PCCI urges ERC, IEMOP to address WESM defaulters

The Philippine Chamber of Commerce and Industry (PCCI) is urging the Energy Regulatory Commission (ERC) and the Independent Electricity Market Operator of the Philippines (IEMOP) to address parties defaulting on spot market transactions in the Wholesale Electricity Spot Market (WESM).

Defaulting members are causing financial risks for compliant participants and leading to higher electricity prices for consumers, but IEMOP clarified that unpaid amounts by defaulters do not get passed onto consumers.

PCCI stressed that IEMOP has the authority under WESM rules to suspend or deregister defaulters who fail to meet their financial obligations after receiving notices, and penalties collected from noncompliant participants are returned to consumers through distribution utilities.

The group also called for more transparent billing systems from retail electricity suppliers (RES) to help contestable customers understand how charges are calculated.

Greater transparency and fair enforcement of rules would promote competition in the energy sector and benefit both suppliers and consumers, according to PCCI.