Administrative Organizations in designated areas is underway for 43 Funds.

3.4.2 Budget Allocation for Local Power Development Funds

During Fiscal Years 2012 - 2017, the ERC has approved the annual budget for local

Power Development Funds as follows:

Table 5: Summary of Annual Budget for Local Power Development Funds Unit: Million Baht

The Fund Money for Operations under

Section 97(3)

Fiscal Year 4/ Total

2012 2013 2014 2015 2016 20175/

Category A & B Funds 1,856.16 2,538.70 2,055.40 3,188.42 3,542.38 2,366.54 15,547.60

Administration 144.31 193.00 248.77 202.10 284.33 272.98 1,345.49

Community Projects 1,711.85 2,345.70 1,806.63 2,986.32 3,258.05 2,093.56 14,202.11

Category C Funds - - - 57.63 118.97 56.29 232.89

Total 1,856.16 2,538.70 2,055.40 3,246.05 3,661.35 2,422.83 15,780.49

Remarks: 4/ Since Fiscal Year 2013, the approved budget included the residual budget from previous years. 5/ The ERC approved the Fund money allocation framework for operations under Section 97(3) in Fiscal Year 2017 at

its Meeting No. 9/2016 (389th) on 24 February 2016.

3.4.3 Approval of Budget for Community Project Implementation

As from Fiscal Year 2012 onwards, the ERC has approved Annual Work Plans of

Power Development Funds in designated areas for the management and community project

implementation to bring about benefits to local residents surrounding the power plants, as shown in the

following:

14


Table 6: Summary of Approved Annual Work Plans of Category A and B Funds

Unit: Million Baht

Fiscal Year Annual Work Plans Approved by the ERC

No. of Funds

No. of Projects

Administration Community

Project Total

2012 37 4,524 141.45 1,539.55 1,681.00

2013 50 5,366 202.31 1,402.39 1,604.70

2014 52 6,398 248.77 1,806.63 2,055.40

2015 55 6,109 195.59 2,083.99 2,279.58

2016 67 6,491 235.23 2,670.74 2,905.97

2017 6/ 21 3,409 134.80 886.12 1,020.93

Total 32,297 1,158.15 10,389.42 11,547.58 Remarks: Data as at 30 September 2016 6/ Pending submission to the ERC for budget approval

Table 7: Summary of Approved Annual Work Plans of Category C Funds Unit: Million Baht

Fiscal Year No. of Funds

Approved Budget (Million Baht)

Already Allocated to Local Funds No. of Funds

No. of Projects

Budget (Million Baht)

2015 95 57.43 75 232 42.95 2016 7/ 221 130.24 138 477 82.00

Total 187.67 138 709 124.95 Remarks: Data as at 30 September 2016 7/ Proposed budget was less than approved budget. Representatives of 72 Category C Funds have requested to

include the remaining budget in the Fiscal Year 2017 budget because project submission could not be made in time and the residual budget totaled 2.28 million Baht. The OERC will further present the request to the ERC.


The objective is to promote the use of renewable energy and technologies that have minimal

impact on the environment. In this connection, the ERC has issued the Regulation of the ERC on the

Criteria and Procedures for Allocating Power Development Fund Money to Promote the Use of

Renewable Energy and Technologies that Have Minimal Impact on the Environment, B.E. 2559 (2016),

which was published in the Government Gazette on 30 March 2016.

On 30 September 2016, the OERC issued an announcement inviting project proposals for

funding from the Fund under Section 97(4), with a total funding allocation not exceeding 650 million

Baht for operations under Section 97(4) in Fiscal Year 2017, 1st Round, divided into four programs,

comprising: (1) Promotion and Demonstration of Renewable Energy Utilization in Electricity Industry

Operation, with a budget not exceeding 195 million Baht; (2) Development and Improvement of

Technologies for Electricity Industry Operation that Are Efficient and Create Minimal Impact on the

Environment, with a budget not exceeding 195 million Baht; (3) Study and Research on Renewable

Energy and Technologies for Electricity Industry Operation that Are Efficient and Create Minimal

15


Impact on the Environment, with a budget not exceeding 162.50 million Baht; and (4) Administration –

the costs for supporting the operation, with a budget not exceeding 97.50 million Baht. It is expected

that the announcement on the Fund money allocation under Section 97(4) can be made as from

September 2017 onwards.


The objective is to increase knowledge, awareness and participation of the public in power-

related issues. The ERC has issued the Regulation of the ERC on the Criteria and Procedures for

Allocating Power Development Fund Money to Increase Knowledge, Awareness and Participation of

the Public in Power-related Issues, B.E. 2559 (2016), which was published in the Government Gazette

on 30 March 2016. It is expected that the announcements on solicitation for project proposals for

funding and on the Fund money allocation under Section 97(5) can be made as from September 2017

onwards.


The objective is to be used for three aspects of the Fund administration, i.e. (1) as the Fund

administration cost; (2) as a reserve in case of emergency to remedy or alleviate, in the first instance,

damage caused by power plant operation; and (3) as subsidies for development or rehabilitation of

localities which are affected by power plant operation but for which the allocated money from the Fund

is insufficient for such development or rehabilitation under the annual budget approved by the ERC.

