"After one year, we should have an independent market operator for the wholesale spot market," Perez said to clarify reports that the government is proposing to handle the first three years of operation of the spot market.
Perez explained that under EIRA, the wholesale electricity spot market (WESM) should be run by an independent body.
"The DOE will just constitute (the creation of WESM). It should be composed of industry participants to be managed by an independent market operator (IMO)," he said, adding that there are several international groups that have offered to run the WESM as IMO.
"We have been receiving a number of unsolicited proposals for the formation of the WESM. But there is nothing formal. It is still premature at this point (to identify the interested parties)," he said.
Perez admitted though that US-based Apex, a private sector-led IMO running an electricity spot market in California, had indicated keen interest to participate in the formation of the country’s WESM. "They came to DOE sometime ago," he said.
The energy chief said they have also received numerous queries from several international IMOs from United Kingdom, Ireland, New Zealand and United States.
The EIRA, which was passed last June, mandates the DOE to create a WESM within one year after the signing of the law.
The power bill states that the WESM shall be implemented by a market operator in accordance with the wholesale spot market rules. The said market operator shall be an autonomous group, to be constituted by DOE, with equitable representation from electric power industry participants, initially under the administrative supervision of the National Transmission Co. (Transeco).
The EIRA also requires the DOE to fully implement the wholesale electricity spot market by June 2004. Initially, at least 10 percent of the electricity generated in the country would be traded in the spot market and let market forces determine the price of power.