ec joint action
DESCRIPTION
Presentation to Edita Bueno, NEA Administrator and other NEA executivesTRANSCRIPT
Power Supply Joint-Action
Nick NicholsViking Logarta
1
2
3
To Download a copy of Report, go here:http://drop.io/3mitlvk#
Philippine Power Sector Bloghttp://asianenergyadvisors.com
Email:[email protected]
4
5
6
What ECs Pay NPC For
Power Out of the Generator
Cor. Agham Rd. and Quezon Ave. And
7
What ECs Pay NPC For
Planning Procurement
ContractManagement
Dispatch Services
Power Out of the Generator
8
Under EPIRA, ECs will pay IPP for:
Power Out of the Generator
9
Planning Procurement
ContractManagement
WESM Participation & Dispatch
You have to do all of these ...
10
... To Get This
Power Out of the Generator
11
ContractManagement
WESM Participation & Dispatch
Procurement Process
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
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.
Hubble Space Telescope, photo PR96-27Bby the European Space Agency and NASAhttp://grin.hq.nasa.gov/BROWSE/gallaxies_3.html
30