MANILA, Philippines – The Philippine Electricity Market Corporation (PEMC) is asking the Energy Regulatory Commission (ERC) to approve its proposed budgets of P1.067 billion ($22.74 million) for 2016 and P1.01 billion ($21.51 million) for 2017.
PEMC, the operator of the Wholesale Electricity Spot Market (WESM), said that the estimated Market Fee Rate (MFR) is P0.0156 per kilowatt hour (kWh) for calendar year (CY) 2016 and P0.0142 per kWh for CY 2017, in a 10-page application to the ERC.
The indicative MFR is based on the Luzon and Visayas energy forecast of 67,866 gigawatt hours (GWh) for CY2016 and 70,977 GWh for CY2017, the PEMC said.
Budget breakdown
Of the proposed amount, PEMC wants to allot P453.272 million ($9.65 million) for personnel services in 2016 and P494.066 million ($10.52 million) in 2017.
It plans on spending another P415.733 ($8.85) million for maintenance and other operating expenses (MOOE) in 2016 and P444,964 million ($9.47 million) in 2017.
The amount of P176.913 million ($3.76 million) will be set aside for capital expenditure (capex) in 2016 and P52.070 million ($1.1 million) in 2017; and P20.919 million ($445,667) as provision for the Department of Energy/ERC monitoring facilities next year and P19.822 million ($422,296) for the following year.
“In adjusting its budgetary requirements, PEMC adjusted its proposed budget for by 9% for CY2016 and 4% for CY 2017 and the rate was approved by PEMC’s Board of Directors to cover reasonable annual performance increases of PEMC employees,” said PEMC in its application.
For MOOE, the proposed amounts are based on actual expenses incurred last 2014 and part of 2015 expenses.
PEMC explained that personal services (PS) is for the salaries and benefits of 160 employees in Luzon and Visayas.
MOOE, meanwhile, includes costs of the market audit, participant development costs, honorarium, rent, utilities, repairs and maintenance, contracted services, insurance, training, travel and transportation.
Capex, on the other hand, consists of enhancements and upgrades to the Market Management System and corporate infrastructure, and the cost of lease improvements.
The provision for DOE/ERC monitoring facilities is 2% of the proposed PS, MOOE and Capex for both years. The amount will support the monitoring functions of the DOE and the ERC.
PEMC’s application also includes a petition to restructure the market fees into a single fee and another petition to deduct the previously collected Market Registration Fees (MRF) from the 2016 MF it applied earlier. – Rappler.com
$1 = P 46.94
Budget concept image via ShutterStock