NATIONAL GRID Corporation of the Philippines may soon start disconnecting from the grid distribution utilities and electric cooperatives in Luzon that have failed to register with the wholesale electricity spot market, following the issuance of an energy department circular.

The circular prescribed the implementing rules and regulations which relieved National Power Corp. and Power Sector Assets and Liabilities Management Corp. (PSALM) of their obligations to supply power to the WESM as default wholesale suppliers (DWS).

As a consequence, non-WESM members will have to be cut off from the system.

With the circular, the DOE said it was expecting that leakages in the electric power system would be minimized, if not avoided, as those entities that were illegally drawing from and injecting power to the grid would be easily identified and disconnected.
The membership of all the electric power industry participants, especially the distribution utilities, in the WESM will ensure level playing field in the industry, the DOE said.

All distribution utilities and electric cooperatives?which are non-WESM members and are getting part of their electricity requirements from WESM through Napocor?were earlier required to register with the spot market within a 90-day period.

Those that failed to do so will soon be issued a notice of disconnection?which meant that they can no longer draw their electricity requirements from WESM via Napocor.

Five days after receiving the notice, they will then be cut off from the system.

Under the implementing rules, NGCP should implement the disconnection after all the procedures and mitigating measures have been exhausted and complied with.

As provided under the IRR, power distribution firms may seek deferment of the disconnection under certain conditions. If they had already been cut off, they can also request reconnection to the system for as long as they have complied with the given requirements.

In case they cannot register with the WESM, the DOE has urged utilities and cooperatives to at least enter into new bilateral contracts with power generation firms or other service providers to ensure the continuous supply of electricity.

Since 2006, Napocor and PSALM have been delegated as DWS, or the entity that provides electricity supply to cover the demand of customers that are not direct participants of the WESM.