THE Unbiased Electrical energy Market Operator of the Philippines (IEMOP) and the Philippine Electrical energy Market Corp. (PEMC) are in search of the approval of the Power Regulatory Fee (ERC) for his or her proposed market price for 2025 to 2027.
IEMOP is the operator whereas PEMC is the governing physique of the Wholesale Electrical energy Spot Market (WESM), the electrical energy buying and selling flooring.
IEMOP and PEMC collectively filed the appliance to the ERC for provisional authority to impose a market price of P0.0087 per kilowatt-hour (kWh) to all era firms registered with the WESM.
The WESM sells electrical energy to firms whose long-term contracted energy provide is inadequate to satisfy buyer wants.
Of the entire proposed mounted market price cost, P0.0049 per kWh shall be allotted to IEMOP whereas P0.0038 per kWh is for PEMC.
“That is calculated primarily based on (a) the projected era metered portions for CY (calendar years) 2025 to 2027 for Luzon, Visayas, and Mindanao era firms and (b) the mixture projected budgetary necessities of IEMOP and PEMC for CY 2025-2027, utilizing the identical components for market transaction price fee beforehand authorized by the Honorable Fee,” in keeping with the appliance.
Within the utility, IEMOP and PEMC projected a P3.4 billion budgetary requirement for the 2025- 2027 interval. This covers personnel providers, upkeep and different working bills, and capital expenditure.
The candidates mentioned that the ERC approved them to gather market transaction charges for 2023 of P615.76 million, or an indicative fee of P0.00564 per kWh for 2023, lower than the P1.02 billion they sought.
“Given the substantial cuts and disallowances ordered within the current issuances of the Honorable Fee within the previous years’ market charges functions, candidates IEMOP and PEMC have each suffered and reported deficits as early as CY 2020,” they mentioned.
The events mentioned that with out adequate funds, they “will be unable to maintain their efficient and environment friendly operations of the WESM and faithfully fulfill their mandate.”
“On the present stage of market charges, the candidates might not even maintain regular operations of the WESM,” IEMOP and PEMC mentioned. — Sheldeen Pleasure Talavera