By Myrna Velasco
September 24, 2013
Despite its dominant position as a market player, state-run Power Sector Assets and Liabilities Management Corporation (PSALM) has been seeking exemption from paying market fees for its capacity that will be channeled through the Interim Mindanao Electricity Market.
“PSALM would want to request for an exemption to said fees considering that PSALM has no transaction in the IMEM,” company President Emmanuel R. Ledesma Jr. has noted.
He added that “all available capacities of PSALM plants are fully allocated to our customers,” which he further qualified to have been covered by supply contracts.
Ledesma noted his company supports the IMEM and is not necessarily objecting to the imposition of market fees. Still, the government-owned energy firm wants to be exempted from paying such.
With the gross pool design of the interim Mindanao spot market, all capacities will still have to go through the market for dispatch scheduling, including those of PSALM.
According to market operator Philippine Electricity Market Corporation, about 78-percent of energy capacity that will be traded in the market will be PSALM’s portfolio.
PEMC President Melinda L. Ocampo emphasized that market fees to be settled by the rest of the players will go up “if PSALM will be exempted, but it would still be very minimal…less than one centavo.”
The IMEM is a ‘bridge spot market’ for the energy-scant Mindanao grid. When supply will finally turn reliable around 2015, the intent of policymakers will be to push for the establishment up of a full-blown electricity market for true competition to thrive.
Aside from promoting competitive industry set-up for the grid, one significant function of a spot market will be setting transparency in a power market’s supply-demand dynamics.
According to PEMC, participation in the IMEM “shall be mandatory for all generation capacities connected to the Mindanao power system”; as well as for all distribution utilities and end-users connected to the Mindanao transmission system.
But for end-users connected to a distribution system in the grid, their participation in the spot market will be voluntary, especially those with capabilities for load curtailment or synchronized self-generation. source
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