The launching of the Visayas Wholesale Electricity Spot Market, where suppliers and buyers can trade electricity as a commodity, has been deferred anew, based onadvice from the Department of Energy.

“We cannot discount the fact that in the Visayas there is inadequate capacity both in the transmission and generation facilities," Energy Secretary Angelo Reyes said in a statement from his office.

Reyes, however, noted that the Philippine Electricity Market Corporation, the governing body and market operator of the WESM, and its Market Management System are technically prepared.

The PEMChad already certified on Feb. 22 the technical readiness of the electricity bourse to begin commercial operations in the Visayas, the statement added.

The DOE decision to defer the launch was based on results ofthe study conducted by the Intelligent Energy Systems, a consultancy firm based in Australia, that assessed the expansion of WESM in the Visayas.

 Reyes said in the statement that international experience indicate that competitive markets should not begin its commercial operation in a tight reserve situation as this will give rise to a situation where all existing generators will end up with market power.

Such conditions would be very difficult to administer successfully and may discredit the benefits of WESM, he added.

Reyes then formed a Special Committee composed of the heads of PEMC, Power Sector Assets and Liabilities Management Corp., National Power Corp., National Transmission Corp. , and National Electrification Administration tasked to resolve all remaining issues within 60 days, the statement said.

The DOE is closely  looking into the readiness of the distribution utilities to participate in the WESM.

In November  last year,PEMC said it had registered 37 trading participants, including 14generators,23distribution utilities, rural electric cooperatives, and industrial and commercial customers.

WESM, which originally set its Visayas launch on Jan. 26, delayed the opening to give participants more time to complete registration and test their market trading interface systems.

PEMC president LasseHolopainen said in the DOE statement that  the electricity supply problems in the Visayas must be addressed ultimately. If not, the quality and consistency of supply in the region will continue to deteriorate.*NLG

back to top