ERC Retains NPC and PSALM As Default Wholesale Suppliers

The Energy Regulatory Commission (ERC) issued a resolution on 25 June 2007 extending the effectivity of the Default Wholesale Supply (DWS) Arrangements for the Wholesale Electricity Spot Market (WESM) in the Luzon Grid for another year from June 26, 2007 or until such time that the resolution is superseded by another rule of the Commission, whichever comes earlier. The Resolution, therefore, extended the designation of the National Power Corporation (NPC) and the Power Sector Assets and Liabilities Management Corporation (PSALM) as the Default Wholesale Suppliers.
"There is a need to extend the effectivity of the DWS arrangements in the light of the expiration of the said arrangements for the WESM in Luzon to ensure continuous supply of electricity to distribution utilities (DUs) and end-users," ERC Chairman and CEO Rodolfo B. Albano, Jr. said.
The Rules for the Default Wholesale Supply (DWS) Arrangements promulgated by ERC on 23 August 2006, particularly Article V thereof, explicitly limits the effectivity of the DWS arrangements for a period not longer than one (1) year from the start of the WESM operations in Luzon which took place on 26 June 2006.
The NPC and PSALM, as Default Wholesale Suppliers, will supply electricity to cover the following: (a) all energy consumed of those with no Transition Supply Contracts and are not participating in the WESM; and (b) energy consumed beyond the contract cover of Indirect WESM Members. Indirect WESM members are those who trade in the WESM indirectly through a Direct WESM Member. Direct WESM members are those who trade directly in the WESM. /MP