As Pippa looks ahead from its first 24 years, it remains a champion of both the energy industry and its customers. The electricity generated by an IPP is typically sold to a third party, either to a specific distribution utility or through some form of electricity market. Pippa supported the policy by submitting a carefully designed proposed methodology for determining the price cap to the PEMC. If the price cap was set lower than the VOLL, then there would be no incentive to invest in new peaking generation capacity. Pippa suggested allowing power plants that were unable to offer any capacity to be called on only as a last resort, and without setting the market price.

Source: Manila Times November 14, 2019 16:47 UTC