Noceco general manager Jonas Discaya said in an advisory on Wednesday the lower generation charge could be attributed to the reduction in the price of power from the WESM
That was based on the P1.77-billion refund order of the ERC arising from miscalculations on the NSS levied to WESM
trading participants that include the generation companies and distribution utilities.
In 2017, PSE President Ramon Monzon said that, 'our long-term vision, our dream is that we will operate other exchanges,' including the WESM
. 'We started talks with the DOE if we could also operate that electricity exchange and basically, of course, the question they ask is, what do we know about electricity?
The generation charge decrease is primarily due to lower charges from the Wholesale Electricity Spot Market (WESM
According to the DOE, the IMO was required to have at least two years experience in running a market similar to WESM
, that's why people under IEMOP are from PEMC.
Previously, the Philippine Electric Market Corporation (PEMC), through its PEM Board - composed of representatives from government, generation companies, transmission utilities, and distribution utilities - conducted both the operations and governance functions of WESM
Aboitiz said the issues raised against WESM
, like high prices, only reflected the basic law of supply and demand.
Considered trading participants are the generation companies (GenCos) that have been offering their capacities in the WESM
; as well as the directly registered distribution utilities and electric cooperatives that have been purchasing part of their supply from the spot market.
charges declined by P6.2080 per kWh due to improved supply conditions in the Luzon grid.
The share of WESM
in Meralco's supply needs went up to 11 percent.
The slight generation charge increase is primarily due to higher charges from the Wholesale Electricity Spot Market (WESM
), but was mostly offset by the lower charges of Independent Power Producers (IPPs) and stable charges of Power Supply Agreements (PSAs).
While PEMC and the IMO will be independent from the government, the DOE will maintain oversight of the WESM