The Energy Regulatory Commission (ERC) aims to restart the commercial operations of the reserve market by the end of this month.
“We are hopeful for that. The resumption is always linked to the billing cycle, which spans from the 26th of the month to the 25th of the following month,” ERC chairman and CEO Monalisa Dimalanta mentioned.
After finalizing the commission’s decision, Dimalanta announced that the trading of power reserves would resume on July 26.
Background of Power Reserve Market
The reserve market, part of the wholesale electricity spot market, is designed to improve the scheduling and pricing of energy and reserve requirements. It encourages competition and affordability while maintaining grid security and reliability.
Suspension and Restart Plans
The ERC decided to halt billing and settlement in the reserve market in March, just two months after it was fully launched, due to substantial price hikes in reserve costs compared to February.
The complete reopening of the reserve market is still pending as unresolved issues require the commission’s attention.
“There are still several questions (about) the methodology that the commission needs to resolve. Plus, we are also conducting a public consultation on the offer floor and price cap for the reserve market,” stated Dimalanta.
She noted that if there were no major concerns regarding the price cap, it would allow the reserve market activities to resume.
Future Outlook and Resolutions
In May, the ERC lifted part of the suspension on settlement amounts in the reserve market to enable power generators to recoup some of the costs related to trading transactions during the March billing period.
The decision to allow the settlement of 30% of the transaction amounts was made to ensure continuous operations of power generators providing reserves in the system.
“The ERC always needs to strike a balance in performing its mandate to ensure the reliability and security of the power system through the continuous operations of the generators and protecting the consuming public,” the agency earlier said.