consultation with spug dus on power supply agreement (psa)

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Department Of Energy Department Of Energy National Power Corporation National Power Corporation National Electrification National Electrification Administration Administration

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Department Of Energy. National Power Corporation. National Electrification Administration. Consultation with SPUG DUs on Power Supply Agreement (PSA). PROGRAM. Invocation Recognition of Participants Opening Remarks Messages DOE NPC-SPUG Mindanao NEA Overview PSA Template Timeline - PowerPoint PPT Presentation

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Page 1: Consultation with SPUG DUs  on Power Supply Agreement (PSA)

Department Of EnergyDepartment Of EnergyNational Power CorporationNational Power Corporation

National Electrification AdministrationNational Electrification Administration

Page 2: Consultation with SPUG DUs  on Power Supply Agreement (PSA)

PROGRAM

InvocationRecognition of ParticipantsOpening RemarksMessages

DOENPC-SPUG MindanaoNEA

OverviewPSA TemplateTimelineClosing Remarks

Page 3: Consultation with SPUG DUs  on Power Supply Agreement (PSA)

Execution of PSA between NPC and DUs

Relationship should be made legal and binding Enhance system reliability Firm up subsidy allocation for OPEX and CAPEX

Page 4: Consultation with SPUG DUs  on Power Supply Agreement (PSA)

DOE Remarks“professionalize” the electric industryOn-going PhP 0.30/kwh reduction and 3% prompt

payment discount should have a legal basisPSALM-NPC separation of books: must immediately

implement transfer of booksSPUG as residual of NPCSPUG is being subsidized by the mainland grid

revenues and UC-MECOA is already looking at SPUG operations

especially on the rate reduction and PPD since these are taxpayers money

Page 5: Consultation with SPUG DUs  on Power Supply Agreement (PSA)

SPUG Existing Areas

105 plants in 86 areas nationwide77 island grids and 9 isolated grids 44 DUs covered

23 in Luzon 10 in Visayas 11 in Mindanao

13 DUs with signed PSA with NPC that will expire 2012-2013

9 DUs with signed PSA with NPP

Page 6: Consultation with SPUG DUs  on Power Supply Agreement (PSA)

Status of PSA with DUs in Luzon

Areas - 41Number of DUs – 23 Areas per DU:DUs with PSA with NPC in # Areas– 9 in 11 areasDUs with PSA with NPPs in # Areas- 7 in 7 areas

Page 7: Consultation with SPUG DUs  on Power Supply Agreement (PSA)

Status of PSA with DUs in Visayas

Areas - 24Number of DUs – 10Areas per DU: DUs with PSA with NPC in # Areas– 1 in 1 areaDUs with PSA with NPPs in # Areas- 1 in 1 area

Page 8: Consultation with SPUG DUs  on Power Supply Agreement (PSA)

Status of PSA with DUs in Mindanao

Areas - 21Number of DUs – 11 Areas per DU: DUs with PSA with NPC in # Areas– 3 in 5 areasDUs with PSA with NPPs in # Areas- 1 in 1 area

Page 9: Consultation with SPUG DUs  on Power Supply Agreement (PSA)

Power Supply Agreement

The Parties to the PSA are NPC (NPC-SPUG) and DU The Parties to the PSA are NPC (NPC-SPUG) and DU (Off-taker)(Off-taker)

ScopeScope» Contract Demand and Energy Contract Demand and Energy » Full service (base load, peaking)Full service (base load, peaking)» TariffTariff» PenaltiesPenalties» AssignabilityAssignability

Page 10: Consultation with SPUG DUs  on Power Supply Agreement (PSA)

TIMELINEDistribution of Draft PSA to DUs 23 Jan 2009Consultation

Luzon 27 Jan 2009Visayas and Mindanao 29 Jan 2009  

Presentation to DU’s Board of Directorsnlt 07 Feb 2009Submission of Revisions to NPC nlt 13 Feb 2009

SPUG Fax (02) 9213319 or 9213230 or em at [email protected] [email protected]

Page 11: Consultation with SPUG DUs  on Power Supply Agreement (PSA)

TIMELINENP Board Meeting week of 16 Feb 2009

PSA Template UC-ME application to ERC Prompt Payment Discount

Confirmation of the DUs Board of Directors nlt 28 Feb 2009

Submission of signed PSA of ECs to SPUG 28 Feb 2009

Signing of PSA by NPC and DUS week of 02 March 2009(venue – NPC Central Office)

SPUG website: www.spug.ph 

Page 12: Consultation with SPUG DUs  on Power Supply Agreement (PSA)

THANK YOU