Clear-Cut Policy Sought on IPP Management Portfolio

Article excerpt

Policymakers are being pressed on a more clear-cut policy on the role that the proposed Independent Power Producer Administrators (IPPAs) would be assuming in the operations of the deregulated electricity market.

Some of the issues being thrown their way are: If the IPPAs would be managing portfolio of power plants based on fuel types; or regional groupings, or if there are other considerations that would come into play.

It was explained that the IPPAs would handle the transaction, primarily in the biddings of the NPC-contracted IPPs with the Wholesale Electricity Spot Market.

"There are issues that we still want to be clarified of," noted Philippine Independent Power Producers Association president Ernesto B. Pantangco, confirming the questions already raised by other market players.

The Power Sector Assets and Liabilities Management Corporation (PSALM) is eyeing to appoint the IPPAs, through a competitive bidding selection, by early next year. The government noted that it would be wooing international power industry players and traders to be engaged as IPP administrators.

In Luzon alone, at least four IPPAs are expected to be tapped to manage NPCs universe of IPPs in the countrys largest island grid.

The Electric Power Industry Reform Act mandates that the privatization of the IPP contracts shall be done by contracting out the management of the off-take obligations of PSALM, as transferred from NPC, on the contracts with the private energy producers to IPPAs.

It was proposed that the IPPAs would become responsible for administering the IPP contracts and selling the energy output of their plants. …