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| This is an informative document and does not replace the regulation issued by the CREG. |
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Firm Energy Obligation
Commitment Period of the OEF |
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The commitment period of the OEF is decided by the owner or the commercial representative of the generation resource that backs up the OEF. If the generation plant is new, meaning at the time of the auction its construction has not started, the obligation to generate energy can be between a minimum of one year and a maximum of twenty years. If it is a special resource or at the time of the auction the generation plant or unit is in the process of construction or installation, the obligation to generate energy is between one and ten years and if it is an existing resource, which implies that it is ready to operate (or it is already operating) in the MEM at the time of the auction, the commitment period of the OEF is one year.
During the commitment period of the OEF, the generator receives the Reliability Charge remuneration, a value that is determined in the auction where the generating company participated to obtain its OEF.
Table 2. Commitment Period of the OEF
| Generation Plant or Unit |
Description |
Commitment Period of the OEF |
| New |
At the time of the auction its construction has not started |
Between 1 and 20 years |
| Special |
At the time of the auction the generation plant or unit is in the process of construction or installation |
Between 1 and 10 years |
| Existing |
At the time of the auction it is ready to operate (or it is already operating) in the MEM |
1 year |
Figure 2. Energy to be auctioned and Commitment Period
Duties Associated with the OEF
During the commitment period of the OEF, the generator who acquired this obligation commits to:
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Generate, as required in the ideal dispatch, the quantity of firm energy associated with its OEF when the Spot Price exceeds the Scarcity Price. |
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Maintain active the fuel supply and natural gas transport contracts (if applicable) to allow energy production in case the generator is required to fulfill its OEF. In case the commitment period of these contracts is not congruent with that of the OEF, the generator should maintain active the compliance guarantees to assure the renewal of these fuel and transport contracts. |
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