THE Energy Regulatory Commission (ERC) told power distribution utilities (DUs) and other participants of the Wholesale Electricity Spot Market (WESM) in Mindanao to comply with the requirements after noting a delay in the completion of their registration.
ERC Chairperson and Chief Executive Officer Agnes VST Devanadera said that based on the results of the WESM Mindanao readiness assessment meetings, there was a delay in the full registration despite the mandatory membership by Mindanao’s trading participants.
“The ERC enjoins full compliance with the WESM Rules to avoid recurrence of Manual Load Dropping (MLD). Otherwise, the Commission shall be constrained to impose the necessary fines and penalties on the DUs for failure to comply with the WESM directives,” she said in a statement on Friday.
She also directed the distribution utilities in Mindanao to comply with all the WESM prerequisites, and to strictly follow the interim Mindanao dispatch protocol (IMDP).
The readiness assessment meetings, which are led by the Department of Energy (DoE), also noted the low turnout of participation in the trial operations program and incidents of manual load dropping despite over supply of generating capacity in the region resulting from the DUs’ non-compliance with the IMDP.
The ERC said the completion of the WESM registry for Mindanao’s trading participants and their active participation, particularly the DUs, are essential to the forthcoming commercial operations date of electricity trading in Mindanao. The commission said the exercises are a must in ensuring that the participants are ready for the spot market environment.
WESM in the Mindanao grid was launched on June 26, 2017 pursuant to the DoE’s Department Circular No. DC2017-05-009 dated May 4, 2017. The circular aimed to provide sufficient time for the market operator, system operator, and WESM participants to prepare and familiarize themselves with trading operations.
Before the target declaration of WESM’s commercial operations date, the DoE circular also requires the National Grid Corporation of the Philippines (NGCP) and the WESM participants to implement the interim Mindanao dispatch protocol.
The DoE holds regular WESM Mindanao readiness assessment meetings in coordination with the Philippine Electricity Market Corp. (PEMC) and the market operator, and the NGCP system operator and other concerned agencies to ensure market preparedness.
Earlier this month, the Independent Electricity Market Operator of the Philippines (IEMOP) said up to 94% of the expected participants in the Mindanao WESM in have submitted their applications for registration.
At present, 90 out of 106 expected facilities have yet to complete their requirements for participation in the spot market, according to IEMOP, the independent market operator and provider of market services and management.
Upon the launch of WESM Mindanao, economic scheduling of power plants will be implemented to meet the demand requirements for any given interval. WESM will also provide an alternative venue for generators and customers to buy or sell electricity, which is expected to attract more investment to the region.
No date was given on the launch of WESM Mindanao.
The market operator said to date, the electricity market has a total of 274 registered participants in Luzon and Visayas. These are composed of 126 generation companies, 17 distribution utilities, 71 electric cooperatives, 56 directly connected customers, and four wholesale aggregators.
Established in September 2018, IEMOP has pledged to ensure the readiness of the Mindanao participants before the market’s “go-live” implementation.
After the transition into the independent market operator, PEMC retained its role as the governing body of the WESM. IEMOP said the governance body has strengthened the culture of compliance among market participants and secured a level playing field for WESM members, including those in Mindanao. — Victor V. Saulon
