Page 103 - PEA_AnnualReport_2016

3.14 Deferred revenues
3.14.1 Contributions for constructing electricity distributing systems represent cash collected from
people who request to use the electricity in order to reduce the burden of Provincial Electricity Authority for
construction of the electricity distributing systems. Ownership of the systems including responsibility for
maintenance and repair belong to Provincial Electricity Authority. Such contributions are presented as deferred
revenues in the statements of fnancial position and recognized as revenues at the rate of 5 per annum when the
construction is completed (the rate is equal to the depreciation rate of Provincial Electricity Authority’s electricity
distributing system assets).
3.14.2 Contribution revenues represent assets received from donation which are used in operations.
Most of such assets are electricity distribution systems that the electricity users donate to Provincial Electricity Authority,
which Provincial Electricity Authority is responsible for maintenance. Such assets are presented as deferred
revenues from acquisition of donated assets in the statements of fnancial position and recognized as revenues
at the rate in accordance with depreciation rates of such assets over their useful lives.
Assets received from donation which are not used in operations are recognized as other non-
operating revenues in the statements of comprehensive income in the period of acquisition.

3.1 .3 Contribution revenues from foreign fnancial institutions represent contributions from foreign
fnancial institutions in form of interest discount to be used for various purposes of rovincial lectricity uthority.
Such revenues are presented as deferred revenues in the statements of fnancial position and recognized as
revenues based on the actual amount of expenses incurred.
3.14.4 Deferred revenues from rental represent rental income which Provincial Electricity Authority
has received in advance from third parties whom rent the raw lands of Provincial Electricity Authority. And,
deferred revenues will be recognized as rental income from investment property over the lease period.

3.15 Electricity usage guarantee
Electricity usage guarantee is the money that electricity users deposit to Provincial Electricity Authority for
guarantee of electricity usage. Provincial Electricity Authority deposits into the bank account named “Electricity Usage

Guarantee Fund” to reserve fund for refunding of electricity usage guarantee to electricity users. Any interest
income earned is separately deposited in the bank account named “Interest from Electricity Usage Guarantee
Fund.” Provincial Electricity Authority will use interest of the fund to repaid as interest on deposit for electricity
usage guarantee to the electricity users according to the requirement of the Energy Regulatory Commission and
will use in activities for public interests and or benefcial activities for electricity users.
Provincial Electricity Authority has set the Regulation on Supervision of Electricity Usage Guarantee Fund,
B.E.2557 (2014) and appointed the committee which is responsible for supervising and controlling an operation
of Electricity Usage Guarantee Fund and interest from Electricity Usage Guarantee Fund. Provincial Electricity
Authority has to made fund transfer at the amount equal to the net increase in electricity usage guarantee for
each month to the lectricity sage uarantee und account. In case of working capital defciency or liquidity
diffculty, rovincial lectricity uthority can use the electricity usage guarantee fund as a working capital under
consideration and approval of the Board of Directors of Provincial Electricity Authority. Then, Provincial Electricity
Authority will be required to repay to electricity usage guarantee fund for not less than Baht 100 million each
month by depositing into the “Electricity Usage Guarantee Fund” account until the amount is fully covered. Also,

SMART PEA 103
Annual Report 2016 Provincial Electricity Authority