New plant owner FGHPC to trade Pantabangan-Masiway power output at WESM

23 Nov 2006

The electricity generated by the 112-megawatt Pantabangan-Masiway hydroelectric power complex in Nueva Ecija is now being traded in the wholesale electricity spot market (WESM) by its new owner, First Gen Hydro Power Corporation (FGHPC).

Last 17 November, the Power Sector Assets and Liabilities Management Corporation (PSALM) turned over control and possession of the Pantabangan-Masiway facility to FGHPC. "Consequently, all trading activities related to the power generated by the Pantabangan-Masiway at WESM will now be the sole right and obligation of FGHPC," said PSALM President Nieves L. Osorio.

After the turnover, PSALM issued a certification addressed to WESM operator Philippine Electricity Market Corporation facilitating "the transfer of the corresponding rights and obligations relative to the Pantabangan-Masiway power facility from National Power Corporation to FGHPC." The certification was signed by Ms. Osorio.

"With the successful auction and turnover of the Pantabangan-Masiway power complex, more investors will consider participating in our privatization efforts, and eventually contribute to the ongoing restructuring of the Philippine power sector," Ms. Osorio said.

Prior to the turnover of the Nueva Ecija power facility to FGHPC, the sale of its generated power to the WESM was the responsibility of National Power.

PSALM and National Power previously agreed that while PSALM would handle the trading activities of the National Power-Independent Power Producers (IPPs), National Power would take care of the trading for its own power plants. PSALM, for its part, will eventually relinquish its role as trader in the spot market and pass this task to IPP administrators.

The selection of IPPAs, like the present privatization structure for the National Power generation assets, will be done through public bidding. The IPP plants located in Luzon will be bid out to prospective IPPAs. The WESM initially covers the Luzon Grid only.

Strategic Communications and Partnership Division
Tel. No. (632) 9029067