PEMC turns over spot market ops

The Philippine Electricity Market Corporation (PEMC) and the Independent Electricity Market Operator of the Philippines Inc. (IEMOP), have executed the Operating Agreement to formalize the transfer of all functions, assets and liabilities associated with market operations from PEMC to the IEMOP effective on September 26, 2018.

PEMC was represented by chairman Noel V. Aboboto and president Oscar E. Ala, while IEMOP was represented by its chairman Ralph A. Villanueva and president Francis Saturnino C. Juan during the signing.

With the signing of the Operating Agreement, IEMOP is poised to take over the market operations of the Wholesale Electricity Spot Market (WESM), a function that is currently performed by PEMC. Republic Act No 9136 requires PEMC to divest itself of this function in favor of a separate entity that is independent of the market participants.

IEMOP is prepared to assume and deliver on the promise of establishing a competitive, efficient, transparent and reliable market for electricity. RALPH A. VILLANUEVA IEMOP Chairman

To comply with the requirement, on February 6, 2018, the market participants and the DOE Secretary Alfonso Cusi approved the Transition Plan calling for the formation of an independent market operator and the transfer of the market operation functions to it. Implementing the plan, IEMOP, a non-stock, non-profit corporation, led by a Board of Directors, all of whom are independents and do not have any interest or connection to the WESM participants, was incorporated and organized.

Starting September 26, 2018, IEMOP will run the electricity market and, among other things, manage the registration of market participants, receive generation offers, come out with market prices and dispatch schedules of the generation plants, and handle billing, settlement, and collections. Under the policy and regulatory oversight of the DOE and the ERC (Energy Regulatory Commission), PEMC will remain as governing body for WESM to monitor compliance by the market participants with the market rules. /