Bangkok, April 26- EGAT announces the presentation of the private power purchase agreement to the public. The consent of the parties must also be obtained in the disclosure of the essential terms of the contract. As for the availability payment, follow international guidelines. confirming the absence of hidden benefits Actual payment for fuel to PTT
Mr. Prasertsak Choengchawano, Deputy Governor for Strategy As a spokesperson for the Electricity Generating Authority of Thailand (EGAT), referring to the case where EGAT was asked to disclose the Power Purchase Agreement (PPA) from a private power producer, EGAT would like to inform that a EGAT is willing to disclose information or details of the Power Purchase Agreement from the Independent Power Producer (IPP) to third parties. However, prior consent from EGAT’s counterparty is required.
As for the Power Purchase Agreement from a Small Power Producer (SPP), the prototype of the contract was disclosed from the beginning. Therefore, information can be searched from the websites of the Energy Regulatory Commission (ERC) and the Energy Policy and Planning Office (EPPO).
However, the purchase of electricity from private power producers is in line with the government policy. to reduce the burden of public investment reduce public debt and increase competition in the electricity business which the government sector selects the power producer with the lowest price during that time It has been approved by the Energy Regulatory Commission (ERC) and the National Energy Policy Council (NEPC), respectively. Regulations for purchasing electricity only
for the readiness of the machine to supply electricity (Availability Payment: AP) or called for short. that the availability payment It is an international practice for long-term power purchase agreements. To reflect the cost of construction of power plants that the private sector has to invest in, such as rental fees, power plant spare parts. Cost of operating or maintenance Power plant insurance, etc. In order to maintain the power plant to be always ready, EGAT has to pay AP fees that are specified throughout the contract period. The payment is made on a monthly basis according to the availability of electricity of the power plant only. If EGAT does not pay, it will be a breach of the contract and may be prosecuted. On the other hand, if the private power producer fails to prepare the power plant to be ready to pay as specified, it will be fined according to the contract as well.
However, the AP of private power plants is included in the base electricity cost. which has not been adjusted since November 2015, therefore does not affect the current increase in electricity prices Let me give you an example to make it easy to understand. and see a clear picture Making a power purchase contract is like making a car rental contract. The tenant must have 2 expenses: the car rental fee that must be paid every month. Whether or not the car is being used Like the AP of the power plant, the fuel will be paid more or less depending on the distance of use, comparable to the electricity cost or EP (Energy Payment), which is the fuel cost that private power plants will receive only when The power system control center orders the power plant to operate to generate electric power only.
For spot LNG imports or spot market gas prices To produce electricity, EGAT has never received any benefits. Since the fuel cost for electricity generation is the actual expense charged by PTT Plc., there is no additional addition.
“EGAT purchases electricity from the private sector according to the government policy. The price of electricity purchased by EGAT is not added to the profit. And the electricity tariff that EGAT collects from electricity users is in line with the ERC’s approval. EGAT has cooperated with all sectors to reduce the cost of electricity generation with full force in order to alleviate the burden of the people. At present, EGAT still has a loan to increase liquidity as high as 110 billion baht from carrying the burden of the FT fee as a payment. temporarily more than 1.5 billion baht,” Mr. Prasertsak Said.-Thai News Agency
Source: Thai News Agency