Guidelines

For Single Buyer Market

(Peninsular Malaysia)

Registration Record 

Guidelines for Single Buyer                                                                      GP/ST/No. 16 /2018 

Market (Peninsular Malaysia)

ELECTRICITY SUPPLY ACT 1990 [Act 447] 

GUIDELINES FOR SINGLE BUYER MARKET (PENINSULAR MALAYSIA) 

GP/ST/ No. 16/2018 

IN exercise of the power conferred by Section 50C of the Electricity Supply Act 1990 [Act 447], the Energy Commission issues the following Guidelines: 

Purposes 

1. Malaysia adopts a Single Buyer Market model in managing its electricity supply industry. An entity called Single Buyer is entrusted to manage procurement of electricity and related services in Peninsular Malaysia. The “Single Buyer Rules” was issued by the Energy Commission on 9 April 2013. 

2. In line with the amendments to the Electricity Supply Act 1990 (Act 447), a new Guidelines has to be issued to govern the operation the Single Buyer Market. These Guidelines shall set out the roles, functions of the Single Buyer and the detailed procedures and conducts in performing each function. It also sets out the ring-fencing requirements to ensure that the Single Buyer performs its functions and duties in a fair and nondiscriminatory manner in managing the contracts or agreements for the purchase of electricity on behalf of the off-taker. 

Interpretation 

3. In these Guidelines, the terms and expressions used shall, unless defined in the Guidelines or the context otherwise requires, have the same meaning as in the Electricity Supply Act 1990, including any modification, extension or re-enactment thereof and any subsidiary legislation made there under. 

Citation and Commencement 

4. These Guidelines may be cited as the “Guidelines for Single Buyer Market (Peninsular Malaysia)” and shall come into operation on the date of its registration.  

Content of the Guidelines  

5. The contents of these Guidelines shall be as follows: 

i)              Single Buyer Market Rules as in ANNEX 1  

ii)             Ring-Fencing Practices and Procedures for Single Buyer as in ANNEX 2. 

Application of the Guidelines 

6. These Guidelines shall apply to all participants who participate in the Single Buyer Market such as Single Buyer, Generators, Grid System Operators, Grid Owner and any parties connected to the electricity transmission network and who is licenced under Section 9 of the Electricity Supply Act 1990, or any person as notified by the Energy Commission. 

7. Under the present arrangement, these Guidelines shall be applicable only in Peninsular Malaysia. 

Notice by the Commission 

8. The Energy Commission may issue written notices from time to time in relation to these Guidelines.      

Amendment and Variation   

9. The Energy Commission may at any time amend, modify, vary or revoke these Guidelines or any part thereof, under any of the following circumstances: 

i)              to effect changes in the electricity supply industry; 

ii)             where it is expedient to ensure reliability of the electricity supply system; 

iii)           to rectify any inconsistency or unintentional errors giving rise to grave consequences; 

iv)            as recommended by the Grid Code Committee or Oversight Panel and approved by the Energy Commission; and 

v)             any other justifiable reason as the EnergyCommission deems necessary. 

Dated:  18 April 2018

ANNEX   1: 

SINGLE BUYER MARKET RULES

Contents 

1  Introduction                                                                                                                              9 

1.1  Single Buyer Market Rules                                                                                                       9 

1.2  Standing of the Single Buyer Market Rules                                                                                9 

1.3  Limitation of liability                                                                                                               9 

1.4  Derogations for existing contracts or agreements                                                                    10 

1.5  Conventions                                                                                                                         10 

2  Terms and definitions                                                                                                               11 

3  Single Buyer Market Participants                                                                                                30 

3.1  Purpose                                                                                                                                30 

3.2  Participants                                                                                                                           30 

3.3  Generator                                                                                                                             30 

3.4  Grid System Operator                                                                                                            31 

3.5  Grid Owner                                                                                                                           31 

3.6  Distributor                                                                                                                            31 

3.7  Nominated Coal Supplier                                                                                                        31 

3.8  Nominated Gas Supplier                                                                                                         31 

3.9Single Buyer                                                                                                                           31 

3.10   Registration                                                                                                                       32 

3.11   Ceasing to be a Participant                                                                                                  32 

4  Objectives of the Single Buyer                                                                                                   33 

4.1  Purpose                                                                                                                                33 

4.2  Objectives                                                                                                                            33 

5  Roles and functions of the Single Buyer                                                                                      34 

5.1  Purpose                                                                                                                                34 

5.2  Roles of the Single Buyer                                                                                                        34 

5.3  Role in procuring electricity to meet demand                                                                            34 

5.4  Role in Facilitating Security of Electricity Supply                                                                        35 

5.5  Role in Monitoring The Adequacy of The Supply of Fuel                                                              35 

5.6  Role in Promoting Transparency                                                                                               36 

5.7  Role in Facilitating Competition in the Generation Sector                                                            36 

5.8  Role in Promoting Confidence in the Electricity Industry                                                             37 

6  Ring-fencing                                                                                                                             38 

6.1  Purpose                                                                                                                                 38 

6.2  Non-discrimination                                                                                                                 38 

6.3  Ring-fencing of operations                                                                                                      38 

6.4  Ring-fencing of accounts                                                                                                        39 

6.5  Cost allocation                                                                                                                       39 

6.6  Limits on sharing information                                                                                                  40 

6.7  Compliance with ring-fencing obligations                                                                                  40 

7  Single Buyer governance                                                                                                            41 

7.1  Purpose                                                                                                                                  41 

7.2  Appointment of the Head of the Single Buyer                                                                             41 

7.3  Single Buyer Oversight Panel                                                                                                    41 

7.4  Compliance with  Single Buyer Market Rules                                                                              42 

7.5  Generator contracts and NEDA Rules                                                                                         42 

7.6  Single Buyer Working Groups                                                                                                   43 

8  Least Cost Dispatch Scheduling Methodology                                                                                45 

8.1  Purpose                                                                                                                                  45 

8.2  Least Cost Dispatch Scheduling Methodology                                                                             45 

8.3  Dispatch Scheduling Model                                                                                                       45 

9  Three Month Ahead Dispatch Schedule                                                                                         47 

9.1  Purpose                                                                                                                                  47 

9.2  Key procedural requirements                                                                                                    47 

9.3  Three Month Ahead Dispatch Period                                                                                          47 

9.4  Three Month Ahead Load Forecast                                                                                            47 

9.5  Generating Unit Operating Data                                                                                                47 

9.6  Three Month Ahead Generation Outage Plan                                                                              48 

9.7  Three Month Ahead Transmission Outage Plan                                                                           48 

9.8  Other Dispatch Scheduling Model inputs                                                                                   48 

9.9  Three Month Ahead Dispatch Schedule                                                                                     48 

10  Week Ahead Dispatch Schedule                                                                                                 49 

10.1  Purpose                                                                                                                               49 

10.2  Key procedural requirements                                                                                                 49 

10.3 Weekly Dispatch Scheduling Model Update Date                                                                       49 

10.4  Week Ahead Load Forecast                                                                                                    49 

10.5  Week Ahead Generation Outage Plan                                                                                      50 

10.6  Week Ahead Transmission Outage Plan                                                                                   50 

10.7  Other Dispatch Scheduling Model inputs                                                                                 50 

10.8  Week Ahead Dispatch Schedule                                                                                             50 

11  Day Ahead Dispatch Schedule                                                                                                  51 

11.1  Purpose                                                                                                                              51 

11.2  Key procedural requirements                                                                                                51 

11.3  Day Ahead Dispatch Period                                                                                                   51 

11.4Day Ahead Load Forecast                                                                                                       51 

11.5Daily Availability Declaration                                                                                                  51 

11.6  Day Ahead Transmission Outage Plan                                                                                   52 

11.7  Other Dispatch Scheduling Model inputs                                                                               52 

11.8  Day Ahead Dispatch Schedule                                                                                             53 

11.9  Revised Day Ahead Dispatch Schedule                                                                                 53 

11.10  Review of Revised Day Ahead Load Forecast                                                                       54 

11.11  Review of Revised Day Ahead Dispatch Schedule                                                                54 

11.12  Review of System Marginal Price                                                                                       54 

12  Supply capacity adequacy assessment                                                                                   55 

12.1  Purpose                                                                                                                           55 

12.2  Short-term supply adequacy assessment                                                                            55 

12.3  Short-Term Supply Adequacy Plan                                                                                      55 

12.4  Demand Control Plan                                                                                                        55 

12.5         One Year Demand and Supply Outlook                                                                        56 

13  Fuel Management                                                                                                                57 

13.1  Purpose                                                                                                                           57 

13.2  Gas Supply Committee                                                                                                     57 

13.3  Urgent Gas Procedures                                                                                                     58 

13.4  Coal Supply Committee                                                                                                    58 

13.5  Urgent Coal Procedures                                                                                                    60 

13.6  Hydro generation                                                                                                             60 

14  Single Buyer Tariff                                                                                                               61 

14.1  Purpose                                                                                                                           61 

14.2  Single Buyer Tariff setting arrangements                                                                            61 

14.3  Single Buyer Generation Tariff                                                                                           62 

14.4  Single Buyer Operations Tariff                                                                                           62 

14.5  Settlement                                                                                                                      63 

15  Long-term supply and demand                                                                                             64 

15.1  Purpose                                                                                                                           64 

15.2  Ten Year Demand and Supply Forecast Report                                                                     64 

16  Contracting for new capacity                                                                                                 66 

16.1  Purpose                                                                                                                            66 

16.2  Role of the Energy Commission                                                                                           66 

16.3  Initiation of Process for Contracting for New Capacity                                                           66 

16.4  Development of Tenders for New Capacity                                                                           67 

16.5  Assessment of Tenders for New Capacity                                                                             67 

16.6  Finalisation                                                                                                                       68 

17  Dispute resolution                                                                                                                69 

17.1  Purpose                                                                                                                            69 

17.2  Application of Dispute Resolution Process                                                                            69 

17.3  Raising a Dispute                                                                                                              70 

17.4  Disputes Referred to KLRCA                                                                                               70 

17.5  Disputes heard and determined by the Energy Commission                                                  70 

18  Change to Single Buyer Market Rules                                                                                    72 

18.1  Purpose                                                                                                                           72 

18.2  Role of the Energy Commission                                                                                          72 

18.3  Rule Change Panel                                                                                                            72 

18.4  Submission of Rule Change Proposal                                                                                  73 

18.5  Initial Assessment of a Rule Change Proposal                                                                      73 

18.6  Draft Rule Change Recommendation                                                                                   74 

18.7  Final Rule Change Recommendation                                                                                   74 

18.8  Final Rule Change Decision                                                                                                75 

18.9  Minor Rule Change Procedures                                                                                           75 

18.10  Urgent Rule Change Procedures                                                                                       76 

19  Single Buyer Website and publications                                                                                  77 

19.1  Purpose                                                                                                                           77 

19.2  Single Buyer Website                                                                                                        77 

19.3  Publications                                                                                                                     77 

19.4  Confidentiality Obligations                                                                                                 78 

20  Appendices                                                                                                                         79 

20.1  Purpose                                                                                                                           79 

20.2  Flow chart of the Three Month Ahead Dispatch Schedule                                                      79 

20.3  Flow chart of the Week Ahead Dispatch Schedule                                                                80 

20.4  Flow chart of the Day Ahead Dispatch Schedule                                                                  81 

1Introduction 

1.1    Single Buyer Market Rules 

1.1.1The Single Buyer Market Rules govern the operation of the Single Buyer Market and conduct of Participants in complying with the Single Buyer Market Rules. 

1.1.2The Single Buyer Market Rules shall apply in Peninsular Malaysia and shall be governed by the laws of Malaysia. 

1.2    Standing of the Single Buyer Market Rules 

1.2.1   The Single Buyer Market Rules apply in conjunction with the following documents: 

a)              the Electricity Supply Act 1990; 

b)              the Energy Commission Act 2001; 

c)              the Grid Code For Peninsular Malaysia; 

d)              the Distribution Code For Peninsular Malaysia;  

e)              regulations, guidelines or directions issued by the Minister or Energy 

 Commission except for NEDA Rules; 

f)               the Licences issued by the Energy Commission under the Electricity Supply Act 1990; and 

g)              the Generator Contracts. 

1.2.2In the event of any inconsistency or conflict between the Single Buyer Market Rules and the documents listed in Rule 1.2.1, those documents listed in Rule 1.2.1 are to take precedence over the Single Buyer Market Rules. 

1.3    Limitation of liability 

1.3.1The Single Buyer shall not incur any liability for an act or omission in the performance, or purported performance, of a function of the Single Buyer under the Single Buyer Market Rules including any liability for any loss to any Participant during any constraint of the Grid System or Emergency Condition. 

1.3.2Participants are solely responsible for their own operations and participation in the Single Buyer Market and in no even shall the Single Buyer be liable for any damage or destruction of property, or any death or personal injury to any person. 

1.3.3All material and information published in good faith by the Single Buyer on the Single Buyer Website is for general information purposes only, All Participants shall solely be responsible for their interpretation and use of the published material and information. There is no representation or warranty (express or implied) of any kind whatsoever that the material and information published are accurate, complete or reasonable, or that they constitute all the information necessary for participation in the Single Buyer Market. Any reliance is strictly at the Participant’s own risk. 

1.4    Derogations for existing contracts or agreements 

1.4.1 If any contract, agreement or arrangement exists at the date these Single Buyer Market Rules come into force the Energy Commission shall make a determination whether the technical conditions of the specific contract, agreement or arrangement are in line with the provisions of the Single Buyer Market Rules in consultation with the Single Buyer and Grid System Operator. 

1.4.2 If the technical conditions of the specific contract, agreement or arrangement are in line with the provisions of the Single Buyer Market Rules then the Single Buyer Market Rules shall prevail. 

1.4.3 If the technical conditions of the specific contract, agreement or arrangement preclude compliance with certain provisions of the Single Buyer Market Rules then an appropriate specific Derogation will be issued to the Participant, by the Energy Commission after consultation with the Single Buyer and Grid System Operator. 

1.4.4The provision of a specific technical derogation or exemption does not release the Derogated Party from compliance with all other provisions of the Single Buyer Market Rules and the provisions of any commercial agreement or from any commercial liability arising from such technical derogation or exemption. 

1.5    Conventions

1.5.1   In the Single Buyer Market Rules, unless the contrary intention appears: 

a)              a capitalised word or phrase listed in the terms and definitions in Chapter 2  has the meaning given in that Chapter; 

b)              the singular includes the plural and the plural includes the singular; 

c)              headings are for convenience only and do not affect the interpretation of  the Single Buyer Market Rules; 

d)              a reference to a person includes an individual, company, trust, partnership,  joint venture, association, corporation or other body corporate and any   government agency; 

e)              a reference to a thing includes the whole and any part of it; 

f)               a reference to a rule, chapter or appendix is a reference to a rule, chapter or  appendix in the Single Buyer Market Rules; 

g)              “function” includes a function, power, duty, responsibility and authority; 

h)              the words “include” or “including” are not used as, nor are they to be  interpreted as words of limitation, and when introducing an example, do  not limit the meaning of the words to which the example relates. 

^{_{2 Terms and Definitions}} 

Terms and Definitions

^{_{3 Single Buyer Market Participants}} 

3.1    Purpose 

3.1.1This Chapter sets out and describes the various categories of Participant in the Single Buyer Market and the registration procedures. All Participants have different rights and obligations under the Single Buyer Market Rules and must be registered by the Energy Commission.  

