PTT is affected by 6.5 billion baht by holding up electricity costs, preparing to dispute shortfall.

Bangkok, PTT announces the impact of the Cabinet's resolution on measures to reduce the burden of electricity costs totaling 6.5 billion baht, preparing to file a lawsuit with the Administrative Court. or submit to the Attorney General in the case of a shortfall of 4.3 billion baht PTT Public Company Limited informed the Stock Exchange of Thailand on January 12, 2024, to clarify the facts regarding Cabinet resolution on December 19, 2023 regarding measures to reduce the burden of electricity costs. This will affect PTT's operating results, consisting of (1) adjusting the natural gas price structure (2) passing on natural gas prices in the Gulf of Thailand. In the case that the producer is unable to deliver gas according to the conditions of the gas purchase contract ('Shortfall') by restructuring the price of gas. According to the above measures, the cost of the gas separation plant will be reduced. Change from gas in the Gulf of Thailand is the average cost of gas from all sources, including the Gulf of Th ailand, Burma, and liquefied natural gas. (LiquefiedNatural Gas: LNG) ('Pool Gas') affects the operating costs of the gas separation plant business. to be adjusted higher Except for liquefied petroleum gas used as fuel (LPG) in the country. These measures It is a short-term measure until the gas price structure is determined. Officially by the Energy Regulatory Commission ('ERC') has been completed. From the preliminary estimate of the impact During January - April 2024, it will affect the overall operations of PTT's gas business to decrease by approximately 6,500 million baht. PTT has planned to find measures to reduce the impacts, such as adjusting the operating plan of the gas separation plant. (Optimization) Proposing guidelines for LNG procurement to achieve the electricity price framework target according to government policy, including PTT will discuss with the Ministry of Energy about the impacts that occur from adjusting the gas price structure. Overall in every aspect to find appropriate approache s together However, in the shortfall section, the Energy Regulatory Commission has ordered that PTT calculated the price of Pool Gas incorrectly and ordered PTT to take the shortfall results from October 2020 - December 2022, with a total value of approximately 4,300 million baht, into the calculation. As for the price of Pool Gas, PTT believes that PTT has calculated the price of Pool Gas correctly and in accordance with the resolutions of the National Energy Policy Committee ('NEPC') and related ERC announcements, including being correct. It had always been required to comply with the gas sales contract, so PTT filed an appeal with the Energy Regulatory Commission. Later, it appeared that the Energy Regulatory Commission issued a decision to dismiss PTT's appeal, directing PTT to comply with the order immediately. And if PTT does not agree with the ERC's decision, PTT has the right to file a lawsuit with the Administrative Court. or submit a matter to the Office of the Attorney General in accordance with t he regulations of the Office of the Prime Minister regarding the arbitration of disputes between government agencies and legal proceedings, B.E. 2018, within 90 days from the date of knowing the decision of the Office of the Attorney General The Energy Regulatory Commission and the PTT Board of Directors held a special meeting. No. 1/2024 on January 12, 2024, therefore, it was resolved to approve PTT to comply with the ERC's appeal decision. PTT will consider the course of action or the exercise of necessary legal rights. and continue to be appropriate . Source: Thai News Agency