Issues stopping big consumers from signing new PPC contracts

Major industrial electricity consumers are hesitating to sign new supply contracts with the main power utility PPC, despite the latter’s much-delayed endorsement of a volume-based discounts chart for high-voltage consumers at a recent shareholders’ meeting, as at least two key market factors remain unsettled.

Industrial consumers are still waiting for a clear picture on the power utility’s CO2 emission right costs and transmission system usage costs.

Pundits noted CO2 emission right costs represent a production cost for PPC and cannot be incorporated into invoices.

As for the transmission system usage costs, PPC has promised to revise prices for 2019. Following a recent RAE (Regulatory Authority for Energy) decision, the power grid operator IPTO’s transmission system usage cost will need to be calculated based on average peak-hour consumption levels during the months of December, January and February. However, PPC has continued using peak-hour levels that applied between 2010 and 2014.