DOE amends rules on wholesale power spot trades

MANILA, Philippines - The Department of Energy (DOE) has issued a circular amending rules governing the Wholesale Electricity Spot Market (WESM), the country’s trading floor for electricity.

The DOE, in particular, revised the confidential clause in the original WESM rules following a proposal by Aboitiz Power Corp., the power arm of the Aboitiz Group.

Aboitiz Power wanted data on uncollected spot sales to be made available to WESM participants.

“The proposal aims to extend the exception on confidential information so that the WESM net sellers will obtain the necessary information regarding their uncollected spot sales from the WESM,” the DOE said.

As such, the department now requires the disclosure of information on settlement amounts unpaid by the end of the month and the identity of the specific WESM member that failed to pay the settlement amounts.

The amendments also allow the disclosure of information to the Energy Regulatory Commission and the DOE and any other government authority having jurisdiction over a WESM member.

The problem of unpaid settlement amounts has been hounding power generators.

Last month, the Philippine Electricity Market Corp. (PEMC), the operator of the WESM, has ordered the disconnection of Albay Electric Cooperative Inc. (Aleco) due to non-payment of power sourced from generators through the WESM.

Aleco has since been reconnected to the main grid but the DOE is now working with stakeholders for a long-term solution.

The DOE said private power generation entities inevitably avail of the remedy of disconnection of some distribution utilities in order to minimize losses in the event of non-payment and to stop the further accumulation of debts.

Power generators have likewise obligations to their creditors, while the financial viability of the WESM must be ensured, the DOE added.