The main power utility PPC has defended its right to participate in the “disruption management” plan’s auctions – intended to enable energy cost savings for major-scale industry in exchange for shifting energy usage to off-peak hours whenever required by the power grid operator – in a letter forwarded yesterday to EVIKEN, the Association of Industrial Energy Consumers. EVIKEN had recently reacted against the utility’s involvement in the “distruption plan” auctions.

PPC undermined the recently introduced “disruption management” plan’s second auction session late last month by submitting extremely low offers intended to flatten session prices, sparking protest by disgruntled energy-intensive industry officials.

In its letter, PPC noted that it was surprised by EVIKEN’s intervention, adding that the initiative created a “particularly unfavorable impression.”

EVIKEN has created an impression that it does “not recognize the efforts and sacrifices made by PPC to supply electricity to [industrial] enterprises – members of the association – at the lowest possible prices, based on current conditions,” PPC noted in its letter. Both the association and high-voltage consumers have previously acknowledged PPC’s efforts, the utility added.

PPC also noted that EVIKEN will need to offer a “reasonable response as to why an administration representing shareholders of an enterprise listed on the bourse, and appointed to protect their interests…should be barred from the ‘distruption plan’ auctions.”

In its letter to EVIKEN, PPC noted that the industrial association knows very well that no such agreement or obligation was made, or could be made.

The utility also pointed out that it had not made full use of the capacity it is entitled to for the auctions when it registered with IPTO, the power grid operator, to take part.

PPC is interested in favorable and constructive cooperation with EVIKEN and all high-voltage consumers, the power utility stated in the letter, adding that it intends to contribute to the maximization of benefits offered to all sides by the “disruption plan”.

Yesterday, EVIKEN, in a letter forwarded to IPTO – ahead of public consultation procedures for revisions to two articles of the “disruption plan” auction regulations – asked the operator to examine whether PPC has the right to partipate in the auctions.