4. Power Development Fund Performance (as Working Capital)

The OERC has conducted the performance evaluation of the Power Development Fund (as

working capital) since Fiscal Year 2014.

Table 8: Summary of Performance Evaluation of the Power Development Fund (as Working Capital)

Dimension Performance in Fiscal Year

2014 2015 2016

(Preliminary)

1. Finance 4.8100 3.9227 5.0000 2. Response to Benefits of Stakeholders 4.0800 3.5000 3.2775

3. Operations 3.6667 4.8943 4.5750 4. Working Capital Management & Improvement 4.7800 4.7917 4.9217

Total 4.3692 4.4389 4.4620

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5. Guidelines for Presenting Fiscal Year 2017 Work Plans of Local Power

Development Funds under Category A and Category B

5.1 The ERC has approved the Guidelines for Presenting Fiscal Year 2017 Work Plans of Local

Power Development Funds under Category A and Category B. According to the guidelines, the CDC is

required to develop a 3-Year Strategic Plan (2017 – 2019) and the Annual Work Plan for Fiscal Year

2017 under the budget framework approved by the ERC, to be presented to the ERC for consideration.

In this regard, a community project prepared for submission for a budget must be able to make the

budget commitment within the fiscal year. However, any project with continual implementation for

about 3-5 years, e.g. a project on engagement of teachers and a project on large-scale construction, can

be proposed, and its budget disbursement shall be made on an annual basis. In this connection, for a

project with a committed contract using the expense budget of a local Power Development Fund for

more than one year, its total required budget must not exceed 20% of the expense budget of the

following year.

5.2 In order to materialize projects that contribute to sustainable community development, which

will eventually lead to a strong community, with the development direction that better corresponds with

the Fund objectives, it is stipulated that the community project budget be divided for large-scale

projects pursuant to the state policy, large-scale projects of the government sector, community projects

with a budget over 300,000 Baht, and community projects with a budget lower than 300,000 Baht, at

the following ratios:

Community Project Budget Ratio

Category A Funds

Category B Funds

Budget >20 million Baht/year

Budget >5 - ≤20 million

Baht/year

Budget ≤5 million Baht/year

and Local Power Development

Funds of Hydro-power Projects

Large-scale Project

Pursuant to the state policy 10% 10%

No less than 60%

Not specified 8/

Government sector (large-scale project)

No less than 60%

No less than 60% Community project

(budget >300,000 Baht)

Small-scale Project

Community project (budget ≤300,000 Baht)

No more than 30%

No more than 30%

No more than 40%

Remarks: 8/ No ratio is specified for Local Power Development Funds of hydropower projects.

5.3 The ERC has set the criteria for proposing community projects for Fiscal Year 2017, requiring

local Power Development Funds to propose large-scale projects pursuant to the state policy, which has

designated Fiscal Year 2017 as the “Year of Health and Education.” In addition, importance should

17


primarily be given to community project implementation according to the following five programs in

developing the Annual Work Plans for Fiscal Year 2017 (projects under other stipulated programs can

still be proposed): (1) Program 1: Enhancement of quality of life, health and well-being; (2) Program 2:

Career development; (3) Program 5: Quality of life improvement; (4) Program 6: Development of

education, religion, local cultures and traditions; and (5) Program 8: Environmental conservation and

rehabilitation, respectively.

6. Highlights of the Operations of the Power Development Fund for Development or Rehabilitation of Localities Affected by Power Plant Operation (the Fund Operations under Section 97(3))

6.1 Categories of Power Development Funds in Designated Areas

According to the Regulation of the ERC on Power Development Fund for Development or

Rehabilitation of Localities Affected by Power Plant Operation, B.E. 2553 (2010), effective since 9

February 2011, it is stipulated that a Power Development Fund committee in a designated area be

established to manage the Fund monies in each area. The committee components will differ based on

the category of the Fund management, as can be summarized below.

Fund Category Category A Category B Category C Allocated Money/Year

> 50 M Baht > 1 M Baht - ≤ 50 M Baht

≤ 1 M Baht

Fund Management

CDC: 15-35 members TDC: ≥ 7 members

CDC: 15-35 members Municipality/Tambon Administration Organization (TAO) representatives: ≤ 3 members

Office Term - CDC: 4 years, and not more than 2 consecutive terms. At the initial term, after two years’ time, half of the committee members shall be discharged by drawing lots.

- TDC: 2 years, and not more than 2 consecutive terms.

CDC: 4 years, and not more than 2 consecutive terms. At the initial term, after two years’ time, half of the committee members shall be discharged by drawing lots.

Not specified

CDC means a Community Development Committee in the areas surrounding a power plant, comprising: representatives of the people’s sector, the number of which must be no less than two thirds; representatives of the government sector and qualified persons, the number of which is not more than one third. A CDC will be appointed by the ERC.

TDC means a Tambon (Sub-district) Development Committee in the areas surrounding a power plant, comprising: representatives of the people’s sector, the number of which must be no less than two thirds (one from each village or community); and representatives of other sectors, the number of which is not more than one third. A TDC will be appointed by the CDC.

