POWER SECTOR REFORM and REGULATORY ISSUES in ASEAN
by: by: Tjarinto S. Tjarinto S. Tjaroko Tjaroko
ASEAN Co ASEAN Co Director of Director of EAEF EAEF
Metering Billing and CRM/CIS Asia Pacific 2005
Shanghai, 12 – 13 January 2005
Outline of Presentation
• Current issues
• Developments of ESI in ASEAN
• Countries Performance
• Conclusion
Current Issues Power sector ASEAN
§ GENERAL TREND: Ø Wholesale market
Ø Privatization
Ø Breakup of monopolies
§ TARIFF: Ø Regulated vs. deregulated
§ METERING & SETTLEMENT: Ø Electronic metering
Ø Computerized billing and collection systems
Development of ESI in ASEAN
• Availability of energy resources: oil (22 B barrels), Nat. gas (227 TCF), Hydro (234 GW), Coal (46 B tons), Geothermal (35 GW)
• Gas and coal dominates in the power generation mix
• Electric Power Industry Restructuring and ASEAN Power Grid Interconnection on the way forward
Current Electricity Supply Industry (ESI) Structure of Brunei Darussalam
Ministry of Development
Department of Electrical Services
T
G
T
D
G G BSP
BLNG
G
PPA
PPA
Customer Customer
D
Berakas Power Company (BPC)
Department of Electrical Services (DES)
Regulator
Current operation of Cambodian Electricity (EDC)
IPP’s Power Plant
EDC’s Power Plant
Distribution System
Customer
Energy Sale
Provincial System
IPP’s Power Plant
EDC’s Power Plant
Distribution System
Customer
Energy Sale
Phnom Penh System
Generation
Distribution
Custom
er Dep.
Administration
Finance
Planning & Pro.
Internal Audit
President Director PLN
Business & Customer service Finance
Human Resources
Transmission Distribution
Generation and Primary Energy
6 Subsidiaries 2 generation B Units
2 Generation & Transmission
B Units
9 Regional Business Units
6 Service BU:
• Engineering • Repairing • R & D • Testing & product Certification • Training • Construction Management
1 JavaBali Transmission
B Units
5 Distribution B Units
1 Project Construction
B Units
INDONESIA JAVABALI
7 Distribution B Units
2 Project Construction
B Units
SUMATRA
2 Project Construction Business Units
OTHER ISLANDS
HOLDING COMPANY
Organization Chart of EDL as per 2004
Board of Director
General Manager GM Office Internal Audit
Dept.
Dty. General Manager Administration & Finance
Dty. General Manager Development
Dty. General Manager Generation
Dty. General Manager Distribution
Dty. General Manager Service
Corp. Planning
Administration
Personnel
Accounting
Supply
IT
Environment
System Planning
PT&D Project
SPRE Project
NamMang 3 Pro
NARPD project
Xeset 2 project
Southern T_L proj
Nam Ngum1
Nam Leuk
Xeset1
Selabam
Nam Dong
Nam Ko
Technical
Services Office
Installation Unit
13 Provincial
Branches
Training Center
Kindergarten
Pole Factory
Workshop
Sport Club
THE THREE MAJOR UTILITIES IN MALAYSIA
Multiple Generation Players
Generation IPPs
Transmission
Distribution
• Fixed tariffs
• Private sector participation in the generation sector
P. Malaysia (2003):
Population 17.7 million
Customers 6.1 million
Installed Capacity 16,987 MW
TNB Capacity 10,153 MW
IPP Capacity 6,834 MW
Sarawak (2003):
Population 2.5 million
Customers 0.39 million
Installed Capacity 869 (MW)
SESCO Capacity 559 (MW)
Sabah (2003):
Population 2.9 million
Customers 0.3 million
Installed Capacity 758 (MW)
SESB Capacity 468 (MW)
Myanmar Power Sector Industry
• Ministry of Electric Power (MOEP) was established on 15 November 1997 for promotion and effective operation on power sector • Department of Electric Power (DEP) was established for overall planning and policy making body as well as a secretariat to the Ministry • Myanmar Electric Power Enterprise (MEPE) remains as a utility responsible for power generation, transmission and distribution throughout the country • Department of Hydroelectric Power (DHP) was established on 24 January 2002 to increase the Ministry’s capability in the implementation of hydropower projects • Electricity tariff was revised in 1994 as first step towards commercialization • MEPE has responsible to propose tariff structure for government approval • There is no tariff change since 1999 • Electricity metering, billing and collection is undertaking by MEPE, but in some areas, meter reading and billing is done by private billing company
Philippines ESI Services
• Industry restructuring: Undergoing major changes for the last 2 years Unbundling of generation, transmission, and distribution Introduction of spot market key industry players are PSALM, ERC, DOE, Transco, NEA and JCPC New industry structure divided into competitive sector for generation and regulated structure for natural monopolies, Transco and DUs
• Legal Framework: RA 9136, Electricity Power Industry Reform Act Implementing rules and regulations pursuant to EPIRA
Philippines ESI Services (cont.) • Commercial:
Unbundled electric markets seek to ensure transparent and reasonable prices of electricity NPC’s tariff consists of generation charge, franchise and benefits to host communities Adjustment thru GRAM and ICERA on quarterly basis Open assess policy on NPC transmission system to foster transparency Transco bills cover basic power delivery charges ancillary charges are revenue neutral and only billed on “passon” basis for hand over to ancillary service providers
• Metering & Settlement: Transco provides metering services as required by the grid code, distribution code and WESM rules Transco currently setting up its metering and billing infrastructure needed for WESM operation Transco embarking on computerization of billing and collection systems WESM will provide for a spot market for electricity trading
Singapore SEI Restructuring
Ø Singapore Power, 1 Oct 1995 Ø Wholesale electricity pool, 1 April 1998 Ø EMA and EMC, 1 April 2001 Ø Very large consumers contestable, 1 July 2001 Ø New electricity market, 1 January 2003 Ø First trance contestable consumers, Sept 2004 Ø Second trance contestable consumers, 2004 Ø Full retail contestability, 2007
Thailand ESI Restructure
EGAT
Gen. IPPs INT. SPP
EGAT Transmission
Single Buyer (SB) SO
MEA PEA Direct
End User
2
1
3 5
4
6
7
8
Commercial flows
EVN Current Organization
PM
M1 M2 MOI
EVN Generation:>90%
Transmission: ~100%
Distribution: >95%
IPPs Thermal PPs
Small Hydro PPs
IPDs
Rural Low Voltage Networks
Buy Energy through PPA
Rural Customers 5.5 mil Customers Distribute Energy as Customers
Conclusion
• ESI Vertically integrated utility in some member countries • Unbundling process is on going mainly in the generation sector
• Corporatisation of EGAT is currently in progress • Good development in the Philippine’s power restructuring • Singapore is the most advanced in the power sector restructuring among the ASEAN member countries
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