3.2    Participants

3.2.1   The different categories of Participant are as follows: 

a)              Generator; 

b)              Grid System Operator; 

c)              Grid Owner; 

d)              TNB Distribution; 

e)              Nominated Coal Supplier; 

f)               Nominated Gas Supplier;  

g)              Single Buyer; 

h)              NEDA Participants; and 

i)               any other party approved by the Energy Commission. 

3.3    Generator 

3.3.1A person engaged in the activity of owning, controlling or operating a Generating Unit that is connected to the Transmission Network or Distribution Network shall not be a Participant in the Single Buyer market unless that person is registered as a Generator. 

3.3.2As part of the registration process, every Generator shall classify each of its Generating Units as: 

a)              a Centrally Dispatched Generating Unit; or 

b)              a Non Centrally Dispatched Generating Unit. 

3.3.3A Generating Unit connected to either the Transmission Network or the Distribution Network with a nameplate rating of not less than 30 MW shall be classified as a Centrally Dispatched Generating Unit, unless the Energy Commission approves its classification as a Non Centrally Dispatched Generating Unit. 

3.3.4A Centrally Dispatched Generating Unit shall be scheduled for dispatch based on the Least Cost Dispatch Scheduling Methodology and in accordance with the provisions of the Rules. 

3.3.5Upon registration as a Centrally Dispatched Generating Unit, a PPA/SLA Generator operating a Centrally Dispatched Generating Unit shall provide the Energy Commission with a Generator Contract. 

3.3.6Merchant Generators shall register with the Energy Commission in accordance with the NEDA Rules. Registration in accordance with the NEDA Rules shall be considered as registration as a Participant in the Single Buyer market in accordance with this Rule 3.   

3.3.7A Generating Unit connected to either the Transmission Network or the Distribution Network with a nameplate rating of less than 30 MW shall be classified as a Non Centrally Dispatched Generating Unit, unless the Energy Commission approves its classification as a Centrally Dispatched Generating Unit. 

3.3.8A Non Centrally Dispatched Generating Unit need not be dispatched based on the Least Cost Dispatch Scheduling Methodology. 

3.4    Grid System Operator  

3.4.1A person engaged in the activity of real time scheduling, dispatch and control of the Grid System shall not be a Participant in the Single Buyer market unless that person is registered as a Grid System Operator.  

3.5    Grid Owner  

3.5.1A person engaged in the activity of owning, controlling or operating a Transmission Network shall not be a Participant in the Single Buyer market unless that person is registered as a Grid Owner. 

3.6    Distributor  

3.6.1    A person engaged in the activity of owning, controlling or operating a Distribution Network shall not be a Participant in the Single Buyer market unless that person is registered as a Distributor. 

3.7    Nominated Coal Supplier  

3.7.1 A person engaged in the activity of supplying coal for electricity generation in  Peninsular Malaysia where the annual quantity of coal procured is forecast to exceed one third of the total annual quantity of coal required by the coal Generators  for electricity generation in Peninsular Malaysia shall not be a Participant in the  Single Buyer market unless that person is registered as a Nominated Coal Supplier. 

3.8    Nominated Gas Supplier  

3.8.1A person engaged in the activity of supplying gas for electricity generation in Peninsular Malaysia shall not be a Participant in the Single Buyer Market unless that person is registered as a Nominated Gas Supplier. 

3.9    Single Buyer  

3.9.1A person, unit, department or division authorised by the Energy Commission to be responsible for the management of procurement of electricity and related services, which includes scheduling, procuring and settlement shall not be a Participant in the Single Buyer Market unless that person is registered as a Single Buyer in accordance with the registration process outlined in Rule 3.10.

3.10 Registration

3.10.1All Participants that are registered shall comply with the provisions of the Single Buyer Market Rules that apply to the registered Participant from the Commencement Date. 

3.10.2Applications for registration shall be submitted to the Energy Commission in a form specified by the Energy Commission and must demonstrate the following: 

a)              that the potential Participant is willing and able to comply with the relevant obligations of the Single Buyer Market Rules;   

b)              that the potential Participant is not under external administration or under  a similar form of administration under any laws applicable to it in any  jurisdiction; and 

c)              such other matters as the Energy Commission may consider necessary. 

3.10.3The Energy Commission shall within twenty-eight (28)  Working Days after receiving an application (or reapplication) for registration either: 

a)         approve the registration of the applicant if it is satisfied that the applicant is  able to comply with the relevant provisions of the Single Buyer Market 

 Rules and meets the requirements specified in Rule 3.10.2; or 

b)         not approve the application for registration and seek further clarification  and information from the applicant. 

3.10.4Subject to the confirmation from Energy Commission to the Single Buyer of the registration status of each respective Participant, the Single Buyer shall maintain a list of the Participants on the Single Buyer Website, and list any newly approved Participants on the Single Buyer Website within three (3) Working Days of approving the registration. 

3.10.5 The Energy Commission shall have the absolute discretion in determining the  eligibility criteria for registration as Participants and reserves the right to reject applications for any reason whatsoever. 

3.11 Ceasing to be a Participant 

3.11.1A Participant shall notify the Energy Commission in writing via an application for deregistration if it wishes to cease being a Participant. 

3.11.2The Energy Commission shall within twenty-eight (28) Working Days after receiving an application (or reapplication) for de-registration either: 

a)         approve the de-registration of the applicant if it is satisfied that the  applicant should no longer be required to comply with the relevant  provisions of the Single Buyer Market Rules; or 

b)         not approve the application for de-registration and seek further clarification  and information from the applicant. 

3.11.3The Energy Commission shall remove a successful applicant’s details from the list of Participants on the Single Buyer Website within three (3) Working Days of approving an application for de-registration.  

^{_{4 Objectives of the Single Buyer}} 

4.1    Purpose 

4.1.1This Chapter sets out the objectives that the Single Buyer shall seek to achieve in undertaking its roles and performing its functions under the Single Buyer Market Rules as defined hereinafter. 

4.2    Objectives 

4.2.1   The objectives of the Single Buyer are as follows: 

a)              to minimise the cost of electricity procurement to meet demand, subject to: 

(i)      consistency with the terms of the Generator Contracts; 

(ii)    generation and transmission network constraints; and 

(iii)    any other requirements relevant to the Single Buyer as specified in the 

Grid Code For Peninsular Malaysia, 

b)              to promote transparency in the procurement of electricity by ensuring that  it undertakes its functions in a transparent manner, subject to any  constraints imposed by the terms and conditions of Generator Contracts, 

 Daily Heat Rate and Variable Operating Rate Bids and Daily Price Bids; 

c)              to facilitate competition in the generation sector and promote confidence in   the Electricity Industry by ensuring that it performs its functions in a fair and  balanced manner and in compliance with the Single Buyer Market Rules;  and 

d)              to facilitate security of electricity supply by proactively reporting any issues  it identifies that may adversely affect security of supply to the Energy  Commission. 

^{_{5 Roles and Functions of the Single Buyer}} 

5.1      Purpose 

5.1.1This Chapter sets out the roles of the Single Buyer and each of the functions performed by the Single Buyer in undertaking its roles. All the roles and functions as set out in this chapter are in line with the Electricity Supply Act 1990 and regulations made thereunder. The detailed procedure in performing each of the functions is set out in the following Chapters of the Single Buyer Market Rules. 

5.2      Roles of the Single Buyer 

5.2.1   The roles of the Single Buyer are as follows: 

a)              to procure electricity to meet demand (and related services to meet the 

 Operating Reserve requirements) at least cost;

b)              to facilitate security of electricity supply; 

c)              to monitor the adequacy of the supply of fuel to Generators; 

d)              to promote transparency in the performance of its functions; 

e)              to facilitate competition in the generation sector; and 

f)               to promote confidence in the Electricity Industry. 

5.3      Role in procuring electricity to meet demand 

5.3.1The Single Buyer shall purchase electricity from Generators on a least cost basis in accordance with the terms and conditions of the Generator Contracts, Daily Heat Rate and Variable Operating Rate Bids and Daily Price Bids. In procuring electricity the Single Buyer must take into consideration the generation and transmission network constraints and configuration and all relevant system security and safety parameters as specified in the Grid Code For Peninsular Malaysia. 

5.3.2The Single Buyer shall perform the following functions in relation to its role in procuring electricity to meet demand: 

a)              produce the Three Month Ahead Dispatch Schedule;

b)              produce the Week Ahead Dispatch Schedule; 

c)              produce the Day Ahead Dispatch Schedule; 

d)              settle Generators’ invoices consistent with the terms and conditions of  Generator Contracts, Daily Heat Rate and Variable Operating Rate Bids and 

 Daily Price Bids; and  

e)              administer the Single Buyer Tariff consistent with the requirements of the  regulatory framework for tariff setting administered by the Energy  Commission. 

5.4      Role in Facilitating Security of Electricity Supply 

5.4.1The Single Buyer shall facilitate security of electricity supply by maintaining oversight of demand and supply issues in the performance of its dispatch scheduling functions and in its functions in assessing long term supply and demand conditions. In the event that the Single Buyer becomes aware of any shortfall in generation capacity it shall notify the Energy Commission, prepare a generation planning report and work collaboratively with Participants to address any such shortfall. 

5.4.2The Single Buyer shall perform the following functions in relation to its role in facilitating security of electricity supply: 

a)              identify any shortfall in the short term adequacy of supply in the  preparation of the Three Month Ahead Dispatch Schedule and Week Ahead  Dispatch Schedule and notify the Energy Commission as soon as it is aware  of such a shortfall; 

b)              develop a Short Term Supply Adequacy Plan for addressing any short term  supply constraints; 

c)              produce a Ten Year Demand and Supply Forecast Report; 

d)              identify any projected shortfall in generation capacity, prepare a a Ten Year Generation Planning Report (if required) to identify options for the timing  and type of new generation capacity required and immediately notify the 

                         Energy Commission of any such shortfall; and 

e)              undertake verification studies to assist the Energy Commission in the  verification of transmission development plan submitted by Grid Owner  under License condition. 

5.5      Role in Monitoring The Adequacy of The Supply of Fuel 

5.5.1The Single Buyer shall monitor the adequacy of the supply of fuel to Generators and notify the Energy Commission of any issues identified, including monitoring the adequacy of gas, coal and hydro levels to meet the Week Ahead Dispatch Schedule and the Three Month Ahead Dispatch Schedule and responding to and monitoring any unplanned curtailment or disruption to the planned supply and delivery of forecast quantities of gas and coal and managing the impact of weather or riparian requirements on Hydro Plants. 

5.5.2The Single Buyer shall perform the following functions in relation to its role in monitoring the supply of fuel to Generators: 

a)         participate in a Gas Supply Committee to monitor the adequacy and security   of gas supply for electricity generation and the efficiency and effectiveness  of gas procurement by the Nominated Gas Supplier; 

b)         follow the process as stipulated in the Gas Framework Agreement or any   other agreement as instructed by the Energy Commission; 

c)          participate in a Coal Supply Committee to monitor the adequacy of coal  supply for electricity generation and the efficiency and effectiveness of coal   procurement by the Nominated Coal Supplier; 

d)         develop a plan for the use of Stand-by Fuel to make up for loss of gas based  generation or loss of coal based generation; and 

e)         develop an annual Hydro Plant Management Plan to manage hydro  generation capacity and lake levels for storage-based schemes and plan for  the optimum utilisation of Hydro Plants. 

5.6      Role in Promoting Transparency 

5.6.1The Single Buyer shall promote transparency by ensuring that it performs its functions in a transparent and consistent manner. The Single Buyer shall ensure that it publishes information with regard to the performance of its functions and ensure that such information is accurate, concise, understandable and readily accessible to Participants, stakeholders and the general public. The Single Buyer shall also perform its functions in a spirit of collaboration with Participants, ensuring that Participants are given the opportunity to participate in any Single Buyer Working Groups and consultations that the Single Buyer considers are necessary to assist it in performing its functions. 

5.6.2The Single Buyer shall perform the following functions in relation to its role in promoting transparency: 

a)         develop and maintain the Single Buyer Website. The Single Buyer Website   shall publish information with regard to the performance of the Single  Buyer functions, as required pursuant to Rule 19,3,subject to the  confidentiality provisions in the Generator Contracts; and 

b)         establish Single Buyer Working Groups comprising appropriate  representatives from Participants and other stakeholder groups. The Single  Buyer Working Groups shall review processes and outcomes and  recommend Rule Changes where appropriate.  

5.7      Role in Facilitating Competition in the Generation Sector 

5.7.1The Single Buyer shall facilitate competition in the generation sector by performing its functions in relation to the tendering for new capacity in a fair and balanced manner. The Single Buyer shall also ensure that it performs its dispatch functions in a manner that is consistent with principles of least cost and is also consistent with the terms and conditions of Generator Contracts Daily Heat Rate and Variable Operating Rate Bids and Daily Price Bids as required by the Single Buyer Market Rules and the NEDA Rules. 

5.7.2The Single Buyer shall ensure that it negotiates the terms and conditions of Generator Contracts in a fair and balanced manner that does not unreasonably discriminate against any party and ensures fair and reasonable terms and conditions for participation in the generation sector for all parties.        

5.8      Role in Promoting Confidence in the Electricity Industry 

5.8.1The Single Buyer shall promote confidence in the Electricity Industry by performing its functions in relation to the tendering for new capacity in a fair and balanced manner and in compliance with the Single Buyer Market Rules. The Single Buyer shall identify circumstances where interaction with other divisions and units of TNB may give rise to a conflict of interest, lessening of competition or competitive advantage and implement appropriate operational ring-fencing procedures. 

5.8.2The Single Buyer shall perform the following functions in relation to its role in promoting confidence in the Electricity Industry: 

a)              ensure its compliance with the Single Buyer Market Rules, and notify the   Energy Commission in the event that it becomes aware of any non compliance with the Single Buyer Market Rules, either on the part of the 

 Single Buyer or another Participant to the Single Buyer Market Rules; and 

b)              monitor compliance with the Generator Contracts.

^{_{6 Ring-fencing}} 

6.1      Purpose 

6.1.1This Chapter sets out the ring-fencing requirements to ensure that the Single Buyer is able to meet its ring-fencing obligations under the Electricity Supply Act 1990  and perform its functions in a fair and non-discriminatory manner, promoting competition in the generation sector and confidence in the Electricity Industry. 

6.1.2The ring-fencing requirements are also a key aspect of the Energy Commission’s regulatory framework and are a fundamental requirement for the establishment of the Single Buyer Tariff arrangements set out in Chapter 14. 

6.2       Non-discrimination 

6.2.1Subject to Rule 6.2.2, in performing its functions under the  Single Buyer Market Rules the Single Buyer shall ensure that it does not make decisions or act in a manner that unreasonably discriminates against any other Participant by: 

a)              offering terms and conditions for a Generator Contract that are less  favourable than those available to a Related Party; or 

b)              favouring a Related Party in developing the Dispatch Schedules. 

6.2.2Subject to Rule 6.2.3, the Energy Commission shall decide upon whether behaviour of the Single Buyer is unreasonably discriminatory on a case by case basis. In doing so, the Energy Commission shall have regard to: a)  the Grid Code For Peninsular Malaysia; 

b)              the Generator Contracts; 

c)              the Single Buyer objectives under Rule 4.2; and  

d)              any other matters it considers relevant. 

6.2.3Any action required of the Single Buyer under the Grid Code For Peninsular Malaysia or Generator Contracts shall not be deemed to be discriminatory.  

