Govt eases trading rules of WESM

By Alena Mae S. Flores – January 22, 2018 at 06:15 pm

The Energy Department and Philippine Electricity Market Corp., operator of the Wholesale Electricity Spot Market, have agreed to allow power generation companies with expired certificates of compliance or with pending CoC applications with the Energy Regulatory Commission to operate and trade in the market.

Energy Secretary Alfonso Cusi gave assurances that he would not allow any disruption in the country’s power supply as a result of the delay in the processing of applications with the ERC, including CoC applications, due to the suspension of four commissioners by the Office of the Ombudsman.

About 26 generation companies with a combined output of 3,314.60 MW have expired or have expiring COCs in 2018.

“The move aims to protect electricity consumers by preventing disruptions in WESM transactions while the ERC issue is being sorted out,” Cusi said after approving the resolution on the agreement with the board of PEMC.

“The paramount consideration is the overall protection of public interest and the security of the supply of power. This is needed for the Philippines to meet its economic targets. This should take precedence over administrative issuances especially when an administrative body is unable to act,” Cusi said.

He also directed PEMC and the department to work closely with the ERC to ensure the continuing operations of power plants and allow power generation from new plants that will be completed.

Under the DoE-PEMC resolution, power generation companies with expired CoCs can continue trading upon proof of submission of their application for the renewal of their CoC with ERC.

“New plants will also be permitted to trade or submit offers to the WESM upon proof of completion of testing and commissioning and other requirements for the issuance of a CoC,” he said.

The CoC is a requirement for the registration and continued participation of generation companies in the WESM.