The Energy Regulatory Commission (ERC) promulgated its decision approving with modifications the new Price Determination Methodology (PDM) for the Wholesale Electricity Spot Market (WESM) and incorporating the new features of the Enhanced WESM Design and Operations. Moreover, the new PDM will be used for the commercial operations of WESM in Mindanao.
The approval of the PDM signifies the impending shift to an enhanced WESM with shorter trading and dispatch interval of five (5) minutes, adoption of ex-ante only pricing, automatic re-runs for timely disclosure of settlement-ready prices, economic scheduling of generators’ minimum stable loading, and inclusion of the hour-ahead projection. These features aim to ensure more accurate pricing signals in the WESM and improved market projections as to the supply and demand of the system. Likewise, the near real-time settlement of prices would increase transparency of the market, which is beneficial to the stakeholders and the public.
Read the ERC Issuance in this link
