His decision to resign was “an important step” to “pave the way for independent stakeholders to be elected to [the] position.”

Energy Secretary Alfonso G. Cusi has resigned as chairman of the Philippine Electricity Market Corp. (PEMC), a day after completing the transition of the Wholesale Electricity Spot Market’s (WESM) operations to an independent market operator (IMO), a move that has been delayed for more than a decade.

Cusi told reporters that his decision to resign was “an important step” to “pave the way for independent stakeholders to be elected to [the] position.”

Also on Monday, the PEMC held its first election of its board of directors. The 15-man board of the IMO to be called the Independent Electricity Market Operator of the Philippines (IEMOP), elected former Energy Regulatory Commission (ERC) executive director Francis Saturnino Juan as president.

The creation of the IMO has been delayed for 16 years after the approval of Republic Act 9136, or the Electric Power Industry Reform Act of 2001 (Epira). The law mandates that the entity operating WESM shall be autonomous and made up of the Department of Energy (DoE) and representatives from the power industry.

Frustrated with the slow implementation of the IMO, Cusi created a transition committee in July 2017 to find ways to fast-track the way for WESM to move forward. He also called for the resignation of PEMC’s previous board members and tasked the committee seven months from Aug. 1, 2017, to complete the transition.

“This has been long overdue; it has been delayed for more than a decade. Now is the best time to usher in its independence as provided in the law,” he said in a meeting with the PEMC board.

The IEMOP will take over the management and operation of the WESM from PEMC, the centralized venue for sellers and buyers to trade electricity in the country as a commodity where prices are determined based on actual demand, supply, availability or actual use.

However, under the transition plan approved in February this year, the IMO will manage operations of the WESM while PEMC will remain the spot market’s governing body.

“It has been a fruitful two years. Now we look forward to a new era, as PEMC has elected representatives to take over the reins of governing the electricity market,” Cusi added.

While PEMC and the IMO will be independent of the government, the DoE will retain oversight functions over WESM operations.

“The DoE’s involvement with the WESM needs to be close enough for the Department to understand key developments while keeping enough distance from the market’s daily functions. The Energy Department will remain the ultimate guardian of WESM rules and manuals. Together with the Energy Regulatory Commission, we will protect our consumers against industry breaches and anti-competitive behavior,” Cusi said.

PEMC was incorporated in November 2003 and has been operating the spot market since that year. PEMC is a non-stock, non-profit corporation that was established upon the initiative of the DoE with representatives from the different players in the electric power space to be WESM’s governance arm.

The elected board members were Emmanuel V. Rubio (SN Aboitiz Power), Victor Emmanuel B. Santos Jr. (First Gen), Elenita Go (SMC Global Power), Juan Eugenio L. Roxas (FDC Utilities, Inc.), Rolando M. Cagampan (Meralco), Allan L. Laniba (LEYECO III), Felino Herbert Palpallatoc Agdigos (Ilocos Norte Electric Cooperative), Gilbert A. Pagobo (Mactan Electric Company, Inc.), Noel Villas Aboboto (Team Energy), Atty. Ronald Dylan P.

Concepcion (National Grid Corporation of the Philippines), and Atty. Francis Saturnino C. Juan (Independent Electricity Market Operator of the Philippines).

Four new independent directors were also elected namely, Rauf A. Tan, Atty. Oscar E. Ala, Jesus Lim Arranza, and Peter Leslie Wallace.