PCCI seeks accountability in WESM mess

The country’s largest business group, the Philippine Chamber of Commerce and Industry (PCCI), is urging the Energy Regulatory Commission (ERC) and the Independent Electricity Market Operator of the Philippines (IEMOP) to act decisively against members of the Wholesale Electricity Spot Market (WESM) who are defaulting on their payment obligations.

The issue came to light during recent discussions between PCCI officials and IEMOP, where they acknowledged that some WESM participants continue to default on payments, jeopardizing the full settlement of receivables owed to compliant market players.

Reiterating that such non-payments erode market integrity and place undue financial strain on law-abiding participants, PCCI called on IEMOP to clamp down on defaulters.

“These defaults distort market signals and expose law-abiding market players to significant financial risk. Imposing the burden on compliant WESM members effectively penalizes those who fulfill their financial obligations while relieving delinquent members of their responsibility," PCCI said in a statement Sunday.

"Ultimately, the costs resulting from defaults are passed on to consumers through higher electricity prices or market fees," it added.

The PCCI also called on IEMOP to fully exercise its authority under the WESM Rules to suspend or deregister defaulting market participants. The group cited provisions that empower IEMOP to issue default and suspension notices, and to pursue unregistration when financial obligations remain unmet.

"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," the group said.

Call for transparent billing

Alongside its call for stricter enforcement, the PCCI also urged the Energy Regulatory Commission to require greater transparency in the billing practices of Retail Electricity Suppliers (RES), especially for WESM-related charges to contestable customers.

The chamber proposed that electricity bills from RES providers clearly itemize WESM charges, including energy transactions, line rentals, Feed-In Tariff components, and Net Settlement Surplus allocations.

PCCI noted that greater transparency would help contestable customers—now a broader base under the expanded Retail Competition and Open Access (RCOA)—better understand how their electricity charges are computed.

“Contestable customers deserve clarity and fairness in their electricity billing. Transparent WESM-related charges will allow them to make informed decisions and promote greater competition in the energy sector,” PCCI said.

As the country’s energy market continues to evolve, PCCI emphasized that consistent rule enforcement and transparency are key to building a more accountable and efficient power sector that benefits both suppliers and consumers.