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6.2 Management Categories of Power Development Funds in Designated Areas

In managing Power Development Funds in designated areas, the components and the

authority and duties of Power Development Fund committees will be based on the Fund categories, as

briefed in the following:

Fund Committee Committee Components Community Development Committee (CDC)

1. CDC members representing the people’s sector: no less than two thirds.

2. CDC members representing the government sector, and qualified persons: no more than one third, whereby:

2.1 Government sector representatives, comprising a representative selected by the concerned Provincial Governor, representatives of the Ministry of Energy (max. 2 persons), and a representative of the OERC.

2.2 Qualified persons: max. 3 persons.

In this regard, the ERC will consider appointing a Chairman, no more than two Vice-Chairpersons and other Committee Members. The OERC representative will be the Committee Member & Secretary, and a representative of the power plant in the designated area will be Assistant Secretary.

Tambon Development Committee (TDC)

1. TDC members representing the people’s sector: the number will be equal to the number of villages in a given Tambon and will be no less than two thirds of the total TDC members.

2. Other TDC members, e.g. the sub-district headman; village headmen; representatives of academic institutions, community organizations, community networks, youth councils, religious places and mass media: the number will be no more than one third of the total TDC members.

The TDC shall organize a meeting to elect its Chairman, Vice-Chairman and Secretary from the TDC members and present the TDC name list, as a whole, to the CDC Chairman for appointment.

Fund Committee Authority and Duties in Brief Community Development Committee (CDC)

1. Determine areas of eligible Fund beneficiaries. 2. Formulate and propose a strategic plan, an annual work plan and a money

allocation plan. 3. Encourage and support a survey on the impact of power plant operation to help

formulate proposals to improve the concerned designated area. 4. Encourage a survey on the needs of local residents and power plant operation

impact to serve as input for the formulation of community projects. 5. Consider and approve community projects, including monitoring the execution of

community project contracts/agreements, and disburse money for the project

19


Fund Committee Authority and Duties in Brief

implementation. 6. Supervise the account recording and report the financial status of the Power

Development Fund in the concerned designated area to the OERC, quarterly and annually.

7. Follow up, examine and evaluate the community project performance and report to the OERC.

8. Engage and appoint an auditor, including engaging persons to assist with the work execution, as deemed appropriate.

9. Publicize and disseminate information about the Power Development Fund in the designated area and its achievements to the general public.

10. Promote and support participation of various sectors in the designated area in the Fund operation, including cooperation networking with CDCs in other designated areas.

11. Appoint a sub-committee to consider or carry out any task as assigned by the CDC. 12. Supervise and carry out the operation in line with the ERC’s directives. 13. Propose relevant additional regulations to the ERC for consideration, as

necessary. 14. Perform any other task as assigned by the ERC or the OERC in order to achieve

the objectives of the management of Fund monies for a designated area. Tambon Development Committee (TDC)

1. Survey the needs of local residents and the impact of power plant operation to serve as input for the formulation of community projects.

2. Formulate a master plan for community or Tambon development for sustainable development.

3. Promote and support the formulation of community projects, by organizing public forums at Tambon or village level.

4. Follow up and evaluate the community project performance and report to the CDC.

5. Encourage provision of knowledge about the Power Development Fund to local residents in the designated area, including publicizing and disseminating information and performance of the Power Development Fund in the designated area.

6. Receive petitions and address the problems in the first instance and report the matters to the CDC.

7. Perform any other task as assigned by the CDC in order to achieve the objectives of the management of Fund monies for a designated area.

Municipality/ Tambon Administration Organization (TAO) Representatives

Develop community projects via organizing public forums at Tambon level and prepare the money disbursement plan of each project, in compliance with the annual work plan framework, approved by the ERC. In this connection, beneficiaries of funding allocation must be government agencies.

20


6.3 Recruitment of Power Development Fund Committees in Designated Areas

In order to recruit the Power Development Fund committee in a designated area, the OERC

will undertake the following:

6.3.1 Issue an OERC announcement, by and with the ERC’s consent, determining a

designated area (a list of villages surrounding a given power plant), the Fund management category and

the number of CDC members.

6.3.2 Carry out public relations activities to provide local residents and the general public

with information about the Power Development Fund and the recruitment of CDCs and TDCs, via

appropriate channels, i.e. the OERC website (www.erc.or.th), announcement posting, leaflets, posters,

banners, radio spots and local broadcasting towers in designated areas, printed matters, TV spots and

the mass media in the central and provincial areas, as deemed appropriate.

6.3.3 Liaise with government agencies for their cooperation in carrying out the

recruitment of Power Development Fund committee members in a designated area, as follows:

(1) For the recruitment of members of the Community Development Committee in the

areas surrounding a power plant (CDC), the OERC has liaised, in writing, with relevant agencies to

undertake the following:

(1.1) Recruitment of the people’s sector representatives – the District Headman,

or an equivalent government officer, in the designated area is requested to encourage village councils to

organize a public forum at village level to recruit one representative from each village, and then the

District Headman, or an equivalent government officer, shall hold a meeting among the village

representatives in that Tambon (sub-district) to select among themselves Tambon representatives, at the

number prescribed by the ERC;

(1.2) Recruitment of the government sector representatives – the Provincial

Governor, supervising the area where a concerned power plant is located, and the Permanent Secretary

of Energy are requested to consider and select representatives to be CDC members representing the

government sector, at the number prescribed by the ERC;

(1.3) Recruitment of qualified person/expert representatives – the OERC

Regional Office responsible for the area where the power plant is located will coordinate and invite the

selected CDC members representing the people’s and government sectors to a meeting in order to

propose names of qualified persons/experts and make a selection thereof to be CDC members, at the

number prescribed by the ERC.

