Thursday, October 29, 2015

Trading of ‘excess capacity’ legal and above-board, TeaM Energy claims

by Myrna Velasco October 28, 2015

The trading of the 200-megawatt excess capacity of the Sual coal-fired power facility in Pangasinan is legal and above-board, plant operator TeaM Energy Philippines has qualified in a statement to the media.
TeaM Energy – which is a joint venture of Japanese firms Tokyo Electric Power Company and Marubeni Corporation – has been implicated in the P14 billion plunder charges lodged by the energy arm of San Miguel Corporation against Power Sector Assets and Liabilities Management Corporation.
PSALM is TeaM Energy’s counter-part in the memorandum of agreement (MOA) on the sale and trading of the excess capacity of the 1,200MW Sual power facility.
“The MOA is legal and above-board. This went through the regular approval process of the respective boards of NPC and PSALM,” the Japanese joint venture firm has noted.
The NPC-PSALM Board comprised of the secretaries of the Departments of Finance, Energy, Budget and Management, Trade and Industry, National Economic and Development Authority (NEDA), Interior and Local Government, Agriculture, Environment and Natural Resources, and Justice.
It qualified that under their agreement, the trading of the 1,000MW capacity which account for the fraction of the supply contract to the San Miguel subsidiary as independent power producer administrator (IPPA), is given priority in the dispatch order.
“There is no truth to the claim of SMEC (San Miguel Energy Corporation) that TPEC has priority over the dispatch of the 200MW excess capacity because dispatch of capacity is based on competitive bidding under the Wholesale Electricity Spot Market rules,” TeaM Energy stressed.
It emphasized that it has been clear from the MOA that “the contracted capacity of 1,000MW has priority over the excess capacity of 200MW.”
As prescribed under the energy conversion agreement (ECA) of the Sual plant, it was only the 1,000MW of the capacity that had been under contract with state-run National Power Corporation (NPC), which subsequently was privatized via the appointment of an IPPA.
TeaM Energy has qualified that “even prior to the MOA, (TeaM Energy) has been trading its 200MW excess capacity in the WESM through PSALM.”

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