New entity to handle electricity spot market

By Jordeene Sheex Lagare – July 2, 2018
from The Manila Times

A new independent entity created to operate the country’s energy spot market is targeting to take over operations of the Wholesale Electricity Spot Market (WESM) by next month.

“As much as possible, we want to stick to that target by August. If not, there might be a delay by few weeks but still, as early as we can, we would want to assume market operation functions,” said Francis Saturnino Juan, president, chairman and CEO of Independent Electricity Market Operator of the Philippines (IEMOP).

IEMOP has set August 25 of this year as their target, Juan said at the sidelines of the National Transmission Corp.’s (TransCo) anniversary celebration in Quezon City last week.

The independent market operator (IMO) is currently finalizing the operating agreement to give way for independent operations of WESM, which is expected to be released in one to two weeks.

The IEMOP is waiting for the promulgation of the Department of Energy’s (DoE) circular to guarantee the effective exercise of the DoE and the Energy Regulatory Commission’s (ERC) oversight functions on WESM operations, he added.

At present, the DoE is soliciting comments for its draft circular on the governance arrangements in WESM under the IMO regime.

WESM commenced its independent operations under the IMO almost two decades after the enactment of Republic Act 9136, or the Electric Power Industry Reform Act of 2001 (Epira), which calls for the creation of the IMO a year after creating the WESM.

Energy Secretary Alfonso Cusi relinquished the chairmanship of PEMC during the PEMC’s first annual general membership meeting on June 25, paving the way for independent stakeholders to be elected into the company.