WESM to be implemented in Cebu in 1st quarter next year

Philippine Electricity Market Corp. (PEMC) president Lassi Mattia A. Holopainen bared the wholesale electricity spot market (WESM) will hopefully be implemented in Cebu between January to March in 2007.

The WESM will facilitate the trading of wholesale electricity and encourage competition among power producers. It is said that with WESM in place, competition in the generation of electricity will be encouraged leading to a more efficient and reliable power sector.

Holopainen talked on the benefits derived from the WESM as the long-term objective is to help bring down electricity costs.

Initial operations of WESM in Luzon has started in late June of this year of which in the first month of operation witnessed an eight percent reduction of electricity price and one percent lower a month after, Holopainen disclosed.

Albeit prices are erratic and when power supply is lower and the demand is greater would translate to higher rates, the PEMC president said.

Some consumer groups however, said the WESM will not exactly help lower electricity rates of household consumers as only industrial and commercial consumers and distribution utilities will benefit from the initial operations as the minimum energy requirement to be able to directly buy power from WESM is 1MW. Residential consumers on the other hand, only have an average consumption of about 200-300 kWh.

Holopainen said that WESM provides transparency for power prices where industries and distribution utilities wanting to get cheaper electricity can buy that would result to savings on their part that could be used for employees' benefits. The savings could also be used to expand business operations that would eventually result in job opportunities for the people, he added.

For residential consumers to avail of the WESM, Holpainen suggested for them to form a homeowners association so they could reach the minimum energy requirement needed to buy from WESM.

Department of Energy (DOE-7) regional director Antonio Labios declared that power industries here are also waiting for the WESM's implementation here so they could start bidding their power rates to industries and distribution utilities.

Holopainen said the PEMC will soon open an office here this coming December. (PIA)