PEMC president Lasse Holopainen told reporters that though the board had already reviewed the results of the investigation and heard the recommendation submitted by Market Surveillance Committee (MSC), they would try to formally release the findings of PEMC probe by Wednesday (Nov. 22).
"For the record, the MSC had completed and transmitted their recommendation to the Board," Holopainen said.
The WESM is governed by an independent board, with a majority of the members comprised by stakeholders.
The DOE secretary acts as the first chairperson. Under the Board are the different committees, consisting of the Rules Committee, the Disputes Committee, the MSC, the Technical Committee, and the PEM Auditor.
The MSC, under the PEMC Board, monitors market activities and assist the PEM Board in investigating and imposing appropriate penalties for breaches of the WESM rules and anti-competitive behavior of market participants.
He said the slight delay in the PEMC board’s decision on the fate of PSALM is to ensure that "proper process was followed."
"At the end of the day, we want to make sure that there would be no contest on legal ground (of our decision. We want to make sure that everything is in order before we release the findings of the PSALM’s probe)," the PEMC chief pointed out.
The board, he said, has also decided to discuss thoroughly the result of the investigation on PSALM’s apparent price manipulation in the WESM before the findings are released.
"You should understand that there is a lot of discussions in the Board since it is our first time to encounter this. We should make sure that we understand all the issues. We have to deliberate thoroughly," Holopainen said, in explaining the three-day delay in coming up with the decision.
PSALM is a government entity created to handle the finances of the National Power Corp. (Napocor), including the privatization of the state-owned power firm’s assets. It also administers the IPP (independent power producers) supply contracts of Napocor.
PSALM as a trader in WESM constitute 50 percent of WESM trading volume. Created under the Electric Power Industry Reform Act of 2001 or Republic Act 9136, PSALM has four teams consisting of 16 power plants that have been trading in the WESM.
The probe, Holopainen said, is a reflective of PEMC’s thrust to adhere to a transparent market.
When prices in the WESM go beyond certain thresholds, the MSC will automatically conduct a closer scrutiny of the trading behavior as a matter of procedure.
Holopainen earlier assured the stakeholders of WESM and the general public that it will always take a proactive stance to safeguard the transparency, reliability and competitive character of the WESM, with the MCS closely monitoring and analyzing the market’s indices and the behavior of its members and participants.