6.3      Ring-fencing of operations 

6.3.1So long as the Single Buyer is a unit, division, or subsidiary of TNB, then in performing its functions under the Single Buyer Market Rules, the Single Buyer shall implement appropriate operational ring-fencing procedures to address the potential conflict of interest, lessening of competition or competitive advantage. Such ringfencing procedures may include, but are not limited to: 

a)         limitations on employees of the Single Buyer participating in committees,  working groups, and meetings concerning tendering for new generation  capacities and strategic developments of TNB;

b)         establishing a work area that is separate from the work areas of other  divisions and units within TNB that may obtain a competitive advantage  from information held by the Single Buyer with access controls that prevent  staff of either the Single Buyer or other divisions or units from entering into  the work area of the other; and 

c)          access controls for the Single Buyer information technology systems so that  other users of information technology systems (other than an outsourced  information communication and technology service provider) cannot access information held by the Single Buyer that may give rise to a conflict of  interest, lessening of competition or competitive advantage. 

6.4      Ring-fencing of accounts 

6.4.1    The Single Buyer shall establish and maintain a separate set of Single Buyer Accounts relating to the performance of its functions as a Single Buyer. 

6.4.2The Single Buyer shall prepare the Single Buyer Accounts, which must be signed off by the Head of the Single Buyer and submitted to TNB for approval before submission to the Energy Commission.  

6.4.3The Single Buyer Accounts shall be consistent with the requirements of the Energy Commission’s regulatory framework and must, at a minimum, include a profit and loss statement and a statement of assets. 

6.4.4   The profit and loss statement must comprise the following details: 

a)              revenue based on the Single Buyer Tariff, comprising the Single Buyer Generation Tariff and Single Buyer Operations Tariff; 

b)              payments to, and receipts from, Generators based on Generator Contracts  and Settlements; 

c)              payments to, and receipts from, other jurisdictions in relation to imports  and exports of electricity; 

d)              operating expenditure incurred by the Single Buyer in performing its  functions; 

e)              allocation of corporate overheads; and 

f)               book depreciation. 

6.4.5The statement of assets must include all Single Buyer’s assets, and be able to accurately account for the value, age and useful life of the assets required for the performance of the Single Buyer functions. 

6.4.6The statement of assets must be an automatically generated report from TNB financial systems. 

6.4.7The Single Buyer Accounts shall be subject to audit at least annually and submitted to the Energy Commission. 

6.5      Cost allocation 

6.5.1TNB shall ensure that any costs that are shared between the Single Buyer and any other division or business unit within TNB are allocated between these parties in accordance with a cost allocation methodology that is consistent with the Incentive Based Regulation and Regulatory Implementation Guidelines issued by the Energy Commission, or is otherwise consistent with any cost allocation rules developed by the Energy Commission. 

6.6      Limits on sharing information 

6.6.1The Single Buyer shall ensure that to the extent that it has access to information about other Participants that may give cause to a conflict of interest, lessening of competition or competitive advantage to TNB in either its existing generation activities or when contracting for additional capacity, the Single Buyer shall not divulge this information to any other party, except to the extent required in the performance of its functions under the Single Buyer Market Rules. 

6.6.2The Single Buyer shall not disclose any information that is confidential to TNB or any other party, except to the extent required in the performance of its functions under the Single Buyer Market Rules. 

6.7       Compliance with ring-fencing obligations 

6.7.1The Energy Commission may undertake any such actions that it considers necessary to monitor the compliance of the Single Buyer with the ring-fencing principles set out in this Chapter, including, but not limited to: 

a)              requiring the Single Buyer to prepare a statement of compliance  

 demonstrating how it is in compliance with the ring-fencing principles; 

b)              issuing rules which set out detailed ring-fencing requirements in addition to  the principles contained in this Chapter; and 

c)              requiring the Single Buyer to furnish it with any such information necessary  to satisfy the Energy Commission that the Single Buyer is compliant with the  ring-fencing principles. 

6.7.2In the event that the Single Buyer is uncertain about the potential for a conflict of interest, lessening of competition or competitive advantage, the Single Buyer shall consult with the Energy Commission to determine whether or not such potential exists. 

6.7.3Where the Single Buyer considers that it is unable to comply with the conditions set out in this Chapter, it shall consult with the Energy Commission to determine an appropriate course of action to address any non-compliance or minimise the potential impacts of any non-compliance. 

^{_{7 Single Buyer Governance}}  

7.1      Purpose 

7.1.1This Chapter outlines the governance arrangements for the Single Buyer including independent oversight of the Single Buyer, requirements for the Single Buyer to comply with the Single Buyer Market Rules, the establishment of Single Buyer Working Groups to add transparency to the Single Buyer functions and the Single Buyer’s role in monitoring compliance with the Generator Contracts.  

7.2      Appointment of the Head of the Single Buyer  

7.2.1The appointment of the Head of the Single Buyer shall be undertaken in accordance with the requirements of the Electricity Supply Act 1990, the Licence conditions, and any rules or directions issued by the Minister or Energy Commission.  

7.2.2In the event that the position of the Head of the Single Buyer is left vacant due to the departure of the incumbent at short notice, or the processes for appointment of the Head of the Single Buyer have not been able to be completed for any reason, the Chief Executive Officer of TNB shall appoint a person to act in the position of the Head of the Single Buyer until the appointment process is completed. 

7.2.3TNB shall establish appropriate reporting arrangements for the Head of the Single Buyer which ensure that:  

a)              the Single Buyer is empowered to perform its functions under the Single  Buyer Market Rules in a manner that does not unduly discriminate against  any other Participant as specified in Rule 6.2; and 

b)              any potential conflicts of interest are appropriately addressed. 

7.2.4The terms of employment for the Head of the Single Buyer and the staff of the Single Buyer shall be consistent with TNB’s employment policy and appropriate Malaysian benchmarks. 

7.2.5    The Head of the Single Buyer shall report directly to the Chief Executive Officer of TNB. 

7.3      Single Buyer Oversight Panel 

7.3.1The Energy Commission shall establish and maintain a Single Buyer Oversight Panel to oversee the compliance of the Single Buyer with the Single Buyer Market Rules. 

7.3.2The Single Buyer Oversight Panel shall be chaired by the Energy Commission, and shall be comprised of suitable members as determined by the Energy Commission. 

7.3.3In selecting members of the Single Buyer Oversight Panel, the Energy Commission shall give due consideration to the requisite skills and qualifications of the members, and any conflicts of interest that might arise in performing the functions of the Single Buyer Oversight Panel. 

7.3.4    The functions of the Single Buyer Oversight Panel shall include, but not be limited to: 

a)              overseeing the compliance of the Single Buyer with the Single Buyer Market Rules; 

b)              providing advice and issuing guidance to the Single Buyer and Participants  on achieving compliance with the Single Buyer Market Rules; 

c)              reviewing suggestions for amendments to the  Single Buyer Market Rules as  required by the Rule Change Panel or Energy Commission; 

d)              recommending changes to procedures and the  Single Buyer Market Rules   where it considers that the recommended change would better facilitate  the objectives set out in Rule 4.2; and 

e)              assisting the Energy Commission in selecting and appointing an external  auditor to assess the compliance with Rule 7.4.3. 

7.3.5The Single Buyer shall brief the Single Buyer Oversight Panel from time to time, and as requested by the Single Buyer Oversight Panel, in relation to the operational actions taken and the implementation of the provision in the  Single Buyer Market Rules. 

7.4      Compliance with  Single Buyer Market Rules 

7.4.1The Single Buyer shall ensure that it has appropriate policies, systems and procedures in place to ensure that it is capable of complying with the  Single Buyer Market Rules. 

7.4.2       In the event that the Single Buyer becomes aware that it is non-compliant with the  

Single Buyer Market Rules it shall immediately inform the Single Buyer Oversight Panel and Energy Commission and put in place procedures to address the noncompliance.  

7.4.3The Energy Commission shall appoint a suitably qualified auditor to assess the compliance of the Single Buyer with the requirements of the  Single Buyer Market Rules: 

a)              12 months from the Commencement Date of the  Single Buyer Market Rules;    and 

b)              at least once every three years thereafter, or as specified by the Energy  Commission. 

7.4.4The Single Buyer shall ensure that the information provided to the auditor is accurate and complete. 

7.4.5The cost of the audit shall be borne by the Single Buyer and treated as recoverable operating expenditure for the purposes of calculating the Single Buyer Operations 

Tariff.  

7.5      Generator contracts and NEDA Rules 

7.5.1The Single Buyer shall monitor compliance of parties with the Generator Contracts and the NEDA Rules 

7.5.2In the event that the Single Buyer becomes aware of any non-compliance with the Generator Contracts and/or the NEDA Rules that it considers will have a material effect on its ability to achieve its objectives under Rule 4.2 then it shall notify the Energy Commission.  

7.6      Single Buyer Working Groups 

7.6.1   The objectives of the Single Buyer Working Groups are to: 

a)         review the Single Buyer processes and outcomes and provide  recommendations to the Single Buyer, other Participants and the Energy Commission on changes to procedures that it considers would improve the  efficiency of the discharge of responsibilities set out in the Single Buyer Market Rules; and  

b)         recommend changes to procedures and the  Single Buyer Market Rules  where it considers that the recommended change would better facilitate  the objectives set out in Rule 4.2. 

(i)    Rule Change proposals made by the Single Buyer Working Groups shall be      subject to the Rule Change procedures set out in Chapter 18; 

(ii)  recommendations on changes to procedures that do not require a Rule Change shall be submitted to the Energy Commission for approval. If the     Energy Commission approves a recommendation, the Energy Commission and Single Buyer shall work collaboratively with any relevant Participants     to implement the recommendation. 

7.6.2      The Single Buyer shall establish the Single Buyer Working Groups as specified in Rule 

7.6.3      no later than three months after the Commencement Date. 

7.6.3   The Single Buyer Working Groups shall be as follows: 

a)         Dispatch Scheduling Working Group comprising members from the Energy   Commission, the Single Buyer and the Grid System Operator. In meeting its   objectives under Rule 7.6.1, the Dispatch Scheduling Working Group shall  meet at least quarterly and shall review issues including, but not limited to: 

(i)    efficiency and effectiveness of the dispatch scheduling procedures performed by the Single Buyer and other Participants in facilitating the achievement of the Single Buyer objectives set out in Rule 4.2; 

(ii)  appropriateness of timelines in the dispatch scheduling procedures; 

(iii) appropriateness of the form and content of Participants’ submissions of inputs to the Single Buyer for the purpose of producing the Dispatch Schedules;  

(iv) appropriateness of the form and content of information disseminated by the Single Buyer to other Participants; and  

(v)  any other related issues by the Generators and other Participants. 

The Dispatch Scheduling Working Group may invite Generators and other   Participants to participate in such meetings. 

b)         Long-Term Demand and Supply Working Group comprising members from  the Energy Commission, the Ministry of Energy, Green Technology and  Water and any other relevant Government agencies or authorities, the  Nominated Gas Supplier, the Single Buyer, the Grid System Operator and  the Grid Owner. In meeting its objectives under Rule 7.6.1, the Long-Term  Demand and Supply Working Group shall meet at least once every six  months and shall review issues including, but not limited to, the  development and content of:  

(i)    the Ten Year Ahead Load Forecast Report produced by the Single Buyer as set out in Rule 15.2.3; and 

(ii)   the Ten Year Ahead Generation Capacity Report produced by the Single Buyer as set out in Rule15.2.4. 

 Single Buyer Governance

c)          Single Buyer Website Working Group comprising (at a minimum) members  from the Energy Commission, the Single Buyer, the appointed information  communication and technology service provider and the Grid System  Operator. In meeting its objectives under Rule 7.6.1, the Single Buyer  Website Working Group shall meet at least quarterly and shall review issues including, but not limited to:  

(i)    the information published on the Single Buyer Website, with particular consideration of whether additional information should be published;  

(ii)  the format and accessibility of the information published on the Single Buyer Website; and 

(iii)  appropriateness of timelines in the Single Buyer Market Rules for Participants and the Energy Commission to publish information on the Single Buyer Website. 

The Single Buyer Website Working Group may invite other persons including  the relevant Generators to participate in such meetings. 

7.6.4       The Single Buyer may establish additional Single Buyer Working Groups as a platform to discuss emerging issues. The Single Buyer may determine the scope of each Single Buyer Working Groups and their Terms of reference from time to time. 

7.6.5       The Energy Commission may direct the Single Buyer to establish additional Single Buyer Working Groups to discuss specific matters not covered by the existing Single Buyer Working Groups. 

7.6.6       For each Single Buyer Working Group, establishment will be as follows:  

a)              the Single Buyer shall propose a Terms of Reference; 

b)              the Single Buyer shall seek nominations from the relevant stakeholders   specified in Rule 7.6.3 and as deemed appropriate from key stakeholders  including, but not necessarily limited to:  

(i)              the Energy Commission;  

(ii)             relevant Government agencies and statutory bodies;  

(iii)            Generators; 

(iv)            the Grid System Operator;  

(v)             the Grid Owner; 

(vi)            TNB Distribution;  

(vii)          the Nominated Coal Supplier;  

(viii)         the Nominated Gas Supplier;  

(ix)            industry bodies; and  

(x)             Customer Groups; other relevant persons as may be determined by the Single Buyer. 

c)              upon receipt of nominations, the Single Buyer shall propose the  membership of the Working Group, including a chair to the Energy 

 Commission; 

d)              the Energy Commission shall review the proposed Terms of Reference and  the membership of the Working Group and finalise and approve them in  consultation with the Single Buyer; 

e)              within three months of its establishment, each Working Group shall propose  a draft Charter for approval by the Energy Commission, which shall include,  but not necessarily be limited to, a process for developing and finalising recommendations of the Working Group; and 

f)               in the event that the Working Group requires a secretariat to meet its  Terms of Reference and comply with its Charter, the Single Buyer shall  provide a secretariat, with any costs incurred by the Single Buyer in doing so recovered via the Single Buyer Tariff.  

Least Cost Dispatch Scheduling Methodology

^{_{8 Least Cost Dispatch Scheduling Methodology}} 

8.1      Purpose 

8.1.1This Chapter defines the Least Cost Dispatch Scheduling Methodology which the Single Buyer shall follow to prepare the Day Ahead Dispatch Schedule, the Week 

Ahead Dispatch Schedule and the Three Month Ahead Dispatch Schedule (collectively referred to as Dispatch Schedules) and the requirements of the Dispatch Scheduling Model. 

8.2      Least Cost Dispatch Scheduling Methodology 

8.2.1The Single Buyer shall develop the Dispatch Schedules based on a Least Cost Dispatch Scheduling Methodology such that the lowest marginal cost Generating Unit is forecast to be dispatched first to meet demand followed by the next lowest marginal cost Generating Unit until all demand is met. The marginal cost of generation shall comprise all payments that vary with the amount of electricity procured, that are made by the Single Buyer to the Generators, pursuant to Generator Contracts , Daily Heat Rate and Variable Operating Rate Bids or Daily Price Bids. 

8.2.2At all times the Single Buyer shall ensure that the Dispatch Schedules cater adequately for system security, Operating Reserve requirements, transmission constraints, generation constraints, fuel availability and any other factors which could influence the security and reliability of electricity supply as specified by the Grid Code For Peninsular Malaysia or the Grid System Operator.

8.2.3The Single Buyer shall ensure that it has the required data and information to accurately calculate its marginal cost for the procurement of generation from each Generating Unit. 

8.2.4In preparing and finalising the Dispatch Schedules the Single Buyer shall ensure that it promotes transparency by publishing key results on the Single Buyer Website and discusses and seeks feedback on the dispatch process and methodology regularly at the meetings of the Dispatch Scheduling Working Group.

