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BACKGROUND

TERMS OF REFERENCE (TOR) FOR WG5-PROJECT 5 Regulatory Issues and Challenges of Regulated Entity/Owner/Investor and Consumers. BACKGROUND.

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BACKGROUND

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  1. TERMS OF REFERENCE (TOR) FOR WG5-PROJECT 5Regulatory Issues and Challenges of Regulated Entity/Owner/Investor and Consumers

  2. BACKGROUND The 24th Heads of ASEAN Power Utilities/Authorities (HAPUA) Council Meeting, convened in Cebu, Philippines in June 2008, has adopted a recommendation of the 8th HAPUA Working Committee (WC) Meeting to have HAPUA Working Group No. 5 on Electricity Supply Industry Services (WG5) form a Project No. 5 on “Regulatory Issues and Challenges of Regulated Entity/ Owner/ Investor and Consumers”, which was identified as one of the key issues in ESI development/restructuring.

  3. OBJECTIVES • To share the experiences and strategies of regulated entities/utilities on common issues and challenges in the regulation of ESI in the ASEAN; • To identify differences in the regulation of VIU and Unbundled Electricity industries; • To explore possible acceptable position in addressing the regulators’ policies and prerogatives common in the regulation of ESI in the ASEAN;

  4. To come up with suggestions for a more acceptable balance between the interests of the regulated entities/owners/investors and the interests of consumers for the consideration of electricity regulators; • To identify regulatory and legal challenges related to cross-border trading/transactions following the experiences of past ESI transactions between ASEAN member-countries with the goal of providing inputs to the various contractual models that may be used in consonance with the implementation of the ASEAN Power Grid.

  5. DELIVERABLES • A Summary Report on the strategies and experiences of regulated entities/utilities on common issues and challenges in the regulation of ESI in the ASEAN • Suggestions for coming up with a more acceptable balance between the interests of the regulated entities/owners/investors and the interests of consumers.

  6. Information and recommendation on the regulatory and legal challenges/issues related to cross-border electricity trading/transactions following the experience and examples of past ESI transactions between ASEAN member-countries; • Provide regulatory and legal inputs to contractual models that may be used in consonance with the implementation of the ASEAN Power Grid.

  7. SCOPE • Industry Structure and Responsibilities of Regulator and Regulated Entity/Owner/Investor and Consumers • Regulatory Environment and Framework • Industry Reforms/Regulations in place to achieve the following: • Forging competition • Ensuring adequacy of supply • Maintaining secure, quality and reliable electricity system • Promoting high level of performance efficiency in the industry • Achieving total electrification of the country • Providing reasonable returns to owners/investors • Safeguarding consumer interest • Best Practices in Regulation • Challenges in Regulation • Challenges on regulatory and legal cross-border electricity trading/ transaction

  8. PROJECT LEADER AND MEMBERS PROJECT LEADER Philippines – National Power Corporation (NPC) and National Transmission Corporation (TransCo) PROJECT MEMBERS The Project 5 is open to all HAPUA member countries and utilities. Each HAPUA member utility shall designate one (1) representative to Project 5 as a member and other participants, if any, to be observers. The representatives are preferably personnel involved in the regulatory concerns of each member utility.

  9. HOST AND VENUE OF MEETING The first meeting of Project 5 shall be organized by the HAPUA Secretariat and PLN in Jakarta. Host and venue of additional meeting(s) shall be as agreed upon by the Project members

  10. TIMELINE • To start the Project Implementation in January 2009. • To report the Project progress to the HAPUA Council in the next meeting tentatively scheduled in May/June 2009. (Coordinate with WG 5-Project No. 6) • To complete the Project by June of 2010. (Tentative)

  11. PROJECT ACTION PLAN

  12. CONTACT PERSON Atty. Melchor P. Ridulme VP – General Counsel National Power Corporation (NPC) Quezon Avenue corner BIR Road, Diliman 1100 Quezon City, Philippines Tel. +632 921-3518 Fax +632 926-1837 E-mail: MPRidulme@napocor.gov.ph and RKEYbanez@napocor.gov.ph

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