Question & AnswerQ&A (DOE Department Circular No. DC2014-12-0022)
Section 37 of RA 9136 mandates the DOE to ensure the reliability, quality, and security of electric power supply; encourage power sector investments and development of indigenous and renewable energy; and promote energy development incentives to ensure adequate power capacity including reserve requirements.
Section 30 mandates the DOE to establish the WESM and promulgate its rules upon endorsement by electric power industry participants.
The DOE promulgated the WESM Rules on 28 June 2002 through Department Circular No. DC2002-06-003.
It authorizes the DOE to declare the commencement of the spot market for ancillary services when deemed applicable and reasonably feasible.
The originally declared Commercial Launch Date was 26 March 2014 as stated in Department Circular No. DC2013-12-0027.
PEMC reported that the market could not commercially operate pending approval of the Pricing and Cost Recovery Mechanism and completion of registration of ancillary service providers.
It provides better monitoring of available generation capacity in energy and reserves and prepares participants for full commercial operation of the WESM Reserve Market.
The protocol was jointly formulated by PEMC and the National Grid Corporation of the Philippines (NGCP) in consultation with Ancillary Service Providers under ASPA contracts.
This circular takes effect fifteen (15) days after publication in two newspapers of general circulation and must be published on the market information website.
The implementation of the protocol shall cease immediately upon the commercial operation of the WESM Reserve Market or upon DOE declaration of its cessation.