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Stakeholders in the power sector want the fuel
procurement function of National Power Corp. over independent power
producers transferred to IPP administrators (IPPA).
It would be more prudent to
transfer the procurement of IPPs fuel to IPPAs because of “fuel
problems encountered in some power plants when they are being
operated by Napocor,” Camarines Sur Representative Arnulfo
Fuentebella, a member of the Joint Congressional Power Committee and
principal author of the Electric Power Industry Reform Act of 2001 (EPIRA).
Fuentebella said the transfer of
fuel procurement function to the IPPAs would enable the IPPs to meet
their contractual obligations or supply agreements they would enter
into, a concern which has been raised by industry players.
The Philippine Independent Power
Producers Association (PIPPA) earlier said that allowing Napocor to
retain fuel procurement under IPP contracts may not benefit its
privatization as it will be too risky for prospective IPPAs to
enter.
“The winning bidder would
assume a significantly higher risk in selling the energy output when
it has no control over the fuel used for such output. Higher risk
translates to lower privatization value,” Ernesto B. Pantangco,
PIPPA president, said.
--Euan Paulo C. Añonuevo
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