Philippine Electricity Market Corp. is not too keen on the prospect of the Philippine Stock Exchange operating the country’s electricity spot market.
PEMC president Oscar Ala, who also sits as the head of the transition committee, said the Wholesale Electricity Spot Market, the country’s trading floor of electricity, was very complex compared with other commodity exchanges.
“First of all, compared to other commodities, (electricity’s) very complex. You can’t store it, although there are exemptions like hydro storage or battery energy storage,” Ala said.
Ala said the WESM would also need a system operator, which in this case is the PEMC.
Ala also said regulating the electricity market under the Electric Power Industry Reform Act of 2091 was complicated.
Energy Secretary Alfonso Cusi is studying the proposal of the PSE to operate the country’s electricity spot market.
“We are exploring all possible set-up that will be good for the industry and the consumers. It’s worth studying, we are studying it,” Cusi said.
The PSE wants to diversify its portfolio and has engaged the department in talks to operate the Wholesale Electricity Spot Market, the country’s trading floor of electricity.
The PSE is a non-stock, non-profit entity aimed at creating a fair, efficient and effective market for the selling of stocks, warrants, bonds and other securities.
PEMC presently operates the WESM, which started operating in 2006. The WESM was established to provide for a competitive, efficient, and reliable market for electricity.
The Epira mandated the creation of the WESM, is to be governed by the PEMC board. The WESM is operational in Luzon and Visayas and under trial operations in Mindanao.
“At least, give it to us so we can study the options… This are just possibilities, studies and that is good for the industry… Will it do good? If it will, why not?” Cusi said.
The PSE wants to operate the WESM to insulate it from political meddling and ensure its independence.
The Energy Department, meanwhile, created a transition committee for the interim management of the PEMC in Augus. It has given the body seven months to come out with its recommendations.
“Why did we do that? We did that for transparency because we want to develop a policy so that we can gain the trust and confidence of investors… to the benefit of consumers,” Cusi said.
