Philippine Independent Power Producers Association Inc. called for the removal of the secondary price cap at the spot market to entice investors to build more power plants.
“The secondary price cap needs to be re-evaluated, and we are pushing for a removal or at the very least gradual removal to send the correct signals to our investors,” PIPPA president and executive director Anne Estorco Montelibano said.
PIPPA has been advocating the removal of the SPC as early as 2014 to provide a proper price signal for additional investments in the generation sector.
The Energy Regulatory Commission imposed the SPC of P6.245 per kilowatt-hour upon the breach of a P9 per kWh rolling average price over three days to protect the public and prevent the repetition of excessive and unreasonable high market prices.
PIPPA said the SPC “distorts the true cost and is not reflective of the real situation of the energy sector.”