1.    How and why did IEMOP get the deal to manage and operate the WESM?

By virtue of the enactment of DOE Department Circular 2018-01-0002 dated 17 January 2018 and consequently the IMO Transition Plan which are based on Section 30 of the EPIRA which were jointly approved by the Department of Energy and the Electric Power Participants.


2.    Is a competitive selection process required?

Competitive bidding was required only for foreign participants as an option under the EPIRA if the IMO was created in 2007. 

The DOE opted to create a separate entity composed of Filipinos who have acquired the necessary expertise to operate the WESM and ensure that the market will be managed by Filipinos.

3.    Is 50 centavos the amount being collected by IEMOP?


The collection is less than one (1) centavo. 


4.   Is it a sweetheart deal?



It is not.

A Transition Plan was followed which was in accordance with law. 


5.    Why was IEMOP incorporated? 

The IEMOP incorporation was approved pursuant  to the approved transition plan jointly endorsed by DOE and stakeholders and as outlined under the Department Circular.


6.    Does IEMOP have experience in operating the Market?


The system was transferred to IEMOP based on the Operating Agreement between PEMC and IEMOP dated 18 September 2018 and people running the system were disengaged from PEMC and hired by IEMOP.

Hence, IEMOP was a “spin off” of PEMC towards independence in market operations. 

PEMC used to perform the market operations, with the DOE Secretary as Chair and most of the Board Members coming from the power industry. 

Sec. Cusi gave up the chairmanship on the condition that the market operations be performed by an independent corporation with the necessary experience and expertise. 

Thus, with the endorsement of the industry players as required by EPIRA, Sec. Cusi issued D.C. No. DC2018-01-0002. The House of Representatives, the Senate and the Joint Congressional Energy Commission (formerly JCPC) was given a report on all these steps that were made.