Reyes lauds PEMC for transparency

Energy Secretary Angelo Reyes lauded  yesterday the management of the Philippine Electricity Market Corp. (PEMC) for establishing transparency and symmetry in the power industry.

In his speech during the first year anniversary of the wholesale electricity spot market (WESM), Reyes, who is also the chairman of the PEMC board, said these two elements are necessary to attain competition, which will lead to efficiency in the electricity industry and the economy as a whole.

“This is fundamental to our industry. Without it, there can be no competition,” Reyes said. 

Reyes noted that to facilitate more competition in the industry, there is a need to fast-track the country’s privatization efforts.

“It is now the right time to review the privatization schedules ahead of us, not necessarily to alter them, but certainly to accelerate,” the Energy chief said.

He said the privatization of the power plants of the National Power Corp. (Napocor) would need to be completed before necessary addition to the country’s power capacity come in.

“New capacity, while it must be planned now, will become a priority to build only after the privatization shall have been completed. What is more important is to put in place a fair and level playing field for new investors to ensure long term sustainability of supply.  True energy security lies in a vibrant and competitive market,” he said. 

For his part, PEMC president Lasse Holopainen said the level of privatized assets of Napocor would not have a great impact on WESM operations. 

“As long as we have sufficient contract, there is no need to sell all those assets,” Holopainen said. 

Under the Electric Power Industry Reform Act (EPIRA), the government should sell 70 percent of Napocor’s generating assets in Luzon and Visayas to start the implementation of open access, which allows big electricity users to choose where to source their power requirements.

But Holopainen stressed that privatization and independent power producer (IPP) administration are part of near term measures that PEMC is eyeing to improve the operations of the country’s electricity market.

He said they are also working on the enforcement and compliance measures such as the list of anti-competitive behaviors; refinement of surveillance and enforcement processes; and schedule of fines and penalties.