DOE holds PEMC audit
The DOE has issued an order to create an independent committee to review and audit the financial, operational and systems records of PEMC.
MANILA, Philippines - The Department of Energy (DOE) is conducting an overall independent audit on the Philippine Electricity Market Corp. (PEMC), operator of the electricity spot market, to ensure competitive power prices and safeguard consumers.
The DOE has issued an order to create an independent committee to review and audit the financial, operational and systems records of PEMC.
This follows the thrust of President Duterte to ensure the protection of the public from surging power prices.
PEMC operates the Wholesale Electricity Spot Market (WESM), which was created under the Electric Power Industry Reform Act (EPIRA) of 2001.
Under the DOE order, the independent committee is expected to complete the full review and audit on Feb. 28, 2017. However, the committee can request an extension if the DOE secretary allows.
The independent committee will be chaired by DOE Undersecretary Jesus
Cristino Posadas while Undersecretary Felix William Fuentebella will sit as vice chairman.
Funding for the audit will be sourced from the DOE’s available funds.
Earlier this year, the Energy Regulatory Commission (ERC) launched a separate review on PEMC, tapping Reyes Tacandong & Co. to conduct the audit and check whether the fees imposed by the market operator have been reasonable.
The audit is intended to address concerns of certain sectors, and will impact PEMC’s budget proposal. Results will also determine whether PEMC should transition to an independent market operator.
PEMC, which has been operating the market since 2006, is a 15-man body led by the Energy Secretary and composed of representatives from each sector of the electric power industry as well as independent members.
But under EPIRA, the WESM must be transferred to an independent entity or IMO one year after its establishment.
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