IPTO, the power grid operator, has decided to reduce the electricity amounts to be offered through the next “disruption management” auction scheduled for next Tuesday, a move that has troubled the industrial sector, depending on the measure as an energy cost-cutting tool.
The combined total to be offered for long-term and short-term services will be reduced from 1,650 MW to 1,200 MW.
More specifically, the long-term service to be offered will measure 550 MW, down from 750 MW at an auction last May, while the short-term service amount to be offered on Tuesday will be reduced to 650 MW from 900 MW.
Though necessary considering the electricity grid’s needs, the “disruption management” plan, enabling major industrial enterprises to benefit from electricity cost savings in exchange for shifting energy usage to off-peak hours whenever required by the operator, has also stood as a key part of the government’s drive to reduce energy costs for the industrial sector.
Besides serving the needs of IPTO, the power grid opearator, the measure also doubles as energy-cost relief for the industrial sector.
IPTO cited a reduced grid load for the reduced amounts to be offered at next week’s auction.