EE Laws, Codes, and Professional Ethics (EE223)

Harvey T. Pingcas June 8, 2023

BSEE_2B_E2

Reaction Paper regarding the Wholesale Electricity Spot Market (WESM)

In the Philippine electricity sector, the Wholesale Electricity Spot Market (WESM) has
developed as an important and progressive development. After researching and understanding
the purpose and operations of WESM, I find myself intrigued by its potential to promote
competition, efficiency, and transparency in the electricity trading industry.

What factor that stands out to me is the emphasis on market-based pricing. The day-
ahead market approach used by WESM, in which participants submit bids and offers for power,
promotes a fair and competitive marketplace. Moreover, WESM's role in promoting
competition cannot be overlooked. By providing a platform for a diverse range of market
participants, including generators, utilities, and cooperatives, WESM encourages a level
playing field and opens avenues for innovation and investment in the power sector. The
expansion of WESM's coverage to various regions in the Philippines further enhances market
integration and fosters a more interconnected and robust electricity market. However, it is
critical to recognize the difficulties that WESM faces. Ensuring market rule compliance,
preventing misuse or manipulation, and managing transmission restrictions are continual
challenges that necessitate close monitoring. Furthermore, efforts should be taken to increase
consumer awareness and engagement in WESM, as the benefits of competition and effective
pricing must be passed on to end users.

In conclusion, WESM is a step forward toward a more competitive and efficient power
market in the Philippines. Its market-based strategy, transparent operations, and inclusion of
varied market players creating opportunities for increased dependability, investment, and fair
pricing. WESM has the ability to make beneficial changes in the power sector and benefit
customers in the long run by solving difficulties and continuously evolving.