When the recruitment of CDC members representing all concerned sectors in each

area is completed, the OERC Regional Office responsible for the area where the power plant is located

will present the outcome to the Secretary General of the OERC to further present the name list of

21

http://www.erc.or.th/


recruited CDC members, as a whole, to the ERC for consideration and appointment of a Chairman, a

Vice-Chairman and Members of the CDC.

(2) For the recruitment of members of the Tambon Development Committee in the

area surrounding a power plant (TDC), at the initial term:

(2.1) Recruitment of the people’s sector representatives – the District Headman,

or an equivalent government officer, in the designated area is requested to encourage village councils to

hold a public forum at village level to select one representative from each village; this will be conducted

on the same occasion as that of the recruitment of CDC members representing the people’s sector at the

initial term;

(2.2) Recruitment of other TDC members – the District Headman, or an

equivalent government officer, in the designated area is requested to encourage village councils to make

an announcement inviting applications to be TDC members representing other sectors, in compliance

with the method prescribed by the OERC, and present the name list of applicants together with

qualification testimonials to the District Headman, or an equivalent government officer, who will

organize a meeting of recruited village representatives of the people’s sector in order to select TDC

members representing other sectors, at the number prescribed by the ERC. In the case where TDC

members representing other sectors cannot be recruited, the recruited village representatives of the

people’s sector can, instead, propose the names of TDC members representing other sectors.

When the name list of TDC members representing all concerned sectors is

obtained, the District Headman, or an equivalent government officer, in the designated area will notify,

in writing, the name list of recruited TDC members, together with qualification testimonials, to the

OERC so that a meeting would be organized to elect a Chairman, a Vice-Chairman and a Secretary, and

then the name list of recruited TDC members, as a whole, will be presented to the CDC for

consideration and appointment of the TDC.

(3) With regard to the recruitment of municipality or Tambon Administration

Organization (TAO) representatives to manage the money of local Power Development Funds, Category

C, the OERC will liaise, in writing, with the Provincial Governor in a designated area to consider and appoint

no more than three (3) municipality or TAO representatives in the designated area to manage the

implementation under the Category C Funds.

In this connection, district headmen in designated areas will be invited by the OERC to

participate in a seminar to get a detailed explanation on the objectives and procedures of the mentioned

recruitment. Public relations campaigns at Tambon level will also be arranged to explain the

implementation to village councils in order to create their understanding. After that, the village councils

commenced disseminating the information at local level for a period of no less than 15 days prior to

22


holding their respective village or community-level forums to recruit representatives of the people’s

sector in their respective CDCs and TDCs.

6.4 Work Execution of the Committees of Local Power Development Funds

The Community Development Committees (CDC) will manage the operation of local Power

Development Funds in compliance with the ERC regulations and announcements as well as the

handbook prepared by the OERC in carrying out the following tasks:

6.4.1 Formulation of an Annual Work Plan. A CDC must formulate its annual work

plan, in line with the instructions prescribed in the OERC handbook, for submission to the Provincial

Governor supervising the area where a given power plant is located, for additional comments prior to

submission to the ERC for further consideration. As for the operation in Fiscal Year 2012, which was

the first year of the local Power Development Fund implementation, the ERC relaxed certain conditions

concerning the annual work plan formulation, i.e. a work plan for Fiscal Year 2012 could comprise at

least the following:

(1) Money allocation framework under the local Power Development Fund

management;

(2) Outcome of the survey on the needs of people in the designated area;

(3) Annual action plan; and

(4) Estimated administrative cost.

As for the formulation of annual work plans for Fiscal Years 2013-2015, the ERC

stipulated that a strategic plan be developed for Category A and B Funds, including the outcome of the

study, evaluation or research on the impact of power plant operation for Category A Funds (with

exemption for Category B Funds), so that the formulation of the annual work plans would be more

comprehensive, as stipulated under Article 35 of the Regulation of the ERC on Power Development

Fund for Development or Rehabilitation of Localities Affected by Power Plant Operation, B.E. 2553

(2010).

6.4.2 Local Power Development Fund Management. The ERC has set forth the budget

framework for the spending of local Power Development Fund money, divided into two major portions:

(1) Annual Administrative Budget of the CDC – at a maximum rate of 15% of the

allocated budget in each year, depending on the amount of allocated money, as shown in the following

table.

23


Allocated Budget Rate of Administrative

Budget (%)

Max. Accumulated Administrative Budget of Each Step

(Million Baht)

≤ 5 M Baht 15.0 0.750

> 5 – 10 M Baht 12.5 1.375

> 10 – 50 M Baht 10.0 5.375

> 50 – 100 M Baht 7.5 9.125

> 100 – 150 M Baht 5.0 11.625

> 150 M Baht 2.5 > 11.625

In this regard, the administrative budget of the CDC will comply with the

Announcement of the ERC on Administrative Cost for the Operation of the Power Development Fund

in a Designated Area, B.E. 2555 (2012), and as amended.

