Mindanao electricity market targeted for launch in Q2 2018
DAVAO CITY, Philippines – Mindanao’s Wholesale Electricity Spot Market (WESM) is slated to launch in the second quarter of 2018, an official of the Department of Energy (DOE) said on Tuesday, October 3.
Energy Undersecretary Felix William B. Funtebella said the government is currently auditing the system of the electricity spot market for Mindanao.
“We really need to complete the trial operations for all the participants in all the market,” he added.
A ceremonial launch of Mindanao’s WESM took place here on June 26 with a price cap of P32 per kilowatt-hour. The launch, however, was not intended for commercial operations.
DOE said it would need to ensure the readiness of WESM Mindanao’s commercial operations.
This came after the DOE released a circular order declaring the launch of the spot market in Mindanao.
In the order, the DOE considered the electric power industry players in the Mindanao grid as participants of the WESM, and were asked to comply with the registration requirements as prescribed in the WESM rules and market rules no later than the launch date.
DOE Assistant Secretary Redentor E. Delola clarified the agency is not postponing the planned launch of the spot market – amid opposition from several power cooperatives (coops) in Mindanao.
In March, the Association of Mindanao Rural Electric Cooperatives Inc. (Amreco) said it was opposing the WESM scheme, saying it would jack up power rates on the island. (READ: Electricity spot market in Mindanao to reduce rates, attract investors)
Despite that, Delola insisted that “we have a very high reception from coops.”
He also said the price determination methodology for the WESM is yet to be approved by the Energy Regulatory Commission. Currently, there are hearings being conducted until the end of the year, he added.
The WESM was created after the the Electric Power Industry Reform Act (EPIRA) of 2001 mandated a restructuring of the energy sector. The spot market is the operator of the WESM. – Rappler.com