In a move to strengthen the market participant compliance to the Wholesale Electricity Spot Market (WESM) Rules, the Philippine Electricity Market Corporation (PEMC), which governs the power bourse, is now gearing up for the constitution of a new WESM Governance Committee (WGC).
“Market evolution reflects growth and development. The establishment of a new WGC is a testament to the WESM’s unhampered progress even amidst this pandemic,” said PEMC President Oscar Ala.
Primarily tasked to monitor compliance and oversee the investigation of violations made against the WESM Rules and Market Manuals by WESM participants, the System Operator, and the Market Operator, the establishment of the Compliance Committee (CC) was approved on 22 October 2020 through Department of Energy (DOE) Circular 2020-10-0021.
“The Compliance Committee or the CC takes over from the Market Surveillance Committee’s or MSC’s current task of overseeing the compliance monitoring and investigation by the Enforcement and Compliance Office. Pending the creation of the CC and the appointment of its members, however, the MSC shall continue to perform the responsibilities of monitoring compliance and overseeing investigations,” shared Ala.
PEMC will release a call for nominations for CC membership primarily through its corporate website by February 2021.
The PEM Board of Directors will then choose from the list of nominations submitted by a selection committee.
Appointed members of the team should be independent of the electric power industry with skills and expertise appropriate for the tasks at hand, taking into consideration the nature of the obligations and functions of the new committee.
WGC Members typically have a three (3)-year tenure with a possibility of renewal of up to two (2) terms.
“To ensure that the market is running efficiently and in the spirit of EPIRA’s vision, the PEM Board continuously studies the effectivity of the separation of the governance and the market operations functions and looking at ways to improve the administration of the WESM,” said PEM Board Chairman Noel Aboboto.
In addition to the CC, there are currently five (5) existing WGCs with specific responsibilities that ensure the efficient operations of the WESM: Dispute Resolution Administrator (DRA), MSC, PEM Audit Committee (PAC), Rules Change Committee (RCC), and Technical Committee (TC).
“With the creation of the CC, a more rigorous compliance monitoring shall be enforced among all WESM players,” stressed Aboboto.
