A CODE of ethics for electricity spot market participants is weeks away from completing the period for soliciting public comment on the draft rules.
The end of the comment period on Aug. 24 will be another milestone in the implementation of the code, which was proposed to the Department of Energy (DoE) in March by the market surveillance committee of the Philippine Electricity Market Corp. The code will govern activity at the Wholesale Electricity Spot Market (WESM).
According to the draft code, ”WESM members and participants shall not propose or implement schemes or arrangements that frustrate the objective of free and fair competition and level playing field.”
It imposes a duty on market participants to “immediately” report to the DoE “any and all unlawful and unethical activities committed or about to be committed by other WESM participants and members,” in order to avoid the abuse of market power, which in WESM’s early days led to unusually high and unreasonable market prices.
The DoE, which started its review of the code on June 15, prepared a draft circular on the code which is currently subject to a round of stakeholder consultation.
Violators are subject to penalties prescribed by the WESM rules, which are currently being revised.
The WESM is transitioning to a 5-minute market trading interval, which is expected to increase its efficiency and attractiveness to investors. Its operator, the Independent Electricity Market Operator of the Philippines, hopes to launch the new market configuration in December. — Adam J. Ang