THE Energy Regulatory Commission (ERC) has directed all distribution utilities (DUs) and other entities to participate and comply with all the requirements in line with the launching of the Wholesale Electricity Spot Market (WESM) in Mindanao next year.
“We note that based on the results of the recent 19th WESM Mindanao Readiness Assessment (WMRA) Meetings conducted by the Department of Energy (DoE), there was a delay in the completion of WESM registration by the participants in Mindanao, despite the mandatory membership as provided for by the WESM Rules,” ERC Chairman and Chief Executive Officer Agnes Devanadera said in a statement on Friday.
The WMRA cited low participation in the trial operations program and the incidence of manual load dropping amid oversupply of generating capacity in the region because of the non-compliance of DUs with the IMDP, which was put in place prior to the WESM implementation in Mindanao.
The completion of the WESM registry for Mindanao trading participants and the active participation of such trading participants, particularly the DUs, are essential to the commercial operations date of the WESM in Mindanao, which are imperative in ensuring the market readiness with the spot market environment.
The ERC enjoins all DUs to comply with the WESM rules or the commission will be compelled to “impose the necessary fines and penalties on the DUs for failure to comply with the WESM directives,” Devanadera said.
The WESM in Mindanao grid was unveiled on June 26, 2017, pursuant to DoE’s Department Circular DC2017-05-009.
The circular intends to provide sufficient time for the market operator, system operator and market participants to prepare and familiarize themselves with WESM operations.
It also mandates the National Grid Corp. of the Philippines (NGCP) and participants to implement the IMDP.
Regular WMRA meetings were held in coordination with the Philippine Electricity Market Corp. as the market operator and NGCP as the system operator and other concerned government agencies to ensure preparedness prior to the commencement of WESM operations in the region.