Firm offers sources of cheap power
Sunday, January 22, 2006
HOUSEHOLDS and other retail users of electricity can now choose cheaper electricity and other suppliers.
Starting January 25, the Philippine Electricity Market Corporation (PEMC) will start its commercial operations of informing the people about cheaper electricity and sources, which will be beneficial to some industrial companies in Metro Manila as the cost of fuel and oil products continues to rise.
PEMC president Lasse Hoolopainen said during the weekly "Kapihan sa Sulo" forum Saturday that the Energy Regulatory Commission (ERC) has approved their operations as part of its mandate under the Electric Power Industry Reform Act of 2001.
According to Hoolopainen, the Wholesale Electricity Spot Market (WESM) is a market-based pricing regime where electricity will be traded as a commodity and give people information on the true cost of energy. "With the active participation of all the key players in the energy sector, WESM will slowly wean us away from cost-based regime when the price of electricity is pegged purely on a basis of a rigid formula based on historical cost," Hoolopainen said.
Aside from the knowledge of the true cost of electricity, consumers will also be given choices of suppliers and at what price. He explained that bulk users like commercial and industrial complexes--malls, factories and manufacturing plants--can register their power demands through WESM and it will be balanced with the available supply.
Hoolopainen added that this innovation will also lessen the dependence of the Philippines on expensive oil-based power generation plants. The PEMC would introduce other sources of energy like geothermal and hydro-electric resources. (JPM/Sunnex)
posted by philpower @ 3:21 PM,
