DOE revises rules on power dispatch

MANILA, Philippines - The Department of Energy (DOE) has issued a circular amending the rules governing the Wholesale Electricity Spot Market (WESM), the country’s trading floor for electricity, to allow power plants with “fast start capability” to run only when needed.

The circular has relaxed provisions of the WESM Manual on registration, suspension, de-registration criteria and procedures on generation units so that power plants with fast start capability will no longer be required to run based on their registered minimum load but they can continue to submit offers in the market.

But because they have fast start capability, they can supply power as soon as it is demanded.

The circular will enhance the operational efficiencies of oil-fired power plants by not requiring them to run continuously for 24 hours, Energy Secretary Carlos Jericho Petilla said.

With this, the capacity gap in the WESM will be reduced and allow power generators to avoid penalties when it is running below minimum power supply, provided that these plants can supply power as soon as it is demanded, Petilla said.

“In the interest of ensuring adequacy and reliability of the power supply, the DOE shall continue to assess the performance of the generation units and if warranted, will use the necessary policies and effect changes to the WESM rules, motu propio, as necessary,” Petilla said.