Energy Regulatory Commission (ERC) has approved the P703-million budget of the Wholesale Electricity Spot Market (WESM) operator for calendar year 2014.
In a decision, the Philippine Electricity Market Corp. (PEMC) was granted the budgetary requirements in the amount of P702,984,728, lower than the P814,529,000 stated in its application.
The ERC said there was an unutilized market fee of P4.75 million out of PEMC’s approved budget for calendar year 2013. Pursuant to an earlier order, any over-recovery or excess in the previous year’s market fees shall be refunded to the customers and deducted from the total budget approved for the succeeding year.
“Thus, the herein approved market fee for calendar year 2014 shall be reduced by the unutilized market fee for calendar year 2013,” said the ERC in its 35-page order.
Of the total amount, P380,450,736 is allotted for personnel services; P249,017,530 for maintenance and other operating expenses; P61,077,000 for capital expenditures; P3,312,310 for market-enhancement projects; and P13,877,152 as provision for the Department of Energy/ERC monitoring facilities.
PEMC’s proposed market-enhancement projects are intended for improving the performance of its core functions. This will allow it to evaluate and implement market rules and regulatory changes, it said.
PEMC was also directed by the ERC to submit within 30 days the contracts it entered into with service providers; list of programs and projects undertaken at end-2014; and status of projects.
The WESM will soon be led by the private sector via the appointment of an independent market operator before the end of the Aquino administration.