The Energy Department is studying the proposal of the Philippine Stock Exchange to operate the country’s electricity spot market, a top official said over the weekend.
“We are exploring all possible set up that will be good for the industry and the consumers. It’s worth studying, we are studying it,” Energy Secretary Alfonso Cusi said.
PSE wants to diversify its portfolio and discussed with the Energy Department its plan to operate the Wholesale Electricity Spot Market, the country’s trading floor of electricity.
PSE is a non-stock, non-profit entity aimed at creating a fair, efficient and effective market for the selling of stocks, warrants, bonds and other securities.
The Philippine Electricity Market Corp. presently operates WESM, which started operating in 2006. WESM was established to provide for a competitive, efficient and reliable market for electricity.
The Electric Power Industry Reform Act of 2001 mandated the creation of WESM which shall be governed by the PEMC board.
WESM is operational in Luzon and the Visayas and is now under trial operations in Mindanao.
“At least, give it to us so we can study the options…These are just possibilities, studies and that is good for the industry… Will it do good? If it will, why not?” Cusi said.
PSE also wants to operate the WESM to insulate it from political meddling and ensure its independence.
The Energy Department created a transition committee for the interim management of PEMC in August and gave it seven months to come out with recommendations.
“Why did we do that? We did that for transparency because we want to develop a policy so that we can gain the trust and confidence of investors…to the benefit of consumers,” Cusi said.
He said the transition committee needed to come out with recommendations and issue the roadmap.
Under the department order issued by Cusi, the transition committee would be chaired by lawyer Oscar Ala who shall exercise the functions of the PEMC president until one is appointed by PEMC board.
The transition committee members also include Jose Mari Bigornia, National Renewable Energy Board chairman Jose Layug Jr., former Energy Regulatory Commission spokesman Francis Saturnino Juan and former ERC commissioner Rauf Tan.
PEMC is now governed by a new board composed of Cusi as chairman with Ronald Dylan Concepcion, Victor Emmanuel Santos, Emmanuel Rubio, Neeraj Bhat, Deon James, Rolando Cagampan, Octavius Mendoza, Allan Laniba, Noel Aboboto, Jesus Arranza and Peter Wallace as board members.
The transition committee is tasked to assess PEMC’s existing structures, systems and resources and propose a way forward for the WESM to meet the challenges ahead.