PEMC secures DOE approval of WESM Industry Code of Ethics

Following its main theme of fostering the culture of compliance among market participants in the governance of the Wholesale Electricity Spot Market (WESM), the Philippine Electricity Market Corporation (PEMC) recently secured the Department of Energy (DOE)’s final approval of the WESM Industry Code of Ethics (WICOE) through DOE Department Circular No. DC 2021-02-0002.

“The WICOE strengthens the market’s self-governance feature by setting forth the basic tenets on values and ethical standards that everyone in the power bourse should aspire to,” said PEMC President Oscar Ala.

The WICOE was spearheaded by the Market Surveillance Committee (MSC) with the intention of advancing the WESM’s self-governance in a dynamic industry. Initial plans were discussed with then PEMC Chief Governance Officer Rauf Tan after the separation of the market operations from the governance function in 2018.

“We had been discussing the WICOE for some time, having agreed on its significance in furthering and fortifying the culture of compliance in the WESM,” shared MSC Chairperson Francis Mapile.

The discussions produced the draft document which the MSC presented to the PEM Board in 2020.

“When the MSC presented the draft Code of Ethics to the PEM Board, there was no question that the WESM needed this to enjoin market participants to comply with the WESM Rules. With everyone in the PEM Board in agreement, we immediately approved its endorsement to the DOE,” said PEM Board Chairman Noel Aboboto.

The WICOE is intended to supplement the provisions in existing documents such as the WESM Rules and Manuals. Its applicability is not limited to the WESM Members and market participants but extends to the PEM Board, the WESM Governance Committees (WGC), and the Market Operator.

“The WICOE’s intention is to bring everyone together towards a WESM with a level playing field, and players and stakeholders that have a strong sense of integrity, honesty, and accountability for all of their actions and transactions within the power bourse,” said Mapile.

Since 2019, PEMC has continuously registered a marked decrease in the number of non-compliances to the WESM Rules. With the WICOE, it hopes to further bring it down. PEMC recognizes these top-ranking participants in Market Compliance in the WCO Summit Annual Awards.

“Market evolution is inevitable, and we should always adapt. But it is important to have the basics that we can always rely on. These include ethical market behavior that we should always aim for: honesty, integrity, and accountability,” said Aboboto.