Government to draw up clearer rules on cross-ownership in power sector
The Philippine Star 07/25/2006
The government is expected to draw up clearer rules on cross-ownership in the power sector, the Power Sector Assets and Liabilities Management Corp. (PSALM) said.
In a statement, PSALM said the economic managers have recognized the need for the adoption of lucid rules on cross-ownership with the forthcoming sale of generation assets by both the government and private companies.
"We are aware that we cannot totally eliminate cross-ownership. But we hope to avoid the creation of groups with enough market power to dictate the price of electricity in their respective grids," PSALM said.
This year, PSALM is scheduled to bid out the 25-year concession of the National Transmission Corp. (TransCo) and five asset packages of hydro and geothermal plants with a total capacity of 1,157 megawatts (MW) capacity.
PSALM has announced it would re-bid the 600-MW Calaca and the 600-MW Masinloc upon official termination of the contract with winning bidder YNN who failed to deliver the upfront payment of $227 million. The new bidding schedule for these two coal-fired power plants has yet to be announced.
Atlanta-based energy firm Mirant Philippines is also planning to transfer ownership of its interest in about 2,000 MW of generating capacity.
According to PSALM, the economic managers believed the ongoing divestments in the power sector should not lead to the consolidation of market power.
"They also encouraged private investors to put up new power generating facilities, particularly in areas where the power supply situation is getting tight," PSALM said.
Except for missionary electrification projects, PSALM also noted that government-owned National Power Corp. (Napocor) is no longer developing new facilities.
"Clear rules on cross-ownership would provide an assurance to the millions of electricity consumers that their interests are amply protected," the economic managers said. "These measures are meant to enhance competition and ultimately bring down the price of electricity in the Philippines."
The government is expected to draw up clearer rules on cross-ownership in the power sector, the Power Sector Assets and Liabilities Management Corp. (PSALM) said.
In a statement, PSALM said the economic managers have recognized the need for the adoption of lucid rules on cross-ownership with the forthcoming sale of generation assets by both the government and private companies.
"We are aware that we cannot totally eliminate cross-ownership. But we hope to avoid the creation of groups with enough market power to dictate the price of electricity in their respective grids," PSALM said.
This year, PSALM is scheduled to bid out the 25-year concession of the National Transmission Corp. (TransCo) and five asset packages of hydro and geothermal plants with a total capacity of 1,157 megawatts (MW) capacity.
PSALM has announced it would re-bid the 600-MW Calaca and the 600-MW Masinloc upon official termination of the contract with winning bidder YNN who failed to deliver the upfront payment of $227 million. The new bidding schedule for these two coal-fired power plants has yet to be announced.
Atlanta-based energy firm Mirant Philippines is also planning to transfer ownership of its interest in about 2,000 MW of generating capacity.
According to PSALM, the economic managers believed the ongoing divestments in the power sector should not lead to the consolidation of market power.
"They also encouraged private investors to put up new power generating facilities, particularly in areas where the power supply situation is getting tight," PSALM said.
Except for missionary electrification projects, PSALM also noted that government-owned National Power Corp. (Napocor) is no longer developing new facilities.
"Clear rules on cross-ownership would provide an assurance to the millions of electricity consumers that their interests are amply protected," the economic managers said. "These measures are meant to enhance competition and ultimately bring down the price of electricity in the Philippines."
0 Comments:
Post a Comment
<< Home