Philippine Electricity Market Corp. and Independent Electricity Market Operator of the Philippines Inc. executed the operating agreement to formalize the transfer of all functions, assets, and liabilities associated with the operations of the Wholesale Electricity Spot Market.
The two parties said that with the signing of the agreement on Sept. 26, IEMOP was poised to take over the market operations of WESM, a function that is currently performed by PEMC.
“This is an auspicious occasion that PEMC and the IEMOP have undertaken to further the development of the electricity market and to ultimately fulfill the legal mandate for IMO transition,” said PEMC chairman Noel Aboboto.
PEMC was represented by Aboboto and president Oscar Ala, while IEMOP was represented by chairman Ralph Villanueva and president Francis Saturnino Juan.
Republic Act No. 9136 requires PEMC to divest itself of this function in favor of a separate entity that is independent of the market participants.
Energy Secretary Alfonso Cusi approved the transition plan in February calling for the formation of an independent market operator and the transfer of the market operation functions to it.