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POWER
market operator Philippine Electricity Market Corp. (PEMC)
said on Wednesday the Visayan operation of the wholesale
electricity spot market (WESM) will be delayed to allow
further time for participants to complete registration
and test their market-trading interface systems.
Initially targeted to start operation on January 26,
PEMC said after deliberations were held by the PEM Board
on January 22, a decision was reached to delay Visayas
Commercial Operations and extend the run of the Live
Dispatch Operation (LDO).
“Once we
have completed the LDO, the PEM Board will reconvene and
deliberate on the LDO results before it submits its
recommendation to the Department of Energy, which needs
to give its final approval for full commercial
operations in the Visayas,” Lasse A. Holopainen, PEMC
president, said.
He added
that the implementation of the LDO, which will run for
at least two weeks, is intended to determine the
readiness of the market participants and their
respective systems to operate in a commercial
environment. All energy in the Visayas will be scheduled
through the market during this time. However, there
will be no financial settlement.
PEMC
executive vice president Mario R. Pangilinan said all
systems that have been put in place during the Visayas
TOP are being utilized in the LDO to familiarize the
participants and would-be customers with procedures
associated with commercial operations.
Since
June 2006, WESM began commercial operations in Luzon and
has since contributed changes to the industry, which has
increased the privatization program of generation
capacities with over P119 billion worth of generation
assets privatized since the market started.
“The
presence of WESM is encouraging investors to invest in
the Philippine power sector. Operation of the market in
the Visayas will ensure the efficient pricing of
electricity as well as the security of long-term power
supply,” said Holopainen.
The
establishment of WESM is expected to create a more
robust energy industry by encouraging competition and
efficiency among industry players.
The
Electric Power Industry Reform Act (Epira) of 2001
mandated the establishment of the electricity spot
market to set the price of electricity through market
forces, free from the restrictions of regulation.
Transparency in market operations transactions ensure
the reflection of the true cost of electricity and
improve the delivery of power supply to the end-users.
Meanwhile, PEMC and the Energy Regulatory Commission (ERC)
also signed a memorandum of agreement (MOA) to harmonize
the application of certain provisions of the Epira.
The MOA,
according to PEMC, is in relation to the monitoring of
trading activities in the WESM.
“The
agreement delineates the roles of PEMC and ERC in
investigations and enforcement procedures for breaches
and commission of anticompetitive behavior,” said
Rodolfo B. Albano Jr., chairman of ERC.
He added
that market participants are assured that with the MOA
in place, market abuse and anticompetitive behavior will
be preempted and discouraged.
The ERC
is mandated by the Epira to enforce the rules and
regulations of the electricity spot market. PEMC was
organized to operate and govern the WESM, as well as
promote competitiveness and efficiency among the market
participants.
Holopainen said PEMC and its market governance
committees will continue to be vigilant in enforcing the
WESM rules that govern the electricity market.
“In this
way, we support the work of the Commission through
ensuring a fair, transparent and disciplined market,”
said Holopainen. |
