by Lenie Lectura, 14 April 2015
Wholesale Electricity Spot Market (WESM) traders will soon be required to register with Philippine Electricity Market Corp. (PEMC) to be allowed to participate in the spot market.
The WESM accreditation is a process whereby an individual who is conducting or intends to conduct electric-power trading for a WESM, member undergoes evaluation by the accreditation body, which is PEMC, against the standers on qualifications, competence and credibility in performing the said practice.
The program is envisioned to be mandatory for traders in the WESM, and is aimed at enhancing the skills of the traders. It will require traders to pass the accreditation exam.
“The Department of Energy [DOE] deemed it necessary to issue a policy to provide clear and detailed responsibilities of each electric-power industry participants that have either direct or indirect involvement in the trading, scheduling and dispatching of electricity in the WESM,” the agency said.
WESM participants include generation companies (gencos); service providers of network, ancillary and metering; system operator; and direct and indirect trading participants. Each of them is represented by a trader tasked to do business on the trading floor.
Accreditation of WESM participants will ensure that all traders are equipped with the skills and competencies to protect the welfare and business interests of their respective companies, and to ensure a market where compliance to market rules prevails.
Under the concept paper for the WESM Accreditation Program, the DOE will spearhead the formulation of the program.
“If you don’t have WESM accreditations, you cannot trade. If you don’t have the expertise, you can take an exam for it. People are trading, and yet they do not know the aspects of WESM,” Energy Secretary Carlos Jericho L. Petilla said.
The accreditation, according to the concept paper, is similar to other markets, such as the Energy Exchange Australia and European Energy Exchange.