IEMOP enforces WESM rules, shields consumers from losses

The Independent Electricity Market Operator of the Philippines is cracking down on defaulting players in the Wholesale Electricity Spot Market, reassuring the public that consumers will not bear the cost of unpaid market obligations.

In a recent statement, IEMOP emphasized its commitment to strict enforcement of market rules and financial accountability in WESM.

“The financial obligations of defaulting market participants are not passed on to consumers,” IEMOP said. “These obligations are recorded as receivables by generation companies and other sellers.”

The operator also expressed gratitude to the Philippine Chamber of Commerce and Industry for supporting accountability and discipline in the electricity sector.

As the official WESM operator, IEMOP clarified that collected penalties from erring players are returned to end-users through their distribution utilities, electric cooperatives, or electricity suppliers, in line with the WESM Penalty Manual (Issue 3.0).

Measures against non-compliance include the issuance of default and suspension notices, monetary penalties, and, if necessary, suspension or deregistration of participants.

These enforcement actions aim to maintain a level playing field and protect participants who comply with WESM regulations.

The agency also echoed PCCI’s call for greater transparency in the billing practices of Retail Electricity Suppliers, reiterating its mission to maintain a fair and efficient marketplace.

“IEMOP operates under a professional and independent board,” the statement added, “in accordance with the Electric Power Industry Reform Act, its implementing rules, and Department of Energy directives.”

EPIRA, signed into law in 2001, restructured the Philippine power industry to promote competition, ensure transparent pricing, and protect consumer welfare.

IEMOP, formed in 2018, took over the operations of WESM from the Philippine Electricity Market Corporation. It operates independently and is not affiliated with any industry participant.