8.3      Dispatch Scheduling Model 

8.3.1The Single Buyer shall ensure that the Dispatch Scheduling Model used to produce and finalise the Dispatch Schedules minimises the cost of electricity procurement given all transmission and system constraints and the key input data. Specifically, the Single Buyer shall ensure that the Dispatch Scheduling Model is based on the Least Cost Dispatch Scheduling Methodology and is capable of adequately taking the following parameters into consideration in optimising the Dispatch Schedules: a)  System Constraints; 

b)              Operating Reserve requirements as set out in the Grid Code For Peninsular Malaysia; 

c)              key input data for the Three Month Ahead Dispatch Schedule as specified in Chapter 9; 

Least Cost Dispatch Scheduling Methodology

d)              key input data for the Week Ahead Dispatch Schedule as specified in Chapter 10; 

e)              key input data for the Day Ahead Dispatch Schedule as specified in Chapter 11; and 

f)               any other system security measures as deemed appropriate by the Grid  System Operator in compliance with the Grid Code For Peninsular Malaysia.  

8.3.2 If the Dispatch Scheduling Model does not satisfy the conditions as specified in Rule 8.3.1, then the Single Buyer shall prepare a System Upgrade Plan which must specify the timeframe and the cost required to upgrade the current Dispatch Scheduling Model such that it is compliant with the requirements as specified in Rule 8.3.1.  

8.3.3The Single Buyer shall submit the System Upgrade Plan to the Energy Commission for approval. Once the System Upgrade Plan has been approved by the Energy Commission the Single Buyer shall implement the System Upgrade Plan as per the timeline specified in the System Upgrade Plan. 

8.3.4    The Single Buyer shall review the Dispatch Scheduling Model in the event of any revision to the Least Cost Dispatch Scheduling Methodology or every 12 months, whichever is earlier, to ensure that the Dispatch Scheduling Model is compliant with the provisions of Rule 8.3.1. In conducting the review the Single Buyer shall ensure that: 

a)     the review is finalised no later than two months after expiration of the 12  month period;  

b)     the outcomes of the review are submitted to the Energy Commission and  the Dispatch Scheduling Working Group within fifteen (15) days after the  completion of the review; and 

c)      if the Dispatch Scheduling Model is non-compliant, a System Upgrade Plan   to upgrade the model to ensure compliance is submitted to the Energy  Commission. 

8.3.5The first review and any resultant System Upgrade Plan must be prepared no later  than three months after the Commencement Date of the Single Buyer Market Rules. 8.3.6If at any time the Single Buyer proposes to enhance or upgrade the Dispatch Scheduling Model then it shall seek prior approval from the Energy Commission and consult with the Dispatch Scheduling Working Group before implementing its proposal.    

Three Month Ahead Dispatch Schedule

^{_{9 Three Month Ahead Dispatch Schedule}} 

9.1      Purpose 

9.1.1This Chapter sets out the procedures and processes which the Single Buyer shall follow to prepare and finalise the Three Month Ahead Dispatch Schedule, including key principles, inputs and timing for developing the Three Month Ahead Dispatch Schedule. 

9.1.2The purpose of the Three Month Ahead Dispatch Schedule is to provide information to Generators to assist their fuel planning and purchase decisions. For the avoidance of doubt, the Three Month Ahead Dispatch Schedule is merely indicative without any binding effect. 

9.2      Key procedural requirements  

9.2.1The Single Buyer shall abide by the following procedural requirements in preparing the Three Month Ahead Dispatch Schedule: 

a)              the Single Buyer shall use the Least Cost Dispatch Scheduling Methodology  to prepare and finalise the Three Month Ahead Dispatch schedule;   

b)              in preparing and finalising the Three Month Ahead Dispatch Schedule the  Single Buyer shall ensure that Operating Reserve requirements,  transmission constraints (as advised by the Grid System Operator and the  Grid Owner), generation constraints and fuel availability and any other  factors that could affect the security and reliability of the system as  specified by the Grid Code For Peninsular Malaysia or Grid System Operator  are adequately taken into consideration and that the resulting dispatch  schedule does not compromise the security and reliability of supply;  

c)              the Single Buyer shall specify the form and content of Participants’  submissions of inputs to the Single Buyer; and 

d)              the Single Buyer shall perform its functions in a transparent manner.  

9.3      Three Month Ahead Dispatch Period 

9.3.1    The Three Month Ahead Dispatch Period is three calendar months. 

9.4      Three Month Ahead Load Forecast 

9.4.1The Single Buyer shall prepare the Three Month Ahead Load Forecast before 10:00 am on the third day of the Month before the commencement of the Three Month Ahead Dispatch Period.  

9.5      Generating Unit Operating Data 

9.5.1The Single Buyer shall ensure that the Dispatch Scheduling Model is updated mith the relevant Generating Unit Operating Data by 10:00 am on the sixth day of the Month preceding the commencement of the Three Month Ahead Dispatch Period. 

Three Month Ahead Dispatch Schedule

9.6      Three Month Ahead Generation Outage Plan 

9.6.1The Grid System Operator shall submit the Three Month Ahead Generation Outage Plan to the Single Buyer by 10:00 am on the third day of the month preceding the commencement of the Three Month Ahead Dispatch Period.  

9.7      Three Month Ahead Transmission Outage Plan 

9.7.1The Grid System Operator shall submit the Three Month Ahead Transmission Outage Plan to the Single Buyer by 10:00 am on the third day of the month preceding the commencement of the Three Month Ahead Dispatch Period.  

9.8      Other Dispatch Scheduling Model inputs 

9.8.1The Single Buyer shall update the Dispatch Scheduling Model by 10:00 am on the sixth day of the month preceding the commencement of the Three Month Ahead Dispatch Period for the following inputs applicable for the Three Month Ahead Dispatch period: 

a)              the relevant three month ahead dispatch of all Hydro Plant based on the 

 Hydro Plant Management Plan; 

b)              the relevant three month ahead dispatch of all Cogeneration Plant based on  the Cogeneration Usage Plan; 

c)              the relevant three month ahead electricity imported or exported to any  jurisdiction or region (including, but not limited to, countries such as  Singapore and Thailand) connected to the Transmission Network based on  the Export and Import Plan; 

d)              the applicable gas price to be used for electricity generation in Peninsular 

 Malaysia as per the Power Sector Gas Price; 

e)              the applicable coal price to be used for electricity generation in Peninsular 

 Malaysia as per the relevant Applicable Coal Price; and 

f)               the applicable Stand-by Fuel price to be used for electricity generation in  Peninsular Malaysia as per the relevant Stand-by Fuel Monthly Price.  

9.9      Three Month Ahead Dispatch Schedule

9.9.1The Single Buyer shall prepare and finalise the Three Month Ahead Dispatch Schedule by 5:00 pm on the seventh day of the month preceding the commencement of the Three Month Ahead Dispatch Period. 

9.9.2The Single Buyer shall by 5:00 pm on the eighth day of the month preceding the commencement of the Three Month Ahead Dispatch Period: 

a)              send each coal Generator their respective Three Month Ahead Dispatch 

 Schedule for the Three Month Ahead Dispatch Period;  

b)              send each Generator, as applicable, their respective Stand-by Fuel   consumption in tonnes; and 

c)              update the Single Buyer Website with the Aggregate Three Month Ahead  Dispatch Schedule. 

^{_{10 Week Ahead Dispatch Schedule}} 

10.1    Purpose 

10.1.1This Chapter sets out the procedures and processes which the Single Buyer shall follow to prepare and finalise the Week Ahead Dispatch Schedule, including key principles, inputs and timing for developing the Week Ahead Dispatch Schedule. 

10.1.2The purpose of the Week Ahead Dispatch Schedule is to assist the Single Buyer in optimising weekly scheduling and fuel mix and providing forecast scheduling information to Generators. 

10.2    Key procedural requirements  

10.2.1The Single Buyer shall abide by the following procedural requirements in preparing the Week Ahead Dispatch Schedule: 

a)         the Single Buyer shall use the Least Cost Dispatch Scheduling Methodology to prepare and finalise the Week Ahead Dispatch schedule; 

b)         in preparing and finalising the Week Ahead Dispatch Schedule the Single Buyer shall ensure that Operating Reserve requirements, transmission constraints (as advised by the Grid System Operator and the Grid Owner), generation constraints and fuel availability and any other factors that could affect the security and reliability of the system as specified by the Grid Code For Peninsular Malaysia or Grid System Operator are adequately taken into consideration and that the resulting dispatch schedule does not compromise the security and reliability of supply;  

c)          the Single Buyer shall specify the form and content of Participants’ submissions of inputs to the Single Buyer; and 

d)         the Single Buyer shall perform its functions in a transparent manner. 

10.3    Weekly Dispatch Scheduling Model Update Date 

10.3.1The Weekly Dispatch Scheduling Model Update Date is every Wednesday. 

10.3.2If the Dispatch Scheduling Model Update Date falls on a Non-Working Day, then the Weekly Dispatch Scheduling Model Update Date is the earliest preceding Working Day, which can include up to three (3) consecutive Working Days prior to Wednesday.  

10.3.3If there are more than three (3) consecutive Working Days as Non-Working Days preceding the Weekly Dispatch Scheduling Model Update Date, then the Weekly Dispatch Scheduling Model Update Date is the Thursday preceding the Weekly Dispatch Scheduling Model Update. 

10.4    Week Ahead Load Forecast 

10.4.1The Single Buyer shall prepare the Week Ahead Load Forecast before 3:00 pm on the day of the Weekly Dispatch Scheduling Model Update Date. 

10.5    Week Ahead Generation Outage Plan 

10.5.1The Grid System Operator shall submit the Week Ahead Generation Outage Plan to the Single Buyer before 10:00 am on the day after the Weekly Dispatch Scheduling Model Update Date and the Single Buyer shall use the most updated Week Ahead Generation Outage Plan made available to it at that particular time in preparing the Week Ahead Dispatch Schedule. 

10.6    Week Ahead Transmission Outage Plan 

10.6.1The Grid System Operator shall submit the Week Ahead Transmission Outage Plan to the Single Buyer before 10:00 am on the day after the Weekly Dispatch Scheduling Model Update Date and the Single Buyer shall use the most updated Week Ahead Transmission Outage Plan made available to it at that particular time in preparing the Week Ahead Dispatch Schedule.  

10.7    Other Dispatch Scheduling Model inputs 

10.7.1The Single Buyer shall update the Dispatch Scheduling Model for the following inputs by 3:00 pm on the day of the Weekly Dispatch Scheduling Model Update Date:

a)              the relevant Generating Unit Operating Data; 

b)              the relevant weekly dispatch of all Hydro Plant based on the Hydro Plant Management Plan; 

c)              the relevant weekly dispatch of all Cogeneration Plant based on the Cogeneration Usage Plan; 

d)              the relevant weekly electricity imported or exported to any jurisdiction or  region (including, but not limited to, countries such as Singapore and  Thailand) connected to the Transmission Network based on the Export and Import Plan; 

e)              the applicable gas price to be used for electricity generation in Peninsular Malaysia as per the Power Sector Gas Price;  

f)               the applicable coal price to be used for electricity generation in Peninsular Malaysia as per the relevant Applicable Coal Price; and  

g)              the applicable Stand-by Fuel price to be used for electricity generation in  Peninsular Malaysia as per the relevant Stand-by Fuel Monthly Price. 

10.8    Week Ahead Dispatch Schedule 

10.8.1The Single Buyer shall prepare and finalise the Week Ahead Dispatch Schedule by 5:00 pm the day after the Weekly Dispatch Scheduling Model Update Date. 

10.8.2The Single Buyer shall send the finalised Week Ahead Dispatch Schedule to the Grid System Operator by 10:00 am the day after the finalisation on the Week Ahead Dispatch Schedule. 

10.8.3The Single Buyer shall update the Single Buyer Website with the Week Ahead Load Forecast for the following week by 5.00 pm on the last Working Day of each Week. 

^{_{11 Day Ahead Dispatch Schedule}}  

11.1    Purpose 

11.1.1This Chapter sets out the procedures and processes which the Single Buyer shall follow to prepare and finalise the Day Ahead Dispatch Schedule, including key principles, inputs and timing for developing the Day Ahead Dispatch Schedule. 

11.2    Key procedural requirements  

11.2.1The Single Buyer shall abide by the following procedural requirements in preparing the Day Ahead Dispatch Schedule: 

a)              the Single Buyer shall use the Least Cost Dispatch Scheduling Methodology  to prepare and finalise the Day Ahead Dispatch schedule; 

b)              in preparing and finalising the Day Ahead Dispatch Schedule the Single   Buyer shall ensure that Operating Reserve requirements, transmission  constraints (as advised by the Grid System Operator and the Grid Owner),  generation constraints and fuel availability and any other factors that could  affect the security and reliability of the system as specified by the Grid Code  For Peninsular Malaysia or Grid System Operator are adequately taken into  consideration and that the resulting dispatch schedule does not  compromise the security and reliability of supply;  

c)              the Single Buyer shall specify the form and content of Participants’  submissions of inputs to the Single Buyer; and 

d)              the Single Buyer shall perform its functions in a transparent manner.  

11.3    Day Ahead Dispatch Period 

11.3.1The Day Ahead Dispatch Period for the Day Ahead Dispatch Schedule shall be the next Working Day. 

11.3.2If the next day is a Non-Working Day, then the Day Ahead Dispatch Period is defined as the period between the current Working Day and until (and including) the next Working Day restricted to a maximum of four (4) consecutive days, which can include up to four consecutive Non-Working Days.  

11.3.3If there are more than four (4) consecutive Non-Working Days, then the Single Buyer shall prepare a Day Ahead Dispatch for the sixth Day on the fifth consecutive NonWorking Day.  

11.4    Day Ahead Load Forecast 

11.4.1The Single Buyer shall prepare the Day Ahead Load Forecast by 10:00 am on the day preceding the commencement of the Day Ahead Dispatch Period. 

11.5    Daily Availability Declaration 

11.5.1Each Generator shall submit its Daily Availability Declaration to the Single Buyer by 

10:00 am on the day preceding the commencement of the Day Ahead Dispatch 

Period.  

11.5.2Each Bidding NEDA Participant wishing to submit a Daily Heat Rate and Variable Operating Rate Bid or a Daily Price Bid shall do so in accordance with the NEDA Rules.  

11.5.3The Single Buyer shall ensure that the Dispatch Scheduling Model is updated by 10:30 am on the day preceding the commencement of the Day Ahead Dispatch Period with the relevant Generating Unit Operating Data for each Generator based on the Daily Availability Declarations, Daily Heat Rate and Variable Operating Rate Bids and Daily Price Bids. 

11.6    Day Ahead Transmission Outage Plan 

11.6.1The Grid System Operator shall submit the Day Ahead Transmission Outage Plan to the Single Buyer by 10:00 am on the day preceding the commencement of the Day Ahead Dispatch Period.  

11.6.2The Single Buyer shall ensure that the Dispatch Scheduling Model is updated by 10:30 am on the day preceding the commencement of the Day Ahead Dispatch Period with the relevant Day Ahead Transmission Outage Plan. 

