The Energy Department assured it will look into the call of a lawmaker to invalidate the contract between Philippine Electricity Market Corp. and Independent Electricity Market Operator of the Philippines Inc.
“Transparency is good, and we welcome that. And based on that, we’re looking into it. As soon as I got all info from the two concerned bodies, I will make my decision,” Energy Secretary Alfonso Cusi said.
Cusi said he directed PEMC, the supervising body and IEMOP, the operator of the Wholesale Electricity Spot Market, to submit their position papers.
He said while IEMOP already submitted a report, PEMC asked for more time because its board had yet to meet.
Cusi also said the transfer of the operations of WESM from PEMC to IEMOP was carefully studied by a technical working group.
Puwersa ng Bayaning Atleta Party-list Rep. Jericho Nograles earlier urged Cusi to invalidate the contract between PEMC and IEMOP because “it is void ab initio” or invalid from the beginning due to several legal infirmities.
“To be fair to Secretary Cusi, he has assured me that he is looking into the matter,” Nograles said, but stressed that Congress would continue its own investigation.
PEMC transferred to IEMOP, through an operating agreement, the operation of WESM on Sept. 26, 2018.
Nograles said that during the House energy committee meeting, the Governance Commission of GOCCs confirmed that PEMC needed to go through a process to become a private entity, in accordance with Republic Act No. 101149.
Nograles said to become a private entity, PEMC should seek the endorsement of the Governance Commission for Government Owned or Controlled Corporations to the President of the Republic who will make the final approval.
PEMC earlier assured that the transfer of WESM operations to IEMOP went through consultations, studies and relevant approvals.
PEMC officials also said the cost of operating the market was recovered through market fees collected from the WESM market participants that were approved by the ERC as mandated by the Electric Power Industry Reform Act of 2001.