Republic of the Philippines


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ERC Directs Mindanao DUs’ to Comply with All WESM Requirements

The Energy Regulatory Commission (ERC) directed all Distribution Utilities (DUs) and other Wholesale Electricity Spot Market (WESM) participants in Mindanao to participate and comply with all WESM requirements to ensure the overall readiness of the systems and procedures towards the shift to a new system and environment.

"We note that based on the results of the recent 19th WESM Mindanao Readiness Assessment (WMRA) Meetings conducted by the Department of Energy (DOE), there was a delay in the completion of WESM registration by the participants in Mindanao, despite the mandatory membership as provided for by the WESM Rules.  Therefore, the Commission hereby enjoins the DUs in Mindanao to comply with all the WESM prerequisites, and to strictly follow the Interim Mindanao Dispatch Protocol (IMDP),” ERC Chairperson and CEO Agnes VST Devanadera stated.  

The WMRA further noted the low turnout of participation in the Trial Operations Program and the incidence of manual load dropping (MLD) despite over supply of generating capacity in the region resulting from the DUs’ non-compliance to the IMDP.

The completion of the WESM registry for Mindanao Trading Participants and the active participation of such trading participants, particularly the DUs, are essential to the forthcoming Commercial Operations Date (COD) of the WESM in Mindanao.  The aforesaid exercises are imperative in ensuring the market preparedness with the spot market environment.  

"The ERC enjoins full compliance with the WESM Rules to avoid recurrence of Manual Load Dropping (MLD).  Otherwise, the Commission shall be constrained to impose the necessary fines and penalties on the DUs for failure to comply with the WESM directives," said Chairperson Devanadera.
The WESM in the Mindanao Grid was launched effective 26 June 2017 pursuant to the Department of Energy’s (DOE) Department Circular No. DC2017-05-009 dated 4 May 2017.  The said DOE Circular aimed to provide sufficient time for the Market Operator (MO), System Operator (SO), and WESM Participants to prepare and familiarize themselves with WESM operations.  Prior to the declaration of the Commercial Operations Date (COD) of the WESM in Mindanao, the subject DOE Circular likewise mandates the National Grid Corporation of the Philippines (NGCP) and the WESM participants to implement the Interim Mindanao Dispatch Protocol.  The DOE holds regular WESM Mindanao Readiness Assessment (WMRA) meetings in coordination with PEMC/Market Operator (MO) and the NGCP System Operator (SO) and other concerned agencies to ensure market preparedness prior to COD of WESM in Mindanao.


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