DOE, NPC AND NEA SIGN MOA ON ENHANCED
PSP PROGRAM IN EXISTING SPUG AREAS

       THE Department of Energy (DOE), National Power Corporation (NPC) and National Electrification Administration (NEA) recently signed a Memorandum of Agreement (MOA) on the enhanced Private Sector Participation (PSP) in existing NPC-SPUG areas.

       NPC President Froilan A. Tampinco, in his transmittal letter of the MOA to the DOE and NEA stated that, "The MOA creates a composite PSP Steering Committee to guide the DOE, NPC and NEA in studying, identifying and implementing policies, as well as, in formulating tender documents to accelerate the entry of New Power Providers in SPUG areas. The MOA delineates the responsibilities of each party and calls for the designation of key officials from the DOE, NPC and NEA in the proposed Steering Committee."

       Among other things, the responsibilities of NPC as per Article IV of the MOA are to: study viable technology alternatives for areas for PSP; undertake generation and transmission planning; determine system configuration and technology options; and, conduct Grid/System Impact Studies.

       It is also NPC’s responsibility to: determine the True Cost Generation Rate (TCGR) and corresponding UCME allocation; formulate the template/structure of the tripartite Power Supply Agreement (PSA) (among NPC-NPP-EC) or Power Supply Contract (PSC) (between NPC and NPP) and PSA (between NPC and EC); draft specific tripartite agreements, i.e. PSA/PSC (NPC-NPP-EC); draft the tender documents for PSP; as well as, conduct bidding for NPC-SPUG Areas as prescribed by the DOE