| NEW ENHANCED DISPATCH ARRANGEMENT |
| New Enhanced Dispatched Arrangement or NEDA is designed to enhance cost efficiency of the Single Buyer market through short run (daily) competition. |
| The main objectives of NEDA are to: |
- Enhance cost efficiency in generation through short-run competition;
- Enable energy efficient options, particularly the use of efficient technology such as co-generation to participate in the electricity market;
- Provide opportunity for non-PPA/SLA Generators, such as Cogeneration Plant, Small Renewable Plant, Franchise Utilities, Part PPA/SLA Generators, and Expired PPA/SLA Generators to operate as Merchant Generators to sell energy to the Single Buyer; and
- Enable PPA/SLA Generators, Expired PPA/SLA Generators and Part PPA/SLA Generators to enhance their business options by maximizing the use of existing facilities in a cost-efficient manner for the benefit of the electricity supply industry and the consumer.
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| As a means of easing in NEDA, a first phase was introduced that only allowed generators with a PPA or SLA agreement to participate and that limited competition to bidding of VOR. This arrangement does not allow bidding of the fuel cost component of operational cost. |