THE Energy Regulatory Commission (ERC) and the Philippine Electricity Market Corp. (PEMC) will be setting up ground rules against market abuses and anti-competitive behavior among participants in the electricity spot market.
Last Wednesday, ERC and PEMC signed a memorandum of agreement (MOA) to “harmonize” the application of certain provisions of the Electric Power Industry Reform Act (Epira), with regard to the monitoring of trading activities in the Wholesale Electricity Spot Market (WESM).
“The MOA delineates the roles of PEMC and ERC in investigations and enforcement procedures for breaches and commission of anti-competitive behavior,” said ERC chairman Rodolfo Albano in a statement.
Albano said that with the MOA in place, market participants like independent power producers, are guaranteed that market abuse and anti-competitive behavior are anticipated and discouraged.
Under the MOA, the ERC has full jurisdiction over anti-competitive behavior while PEMC investigates breaches of the rules.
The agreement also details investigations and enforcement procedures for breaches and incidences of anti-competitive behavior.
Provisions for disputes between WESM members, the system and market operators are incorporated as well.
“Rest assured, the WESM will remain an independent and competitive electricity market. This MOA ensures that consumer interest is protected,” Albano said.
“PEMC and its Market Governance Committees will continue to be vigilant in enforcing the WESM Rules that govern the electricity market. In this way, we support the work of the Commission (ERC) by ensuring a fair, transparent and disciplined market,” said PEMC president Lasse Holopainen.
The commercial launch of WESM in the Visayas, originally set last Saturday, was indefinitely postponed to allow further time for participants to complete registration and test their market trading interface systems.
A WESM statement said that the PEMC board extended its live dispatch operation (LDO).
The LDO is the final phase of the trial operations program of WESM where its system is tested in a live environment before it is used in actual commercial operations.
The ERC is mandated under the Epira to enforce the rules and regulations of the electricity spot market.
PEMC on the other hand, was organized to operate and govern the WESM as well as promote competitiveness and efficiency among the market participants.
“The presence of WESM is encouraging investors to invest in the Philippine power sector. Operation of the market in the Visayas will ensure the efficient pricing of electricity as well as the security of long-term power supply,” Holopainen said earlier. (MMM)