11.7    Other Dispatch Scheduling Model inputs 

11.7.1The Single Buyer shall update the Dispatch Scheduling Model by 11:00 am on the day preceding the commencement of the Day Ahead Dispatch Period, the following inputs for the Day Ahead Dispatch period: 

a)              the relevant daily dispatch of all Hydro Plant based on the Hydro Plant Management Plan; 

b)              the relevant daily dispatch of all Cogeneration Plant based on the Cogeneration Usage Plan; 

c)              the relevant daily electricity imported or exported to any jurisdiction or  region (including, but not limited to, countries such as Singapore and  Thailand) connected to the Transmission Network based on the Export and Import Plan; 

d)              the applicable daily gas price to be used for electricity generation in Peninsular Malaysia as per the Power Sector Gas Price; 

e)              the applicable coal price to be used for electricity generation in Peninsular Malaysia as per the relevant Applicable Coal Price;  

f)               the applicable daily Stand-by Fuel price to be used for electricity generation  in Peninsular Malaysia as per the relevant Stand-by Fuel Monthly Price; 

g)              the applicable Daily Heat Rate and Variable Operating Rate Bid for each   PPA/SLA Generator or an Ex-PPA/SLA Generator where a Daily Heat Rate  and Variable Operating Rate Bid has been submitted; 

h)              the applicable Daily Price Bid for each Large Merchant Generator where a Daily Price Bid has been submitted; and 

i)               the applicable Planned Generation Schedule for Price Takers.  

11.8    Day Ahead Dispatch Schedule 

11.8.1Subject to the Daily Availability Declaration, and the Day Ahead Transmission Outage Plan being submitted to the Single Buyer in accordance with the provisions of Rules 11.5 and 11.6, the Single Buyer shall prepare and finalise the Draft Day Ahead Dispatch Schedule by 12:00 pm on the day preceding the commencement of the Day Ahead Dispatch Period and submit to the Grid System Operator to conduct system reliability checks. 

11.8.2The Grid System Operator shall provide its feedback to the Single Buyer on the Draft Day Ahead Dispatch Schedule by 3:00 pm on the day preceding the commencement of the Day Ahead Dispatch Period. 

11.8.3If the Grid System Operator fails to provide its feedback by 3:00 pm on the Draft Day Ahead Dispatch Schedule, the Single Buyer shall immediately contact the Grid System Operator and request for immediate feedback. If no feedback is received from the Grid System Operator by 3:30 pm, then the Single Buyer shall proceed to finalise the Draft Day Ahead Dispatch Schedule and inform the Energy Commission.  

11.8.4The Single Buyer shall finalise the Day Ahead Dispatch Schedule by 5:00 pm on the day preceding the Day Ahead Dispatch Period and submit the Day Ahead Dispatch Schedule to the Grid System Operator. 

11.8.5The Single Buyer shall send to the Nominated Gas Supplier the daily gas requirement based on the Day Ahead Dispatch Schedule by 12:00pm on the day preceding the Day Ahead Dispatch Period. 

11.8.6The Single Buyer shall by 5:00 pm on the day preceding the commencement of the Day Ahead Dispatch Period send each Generator their respective Day Ahead Dispatch Schedule. For the avoidance of doubt, the Day Ahead Dispatch Schedule is merely indicative without any binding effect. 

11.8.7The Single Buyer shall update the Single Buyer Website with the Day Ahead Load Forecast used for the Day Ahead Dispatch Schedule by 5:00 pm on the day preceding the Day Ahead Dispatch Period. 

11.9    Revised Day Ahead Dispatch Schedule 

11.9.1The Grid System Operator shall submit to the Single Buyer the Daily Operations Review Report by 8:00 am on the day of the commencement of the Day Ahead Dispatch Period. The Daily Operations Review Report must take the following factors into consideration: 

a)              the transmission and generation outages for the day prior to the  commencement of the Day Ahead Dispatch period; 

b)              the actual delivery of gas for the prior Day Ahead Dispatch Period; 

c)              any expected variations on Hydro Generation for the prior Day Ahead  Dispatch Period. 

11.9.2The Single Buyer shall prepare the Revised Day Ahead Load Forecast by 8:30 am on the day of the commencement of the Day Ahead Dispatch Period.  

Subject to the Daily Availability Declaration, the Day Ahead Transmission Outage Plan,  and the Daily Operations Review Report being submitted to the Single Buyer in accordance with the provisions of Rules 11.5, 11.6, 11.7 and 11.9.1, the Single Buyer shall finalise and send the Revised Day Ahead Dispatch Schedule by 10:00 am on the day of the commencement of the Day Ahead Dispatch Period to the Grid System Operator. 

11.10 Review of Revised Day Ahead Load Forecast 

11.10.1The Grid System Operator shall submit a Daily Load Variance Report to the Single Buyer which compares the actual daily load to the Revised Day Ahead Load Forecast and must explain in detail any variances in excess of 2% between actual load and the Revised Day Ahead Load Forecast.  

11.10.2The Daily Load Variance Report must be submitted to the Single Buyer and the Energy Commission by 12:00 pm on the day which is two Working Days after the expiration of the Day Ahead Dispatch Period. 

11.11 Review of Revised Day Ahead Dispatch Schedule 

11.11.1The Grid System Operator shall prepare and submit a Daily Dispatch Variance Report to the Single Buyer which compares the actual daily dispatch for each Generating Unit to the forecast daily dispatch based on the Revised Day Ahead Dispatch Schedule and must explain in detail any variances in excess of 5% between actual daily dispatch and forecast daily dispatch based on the Revised Day Ahead Dispatch Schedule. 

11.11.2The Daily Dispatch Variance Report must be submitted to the Single Buyer and the Energy Commission by 12:00 pm on the day which is three Working Days after the expiration of the Day Ahead Dispatch Period. 

11.12 Review of System Marginal Price 

11.12.1The Single Buyer shall prepare a report which compares the forecast System Marginal Price to the actual System Marginal Price for each Day Ahead Dispatch Interval and must explain in detail any variances in excess of 5% between forecast and actual System Marginal Prices.  

^{_{12 Supply Capacity Adequacy Assessment}} 

12.1     Purpose 

12.1.1This Chapter sets out the procedures and processes which the Single Buyer shall follow with respect to the preparation of: 

a)              the Dispatch Schedules if there is a projected shortfall in generation  capacity; and 

b)              the One Year Demand and Supply Outlook to project the generation mix and fuel  requirement for the coming year.  

12.2    Short-term supply adequacy assessment

The Single Buyer shall immediately notify the Energy Commission and take appropriate actions in accordance with the Short Term Supply Adequacy Plan if there is any short-term and/or medium-term supply constraints resulting in a projected shortfall in generation capacity. 

12.3     Short-Term Supply Adequacy Plan  

12.3.1The Single Buyer shall develop a Short-Term Supply Adequacy Plan for addressing any constraints with respect to the Single Buyer’s development of the Day Ahead Dispatch Schedules and Three Month Ahead Dispatch Schedules.  

12.3.2The Short-Term Supply Adequacy Plan must outline the steps to be taken by the Single Buyer which should include the assessment of:  

a)         rescheduling any planned transmission or generator maintenance in  discussion with the Grid System Operator and the Generators; and 

b)         reducing Customer demand based on the Demand Control Plan as defined hereinafter.  

12.4    Demand Control Plan 

12.4.1The Grid System Operator shall develop a Demand Control Plan for demand side response by large Customers. The Demand Control Plan must: 

a)              be based on the Demand Control procedures set out in Operating Code No. 4 of the Grid Code For Peninsular Malaysia; 

b)              identify persons registered with the Grid System Operator as having   capacity to participate in demand side response actions; 

c)              set out the procedures that the Grid System Operator shall follow in calling  for participants in demand side response actions; 

d)              set out the approach to determining any compensation available for  participants in demand side response actions; 

e)              be reviewed and updated as required at least once every six months;  

f)               be approved by the Energy Commission; and 

g)              be published on the Single Buyer Website.  

12.5    One Year Demand and Supply Outlook 

12.5.1The Single Buyer shall prepare a One Year Demand and Supply Outlook and submit to the Energy Commission by the end of January every calendar year. 

12.5.2In preparing and finalising the One Year Demand and Supply Outlook, the Single Buyer shall ensure that it consults adequately with the Grid System Operator and the Dispatch Scheduling Working Group. 

12.5.3In preparing the One Year Demand and Supply Outlook, the Single Buyer shall use the Least Cost Dispatch Scheduling Methodology and the Dispatch Scheduling Model as specified in Chapter 8, updated for the following key inputs, which the Single Buyer shall source from the relevant Participants as required: 

a)              one year of Generating Unit Operating Data for each Generator based on  the submissions received from the Generators and the Generator Contracts; 

b)              the dispatch of all Hydro Plant based on the Hydro Plant Management Plan; 

c)              the dispatch of all Cogeneration Plant based on the Cogeneration Usage Plan; 

d)              the electricity imported or exported to any jurisdiction or region (including,  but not limited to, countries such as Singapore and Thailand) connected to  the Transmission Network in Peninsular Malaysia) if required; 

e)              the most recent applicable gas price to be used for electricity generation in Peninsular Malaysia; 

f)               the most recent applicable coal price; and 

g)              the most recent applicable Stand by Fuel price. 12.5.4The One Year Demand and Supply Outlook shall consist of: 

a)         the generation mix based on the one year ahead load forecast and dispatch  schedule;  and  

b)         the fuel requirements to meet the one year ahead load forecast and  dispatch schedule. 

12.5.5The Single Buyer shall notify and discuss with the Energy Commission if there is any expected shortfall in generation capacity and/or fuel supply to meet the forecast demand based on the One Year Demand and Supply Outlook.  

^{_{13 Fuel Management}} 

13.1    Purpose 

13.1.1This Chapter sets out the procedures and processes which the Single Buyer shall follow to monitor the adequacy of gas and coal supply and hydro levels to meet the Week Ahead Dispatch Schedule, the Three Month Ahead Dispatch Schedule and respond to and monitor any unplanned curtailment or disruption to the planned supply and delivery of forecast quantities of gas and coal.   

13.2     Gas Supply Committee  

13.2.1The Energy Commission shall establish a Gas Supply Committee to review and assess the adequacy of gas supply for electricity generation in Peninsular Malaysia. 

13.2.2The membership of the Gas Supply Committee shall consist of suitable representatives from the following organisations: 

a)              Economic Planning Unit, Prime Minister’s Department;  

b)              Ministry of Energy, Green Technology and Water; 

c)              Energy Commission; 

d)              Nominated Gas Supplier; 

e)              representatives from gas Generators; 

f)               Grid Owner; 

g)              Grid System Operator; 

h)              Single Buyer. 

13.2.3The Energy Commission shall be the chair of the Gas Supply Committee and shall invite representatives from other organisations to attend the committee meetings as required. 

13.2.4Any conclusions, decisions or recommendations made by the Gas Supply Committee shall be endorsed by the Energy Commission before being finalised. The Energy Commission shall consult with the members of the Gas Supply Committee concerning any conclusion, decision or recommendation. 

13.2.5The Energy Commission shall provide secretariat support to the Gas Supply Committee. 

13.2.6The Gas Supply Committee shall meet at least once every six months to review the adequacy of gas supply based on the relevant Three Month Ahead Dispatch Schedule and the Power Sector Gas Allocation. 

13.2.7At each Gas Supply Committee meeting: 

a)         the Single Buyer shall present the requirements for gas supply for electricity  generation in Peninsular Malaysia for the next twelve months; 

b)         the Nominated Gas Supplier shall provide an update on gas supply  availability and reliability for the next six months and identify any risk to  future gas supply;  

c)          the Gas Supply Committee shall discuss the adequacy of long term gas  supply to meet demand; and 

d)         any other relevant matter shall be covered as decided by the Energy  Commission.  

13.2.8If, pursuant to Rule 13.2.7 based on the Nominated Gas Supplier’s update the Gas Supply Committee concludes that the projected gas supply is at risk, then the Energy Commission shall commence the Urgent Gas Procedures.  

13.2.9If the Nominated Gas Supplier becomes aware of any issues which may adversely impact the supply and reliability of gas for electricity generation in Peninsular Malaysia then it shall immediately inform the Energy Commission who shall immediately convene a meeting of the Gas Supply Committee.     

13.3    Urgent Gas Procedures 

13.3.1The objectives of the Urgent Gas Procedures are to mitigate and manage the impact of any disruption to planned and expected gas supply. 

13.3.2The Energy Commission shall undertake the followings actions as per the Urgent Gas Procedures which are listed below: 

a)         convene meetings of the Gas Supply Committee as required to discuss the   impact of the gas supply disruption and present mitigation strategies; 

b)         convene the National Gas Task Force to monitor daily gas supply situations   and impacts during gas supply disruptions;  

c)          require a mitigation plan from the Nominated Gas Supplier to restore the  required supply of gas and request the Nominated Gas Supplier to provide  regular updates at the Gas Supply Committee meetings; 

d)         require the Single Buyer to develop a plan to use Hydro Plants, coal based  generation, Stand-by Fuel  and electricity imports to make up for the loss of  gas based generation, which includes liaising with Hydro Plant Generators,  liquid fuel suppliers, coal based Generators, the Nominated Coal Supplier  and external jurisdictions connected to the Transmission Network; 

e)         require the Single Buyer to calculate the impact on the total cost of  generation and the impact on Customer electricity prices;  

f)          direct the Single Buyer to take any actions considered necessary in relation  to the plan specified in Rule 13.3.2(d); and 

g)         any other actions which might result in facilitating resolution or mitigating the impact of the gas supply disruption. 

13.4     Coal Supply Committee  

13.4.1The Energy Commission shall establish a Coal Supply Committee to:  

a)         monitor and to report on the supply of coal specifically for the electricity generation sector, ensuring sufficiency and at fair pricing; 

b)         monitor and to report on the global coal supply and pricing trends as well as   to develop an early warning system to ensure no interruption to coal-based  electricity generation; 

c)          identify issues, including environmental, affecting the use of coal for electricity generation in-line with the objectives of the National Energy Policy; 

d)         monitor the coal procurement cost of the Nominated Coal Supplier through  coal supply contracts, spot purchases and from other avenues, so as to  reflect cost-efficient and effective procurement; and 

e)         update the Applicable Coal Price that is set every calendar year quarter and  declared to each coal Generator for the coal delivered for the purpose of  electricity generation in Peninsular Malaysia.  

13.4.2The membership of the Coal Supply Committee shall consist of suitable representatives from the following organisations: 

a)               Economic Planning Unit, Prime Minister’s Department;  

b)               Ministry of Energy, Green Technology and Water; 

c)                Energy Commission; 

d)               Nominated Coal Supplier; 

e)               representatives from coal Generators; 

f)                Grid Owner; 

g)               Grid System Operator; 

h)               Single Buyer. 

13.4.3The Energy Commission shall be the chair of the Coal Supply Committee and shall invite representatives from other organisations to attend the committee meetings as required. 

13.4.4Any conclusions, decisions or recommendations made by the Coal Supply Committee shall be endorsed by the Energy Commission before being finalised. The Energy Commission shall consult with the members of the Coal Supply Committee concerning any conclusion, decision or recommendation. 

13.4.5The Energy Commission shall provide secretariat support to the Coal Supply Committee. 

13.4.6The Coal Supply Committee shall meet at least once every three months but no later than thirty-one (31) days prior to the commencement of each new calendar year quarter.  

13.4.7At each Coal Supply Committee meeting: 

a)              the Single Buyer shall present the requirements for coal supply for  

                        electricity generation in Peninsular Malaysia for the next twelve months based on the relevant Three Month Ahead Dispatch Schedule; 

b)              the Nominated Coal Supplier shall provide an update on coal supply  availability and reliability for the next six months and identify any risk to  future coal supply; 

c)              the Coal Supply Committee shall discuss the adequacy of long term coal supply to meet demand;  

d)              the Nominated Coal Supplier shall present an overview of its coal     procurement activities and demonstrate the efficiency and effectiveness of   its coal procurement policy and procedures; 

e)              the Coal Supply Committee shall  discuss and propose solutions for any issues concerning procurement presented by the Nominated Coal Supplier;

f)            the Coal Supply Committee shall discuss any issues and propose solutions concerning coal procurement costs and the coal price setting mechanism; 

                         and 

g)          any other relevant matter shall be covered as decided by the Energy Commission.  

