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By Euan Paulo C. Añonuevo, Reporter
A proposed multimillion-dollar loan designed to
help electric cooperatives (EC) effectively participate in the local
spot market for electricity may finally push through early next
year.
Edita S. Bueno, National Electrification
Administration (NEA) administrator, said the Asian Development Bank
is currently evaluating a $100-million loan facility for the said
purpose.
“The ADB technical study is ongoing for the
proposed loan to NEA,” she said.
The technical study was bankrolled by a
$1-million technical assistance from the multilateral bank. Once the
technical study is completed, ADB will evaluate the amount of
credit, either through a dollar or peso loan facility, that will be
opened to ECs.
“We will know ADB’s final action early next
year,” Bueno added.
The proposed loan is to be channeled to NEA for
relending to ECs in order to enhance the technical capability of
their distribution networks and prepare them for trading at the
Wholesale Electricity Spot Market (WESM).
Established under the Electric Power Industry
Reform Act of 2001 (EPIRA), the WESM provides an avenue for power
generators and entities with bulk energy requirements such as
electric utilities to trade electricity.
Competition to be generated under this scheme is
being banked upon by the government to lower the country’s
electricity prices, which is currently one of the highest in the
region.
However, it was earlier deemed that most of the
country’s ECs, which distribute electricity across various parts
of the country, were found to be needing improvements both on
financial and technical aspects before they can participate in the
spot market.
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