15-man board to manage electricity spot mart

The Department of Energy (DOE) will select soon the composition of the 15-man board of the Philippine Electricity Market Services Inc. (PEMSI) that will have the power and function to manage the country’s Wholesale Electricity Spot Market (WESM).

Energy Secretary Vincent S. Perez said Friday that PEMSI was incorporated last Nov. 19 this year and will hold its first board meeting within this month or by January 2004.

He said the DOE will also award soon the consulting and market management system (MMS) within the next 10 days.

In February this year, the DOE awarded the demonstration market operation of WESM to OnLine Systems Limited (OSL).

The OSL provides for the software, hardware and consulting services for WESM’s demonstration market.

The demo market is expected to run until the final WESM is put into place. The full WESM, Perez said, is targeted to commence in the third quarter of next year.

"The demo market is expected to result in clear and understood rules for the WESM and at the same time prepare and educate all the industry participants for the operations of the final WESM," Perez said.

The list of companies that have expressed interest for the MMS project include: ALSTOM, G.E. International Inc., ABB Inc., Union Fenosa Solutions, Logica, Siemens, Questronix Corp., China State Construction Engineering Corp., Ayala Systems Technology Inc., ePLDT Inc., Mitsubishi Corp. and BAP Inc.

National Transmission Corp. (Transco) president Alan T. Ortiz said they expect the Asian Development Bank to approve before the end of the year the WESM consultancy management services.

For the consultancy services, the DOE has shortlisted at least five firms. These are: Australian Power and Water/Transgrid, Marketplace Co. Ltd., On-Line Systems/Wise Technology, KEMA Consulting and EFRI.

Based on DOE’s timetable, trial introduction of WESM is expected to start in Luzon and the Visayas by fourth quarter this year.