Question & AnswerQ&A (ERC Resolution No. 12)
Section 30 of Republic Act No. 9136, also known as the Electric Power Industry Reform Act of 2001 (EPIRA), empowers the ERC to authorize other entities to become eligible as members of the WESM.
The WESM commenced commercial operations on 26 June 2006.
The scheme was created to facilitate the participation of distribution utilities (DUs), especially small Electric Cooperatives (ECs), in the WESM who were otherwise unable to meet the technical and financial requirements for membership.
The Rules were promulgated to facilitate the participation of DUs, particularly small ECs, in the WESM by allowing them to join indirectly through wholesale aggregators.
The circular required DUs to be WESM members, either directly or indirectly, otherwise they would be disconnected from the grid.
It adopted amendments reducing the level of Prudential Requirements from sixty-three (63) days to thirty-five (35) days, easing financial constraints for small ECs.
Because technical and financial limitations that previously hindered DUs' participation in the WESM no longer existed, removing the necessity for the Wholesale Aggregator support.
Yes, the ERC will continue to evaluate market conditions and may reintroduce a supply aggregation scheme or authorize other entities if industry developments warrant such actions to ensure electricity supply reliability and cost efficiency.
The resolution took effect on the fifteenth (15th) day following its publication in a newspaper of general circulation in the Philippines.