January 09, 2014

DOE allows market intervention in WESM

The Philippine Star today reported that the Energy department will now allow market intervention in the Wholesale Electricity Spot Market (WESM). This means that the WESM operator now has the option to set an administered price gauged on the average price in the last 30 days prior to the day of the administered price.
This is to prevent sudden spike in prices as a result of tight supplies which were experienced November last year. Some power generators sell part of their output in the spot market. Meralco (MER, Buy) also buys a portion of its power supply from the WESM. – WealthSec