THE Energy Regulatory Commission (ERC) has lifted the suspension of reserve market settlement transactions, paving the way for the resumption of full trading at the Wholesale Electricity Spot Market (WESM).
The regulator had ordered a halt to trading in March after reserve power costs for the month surged pending the resolution of proposed changes to the WESM’s price determination methodology (PDM).
“[G]rounds for the suspension are no longer present, following the compliance of Philippine Electricity Market Corp. and Independent Electricity Market Operator of the Philippines (IEMOP) with the ERC’s directives for the evaluation of their application for the proposed amended PDM,” the ERC said.
The suspension applied to all reserve market capacities except those offered and dispatched pursuant to ancillary services purchase agreements covered by ERC rulings.
It was partially lifted in May with the ERC allowing the settlement of 30 percent of the amounts for payment to allow power generation companies to recover some of their costs.
The IEMOP, meanwhile, has been ordered to recalculate the reserve trading amounts for February and March billing periods and adjust the value for the remaining 70 percent for March.
System operator National Grid Corp. of the Philippines, was directed to harmonize the timeline of its submission of non-compliances to the IEMOP.
Further details regarding the lifting of the suspension will be provided in an official order, the ERC said.
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