RATCH's economic values in 2021

Item Value (Million Baht)
Economic value generated
Revenue from sales/service and leases contracts 37,326.78
Profit sharing from associates and joint ventures 5,902.40
Dividend income 58.83
Other revenues 1,005.28
Economic value distributed to stakeholders
Fuel expenses 26,892.61
Operations and maintenance expenses 1,675.26
Cost of maintenance and parts 1,354.98
Power plant insurance premium 440.10
Administrative expenses and payments 1,701.84
Financial cost 1,868.07
Taxes payment* 615.02
Fees for specialized services 297.71
Audit fee 18.16
Local taxes payment** 2.68
Dividend payments 3,480.00
Community and social investment 179.99
Economic value received by RATCH
RATCH's profits 7,772.02

* Inclusive of corporate taxes, withholding tax, and special business tax of RATCH and subsidiaries in Thailand

** Local taxes are the taxes collected by local administrative offices to finance local development projects. Local taxes are subjected to local administrative offices' consideration and are not remitted to the government. They are land and building tax, local development tax, and signboard tax.

Revenue Structure

The company's revenues derived from three main sources as shown below;


Financial ratios

Item Unit 2021 2020 2019
Current ratio (times) 1 2.69 2.70
Profit to total revenue (excluding fuel cost) (%) 40.30 37.03 38.90
Return on equity ratio (%) 11.57 9.98 10.21
Return on total assets ratio (%) 7.10 7.24 8.33
EBITDA to total assets (%) 8.74 9.10 9.92
Total debt to equity ratio (times) 0.99 0.85 0.69
Net debt to equity ratio (times) 0.64 0.55 0.38

RATCH Group Public Company Limited chiefly adheres to the Code of Conduct's guidelines in managing the relationships with suppliers, a crucial part in the supply chain. This is due to the fact that the power generation business requires huge investments and takes years for completion, from business development to construction and commercial operations. In each stage, the Company needs to work with a number of suppliers to ensure project success.

Significant suppliers in each stage

Supplier qualification criteria


  • No record of all forms of corruption
  • No record of job desertion

Conflict of interest

  • Executive/Director hold no position in a competing bidder
  • No personal relationship with RATCH's executive/employees

Environmental management and accountability

  • Certification on environmental standards or compliance
  • Compliance with environmental law/regulations/process

Labor, community and social care

  • Zero employment of child or illegal labor
  • Respect for worker's human rights/No infringement to basic human rights
  • Operate with social care, causing no impact on nearby communities

Management of Suppliers' Risks

RATCH assessed suppliers' risk factors that may create spill-over effects on the Company and the results were the basis of the formation of risk management, preventive and mitigating measures.

Dimension Suppliers' risks Preventive measures Performance in 2021
Economic Suppliers' financial status and stability
  • Require collateral/bank guarantee placement
  • Probe financial track record dating back 2 years and the qualification on governance to examine job desertion and blacklisting history
  • Suppliers ably provided/warranties/ guarantee as required.
  • Suppliers showed no history of job desertion.
Collusion and conflict of interest
  • Set supplier qualification assessment criteria
  • Inquire suppliers' history from previous hirers
  • Examine the company Certificate
  • Include them in supplier blacklist if finding irregularities
No collusion case or suppliers with conflicts of interest
Job desertion/delivery failure/substandard products or services
  • Set penalties
  • Confiscate guarantee
  • Cancel contract
  • File lawsuits
  • Include them in supplier blacklist if they fail to honor contracts
1 supplier could not meet the delivery schedule and was included in the blacklist
Suppliers with contract worth more than Baht 10 million who fail to honor contracts
  • Require collateral placement
  • Inspect compliance with contract and delivery
  • Set a condition to make payment in instalments, based on work progress
  • Make a company visit
34 suppliers of RATCH and subsidiaries-RGCO, RCO and RAC were awarded contracts worth more than Baht 10 million and all honored delivery schedules.
Social Employment of child-illegal labor/ violation of human rights or use of forced labor
  • Set supplier qualification assessment criteria
  • Make a company visit
  • Require reporting on workers' essential information
  • Require registration documents for migrant workers
  • Include them in the blacklist in case of violations
No supplier violated labor regulations.
Workers' safety and occupational health
  • Require orientation and safety-related risk assessment prior to start of work
  • Specify use and provision of safety equipment in contracts
  • Demand insurance for workers involved with high-risk tasks
Suppliers assessed their risks as required.
Social/Economic Suppliers' sub-contractor management
  • Require job risk assessment
  • Set ESG conditions on sub-contractors in the main contract with main contractors
  • Monitor compliance with the Company's safety measures
The 6 sub-contractors followed the Company's rules.
Environment Suppliers' environmental and waste management
  • Make it a prerequisite in supplier qualification assessment
  • Make it part of the contracts and monitor compliance
  • Make a company visit
RATCH included environmental management condition in the contracts awarded to all suppliers that demonstrated environmental risks. Five suppliers were certified for the ISO 14001/EIA, environmental standards.

