By Myrna M. Velasco – August 9, 2019, 10:00 PM
from Manila Bulletin
The operator of the Wholesale Electricity Spot Market (WESM) has been directed to refund P1.774 billion to its trading participants; due to “miscalculation” in the net settlement surplus (NSS) allocations and settlements in the spot market.
The Energy Regulatory Commission (ERC) said the market operator (MO) or the Philippine Electricity Market Corporation (PEMC) shall carry out adjustments in its billed NSS or do a refund to the trading participants.
Considered trading participants are the generation companies (GenCos) that have been offering their capacities in the WESM; as well as the directly registered distribution utilities and electric cooperatives that have been purchasing part of their supply from the spot market.
The miscalculations in NSS, according to the regulatory body, had accrued from the billing months of June 2018 to May this year.
The ERC emphasized that based on its findings, it was able to flag “inconsistencies in the share of generators and customers in the NSS allocations issued by PEMC or the market operator (MO).”
The Commission further noted that “upon validation, PEMC/MO reported to the ERC that the miscalculations were caused by its erroneous applications of the formula in its software that is used to determine NSS allocations.”
From that, the regulatory body specified that it has applied the necessary corrections, hence, it is now directing PEMC or the MO to enforce corresponding refund or billing adjustments to its customers.
“As a result of the corrections in the NSS allocations ordered by the Commission, WESM trading participants are expected to either be entitled to a refund or will be made to return excess allocations,” the ERC said.