SUMMARY
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MANILA, Philippines – The Energy Regulatory Commission (ERC) finally approved the P34.25-milion budget for the Interim Mindanao Energy Market (IMEM) that the Philippine Electricity Market Corp. (PEMC) applied for.
The amount is higher than the P24.26-M ERC had initially approved for IMEM, which aims to alleviate the power supply shortage in Mindanao.
The budget would be spent for pre-operating expenses, capital expenditures, and consultancy services.
In approving the amount, ERC essentially allowed PEMC to utilize “unused market fees.” Such fees, according to rules, must be given back to customers. These fees are collected from power generation firms, which trade in the wholesale electricity spot market (WESM) in Luzon and Visayas.
The ERC said the budget for IMEM to be sourced from unused market fees would be returned to WESM participants once IMEM starts to earn from commercial operations.
IMEM was established to address the power shortage in Mindanao. It will provide a venue for generators and other entities with excess or unutilized generation capacities to sell these capacities. It is envisioned to reflect the “true cost of power” so generation companies will be enticed to enter or expand in Mindanao.
The Department of Energy and PEMC have yet to determine when IMEM will actually take off. – Rappler.com
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