WESM operator asks regulator to OK budget

By Lenie Lectura - October 24, 2017
https://businessmirror.com.ph/wesm-operator-asks-regulator-to-ok-budget/


THE Philippine Electricity Market Corp. (PEMC) is asking the Energy Regulatory Commission (ERC) to approve its 2018 proposed budget of P822.20 million.

Of the proposed amount, the operator of the Wholesale Electricity Spot Market (WESM) wants to allot P359.50 million for personnel services (PS), P392.708 million for maintenance and other operating expenses (MOOE) and P69.92 million for capital expenditure (capex).

In its nine-page application, the PEMC said the budget is based on the estimated market-fee rate (MFR) of P0.0104 per kilowatt-hour.

“The indicative MFR is based on the Luzon and the Visayas energy forecast of 79,262,97 gigawatt hours for 2018,” the PEMC said adding that the market fee shall be recovered from Luzon and the Visayas generators pending the launch of WESM’s commercial operations in Mindanao.

The MFR shall be apportioned among generators where the WESM operates and according to the volume traded by each in the WESM.

The PEMC said that PS pertain to the salaries and benefits of 160 employees in Luzon and the Visayas.

MOOE, meanwhile, include, among others, costs of the market audit, participant development costs, honorarium, rent, utilities, repairs and maintenance, contracted services, insurance, training, travel and transportation, participant development costs and the cost of the market audit required under the WESM rules.

Capex, on the other hand, consists of enhancements and upgrades to the market management system and corporate infrastructure, and the cost of lease improvements.