AFP FILE PHOTO
MANILA, Philippines—Philippine Electricity Market Corp., which operates the Wholesale Electricity Spot Market (WESM), seeks to collect market transaction fees (MTFs) of P814.5 million from trading participants this year.
In an order, the Energy Regulatory Commission (ERC) said that pending the final resolution of the proposed MTF, the spot market administrator should continue applying the 2013 rates.
“Based on initial indicative figures, the estimated (proposed) MTF rate for 2014 is P0.0125/kWh,” the ERC said, noting that this represents a 4 percent decline from the 2013 rate.
The new rate sought was based on the projected energy transactions in Luzon and Visayas this year of 63,789 gWh.
The bulk of the fees sought for 2014 would fund “budgetary requirements” worth P796.024 million, broken down as follows: capital expenditures (P82.412 million); personnel services (P388.641 million); maintenance and other operating expenses (P309.363 million); and provision for the Department of Energy/Energy Regulatory Commission monitoring facilities (P15.608 million).
Another P18.505 million was sought for the Year 1 budget for the Market Design and Structural Feasibility Study (Forwards Market) and the Market Research and Development Platform project.
ERC noted, however, that the amounts sought were net of corporate income and value added taxes. These also do not cover possible adjustments in expenses due to changes in regulations, as well as PEMC’s separate applications for additional fees.
On Aug. 14, 2012, PEMC filed an additional MTF application meant to enable the WESM operator to collect some P900 million in fees from trading participants to repay the loan used for the establishment of its Market Management System (MMS) loan. That was done under agreements with state-owned firms National Power Cop., National Transmission Corp. and Power Sector Assets and Liabilities Management Corp.
On Sept. 15, 2011, PEMC filed separate applications for additional MTF for a New Market Management System (NMMS) project.
ERC said PEMC’s MMS and NMMS applications were still pending.