THE Philippine Chamber of Commerce and Industry (PCCI) is calling on the Energy Regulatory Commission (ERC) and the Independent Electricity Market Operator of the Philippines (IEMOP) to hold to account parties defaulting on spot market transactions.
According to the business group, the costs resulting from Wholesale Electricity Spot Market (WESM) members defaulting on payments are being passed on to consumers through higher electricity prices while imposing burdens on compliant participants.
“These defaults distort market signals and expose law-abiding market players to significant financial risk,” it said.
“Imposing the burden on compliant WESM members effectively penalizes those who fulfill their financial obligations while relieving delinquent members of their responsibility,” it added.
Citing WESM rules, the PCCI said IEMOP has the authority to suspend and deregister defaulting members if their financial obligations remain unfulfilled after receiving default and suspension notices.
“IEMOP should implement a policy framework that ensures defaulters are held accountable and that compliant members are protected from bearing the cost of others’ failures,” PCCI said.
The group also pushed for greater transparency in billing systems of retail electricity suppliers (RES), particularly on WESM-related charges for contestable consumers.
“The group proposed that electricity bills issued by RES providers clearly itemize WESM charges — including energy transactions, line rentals, feed-in tariff components, and net settlement surplus allocations,” the PCCI said.
“This would provide contestable customers — now encompassing a wider base under the expanded Retail Competition and Open Access (RCOA) — with a better understanding of how charges are computed,” it added.
According to the group, the transparency will help contestable customers make informed decisions while promoting greater competition within the energy sector.
“As the energy market continues to evolve … fair enforcement of rules and transparent billing practices are essential to building a more accountable and efficient power sector that benefits both suppliers and consumers,” it added. — Justine Irish D. Tabile