Watchdog clarifies rules covering third parties

THIRD party access to the PNG Power Ltd (PPL) grid has to be endorsed by the Independent Consumer and Competition Commission and that has only been done for the Ramu Grid.
ICCC chief executive Paulus Ain said PPL and independent power producers were obliged to submit statements to ICCC before entering into power-purchase agreements (PPAs).
“The third-party access (TPA) code provides the overarching framework for third parties to sell power across a network owned by an incumbent transmission network owner such as PPL,” he said said
“It means the TPA code provides pricing mechanisms and arrangements for third parties wishing to access the transmission and distribution network of PPL.
“The commercial arrangement for sales and purchase of wholesale power is captured under a PPA.
“A PPA is a contract between an independent power producer
and the toansmission network owners.
“The TPA code further sets out the review and approval requirements, including the pricing mechanisms which are under the ICCC, to review and approve the PPA submitted by the transmission network owners.
“The TPA code has a strong emphasis on power reference prices to be set based on least-cost generation options, with the view of attaining lower retail tariff over time.”
Ain said of the three main requirements PPL had to meet, power-purchase reference points were most important.