THE implementation of an interim electricity market design for Mindanao won’t be ready next month as originally planned pending the green light from the Energy Regulatory Commission (ERC).
Energy Secretary Carlos Jericho Petilla said the implementation of the interim market will be delayed.
“The funds are there with the Philippine Electricity Market Corp. [PEMC]. The problem is we can’t touch it because we don’t have any ERC approval yet,” said Petilla.
The Department of Energy has tasked the PEMC to develop and implement the interim electricity market. PEMC has a pending petition with the ERC to allow it to allocate P34.3 million for the said market.
“We have stressed to ERC and I’m quite sure they’re also aware of the problem of Mindanao and even they are assuring PEMC that they will prioritize the ERC approval of the budget. The money is already there, what we’re asking is a go signal to touch it,” Petilla said.
In the meantime, Petilla said the agency may tap from the 160-megawatt (MW) interruptible load program (ILP) to address the power shortfall in Mindanao.
The ILP provides incentives for the commercial users, large power users with their own power-generation capacity to sell their excess power to the grid.
“We are now doing an inventory on the ILPs. We have 12 ILPs with ERC approval already. Another nine are pending ERC approval. Hopefully they will get the approval before the elections,” Petilla said.
Under Department Circular 2013-01-0001, Petilla said the PEMC will develop a market design specific to Mindanao which has been experiencing rotating brownouts due to some generation capacity deficiencies. This design is referred to as the interim Mindanao electricity market.
“There is a need to establish a venue for transparent and efficient utilization of all available capacities particularly during periods wherein the contracted supply capacities of the load customers such as distribution utilities and industrial customers are not enough to meet their demand, and at the same time reflecting the true cost of electric power to encourage dispatch and utilization of existing available power generating facilities and/or attract the entry of new generating capacities in Mindanao,” stated the circular.
Pending approval of the rules, the PEMC shall file with the ERC an application to secure the necessary funding. source
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