No more suspension of WESM rules in summer

by Myrna Velasco, Ferbuary 1, 2015
from Manila Bulletin

The proposed suspension of the Wholesale Electricity Spot Market’s (WESM) must-offer rule supposedly enforced for hydro and diesel plants will no longer be pursued as part of the summer months’ contingencies, according to Energy Secretary Carlos Jericho L. Petilla.

Instead, he noted that the consensus will be for these considerably critical plants to just temporarily cease running a week before the strike of the anticipated high demand period — which will start March.

“We’ve already brought it up with all the players… and they said, the suspension of must-offer rule is no longer needed – that came from them,” the energy chief stressed.

He added that when he had thrown a question about ‘selective application’ of a temporarily suspended MOR, there had been no meeting of the minds even among the industry players.

“I asked them: what is the benefit of must-offer rule suspension that is selective? So what I just told them: a week before summer, just don’t run your plants anymore, especially for hydros so you can save on water,” Petilla noted.

Earlier propositions reckoned that if some WESM rules will be temporarily stopped from enforcement – say, over a specified period – it can be assured that the hydro plants would be able “to save water for summer in order to have additional capacity,” for the grid.

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