2012年-世界发展银行全球_International_Experience_with_Private_Sector_Participation_in_Power_Grids___Philippines_Case_Study_112页_1mb

Summary of the Philippines Case Study on Private Sector Participation in Power Grids

Core Content

This document presents a detailed case study on the Philippines' experience with private sector participation (PSP) in the electricity transmission and distribution (T&D) systems, as part of the Electric Power Industry Reform Act (EPIRA). It also examines the implementation of open access (OA) to T&D systems, emphasizing the regulatory framework and market reforms that have shaped the sector.

Main Areas of Focus

• Electric Power Industry Reform Act (EPIRA): A comprehensive legal framework aimed at restructuring the electricity industry and promoting private sector involvement.
• Private Sector Participation (PSP): Focus on both transmission and distribution sectors.
• Open Access (OA): A system allowing all eligible entities to use the T&D grid, subject to fair pricing and cost allocation.
• Retail Competition and Open Access (RC&OA): A key objective of EPIRA to foster a competitive retail electricity market.

Key Points

1. Philippines' Power Sector Overview

• Prior to EPIRA, the National Power Corporation (NPC) was the sole state-owned entity managing generation, transmission, and distribution.
• Electricity supply came from NPC's own power plants and Independent Power Producers (IPPs).
• Distribution utilities were franchised and contracted with NPC for electricity supply and transmission.

2. EPIRA Overview

2.1 Objectives of the Reform

• To create a competitive and efficient electricity market.
• To promote private sector participation in T&D.
• To unbundle the electricity sector into distinct segments: generation, transmission, distribution, and supply.

2.2 Structure and Ownership Before EPIRA

• NPC had a monopoly over generation, transmission, and distribution.
• Distribution utilities were state-controlled and franchised.

2.3 Structure Injected by EPIRA

• The electricity sector was divided into four sectors: generation, transmission, distribution, and supply.
• The Energy Regulatory Commission (ERC) was established as a quasi-judicial body to regulate the sector.
• The Power Sector Assets and Liabilities Management Corporation (PSALM) was created to manage NPC's assets and privatization.

2.4 Process of Getting There

• The reform process involved legal and regulatory changes, bidding processes, and concession agreements.
• The National Transmission Corporation (TRANSCO) was created to manage transmission, later transferred to NGCP through a 25-year concession.

3. Open Access

3.1 Definitions

• Open access ensures non-discriminatory access to T&D systems for all market participants.
• It includes connection, service quality, cost allocation, and tariff structure.

3.2 Rationale and Benefits

• Encourages competition and efficiency.
• Supports market development and consumer protection.

3.3 Open Access to the Transmission Grid

• Transmission services are regulated and non-discriminatory.
• The National Grid Corporation of the Philippines (NGCP) provides these services.

3.4 Policies and Regulations

• Philippine Grid Code (PGC): Ensures safe and efficient operation of the transmission system.
• Wholesale Electricity Spot Market (WESM) Rules: Facilitates market price discovery and system operation.
• Rules for Setting Transmission Wheeling Rates (RTWR): Define tariff structures for transmission services.
• Open Access Transmission Service Rules (OATS Rules): Ensure equitable access and fair pricing.

3.5 Open Access to the Distribution Grid

• Distribution is also regulated and requires a national franchise.
• Distribution Wheeling Service (DWS) allows third-party access to distribution systems.
• Distribution Services and Open Access Rules (DSOAR): Govern connection services, net metering, and customer switching.

3.6 Assessment

• The ERC needs to be strengthened to ensure compliance and transparency.
• Tariff structures and cost allocation require further refinement.
• System Operator procedures need to be documented for clarity and market understanding.

4. Retail Competition and Open Access (RC&OA)

4.1 Definitions

• RC&OA is the core objective of EPIRA.
• It involves competition among retail electricity suppliers (RES) and open access to T&D systems.

4.2 Rationale and Benefits

• RC&OA aims to lower prices, improve service, and drive efficiency.
• It is a first-time implementation in the Philippines, requiring expert guidance.

4.3 Mandated Requisites

• The WESM is essential for market price discovery.
• Unbundling ensures cost transparency.
• Cross Subsidy Removal Scheme aims to rationalize pricing.
• Privatization of at least 70% of NPC's generating assets and energy output is required to restrain market power.

4.4 Current Environment and Future Plans

• The DoE leads the preparations for RC&OA.
• Key rules and regulations have been established, including:
  • License Issuance Rules for RES
  • Code of Conduct for Competitive Market Participants
  • Customer Switching Rules
  • Supplier of Last Resort (SOLR) Rules
  • Business Separation Guidelines (BSG)
  • Contestability Rules

4.5 Assessment

• The ERC must ensure audit and compliance.
• Enhancing WESM to support retail billing and settlement is a priority.
• A central registration body and meter data mechanism need to be established for customer switching.

5. Private Sector Participation in Transmission

• Privatization of TRANSCO was achieved through a concession contract with NGCP.
• The concession includes:
  • Taking over and operating regulated transmission.
  • Conducting related business in accordance with applicable laws.
• Concession Fee is based on the net present value of future cash flows.
• 25% upfront payment in USD, and 75% deferred in PHP with interest.

6. Private Sector Participation in Distribution

• Distribution Sector includes:
  • 16 private investor-owned utilities (DU)
  • 8 municipality or local government owned utilities
  • 119 electric cooperatives (ECs)
• Investment Management Contract (IMC) model is used for ECs.
• The IMC involves:
  • Investor-operators managing distribution assets.
  • ECs retaining ownership and control.
  • Profit-sharing and lease options for improved efficiency.
• ZAMECO (a Zambales EC) entered into an IMC with the Philippine Power Distributors Investment Corporation, which was later amended to an MSC.
• Court actions arose due to contract extensions and municipal protests.

Conclusion

The Philippines' experience under EPIRA highlights the importance of regulatory clarity, fair pricing mechanisms, and transparent processes in promoting private sector participation and open access in the electricity grid. The reforms have laid the groundwork for a more competitive and efficient market, though challenges remain in areas such as tariff structure, system operator transparency, and implementation of RC&OA. The World Bank and ESMAP aim to integrate these findings into a comprehensive report to guide similar reforms in other countries.