ERC sets PDM for hearing
The Energy Regulatory Commission (ERC) held on January 24, 2006 its first public hearing on the application of the Department of Energy (DoE) for the approval of its Price Determination Methodology (PDM) that will be used by the Philippine Wholesale Electricity Spot Market (WESM). The application was submitted through the Philippine Electricity Market Corporation – Market Operator (PEMC-MO).
The expository hearing on this application was held on January 31, 2006 at the ERC Hearing Room, 15th Floor, Pacific Center Bldg., San Miguel Ave., Ortigas Center, Pasig City. Marathon hearings will follow on February 14-17, 2006.
The PDM sets the mechanism in determining the market clearing price of electricity
for each time period, between sellers and purchasers of electricity not covered
by bilateral contracts. The pricing scheme is part of the procedures laid down
under the WESM Rules. The WESM Rules were defined by the DoE jointly with the
industry participants as mandated under Section 30 of the Electric Power Industry
Reform Act (EPIRA).
Prior proceedings included the conduct of a public consultation where the ERC
issued an Order dated March 15, 2005, approving in concept several elements
of the PDM that was submitted by the DoE. The ERC also provided guidance for
the further development of some elements of the submitted PDM; sought additional
information and explanation for some elements of the methodology; and designated
certain elements of the DoE’s proposed methodology for future, separate
and independent filing with the ERC.
“The ERC will make sure that the PDM is consistent with the WESM rules and conforms to sound economic principles that will promote a level playing field conducive to fair competition. Moreover, the ERC will exert its best effort to ensure that no market abuse of electricity consumers will ever take place,” ERC Chairman Rodolfo B. Albano, Jr. said.
“The
ERC hopes that the stakeholders of the electric power industry will take advantage
of the hearings to ventilate their concerns and help in the promulgation of
a fair and just Price Determination Methodology,” the chief regulator
concluded.
February 8, 2006