The Energy Regulatory Commission (ERC) is expediting changes to Power Purchase Agreements (PPAs) for Small Power Producers (SPP), Very Small Power Producers (VSPP), non-firm generators, and Independent Power Producers (IPP) to align pricing with actual production costs and ensure fairness for both producers and consumers.
Poonpat Leesombatpiboon, secretary-general of the Office of the Energy Regulatory Commission (OERC), stated that during its meeting yesterday, the commission reviewed progress regarding the automatic extension of PPAs for SPP and IPP operators.
The ERC agreed that agreement durations should be fixed, adhering to the principle that power rates must reflect actual generation costs, match current market conditions, and maintain an appropriate balance between producer revenue and user cost burden.
Moreover, the ERC tasked the Energy Policy and Planning Office (EPPO) with determining fair purchase pricing models and formulating policies to increase the proportion of renewable energy once current PPAs expire.
The SPP sector has a production capacity between 10-90 megawatts, while VSPP has only 10 megawatts.
