By | Jan. 09, 2014 at 12:02am
The Energy Department has authorized Philippine Electricity Market Corp. to intervene in the wholesale electricity spot market in case power supply falls 4 percent short of demand.
Energy Secretary Carlos Jericho Petilla issued the circular adopting the criteria for PEMC intervention, following the Malampaya maintenance shutdown last month, which triggered high power prices at the wholesale electricity spot market.
The department said it “saw the need to provide for an interim measure for the market operation and/or system operator’s declaration of market intervention in order to ensure utmost consumer protection especially in times of critical situation of the supply of electric power that triggers high prices in the WESM.”
It said the WESM rules provided the ERC could only declare market suspension in cases of natural calamities, or following the official declaration of national and international security by the President.
“To temper the unusual price spikes in the WESM and to protect the interest of the public, the PEMC, as the market operator, through its president, has the option to declare market intervention in the WESM,” the circular said.
PEMC, however, can only declare market intervention when there is a supply emergency, or “where electricity supply capacity shortfall, is measured at 4 percent or below the total demand.”
It said the 4-percent trigger mechanism would be applied until the department, through the National Transmission Corp., the National Grid Corp. and the Grid Management Committee determined that a new trigger was applicable. source
No comments:
Post a Comment