13.4.8If any conflict of interest is identified in relation to participation of any member in any discussions or actions under Rule 13.4.7, then that member shall not be allowed to participate or undertake in the discussions or actions. 

13.4.9If, pursuant to Rule 13.4.7, based on the Nominated Coal Supplier’s update the Coal Supply Committee concludes that the projected coal supply is at risk, then the Energy Commission shall commence its Urgent Coal Procedures. 

13.4.10If the Nominated Coal Supplier becomes aware of any issues which may adversely impact the supply and reliability of coal for electricity generation in Peninsular Malaysia then it shall immediately inform the Energy Commission who shall immediately convene a meeting of the Coal Supply Committee.      

13.5    Urgent Coal Procedures 

13.5.1The objectives of the Urgent Coal Procedures are to mitigate and manage the impact of any disruption to planned and expected coal supply. 

13.5.2The Energy Commission shall undertake the followings actions as per the Urgent Coal Procedures which are listed below: 

a)         convene meetings of the Coal Supply Committee as required to discuss the  impact of the coal supply disruption and present mitigation strategies; 

b)         require a mitigation plan from the Nominated Coal Supplier to restore the  required supply of coal and request the Nominated Coal Supplier to provide  regular updates at the Coal Supply Committee meetings; 

c)          require the Single Buyer to develop a plan to use Hydro Plants, gas based  generation, Stand-by Fuel and electricity imports to make up for the loss of  coal based generation, which includes liaising with Hydro Plant Generators, gas based Generators, the Nominated Gas Supplier and external  jurisdictions connected to the Transmission Network; 

d)         require the Single Buyer to calculate the impact on the total cost of  generation and the impact to Customer electricity prices;  

e)         direct the Single Buyer to take any actions considered necessary in relation  to the plan specified in Rule 13.5.2(c); and 

f)          any other actions which might result in facilitating resolution or mitigating the impact of the coal supply disruption. 

13.6    Hydro generation 

13.6.1The Single Buyer shall prepare a Hydro Plant Management Plan once every twelve (12) months to forecast hydro generation for storage-based schemes based on hydro generation capacity, lake levels and other relevant assumptions.    

13.6.2The Single Buyer shall update the Hydro Plant Management Plan as required and shall update the Energy Commission with the most recent and up to date Hydro Plant Management Plan. 

13.6.3All Participants shall ensure that they provide the inputs, data and documents as requested by the Single Buyer to prepare and finalise the Hydro Plant Management Plan.   

^{_{14 Single Buyer Tariff}} 

14.1    Purpose 

14.1.1This Chapter sets out principles and mechanism for determining the Single Buyer Tariff. The provisions of this Chapter are designed to enable the Single Buyer to make payments to Generators in accordance with the Generator Contracts and other agreements for the sale and/or purchase of electricity from its own ringfenced accounts. The Single Buyer shall also be enabled to cover its own operating costs in accordance with the ring-fencing arrangements set out in Chapter 6.  

14.1.2The revenue required to enable the Single Buyer to meet the obligations of the Generator Contracts and other agreements for the sale and/or purchase of electricity and  the Single Buyer’s operating costs shall be recovered via the Single Buyer Tariff in accordance with the Regulatory Implementation Guidelines. The two components of the Single Buyer Tariff, the Single Buyer Generation Tariff and the Single Buyer Operations Tariff, operate to enable the Energy Commission to apply separate price control mechanisms to each tariff component. The arrangements provide for a pass-through of fuel and other generation specific costs, with more frequent adjustments to the Single Buyer Generation Tariff to account for the relatively greater level of volatility for fuel related costs. 

14.1.3Under the Energy Commission’s regulatory framework, the relevant party as prescribed in the Regulatory Implementation Guidelines shall collect the revenue required to meet Single Buyer Tariff payments as part of the Electricity Tariff charged to Customers. 

14.2    Single Buyer Tariff setting arrangements 

14.2.1The costs of the Single Buyer shall be recovered in accordance with the Regulatory Implementation Guidelines.  

14.2.2The Energy Commission shall establish Single Buyer Tariff arrangements that enable the Single Buyer to recover its costs. 

14.2.3The Single Buyer Tariff shall be designed to recover all of the costs of the Single Buyer and shall be comprised of the following components: 

a)         a Single Buyer Generation Tariff component calculated in accordance with  Rule 14.3, and comprising all costs to the Single Buyer in purchasing  electricity including: 

(i)     energy payments, available capacity payments, fuel and any other payments from the Single Buyer to the Generators, or from the Generators to the Single Buyer, provided for in the Generator Contracts and other agreements for the sale and/or purchase of electricity; and (ii)costs of importing electricity from other jurisdictions. 

b)         a Single Buyer Operations Tariff component calculated in accordance with  Rule 14.4, comprising all of the operational costs incurred by the Single  Buyer in undertaking its roles and performing its functions, including: 

(i)    forecasts of efficient operating costs, excluding any costs incurred or revenues received as part of the Single Buyer Generation Tariff component;  

(ii)  a return on the Single Buyer’s regulatory asset base reflecting an efficient market based cost of capital;  

(iii) forecasts of efficient depreciation;  

(iv) forecast tax payments; and 

(v)  an allowance for efficiency carryover amounts.   

14.3    Single Buyer Generation Tariff 

14.3.1The Single Buyer Generation Tariff component shall be set by the Energy Commission for the first Regulatory Period and each Regulatory Period thereafter. 

14.3.2In setting the Single Buyer Generation Tariff component the Energy Commission shall have regard to: 

a)         any proposal by the Single Buyer concerning forecasts of the elements listed  in Rule 14.2.3(a), including, but not limited to: 

(i)    the current prices of gas and coal; 

(ii)  expectations of the demand and supply for gas and coal over the Regulatory Period; 

(iii) expectations of electricity demand and supply; 

(iv) the terms and conditions of the Generator Contracts and other agreements for the sale and/or purchase of electricity; and

b)         any other issues identified by the Energy Commission in its regulatory  framework and considered necessary for undertaking its role in regulating  the Electricity Industry. 

14.3.3    The Energy Commission shall establish a cost pass through mechanism to enable the Single Buyer to recover its costs incurred in purchasing electricity as specified in Rule 14.2.3(a). 

14.3.4    The Single Buyer shall publish the cost pass through regulatory guidelines issued by the Energy Commission on the Single Buyer Website.  

14.4    Single Buyer Operations Tariff 

14.4.1The Single Buyer Operations Tariff component shall be set by the Energy Commission for the first Regulatory Period and each Regulatory Period thereafter. 

14.4.2The Single Buyer Operations Tariff shall be based on the methodology consistent with the regulatory framework and rules established by the Energy Commission and will recover all operating costs of the Single Buyer (excluding those already recovered by the Single Buyer Generation Tariff component) including an estimate of working capital requirements. 

14.5    Settlement 

14.5.1The Single Buyer shall process invoices from Generators for TNB’s settlement based on the terms and conditions of the respective Generator Contracts, NEDA Rules and other agreements for the sale and/or purchase of electricity. 

14.5.2The Single Buyer shall recover from the relevant party as prescribed in the Regulatory Implementation Guidelines the actual payments made to the Generators consistent with the Regulatory Implementation Rules.  

14.5.3The Single Buyer may at its discretion arrange for an audit of the payments made to the Generators.  

^{_{15 Long-term Supply and Demand}}  

15.1    Purpose 

15.1.1This Chapter sets out the procedures and processes that the Single Buyer shall follow to monitor and assess long-term supply and demand. In meeting its obligations under this Chapter the Single Buyer shall prepare and publish a Ten Year Demand and Supply Forecast Report and if required, prepare and submit to the Energy Commission a a Ten Year Generation Planning Report.  

15.1.2The Ten Year Demand and Supply Forecast Report are designed to ensure that the Energy Commission, key Government agencies, Participants, the Nominated Gas Supplier and potential investors are informed about the timing of future investments in new generation capacity and the quantities of gas and coal required for electricity generation in the long-term.   

15.2    Ten Year Demand and Supply Forecast Report  

15.2.1The Single Buyer shall prepare a Ten Year Demand and Supply Forecast Report by the end of  May every calendar year, which shall comprise:  

a)              a Ten Year Ahead Load Forecast Report prepared in accordance with Rule 15.2.2 and Rule 15.2.3; and 

b)              a Ten Year Ahead Generation Capacity Report prepared in accordance with  Rule 15.2.4. 15.2.2The Ten Year Ahead Load Forecast Report should build comprise: 

a)              the Ten Year Ahead Load Forecasts; and 

b)              a clear description of all key assumptions used in preparing the load  forecasts such as:  

(i)    economic growth; 

(ii)  population and dwelling growth; 

(iii) major industrial and commercial developments; and 

(iv) all other economic, social, Government policy or commercial factors which could impact electricity consumption growth in Peninsular Malaysia. 

15.2.3    In preparing and finalising the Ten Year Ahead Load Forecast Report, the Single Buyer shall ensure that it consults adequately with the Grid Owner and the LongTerm Demand and Supply Working Group. 

15.2.4    In preparing the Ten Year Ahead Generation Capacity Report, the Single Buyer shall:  

a)              use the existing and available generation capacity of all Generators  connected to the Transmission Network and Distribution Network; 

b)              incorporate any new generation capacity based on committed generation  investments; 

c)              incorporate any new generation capacity based on generation investments  that are planned but not yet committed;  

d)              cater for Operating Reserve requirements; 

e)              incorporate all other factors which could affect the security and reliability of  supply such as transmission constraints (as advised by the Grid System  Operator and the Grid Owner), generation constraints, fuel availability and  any other factors that could affect the security and reliability of the system 

Long-term Supply and Demand as specified by the Grid Code For Peninsular Malaysia or Grid System Operator; 

f)               ensure that there is sufficient consultation with the Long-Term Demand and Supply Working Group; and 

g)              consider any other issues concerning security of supply as directed by the   Energy Commission. 

15.2.5Based on the Ten Year Ahead Load Forecast Report and Ten Year Ahead Generation Capacity Report, the Single Buyer shall prepare and finalise the Ten Year Demand and Supply Forecast Report and submit it to the Energy Commission by the end of May of every calendar year.  

15.2.6In preparing the Ten Year Demand and Supply Forecast Report the Single Buyer shall undertake an assessment of the adequacy of long term projections of generation capacity to meet demand and any requirements for new capacity. If in any ten year forecast period there is expected to be a shortfall in generation capacity to meet the Ten Year Ahead Load Forecast, then the Single Buyer shall: 

a)              notify and discuss the issue with the Energy Commission 

b)              prepare and submit a Ten Year Generation Planning Report to the Energy  Commission by the end of January that shall specify the additional  generation capacity required. The Ten Year Generation Planning Report  shall specify the type of new generation capacity required (base load, mid  merit or peaking), preferred fuel arrangements for the new generation  capacity, the preferred location and timing of new generation capacity, the  augmentation required to the Transmission Network and any other factors  which are considered relevant for investment in new generation capacity;  and 

c)              undertake any other actions as directed by the Energy Commission to  facilitate security of supply. 

15.2.7By the end of  June in each calendar year, the Energy Commission shall review and approve the Ten Year Demand and Supply Forecast Report, subject to any amendments that it may request that the Single Buyer make to ensure consistency with the Single Buyer Market Rules. 

15.2.8Following approval of the Ten Year Demand and Supply Forecast Report by the Energy Commission, the Energy Commission shall publish the Ten Year Demand and Supply Report on its website.  

^{_{16 Contracting for New Capacity}} 

16.1    Purpose 

16.1.1This Chapter sets out the roles and responsibilities of the Energy Commission, the relevant Participants, and the Government in contracting for new generation capacity, including initiating the process for tendering, developing requests for tender, assessing tenders, selecting a preferred tender and finalising contracts. 

16.2    Role of the Energy Commission 

16.2.1The Energy Commission shall undertake the following functions in relation to contracting for new capacity:  

a)              assess any shortfall in generation capacity identified by the Single Buyer to  meet the Ten Year Ahead Load Forecast as per the Ten Year Generation 

 Planning report under Rule 15.2.5; 

b)              where it considers that new generation capacity is required to meet a   projected shortfall, develop requests for tender for new generation capacity,  and direct the Single Buyer to assist with developing draft Generator Contracts; 

c)              assess tenders for new generation capacity;  

d)              select preferred tenders for new generation capacity; and 

e)              moderate between parties in the event of any disputes concerning the  finalisation of contract terms.  

16.2.2The Energy Commission shall invite representatives from other organisations to assist it in undertaking the functions specified in Rule 16.2.1 as required. 

16.3    Initiation of Process for Contracting for New Capacity 

16.3.1When notified by the Single Buyer of any shortfall in generation capacity to meet the Ten Year Ahead Load forecast as per the Ten Year Generation Planning Report under Rule 15.2.5, the Energy Commission shall: 

a)              consider the requirement for new generation capacity and either: 

(i)    decide that there is a need to tender for additional capacity, and commence the development of a tender for new capacity required to meet any shortfall in generation capacity; or 

(ii)  decide that there is not presently a need to tender for additional capacity; 

b)              develop a plan to meet any shortfall in generation capacity pursuant to Rule 16.3.1. 

16.4    Development of Tenders for New Capacity 

16.4.1Pursuant to Rule 16.3.1, following a decision that there is a need to tender for new capacity, the Energy Commission shall develop a draft request for tender for new generation capacity, setting out the following key parameters: 

a)              the amount of generation capacity required to meet any forecast shortfall in generation capacity; 

b)              generation type, such as peaking or baseload; 

c)              fuel type considerations; 

d)              location; 

e)              requirements for ancillary services;  

f)               draft terms and conditions for the Generator Contract as provided by the Single Buyer; and 

g)              any other factors considered relevant by the Energy Commission. 

16.4.2After developing the draft request for tender under Rule 16.4.1, the Energy Commission shall consult with and request input from the Single Buyer, any other relevant Participants or other parties that it considers appropriate to enable it to undertake its functions and meet its objectives. 

16.4.3Following the development of a draft request for tender under Rule 16.4.1, the Energy Commission shall develop a final request for tender comprising the conditions of tendering and an exhaustive list of criteria governing the selection of tenders and awarding of the contract, which may include: 

a)              the key parameters for the requirement for new generation as developed   under Rule 16.4.1;

b)              requisite characteristics of the tenderers, such as technical, economic and  financial capabilities; 

c)              relevant occupational health and safety, environmental, and employment  standards that the tenderers must comply with; 

d)              the key selection criteria by which the Energy Commission will shortlist and   select a preferred tenderer; 

e)              procedures and timeframes for the tender process; and  

f)               any other factors considered relevant by the Energy Commission. 

16.4.4In developing the final request for tender under Rule 16.4.3, the Energy Commission shall consult with the Single Buyer. The Energy Commission may also consult with and request input from the other relevant Participants or other parties that it considers appropriate to enable it to undertake its functions and meet it objectives. 

16.4.5Requests for tender for new generation capacity and the tendering criteria under Rule 16.4.3 shall be made publicly available on the Energy Commission’s website. 

16.5    Assessment of Tenders for New Capacity 

16.5.1The Energy Commission shall assess tenders in accordance with the procedures, timeframes and selection criteria developed under Rule 16.4.3 and identify and recommend a preferred tenderer to the Government for endorsement. 

16.6    Finalisation  

16.6.1After endorsement of a preferred tenderer by the Government under Rule 16.5.1 the Single Buyer shall negotiate the final terms and conditions of the Generator Contract with the winning tenderer. 

