April 28, 2016
from Business Mirror
THE Department of Energy (DOE) will call a meeting with the Manila Electric Co. (Meralco) and Millennium Energy Inc. to discuss possible solutions, following the nonrenewal of the distribution wheeling service agreement (DWSA).
“We will all sit down and talk. Millennium’s 100 megawatt (MW) is an additional comfort of power to the grid. Maybe both can come up with a formula suitable for both firms,” Energy Secretary Zenaida Y. Monsada said.
Just recently, the Philippine Electricity Market Corp. (PEMC) said Millennium Energy was deregistered in the Wholesale Electricity Spot Market (WESM) effective April 1.
Millennium sought for the termination of its WESM membership following the nonrenewal of the DWSA with Meralco.
Energy Regulatory Commission (ERC) Chairman Jose Vicente Salazar said the DSWA was terminated because Millennium Energy has been incurring losses due to high charges.
Meralco said it offered an amicable settlement. However, Millennium Energy still refused to pay.
Reyes said Meralco “definitely” wants to cooperate and “find something that works for both parties.”
“We can sit down directly with them. I think the [Energy] secretary has more pressing matters, so we’ll try to see if we can enter into some kind of viable arrangement with Millennium,” Reyes said.
Notwithstanding cessation of registration, Millennium’s outstanding obligations and liabilities to the WESM, which arose under the WESM Rules, shall remain valid and subsisting until fully settled.
“PEMC followed its procedures in deregistering Millennium from its roster of WESM membership. The immediate impact will be the reduction of offers to be traded in the market, which will result in the tightening of supply against the backdrop of increased demand during the summer months and forthcoming election day,” PEMC President Melinda L. Ocampo said.
PEMC is the WESM operator.
WESM is a centralized venue for buyers and sellers to trade electricity as a commodity where its prices are based on actual demand and supply.