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RATCH’s economic values in 2020

RATCH’s revenue is classified into 4 main categories:

1. Revenue from sales of electricity generated by subsidiaries

  • Ratchaburi Electricity Generating Company Limited, an IPP which operates Ratchaburi Power Plant and Tri Energy Power Plant that boasted 4,365 MW in combined installed capacity
  • RATCH Cogeneration Company Limited, a subsidiary that operates a SPP power plant with 119.15 MW in installed capacity
  • RATCH-Australia Corporation Pty Ltd

2. Revenue from finance lease, or the availability payment in the forms of loans and shareholders’ returns, booked at effective interest rates method accordingly to Thai Financial Reporting Interpretation Committee standard No. 4 (TFRIC 4).

3. Revenue from profit sharing in joint ventures in electricity generation, energy-related and infrastructure businesses

4. Other revenues comprising interest income and dividend from EDL-Generation Public Company

More Info : Company Structure

RATCH gave importance to shared value partnerships in its 2020 investment activities covering all business areas – electricity generation, infrastructure and energy-related businesses, as the value chain encompassed service users or small customers. In service industries, customer expectations must be taken into consideration in the formulation of customer relationship management guidelines and a communications plan to achieve what customers demand.

Stakeholders in the value chain

Supply Chain Management Approach

RATCH’s operations are carried out in 4 stages: project development, construction, production/ service provision, and business termination. The key stakeholders in the four stages’ supply chain who influence the Company’s achievements are business partners, suppliers, community and the environment. The following guidelines are in place to manage the relationships with each stakeholder:

It is a great challenge for all companies to churn out products and services that meet customer expectations in the rapidly-changing context. It is even more challenging for a company, like RATCH, that is diversifying from energy business to infrastructure and energy-related businesses as in whatever we do, customers are considered key stakeholders in our value chain who have contributed to our sustainable growth.

Management of power purchase agreements

Of total electric power generted by RATCH’s power plants, over 87 percent was sold to Electricity Generating Authority of Thailand. As such, the management of the power purchase agreements with EGAT is significant to the Company’s revenue management.

Guidelines on the management of key contractual specifications