Management of Procurement Contracts

The contract management starts immediately after signing and run until the job inspection and delivery. The Procurement Department coordinates with the requesting unit in monitoring the contractual parties' compliances.

Supplier Performance Assessment

After the delivery of goods or services, the Procurement Department and the requesting unit will assess suppliers' performance with focus on quality, volume, delivery and compliance with specified criteria. Suppliers that passed the assessment are included in the Supplier Registry, which is the basis for the consideration of future contracts. Supplier that failed the assessment will receive recommendations from RATCH, If the recommendations are rejected, the suppliers will be included in the blacklist.

Supplier Classification

RATCH's suppliers are classified into five groups based on following criteria:

Electricity is the prime product of RATCH Group, contributing 95.5 percent of the group's revenue. As such, RATCH is determined to address customer needs and expectations accordingly to power purchase agreements while maintaining generation efficiency for optimized energy utilization and least impacts on the environment and community. Once all goals are achieved, the group's product will be environmental-friendly. RATCH sets forth in the Code of Conducts as Treatment of customer's guidelines as follows:

Code of Conduct
Treatment of customer
  • Produce and deliver quality products and services with responsibility and determination to continuously raise standards.
  • Arrange the system and procedure through which customers can file complaints about products and services, so that customer demands are quickly addressed.
  • Strictly comply with customers' conditions and inform customers if the conditions cannot be fulfilled so as to explore mutual solutions.
  • Produce quality products and services with responsibility to the environment and community.
  • Safekeep customer confidential information and do not use the information for the benefit of themselves or those involved.
  • Disclose complete and accurate information about products and services without distorting facts.
  • Do not ask for, accept or pay any illegal benefits while dealing with customers.
  • Hold regular discussions on production plan and approach as well as customer demands.
  • Maintain power plants' equivalent availability factor, trustworthiness and heat rate as specified in contracts.
  • Have power plants prepared with quality maintenance as scheduled, to meet customer demands in terms of quantity and quality.
  • Produce electric power with the process that does not cause impacts on the environment and community, as required by laws and EIA; and prepare GHG Registry for carbon footprint assessment as well as greenhouse gas emission reduction target.
  • Respect to customer confidentiality and do not use the information for wrongful benefits. In case the information shall be disclosed by legal orders, customers shall be always informed and requested for approval in writing.
  • Establish a communications channel that allows customers to file recommendations and issues of concerns and collaboration in problem solving.
  • Conduct a customer satisfaction survey and use the results as the basis for improvement for optimized effectiveness as well as information disclosure.
Goal Performance in 2021
Economic dimension
  • Deliver products in full as specified in Power Purchase Agreement (PPA).
  • Maintain Equivalent Availability Factor (EAF) and Heat Rate as specified in PPA.
  • Set the limit of penalties incurring from failure to honor contractual agreements.
  • Power plants fully delivered electric power accordingly to the Contracted Availability Hour (CAH).
  • EAF and Heat Rate were better than required.
  • Ratchaburi Power Plant's average penalties were better than the annual target.
Environmental dimension
  • Production-based pollutant emissions are under target or stay within legal limits.
  • Production-based pollutant emissions stayed within legal limits and EIA measures.
Social dimension
  • No complaint from community regarding to environmental issues caused by the electricity production process.
  • No complaint on violation of confidentiality agreements.
  • Neighboring communities filed no complaint on environmental issues.
  • There was no complaint on violation of confidentiality agreements.

