PEMC Board approves IMO shift for WESM

Underpinned by the go-signal of the board of the Philippine Electricity Market Corporation (PEMC), Energy Secretary Alfonso G. Cusi is finally making good the promise of this administration to finally transform the operations of the Wholesale Electricity Spot Market (WESM) into one that is managed by an independent market operator or IMO.

PEMC, in a statement to the media, has noted that the PEM Board has already approved the transition plan for the creation of an IMO firm for the power spot market.

Cusi sounded off he recognizes “the importance of implementing the IMO transition in accordance with the specified timeline,” while stressing that “this has been overdue – it has been delayed for more than a decade.”

The energy chief added “now is the best time to usher in its independence as provided in the law.”

The next task then will be to incorporate with the Securities and Exchange Commission (SEC) the company that shall duly serve as IMO entity for the WESM.

The IMO will primarily take over the management and operations of the trading functions of the electricity spot market; while governance shall be left with PEMC.

At this phase, the prevailing market operator noted that “the IMO will be incorporated as a non-profit entity which is independent of the government and industry participants,” while PEMC “shall remain as the governing body of the spot market with board of directors composed of participant-representatives and independent members.”

As previously indicated by Cusi, the IMO firm shall be in place around June this year. To have the formation of the new market operator firmed up, at least five independent individuals shall be chosen as incorporators of the WESM-IMO.