Department of Energy Alfonso Cusi (DOE) has extended the term of the transition panel to guide the transition of the wholesale electricity spot market (WESM) to its independent market operator (IMO)
The extension, which was set until June 30, was in order to assess the Philippine Electricity Market Corp. (PEMC)’s current structures, systems, and resources and come up with a new way forward for the WESM to meet the possible challenges.
“We have decided to extend the term of transition team up to June 30, 2018,” Cusi said. “They will just incorporate, organize the corporation. By June, they will give way to the new set of board.”
The panel was originally given seven months, beginning August 1, 2017, to complete the transition of the PEMC.
The panel is currently drafting the incorporation papers of the IMO company. This will be submitted to the Securities and Exchange Commission (SEC) within the month, PEM transition committee COO and member Francis Saturnino Juan said.
Upon approval by the SEC, PEMC and the IMO company will sign an operating agreement.
This will lead the relationship between the two companies and contain the duties and responsibilities of the IMO towards PEMC, DOE, Energy Regulatory Commission (ERC) and other stakeholders.
“We plan to finish operating agreement in time for March or April execution,” Juan said.
The new PEM board will be formed and begin their term after the June 20 membership meeting of the PEMC, and the IMO will begin the functions and assets to operate the market.
Earlier this week during the First Membership meeting of the PEMC, 81.3 percent of the total votes of 1, 837, 440 were in favor of the IMO Transition Plan.