The Independent Electricity Market Operator of the Philippines (IEMOP) assured the public that any unpaid fees at the Wholesale Electricity Spot Market (WESM) are not passed on to consumers.
IEMOP, which operates the WESM, the country’s electricity trading floor, stated these unpaid fees remain as receivables from power generators.
The operator’s statement came in response to a call from the Philippine Chamber of Commerce and Industry (PCCI) for firm action on payment defaults by WESM members.
“It is important to clarify however, that any amount unpaid by defaulting WESM customers are not passed on to consumers nor delinquencies subsidized by consumers. These remain as receivables of the generation companies and other sellers in the WESM,” IEMOP said in a statement.
IEMOP lauded the PCCI’s support for a well-functioning and accountable electricity market and echoed the view that all WESM participants must satisfy their financial obligations on time.
The agency said it has “religiously enforced” WESM rules, including the timely issuance of default and suspension notices and the imposition of financial penalties.
“These actions are guided by the WESM Rules and relevant Market Manuals, which empower IEMOP to impose appropriate sanctions, including suspension and deregistration, as warranted,” it said.
IEMOP said these measures protect the interests of compliant participants and preserve market discipline.
The operator also noted it has collected penalties for non-compliance by market participants consistent with the WESM Penalty Manual (Issue 3.0).
“These collected financial penalties have been flowed back to consumers through their respective distribution utilities, electric cooperatives, and electricity suppliers,” IEMOP said.
“We likewise support PCCI’s call for transparency in the billing practices of Retail Electricity Suppliers (RES). We remain steadfast in our commitment to uphold the principles of transparency, competition, and efficiency in the operation of the WESM—ensuring a fair and reliable marketplace for all,” IEMOP said.
