http://asianenergyadvisors.com/2006/10/16/meralco-ipps-should-not-be-price-takers/ Focused on the Philippine Electricity Sector Thu, 04 Feb 2010 08:56:48 +0800 http://wordpress.org/?v=2.8.6 hourly 1 http://asianenergyadvisors.com/2006/10/16/meralco-ipps-should-not-be-price-takers/comment-page-1/#comment-2080 Nick Fri, 20 Oct 2006 04:52:15 +0000 http://asianenergyadvisors.com/2006/10/16/meralco-ipps-should-not-be-price-takers/#comment-2080 Good point. I had forgotten about the fuel Malampaya fuel issue - which is somewhat unique. But that applies only to Sta. Rita and San Lorenzo, not QPL of course. Good point. I had forgotten about the fuel Malampaya fuel issue – which is somewhat unique. But that applies only to Sta. Rita and San Lorenzo, not QPL of course.

]]> http://asianenergyadvisors.com/2006/10/16/meralco-ipps-should-not-be-price-takers/comment-page-1/#comment-2079 viking Fri, 20 Oct 2006 01:39:47 +0000 http://asianenergyadvisors.com/2006/10/16/meralco-ipps-should-not-be-price-takers/#comment-2079 Meralco has a take or pay contract with its IPP, and its IPP also has a take or pay contract for fuel with the natural gas consortium. The IPP thus bids zero because it virtually has no avoidable cost. I remember talking about this with Meralco people and was informed there was some limited fuel bankability. Just taking advantage of this would be beneficial to the economy as a whole but not immediately to Meralco consumers. I've pondered this problem before the spot market opened. Meralco has a take or pay contract with its IPP, and its IPP also has a take or pay contract for fuel with the natural gas consortium. The IPP thus bids zero because it virtually has no avoidable cost. I remember talking about this with Meralco people and was informed there was some limited fuel bankability. Just taking advantage of this would be beneficial to the economy as a whole but not immediately to Meralco consumers. I’ve pondered this problem before the spot market opened.

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