By Ehda M. Dagooc Updated March 10, 2009 12:00 AM
CEBU, Philippines – The Wholesale Electricity Spot Market (WESM) will soon obtain the much anticipated approval from the Department of Energy (DoE) to operate in the Visayas, said DoE undersecretary Melinda Ocampo.
Ocampo said WESM-Visayas will go into commercial operation by May or June this year after the implementation of the Visayas Supply Augmentation Program.
DoE, together with the WESM operator Philippine Electricity Market Corp. (PEMC), is still waiting for the approval of the Visayas Supply Augmentation Program from the Energy Regulatory Board (ERC).
She said the completion of all regulatory compliance will be done before May or June this year, immediately after that WESM-Visayas will be opened for commercial operation.
The opening of WESM-Visayas is one of the most awaited developments in Cebu, especially for the private sector. As it is expected to resolve the looming power shortage in the region, and dictate the true cost of electricity in the market.
The establishment of WESM is expected to create a more robust energy industry by encouraging competition and efficiency among industry players.
The Electric Power Industry Reform Act (EPIRA) of 2001 mandated the establishment of the electricity spot market to set the price of electricity thru market forces, free from the restrictions of regulation.
Transparency in market operations transactions ensure the reflection of the true cost of electricity and improve the delivery of power supply to the end-users.
If WESM will start its commercial operation here, it allows buyers and suppliers to trade electricity as a commodity will invite interested power facility investors to open plants, where it is needed, as the electricity spot market will show the real demand and supply of power.
In an interview with Cebu Chamber of Commerce and Industry (CCCI) head for power committee and past president Carlos Co, he said that the business sector is expecting WESM-Visayas to run its commercial operation this year, as it already had its dry-run for over a year now.
Its decision to implement the Visayas Supply Augmentation Program, Co said is a good indication that ultimately the market can participate in the spot market, once it is commercially opened.
On the other hand, PEMC earlier emphasized that the commercial operation of the WESM is expected to have minimal impact on the end-users in the Cebu-Negros-Panay grid, because 97 percent of the 1,065-mega-watt average peak demand is covered by bilateral contracts between generators and distribution utilities.
Last year, 16 business chambers from all over the Visayas, agreed to call the attention of President Gloria Macapagal-Arroyo’s government to give a go signal for the commercial operation of WESM in the Visayas.
The business sector in the region highlighted its concern on the looming power crisis and urged the DoE to take immediate action on the matter.
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