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HomeFront PageIEMOP seeks Growth through Inclusivity with WESM in Mindanao

IEMOP seeks Growth through Inclusivity with WESM in Mindanao

Tentative Mindanao WESM Launch December 2019

 

The independent operator of the Philippines’ Wholesale Electricity Spot Market is confident Mindanao residents from generation down to the supply to end-users will soon be reaping its benefits as one WESM.

 

“The power of choice will soon be in the hands of even of the marginalized sectors in the entire country. WESM will grow and so will the number of those benefitting from it,” said Atty. Francis Saturnino P. Juan, President and Chief Executive Officer of the Independent Electricity Market Operator of the Philippines Inc. (IEMOP).

 

IEMOP held its first ever Market Participants Update (MPU) for Mindanao in Cagayan de Oro City last April 11 to apprise participants on various market developments, tackle issues and concerns with respect to operations, and provide updates on WESM Mindanao implementation.

 

The Last Frontier

 

“Mindanao is the last frontier, with market participants and electricity users yet to reap the benefits of the competitive and robust market that IEMOP operates, the electricity spot market which has long served the requirements of the Luzon and Visayas participants and consumers,” Juan noted. 

 

“Hence, our theme, Growth through Inclusivity. The operationalization of WESM in Mindanao is no longer far in the horizon and with that follows retail competition,” he added.

IEMOP is a non-stock, non-profit corporation, led by a board of directors comprised entirely of independents, “who do not have any interest or connection to the WESM participants” which took over the operation of the WESM effective 26 September, 2018 vice the Philippine Electricity Market Corporation (PEMC).

 IEMOP now operates the wholesale electricity sport market (WESM) managing the registration of market participants, receipt of generation offers, setting market prices and dispatching schedules of the generation plants, billing, settlement and collections, while the PEMC remains as the WESM governing body to monitor market participants’ compliance of market rules, in compliance with the policy and regulatory oversight of the Department of Energy (DOE) and the Energy Regulatory Commission (ERC).

 

Conditions ripe for Mindanao WESM

 

The improved power situation and availability of supply excess make it viable for Mindanao’s eventual transition from purely bilateral to market operated regime, says an official of the Mindanao Development Authority (MinDA).  

 

Assistant Secretary Romeo Montenegro, MinDA deputy executive director, said in a statement that conditions are ripe for the establishment of the Mindanao WESM which is currently awaiting regulatory approval.

 

“Mindanao has already transitioned into supply excess regime, with an energy portfolio of diversified energy mix,” according to Montenegro, who also heads the Mindanao Power Monitoring Committee (MPMC) Technical Working Group.

 

“It’s time to bring the competition in so that load off-takers, especially electric cooperatives, can enjoy the flexibility of sourcing out capacity through the market, rather than being completely locked-in to long term bilateral contracts.”

 

Dialogue tradition to continue

 

Meantime, Juan said IEMOP continues PEMC’s tradition of conducting regular dialogues with the market participants not just to inform of market developments or report on WESM operations and market performance, but also to create a discourse with Mindanao WESM stakeholders. 

 

“We look forward to these gatherings for us to learn from you, to give us a sense of what you want us to do to improve how we serve you. As WESM operator we want to enhance your customer experience when interacting with the market.” 

 

Juan said IEMOP looks forward to forging a shared responsibility and commitment to identify market issues to be addressed through policy recommendations and potential solutions that would growth and improve the WESM and market outcomes.

 

“Our exchanges form part of our efforts to lay down the foundation for a strong WESM operator geared towards improving market operations and providing better service,” he stressed.

 

Ways forward

 

Juan said the MPU and similar events are planned for 2019 ensure that WESM participants get more value out of their market membership.

 

“As operator of your electricity market, IEMOP will be your reliable service provider, ever ready to meet your needs and exceed your expectations,” Juan said.

 

IEMOP’s timeline for the Mindanao launch of the WESM is tied to the launch of the New Market Management System (NMMS) in Luzon and the Visayas. This is the IT system that will be used to operate the WESM with enhanced design, which allows for 5-minute trading intervals.

 

“We are hopeful all the critical activities for us to be able to operate under the enhanced WESM design, will already happen by June. With allowances for some contingencies, we are looking at September as a possible target date for the launch of the NMMS, or the implementation of the enhanced WESM design,” Juan explained during the open forum portion of the MPU.

 

“The results of the assessment being undertaken now by a third party consultant, and the decision and discretion of PEMC’s recommendation to DOE, will determine when the NMMS launch will happen, and/or whether WESM Mindanao will be launched simultaneous with the launch of NMMS for Luzon and Visayas.”

 

“However, should the NMMS launch for Luzon and Visayas happen ahead of the WESM Mindanao launch, providing for some few months delay, we’re looking at December as the possible date for the commercial launch of WESM in Mindanao, still within 2019,” Juan noted. (RMB)

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