MANILA, Philippines - The transition committee created for the interim management of the Philippine Electricity Market Corp. (PEMC) will determine whether it is time to transfer the wholesale electricity spot market (WESM) to an independent market operator (IMO).
Energy Secretary Alfonso Cusi said the transfer of WESM to an IMO would be part of the roadmap being created by the transition panel.
The PEMC was incorporated in 2003 and was constituted as the autonomous group market operator to oversee market governance and perform the functions of the market operator in the WESM, which was created under the EPIRA.
But under EPIRA, the WESM must be transferred to an independent market operator or IMO one year after its establishment.
Last month, Cusi ordered the creation of a transition committee for the interim management of PEMC and WESM. It will also assess PEMC’s existing structures, systems, and resources and propose a way forward for the WESM.
The energy chief said the transition committee would foster transparency in the electricity spot market.
“We did that for transparency because we want to develop a policy so that we can gain the trust and confidence of investors. That’s important because that will redound to the benefit of consumers,” Cusi said.
The transition panel, chaired by Oscar Ala, a former member of the Energy Regulatory Board, was given seven months from Aug. 1 to complete the transition. Other transition committee members are Jose Mari Bigornia, Jose Layug Jr., Francis Saturnino Juan and Rauf Tan.
“In seven months, they have to finish their work and I’m waiting for their recommendation for their roadmap and implementation,” Cusi said.