The Independent Electricity Market Operator of the Philippines (IEMOP) and the Philippine Electricity Market Corp. (PEMC) are seeking Energy Regulatory Commission (ERC) approval for their proposed 2025 to 2027 market fee.
IEMOP is the operator while PEMC is the governing body of the Wholesale Electricity Spot Market (WESM), the place to sell electricity.
IEMOP and PEMC jointly filed a petition with the ERC for interim authority to charge a market fee of P0.0087 per kilowatt-hour (kWh) to all generating companies registered with WESM.
WESM sells to companies their long-term contract electricity that is insufficient to meet customer needs.
Of the total proposed market fixed penalty, P0.0049 per kWh will be allocated to IEMOP while P0.0038 per kWh will be allocated to PEMC.
“This calculation is based on (a) the amount of meters produced for CY (calendar years) 2025 to 2027 for the generating companies in Luzon, Visayas, and Mindanao and (b) the total proposed budget requirements of IEMOP and PEMC for CY 2025-2027 , using the same formula for the market transaction fee previously approved by the Honorable Commission,” according to the request.
In the request, IEMOP and PEMC indicated a budget requirement of P3.4 billion for the period 2025-2027. This includes personnel resources, maintenance and other operating costs, and capital costs.
The petitioners said the ERC authorized them to collect 2023 market transaction fees of P615.76 million, or an amount representing P0.00564 per kWh in 2023, less than the P1.02 billion they sought.
“Given the major reductions and disallowances ordered in the Honorable Commission’s recent issuance of market tax applications for previous years, applicants IEMOP and PEMC have both suffered and reported deficits from CY 2020,” they said.
The parties say that without adequate funds, they “will not be able to continue their effective and efficient operation of WESM and fulfill their mission in good faith.”
“At the current levels of market fees, the applicants may not even be able to continue the normal operation of WESM,” said IEMOP and PEMC. – Sheldeen Joy Talavera
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