MANILA, Philippines – The Department of Energy (DOE) wants to accredit all traders at the Wholesale Electricity Spot Market to ensure they are qualified to do business in the spot market.
The DOE is now seeking comments form industry stakeholders for the proposed WESM accreditation.
Traders do business on the trading floor on behalf of WESM participants, which include generation companies, service providers of network, ancillary and metering, system operator, as well as direct and indirect trading participants.
According to the DOE, accreditation of WESM participants would ensure that all traders are indeed qualified to trade electricity and are equipped with the skills and competencies to protect the welfare and business interests of their respective companies.
Ensuring the competency of traders would also help safeguard consumers as compliance to market rules would prevail.
Energy Secretary Carlos Jericho Petilla has been pushing for WESM accreditation to ensure compliance to market rules.
“If you don’t have WESM accreditations, you cannot trade. If you don’t have the expertise, you can take an exam for it. People are trading and yet they do not know the aspects of WESM,” he said in the concept paper on WESM accreditation.
The process would involve the individual conducting or intends to conduct electric power trading for a WESM member to undergo evaluation by the accreditation body, or by market operator Philippine Electricity Market Corp. (PEMC).
What Petilla envisions is for the accreditation program to be mandatory for traders in the WESM and is aimed at enhancing the skills of the traders.
Furthermore, it would also require traders to pass the accreditation exam.
“The DOE deemed it necessary to issue a policy to provide clear and detailed responsibilities of each electric power industry participants that have either direct or indirect involvement in the trading, scheduling and dispatching of electricity in the WESM,” it said.
The accreditation is similar to other markets such as the Energy Exchange Australia and European Energy Exchange.