Are you prepared for WESM Mindanao’s commercial operation?https://exist.com/wp-content/uploads/wesm-blog-2.jpg650486Exist Software LabsExist Software Labs//exist.com/wp-content/uploads/logos/exist/logo-default.png
The Independent Electricity Market Operator of the Philippines (IEMOP), operator of the Wholesale Electricity Spot Market (WESM), announced that it is preparing market participants for the official launch of the Mindanao WESM on January 26, 2023.
As part of the preparations for the commercial launch of WESM Mindanao, IEMOP hosted a Focus Group Discussion(FGD) in collaboration with various energy industry agencies. IEMOP discusses the provisions of DOE Circular 2022-12-0039 and the activities leading up to WESM’s commercial operations in the region.
“The commercial operation of WESM Mindanao and the MVIP [Mindanao Visayas Interconnection Project] is expected to improve the reliability of electric power supply not only in the Mindanao grid but also in the Luzon and Visayas grids,” according to the circular. It also stated that the commercial operation of the MVIP would require the commercial operations of WESM Mindanao to allow for the efficient transfer of electricity exchanges.
The circular alsorequires the market operator to facilitate WESM registration and authorize the disconnection of WESM participants and entities that are required to register but are unable to do so.
The IEMOPshould also ensure that WESM Mindanao participants comply with the registration requirements and take appropriate action to address noncompliance. They should also ensure that the WESM Mindanao transitions and operates smoothly.
The PEMCwill monitor and evaluate the WESM Mindanao implementation and make recommendations to address any policy issues that may arise. It will also impose sanctions and penalties following the circular’s provisions.
The NEAwill assist electric cooperatives (ECs) in completing their WESM registration and coordinate with relevant agencies to ensure that the ECs meet the financial and technical requirements for WESM registration.
So the real question is, Are you ready to transition with the WESM Mindanao commercial operations?
We understand that you are committed to ensuring that your company remains compliant with the WESM rules and market manuals, but we also know that it can be difficult to keep track of all of your obligations.
– Automate the collection of 5-minute WESM data, – Comply with the NEW BIR Ruling, – Streamline submission to CRSS and NMMS, – Seamless monitoring of MMS data such as RTD, HAP, DAP, LMP, and others, – Generation of BCQ for CRSs upload, – Smooth processing of CRSS Metering and Settlement data, and more!
We will help you avoid sanctions and penalties by assisting you to ensure full compliance with all of your obligations under WESM Rules and Market Manuals.
Check out these links to help you get prepared for WESM Mindanao commercial operation
The New BIR Ruling; What’s in it for WESM participants?https://exist.com/wp-content/uploads/Blog-Post-April-4_2.jpg800507Exist Software LabsExist Software Labs//exist.com/wp-content/uploads/logos/exist/logo-default.png
WESM aims to create a competitive, efficient, transparent, and dependable electricity market, which is a place where offers, demand, price bids, quantities, and other energy transactions take place.
According to the EPIRA Law, “The cost of administering and operating the wholesale spot market shall be recovered by the market operator through a charge imposed to all market members: Provided, that such charge shall be filed with and approved by the ERC.”
The law requires the Market Operator (MO), in this case, IEMOP, to recoup its costs for administering and managing the market, based on the fact that the MO has no other source of funding to function other than the charges imposed on its members. In accordance with EPIRA Law and WESM Rules, the EIMOP, as the MO, may charge its members market costs such as Registration Fees, Metering Fees, Billing and Settlement Fees, Administration Fees, Costs reasonably incurred by the Board and Committees, and other working groups, and Other Service Fees.
Upgrade your system in accordance with the NEW BIR RULING Today!
According to BIR RULING OT-323-2021, Page 11 No.5, “The Customer/Buyer shall be the withholding tax agent for energy sold and paid through the WESM, while both the Customer/Buyer and Generator/Seller Shall be the withholding tax agents for the Market Fees collected by IEMOP.”
With that said, all the WESM participants – Generation companies, Distributors, Renewable Energy (RE) Developers, customers, system operators, network service providers, ancillary services providers, and metering services are now subject to BIR tax withheld from any transactions made within the WESM.
So, why shouldn’t you worry about the new BIR Ruling?
It’s the power of technology! These processes can all be automated. Knowing its importance to your day-to-day activities, let us worry about how we can support you.
We will assist you in upgrading your system to comply with the New BIR ruling. Adjust your system and automate complex computations and other procedures needed in compliance with the regulation!
Exist Software Labs has extensive experience as an IEMOP and PEMC technology partner for 3 years, and we guarantee we have your back in revolutionizing your system with our Power System Solutions!
Empower your system today!
Learn how to fully automate your processes to create a more competitive, transparent, and efficient system with our Power System Solutions!
Take your power system to the next level!