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EC Joint Action
 

EC Joint Action

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Presentation to Edita Bueno, NEA Administrator and other NEA executives

Presentation to Edita Bueno, NEA Administrator and other NEA executives

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    EC Joint Action EC Joint Action Presentation Transcript

    • Power Supply Joint-Action Nick Nichols Viking Logarta 1
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    • To Download a copy of Report, go here: http://drop.io/3mitlvk# Philippine Power Sector Blog http://asianenergyadvisors.com Email: nick@asianenergyadvisors.com viking@asianenergyadvisors.com 4
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    • What ECs Pay NPC For Cor. Agham Rd. Power Out of the And and Quezon Ave. Generator 7
    • What ECs Pay NPC For Planning Procurement Power Out of the Generator Contract Dispatch Management Services 8
    • Under EPIRA, ECs will pay IPP for: Power Out of the Generator 9
    • Planning Procurement You have to do all of these ... WESM Contract Participation Management & Dispatch 10
    • ... To Get This Power Out of the Generator 11
    • Procurement Process WESM Contract Participation Management & Dispatch 12
    • Shifting these costs to ECs need not add costs to ratepayers 13
    • But we can’t have a mini NPC at each EC 14
    • Fundamental Drivers Bargaining Power Shared Services (to lower costs) Procure expertise in short supply 15
    • Two Models Joint Services Power Supply Cooperative 16
    • Bigger roadblocks to establishing Supply Cooperative But Joint Services implementation facer greater challenges in conducting power supply procurement 17
    • Joint Services • Not empowered to buy and sell power • Acts as agent • Facilitates conduct of power supply activities • Could be a consortium of EC or outsourced to a private sector firm 18
    • Joint Services Problems • Coordinated procurement mechanics complex for robust supply portfolio • Juggle 1-to-1 allocations of IPP products • IPPs continue to price offers based on fractured nature of ECs • Doesn’t have “sole obligation” to procure 19
    • Supply Cooperative • Juridical entity that can buy and sell power • Can perform Planning, Procurement, Contract Management, Dispatch 20
    • Supply Cooperative Juridical Entity Issues • Wholesale Aggregator? - 5 Yrs 21
    • Supply Cooperative Juridical Entity Issues • Wholesale Aggregator? - So far all are SEC. Not-for-profits? 22
    • Supply Cooperative Juridical Entity Issues • Wholesale Aggregator? - Under EPIRA it’s a Generator Sector entity thus subject to cross-ownership and anti-competitive rules 23
    • Supply Cooperative Juridical Entity Issues • Wholesale Aggregator? - ECs must procure under ERC’s competitive solicitation guidelines 24
    • Why Full-Requirements Contracts may be important 25
    • Why Full-Requirements Contracts may be important Open Access Considerations 25
    • Sales for Resale Issues • Under EPIRA, Sales for Resale are not price-regulated by ERC 26
    • Cost Recovery Issues • Under Joint Services - no roadmap for cost recovery by DUs & it’s not in the “benchmarks” • Under Supply Cooperative - more like NPC. Except - NPC’s tariffs were regulated. 27
    • Special Nature of Supply Cooperative • Supply Cooperative = joint action extension of ECs own obligation to procure competitively • Supply Cooperative undertakes competitive solicitation. EC members should be relieved of obligation • Sales for Resale are not regulated under EPIRA. What is regulatory framework? 28
    • Transitioning to Supply Co-op - Work to be done • Legal & Regulatory, Consultations --> Appropriate juridical entity • ERC, Congressional, SEC? Processes • Charter, governance issues, licenses • Staffing Plan, Financing Plan, Action Plan • Can’t expect first regional group to 29
    • Photo Credit Hubble Space Telescope, photo PR96-27B by the European Space Agency and NASA http://grin.hq.nasa.gov/BROWSE/gallaxies_3.html Emission nebula NGC 604 lies in a spiral arm of galaxy M33, 2.7 million light- years away in the constellation Triangulum. This is a site where stars are being born. 30