(2) Community Project Implementation Budget – at a rate of no less than 85% of the

allocated budget in each year. The concerned CDC or TDC (in the case of Category A Fund) must

organize a civil society forum at village or Tambon level to survey the needs of the people and allow

those who wish to propose a project to prepare the proposed community project document, pursuant to

the format prescribed by the OERC. The application for funding from the local Power Development Fund

will have to comply with the criteria framework set forth by the ERC, contributing to the following 11

aspects:

(1) enhancement of quality of life, health and well-being; (2) career development; (3) agricultural development; (4) community economy development; (5) quality of life improvement; (6) development of education, religion, local cultures and traditions; (7) community development; (8) environmental conservation and rehabilitation; (9) spending on an emergency and a relief for those in trouble;

(10) Capacity building of persons dealing with the Power Development Fund; (11) any other project and program that contributes to community development

in designated areas, as approved by the ERC.

When the presentation of community projects is completed, the TDC (in the case of

Category A Fund) will screen the proposed projects for submission to the CDC for approval, in

compliance with the criteria set forth by the ERC, by prioritizing the approved projects and

incorporating them into the annual work plan. In addition, the CDC must notify, in writing, the

outcome of community project consideration to those who presented the projects within 30 days as from

24


the date of completion of community project consideration and must publicize the outcome to inform

the general public in the designated area.

6.5 Public Participation in the Power Development Fund Operation

The OERC wishes to publicize the Power Development Fund operation and urges people

residing in surrounding areas of power plants as well as interested persons to keep abreast of detailed

information about ERC regulations and announcements, the determination of designated areas under

individual local Power Development Funds and progress of the Fund performance via the OERC

website. Local residents in designated areas can take part in managing the Fund operation via various

channels as follows:

1. Participation in a public forum at village or community level to select a village

representative to be a member of the Community Development Committee (CDC).

2. Participation in a public forum at village level that will be organized by the CDC or TDC

in each designated area in order to propose community projects to be financed by the

local Power Development Fund to ensure that the projects reflect actual needs of local

residents and contribute to the development of your community.

3. Participation in the follow-up, inspection and evaluation of the performance of the local

Fund committees as well as the spending of money from the local Funds to ensure that

the implementation is in compliance with the regulations set forth by the ERC so as to

create transparency, fairness and accountability.

25


6.6 Progress of the Establishment of Local Power Development Funds, Category A and B

To date, the OERC has presented the name lists of CDC committees to the ERC for

consideration, and appointment has been completed for 67 Funds, divided into 12 Category A Funds,

and 55 Category B Funds, as detailed in the following.

OERC Regional

Office

Province of Power Plant Location

Category A Fund 12 Funds

Category B Fund 55 Funds

1 (Chiang Mai)

1. Lampang 1. PDF: Mae Moh, Lampang Province

2 (Phitsanulok)

2. Phichit 3. Tak 4. Uttaradit 5. Kamphaeng Phet

1. PDF: A.T. Bio-Power Co., Ltd. 2. PDF: Tak Province 1 3. PDF: Sirikit Dam Power Plant,

Uttaradit Province 4. PDF: Lan Krabue Power Plant,

Kamphaeng Phet Province

3 (Nakhon Sawan)

6. Nakhon Sawan 7. Lopburi 8. Phetchabun

5. PDF: Nakhon Sawan Province 1 6. PDF: Lopburi Province 1 7. PDF: Phetchabun Province 3

4 (Khon Kaen)

9. Khon Kaen

8. PDF: Nam Phong District, Khon Kaen 9. PDF: Khon Kaen Province 1

10. PDF: Khon Kaen Province 2 11. PDF: Khon Kaen Province 4

5 (Ubon

Ratchathani)

10. Kalasin 11. Ubon Ratchathani 12. Roi-et

12. PDF: Mitr Kalasin Sugar Co., Ltd. 13. PDF: Sirindhorn Dam Power Plant,

Ubon Ratchathani Province 14. PDF: Pak Mun Dam Power Plant,

Ubon Ratchathani Province 15. PDF: Roi-et Province 1

6 (Nakhon

Ratchasima)

13. Chaiyaphum

14. Nakhon Ratchasima

15. Surin

16. PDF: Mitr Phol Bio-Power Co., Ltd. 17. PDF: Chulabhorn Dam Power Plant,

Chaiyaphum Province 18. PDF: Lam Takhong Dam Power Plant,

Nakhon Ratchasima Province 19. PDF: Nakhon Ratchasima Province 4 20. PDF: Surin Province 1 21. PDF: Surin Province 2

7 (Saraburi)

16. Saraburi 17. Sa Kaeo 18. Prachinburi

19. Phra Nakorn Si

Ayutthaya 20. Ang Thong 21. Pathum Thani

2. PDF: Saraburi Province 1 3. PDF: Gulf JP NS Co., Ltd. 4. PDF: Wang Noi Power

Plant, Phra Nakorn Si Ayutthaya Province

5. PDF: Gulf JP UT Co., Ltd.

22. PDF: TPI Polene Power Co., Ltd. 23. PDF: Saraburi Province 2 24. PDF: Sa Kaeo Province 1 25. PDF: Sa Kaeo Province 2 26. PDF: Prachinburi Province 1 27. PDF: Prachinburi Province 2 28. PDF: Phra Nakorn Si Ayutthaya

