national power corporation small power utilities group power supply agreement
TRANSCRIPT
National Power CorporationNational Power CorporationSmall Power Utilities GroupSmall Power Utilities Group
POWER SUPPLY POWER SUPPLY AGREEMENTAGREEMENT
Small Power Utilities GroupSmall Power Utilities GroupPower Supply AgreementPower Supply Agreement
Power Supply Agreement
Test our interest in participative discussion
Story about:
The KUBA Family
The Consultant and the Driver
National Power CorporationNational Power Corporation
27 January 2009
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Power Supply AgreementPower Supply AgreementBetweenBetween
NPC-SPUGNPC-SPUGAndAnd
Distribution UtilitiesDistribution Utilities
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Power Supply Agreement
PSA MEANS:
Power Supply Agreement
Para Sa Atin
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Power Supply Agreement
Why do we need to discuss and to sign PSA?
Types of Agreement: Purchase Order Memorandum of Understanding Memorandum of Agreement Contract of Supply and/or Services
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Power Supply AgreementWhy do we need to discuss and to sign PSA?
Source of Funds:SAGRRevenue – Opex = Loss = UCME 0.00 – Fixed Cost = Loss 0.00 – Variable cost = Loss Capex = Loss = UCME
UCME > ERC Approved UCMESecure funds from the GAA, if possibleIf not, what will happen?
PRIORITIZE OPERATIONS
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Power Supply Agreement
Why do we need to discuss and to sign PSA?
SPUG has the mandate to provide power
DUs should pay SPUG for the service
Therefore,
“No Revenue, No funds for Operation”
Both Parties should do each responsibility
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Power Supply AgreementWhy do we need to discuss and to sign PSA?
Signing the PSA is inevitable
Energy forecasting
Capacity allocation
Funding requirements
Legal considerations
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Table of ContentsSECTION ONE – SCOPE OF AGREEMENTSECTION TWO - TERM OF AGREEMENTSECTION THREE - SERVICE SPECIFICATIONSSECTION FOUR - CHARGES AND ADJUSTMENTSSECTION FIVE - DEFAULTSECTION SIX - TERMINATIONSECTION SEVEN - INDEMNIFICATIONSECTION EIGHT - MISCELLANEOUS PROVISIONS
LIABILITIES FORCE MAJEURE SETTLEMENT OF DISPUTES:
ARBITRATION COURT LITIGATION
ATTORNEY’S FEES AND LITIGATION EXPENSES
NOTICES VALIDITY AND BINDING EFFECT AMENDMENT ENTIRE AGREEMENT UNDERTAKING EFFECTIVITY
Annex A - DEFINITION OF TERMSAnnex B - CONTRACTED DEMAND AND ENERGYAnnex C - CHARGES AND ADJUSTMENTS
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Power Supply Agreement
Signing the PSA is Inevitable
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Power Supply Agreement
Conclusion
Let us join forces in order to have a better supply of electricity in your franchise areas
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Power Supply Agreement
Salamat Po
Small Power Utilities GroupSmall Power Utilities GroupPower Supply AgreementPower Supply Agreement
Power Supply Agreement
The KUBA Family
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Small Power Utilities GroupSmall Power Utilities GroupPower Supply AgreementPower Supply Agreement
Power Supply Agreement
The Consultant and the Driver
Small Power Utilities GroupSmall Power Utilities GroupPower Supply AgreementPower Supply Agreement
Table of Contents
SECTION ONE – SCOPE OF AGREEMENTSUPPLYSupply of electric power and energy
between NPC – SPUG and Distribution Utilities
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Table of Contents
SECTION TWO - TERM OF AGREEMENT
Cooperation period is ten (10) years from Effectivity Date and renewable by mutual consent of the parties.
DU or NPC has an option to enter into a Power Supply Agreement with new power provider (NPP).
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Table of Contents
SECTION THREE - SERVICE SPECIFICATIONS
CONTRACT DEMAND AND CONTRACT ENERGY Allocation of Contract Demand and Contract
Energy as set forth in Annex A. To increase the contracted volumes, notify at least
two (2) years in advance to adjust capacity
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Table of Contents
SECTION THREE - SERVICE SPECIFICATIONS SERVICE RELIABILITY
Supply shall be available continuously except for allowable interruption or reduction
The parties shall have a period of three (3) years to improve their respective facilities, including ensuring the compliance of the CUSTOMER with the pertinent technical specifications and performance standards of the Distribution Code.
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Table of Contents
SECTION THREE - SERVICE SPECIFICATIONS APPLICATION FOR INCREASE IN DEMAND AND
ENERGY Through an amendment in Contract Demand or
Contract Energy for any particular year or years subject to the technical constraints of generating
plants, transmission, substation, and other facilities and
subject to such rates and to other terms and conditions as the parties may agree upon.
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Table of Contents
SECTION THREE - SERVICE SPECIFICATIONS ASSIGNABILITY
NPC-SPUG shall assign, cede, transfer, allocate wholly or partly its rights and obligations under this agreement unilaterally to an NPP which will be selected by the NPC-SPUG/CUSTOMER to take over the former’s power generation function by reason of private sector participation.
CUSTOMER shall not assign any of its rights and/or obligations under this Agreement without the prior written consent of NPC-SPUG, which consent shall not be unreasonable withheld, and subject to the terms and conditions imposed in this Agreement.
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Table of Contents
SECTION FOUR - CHARGES AND ADJUSTMENT
Billing and payment for energy delivered by NPC-SPUG
Subsidized Approved Generation Rate (SAGR) Other adjustments and procedures as approved by the ERC and provided in Annex B on Charges and Adjustments.
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SECTION FIVE - DEFAULT The occurrence of the following events:
Breach or failure in the performance An assignment by either party Repeated breaches of this agreement Cessation by either party
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SECTION SIX - TERMINATIONDefault Initial TermExtended Term
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Annex B
CHARGES AND ADJUSTMENTS TARIFF
Basic Rate = P /kW-hr Capex/Fixed Cost = P /kW-hr Variable Cost = P /kW-hr
Overdue Accounts = P /kW-hrGRAM = P /kW-hr ICERA = P /kW-hr
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Annex B
PENALTIES If the CUSTOMER fails to meet the annual
Contracted Energy, CUSTOMER shall still pay for the Full Fixed Cost component of the True Cost Generation Rate (TCGR) of the undelivered Contracted Energy;
If the CUSTOMER offtakes is in excess to the Contracted Energy, CUSTOMER shall pay for the Full Variable Cost component of the True Cost Generation Rate (TCGR) of the incremental excess energy;
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Annex B
PENALTIES If NPC-SPUG fails to meet the Contracted
Energy, and the CUSTOMER secures an alternative supplier to meet the deficiency, NPC-SPUG shall pay for the electricity produced by the CUSTOMER equivalent to the true cost of generation of NPC-SPUG.
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Annex B
CHANGES TO CHARGES AND ADJUSTMENTS The charges and adjustments may from time to
time be reviewed and amended in accordance with prevailing laws, rules or regulations.