THE ENERGY Regulatory Commission (ERC) has restored the operations of the Wholesale Electricity Spot Market (WESM) effective Friday, May 1, more than a month after the suspension that was promoted by spiking fuel prices.
WESM is an avenue where power is traded between producers and distributors to boost their supply.
“After a thorough review, the commission has concluded that resuming normal WESM operations is the most suitable course of action at this juncture. This will allow electricity prices to more accurately mirror current market conditions while maintaining consumer protection safeguards,” ERC chair and CEO Francis Saturnino Juan said in a statement.
He added: “We observed that although the temporary pricing mechanism was effective in addressing the emergency, prolonging its use could lead to unintended charges in market settlements.”
Suspending the electricity trading remains on the table “should the circumstances warrant the reimposition of the administered prices,” the commission said. (Lisbet K. Esmael © Philippine Daily Inquirer)
