Power reserve market set to resume this month

MANILA, Philippines — The Energy Regulatory Commission (ERC) is looking to resume the commercial operations of the reserve market before the end of this month.

“We are hoping for that. The resumption is always tied to the billing cycle, which is the 26th of the month to the 25th of the following month,” ERC chairman and CEO Monalisa Dimalanta told The STAR.

Once the commission’s decision is finalized, Dimalanta said the trading of power reserves would be back in action on July 26.

The reserve market, integrated into the wholesale electricity spot market, aims to optimize schedules and prices for energy and reserve needs, promoting competition and affordability while ensuring grid security and reliability.

The ERC ordered the suspension of the billing and settlement at the reserve market in March, two months after its full commercialization, following significant price increases in reserve costs during the month compared to February.

Yet the full reopening of the reserve market remains far from over, with unresolved issues awaiting the commission’s attention.

“There are still several questions (about) the methodology that the commission needs to resolve. Plus, we are also conducting a public consultation on the offer floor and price cap for the reserve market,” Dimalanta said.

If there were no major issues with the price cap, then this would pave the way for the resumption of reserve market activities, she added.

In May, the ERC partially lifted the suspension on settlement amounts in the reserve market to allow power generators to recover a portion of the costs for trading transactions during the March billing month.

The decision to allow the settlement of 30 percent of the transaction amounts was said to have been made to ensure continuous operations of power generators providing reserves in the system.

“The ERC always needs to strike a balance in performing its mandate to ensure the reliability and security of the power system through the continuous operations of the generators and protecting the consuming public,” the agency earlier said.