Province 2 29. PDF: Panjapol Pulp Industry Co., Ltd. 30. PDF: Phra Nakorn Si Ayutthaya

Province 4 31. PDF: Thai Carbon Black Co., Ltd. 32. PDF: Pathum Thani Province 1

26


OERC

Regional Office

Province of Power Plant Location

Category A Fund 12 Funds

Category B Fund 55 Funds

8 (Chonburi)

22. Chonburi 23. Rayong 24. Chachoengsao

6. PDF: Chonburi Province 1 7. PDF: Map Ta Phut Industrial

Estate, Rayong Province 8. PDF: Bangpakong,

Chachoengsao Province

33. PDF: Chonburi Province 2 34. PDF: Chonburi Province 3 35. PDF: Rayong Province 1 36. PDF: Rayong Province 2 37. PDF: IRPC Plc. 38. PDF: Gulf JP NNK Co., Ltd. 39. PDF: Chachoengsao Province 1

9 (Kanchanaburi)

25. Suphanburi 26. Kanchanaburi

40. PDF: Suphanburi Province 2 41. PDF: Kanchanaburi Province 2 42. PDF: Kanchanaburi Province 5 43. PDF: Kanchanaburi Province 8

10 (Ratchaburi)

27. Ratchaburi 28. Phetchaburi

9. PDF: Ratchaburi Province 1 44. PDF: Tri Energy Co., Ltd. 45. PDF: Ratchaburi Province 2 46. PDF: Kang Krajan Dam Power Plant,

Phetchaburi Province

11 (Surat Thani)

29. Nakorn Si Thammarat 30. Krabi 31. Surat Thani

10. PDF: Khanom 47. PDF: Krabi Power Plant 48. PDF: Rajjaprabha Dam Power Plant,

Surat Thani Province

12 (Songkhla)

32. Songkhla 33. Yala

11. PDF: Chana Power Plant, Songkhla Province

49. PDF: Gulf Yala Green Co., Ltd. 50. PDF: Bang Lang Dam Power Plant

and Ban Sunti Dam Power Plant, Yala Province

13 (Bangkok)

34. Samut Prakan 35. Nonthaburi 36. Bangkok

12. PDF: Samut Prakan Province 3

51. PDF: Samut Prakan 1 52. PDF: Samut Prakan 2 53. PDF: Eastern Power & Electric Co., Ltd. 54. PDF: North Bangkok Combined

Cycle Power Plant 55. PDF: Bangchak Oil Refinery, Bangkok

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7. Public Relations Activities and Exhibitions of Community Project Performance “3-Year Learning and Stepping Forward to Sustainable Development”

A showcase for the performance of community projects financed by the Power Development

Fund was organized by the OERC, illustrating the achievements of community project implementation

that have brought about sustainable benefits. The objectives were to disseminate information about the

Fund performance, to create knowledge and understanding, to exchange knowledge and experiences and

to create positive attitude towards the Fund. The general public was invited to join the event and buy

products derived from community projects in areas surrounding power plants of various occupational

groups, which was a channel to increase income of the local community. At this event, community

representatives from local Power Development Funds were given the opportunity to display their

project achievements and products. In addition, an exhibition providing knowledge about the Fund

entitled “Power Development Fund: 3-Year Learning and Stepping Forward to Sustainable

Development” was displayed during 13-15 August 2014 at Chamchuri Square Building in Bangkok.

The event consisted of three main activities:

Activity 1: Exhibition, entitled “Welcome to the Power Development Fund,” to provide

information about the background, role and duty of the Power Development Fund as well as way of life

of the community in areas surrounding a power plant.

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Activity 2: Stage Performance, “Provide Happiness to the Community Surrounding Power

Plants,” comprising folk music and dance, local culture of the community surrounding power plants,

including a panel discussion on the topic, “Does the Power Development Fund genuinely bring

happiness to the local community?” and interviews with community representatives.

Activity 3: Demonstration and Sale of Products of Local Occupational Groups as well as

booth exhibitions of local people in areas surrounding power plants under the theme, “Cherish Local

Wisdom by Buying Products of Local Community Surrounding Power Plants,” by displaying and

selling such products as local artwork, handicrafts and basketry which are famous local products of each

community.

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8. Power Development Fund Awards

In Fiscal Year 2016, the 5th year of the management of Power Development Funds in

designated areas, the OERC has launched a public relations campaign, “Power Development Fund

Awards,” to disseminate the performance of Power Development Funds in designated areas so that all

stakeholders could be informed and could properly participate in the operations of local Power

Development Funds. Importantly, this activity will help develop and improve the operation and

management of local Power Development Funds to be more efficient, having a good managerial system

with good governance, transparency, accountability as well as sustainability.

With regard to the outstanding community project competition, the consideration criteria

framework comprises five aspects, namely: 1) effectiveness, 2) efficiency, 3) impact, 4) response to the

needs, and 5) sustainability. In addition, two projects that obtain the top total scores in each region will

receive the Winner Prize and the First Runner-up, respectively. The awards are divided by region as

follows: (1) Outstanding Community Projects in the Northern Region, (2) Outstanding Community

Projects in the Central Region, (3) Outstanding Community Projects in the Eastern and Northeastern

Regions, (4) Outstanding Community Projects in the Southern and Western Regions.

