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Friday, August 25, 2006
Visayas power market to wait for more supply
While the open access electricity market is already in commercial operations in Luzon, the same system is still on trial in the Visayas.
Energy Secretary Lotilla said the schedule for the commercial operation in Visayas of the Wholesale Electricity Spot Market (WESM) is still unknown.
In an interview, Lotilla said the WESM’s commercial operation in the Visayas depends on availability of additional supply.
If there is no additional supply, the WESM setup will only “spike” prices of electricity, he said.
“WESM allows for greater transparency…opportunity for investment,” he said in a presentation during the Sun.Star Economic Forum at the Waterfront Cebu City Hotel and Casino.
“But we will have (a) schedule (for WESM) when supply in Visayas would be more stable…because it there is shortage, it will send the signal that prices are up,” he said.
WESM provides a system similar to a market, where electricity will be offered for sale by power producers in the same way vendors sell ordinary goods. Qualified electric cooperatives and distribution utilities, like the Visayan Electric Co. (Veco), will be able to pick which among the “vendors” have the cheapest electricity.
The WESM Visayas trial operations (TOP) began in October last year.
Lotilla reported that registered participants to the TOP include Salcon Power Corp., National Transmission Corp., Philippine National Oil Co. Energy Development Corp., Vicsal of Metro Gaisano, Veco, Philpost, the Central Negros Electric Cooperative and Negros Occidental Electric Cooperative.
Lotilla said seven power generation companies and 28 distribution utilities are expected to participate in the WESM Visayas.
In his presentation, Lotilla said WESM will “lead to greater efficiencies, transparency (due to true cost pricing) and accessibility of information and generation efficiency due to competition.”
Since information on trading of electricity will be accessible online, he said consumers can monitor and respond to market activities.
He said would also allow those planning to put up future power plants to use WESM or market prices as benchmark. (LAP
For Bisaya stories from Cebu. Click here. (August 25, 2006 issue)
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