The Energy Regulatory Commission (ERC) on Tuesday lifted a suspension on the billing and settlement of the price determination methodology (PDM) in the Wholesale Electricity Spot Market (WESM).
The move allows the full resumption of reserve trading in the WESM for contracted and merchant plants.
The ERC, in a July 26 resolution, said it determined that the grounds for the suspension no longer exist after the Philippine Electricity Market Corp. (PEMC) and Independent Electricity Market Operator of the Philippines (IEMOP) complied with the agency’s directives on the proposed amended PDM.
PDM is the mechanism used to determine prices and settlements in the WESM, as outlined in the market manual.
The ERC imposed the suspension on March 26, affecting all reserve market capacities except those covered by the ancillary services purchase agreement (ASPA) and included in commission rulings. The agency cited pending compliance issues as the reason for the suspension.
The ERC also extended an interim relief for the proposed PDM’s adoption and implementation, with additional conditions. It had granted initial interim relief in August 2023 to assess the outcome of the reserve market’s trial operations program.
It ordered IEMOP to recalculate reserve trading amounts for February and March and adjust the value for the remaining 70 percent of March’s billing. It also directed the National Grid Corp. of the Philippines (NGCP) to align its non-compliance submission timeline with IEMOP’s.
The ERC said it would issue a formal order with more details on the suspension’s lifting.
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