(The Philippine Star) | Updated April 25, 2013 - 12:00am
MANILA, Philippines - The Energy Regulatory Commission (ERC has given the Philippine Electricity Market Corp. (PEMC) the authority to use P34.25 million for the establishment of the Interim Mindanao Electricity Market (IMEM), a trading floor for electricity in Mindanao.
In a decision, the ERC said it is authorizing PEMC to use P34.25 million, representing the unutilized portion of market transaction fees collection in 2012, for the establishment of the IMEM.
ERC’s final decision affirms IMEM’s budget requirement for capital expenditures and pre-operating expenses.
In its decision, ERC approved IMEM’s budget requirement of P9.98 million for pre-operating expenses and the capital expenditures budget of P8.28 million.
PEMC also asked for a budget of P19.992 million to hire a technical services consultant.
The ERC said the approval of the IMEM’s budget aims to help address the ongoing power supply crunch in Mindanao.
“The ERC is united with the Department of Energy (DOE) in its aim towards solving the Mindanao crisis and, at the same time, putting a balance on financial and price impacts with consumer welfare paramount in mind,” ERC chairperson Zenaida Cruz-Ducut said.
Established in 2003, the PEMC has been operating the spot market in Luzon since June 2006 and in the Visayas since December 2010.
The IMEM is envisioned to serve as a “day-ahead” market wherein market participants submit their nominations a day before the actual delivery or curtailment of energy.
The interim trading floor also aims to provide for a governance framework that would help ensure “free and fair competition” and public accountability in the electricity supply business.
Furthermore, the IMEM also aims to provide energy efficiency incentives to suppliers, which will contribute to the supply in the grid. Participants in the IMEM may include generation companies, distribution utilities, cooperatives and other customers.
However, the establishment of the IMEM has been set back anew to September 2013 due to delays caused by administrative and regulatory setbacks.
Energy Secretary Carlos Jericho Petilla earlier said the new target date for the commercial operation of the IMEM is September 2013. Originally, the department wanted IMEM to be in place by the start of the summer of 2013. source
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