The Association of Mindanao Rural Electric Cooperatives, Inc. (AMRECO) and the AMRECO Power Supply Aggregation Group Corporation (AMRECO PSAGCORP) have expressed their opposition to the upcoming implementation of Wholesale Electricity Spot Market (WESM) Mindanao.
Department of Energy (DOE) Undersecretary Felix William B. Fuentebella previously explained in a press conference that WESM works by providing a venue for efficient scheduling, dispatch, and settlement of energy withdrawal and injections in the Mindanao Grid.
In a press conference during the AMRECO Regular Membership Meeting in Royal Mandaya Hotel Davao City on Friday, AMRECO president Sergio C. Dagooc said its 27 member cooperatives will not participate if DOE will insist to rollout WESM on June 26, 2017.
“As long as there are still provisions on the department circular that they issue that is detrimental to the interest of the consumers, we continue to oppose it,” stressed Dagooc.
On the mandatory registration of electric cooperatives under WESM, the AMRECO president said they will contest that in a proper forum stressing that it is “unconstitutional” to force electric cooperatives to buy from the WESM when they prefer to purchase from their contracted power plants.
Dagooc questioned certain provisions of WESM such as the operating expenses of market operators which will be paid by all member consumers of the cooperatives.
He told reporters that WESM has set a price ceiling of P62/kwh. Meaning, those in the market could sell as much as P62/kwh instead of P5/kwh stated under bilateral contracts.
Another issue he raised was the clearing price in which the highest bid on the day will be set as the standard price for the rest of the electric cooperatives.
Engr. David Tauli, president of Mindanao Coalition of Power Consumers said the existence of WESM would only change the pricing mechanism of electric cooperatives.
“WESM will change bilateral contracts to its highest bid. P4.20/kwh generating average but if WESM is implemented it will become P6.00/kwh. Total effect is P15B per year will be added to the consumers,” he said.
However, in a previous statement from DOE Undersecretary Fuentebella, WESM provides a platform for a much faster way to trade power because there is a bidding every five minutes that allows for the buying and selling of electricity, which prioritizes the cheapest energy mix of renewable and non-renewable.
On the part of Nolie C. Namocatcat, president of Agusan del Norte Electric Cooperative, Inc., he will only agree on the implementation of WESM in Mindanao if and only certain provisions in the rules of WESM will be revised by adding section specifically addressing the issues and concerns in Mindanao.
“Duna’y capacity sa Mindanao na wa mabaligya. That’s uneconomical. And there are contracts with cooperatives which cannot be utilized. That’s uneconomical. Naa sad problema sa Mindanao ngadto sa power generator wala pa’y reserved requirement,” he pointed out.
Namocatcat urged DOE to address these issues through a Department of Energy Circular.
PEMC to PSAGCOPR
AMRECO also stressed if WESM would be implemented in Mindanao, it should be operated by Mindanaoans.
At present, as stated in Republic Act 9136, WESM is operated by a private, independent body called Philippine Electric Market Corporation (PEMC) headed by Melinda L. Ocampo.
The cooperative has formulated a proposal to transfer the operation of WESM in Mindanao from PEMC to PSAGCORP to be submitted to the Department of Energy.
