By Danessa Rivera (The
Philippine Star) | Updated April 13, 2016 - 12:00am
MANILA, Philippines – Supply in the
power spot market is expected to tighten after Millennium Energy Inc. was
de-registered by the market operator.
In a statement, Philippine
Electricity Market Corp. (PEMC) said Millennium Energy was de-registered in the
Wholesale Electricity Spot Market (WESM) effective April 1, 2016.
In its notice, Millennium sought for
the termination of its WESM membership following the non-renewal of the
distribution wheeling service agreement (DWSA) with Meralco.
As a result, the power market will
experience tighter supply, PEMC president Melinda Ocampo said.
“The immediate impact will be the
reduction of offers to be traded in the market that will result in the
tightening of supply against the backdrop of increased demand during the summer
months and forthcoming election day,” she said.
While Millennium is now out of the
market, PEMC said the company should still pay its obligations.
“Notwithstanding cessation of registration,
Millenium’s outstanding obligations and liabilities to the WESM which arose
under the WESM rules shall remain valid and subsisting until fully settled,” it
said.
Last week, Energy Regulatory
Commission (ERC) chairman Jose Vicente Salazar said Millennium Energy has
decided to cancel its DSWA with Meralco because it has been incurring losses
due to high charges under the agreement.
Meralco, on the other hand, said it
offered an amicable settlement but Millennium Energy refused to pay.
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