16.6.2In negotiating the final terms and conditions of the Generator Contract with the winning tenderer, the Single Buyer shall have regard to its objectives under Rule 4.2. 

16.6.3The final terms and conditions of the Generator Contract as provided by the Single 

Buyer may be reviewed by the Energy Commission prior to the parties to the Generator Contract entering into the contract, to ensure that the terms and conditions of the Generator Contract are fair and reasonable, and do not unreasonably discriminate against any party as specified in Rule 6.2.  

16.6.4In the event that a tenderer considers that the terms and conditions of any proposed Generator Contract are not fair and reasonable, it may notify the Energy Commission. 

16.6.5In the event of a notification under Rule 16.6.4, the Energy Commission may attempt to mediate any disputes between the parties.           

^{_{17 Dispute Resolution}} 

17.1    Purpose 

17.1.1This Chapter sets out the procedures for raising and resolving disputes concerning the compliance of Participants with the Single Buyer Market Rules. The Energy Commission may decide to hear and determine a dispute itself or refer the dispute to the Kuala Lumpur Regional Centre for Arbitration (KLRCA) for mediation or arbitration. 

17.1.2This Chapter also sets out the processes for the Energy Commission to hear and determine disputes between Participants. 

17.1.3Each mediation and arbitration shall be conducted in accordance with the KLRCA Mediation Rules and KLRCA Arbitration Rules respectively in hearing and determining disputes. 

17.2    Application of Dispute Resolution Process  

17.2.1The dispute resolution process set out in this Chapter does not apply to disputes between Participants concerning the performance of obligations under the Generator Contracts. 

17.2.2Subject to Rule 17.2.1, the dispute resolution process set out in this Chapter relates to disputes that may arise between Participants concerning: 

a)              the application or interpretation of the Single Buyer Market Rules; 

b)              a Participant’s view that the Single Buyer has performed its functions or   otherwise acted in a manner that is inconsistent with its objectives under Rule 4.2; 

c)              the Single Buyer’s view that a Participant has acted in a manner that  unreasonably prevents the Single Buyer from achieving its objectives under Rule 4.2; or 

d)              a Participant’s view that the Single Buyer has performed its functions or  otherwise acted in manner that unreasonably discriminates against a  Participant as specified in Rule 6.2. 

17.2.3It is intended that the dispute resolution process set out in this Chapter or implemented in compliance with the Single Buyer Market Rules should to the maximum extent possible: 

a)              be simple, quick and inexpensive; 

b)              preserve or enhance the relationship between the parties to the dispute; 

c)              take account of the skills and knowledge that are required for the relevant  procedure; 

d)              place emphasis on conflict avoidance; and 

e)              encourage resolution of disputes without the involvement of the Energy  Commission, formal legal representation or reliance on legal procedures. 

17.3    Raising a Dispute  

17.3.1Subject to Rule 17.2.1 and Rule 17.3.2, a dispute relating to any of the matters set out in Rule 17.2.2 may be raised with the Energy Commission by a Participant by serving a statement to the Energy Commission that sets out: 

a)              a brief history of the dispute and the circumstances giving rise to it; 

b)              a statement of its issues in relation to the dispute, and in particular, how  the dispute relates to the matters set out in Rule 17.2.2; and 

c)              a statement of the actions that have been taken by the parties to the   dispute in attempting to resolve the dispute prior to raising it with the  Energy Commission. 

17.3.2Prior to raising a dispute with the Energy Commission under Rule 17.3.1, a party to a dispute shall ensure that:  

a)         it has raised the dispute with the other Participant or Participants that are party to the dispute; and  

b)         it has made every attempt to negotiate the dispute in good faith and come  to an agreement that resolves the dispute without the involvement of the  Energy Commission. 

17.3.3Subject to Rule 17.3.4, where a dispute is raised with it under Rule 17.3.1, the Energy Commission shall within ten (10) Working Days elect to:  a)  hear and determine a dispute itself; or  

            b)        refer the dispute for mediation or arbitration by KLRCA. 17.3.4The Energy Commission shall only hear and determine a dispute itself where: 

a)              doing so would not give rise to a conflict of interest; and 

b)              it has the necessary expertise to hear and determine the dispute itself. 

17.4    Disputes Referred to KLRCA 

17.4.1If the Energy Commission refers the dispute to KLRCA for mediation or arbitration, the Energy Commission shall serve a written notice on the parties to the dispute to that effect and the KLRCA Mediation Rules and KLRCA Arbitration Rules shall apply respectively. 

17.4.2Any mediation or arbitration conducted in accordance with Rule 17.4.1 shall be conducted in Kuala Lumpur, in English, by a single mediator or arbitrator in accordance with the laws of Malaysia. 

17.5    Disputes heard and determined by the Energy Commission 

17.5.1In hearing and determining a dispute raised under Rule 17.3.1 itself, the Energy Commission may: 

a)         request a meeting of the parties to the dispute, either together or   separately; 

b)         request parties to the dispute to provide it with any information of the form  and type that it considers necessary to assist it in making a decision. 

17.5.2A determination on a dispute may be made by the Energy Commission after consideration of the issues raised under Rule 17.3.1, or any other matters considered relevant by the Energy Commission. 

17.5.3A determination on a dispute by the Energy Commission may require a party to do any or all of the following in such manner and within such time or times as is specified in the decision: 

a)              take specified action; 

b)              refrain from taking specified action; or 

c)              pay a monetary amount to another party. 

17.5.4Each party to a dispute that is required by a determination of the Energy Commission to take specified action, to refrain from taking specified action or to pay a monetary amount must: 

a)              do so within such period after being notified of the determination as is   specified in the decision; and 

b)              report to the Energy Commission as soon as practicable after doing so. 

17.5.5Where a dispute is heard by the Energy Commission, the costs of a dispute resolution process shall be recovered from one or both parties to the dispute or in a manner otherwise decided by the Energy Commission. In deciding to allocate costs against one or more parties to a dispute, the Energy Commission may have regard to any relevant matters, including (but not limited to) whether the conduct of a party to the dispute unreasonably prolonged or escalated the dispute or otherwise increased the costs of the proceedings. 

^{_{18 Change to Single Buyer Market Rules}} 

18.1    Purpose 

18.1.1This Chapter sets out the Rule Change process to be followed in relation to submitting and deciding on Rule Change Proposals. 

18.1.2Any person may submit a Rule Change Proposal, which shall be assessed by either the Energy Commission (in the case of minor or urgent amendments to the Single Buyer Market Rules) or a standing Rule Change Panel (for all other Rule Change Proposals). 

18.2    Role of the Energy Commission 

18.2.1The Energy Commission is responsible for the administration and maintenance of the Single Buyer Market Rules.  

18.2.2Subject to Rule 18.2.3, the Energy Commission may amend the Single Buyer Market Rules via a Rule Change. 

18.2.3The Energy Commission may only make a Rule Change:  

a)              if a Rule Change Panel has provided a Final Rule Change Recommendation  to the Energy Commission in which it declares that it considers that the Rule  Change would better facilitate the objectives of the Single Buyer as  specified in Rule 4.2; or 

b)              under the Minor Rule Change Procedures specified under Rule 18.9; or 

c)              under the Urgent Rule Change Procedures specified under Rule 18.10. 

18.2.4The Energy Commission may appoint experts as required to assist it in coming to a decision on whether or not to make a Rule Change. 

18.3    Rule Change Panel  

18.3.1The Energy Commission shall convene a standing Rule Change Panel to assess and make recommendations on Rule Change Proposals. 

18.3.2The members of the Rule Change Panel shall be appointed by the Energy Commission and shall comprise an independent chair and additional members from the following organisations: 

a)              Single Buyer (one representatives); 

b)              Generators       (one    representative from     TNB      Generation       and      one 

 representative from  Independent Power Producers);  

c)              Grid Owner (one representative); 

d)              Grid System Operator (one representative); and  

e)              any other independent expert or experts as deemed appropriate by the  Energy Commission. 

18.3.3In order to be eligible to sit on the Rule Change Panel, a person shall have an understanding of the Electricity Industry or the capacity to readily acquire such an understanding. 

18.3.4The Rule Change Panel may request that the Energy Commission engage independent experts as required to assist the Rule Change Panel in performing its functions in hearing and making decisions on Rule Change Proposals. 

18.3.5The Energy Commission shall provide secretariat support to the Rule Change Panel. 

18.3.6Any costs incurred by the Rule Change Panel in assessing a Rule Change Proposal are to be borne by the Energy Commission. 

18.4    Submission of Rule Change Proposal 

18.4.1Any person can submit a Rule Change Proposal.  

18.4.2All Rule Change Proposals must be submitted in writing to the Energy Commission for review and assessment.  

18.4.3Each Rule Change Proposal shall:  

a)              set out in sufficient detail the nature and purpose of the Rule Change Proposal; 

b)              set out the basis upon which the Proposer considers that it would better  facilitate the achievement of the objectives as specified in Rule 4.2;  

c)              propose detailed drafting suggestions for the relevant chapters and rules of  the Single Buyer Market Rules which are to be amended or otherwise  affected by the Rule Change Proposal; and  

d)              state the name of the Proposer and the Proposer’s Representative. 

18.5    Initial Assessment of a Rule Change Proposal 

18.5.1The Energy Commission shall by the end of five (5) Working Days after receipt of a Rule Change Proposal, decide whether it has merit and should be considered for further assessment or should be rejected and the Single Buyer shall publish the decision of the Energy Commission on the Single Buyer Website.  

18.5.2Pursuant to Rule 18.5.1, if the Energy Commission decides that a Rule Change Proposal should be rejected, then the Energy Commission shall provide a written response to the Proposer outlining its reasons for rejecting the Rule Change Proposal.  

18.5.3Pursuant to Rule 18.5.1, if the Energy Commission decides that the Rule Change Proposal has merit and should be considered for further assessment, then the Energy Commission shall: 

a)         take any additional steps required to convene a Rule Change Panel in   accordance with Rule 18.3 to hear and decide upon the Rule Change;  

b)         cause the Single Buyer to publish the Rule Change Proposal in its entirety on  the Single Buyer Website; and 

c)          circulate the Rule Change Proposal to Participants and any other parties it considers relevant.  

18.6    Draft Rule Change Recommendation 

18.6.1After consideration of the Rule Change Proposal, the Rule Change Panel shall, by the end of twenty (20) Working Days, provide a Draft Rule Change Recommendation to the Energy Commission. 

18.6.2The Draft Rule Change Recommendation shall contain: 

a)              details of the Rule Change Proposal; 

b)              a summary of any submissions received on the Rule Change Proposal; 

c)              a recommended change to the Single Buyer Market Rules, based on the  

 Rule Change Proposal and reflecting any amendments that the Rule Change  Panel considers necessary to better facilitate the achievement of the  objectives as specified in Rule 4.2; 

d)              a statement of reasons setting out how the Rule Change Panel considers   that the Draft Rule Change Recommendation would better facilitate the  achievement of the objectives as specified in Rule 4.2; and 

e)              any other matters the Rule Change Panel considers relevant. 

18.6.3The Draft Rule Change Recommendation shall be published on the Single Buyer Website, circulated to Participants and any other parties considered relevant by the Rule Change Panel and provide a deadline for submissions, which must be at least fifteen (15) Working Days from the circulation of the Draft Rule Change Recommendation. 

18.7    Final Rule Change Recommendation 

18.7.1After consideration of any submissions on the Draft Rule Change Recommendation, the Rule Change Panel shall, by the end of fifteen (15) Working Days, provide a Final Rule Change Recommendation to the Energy Commission. 

18.7.2The Final Rule Change Recommendation shall contain: 

a)              details of the Rule Change Proposal; 

b)              a summary of any submissions received on the Draft Rule Change Recommendation; 

c)              a recommended change to the Single Buyer Market Rules, based on the  Rule Change Proposal and reflecting any amendments that the Rule Change  Panel considers necessary to better facilitate the achievement of the  objectives as specified in Rule 4.2; 

d)              a statement of reasons setting out how the Rule Change Panel considers  that the Final Rule Change Recommendation would better facilitate the  achievement of the objectives as specified in Rule 4.2; 

e)              proposed drafting to amend the Single Buyer Market Rules in accordance   with the Final Rule Change Recommendation; and 

f)               any other matters the Rule Change Panel considers relevant. 

18.7.3The Final Rule Change Recommendation must be provided to the Energy Commission and published on the Single Buyer Website. 

18.8    Final Rule Change Decision 

18.8.1After receipt of the Rule Change Panel’s Final Rule Change Recommendation, the Energy Commission shall, within ten (10) Working Days:

a)  produce a Final Rule Change Decision; or 

            b)        refer the Final Rule Change Recommendation to the Government. 

18.8.2In the event that the Energy Commission decides to refer a Final Rule Change Recommendation to the Government, the Government may direct the Energy Commission to make a Final Rule Change Decision.  

18.8.3A Final Rule Change Decision by the Energy Commission under Rule 18.8.1 or 18.8.2 shall be published on the Single Buyer Website and contain: 

a)              details of the Rule Change Proposal and Rule Change Recommendation; 

b)              a summary of any submissions or advice from Government received on the  

 Rule Change Recommendation;  

c)              a decision by the Energy Commission, which either: 

(i)    rejects the Rule Change Recommendation; or 

(ii)  accepts the Rule Change Recommendation, either in its current form or with any revisions that it considers are necessary to better facilitate the achievement of the objectives as specified in Rule 4.2; 

d)              in the event that the Energy Commission decides to reject the Rule Change  

 Recommendation, a statement of reasons setting out how the Energy  Commission considers that the Rule Change Recommendation would not better facilitate the achievement of the objectives as specified in Rule 4.2; 

e)              in the event that the Energy Commission has decided to accept the Draft   Rule Change: 

(i)    a statement of reasons setting out how the Energy Commission considers     that the Rule Change Recommendation would better facilitate the achievement of the objectives as specified in Rule 4.2; and 

(ii)   a revised draft of the Single Buyer Market Rules, amended in accordance with its Final Rule Change Decision. 

18.9    Minor Rule Change Procedures 

18.9.1Where the Energy Commission is of the view that a Rule Change or Rule Change Proposal will not materially impact or disadvantage any Participant, it may commence Minor Rule Change Procedures to amend the Single Buyer Market Rules to address the issue identified. 

18.9.2Under Minor Rule Change Procedures, the Energy Commission may unilaterally amend the Single Buyer Market Rules without calling for submissions or referring the Rule Change to the Rule Change Panel or Government. 

18.9.3Any Rule Change via the Minor Rule Change Procedures must be published on the Single Buyer Website, accompanied by: 

a)              a statement of reasons setting out the necessity for the Rule Change and  how the Energy Commission considers that the Rule Change would address  the issue identified; and  

b)              a revised draft of the Single Buyer Market Rules. 

18.10 Urgent Rule Change Procedures 

18.10.1In the event that the Energy Commission becomes aware of a material error in the Single Buyer Market Rules, or an event occurs which: a)  threatens security of supply;  

b)              threatens the viability of the Electricity Industry or a Participant; or  

c)              would otherwise materially jeopardise the achievement of the Energy  

 Commission’s objectives as set out in the Energy Supply Act 1990, the Energy Commission may commence Urgent Rule Change Procedures to amend the Single Buyer Market Rules to address the issue identified. 

18.10.2Under Urgent Rule Change Procedures, the Energy Commission may, upon consultation with the Single Buyer, amend the Single Buyer Market Rules without calling for submissions or referring the Rule Change to the Rule Change Panel or Government. 

