The Department of Energy said Friday the Wholesale Electricity Spot Market in Mindanao will start commercial operations on Jan. 26, 2023.
Energy Secretary Raphael Lotilla signed Department Circular No. DC 2022-12-0039 requiring Mindanao electric power industry participants and entities register as WESM members not later than Jan. 15, 2023.
The circular, dated Dec. 23 but posted on the agency’s website on Dec. 29, said the remaining requirements of unregistered participants, including Lanao del Sur Electric Cooperative and Maguindanao Electric Cooperative, should not impede the commercial operations of WESM Mindanao.
“The commercial operation of WESM Mindanao and the MVIP [Mindanao Visayas Interconnection Project] is expected to improve the reliability of electric power supply not only in the Mindanao grid, but also in the Luzon and Visayas grids,” the circular said.
It said the MVIP was expected to be completed by March 2023, and its commercial operation would necessitate the implementation of WESM Mindanao to allow the efficient transfer of electricity exchanges.
The circular requires the market operator to facilitate registration in the WESM and authorize the disconnection of WESM participants and entities mandated to register, but are unable to comply with the rules.
The circular spells out the responsibilities of the National Electrification Administration, Power Sector Assets and Liabilities Management Corp., Philippine Electricity Market Corp., Independent Electricity Market Operator of the Philippines and National Grid Corp. of the Philippines.
NEA will provide assistance to electric cooperatives in the completion of their registration in the WESM and coordinate with relevant agencies to fulfill compliance of the ECs with the financial and technical requirements relative to the WESM registration.
It will assist the ECs, particularly those unable to post the necessary prudential requirements, in securing supply contracts and a direct WESM member counterparty.
It will also continue to assist LASURECO and MAGELCO, particularly in facilitating arrangements for the timely payment of their obligations with PSALM and their other suppliers.
NEA will also formulate and implement action plans to address the viability problems of ECs to ensure the continuous supply of electricity to member consumers.
The circular says PSALM should continue to fully supply LASURECO and MAGELCO.
All energy withdrawals of LASURECO and MAGELCO should exclusively be allocated to the energy output of PSALM-owned plants within the Bangsamoro area such as Agus 1 and 2 hydropower plants and should be declared as bilateral contract quantity by and with PSALM, it said.
The circular said the IEMOP should ensure compliance of WESM Mindanao participants with the registration requirements and take action to address non-compliance.
The IEMOP should also ensure smooth transition and operation of the WESM Mindanao and ensure availability and applicability of all systems and procedures for the successful conduct of electricity trading in the Mindanao grid.
The PEMC will monitor and evaluate the implementation of the WESM Mindanao and recommend measures to address policy issues that may arise. It will also impose sanctions and penalties in accordance with the provisions of the circular.
NGCP will implement the necessary upgrading, correction or installation of equipment for the monitoring of various facilities’ compliance with real-time schedules and dispatch. It will also implement the necessary and appropriate technical and regulatory arrangement for the exclusive allocation of PSALM capacities in the Bangsamoro area to LASURECO and MAGELCO.