By: Ronnel W. Domingo - 05:10 AM
September 20, 2018
A private sector-run spot market for
electricity was firmed up as state-entity Philippine Electricity Market Corp.
(PEMC) executed an agreement with the Independent Electricity Market Operator
of the Philippines Inc. (IEMOP) to formalize the transfer of all its functions,
assets and liabilities.
IEMOP is a nonstock, nonprofit
corporation, led by a board of directors comprised entirely of independents,
“who do not have any interest or connection to the WESM participants.”
Effective Sept. 26, IEMOP will run
the wholesale electricity sport market (WESM) and, among other things, manage
the registration of market participants, receive generation offers, come out
with market prices and dispatch schedules of the generation plants and handle
billing, settlement and collections.
PEMC will remain as governing body
for WESM to monitor market participants’ compliance with the market rules,
following the policy and regulatory oversight of the Department of Energy (DOE)
and the Energy Regulatory Commission (ERC).
In a joint statement, PEMC chair
Noel Aboboto said both PEMC and IEMOP were taking steps “to further the
development of the electricity market and to ultimately fulfill the legal
mandate” for the transition to an independent market operator.
“IEMOP is prepared to assume and
deliver on the promise of establishing a competitive, efficient, transparent
and reliable market for electricity,” IEMOP chair Ralph Villanueva said. “We
are ready and committed to propel the electricity market to new heights of
success.”
In July, the ERC awarded to
Makati-based Potomac Economics Ltd. (PE Software Analytics) a contract for
technical assistance in the creation of market analysis framework for the
surveillance and monitoring of the WESM.
The ERC said the engagement with Potomac
would ensure abuse of market power or anticompetitive behavior would be
adequately addressed.
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