Distribution utilities in Mindanao must submit WESM requirements, follow rules—ERC chief

By Lenie Lectura -November 25, 2019
from Business Mirror

Photo shows the Victoria Substation of Davao Light and Power Co. Inc. in Davao City.

The Energy Regulatory Commission (ERC) has directed all distribution utilities (DUs) and Wholesale Electricity Spot Market participants in Mindanao, to comply with all WESM requirements to ensure the overall readiness of the system.

“We note that based on the results of the recent 19th WESM Mindanao Readiness Assessment [WMRA] Meetings conducted by the Department of Energy (DOE), there was a delay in the completion of WESM registration by the participants in Mindanao, despite the mandatory membership as provided for by the WESM Rules.

Therefore, the Commission hereby enjoins the DUs in Mindanao to comply with all the WESM prerequisites, and to strictly follow the Interim Mindanao Dispatch Protocol (IMDP),” ERC Chairman and CEO Agnes VST Devanadera said Friday.

The WMRA also noted the low turnout of participation in the Trial Operations Program and the incidence of manual load dropping despite over supply of generating capacity in the region resulting from the DUs’ noncompliance with the IMDP.

The completion of the WESM registry for Mindanao Trading Participants and the active participation of such trading participants, particularly the DUs, are essential to the forthcoming commercial operations date of the WESM in Mindanao.

“The ERC enjoins full compliance with the WESM rules to avoid recurrence of manual load dropping. Otherwise, the commission shall be constrained to impose the necessary fines and penalties on the DUs for failure to comply with the WESM directives,” said Devanadera.

The WESM in the Mindanao grid was launched in June 2017, with commercial operation expected to happen next year.

The WESM is the country’s trading floor of electricity. It is a centralized venue for buyers and sellers to trade electricity as a commodity, where prices are based on actual use (demand) and availability (supply).

WESM started commercial operations in the Luzon grid in June 2006, and in December of 2010 in the Visayas grid.

Image Credits: www.davaolight.com