Spot market in Mindanao may be moved, says executive


IMPLEMENTATION of the Wholesale Spot Electricity Market (WESM) in Mindanao on June this year might be moved depending on the capacity of the participating electric cooperatives and the finalization of the rules and regulations approved by the Energy Regulatory Commission (ERC), an official said.

During Wednesday’s Habi at Kape weekly forum at Abreeza Ayala Malls Wednesday, March 15, assistant secretary Romeo Montenegro, Mindanao Development Authority deputy executive director, said there are still factors to be considered most, especially on the part of the electric cooperatives, before the target implementation of the spot market on June.

Montenegro said for Mindanao to successfully transition its electrical contracts from bilateral regime to market-operated, electric cooperatives must upgrade their capacities in forecasting. He added estimation will not be allowed anymore as penalties will be imposed both for excess and short of forecasts declaration.

He also said the cooperatives should learn to scale up their financial capacities.

“This is not long-term bilateral contracts anymore. These are real-time spot purchase of electricity in the market where settlements are required the following day. Unlike bilateral contracts where it would sometimes take months for the payment to take place,” said Montenegro.

He added cooperatives should also improve technologically especially that with the establishment of the market, they are required to be connected electronically for them to see the behavior and performance of the supply and demand in the market fluctuations.

Aside from the readiness of the electric cooperatives, Montenegro also said rules and regulations are still for WESM in Mindanao is still being finalized and has yet to be submitted for approval by the ERC. Price determination mechanism is included in this deliberation as power sector prices should regularly be monitored by ERC as well.

“The energy family, led by the Department of Energy (DOE) is currently working double time to be able to address those conditions and prerequisites so that it can still move ahead with the timeline of June,” he said.

Registration for all players is still ongoing for the WESM simulation targeted within the month. The trial fun for WESM Mindanao will determine if the power sector here is ready for its target implementation this coming June 2017.


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