IPTO, the power grid operator, has increased the electricity amounts to be offered at the “disruption management” auctions to 650 MW for short-term agreements and 850 MW for longer-term agreements, both up from 500 MW each in the first auction, held at the end of February. The next auction, offering the increased amounts, is scheduled for next Thursday.
The increased amounts for the auction, covering April 1 to 30, were made to meet increased demand expressed in the first auction and satisfy participant needs.
The “disruption management” measure was introduced to enable energy cost savings for major-scale industry in exchange for shifting energy usage to off-peak hours whenever required by the operator.
Besides the increased electricity amounts to be offered at next week’s auction, the operator has also announced new regulations that exclude production units that are currently not active from participating. Prior to the revision, facilities could take part in the auction based on preceding production levels.
Despite the new auction rules, Larco, the troubled state-controlled general mining and nickel producer, has registered to take part in both auctions, for short-term and longer-term agreements. Larco, which ranks as the country’s second biggest electricity consumer, will seek roughly 160 MW.
EVIKEN, the Association of Industrial Energy Consumers, in a letter forwarded to IPTO during recent public consultation procedures for the revisions to the “disruption management” measure, questioned a position adopted by one consumer during the process, who, according to the association, equated consumers who have disrupted their basic production activity with ones who do not operate at full capacity during peak-demand periods.