Wednesday, June 27, 2018

2 power-sector execs: PSE not likely to manage WESM


By Lenie Lectura -

TWO officials in the power sector dismissed the possibility of the Philippine Stock Exchange’s (PSE) operating the Wholesale Electricity Spot Market (WESM), the country’s trading floor of electricity.
Newly appointed president of the Independent Electricity Market Operator of the Philippines (IEMOP) Francis Saturnino C. Juan said the proposal is not being considered at the moment.
“We’ve had discussions on that, but at the moment, it is not considered in the transition plan” because such move requires “technical capability,” he said.
“Maybe, in the future, if there are other markets that will be set up for the power sector. But, for now, it was not contemplated into the transition,” Juan said.
Energy Secretary Alfonso G. Cusi, who said in October last year the proposal was “worth studying,” said on Monday night the proposal is now regarded as a “future option if they will fail.”
Juan and Cusi are referring to the newly elected board of directors of the Philippine Electricity Market Corp. (PEMC) and the IEMOP.
WESM was previously operated by the PEMC. With the election, Cusi stepped down as PEMC chairman. This paved the way for independent stakeholders to be elected to the position. The election also moves the WESM a step closer to attaining independent market operator (IMO) status.
Fifteen board members, including 11 sectoral representatives, were elected during PEMC’s Annual General Membership Meeting held late Monday.
The elected board members from the power-generation sector were Emmanuel V. Rubio (SN Aboitiz Power), Victor Emmanuel B. Santos Jr. (First Gen), Elenita Go (SMC Global Power) and Juan Eugenio L. Roxas (FDC Utilities Inc.).
The distribution sector is represented by Rolando M. Cagampan (Manila Electric Co.), Allan L. Laniba (Leyte Electric Cooperative III), Felino Herbert Palpallatoc Agdigos (Ilocos Norte Electric Cooperative) and Gilbert A. Pagobo (Mactan Electric Co. Inc.).
Noel Villas Aboboto (TeaM Energy) and Ronald Dylan P. Concepcion (National Grid Corp. of the Philippines) will represent the supply and system operator sectors, respectively.
Four new independent directors were also elected, namely, Rauf A. Tan, Oscar E. Ala, Jesus Lim Arranza and Peter Leslie Wallace.
“It has been a fruitful two years. Now we look forward to a new era, as PEMC’s elected representatives take over the reins of governing the electricity market,” Cusi said in a speech during the event.
The election of a new PEM board brings the industry a step closer to the long-delayed transition to the IMO.
Cusi has remained firm in calling for the IMO’s establishment, overdue for more than a decade from what the Electric Power Industry Reform Act of 2001 originally required.
While PEMC and the IMO will be independent from the government, the Department of Energy will maintain oversight of the WESM operations.

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