PEMC to turn over WESM to new operator in Aug
The Philippine Electricity Market Corp. (PEMC) is turning over the operations of the country’s wholesale electricity spot market (WESM) to the independent market operator (IMO) next month.
The PEMC and the IMO, called the Independent Electricity Market Operator of the Philippines (IEMOP), are targeting to sign the operating agreement (OA) by Aug. 25, IEMOP chairman, president and CEO Francis Saturnino Juan said in an interview.
“The target set for the signing of the operating agreement is set on Aug. 25. As much as possible, we want to stick to that target… As early as we can, we want to assume market operator functions,” he said.
The OA is set to govern the relationship between the two entities and would embody the duties and responsibilities of the IMO towards PEMC, the Department of Energy (DOE), the Energy Regulatory Commission (ERC) and the other stakeholders.
The OA will also formalize the turnover of the use of the Market Management System (MMS) and other trading platforms, as well as the transfer of market operations functions.
Both parties are finalizing the draft of the agreement, set for release in a few weeks time.
They are also waiting for the final DOE department circular detailing guidelines and the oversight of the agency and of the power regulator over WESM.
Once all of these are signed and issued, the transfer of the market operations from PEMC to WESM will commence, Juan said.
The IEMOP is working on initial transition activities— such as completing company registration, identifying office location, finalizing human resources transfer.
This is after Energy Secretary Alfonso Cusi relinquished his chairmanship in the PEMC last week, marking the start of the independent operations of WESM as mandated by the Electric Power Industry Reform Act of 2001 (EPIRA).
PEMC was incorporated in 2003 and was constituted as the autonomous group market operator to oversee market governance and perform the functions of the market operator in the WESM which was created under the EPIRA.
But under EPIRA, the WESM must be transferred to an IMO one year after its establishment.
During the annual general membership meeting of PEMC last week, it elected board members Emmanuel Rubio (SN Aboitiz Power), Victor Emmanuel Santos Jr. (First Gen Corp.), Elenita Go (SMC Global Power Holdings Corp.), Juan Eugenio Roxas (FDC Utilities Inc.), Rolando Cagampan (Meralco), Allan Laniba (LEYECO III), Felino Herbert Palpallatoc Agdigos (Ilocos Norte Electric Cooperative), Gilbert Pagobo (Mactan Electric Co. Inc.), Noel Villas Aboboto (Team Energy), Ronald Dylan Concepcion (National Grid Corp. of the Philippines) and Francis Saturnino Juan (Independent Electricity Market Operator of the Philippines).
Four new independent directors were also elected namely, Rauf Tan, Oscar Ala, Jesus Lim Arranza, and Peter Wallace.
The DOE also appointed the officers of the IEMOP who will work on completing all transition activities needed for the IMO to assume the market operations functions as envisioned under the transition plan for a one-year period.
The IMO will be initially headed by Juan, as chairman, president and CEO; Jose Mari Bigornia as COO; Carrol Tang, Johnny Tuason, Jose Rodelio Mangulabnan, Richard Nethercott and Lt. Gen. Ralph Villanueva as board members.