03 Aug 2005
The Power Sector Assets and Liabilities Management Corporation (PSALM) and the National Power Corporation (NPC) recently conducted two dialogues in the Mindanao grid, specifically in Cagayan de Oro and Davao City, to successfully complete a nationwide “Customers’ Forum on Electricity Industry Developments.” The series of forums aimed to update electricity consumers on the latest developments in the power industry, including upcoming reforms.
“We recognize the vital role, support and responsibility that our power customers (nationwide) have in fast-tracking the reforms that the government is pushing. This is the primary reason we wanted to sit down with them and discuss their concerns, specific to the areas where they operate,” said Froilan A. Tampinco, PSALM vice president for asset management and electricity market. “We are all stakeholders in this business whose ultimate goal is to overcome problems that beset the country, particularly the power sector, to, hopefully, bring about a better economic scenario.”
The forum tackled diverse topics, including updates on NPC’s recently approved power rates and billing systems under the Time-of-Use (TOU) scheme. Also discussed was the TOU meter downloading validation and processing presented by the National Transmission Corporation.
The forum participants were updated on the wholesale electricity spot market and got a glimpse of how the power trading mechanisms would operate when open access is implemented.
The discussion also dwelt on the contract for the supply of electric energy, the transition supply contracts (TSCs), and the corresponding customer load allocations of these contracts to generating plants.
Tampinco asked distribution utilities and large power consumers to secure their supply contracts with NPC, saying that this would boost the government’s power reform efforts and ensure a stable electricity supply throughout the country in the coming years.
He pointed out that these contracts would set the tone for a more successful and profitable privatization of NPC generation plants by adding value to the assets to be disposed, and effectively reducing various speculations of prospective investors in the Philippine power industry.
“The general public can be assured that prices of electricity will remain stable during this transitory period,” said Tampinco. “Of course, with the success of each privatization, our tax burden will ease as NPC’s debts are subsequently reduced.”
Section 67 of the Electric Power Industry Reform Act requires NPC to seek the approval of the Energy Regulatory Commission for TSCs negotiated with distribution utilities that contain the terms and conditions of electricity supply in preparation for the implementation of open access. PSALM is assisting NPC in this regard.
The approved TSCs will be assigned to government-owned generators and will subsequently be offered together with the power plants that will be privatized.
The NPC-PSALM forum started last May in Los Baños, Laguna for the Southern Luzon leg. In June, discussions were held in Cabanatuan City and San Fernando, La Union for the Central and Northern Luzon clients. Last July 7, a forum was conducted in Cebu City for the Visayas grid customers while the Cagayan de oro and Davao City forums were held on July 19 and 21, respectively.
Strategic Communications and Partnership Division |