The Department of Energy (DOE) has laid down a policy that will guide the creation of an independent market operator (IMO) of the wholesale electricity market (WESM).
The circular, Adopting Policies for the Effective and Efficient Transition to the IMO for the WESM, will ensure the fair competition and the promotion of public interest
“This policy on IMO will ensure full public accountability to safeguard, foremost, our energy consumers,” DOE secretary Alfonso Cusi said.
He added that the WESM and IMO would be consistent with the EPIRA to assure quality, reliable, secure, affordable and reasonable prices and power supply through a transparent, free and competitive market.
The IMO policy includes the mandates of the DOE and the Energy Regulatory Commission (ERC) over the market operator, guiding principles, its composition, the board of at least five members, WESM’s new governing and governance structure and the conditions for transition.
In specifics, the issuance gives guidelines on the procedures to create the merit order dispatch instructions and determine the market-clearing price for each time period.
It will also direct the administration of the market, which includes the criteria for admission to and termination from the market that includes security or performance bond requirements, voting rights of participants with the rules and the formation of the wholesale electricity spot market governing body.
The policy will also give guidelines for the market operation in the system emergencies, including amending the rules.
The Philippine Electricity Market Corp. (PEMC) is set to begin the transition plan for the creation of the independent market operator that will take over WESM by the second quarter of the year.