IEMOP takes over electricity spot market

By Lenie Lectura – September 27, 2018
from Business Mirror

THE Independent Electricity Market Operator of the Philippines Inc. (IEMOP) on Wednesday formally took over the Wholesale Electricity Spot Market (WESM) from the Philippine Electricity Market Corp. (PEMC).

The takeover was in compliance with the mandate of Republic Act 9136, otherwise known as the Electric Power Industry Reform Act (Epira), for the WESM to be run by an independent operator.

“The IEMOP fulfills the promise of Epira to foster competition in the WESM through an independent market operator. Our existence and our service usher in the electricity market’s inevitable transformation to a more competitive state for the ultimate benefit of the electricity consumers,” IEMOP President Francis Saturnino C. Juan said in his message to IEMOP employees on opening day.

IEMOP facilitates the registration and participation of generating companies, distribution utilities, directly connected customers or bulk users, suppliers and contestable customers in the WESM.  It also determines the hourly schedules of generating units that will supply electricity to the grid, as well as the corresponding spot-market prices of electricity via its Market Management System. Moreover, it manages the metering, billing, settlement and collection of spot trading amounts for the benefit of the market participants.

Under the policy and regulatory oversight of the Department of Energy (DOE) and the Energy Regulatory Commission (ERC), PEMC will remain as governing body for WESM to monitor compliance by the market participants with the market rules.

IEMOP is a nonstock, nonprofit corporation governed by a professional board of directors composed of individuals not affiliated with any of the electric companies that trade in the WESM.  The IEMOP carries out the mandate to pursue the WESM objective to have a transparent, fair, competitive, and reliable market for the trading of electricity throughout the Philippines. As market operator, IEMOP is bound to strictly comply with the Epira, its implementing rules and regulations, the WESM rules and other related issuances of the DOE.

The WESM is a landmark achievement established pursuant to Republic Act 9136.  From its commercial operation in 2006, the electricity market has been functioning as a central venue for buyers and sellers to trade electricity as a commodity where prices are based on supply and demand interaction.