The Philippine Star

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.

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