PEMC delists Millennium Energy

Supply in the power spot market is expected to tighten after Millennium Energy Inc. was de-registered by the market operator.

In a statement, Philippine Electricity Market Corp. ( PEMC) said Millennium Energy was de-registered in the Wholesale Electricity Spot Market ( WESM) effective April 1, 2016.

In its notice, Millennium sought for the termination of its WESM membership following the non-renewal of the distribution wheeling service agreement (DWSA) with Meralco.

As a result, the power market will experience tighter supply, PEMC president Melinda Ocampo said.

“The immediate impact will be the reduction of offers to be traded in the market that will result in the tightening of supply against the backdrop of increased demand during the summer months and forthcoming election day,” she said.

While Millennium is now out of the market, PEMC said the company should still pay its obligations.

“Notwithstanding cessation of registration, Millenium’s outstanding obligations and liabilities to the WESM which arose under the WESM rules shall remain valid and subsisting until fully settled,” it said.

Last week, Energy Regulatory Commission (ERC) chairman Jose Vicente Salazar said Millennium Energy has decided to cancel its DSWA with Meralco because it has been incurring losses due to high charges under the agreement.

Meralco, on the other hand, said it offered an amicable settlement but Millennium Energy refused to pay.