Nasecore bats for Napocor spin-off

The creation of individual corporate entities for all the power plants of the National Power Corp. (Napocor) will make it attractive to prospective buyers and help stimulate healthy trading of electricity in the spot market, a consumer group said.

The National Association of Electricity Consumers for Reforms (Nasecore) said independent power producers (IPPs) of Napocor and Manila Electric Co. (Meralco) should also be exempted from trading their capacities because these are already contracted and will only be a source of price distortions in the market.

It added that the Energy Department (DOE) must formulate a separate rule for these IPPs for purposes of dispatching them since these capacities will be paid by the consumers whether delivered or not.

Nasecore made the suggestion on the reported price manipulation in the wholesale electricity spot market (WESM) and the lack of interest of buyers on the privatization of Napocor generating assets.

The existence of separate corporate entities for each Napocor plant will strengthen the ongoing reforms in the electricity industry as each plant will be made to compete with each other in the spot market instead of the present set-up where only three groups divided into teams are participating.