The Energy Regulatory Commission (ERC) is issuing an order partially lifting the suspension on settlement amounts in the Reserve Market of the Wholesale Electricity Spot Market (WESM).
In the Order issued for ERC Case No. 2023-002 RC, the commission approved the settlement of 30% of the sums for payment for trading transactions completed in the Reserve Market for the billing month of March 2024.
This decision was made in response to the suspension order issued on March 25, 2024, in an attempt to guarantee the continuous operation of power generators providing reserves in the system.
“The ERC always needs to strike a balance in performing its mandate to ensure the reliability and security of the power system through the continuous operations of the generators and protecting the consuming public,” said the commission.
In this circumstance, partial reimbursement of expenses for services performed would permit these generators to recoup a part of their running costs, allowing them to keep providing energy for the public.
Furthermore, the ERC used a simulation of amounts to be recovered as the basis for the partial lifting.
Based on the simulation, a total amount of Php 1,723,163,667.02 would be paid to the generators in the Reserve Market.
This sum is still susceptible to change once the National Grid Corporation of the Philippines submits its list of non-compliant generators.
In response to this, Independent Market Operator of the Philippines (IEMOP) Corporate Planning and Communications Manager Arjon Valencia said that the market operator would implement this order accordingly and would coordinate with the ERC and the Department of Energy (DOE) for the immediate resumption of Reserve Market commercial operations.