8.1 10 Outstanding Power Development Fund Awards, comprising 5 Outstanding

Category A Fund Awards, and 5 Outstanding Category B Fund Awards, as follows:

Prize Outstanding Category A Fund Outstanding Category B Fund Winner (1 prize)

PDF: Chana Power Plant, Songkhla Province

PDF: IRPC Plc.

1st Runner-up (1 prize)

PDF: Mae Moh, Lampang Province PDF: Ratchaburi Electricity Generating Co., Ltd.

2nd Runner-up (1 prize)

PDF: Ratchaburi Province 1 PDF: North Bangkok Combined Cycle Power Plant

Complimentary Awards (2 prizes)

PDF: Wang Noi Power Plant, Phra Nakorn Si Ayutthaya Province

PDF: Chonburi Province 2

PDF: Chonburi Province 1 PDF: Eastern Power & Electric Co., Ltd.

8.2 3 Outstanding Performance Awards:

Prize Power Development Fund Outstanding Performance Award: Effectiveness PDF: Ratchaburi Electricity Generating Co., Ltd. Outstanding Performance Award: Stakeholders PDF: Chonburi Province 3 Outstanding Performance Award: Management PDF: Chonburi Province 3 Outstanding Performance Award: Learning and Development No awardee

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8.3 8 Outstanding Community Project Awards:

(1) Northern Region: 2 awards

Prize Project Budget (Baht) Power Development Fund

Winner Capacity Building Project: Development of Good-minded Youth in Folk Music, Ban Wiang Sawan, Moo 9

89,700 PDF: Mae Moh, Lampang Province

1st Runner-up Construction Project: Water Pump Station with an Elevated Platform

100,000 PDF: Sirikit Dam Power Plant, Uttaradit Province

(2) Central Region: 2 awards


Winner Library Project, Phraeksa School 745,000 PDF: Samut Prakan Province 1

1st Runner-up Training Project: Mushroom Cultivation and Support for Infected Mushroom Loaf Production, Moo 3, Wang Chula sub-district, Wang Noi District, Phra Nakorn Si Ayutthaya Province

277,550 PDF: Wang Noi Power Plant, Phra Nakorn Si Ayutthaya Province

(3) Eastern and Northeastern Regions: 2 awards

Prize Project Fiscal Year

Budget (Baht) Power Development Fund

Winner (1 prize)

Project of Mud Mee Silk Weaving Group, Moo 3, Muang Wan Sub-district, Nam Phong District, Khon Kaen Province

2015 92,820 PDF: Nam Phong District, Khon Kaen Province


Construction Project: Thai Traditional Medicine Building, Map Pong Tambon Health Promoting Hospital

2015 1,000,000 PDF: Chonburi Province 3

(4) Southern and Western Regions: 2 awards


Winner (1 prize)

Construction Project: Village Organic Fertilizer Plant, Moo 1, Lin Thin Sub-district

310,000 PDF: Kanchanaburi Province 8


Construction Project: Khlong Por Semi-permanent Check Dam

102,000 PDF: Rajjaprabha Dam Power Plant, Surat Thani Province

The competition results announcement and awards conferring ceremony has been

scheduled by the OERC on 9 December 2016, which is during the month of the OERC inauguration.

On this occasion, the general public is invited to participate in this activity by voting for their favorite

community project, with a chance to win the prizes which are tickets for an educational trip, totaling 10

prizes (2 tickets each). For more details, please visit the website: www.powerdevelopmentfund.com or

http://www.facebook.com/pdfaward/.

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http://www.powerdevelopmentfund.com/

http://www.facebook.com/pdfaward/


9. Contact/Coordination Pertaining to the Operation of Power

Development Funds in Designated Areas

The OERC has established 13 OERC Regional Offices to enhance its extensive work

execution, particularly in providing services to energy consumers, electricity industry operators and

interested general public, and to support the undertakings of the Ministry of Interior and the Bangkok

Metropolitan Administration concerning the recruitment of members of the Community Development

Committees and Tambon Development Committees, including following up the performance of Power

Development Funds in designated areas. Details of the location and contact of each OERC Regional

Office are given below.

OERC Regional Office Provinces under Responsibility Contact Region 1: Chiang Mai province 2nd Fl., Airport Business Park Bld., 90 Mahidol Rd., Hai-ya Sub-district, Mueang Chiang Mai District, Chiang Mai 50100

Chiang Rai, Phayao, Lampang, Lampoon, Chiang Mai and Mae Hong Son

Mr. Phromphong Wongmaneenil (Director, RO 1) Tel: 0 5320 3433-4 0 5327 1718 Fax: 0 5327 1719

Region 2: Phitsanulok province Thai Siwarat Bld., 1st Fl., 59/15 Borom Tri Lokanart 2 Rd., Nai Mueang Sub-district, Mueang District, Phitsanulok 65000

