To build up investor confidence in the power sector, industry players are now strongly pushing for the immediate take-over of an independent market operator (IMO) at the Wholesale Electricity Spot Market.

The increasing grip of government, with the Department of Energy (DoE) leading the charge, is seen as a counter-productive move and violates the intent of the Electric Power Industry Reform Act (EPIRA) on setting the WESM as an independent market purportedly placed under the supervision of private sector players.

With government at the helm, it was noted that investors will never get the right signal on when the WESM really becomes an independent entity and one that reflects genuine conditions in the market – be it pricing or supply-wise.

In an interview with reporters, Philippine Independent Power Producers Association (PIPPA) president Ernesto B. Pantangco said the reckoning period is already here for the spot market to be managed by an IMO; a move which the organization propounded to support strongly from hereon. “I think this (assumption of IMO at WESM) is important in order to provide total independence for the market, so we’re strongly advocating that,” he said.

For many of the investors, it remains a nagging question on when WESM will become truly independent and when prices are truly reflected at market trading.

Former Philippine Electricity Market Corporation (PEMC) president Lasse A. Holopainen initially advocated the creation of an IMO, but due to differences of opinion on how matters shall be handled, it was not able to materialize.

Meanwhile, Pantangco noted that PIPPA will be ready to extend a hand in crafting a model for the proposed creation or engagement of independent operator for the market.

“Like what we have done for the IPPA (Independent Power Producer Administrators), PIPPA might be able to propose a model based on the experiences of some of our members in their respective countries,” he stressed.