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The Electricity Agreement

Dic 18, 2020 by     No Comments    Posted under: Sin categoría

The AAE distinguishes where the sale of electricity takes place with respect to the location of the buyer and seller. If electricity is delivered in a “bus bar” sale, the delivery point is on the upper side of the transformer next to the project. In this type of transaction, the buyer is responsible for transferring the seller`s energy. Otherwise, the AAE distinguishes another delivery point contractually agreed by both parties. [9] Furthermore, the AAE agreement stated that if Quezon Meralco could not provide the guaranteed minimum benefit, the VPS would have paid penalties based on Meralco`s arrival date and the ability to find other energy suppliers. In particular, the meralco SPV would pay 0.26 Philippine pesos (PHP) for every kWh it was unable to provide; This amount degenerates into PHP 0.52 per kWh if the abletaker could not obtain the necessary energy from another supplier. If Meralco was not able to purchase all or part of the production of the facility, Quezon would have the right to sell that energy to another buyer. In this case, Quezon would have the option of deducting payments from third-party buyers from Meralco`s payment obligations. The most important agreement on which project financing was developed was the 25-year PPP contract between Quezon Power (SPV) and Meralco. The PPP was structured as take-or-pay on the basis of a minimum availability factor of between 82% and 88%, or 85% on average during the 25-year contractual period.

Meralco was not exempt from payment of the monthly payments under the contract, even in case of force majeure. For 25 years, Quezon was required to provide and pay meralco for at least the minimum amount guaranteed in the AAE. The elements of the fee that Meralco paid to Quezon Power were: Power Purchase Agreement (AAE) for temporary, mobile or short-term emergency electricity contract contract to purchase temporary or emergency electricity for the purchase of electricity from a mobile facility (on skates).

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