(The Philippine Star) | Updated December 3, 2017 - 12:00am
MANILA, Philippines —
The transition committee currently managing the Wholesale Electricity Spot
Market (WESM) is not keen on passing the management of the power trading floor
to the Philippine Stock Exchange (PSE) since it deals with a complex commodity.
In an interview,
Philippine Electricity Market Corp. (PEMC) president Oscar Ala said the main
focus of the transition committee created for the interim management of WESM is
its transfer to an independent market operator (IMO).
However, WESM requires
technical management to deal with the complexities of electricity, he said.
“Compared to other
commodities, electricity cannot be stored, although there are exemptions like
pumped-storage hydroelectricity or battery energy storage,” he added.
Earlier, PSE president
Ramon Monzon made a proposal to the Department of Energy (DOE) to let the
bourse operate the electricity spot market.
Energy Secretary
Alfonso Cusi said the agency is open to PSE’s proposal, but is also waiting for
other options to operate the WESM.
The DOE is also seeking
industry input as it lays down the rules for the transition of the WESM to an
IMO and has drafted a circular that will promulgate and adopt the IMO
Transition Plan.
The IMO Transition Plan
sets out the formation and structure of the IMO, the resulting WESM governance
structure, and the manner by which transition to the IMO shall be accomplished.
Incorporated in 2003,
PEMC is an entity created under the Electric Power Industry Reform Act of 2001
(EPIRA) to oversee market governance and perform the functions of the market
operator.
But the law stated that
the WESM must be transferred to an independent market operator or IMO one year
after its establishment.
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