20th EPIRA Implementation Status Report

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  • 20th EPIRA Implementation Status Report (Period Covering November 2011 to April 2012)

    Prepared by the Department of Energy With Contributions from Energy Regulatory Commission Philippine Electricity Market Corporation National Power Corporation National Electrification Administration Power Sector Assets and Liabilities Management Corporation National Transmission Corporation

  • 20th Status Report on EPIRA Implementation

    November 2011 April 2012

    CONTENTS I. INTRODUCTION .................................................................................................................................. 4 II. PRIVATIZATION ................................................................................................................................ 4

    A. Privatization of Generating Assets ........................................................................................... 4 B. Privatization Proceeds............................................................................................................... 6 C. Transfer of NPC-IPP to Independent Administrators ............................................................. 7 D. Concession of the National Transmission Network ................................................................ 8 E. Sale of Sub-Transmission Assets (STAs) .................................................................................. 8

    III. ELECTRICITY RATES ...................................................................................................................... 9 A. PSALM/NPC Effective and Basic Generation Charges ............................................................. 9 B. Transmission Rates.................................................................................................................. 10 C. Distribution Utilities (DUs) Rates ............................................................................................ 10

    1. Average Effective Electricity Rates ................................................................................. 10 2. Regulatory Actions ........................................................................................................... 12

    D. Administration of Universal Charge (UC) .............................................................................. 13 1. Total Collections/Disbursements for UC-ME and UC-EWR .......................................... 13 2. UC for Stranded Contract Costs (SCC) and Stranded Debts (SD) ................................. 14

    E. Assumption of Loans of Electric Cooperatives ....................................................................... 14 F. Mandatory Rate Reduction (MRR) .......................................................................................... 15 G. Lifeline Rate Subsidy Program ................................................................................................ 15

    IV. COMPETITION ................................................................................................................................ 15 A. Wholesale Electricity Spot Market Operations ...................................................................... 15 B. Open Access and Retail Competition ...................................................................................... 25 C. Market Power Monitoring ....................................................................................................... 27

    V. POWER SUPPLY SECURITY AND RELIABILITY ............................................................................ 28 VI. TOTAL ELECTRIFICATION ............................................................................................................ 40

    A. Qualified Third Party ............................................................................................................... 41 B. Rural Power Project ................................................................................................................. 42 C. Implementation of E.R. 1-94 Program ................................................................................... 43

    VII. CONCERNS AND CHALLENGES.44 LIST OF ANNEXES ............................................................................................................................... 46 Annex 1.Transco Inspection Report Based on Concession Agreement as of April 2012 ................. 47 Annex 2. NGCP Related Petitions to ERC as of 30 April 2012 ..................................................................... 50 Annex 3. Summary of MERALCO November 2011 - April 2012 Residential Unbundled Power

    Rates ......................................................................................................................................................................... 51 Annex 4. NPC Generation Charges in PhP/kWh ............................................................................................... 52 Annex 5. Metered Quantity, Spot Quantity, Bilateral Quantity (MWh) ................................................... 55 Annex 6. Demand and Energy Offers (MW) (Luzon) ...................................................................................... 59 Annex 7. Demand and Energy Offers (MW) (Visayas) ................................................................................... 62 Annex 8. Generation Mix (%) ................................................................................................................................... 63 Annex 9. Effective Settlement Prices ..................................................................................................................... 66 Annex 10. Private Sector Initiated Power Projects (Luzon) as of June 2012 ....................................... 69 Annex 11. Private Sector Initiated Power Projects (Visayas) as of June 2012 ..................................... 75 Annex 12. Private Sector Initiated Power Projects (Mindanao) as of June 2012................................ 79 Annex 13. ERC Approved Capital Expenditure Projects as of 30 April 2012........................................ 84 Annex 14. Amount Incurred by NPC for the Grant of MRR, 2001- April 2012 .................................. 106

  • 20th Status Report on EPIRA Implementation

    November 2011 April 2012

    LIST OF TABLES Table 1. Remaining Assets for Privatization ......................................................................................................... 4 Table 2. Operational Status of the Agus Pulangui Plants as of 30 April 2012 ......................................... 5 Table 3. Generated and Collected Proceeds of Privatization as of 30 April 2012, (In US$Billion) 7 Table 4. Utilization of Privatization Proceeds 30 April 2012 ........................................................................ 7 Table 5. Indicative Schedule for Appointment of IPP Administrators, as of 30 April 2012 .............. 7 Table 6. ERC Decisions on Deferred Accounting Adjustments (DAA) - GRAM & ICERA ..................... 9 Table 7 . NPC Effective Generation Charges (PhP/kWh) .............................................................................. 10 Table 8. Average Systems Rates, October 2011 vs. March 2012 (Ph/kWh) ......................................... 11 Table 9. PDUs Average Effective Rates (AER), March 2012 (PhP/kWh) ................................................ 11 Table 10. Summary of MERALCO Residential Unbundled Power Rates, March 2012 ...................... 12 Table 11. UC Collections & Disbursements, as of 30 April 2012 (In Billion PhP) ............................... 13 Table 12. UC Collections and Disbursements for the Period November 2011- April 2012 .......... 14 Table 13. Status of Loan as of 30 April 2012 (in Billion PhP) ..................................................................... 14 Table 14. Luzon and Visayas Trading Results ................................................................................................... 16 Table 15. Metered Quantity ....................................................................................................................................... 16 Table 16. WESM Generation Mix ............................................................................................................................. 17 Table 17. Registration Update as of April 2012 (Luzon and Visayas) ..................................................... 23 Table 18. Capacity Limitations per Grid for 2012 ............................................................................................ 27 Table 19. PHILIPPINES, 2011 and 2010 Comparative Generation, GWh ............................................... 29 Table 20. LUZON Grid, 2011 and 2010 Comparative Generation, GWh ................................................ 29 Table 21. VISAYAS Grid, 2011 and 2010 Comparative Generation GWh ............................................... 30 Table 22. MINDANAO Grid, 2011 and 2010 Comparative Generation, GWh ....................................... 30 Table 23. 2011 and 2010 Comparative Electricity Sales and Consumption, Philippines ................ 36 Table 24. ECs Booked in EC-PCG Program .......................................................................................................... 39 Table 25. Targets Per Implementors ..................................................................................................................... 40 Table 26. Barangay Electrification Status as of 30 April 2012 ................................................................... 40 Table 27. Summary of Financial Benefits as of October 2011 (In PhP Billion) .................................... 43 LIST OF FIGURES Figure 1. Market Share per Grid ...