The newly-awarded Independent Power Producer Administrators (IPPAs) will have head start in marketing their acquired capacity under the interim open access, so long as the volumes they would trade or sell would account for the un-contracted energy output of the transferred National Power Corporation-IPP contracts.

This has been based on the proposed rules crafted by the Energy Regulatory Commission (ERC) for the IOA, which has been nicknamed Power Supply Option Program or PSOP.

It was stipulated that the IPPAs can join the roster of PSOP’s eligible suppliers, along with power generation companies, successor-generation firms for privatized assets, NPC-IPPs, duly-licensed retail electricity suppliers (RES) with clear unbundling of businesses; and NPC, provided the state-run power firm complies with the prescribed market limitation.

Presently, there are four IPPAs which may intend to join the program. These are San Miguel Energy Corporation for the contracted capacity of the 1,200-megawatt Sual coal-fired plant; Therma Luzon Inc. of the Aboitiz Group for the 735-MW Pagbilao facility; Strategic Power Development Corporation, also a San Miguel Corp. subsidiary for the 345-MW San Roque hydro plant; and Amlan Power Holdings Power Inc. for the 70-MW Bakun and 30-MW Benguet hydro plants. Awards of the IPPAs for the hydro plants are yet to be finalized by the Power Sector Assets and Liabilities Management Corporation.

For distribution utilities (DUs), their participation in the PSOP within their franchise area will not be allowed “without the appropriate authorization granted by the ERC conferring upon it the status of an eligible DU,” and after compliance with requirements. The DU also serves as supplier of last resort once the PSOP supplier failed in meeting its commitment to the customer.

On the customer side, availment of the PSOP will only be opened to those which have logged monthly 1.0-megawatt of peak demand in the preceding 12 months, meaning such should not have fallen below the threshold at the prescribed duration.

Once enlisted as PSOP participant, the eligible customer is also directed to maintain its peak demand at 1.0-MW level throughout the program in a single utility meter, and without recourse to any manner of demand aggregation.