Nan, Phrae, Uttaradit, Sukhothai, Tak, Kamphaeng Phet, Phitsanulok and Pichit

Mr. Ruangchai Songsambhao (Director, RO 2) Tel: 0 5525 2924 Fax: 0 5525 2725

Region 3: Nakhon Sawan province 1045/2, 3rd Fl., Moo 10, Nakhon Sawan-Phitsanulok Rd., Nakhon Sawan Tok Sub-district, Mueang Nakhon Sawan District, Nakhon Sawan 60000

Phetchabun, Nakhon Sawan, Uthai Thani, Chai Nat, Sing Buri and Lopburi

Mr. Boon Sawadchai (Director, RO 3) Tel: 0 5622 1991-2 Fax: 0 5622 1991 ext. 105

Region 4: Khon Kaen province Kaen Nakorn Office Park Bld., 3rd Fl., 11 Srithad Prachasanti Rd., Nai Mueang Sub-district, Mueang District, Khon Kaen 40000

Nongkhai, Nakhon Phanom, Sakon Nakhon, Udon Thani, Nong Bua Lam Phu, Loei, Khon Kaen and Bueng Kan

Mr. Vinij Sriubon (Director, RO 4) Tel: 0 4322 8338-9 Fax: 0 4322 8338

Region 5: Ubon Ratchathani province 130 Klang Aa-wut Rd., Mueang District, Ubon Ratchathani 34000

Mukdahan, Kalasin, Maha Sarakham, Roi-et, Yasothorn, Amnatcharoen, Ubon Ratchathani and Si Sa Ket

Mr. Patipan Kaewrinkwa (Director, RO 5) Tel: 0 4531 2280 - 1 Fax: 0 4531 2281

Region 6: Nakhon Ratchasima province 1318/1 Suranarai Rd., Nai Mueang Sub-district, Mueang District, Nakhon Ratchasima 30000

Chaiyaphum, Nakhon Ratchasima, Burirum and Surin

__(Vacant)___ (Director, RO 6) Tel: 0 4425 7888-9 Fax: 0 4425 7892

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OERC Regional Office Provinces under Responsibility Contact

Region 7: Saraburi province 12/1 Mittraphab Rd., Pak Priew Sub-district, Mueang District, Saraburi 18000

Ang Thong, Phra Nakorn Si Ayutthaya, Saraburi, Pathum Thani, Nakorn Nayok, Prachinburi and Sa Kaeo

Mr. Meca Chaimanagarn (Director, RO 7) Tel: 0 3622 3048-9 Fax: 0 3622 3019

Region 8: Chonburi province 139 Moo 1, Phraya Sajja Rd., Samet Sub-district, Mueang Chonburi District, Chonburi 20000

Chachoengsao, Chonburi, Rayong, Chanthaburi and Trad

Mr. Songkran Kritalux (Director, RO 8) Tel: 0 3811 3487-9 Fax: 0 3811 3486

Region 9: Kanchanaburi province 284/87 Saengchuto Rd., Ban Neua Sub-district, Mueang Kanchanaburi District, Kanchanaburi 71000

Kanchanaburi, Suphanburi, Nakorn Pathom and Samut Sakhon

Mr. Nopporn Subhensawang (Director, RO 9) Tel: 0 3451 7505 Fax: 0 3451 7506

Region 10: Ratchaburi province 49/4 Phetkasem Rd. (old route), Na Mueang Sub-district, Mueang District, Ratchaburi 70000

Ratchaburi, Samut Songkhram, Phetchaburi, Prachuap Khiri Khan, Chumphon and Ranong

Mr. Komsorn Pornsopon (Director, RO 10) 9/ Tel: 0 3232 8503-4 Fax: 0 3232 8505

Region 11: Surat Thani province P.C. Tower, 2nd Fl., 91/1 Moo 1, Kanchanawithee Rd., Bang Kung Sub-district, Mueang District, Surat Thani 84000

Surat Thani, Phang-nga, Phuket, Krabi, Nakorn Si Thammarat and Trang

Mr. Meesak Dacharatanawichai (Director, RO 11) Tel/Fax: 0 7728 5312-3

Region 12: Songkhla province General Prem Tinsulanonda Historical Park Foundation Bld., 888, Moo 2, Phawong Sub-district, Mueang Songkhla District, Songkhla 90100

Phatthalung, Satun, Songkhla, Pattani, Yala and Narathiwat

Mr. Werasak Werathammo (Director, RO 12) Tel: 0 7433 0309 - 10 Fax: 0 7433 0309 -10 ext. 18

Region 13: Bangkok 18/23 Wish House Bld., 1st Fl., Moo 10, Nakhon-in Rd., Talat Khwan Sub-district, Mueang District, Nonthaburi 11000

Bangkok, Nonthaburi and Samut Prakan

Mr. Pairaj Suwanaratana (Director, RO 13) Tel: 0 2525 2544 Fax: 0 2525 2504

Remarks: 9/Mr. Komsorn Pornsopon was appointed Director of RO 10 on 28 November 2016.

For more information, please contact: Office of the Energy Regulatory Commission Power Development Fund Management Department 319 Chamchuri Square Building, 20th Floor Phaya Thai Road, Pathumwan Sub-district Pathumwan District, Bangkok 10330 Tel: 02 207 3599 Fax: 02 207 3572 E-mail: [email protected] http:\\www.erc.or.th Facebook.com/powerfundpage

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