Petilla: Other plants violated WESM rules

MANILA, Philippines – Energy Secretary Carlos Jericho Petilla said other facilities violated the Wholesale Electricity Spot Market’s (WESM) rules aside from the Malaya thermal power plant.

While not naming the power plants he’s referring to, Petilla said that the initial investigation “showed that there were other plants that did not offer or under-offered, meaning if you have 100 megawatt (MW) capacity and you only offered 60 MW instead of 100 MW.”

Petilla added, “By not offering your full capacity, that’s anti-competition.” He also urged the Energy Regulatory Commission (ERC) to investigate.

Petilla and the Power Sector Assets and Liabilities Management Corporation (PSALM) recently discussed potential WESM violations stemming from PSALM’s failure to dispatch energy to the grid despite offering the Malaya plant’s capacity in the spot market.

PSALM president Emmanuel Ledesma explained that the “technical limitations” of Malaya – its slow start-up time and low fuel replenishment rate – made it impossible for Malaya to be constantly traded on the WESM.

The power plant recently garnered an exemption from WESM’s must-offer rule via DOE circular DC2014-01-0003. The circular designates Malaya as a must-run unit (MRU).

Under WESM Rules, MRUs are generating units identified and instructed by the National Grid to provide needed power supply on a real-time basis or following a schedule necessary to ensure reliable power in the grid. This is notable in instances of a shortfall of energy.

When under a must-offer rule, generation companies registered in the WESM must declare and offer the maximum generating capacities of their plants in the spot market. This prevents power plants from withholding energy. – Rappler.com