Reserve market likely to reopen in July, says ERC
By Alena Mae S. Flores – June 24, 2024, 7:35 pm
from manilastandard.net
ERC Chairperson Monalisa Dimalanta
The Energy Regulatory Commission (ERC) plans to resume the commercial operations of the reserve market in July 2024 as electricity prices are expected to soften amid cooler temperatures during the rainy season.
“It’s in the agenda of the commission this month. So, most likely by next month or sooner we can already resume the commercial operations,” ERC chairperson Monalisa Dimalanta said.
The reserve market, now integrated into the Wholesale Electricity Spot Market (WESM), the trading floor of electricity, was launched to optimize schedules and prices for energy and reserve requirements, fostering competition and affordability while ensuring grid security and reliability.
Dimalanta said the hydro power plants are expected to be reactivated in September which could impact demand and reduce electricity rates at the WESM.
“So, hopefully we will have some breathing space for the rates, unlike what happened during the summer months,” she said.
Dimalanta said that with the resumption of the operations of the reserve market, the generators would also be paid.
“That’s not a given—the whole remaining amount will be paid. So, that’s part of what we need to deliberate,” Dimalanta said.
The ERC previously ordered the partial lifting of the suspension on settlement amounts in the reserve market to allow power generators to partially recover costs for trading transactions for the March billing month amounting to P1.7 billion, representing 30 percent of the affected transactions. The remaining 70 percent remain unpaid.
The decision was made to ensure the continuous operations of power generators providing reserves in the system following the suspension order issued on March 26, 2024.
The ERC decided to suspend the billing and settlement at the reserve market after WESM operator Independent Electricity Market Operator of the Philippines reported significant price increases in reserve costs for March 2024 compared to February 2024.
This would impact the total cost of electricity charged to the public.
