AER Oman proposes changes to IPP & IWP license to gear up for the “Spot Market”

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هذه الصفحة متوفرة بهذه اللغة: العربية

28 October 2018

MUSCAT – The Authority for Electricity Regulation (AER) announced today a proposal to amend the license of the electricity generation and water desalination companies in preparation for the Electricity and Water Exchange “Spot Market” by 2020.

The proposed changes comes in two phases. The first set of changes aim to make sure all companies have updated their systems and built the required capabilities among their employees to join the Market ones it starts operating in 2020, Abdulwahab al-Hinai, Director of Licensing and Legal Affairs at the Authority told WAF News exclusively.

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Al-Hinai said that the soft operations of the Spot Market will start in 2020 and commercial operations will follow by the end of the same   year

Al-Hinai said that the soft operations of the Spot Market will start in 2020 and commercial operations will follow by the end of the same year.

“The second set of amendments will be enforced at a later date determined by AER relating to market practices, requiring licensees to comply with market rules, providing accurate and correct information, and prohibiting any practices that would adversely affect competition in the market or to manipulate prices”, al-Hinai added.

AER’s advertisement -published today in local newspapers- stated that the aim is to “improve competition between power generation / power generation and desalination by the licensees’ compliance with market rules and related regulatory obligations”.

The Spot Market for the sector will be offering electricity and water units based on supply and demand manner. After implementation, Oman Power & Water Procurement Co. (OPWP) will purchase units competitively from the Market.

Currently, Independent Power Projects (IPPs) and Independent Water Projects (IWPs) enjoy 15-year agreements to sell their production to OPWP -the sole procurer of all electricity and water capacity in Oman- at an agreed-on price.

IPPs and IWPs will be listed on the Spot Market at the prices agreed upon in the purchase agreements with OPWP in effect. After these agreements expire, power and water untie prices will be available for trading at more competitive prices, al-Hinai explained.