The main power utility PPC will need to offer third parties an additional electricity amount – as a penalty – of approximately 250 MWh/h at the country’s next NOME auction, scheduled for October, as a result of its failure to meet bailout-required market share contraction targets.
Recent retail electriicity market share figures showed that the utility held more than 2 percent over a target set for June, meaning that the additional electricity amounts will be added as a penalty.
PPC was set a retail electricity market share target of 81 percent for June and 75.24 percent for the end of the year. The utility’s market share in June stood firm at 85.5 percent, hardly moving from May’s 85.53 percent.
The additional 250 MWh/h that will need to be offered by PPC to third parties at October’s NOME auction will take that session’s total amount to slightly over 700 MWh/h.
The revised bailout includes a provision demanding additional NOME auction electricity amounts as a penalty to be imposed within six months if the discrepancy between a PPC market share target set for a given period and the utility’s actual market share at the time exceeds 2 percent. PPC’s market share in June exceeded that month’s target by 4.5 percent.
Though PPC is expected to react against any such penalty, RAE, the Regulatory Authority for Energy, has already pointed out that the NOME terms set are perfectly clear.
The NOME auctions were introduced last October to offer third parties access to PPC’s low-cost lignite and hydrocarbon sources.