Department of Energy prepares Visayas power supply augmentation

MANILA, Philippines - The Department of Energy (DOE) through the Philippine Electricity Market Corp. (PEMC) is lining up preparations for the Visayas Supply Augmentation Auction (VSAA), particularly for the registration of participants.

This move is pursuant to the provisional authority issued by the Energy Regulatory Commission (ERC) last April 13.

The DOE sees the VSAA as one of possible ways to solve the power supply problem in the Visayas.

The registration process will cover all preparatory steps leading up to the official launch of the VSAA,” Energy Secretary Angelo T. Reyes said.

The participant registration is being administered by PEMC and has started this April.

“This registration process is designed to ensure readiness of the participants for the VSAA and covers the actual filing of application to take part in the program, prequalification of participants, as well as participant training and familiarization with the VSAA through a trial operation program,” Reyes said.

The VSAA is the infrastructure that will be the backbone of all VSAA transactions. It is composed of a solver, participant web interface and associated database that will ensure all transactions made during the program are monitored, validated and subsequently settled.

PEMC has also ensured the accessibility of VSAA-related information and documents by devoting a section in the Wholesale Electricity Spot Market (WESM) website covering, among other important documents, the VSAA application forms and registration guide.

“Assuming sufficient level of registered participants, promulgation of VSAA rules and ERC approval of VSAA pricing and cost recovery mechanism and administration fees are achieved, the program is expected to commence immediately upon the approval of the ERC,” PEMC acting president Melinda L. Ocampo said.

The WESM began commercial pperations in Luzon in June 2006.

It is a centralized venue for buyers and sellers to trade electricity as a commodity where its prices is based on actual use (demand) and availability (supply). – Donnabelle Gatdula