By
Lenie Lectura - November 25, 2019
The Energy Regulatory
Commission (ERC) has directed all distribution utilities (DUs) and Wholesale
Electricity Spot Market participants in Mindanao, to comply with all WESM
requirements to ensure the overall readiness of the system.
“We note that based on
the results of the recent 19th WESM Mindanao Readiness Assessment [WMRA]
Meetings conducted by the Department of Energy [DOE], there was a delay in the
completion of WESM registration by the participants in Mindanao, despite the
mandatory membership as provided for by the WESM Rules.
Therefore, the Commission hereby enjoins the DUs in Mindanao to comply
with all the WESM prerequisites, and to strictly follow the Interim Mindanao
Dispatch Protocol [IMDP],” ERC Chairman and CEO Agnes VST Devanadera said
Friday.
The WMRA also noted the
low turnout of participation in the Trial Operations Program and the incidence
of manual load dropping despite over supply of generating capacity in the
region resulting from the DUs’ noncompliance with the IMDP.
The completion of the
WESM registry for Mindanao Trading Participants and the active participation of
such trading participants, particularly the DUs, are essential to the
forthcoming commercial operations date of the WESM in Mindanao.
“The ERC enjoins full
compliance with the WESM rules to avoid recurrence of manual load dropping. Otherwise,
the commission shall be constrained to impose the necessary fines and penalties
on the DUs for failure to comply with the WESM directives,” said Devanadera.
The WESM in the
Mindanao grid was launched in June 2017, with commercial operation expected to
happen next year.
The WESM is the
country’s trading floor of electricity. It is a centralized venue for buyers
and sellers to trade electricity as a commodity, where prices are based on
actual use (demand) and availability (supply).
WESM started commercial
operations in the Luzon grid in June 2006, and in December of 2010 in the
Visayas grid.
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