18.10.3Any Rule Change via the Urgent Rule Change Procedures must be published on the Single Buyer Website, accompanied by: 

a)              a statement of reasons setting out the necessity for the Rule Change and  how the Energy Commission considers that the Rule Change would address  the issue identified under Rule 18.10.1; and  

b)              a revised draft of the Single Buyer Market Rules. 

^{_{19 Single Buyer Website and Publications}} 

19.1    Purpose 

19.1.1This Chapter sets out the requirements for the maintenance of a Single Buyer Website including the key reports, data sets and forecasts that shall be published on the Single Buyer Website. 

19.2    Single Buyer Website 

19.2.1The Single Buyer shall develop a Single Buyer Website to promote transparency in performing its functions under the Single Buyer Market Rules. 

19.2.2The Single Buyer Website shall be owned, operated and maintained by the Single Buyer. 

19.2.3The Single Buyer shall ensure that the Single Buyer Website: 

a)              is accessible by the general public on the World Wide Web and secure from  cyber threat and/or attacks; 

b)              presents data and information clearly; 

c)              is updated regularly for new reports, market information and data; and 

d)              provides a link to the websites of and the Energy Commission and the  Ministry of Energy, Green Technology and Water. 

19.3    Publications 

19.3.1The Single Buyer shall publish the following key reports, data sets and forecasts on the Single Buyer Website: 

a)              the current version of the Single Buyer Market Rules, including all Rule Changes; 

b)              the organisational structure of the Single Buyer; 

c)              the Terms of Reference and membership of each Single Buyer Working Group; 

d)              a schematic and description of the Dispatch Scheduling Model; 

e)              the current and historical versions of the Aggregate Three Month Ahead Dispatch Schedules; 

f)               the current and historical versions of the Aggregate Week Ahead Dispatch Schedules; 

g)              the Demand Control Plan; 

h)              the Aggregate Power Sector Gas Volume; 

i)               the current and historical Single Buyer Generation Tariff and Single Buyer Operations Tariff; 

j)               any other data, reports or information as required by a Rule Change or at  the direction of the Energy Commission; and 

k)              the Ten-Year System Outlook. 

19.4    Confidentiality Obligations 

19.4.1The Single Buyer shall at all times comply with its confidentiality obligations in publishing any information on the Single Buyer Website, including confidentiality obligations under the Generators Contracts and requirements of the Energy Commission. 

19.4.2The Single Buyer may, subject to the approval of the Energy Commission, limit accessibility to certain information available on the Single Buyer Website, which are published in accordance with the requirement of the Single Buyer Market Rules or as necessary for the transparent and efficient operations of the Single Buyer market to registered Participants only. 

^{_{20 Appendices}} 

20.1    Purpose 

20.1.1This Chapter presents the flow charts outlining the key steps in the preparation and finalisation of the Dispatch Schedules.  

20.1.2This Chapter is for illustration only and is not part of the Single Buyer Market Rules.  

20.2    Flow chart of the Three Month Ahead Dispatch Schedule 

20.2.1The flow chart is presented below. 

3-Month Ahead Dispatch Schedule

PM = Prior Month                                                 

20.3    Flow chart of the Week Ahead Dispatch Schedule 

20.3.1The flow chart is presented below. 

20.3.2It is assumed in the flow chart that Wednesday is a Working Day.  

Week Ahead Dispatch Schedule

20.4    Flow chart of the Day Ahead Dispatch Schedule 

20.4.1The flow chart is presented below. 

Day Ahead Dispatch Schedule

Forecast            Respective Generators

ANNEX   2: 

RING-FENCING PRACTICES AND PROCEDURES FOR SINGLE BUYER 

Contents

1    INTRODUCTION               84

1.1   Background 84

2    TERMS AND DEFINITIONS              86

2.1   Definitions   86

2.2   Conventions                  86

3    GOVERNANCE AND ORGANISATIONAL STRUCTURE                  87

3.1   Head of Single Buyer 87

3.2   Organisational Structure             87

4    SEPARATION FROM TNB                 89

4.1   Physical Separation     89

4.2   Corporate Identity       89

5    SINGLE BUYER OPERATIONS         90

5.1   Uniform and Transparent Operations     90

5.2   Sharing of Information                90

5.3   Highly Sensitive Confidential Information               90

6    FINANCE & ACCOUNTS 91

6.1   Finance Functions        91

6.2   Reporting      91

7    HUMAN RESOURCE MANAGEMENT            92

7.1   Human Resource Functions       92

7.2   Contract of Employment            92

7.3   Transfer of Employees between the Single Buyer and TNB                 92

8    INFORMATION TECHNOLOGY       93

8.1   Information and Communications Technology Functions   93

8.2   Information and Communications Technology Operations                  93

9    COMPLIANCE   94

9.1   Compliance Officer      94

9.2   Consultation and Escalation      94

1INTRODUCTION  

1.1      Background 

1.1.1The Single Buyer is authorised by the Minister in accordance with Section 22B of the Act to be the “Single Buyer” responsible for the management of procurement of electricity and related services, which includes planning, scheduling, procuring and settlement, in Peninsular Malaysia.  

1.1.2The Energy Commission has pursuant to the Act issued the Single Buyer Market Rules to govern the operation of the Single Buyer Market which includes a statutory duty to ring-fenced its operations to ensure the Single Buyer is able to purchase electricity and perform its functions as the Single Buyer in a fair and nondiscriminatory manner while promoting competition in the energy generation sector and enhance public confidence in the Electricity Industry.    

1.1.3    The Single Buyer Market Rules require the Single Buyer to:  

(a)            ensure no decisions or act are made in a manner that unreasonably discriminates against or favouring any Participant;   

(b)            identify and implement appropriate procedures where interactions with  other divisions and units of TNB and other Participants may give rise to  potential conflicts of interests, reduces competition or provide competitive advantage to any Participant;  

(c)             maintain a separate set of Single Buyer Accounts relating to the  performance of its functions as the Single Buyer and ensure any costs  shared between the Single Buyer and any other divisions and units of TNB  are allocated fairly and consistently; and 

(d)            limit access to any information about other Participants in the possession of  the Single Buyer that may give rise to potential conflicts of interests,  reduces competition or provide any competitive advantage to any Participant. 

1.1.4.    The purpose of this document is to set out the operating practices and procedures in the operations of the Single Buyer to ensure compliance with the general ringfencing obligations and principles as laid down by the Act and the Single Buyer Market Rules and to promote transparency in the operations of the Single Buyer. 

1.1.5    This document shall apply without derogating from the generality of the ring-fencing obligations and principles as laid down by the Act and the Single Buyer Market Rules. In the event of any inconsistency or conflict, the general principles shall apply.   

2TERMS AND DEFINITIONS  

2.1      Definitions 

2.1.1 Unless otherwise specified herein, any capitalized items in this document shall have  the meanings set out against them in the Single Buyer Market Rules. 

2.2       Conventions 

2.2.1    In this document, unless the contrary intention appears: 

(a)            any reference to a statutory provision includes any modification, consolidation or re-enactment thereof for the time being in force;  

(b)            words denoting one gender include all other genders and words denoting  the singular includes the plural and vice versa; 

(c)             headings are used for convenience only and do not affect the interpretation  of this document; 

(d)            a reference to a person includes an individual, company, trust, partnership,  joint venture, association, corporation or other body corporate and any  government agency; 

(e)            a reference to a thing includes the whole and any part of it; 

(f)             a reference to a rule, chapter or appendix is a reference to a rule, chapter or  appendix in the Ring-Fencing Practices and Procedures for Single Buyer; 

(g)            “function” includes a function, power, duty, responsibility and authority; and 

(h)            the word “include” or “including” serves only to illustrate or emphasise the provision and is not to be construed as limiting the words to which the illustration or emphasis relates. 

3     GOVERNANCE AND ORGANISATIONAL STRUCTURE  

3.1      Head of Single Buyer 

3.1.1    The Head of Single Buyer shall oversee the day-to-day operations of the Single Buyer.  

3.1.2In performing the functions of the Head of Single Buyer, the Head of Single Buyer shall have regards to and take steps to avoid conflicts of interest which may have an effect of reducing competition or provide competitive advantage to any Participant (including any division or unit of TNB). 

3.1.3The Head of Single Buyer shall have the ultimate responsibility for ensuring compliance with the ring-fencing obligations in accordance with the Single Buyer Market Rules and this document. In the event of any ambiguity, the Head of Single Buyer shall report to the Single Buyer Oversight Panel for guidance and implement any recommendations as may be made by the Single Buyer Oversight Panel.    

3.1.4The Head of Single Buyer shall be accountable to the Single Buyer Oversight Panel for compliance with the Single Buyer Market Rules.  

3.2      Organisational Structure 

3.2.1The Single Buyer shall be ring-fenced from TNB such that the management of the Single Buyer is capable of acting independently from other activities of TNB. In particular, the Single Buyer shall:   

(a)           procure electricity through scheduling dispatch on a least cost basis without discriminating or favouring any Participant and carry out load forecasts and capacity planning separately and independently from similar functions within TNB and other Participants to ensure no conflicts of interests;  

(b)           negotiate and administer Generator Contracts in a fair and balanced manner without discriminating or favouring any Participant;  

(c)            provide expertise, guidance and advice to facilitate the development of the Malaysian electricity supply industry and promote confidence in the generation sector as a whole; and  

(d)           publish key information with regard to the performance of the Single Buyer to promote transparency in accordance with the reporting requirements under the Single Buyer Market Rules and Incentive Based Regulations.  

3.2.2Subject to Rules 3.2.3, an employees of the Single Buyer shall ultimately only report to the Head of Single Buyer and shall not simultaneously hold any position in any other Participant (including in any other division or unit of TNB).  

3.2.3Employees of the Single Buyer may participate in committees, working groups, cross functional activities and meetings involving other Participants (including other divisions and units of TNB) relevant to the performance of its function as the Single Buyer provided such committees, workings groups, cross functional activities and meetings will not give rise to potential conflicts of interests, have an effect of reducing competition or provide competitive advantage to any Participant.  

3.2.4Examples of situations which may give rise to potential conflicts of interests include committees, working groups and meetings concerning tendering for new generation capacities, internal meetings and strategic developments of any Participant (including other division or units of TNB). 

4     SEPARATION FROM TNB 

4.1       Physical Separation 

4.1.1The Single Buyer shall be physically separated from other Participants (including other divisions and units of TNB).  

4.1.2The Single Buyer shall have separate works areas in different buildings or different floors with access controls that prevent personnel other than employees of the Single Buyer from accessing work areas of the Single Buyer.   

4.1.3Members of any other Participant (including any other division or unit of TNB) visiting the Single Buyer shall be considered as external visitors and may only enter into work areas of the Single Buyer when accompanied by employees of the Single Buyer.  

4.2      Corporate Identity 

4.2.1The Single Buyer shall use corporate identity and branding, including logo, corporate colours, uniforms, letterheads, business cards and website, which is distinguishable from that of any other Participant (including TNB).  

4.2.2The Single Buyer shall ensure that its name, logo, website, letterheads, e-mail and any other materials where its name and logo appear provide that the Single Buyer is a “ring-fenced entity pursuant to the Electricity Supply Act 1990”. 

5     SINGLE BUYER OPERATIONS 

5.1       Uniform and Transparent Operations   

5.1.1The Single Buyer shall practice standard operating procedures for its various functions including dispatch scheduling, contract management, invoice processing, fuel management and long term planning processes which shall be applied uniformly to ensure no Generator shall be favoured over other Generators.  

5.1.2The relevant standard operating procedures which are applicable and mandatory for all Generators to follow shall be made available on the Single Buyer Website to promote transparency in the operations of the Single Buyer.  

5.2      Sharing of Information 

5.2.1The Single Buyer shall practice standard protocols for requesting of information from other Participants (including other divisions and units of TNB).  

5.2.2Requests of information from other Participants (including any other divisions and units of TNB) shall be made in writing to the Head of Single Buyer. The Head of the Single Buyer shall evaluate the written request of information for any potential conflict of interest or effect of reducing competition or competitive advantage to any Participant. Only information which will not give rise to any conflict of interest or have an effect of reducing competition or provide competitive advantage to any Generator or other Participant may be released.  

5.2.3The Single Buyer may also release a prescribed and approved set of information periodically to all or relevant Generators.     

5.2.4The Single Buyer is encouraged to share information with all Generators and other Participants through the Single Buyer Website to promote equal accessibility.  

5.3      Confidential Information 

5.3.1The Single Buyer shall practice additional security protocols over any confidential information originating from or relating to the functions of the Single Buyer. 

6     FINANCE & ACCOUNTS  

6.1       Finance Functions 

6.1.1    Back office finance functions of the Single Buyer may be outsourced to TNB.  In the event that the Single Buyer outsources its back office functions, the              Single Buyer shall take all reasonable steps to ensure that the confidentiality        of its financial affairs is maintained. 

6.2       Reporting 

6.2.1The Single Buyer Accounts shall be prepared in accordance with the Incentive Based Regulation and Regulatory Implementation Guideline. 

7           HUMAN RESOURCE MANAGEMENT  

7.1          Human Resource Functions 

7.1.1    Human resource functions of the Single Buyer= may be outsourced to TNB.  

7.2       Contract of Employment 

7.2.1    So long as the Single Buyer is a unit, division, or subsidiary of TNB, then     existing employees for the Single Buyer shall remain as employees of TNB. 

7.3      Transfer of Employees between the Single Buyer and TNB 

7.3.1Transfer of any employee between the Single Buyer and any other division or unit of TNB shall be subject to a conflict of interest evaluation. All transferring employees shall be required to sign a declaration of confidentiality as well as be required to return all information obtained or held through the original position.  

8     INFORMATION TECHNOLOGY  

8.1       Information and Communications Technology Functions 

8.1.1    Information technology functions of the Single Buyer may be outsourced to TNB.  

8.1.2In the event that the Single Buyer outsources its information technology functions, the Single Buyer shall take all reasonable steps to ensure that the confidentiality of its affairs is maintained. 

8.1.3The Single Buyer may engage external service providers for any information and communication technology requirements in addition to TNB. The contract of engagement in any such engagement shall include confidentiality undertakings to maintain confidentiality over the affairs of the Single Buyer. 

8.2      Information and Communications Technology Operations 

8.2.1The Single Buyer may share the same information technology systems with other divisions and units of TNB however there must be firewalls and access controls in place to prevent members of other divisions and units of TNB from accessing information and systems of the Single Buyer. 

8.2.2No person other than the Head of Single Buyer may authorize TNB to share any information in the systems, servers and exchange of the Single Buyer with any other divisions and units of TNB.   

9     COMPLIANCE  

9.1       Compliance Officer 

9.1.1The Single Buyer shall designate an employee of the Single Buyer as the Compliance Officer responsible for monitoring and managing the compliance of the Single Buyer with the Single Buyer Market Rules and this document.  

9.1.2The Compliance Officer shall be in charge of implementing standard operating procedures, codes of conducts and other processes as may be recommended to ensure compliance of the Single Buyer with the ring-fencing obligations.  

9.1.3The Compliance Officer shall periodically conduct training and workshops with employees and new joiners on the ring-fencing obligations, the Single Buyer Market Rules and this document. The Compliance Officer shall brief and periodically remind other divisions and units of TNB the ring-fencing obligations under the Single Buyer Market Rules and this document. 

9.2      Consultation and Escalation 

9.2.1The Compliance Officer shall consult the Head of Single Buyer on any concerns over potential conflict of interest that may have an effect of reducing competition or provide competitive advantage to any Participant (including any division or unit of TNB) as a result of any non-compliance with this document.   

9.2.2The Head of Single Buyer may escalate material concerns to the Single Buyer Oversight Panel for determination and guidance where necessary.