MANILA - The operator of the Wholesale Electricity Spot Market has asked Philippine Export-Import Credit Agency to provide a loan that electric cooperatives can tap to enable them to source from the open market.
Melinda L. Ocampo, Philippine Electricity Market Corp. president, said the company has asked state-run PhilExim to establish a loan facility that will cater to cooperatives that cannot afford to shoulder WESM's prudential requirements.
"Agreeable sila kaya lang I do not know. They will have to talk with NEA. How much kailangan fund is depende sa mga ECs kung ano consumption nila, ilan exposure nila," she said.
State-run National Electrification Administration is tasked to provide financial and technical support to electric cooperatives.
Because the electricity rates they charge consumer-members allows them to just break even, some of these utilities have had difficulties meeting PEMC's prudential requirements.
PEMC requires utilities to maintain a prudential requirement greater than or equal to their exposure in the market as a security deposit to ensure payment of obligations.
ECs that fail to comply with the requirement risk getting cut off from the WESM, a market-based trading platform for electricity where utilities source power supply not covered by bilateral contracts with generation companies.
Last month, the Department of Energy issued a circular directing NEA to come up with a proposal on how they would be able to generate funds for the prudential requirements of ECs and to prepare a consolidated filing or petition before the Energy Regulatory Commission for the appropriate adjustments in their rates to accommodate these costs.
There are 28 ECs in Luzon and 23 in the Visayas that directly participate in the WESM for their electricity supply.
source: interaksyon.com