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By Euan Paulo C. Añonuevo Reporter
THE operator of the country’s
electricity spot market is contesting regulators’ decision to
clear state-run Power Sector Assets and Liabilities Management Corp.
(Psalm) of price rigging charges.
Rodolfo B. Albano Jr., Energy
Regulatory Commission (ERC) chairman, said the agency is set to
study the petition lodged by Philippine Electric Market Corp. (PEMC),
which operates the Wholesale Electricity Spot Market (WESM).
“We will most likely take it up
again by next month, because of the holiday season. But we have
already made some settlement about WESM claims. PEMC has I think
settled it with Meralco and this settlement might be plowed back to
consumers,” he said.
The ERC earlier cleared Psalm,
which trades in behalf of state-owned National Power Corp.’s (Napocor)
contracted independent power producers in the spot market, of
allegations of price manipulation during the third and fourth month
of WESM’s operation.
The decision ran counter to
PEMC’s earlier findings, which compelled it to lower prices on the
questioned months to minimize price increases.
“We have already said that the
PEMC has not given us a complete evidence to show that Psalm has
manipulated. However, this is subject to a study again and we are
conducting a thorough investigation on the matter because of the
motion for reconsideration filed by the PEMC Board,” Albano said.
The regulator’s decision
overturning the market operator’s findings is expected to result
in a hefty adjustment of P6.23 for every kilowatt hour in wholesale
prices at the WESM, a burden which will be passed on to consumers.
Customers of Manila Electric Co., which was then sourcing half of
its supply from the spot market, would carry a P2.80 for every
kilowatt-hour increase on the average because of this.
The Electric Power Industry
Reform Act of 2001 (Epira) created the WESM as a venue where
gene-rating plants can trade a portion of their output. This is
hoped to bring down electri-city costs, which are among the highest
in East Asia.
Under WESM rules, PEMC is
authorized “to penalize erring members” and similarly “adopt
mitiga-ting and corrective measures to ensure that swift and
adequate relief may be undertaken” especially if consumer
interests are at stake.
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