Short-Term Marginal Costs: Technical Procedure No. 07 “Determining Short-Term Marginal Costs”
On June 1, 2019, Order No. 091-2019-OS/CD (“Order”) was published in the Official Gazette “El Peruano”. Main aspects of this Order are presented below as follows:
1. Order, Section 1: Item 7.5 of the Technical Procedure No. 07 “Determining Short-Term Marginal Costs” (“PR 07”) of the Economic Operation Committee of the National Interconnected System (COES) is amended in order to regulate the case to determine the Marginal Cost (CMg) in “Special Situations”. A Special Situation occurred when a bus does not have CMg because it was de-energized or is under a temporary subsystem isolated from the National Interconnected Electical System (SEIN) where the only operating powerhouse cannot set the CMg.
In case any of the aforementioned situations occur, the CMg will be equal to the available CMg of the closest bus in terms of electric impedance expressed in “per unit” (pu).
The amendment is based on the need to adapt the procedure in compliance with the Wholesale Electricity Market Regulation, Item 4.3 that included the case of compensation in the event Short-Term Marginal Costs do not cover variable costs of a generating unit or station dispatch commanded by COES.
2. Order, Section 2: Item 7.5 of the Technical Procedure is re-enumerate as Item 7.6, and the case of Special Situations is added in order of precedence to determine CMg per bus.
For further details, please contact Verónica Sattler (vsattler@estudiorodrigo.com), Alejandro Manayalle (amanayalle@estudiorodrigo.com) and/or Eduardo Ramos (eramos@estudiorodrigo.com).
