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Consultation with SPUG DUs on Power Supply Agreement (PSA)

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

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Consultation with SPUG DUs on Power Supply Agreement (PSA)

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  1. Department Of Energy National Power Corporation National Electrification Administration Consultation with SPUG DUs on Power Supply Agreement (PSA)

  2. PROGRAM • Invocation • Recognition of Participants • Opening Remarks • Messages • DOE • NPC-SPUG Mindanao • NEA • Overview • PSA Template • Timeline • Closing Remarks

  3. 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

  4. DOE Remarks • “professionalize” the electric industry • On-going PhP 0.30/kwh reduction and 3% prompt payment discount should have a legal basis • PSALM-NPC separation of books: must immediately implement transfer of books • SPUG as residual of NPC • SPUG is being subsidized by the mainland grid revenues and UC-ME • COA is already looking at SPUG operations especially on the rate reduction and PPD since these are taxpayers money

  5. SPUG Existing Areas • 105 plants in 86 areas nationwide • 77 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

  6. Status of PSA with DUs in Luzon • Areas - 41 • Number of DUs – 23 • Areas per DU: • DUs with PSA with NPC in # Areas– 9 in 11 areas • DUs with PSA with NPPs in # Areas- 7 in 7 areas

  7. Status of PSA with DUs in Visayas • Areas - 24 • Number of DUs – 10 • Areas per DU: • DUs with PSA with NPC in # Areas– 1 in 1 area • DUs with PSA with NPPs in # Areas- 1 in 1 area

  8. Status of PSA with DUs in Mindanao • Areas - 21 • Number of DUs – 11 • Areas per DU: • DUs with PSA with NPC in # Areas– 3 in 5 areas • DUs with PSA with NPPs in # Areas- 1 in 1 area

  9. Power Supply Agreement • The Parties to the PSA are NPC (NPC-SPUG) and DU (Off-taker) • Scope • Contract Demand and Energy • Full service (base load, peaking) • Tariff • Penalties • Assignability

  10. TIMELINE • Distribution of Draft PSA to DUs 23 Jan 2009 • Consultation • Luzon 27 Jan 2009 • Visayas and Mindanao 29 Jan 2009 • Presentation to DU’s Board of Directors nlt 07 Feb 2009 • Submission of Revisions to NPC nlt 13 Feb 2009 SPUG Fax (02) 9213319 or 9213230 or em at crvborlaza@napocor.gov.ph rlabergas@napocor.gov.ph

  11. TIMELINE • NP 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

  12. THANK YOU

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