Approach to create memorable customer experience

Project construction management

RATCH's Project Development Function is tasked to manage under-construction projects and monitor their progress against the construction plan. It also supervises progresses in budget management, risk management, conditions in the power purchase agreements and compliance with legal requirements. Strict supervision is required so that the construction works and commissioning are completed in scheduled commercial operations. In 2021, under-construction projects occupied combined capacity of 1,003.06 megawatts.

Management of Power Purchase Agreements

As EGAT is a major customer that takes up 78 percent of total output, all power plants put an emphasis on the management of power purchase agreements to fulfil the customer's demand in terms of quantity and quality. The power plants' revenue reaped from power supply to EGAT was generated chiefly by:

  1. Availability Payment (AP) concerning the availability of demanded supply.
  2. Energy Payment (EP) concerning contractual energy and heat rate efficiency.

Power Generation Efficiency Factors

Availability Reliability Heat Rate
  • Crucial to customer expectation
  • Target availability is set in line with the Contracted Availability Hour (CAH).
  • Inability to maintain contractual availability will result in penalties.
  • Reliability refers to the number of operating hours against unplanned outage hours.
  • In power purchase agreements, unplanned outage hour is set at 3-5 percent of contracted availability hour.
  • Unplanned outage hour is a key factor to determine availability payment.
  • Heat rate reflects customers' cost of electricity.
  • Heat rate is specified in PPAs (covering the amount of energy used to generate one kilowatt-hour (kWh)).
  • Low heat rate indicates high efficiency.
  • Production efficiency is maintained for optimized resource utilization.

Penalty Management

Penalties reflect customer satisfaction. Penalties also reflect power plants' efficiency management. To avoid penalties, hours of outage time must be maintained within contractual agreements and the outage must not affect the national electricity system or customers' operation.

In 2021, Ratchaburi Power Plant assessed production efficiency, taking into consideration the capacity of key machinery and equipment accordingly to their ages. After the analysis on the maximum Availability Payment, the penalty ceiling was capped at 0.64 percent of Expected Annual Availability Payment.

In the year, the Availability Payment was successfully maintained within target, thus keeping penalties within the pre-set ceiling.

Communications and customer engagement

RATCH's power plants schedule meetings to hear customers' opinions and suggestions so that they can operate accordingly to customer expectations. Issues of concern and obstacles are discussed for prompt actions. On the issues that need lengthy improvements, both parties brainstorm for solutions. The resolutions will guide power plants on how to improve their operations and better meet customer expectations.

Method / Platform Customer / Stakeholder Frequency Issues in 2021 / Target
Ratchaburi Power Plant
Meeting EGAT executives At least 6 times a year (depending on incidents in the year) Discuss issues of concern in PPA and clarify operational approach for mutual understanding
Operational-level officers At least 6 times a year (depending on incidents in the year)
Seminar Customers and suppliers None, due to COVID-19 outbreak Exchange knowledge on the care and maintenance of machinery efficiency as well as production planning
Social activity Customers' executive-level and operational-level representatives Build good relationships through engagement in social activities
Nava Nakorn Power Plant
Meeting EGAT executives Once a year or more (depending on the issues that occur each year) Discuss contractual issues of concern and production improvement approaches
Industrial customers' executives Twice a year or more (depending on the issues that occur each year) Discuss issues and acknowledge customers' demands to provide production improvement approaches
Meeting EGAT officers Once a year or more (depending on the issues that occur each year) Discuss on contractual agreements
Industrial customers' operational officers Four times a year (depending on the issues that occur each year) Discuss on contractual agreements
Berkprai Cogeneration Power Plant
Meeting EGAT executives Once a year Talk about 2022 plan of dispatch and supply guiding for generation and distribution planning
Industrial customers' executives Discuss on measures of electricity and steam distribution
Meeting EGAT officers Discuss on measures of lowering voltage of the grid during New Year's holidays in 2022
Industrial customers' operational officers Discuss on customers' planning of power and steam purchase, as well as maintenance schedule
RATCH Cogeneration Power Plant
Meeting EGAT executives Twice a year Discuss issues of concern and production improvement approaches
Industrial customers' executives Once a month Discuss issues of concern and production improvement approaches
Meeting EGAT officers Twice a year Discuss operational approach for mutual understanding in contractual agreements
Industrial customers' operational officers Once a month Discuss operational approach for mutual understanding in contractual agreements